Council Lease vs Letting Agent at a Glance
What a Letting Agent Gives You
A letting agent markets your property, finds and references tenants, and, on a full-management service, handles the tenancy for a percentage of the rent. The clear advantage is the rent level: your property is let at the open-market rate, which in most areas is higher than the figure a government lease is pitched at.
The trade-off is that you still carry the risks. Void periods between tenancies are yours, as is the cost of re-letting each time. Arrears are yours unless you pay extra for rent protection. Repairs,
compliance and the property’s condition remain your responsibility, and the management fee is deducted from your rent every month.
What a Government Lease Gives You
On a government lease, which is what RentPromise arranges, your lease is with a local authority, housing association or the Home Office. They pay a fixed rent every month for one to five years whether the property is occupied or not, place and support the occupants, and are responsible for repairs and the
property’s condition for the term.
The clear advantage is certainty. There are no voids, no tenant management and no arrears risk, and the rent arrives whether the property is full or empty. The trade-off is the headline figure: because the rent is funded within housing budgets, it is usually a little below the top open-market rate a good agent could achieve.
Common Questions
A government lease has no percentage management fee taken from your rent, unlike a letting agent who typically charges 10 to 15%. RentPromise charges the landlord a management fee, quoted per property, that is not deducted from the rent flow. The headline rent, though, is usually a little below open-market rate.
Usually a little, yes. Because the rent is funded within housing budgets rather than the open market, the headline figure is often below what a letting agent could achieve. What you get in return is a fixed sum every month for the term with no voids, no arrears risk and no management, which many landlords value more.
Under a letting agent, repairs and the property’s condition stay your responsibility as landlord throughout. Under a government lease, the government body is responsible for the condition of the property for the term, while you remain responsible for the structure and your ownership obligations. The exact split is confirmed before you sign.
Yes, once your current tenancy allows it. Many landlords move a property onto a government lease at the end of an agent-managed tenancy, to stop the cycle of voids and re-letting. Tell us about the property and your current arrangement, and we will explain the timing and what a lease would look like.
See what agovernment lease would pay you
Tell us the address and a few details, and we will come back with an offer setting out the fixed rent and the term, so you can compare it directly against your open-market and agent-managed figures. Free survey and valuation, no obligation.
Or call us on (612) 123 - 4456 78 to talk it through first.