Offered Property to South Dublin County Council

K

KOW

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Own property a 3-bed apartment in Palmerstown Dublin 20. Good rental area even in bad times.
Rent 1300 per month. 1300x12= 15600 per annum.
Council have it on the 10yr long term lease scheme. Eight years left on lease.
Contacted council last year and I offered them the property at market price. 200-220k.
Not interested.
Before I signed up to the long term lease I had it with them on RAS for 5years and probably collected 70k in total in rent.
156+70= 226 will be paid by council in rent by time lease is up. Plus at the end of lease apartment has to be restored to condition I handed over ie perfect.
When speaking to the council I pointed out that it would be impossible to build an apartment for220k. Not interested.
I dont know;)
 
You have long term tenants that you know will pay and you are currently collecting 7% in rent based on the higher valuation amount given. I would be trying to hang on to this property if I was you.
 
I read on another thread about someone who had let their house to the council in a similar fashion to what you're doing, the tenants did a runner and wrecked the house to the tune of €50k +, but the council will only cover it to a limit of €1k. First thing i'd do after seeing that is read the contract to see exactly what i'm covered for. If it's ok, then i'd count my blessings and keep renting. Why would you sell it?
 
Thanks for replies Council fully responsible for upkeep etc. Agree not a bad yield and no hassle.I was toying with off loading last year because I had another project in my mind.
I am just surprised the council did not jump on it. Thanks again.
 
They're not interested in being landlords, and particularly not for individual units here and there especially in development with management fees. It's just not economical for them with the issues they have collecting rent. Then owning units in areas not taken in charge could be problematic, they'd effectively be paying someone a premium for areas like maintenance where they have efficiencies of scale themselves.
 
Do you recall names of those two companies that rent them out to the council?
 
karrr said:
Do you recall names of those two companies that rent them out to the council?
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Replying to the wrong thread?

Not sure why you'd want to get a company involved here, they'll only take a chunk of the rental meaning you'd be even further below the market rate. Contact your local council directly and see if they are taking on any more RAS properties at this time.
 
Leo said:
They're not interested in being landlords, and particularly not for individual units here and there especially in development with management fees. It's just not economical for them with the issues they have collecting rent. Then owning units in areas not taken in charge could be problematic, they'd effectively be paying someone a premium for areas like maintenance where they have efficiencies of scale themselves.
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Furthermore, the current pressure is in housing the homeless, and if the Council purchase a property that they already effectively 'own' (through a long lease), the net effect on homelessness would be zero! Hence short-termism overrides strategy!
 
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