PSL management overview
A Private Sector Leasing (PSL) scheme provides a mechanism for housing organisations to lease properties from the private sector for a set term, with the lease period ranging anywhere between 3 and 25 years. Properties leased by a local authority are typically used to fulfil their legal obligations in respect of providing temporary accommodation to those individuals who have been officially classified as homeless. More generally, the operation of a PSL scheme is an effective way to expand housing stock to cope with demand for housing, and many local authorities and housing associations now run successful schemes, supported by growing numbers of landlords who recognise the mutual benefits. Indeed, from a landlord's perspective, such schemes offer the potential of guaranteed rental income over a defined period, with no voids, no agency fees, reduced maintenance overheads and the assurance of vacant possession at the end of the tenancy. The scheme also works for the social housing provider, often facing huge demand from families desperate to secure accommodation in their local area.
For each privately owned property secured through a PSL scheme, a lease rate can be established and mapped to the asset, representing those values paid back to the private landlord at an agreed frequency - weekly, fortnightly, four weekly, calendar monthly - for leasing out the property. The terms of the lease are then fulfilled through the creation of a PSL agreement - operating in parallel with a separate rent agreement once the property is tenanted - and will comprise those custom accounts that categorise the nature and range of applicable fees. The overarching management agreement type will determine 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 PSL management, including: