Invest in social impact properties
How it works
Vestega uses algorithms and a collection of property databases to develop a software that automates the process of finding and evaluating property advertisements as they are posted. This allows us to find the best property investments in the country at lightning speeds.
We secure 3 to 10-year guaranteed rent leases from councils. These rents are paid regardless of tenant voids or non-payment. The management of the property and tenants are provided by the council at no cost. In some cases, cash incentives are offered upfront for agreeing to lease to the council.
As part of our social impact offer, we are committed to only charging a cost-neutral rent. Councils can house a homeless person or family in our rental properties rather than pay for expensive short-term accommodation like hostels or bed and breakfast.
Our software allows us to find properties that are the highest yields, most under-valued and with greatest growth potential. The investments offer significant returns, but with the safety of government-backed leases.
Who we help
We can help any property investor to generate a good return whilst also delivering social impact. You might be an institutional investor, a council, a smaller investor or an individual.
We can help investors looking for one property or can support larger organisations looking for portfolio-sized positions.
Why invest in property this way?
We find all kinds of residential properties advertised through estate agents ranging from 1 bed flats to 4 bed houses. Demand for properties in the London area are generally for 2 and 3 bed flats.
You would own the property. We support you in finding, valuing, viewing, and acquiring the property, but you would ultimately own it.
The lease would be with a local authority council. The lease is NOT with the tenant. Therefore, all guarantees on rent and repairs would be backed by local government.
The lease can be as short as 3 years or as long as 10 years. You choose how long you want the lease to be. Year 1 rent level is guaranteed and then rent will increase with inflation (CPI) every year.
The council will cover most costs beyond fair ‘wear and tear’ and will cover any damage caused by the tenant. If any aspect of the property needs maintenance and doesn’t fall under the responsibility of the council, then you as landlord will be responsible for this cost.
This lease offers a ‘hands-off’ landlord position. The council will provide management of the property and tenant for free as well as cover a portion of the maintenance costs. Where a maintenance cost does fall under your responsibility, the council will provide you with three quotes from their suppliers from which you can choose. The council will also handle tenant turnover and ensure the proper inventories are taken at each transition.
Rent is paid at the start of each month and is guaranteed by the council. Rent is paid no matter what. Even if there are tenant voids or non-payment by the tenant, the Council will pay you regardless.
Tenants are private tenants on housing benefit and likely at risk of homelessness due to high rents, employment issues in the family or other extenuating circumstances.
When people become homeless councils have an obligation to house them, which comes at great social and financial cost to themselves and the wider community. The leading cause of homelessness are families who were in private tenancies and cannot afford the rent. The guaranteed rent leases councils offer provide long, stable tenancies for people, which is essential to preventing homelessness. While councils currently establish leases with the private sector across London, these landlords are often charging market rent which may be higher than the rate councils are reimbursed by government. Our software and data analytics finds properties that can be charged at rents which are cost neutral to the council whilst maintaining significant financial return for you.
We charge a small retainer fee to provide you with the daily lists of properties we have identified as the best investments. The only other fee is commission-based, payable if you buy a property and we secure a lease with the relevant council. This will only be payable after the agreement has been secured. We offer an optional service to coordinate landlord repairs with the council, offer annual valuations of the property and other investment advice throughout the duration of the lease.
You will receive a daily portal of shortlisted investment properties with key information including expected rental income, valuation, and growth projections. When you see a property that you are interested in, we schedule a viewing and provide you with photos and a condition report. Once you find a property you are happy to proceed with, we will support you through the negotiation stage and advise on a target price. Once a price has been agreed you will need to source your own mortgage, solicitor, and surveyor. On completion we will secure a lease deal with the relevant council. Once this lease has been secured the final commission payment will be due. At this point your only duties are to agree responsive repairs by the Council’s suppliers (when needed). We can handle these duties on your behalf and also provide you with valuations from our software throughout the lease for an additional yearly fee.