How the Letora Framework Works
A clear explanation of our Exempt Accommodation model, how responsibilities are allocated, and what it means for you as a landlord.
What is Exempt Accommodation?
Exempt Accommodation is a category of supported housing funded through the Department for Work and Pensions (DWP). It provides housing for vulnerable individuals who require additional support to sustain their tenancies.
The "exempt" status means that Universal Credit housing payments for qualifying tenants are not subject to Local Housing Allowance (LHA) caps. This allows for enhanced rental rates that reflect the cost of providing supported accommodation.
For landlords, Exempt Accommodation offers access to government-backed housing payments at rates significantly higher than standard private letting. However, it comes with specific requirements around property standards, tenant eligibility, and regulatory compliance.
The Letora framework enables qualifying properties to achieve Exempt Accommodation status while you retain operational control of your property.
How the Framework Works
The Letora framework provides the regulatory structure and payment processing that enables your property to operate as Exempt Accommodation. Understanding the mechanics is essential.
Regulatory Status
Properties qualifying under the framework achieve Exempt Accommodation status. The framework entity appears on tenant paperwork, which is required for the regulatory status to apply. This is not a change of ownership or tenancy arrangement with you—it is documentation that enables the exemption.
Payment Flow
Universal Credit housing payments are made by the DWP to the framework. The framework then distributes these payments to you after deducting its fee. This provides a single, consolidated payment stream rather than collecting from individual tenants.
Tenancy Documentation
You use the framework's compliant tenancy documentation. This documentation is structured to meet Exempt Accommodation requirements. The framework entity appears as the provider on tenant paperwork, which is necessary for the enhanced housing element to apply.
Tenant Referrals
The framework provides tenant referral pathways. You can accept or refuse referrals at your discretion. You may also self-source tenants who meet eligibility criteria for the framework.
Your Role as Operator
Under this framework, you are not a passive investor. You are the Operator—responsible for the day-to-day management and maintenance of your property. This is a hands-on role.
Your Responsibilities
- •General maintenance and repairs—you arrange and pay for these
- •Day-to-day tenant issues—queries, complaints, minor problems
- •Behavioural management—tenant conduct, house rules, neighbour relations
- •Property compliance—maintaining standards within framework requirements
- •Void periods—you carry the risk when rooms are empty
- •Tenant acceptance decisions—you can accept or refuse referrals
Weekly property visits are best practice but not mandatory. You manage the property as you see fit within framework guidelines. The work is similar to standard HMO management—the difference is the payment mechanism and regulatory status.
If you are seeking a passive arrangement where someone else manages everything, this framework is not designed for you.
What the Framework Provides
The Letora framework is not a property management service. It provides the regulatory and administrative infrastructure that enables Exempt Accommodation status.
Regulatory Infrastructure
The framework structure that enables your property to qualify as Exempt Accommodation. This includes the registration, compliance framework, and documentation required for the enhanced housing element to apply.
Payment Processing
Collection and distribution of Universal Credit housing payments. Payments come from a single source rather than multiple tenants, simplifying your income management.
Compliant Documentation
Tenancy documentation that meets Exempt Accommodation requirements. This documentation is structured to ensure the regulatory status applies correctly.
Referral Pathways
Access to tenant referral channels. You retain discretion over acceptance, but the framework provides a supply of eligible tenants seeking supported accommodation.
The framework does not manage your property, handle your maintenance, or deal with your tenants. Those responsibilities remain with you as the Operator.
Income Structure
Income under this framework is based on enhanced Universal Credit housing element rates, which are not capped by Local Housing Allowance.
Government-Backed Payments
Housing payments are made via the DWP through Universal Credit. Once a tenant is correctly placed, the housing element is stable and not arbitrarily withdrawn. This provides more payment reliability than private tenant affordability.
Indicative Net Income
After framework deductions, you receive approximately £200 per room per week for standard Universal Credit single adult claimants. For enhanced claimants (those receiving PIP, LCW, WTC, or Carer payments), this rises to approximately £231-261 per room per week. Figures are area-dependent.
100% Net Income to You
There is no profit share. After the framework deduction, you receive 100% of the remaining income. Your actual profit depends on your operating costs and occupancy levels.
Void Risk
Void risk remains with you. If rooms are empty, you receive no income for those rooms. The framework does not provide income during void periods.
Net income = UC housing element received – framework deduction
Income varies based on occupancy, tenant type, and area. Operating costs and void periods affect your actual profit.
The Service Level Agreement
The relationship between you and the framework is governed by a Service Level Agreement (SLA). This is a formal document that sets out the terms of participation.
What the SLA Covers
- •Framework fee structure and payment terms
- •Property standards and compliance requirements
- •Operator responsibilities and obligations
- •Framework services and support provided
- •Tenant referral and acceptance processes
- •Reporting and inspection requirements
- •Termination conditions and notice periods
Not a Lease
The SLA is not a tenancy agreement. You do not lease your property to the framework. You do not grant exclusive possession. You remain the owner and operator of your property. The SLA governs your participation in the framework as a service arrangement.
Duration and Exit
The SLA specifies minimum commitment periods and notice requirements. Terms vary by property and are agreed before you join the framework. Exit provisions are documented clearly.
What This Arrangement Is Not
To avoid misunderstanding, it is important to be clear about what this framework is not.
Not a Rent Guarantee
This is not a guaranteed rent arrangement. You are not promised a fixed income regardless of occupancy. If rooms are empty, you receive no income for those rooms. Your actual earnings depend on how well you fill and retain tenants.
Not Rent-to-Rent
This is not a rent-to-rent arrangement. No third party leases your property from you. No one takes exclusive possession. You remain the operator with full control over your property and its management.
Not Property Management
The framework does not manage your property. It does not handle maintenance, tenant issues, or day-to-day operations. Those responsibilities are yours. If you want someone else to manage your property, this is not the right arrangement.
Not a Passive Investment
This framework requires active involvement from you as the Operator. You must manage tenants, handle maintenance, and maintain compliance. It is not designed for landlords seeking a completely hands-off arrangement.
If you are looking for a different approach that suits landlords wanting to step back from operations, this framework may not be the right fit.
Is This Right for You?
This framework is designed for specific landlord profiles. It suits some situations well but is not appropriate for everyone.
This framework suits landlords who:
- •Already manage HMOs or are willing to do so
- •Are comfortable with hands-on property management
- •Want higher yields than standard private letting
- •Prefer government-backed payments over tenant affordability risk
- •Want exemption from LHA caps
- •Are prepared to work with supported housing tenants
This framework is not for landlords who:
- •Want someone else to manage their property
- •Seek income regardless of occupancy
- •Are unwilling to handle tenant issues directly
- •Want a passive investment arrangement
- •Plan to sell the property in the near term
The framework is built for landlords who are already comfortable with HMO management and want to access higher yields through government- backed payments. If that describes you, this may be a strong fit.
Ready to Learn More?
Submit your property details for a suitability assessment, or book a call to discuss whether the framework is right for your situation.
No obligation. Initial assessments provided within 2 working days.
Related Information
Explore these pages for more detail on specific aspects of the framework.
Important Information
This page provides general information about the Exempt Accommodation framework. Individual circumstances vary and all arrangements are subject to property assessment and agreement of terms.
Income figures are indicative and vary by area and claimant type. Actual results depend on occupancy and your operational management. Void risk remains with the operator. This is not an income assurance arrangement.
All arrangements are documented through a formal Service Level Agreement. You should seek independent legal and financial advice before joining the framework.