PRS management overview
A Private Rental Sector (PRS) management programme provides a mechanism for housing organisations to secure properties from the private sector, match them to prospective tenants through their standard allocations process, and then deliver a comprehensive range of proactive services on behalf of the landlord under an agreed contract. They are seen as an effective way to expand housing stock to cope with demand for housing, and many local authorities and housing associations now choose to extend their property portfolio in this way, supported by growing numbers of landlords who recognise the benefits. Indeed, from a landlord's perspective, such arrangements offer the potential of securing income over an extended period, with the responsibility for all letting activities, voids management, initial and reactive maintenance, as well as ongoing rental collection, being fulfilled by the housing organisation. The arrangement also works for the social housing provider, often facing huge demand from families desperate to secure accommodation in their local area.
Each privately owned property to be managed by the housing organisation can be created as an asset, and then mapped through to a fee calculation method, representing the proportion of revenue that will be levied for providing wraparound services; the cost of initial and ongoing repairs maintenance will also be deducted from the periodic rent values paid back to the private landlord. The terms of the contract are then fulfilled through the creation of a PRS agreement - operating in parallel with a separate rent agreement once the property is tenanted - and will comprise those custom accounts that track the range of applicable fees together with all outgoing payments. The overarching management agreement type determines the collective responsibilities between the housing organisation and the private landlord in respect of ongoing repairs and maintenance, separating out those tasks identified as the responsibility of the private landlord against those to be fulfilled by the housing organisation, with the opportunity to then recharge specific costs, as appropriate.
Separate help articles have been created for each key aspect of PRS management, including: