Landlord Incentive Scheme
Finding a home on the Island can be very difficult and for many people this can be nearly impossible.
The Isle of Wight Council is 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 housing options that they might not have considered exploring.
At the same time, the council wants to ensure landlords and letting agents are comfortable to help us find homes for people who otherwise will find it hard to access good quality housing.
Landlord Incentive Scheme developed by the Isle of Wight Council 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 the council’s support if any issues arise with the tenant.
How does the scheme work
The council enters into an agreement with landlords for a minimum period of 36 months to rent out their properties. The landlord issues a normal Assured Shorthold Tenancy agreement to the tenant and the property is managed by the landlord or an agent acting on their behalf. Affordable rents are agreed with the landlord in advance based around the local housing allowance for the property size.
In exchange, the Isle of Wight Council are offering landlords:
- No tenant finder fee or renewal fees to landlords.
- Rent guarantee for the life of each tenancy agreement, 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 inventory.
- Free model tenancy agreements.
- Dedicated officer to the Landlord Incentive Scheme at Isle of Wight Council 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.
Additional financial incentives for landlords
The Landlord Incentive Scheme offers an initial one off payment of £400 for every property signed up to the scheme.
Nominate another landlord and earn £250 if they introduce a new property to the Landlord Incentive Scheme. Please note, 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 the Council are interested in
We are looking for all sizes of self contained accommodation from bedsits to one and two bedroom properties up to larger family homes, preferably in the main town areas of the Island
The table below shows how the Landlord Incentive Scheme compares to other private rental options:
|| Landlord Incentive Scheme
|| Letting with a High Street agent
| Annual letting income
| Monthly rent
| Annual letting income
| Annual expenses
| Estimated void period
| Sign up fees
| Letting management charges
|| £720 (unless you manage the property yourself)
| Loss of potential rent income through rent arrears (4 weeks)
| Tenancy renewal
| Property insurance
| Total annual expenses
|| £1,120 (£400 if you manage the property yourself)
| Total net annual income
|| £5,780 (£6,500 if you manage the property yourself)
*This is based on renting a two bedroom property on the Island over a 12 month period
Who will occupy my property
The prospective tenant will be nominated under the scheme by the council; they will be threatened with homelessness and unable to access accommodation for themselves by any other means.
Will my property need to meet any standards
All properties must have a minimum property standard. The council will assess each property against these standards before accepting it onto the scheme.
A brief overview of minimum standards:
- 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.
- All structural elements of the property must be in good condition and repair.
- All internal decorations must be less than 5 years old.
Who is responsible to provide maintenance and repairs to the property
The landlord or their 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 for the property.
- Electrical safety certificate for the property.
- If the property is mortgaged, we will require written approval from the mortgagee, or evidence of a ‘buy to let’ mortgage. You must advise your bank or building society that you will be letting the property. Some lenders will charge an administration fee for issuing a consent letter. There may also be variation in interest rate levels of the mortgage. If the property is leasehold, the head lease will specify whether or not you should gain permission from the freeholder or the freeholder’s managing agent.
- Valid insurance policy for the property against fire, flood, subsidence and any reasonable damage that could be expected.
What happens at the end of the agreement
At the end of the agreement signed between the council and the landlord; there is an option to renew if both parties are in agreement. Alternatively, 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 the council, and a deposit/bond equivalent to one months rent will be paid for you to hold against the tenant continuing in the tenancy.
How will I gain possession of my property
If the tenant is in breach of their tenancy agreement with you, and this can not 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 the council on 3 months notice.
I am interested in letting my property under this scheme, what happens next
If you are interested in working with the council under this scheme please contact the Accommodation Officer by using the online send a message to service form.