Landlord information

Incentive scheme

Landlord incentive scheme logo

Finding a home on the Island can be very difficult and for many people this can be nearly impossible. We are keen to work with landlords and letting agents to find new ways of providing local people with a home they can make their own. We believe that the private rented sector has the ability to offer people good quality affordable housing. The Landlord Incentive Scheme offers a package of measures that will encourage you to work with us to open new housing options for people. In return you will have the reassurance of our support if any issues arise with the tenant.

The scheme

We enter into an agreement with you for a minimum period of 36 months to rent out your property. You issue a normal Assured Shorthold Tenancy agreement to the tenant and the property is managed by you or an agent acting on your behalf. Affordable rents are agreed in advance based around the local housing allowance for the property size. In exchange, we are offering landlords:

  • no tenant finder fee or renewal fees
  • rent guarantee during the three year period, including void period
  • damage bond of £2,000 per tenancy for any damage exceeding fair wear and tear (in addition to the rental guarantee)
  • free photograph inventory
  • free model tenancy agreements
  • dedicated officer to respond to rental queries, provide advice and support, including joint property visits
  • longer term tenancies
  • right to rent checks completed
  • access to tenancy sustainment support if tenants require additional support

Financial incentives

The scheme offers an initial one off payment for every property signed up to the scheme. We pay:

  • £500 for a one bed
  • £1000 for a two bed
  • £1500 for a three bed
  • £2000 for a four bed

Nominate another landlord and earn £250 if they introduce a new property to the scheme (this is limited to one payment per landlord and only when property signed to the scheme. Available to existing scheme landlords only).

Types of properties

We are looking for all sizes of self contained accommodation, preferably in the main town areas. The table below shows how the scheme compares to other private rental options.

  Landlord incentive scheme (£) Letting with a high street agent (£)
Annual letting income
Monthly rent 600 685
Annual letting income 7200 8220
Annual expenses
Sign up fees and admin 0 250
Loss of potential rent and council tax during void period (estimated three weeks) 0 612
Inventory 0 125
Tenancy renewal 0 150
Property insurance 250 250
Letting management charge at 10% (if not managed directly by landlord) 750 822
Annual gas safety check and service 200 200
Total annual expenses 1200 2409
Total net annual income 6000 5811

Property occupiers

The prospective tenant will be nominated under the scheme by us. They will be threatened with homelessness and unable to access accommodation for themselves by any other means.

Property standards

All properties must meet have a minimum property standard. We will assess each property against these standards before accepting it onto the scheme. A brief overview of minimum standards include:

  • properties should be free from damp, well heated and insulated, safe and meet the Governments minimum standard of health and safety under the Housing Health and Safety Rating System (HHSRS) and associated legislation.
  • be clean, well maintained and presented
  • have secure and suitable light fittings
  • have curtain tracks or poles
  • all properties must be fitted with operational smoke alarms on each floor
  • all structural elements of the property must be in good condition and repair
  • all internal decorations must be less than five years old

Property maintenance and repair

You or your appointed agent is responsible for carrying out maintenance and repairs, including hot water/heating systems and any gas and electrical safety checks during the term of our agreement. We require current valid copies of:

  • gas safety certificate
  • electrical safety certificate
  • if the property is mortgaged, we will require written approval from the mortgagee, or evidence of a ‘buy to let’ mortgage
  • valid insurance policy for the property against fire, flood, subsidence and any reasonable damage that could be expected
  • energy performance certificate with rating of E or above

End of agreement

At the end of the agreement signed between us, there is an option to renew if both parties agree. If the tenancy is being conducted satisfactorily and the landlord wishes to retain the tenants, your property will be returned to you at the end of the term that you agreed with us, and a deposit/bond equivalent to one months rent will be paid for you to hold against the tenant continuing in the tenancy.

Gaining possession of a property

If the tenant is in breach of their tenancy agreement with you, and this cannot be satisfactorily resolved, you will be expected to take appropriate legal remedies available to you under the tenancy agreement. We can offer landlords support through this process. If you wish to sell the property you can terminate the agreement with us with three months notice.

View an example of the agreement and terms your property would be signed into. 

How to apply

If you are interested in working with us under this scheme please contact the Accommodation Officer by emailing landlordincentivescheme@iow.gov.uk or call 01983 823040.