A council claims it can save landlords is 15% of rental costs “that are currently swallowed up in agent management fees.”
Dorset council says the offer to landlords is to help it find homes for tenants currently in temporary accommodation.
The authority’s new Key4Me scheme claims to offer:
* Cash incentives, that until now have been paid on an annual basis, dependent on the size of the property. Payments range from £1,000 per year for a one-bedroom property rising to a maximum of £4,000 for a four+ property;
* Support during the tenancy if there are any tenancy issues arising;
* Pet bonds;
* Arrears bonds;
* Rent in advance/deposit;
* Dedicated support for both tenants and landlords;
* Free tenancy agreements;
* Free inventories.
The tenancy is between the landlord and the tenant, with Dorset Council sourcing the tenant from people looking for homelessness assistance.
“However, the landlord remains in control of who they will accept” says the authority.
Rent either goes directly from the tenant to landlord or from the Department of Work and Pensions to the landlord with the landlord responsible for all compliance, repairs and maintenance, mirroring the private lets in the wider community.
Following conversations with landlords over the past few months, the council says it is to stagger the payments to landlords so that they receive their current annual tenancy payments in three tranches across the year.
The council goes on to tell landlords: “When working with normal lettings agents, legislation only allow landlords a five week cash deposit. However, Dorset Council can offer them deposit bonds covering up to 12 weeks rent and in addition provide them with a £400 pet bond, adding a whole level of reassurance that lettings agents are unable to do.”
A spokesperson for the council says: “The biggest hurdle facing households is the financial cost of securing a new home. The aim of the landlord incentive scheme is to bridge that gap by providing financial assistance, and also importantly, enhance our relationships with landlords to encourage them to see the benefits of working alongside us.
“Our scheme will help households access private rented assurance shorthold tenancies, particularly those who otherwise would not be able to meet the funds themselves.
“Our offer is amongst the most generous in the South West, and I believe it is in the interests of landlords to work with us.”
