Long Term Leasing
This arrangement will suit property owners and landlords who want to retain property as a long-term investment and have a long-term security of income, but who do not wish to retain responsibility for the day-to-day requirements of managing a residential property.
Suitable properties can be leased to Sligo County Council for periods of between 10 and 19 years.
During the term of the lease:
- The local authority will guarantee payments to the owner.
- Payment will continue regardless of vacancy periods.
- The local authority will be responsible for day-to-day property maintenance.
The local authority will be the landlord to tenants. In addition, property owners who have leased their properties to a local authority will:
- Have no rent collection or rent arrears obligations.
- Not incur advertising or administrative overheads.
- Not have to register the Tenancy with the Private Residential Tenancies Board (PRTB).
Owners will receive a lease amount of approximately 80% of the current market rent. Rents will be agreed through negotiation with Sligo County Council. The rent discount is applied to take account of the tenant management and property maintenance responsibilities taken on by the local authority and the elimination of vacant unoccupied periods where a property owner would normally not receive a rent payment.
Rent Reviews: Rent shall be subject to review on every second anniversary of the Term Commencement date. Rent on each Review Date to be reviewed by reference to the change indicated by the Privately Owned Rent Index component of the Consumer Price Index Rental Sub- Indices (2006 base) or any replacement thereof issued by the Central Statistics Office of Ireland.
- The owner will retain responsibility for structural insurance, structural maintenance and structural repair.
- The owner will retain responsibility for the payment of the management company service charge, and any other charges for which the property owner is liable. e.g. the Non Principal Private Residence (NPPR) Charge and the Local Property Tax.
- Any Charges associated with the Property are the responsibility of the occupier e.g. ESB, Water Charges, Waste Water Charges
- The local authority or AHB will manage and provide support to its tenants.
- The local authority or AHB will maintain the property internally for the term of the lease.
- Owners will receive an income of approximately 80% of the current market rent.
- Payments will be made quarterly.
- Upward and downward rent reviews will apply periodically.
- Properties will be returned to the property owner in good condition at the end of the lease term, subject to normal wear and tear.
- In some instances the property owner may agree with the local authority to include an ‘option to purchase’ as a condition of the lease. This gives the local authority the option to buy the property during the term of the lease. Both parties must be in agreement to include this condition and the specific terms can be negotiated.
It will be the responsibility of the property owner to ensure they consult with their finance provider and to get consent to enter a leasing arrangement, if required.
The properties acquired under this arrangement will be offered by the local authority or the AHB as accommodation to households who have been approved by the local authority for housing. Tenants will sign a tenancy agreement with the local authority or the AHB.