Ethical Investments
Bishops Court are a unique social commercial agency.
Local councils, housing associations and charities are now looking to acquire blocks of properties, houses and apartments, in many areas across the UK on a 25 to 30 year, full repair and insure lease-agreement from major private landlords. This allows the councils and housing associations to increase their housing stock while not having to invest huge amounts of cash upfront helping them to stretch and do more with their limited budgets.
Property investors can benefit by investing in social housing property. It can be a very powerful way to hold property for the long term, increasing your net income and reducing the stress of managing property.
Long Term Tenants
In social housing you get a tenant who leases your property for anything between 2 and 30 years. Anyone who has been a landlord for a while knows how quickly tenant changeovers can eat into your profits, even if the property is only empty for a few weeks and there is minimal work to do between tenants this void period can be expensive. If your property is an HMO then tenant turnover can be more frequent and costs can be higher.
If a social housing provider is leasing your property, typically you will not be responsible for void periods for the length of the lease. This means over the term of the lease you are generally net better off, not to mention a reduced hassle factor as changeovers cost and your precious time.
Utilities
Once your property is leased you are not responsible for utility bills, this does not impact standard buy to let landlords but for HMO and Serviced Accommodation landlords this can be significant, especially in the current market with uncertainty around utility costs. Letting your property to a social living provider gives you certainty about the income you receive each month.
Management
The social housing provider leasing your property will take over management of the property and the tenants so this really is a "hands off" property investment.
Repairs
Most providers will cover internal damage and the heavier wear and tear their tenants may cause on the property. This results in more net income for you over the length of the lease as well as saving you time as they will manage repairs.
At Bishops Court, we are passionate about offering not just a quality service but an ethical one too. We have established relationships with charities and care providers as well as local councils and property investment companies. We take a long-term view of the property market, so private landlords and corporate/social housing tenants can use our services in full confidence.
Social impact
You are providing a home for those in society who need them the most, this is what appeals to many property investors who are looking to make a difference with their property portfolio. Knowing your property business is helping others is a hard feeling to beat.