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Why lease your property to a supported living provider - 5 benefits you need to know 

Updated: Mar 26

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In this article I am going to explain the 5 reasons property investors can benefit by investing in supported living property. In my experince it can be a very powerful way to hold property for the long term, increasing your net income and reducing the stress of managing property.  

  1. Long term tenants  In supported living you get a tenant who leases your property for anything between 2 and 15 years. Anyone who has been a landlord for a while knows how quickly tenant changeovers can eat into your profits, even if the property is only empty for a few weeks and there is minimal work to do between tenants this void period can be expensive; a few hundred pounds for repair work and then the tenant find/referencing fees. This can all eat into a couple of months' profit on an average buy to let. If your property is an HMO then tenant turnover can be more frequent and costs can be higher.    If a supported living provider is leasing your property, typically you will not be responsible for void periods for the length of the lease. This means over the term of the lease you are generally net better off, not to mention a reduced hassle factor as changeovers cost your precious time. 

  2. Utilities  Once your property is leased you are generally not responsible for utility bills, this does not impact standard buy to let landlords but for HMO and Serviced Accommodation landlords this can be significant, especially in the current market with uncertainty around utility costs.  Letting your property to a supported living provider gives you certainty about the income you receive each month. 

  3. Management  The supported living provider leasing your property will take over management of the property and the tenants so you do not need to pay a letting agent for this. If you self-manage your properties, then consider the significant time saving involved.  You may still want a letting agent to perform periodic inspections of the property on your behalf but many agents will offer this at a reduced cost to their standard monthly letting fees.  

  4. Repairs  Most providers will cover internal damage and the heavier wear and tear their tenants may cause on the property. It will depend on your lease terms but this results in more net income for you over the length of the lease as well as saving you time as they will very often manage repairs.   In my experience, these combined benefits offer the closest thing to a hands-free landlord experience. Having owned private rental property and supported living property for a number of years I prefer the phone calls from the provider saying “Lisa, just to let you know we are replacing 3 doors that got damaged” versus the “Lisa the drains in the garden are blocked with leaves again can you get someone to sort it” calls which result in my time and cost.  

  5. Social impact  You are providing a home for those in society who need them the most, this is what appeals to many property investors who are looking to make a difference with their property portfolio. Knowing your property business is helping others is a hard feeling to beat.  

I strongly feel that leasing your property to a supported living provider, if set up well, is possibly the best way to hold property for the long term. There can be considerable time savings and often net monthly income is higher. If you combine a supported living lease with a buy refurbish refinance strategy it can be a powerful way to build long term wealth.   

If you want to find out how to find a provider to lease your property then download my free guide or look at what we do in The Supported Living Property Network.

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