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RAS scheme anyone familiar with it?

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  • 30-04-2013 10:50pm
    #1
    zoe88
    Registered Users Posts: 32 ✭


    Was wondering if a house was in receivership and wouldnt sell, would the receiver be likely to sign a contract with the council for the RAS scheme?

    Any info would be great thanks!:)


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    #2
    Egan2012
    Registered Users Posts: 249 ✭✭Egan2012


    Hi,
    I am currently on the RAS scheme. I was on rent allowance when the council contacted me about going on this. They made it sound hunky dory. But when I went to the meeting they told me I had no choice but to go on the scheme or I would loose my rent allowance. I signed up for it and told me they would find me a house. They got me a house and it's a **** hole. Coldest house in the country. The landlord is a bollocks and the council don't want anything to do with us. They just pay the rent and that's it. Everything else is down to the landlord.


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    #3
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    THE council usually ,sign a 5 year contract with the landlord,
    home owner,
    never heard of them dealing with a reciever.
    ring the council or maybe threshold might know.
    see threshold.ie
    eg the council pays the landlord the rent ,and chooses the tenant .


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    #4
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    A receiver will have no interest whatsoever in signing a longterm RAS contract with a council. It is not in their interests to hang onto assets indefinitely- they are trying to get in and out, maximising any possible return on the asset as quickly as possible. This does not mean they get top dollar for their properties- it means they sell them.

    An indication of how ruthless receivers are- and how they just want to realise any possible cash from an asset- a hotel in Louth sold today for 1.45 million. It was built at a cost of 34 million. Aka- it sold for 1/20th the cost to build the place. Receivers are not in it for the long haul- they want to get in, realise any cash, and get the hell out.


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    #5
    foggy_lad
    Closed Accounts Posts: 20,373 ✭✭✭✭foggy_lad


    Egan2012 wrote: »
    Hi,
    I am currently on the RAS scheme. I was on rent allowance when the council contacted me about going on this. They made it sound hunky dory. But when I went to the meeting they told me I had no choice but to go on the scheme or I would loose my rent allowance. I signed up for it and told me they would find me a house. They got me a house and it's a **** hole. Coldest house in the country. The landlord is a bollocks and the council don't want anything to do with us. They just pay the rent and that's it. Everything else is down to the landlord.

    You are not forced to sign up but once you do and they find you suitable accommodation you would be obliged to consider it, remember that this is not a council house and the council are not responsible for any maintenance or repairs, but a private rental agreement between you and the landlord which is facilitated by the council and any dispute between ye can be easily sorted out through the PRTB.


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    #6
    Egan2012
    Registered Users Posts: 249 ✭✭Egan2012


    foggy_lad wrote: »
    You are not forced to sign up but once you do and they find you suitable accommodation you would be obliged to consider it, remember that this is not a council house and the council are not responsible for any maintenance or repairs, but a private rental agreement between you and the landlord which is facilitated by the council and any dispute between ye can be easily sorted out through the PRTB.

    When I went to the meeting for the RAS I was told by the person in the council that if I didn't take the house I would have lost my rent allowance.


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    #7
    Pawwed Rig
    Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 22,380 CMod ✭✭✭✭Pawwed Rig


    I looked into it once and it did not seem to be a great scheme from a Landlords perspective.
    The LL will receive a below market rent.
    The LL has no control over who moves in.
    The LL remains liable for any hassle/maintenance.

    Because of this if a LL has a decent house that can be let easily it is more beneficial to remain in the open market. Also, there is alot of paperwork and box ticking that needs to be done before the house is accepted by the council.


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    #8
    foggy_lad
    Closed Accounts Posts: 20,373 ✭✭✭✭foggy_lad


    Pawwed Rig wrote: »
    I looked into it once and it did not seem to be a great scheme from a Landlords perspective.
    The LL will receive a below market rent.
    The LL has no control over who moves in.
    The LL remains liable for any hassle/maintenance.

    Because of this if a LL has a decent house that can be let easily it is more beneficial to remain in the open market. Also, there is alot of paperwork and box ticking that needs to be done before the house is accepted by the council.

    The landlord can veto any prospective tenant with good reason and also they get below market rent but are guaranteed the rent unlike with dealing with the many people now who stop payong aftet a few months but dont leave till evicted. The landlord is always liable for maintenance and any hassle.

    Also all tenants are garda vetted to make sure they are not involved in drugs or other criminality.

    As for the paperwork. That is only going to be a problem for the many slum landlords still in existence.


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    #9
    Owryan
    Closed Accounts Posts: 4,024 ✭✭✭Owryan


    Egan2012 wrote: »
    Hi,
    I am currently on the RAS scheme. I was on rent allowance when the council contacted me about going on this. They made it sound hunky dory. But when I went to the meeting they told me I had no choice but to go on the scheme or I would loose my rent allowance. I signed up for it and told me they would find me a house. They got me a house and it's a **** hole. Coldest house in the country. The landlord is a bollocks and the council don't want anything to do with us. They just pay the rent and that's it. Everything else is down to the landlord.

    Lol that story could be me. As a single male RAS was/is my only option. Cant ask for a transfer and going private rented isnt an option .

    Saying that RAS is a good scheme if you can find a decent property and landlord willing to sign up to it


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    #10
    Pawwed Rig
    Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 22,380 CMod ✭✭✭✭Pawwed Rig


    foggy_lad wrote: »
    The landlord can veto any prospective tenant with good reason
    May aswell get his own tenant in that case
    foggy_lad wrote: »
    and also they get below market rent but are guaranteed the rent unlike with dealing with the many people now who stop payong aftet a few months but dont leave till evicted.
    I would argue that this is the exception rather than the rule. A well vetted tenant works out fine in most cases.
    foggy_lad wrote: »
    As for the paperwork. That is only going to be a problem for the many slum landlords still in existence.
    It is an extra hassle that many LL do not want. I would refer you to post number 2 for a LL who is on it.


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    #11
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    THE point of the ras scheme is the council pays the rent,its gauranteed,
    for x amount of years .
    You,d likely get a single mother with 2 kids , if you sign up for it.
    AS a landlord.
    the rent depends on the AREA ,the house is in .
    IF you are renting a house in rathmines, you will not likely accept ra tenants ,
    as rent allowance rates would probably lower than you,d get on daft.ie ,or the open market.


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    #12
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    riclad wrote: »
    IF you are renting a house in rathmines, you will not likely accept ra tenants ,
    as rent allowance rates would probably lower than you,d get on daft.ie ,or the open market.

    RA levels are revised regularly to be X% below the prevailing open market rent rates for a particular area (or region- some areas are simply enormous). They are *always* set below the open market rate. There may be very limited occurences where they meet/match/beat open market rates- however in these situations- the levels are simply revisited, and revised downward again.

    One reason landlords do not particularly like the scheme- is while they are guaranteed a rental income- the rental income can be revised downwards- without warning, and they have no say in the matter (as they are contractually obliged for the period of the lease with the council). Many landlords who have participated in the scheme have chosen not to renew their contracts with councils (notably Cork) as the lower rent is not commensurate with lower obligations- and in Dublin, Cork and Galway- they have no problems whatsoever letting on the open market anyway. The landlord still has all the responsibilities towards the tenant- only for a lesser rental income- and they'd have no problems letting on the open market anyway- so why bother.

    RA is a win-win for the council- and tenants- and the guaranteed rental income was sold as a win-win for landlords- however, its not all it was promised to be at the outset.......


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