Council Property

The terms for tenancy of council property are on a different footing in most cases. In the first place, the standard rent is generally based not on market value of the property but on the original cost, often a very great deal lower, on the grounds that the person who should benefit from the escalation in property prices since the date of construction should be the tenant and not the landlord (the council). From a purely commercial point of view the tenant is obtaining a service from the council at a price subsidised by the general ratepayers of the area, for it is their council that had the good sense to invest in house property, and it could be argued that the benefit should be spread among all ratepayers, not just those occupying council property.

The rent payable on council property commonly includes rates, but this is by no means invariable. One should always read very carefully the draft wording of any agreement for property letting.

Furnished accommodation

It is very difficult to generalise on the terms of agreements for renting furnished accommodation. A very usual such letting is on the basis that the tenant pays for his own metered electricity and gas, and for the telephone, but the landlord pays the rates, water rates, insurance, repairs, maintenance and decoration inside and out. For a fully-furnished house let on this basis the rent will have to be high enough for the landlord to meet all his costs, as well as the wear and tear of his furniture and fittings, out of his rent receipts before he calculates the rate of return on his capital. If the property were lettable unfurnished at £3000 a month, the rent for a short-term furnished let is likely to be around £400 a month.

By the same token the rent for a furnished one-bedroom flatlet in any of the big cities is likely to be upwards of £25 a week, or £120 a month. If the rent is expressed as inclusive of all services such as electricity, gas and central heating, as well as of rates, it would be a great deal higher.


Rented Accommodation

Unfurnished houses and flats to rent are not often available in the private sector, partly because recent legislation discourages an owner from letting to a tenant. Furnished accommodation, however, is generally available where it consists of a part only of a single dwelling partly occupied by the landlord.

Unfurnished

An unfurnished house or flat is unlikely to be offered to let by the owner for a rent that does not give him a reasonable return on his capital. As an alternative to letting the property the owner could sell it and invest the proceeds to yield interest. If the market value... see: Rented Accommodation


Refunds, Personal And Business Finance 2017

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