Rent allowance scheme

C

car

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I have a tenant who currently gets rent supplement. she then pays me the rent.
rent is 950 / month.

She's a good tenant, Im a good landlord, she wants to stay in the house and Id like her to stay in the house. She wants to go on the Rent allowance scheme, Id have to sign up to it for what I believe is for a period of 2,5 or 10 years. Council then pay me directly 850 per month. i am considering it for a couple of reasons. NPPR exemption and no more maintenance. which between them costs me about a months rent per annnum.

Clarifications needed.
My understanding is that I do not have any maintenance fees, is this correct? eg. if the cooker breaks down, not my problem.
I have tax considerations as normal on the rental income but am exempt from NPPR. Correct?
If the tenant changes for whatever reason, is that my problem or the councils?
Do I have to pay NTRB charges is tenant changes?
If I want to sell the house at any time, can I?

im about 60k in negative equity on the property so cant really afford to get out. Repayments are just below 850 so Im leaving myself thin but if theres no NPPR and maintenance, this evens out.
 
Are you sure that you are not responsible for maintenance of the property under the RAS scheme ?
 
Two thinks strike me - one being councils usually supply a long list of works to be done to properties before they'll accept them under this scheme. Secondly there are due to be further interest rate increases this year...and probably next year and beyond...which will leave you subsidising the property. Can you afford that?
 
Clarifications needed.
My understanding is that I do not have any maintenance fees, is this correct? eg. if the cooker breaks down, not my problem.
I have tax considerations as normal on the rental income but am exempt from NPPR. Correct?
If the tenant changes for whatever reason, is that my problem or the councils?
Do I have to pay NTRB charges is tenant changes?
If I want to sell the house at any time, can I?


You are responsible for the maintenance on this property under the RAS scheme.

Yes, you are exempt from paying NPPR once your property is signed up under the scheme.

If the tenant changes for whatever reason, the council will place another tenant in your property.

Yes, you have to register each tenancy with the NTRB as per usual.
If you want to sell the house at any time, you must give adequate notice to the council as per your contract with them.
 
thanks for replies, I rang the council and spoke to a very nice lady and got answers to my questions (which I should have done in the first place).

As noted above.

1. I am responsible for all maintenance.
2. Am exempt from the NPPR.
3. I can get out of it at any time with due notice if I want to sell.
4. If tenant changes, rent still comes in from the council.
5. The amount of rent isn't set at 850 which I had been told, its negotiated, but its usually less then market rate in the area which unofficially I'm told is about minus 1 month over a year. so lets say (950 * 11/12) which would be about 870.

To qualify for it: For landlord, they first look at the estate and decide whether their percentage of social housing is exceeded, if not, they inspect the house and recommendations may come out of that. Landlord must be tax compliant.
For the tenant has to have been on rent supplement for a period of time (not sure but I think this is 2 years). And their name has to come up on the housing list but the housing list Ive been told isn't what it used to be. With money being what it is, the council are just as happy to leave people in rented acc.

thats the gist of it anyway.
 
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