How does this arrangement work?
In the most simple terms, you own the property and Fairoak rent it from you. Fairoak then sub-let the property to its tenant(s).
What is the typical rent I can expect to receive?
This depends on the location of your property and the number of bedrooms. We will always ensure that tenants have plenty of living space, both in terms of their own bedroom and communal rooms (kitchen, dining, living rooms, bathrooms etc). Be assured, we will always pay the market rate for your property.
Who will be responsible for property maintenance?
Some of this will be Fairoak’s responsibility, others will be yours. A full contract will be drawn up stating who is responsible for structural repairs, fixtures and fittings or white goods. Fairoak do have a team of property maintenance professionals and can provide a ‘let and forget’ service on your behalf.
Who checks my property is being looked-after?
Fairoak will make regular visits to ensure that everything is as it should be. We also have systems in place for tenants, their friends, family or support workers to report any problems so that they can be recified as quickly as possible.
Will I have to pay tax on rental income?
Yes. Any payments made to you will be classed as earnings and are subject to tax where appropriate. Fairoak can introduce you to independent financial advisors and accountants who will be able to advise you further on these matters.
Will I need to get a commercial mortgage and landlord insurance?
It is always best to be completely tranparent with your mortgage lender so that any potential issues in the future can be avoided. Likewise with insurance, it’s best to be properly covered. These need not be too onerous and there may be tax relief applicable (https://www.gov.uk/government/news/changes-to-tax-relief-for-residential-landlords)
What if I buy a property as an investment and rent it back to Fairoak?
That’s absolutely fine with us. If you are looking to invest, then we can also offer advice on what properties might be best suited for this type of letting.
Will I need to make any adaptations or alterations to my property?
Again, Fairoak can advise on the property as it stands and produce a report on what may need to be done to bring the facilities up to the required standard.
Who will pay the rent – Fairoak or the tenants?
Fairoak will be your direct tenant and the arrangement we have is that we shall be responsible for the sub-letting of the property. This means that you will be guaranteed to recieve rent every month.
Typically, how long do your tenants stay in a property?
Over the XX properties in the Fairoak portfolio, the average time a tenant has stayed is XX years.
What if I want to end the letting agreement?
We suggest that you commit to a minimum period of three years with us – this allows tenants to settle in to the home with as little disruption to them as possible, something which can be quite upsetting for anyone. If you do want to end our agreement, we ask for three months notice so that we can ensure the transition is as