Emergency property issues aren’t good for tenants or landlords, and the best way to safeguard against these potential nightmares is to take preventative measures before they arise. Then you can sleep soundly at night in the knowledge that you have done everything you can to drastically decrease the odds of a costly, dangerous, or life-threatening emergency. 

 

Carry out these safety checks regularly 

 

Gas: A Gas Safety Certificate is a legal annual requirement. It's perhaps the most obvious and well-known of all home safety certificates, but it's less known that it applies to all gas appliances, not just your gas boiler. 

 

Electrical: All fixed electrical appliances need to be inspected and tested every five years by a qualified electrician. 

 

Don’t forget the fuse box: If you are letting your property, you might find that the existing fuse box is obsolete and does not meet current safety standards, so it's best to check this with a qualified electrician. 

 

Smoke alarms: It's not expensive, and it's a legal requirement that there's one installed on every floor. The potential damage caused without them can be catastrophic, cause death, and if fitted and not correctly maintained, can affect insurance coverage. 

  

Plumbing 

 

Drains: Blocked drains cause flooding, which in some cases leads to costly repairs and uninhabitable homes. Prevention is simple – all you need is a bottle of drain cleaner, which you can buy from any supermarket. 

 

Pipes: Insulating pipes is another inexpensive way to prevent a potentially hugely costly disaster. In winter, pipes contract in the cold and then heat up once in use. This repeated process can cause them to crack, leading to an even bigger leakage of money! 

  

Regular inspections 

It’s always a wise move to have a clause in your tenancy agreement that, with written permission requested, you can inspect your rental property within 24 to 48 hours. You can’t legally enter the property without the permission of the tenant, and this allows you to regularly check the state of your property should you feel the need to do so. 

  

Landlord insurance  

Differing greatly from conventional house insurance, a private residence policy will not cover you if you let your property. A good landlord insurance policy is worth every penny in the face of devastating risk; it covers damage, loss of rent, and legal expenses, plus almost anything else you feel could be a risk. A good conversation with a reputable insurance company is time well spent in order to find the right level of cover to protect your investment property. 

  

Make it happen 

Taking these measures now will keep your rental property safe and keep you informed of any maintenance or repair issues that may be on the horizon before they become major issues, so in terms of investment, they are no brainers! The good news is that all of this can be carried out by professionals, from insurance brokers, gas engineers to electricians. Getting in touch now with the right people won’t take long and could save you a lot of money! 

  

Need help finding the right tenants for your property? Contact us today. 

 

Becoming a landlord for the first time is an exciting prospect. There is money to be made if you get it right, but there are plenty of costly pitfalls lurking if you get things wrong, so be prepared to do a good amount of research so that you can protect your investment.  

 

Here are all the key things you’ll need to know... 

 

Your property 

 

Decide what type of property you are going to let. Are you letting your own house? Perhaps you are looking at buying a new-build apartment or flat, which will afford you lower maintenance costs over the years. A student house will not require much in the way of good schools and other facilities if you plan to let to young families.     

 

The right mortgage 

 

If you are starting from scratch and buying a rental property for the sole purpose of letting, you will need a buy-to-let mortgage. The deposits for these mortgages are much higher than a conventional mortgage with a minimum deposit of 25%, and up to 40% for more competitive interest rates.  

 

If you plan on renting your existing home there should be no need to re-mortgage, however you must inform your mortgage provider to seek permission to let your home.  

 

Know your responsibilities  

 

This is the big one, being a landlord comes with many legal and moral responsibilities, the good news is that many of these legal requirements will protect you as well as your tenants.  

 

Deposits  

 

When you let your property and take a deposit you are required to protect it, there are a few ways you can do this from government-backed schemes, insurance schemes and letting agents.  

 

Contracts 

 

You will need to create a contract between you and your tenants, setting out the terms of the rental agreement, covering notice periods for eviction, property inspections and who is liable for repairs and certain contents if let as a furnished property.    

 

Right to rent  

 

Just as employers need to take the necessary right-to-work checks, as a landlord you will need to check that your tenants have the right to rent in the UK.    

 

Landlord license  

 

In some instances, you need to apply to your local council before you let the property.  

  

Safety  

 

Apart from gas, water and electrical checks and certificates, consider smoke and carbon monoxide alarms. Perhaps lesser known is the legally required EPC - Energy Performance Certificate. You will be responsible for structural repairs, and the responsibility of making sure the property is safe to live in belongs to you. 

 

Making a profit 

 

You may have heard the term rental yield, what is it? How is it calculated?   

 

Rental yield refers to the level of profitability of your rental property.   

 

To calculate rental yield, divide your annual rental revenue by the purchase price of the property. 

 

If you let your property for &500 per month and paid &100,000 to purchase the property.  

 

Divide 6000 by 100,000, multiply by 100 to get a percentage figure. 

 

The yield is this case is 6%. 

 

It’s generally expected a good rental yield is 5%, however much higher figures can be achieved!  

   

Letting agents 

 

If you are a first-time landlord a great route to take is to use a letting agent to take care of everything for you. There are different levels of service letting agents can provide. It could be that you hire a reputable letting agent to find your tenants with references, create a contract and secure the deposit while you take responsibility for maintenance or repairs.  

Many new landlords opt for a fully managed service. It will involve paying a little more commission on rent, but you will sleep soundly at night and should have more time to enjoy life! 

    

Insurance  

 

Having the right insurance will also help you get a good night’s sleep! 

 

Landlord liability insurance covers you against legal claims from injury to your tenants if you are found responsible, as with any insurance you can tailor your policy to suit your needs.  

Just as when you buy a house to live in, you will have to purchase building insurance before you purchase the property. Don’t forget contents insurance, particularly if you have let your property as furnished.  

 

Conclusion 

 

There is much to know and learn, so a good letting agent might be the best choice, just as finding the right property using a good estate agent makes life much easier.     

 

Looking for your perfect first buy-to-let rental investment property? Contact us    

 

 

 

 

 

 

 

 

At long last, the Renters Reform Bill was introduced to Parliament in May, but it has a long way to go before becoming law and is most likely to change and improve its proposals as it passes through the various stages of parliament.

What is the Renters Reform Bill?
The Renters Reform Bill was introduced to Parliament for its first reading on May 17, 2023. Its aim is to improve life for 11 million renters and 2.3 million landlords in the UK and is based on five years of research conducted with landlord and tenant groups.*

What does it mean for tenants?
Tenants can feel more secure with the proposed abolishment of Section 21. Protecting tenants from unfair evictions creates a more homely feeling and gives tenants real peace of mind. Renters will also be able to challenge landlords when it comes to providing good-quality homes. It's good news for your pets too, who will also have more rights than ever before.

What does it mean for landlords?
Section 8 will be strengthened, which allows landlords to end tenancy agreements early if they have good reason to do so. Despite the fears some have expressed about abolishing Section 21 - ‘no fault’ evictions, the reality is that it will make it easier for landlords to evict tenants for anti-social behaviour and repeated missed rent payments. While blanket bans on pets have also been proposed, with the new legislation in place, landlords can insist on their tenants' pets having pet insurance, certificates, and, in the case of dogs, being microchipped. Landlords will be able to increase rents, but the notice period to do so will be doubled.

Private rental property portal
This aims to help landlords have a better understanding of their legal obligations. This will define issues in compliance and improve the landlord-tenant relationship. Each party will know where they stand and be better informed of their rights, reducing confusion and potential conflict.

When will it come into effect?
With some predicting October 2024, there are many stages for the Bill to pass before it becomes law. The House of Commons has yet to complete the report stage and committee stage before having a third reading. Then the Bill will have to pass the House of Lords with the same five stages as the House of Parliament, and finally, after all of this, face amendments before gaining royal assent. This means that the finer details of the Bill could change before it becomes law, and the current proposals have a long way to go before they are set in stone.

The importance of a good letting agent
Ultimately, tenants want a great place to live and are entitled to feel secure and live in a property that is up to standard. Landlords need to protect their investments and their property. Using the right agent will mean that you, as a tenant, will only ever find property of a good standard and equally reputable landlords. As a landlord, using a letting agent means you will have the opportunity to let your property to reliable tenants thoroughly checked with references and with as many other letting management facilities as you require. So it’s in both parties interests to use a letting agent, making letting and renting a seamless and enjoyable process. Not to mention reducing the worries and risks for renters and landlords in light of the new reforms.

Whether you are renting or letting, contact our friendly team today so you can make the most of all your property plans.

GOV.UK*

 

In essence, a fully managed letting service simplifies your life as a landlord. Simply buy a property, then let your letting agent take care of everything else while you take a step back, enjoy your life, and get a good return on your property investment! Like so much in life, there is more to being a landlord than meets the eye.

So what does a fully managed letting service provide?
Making sure your property is fully compliant with legislation is in itself a huge benefit of a managed service. It’s imperative to get this right; otherwise, you could face fines. This will save you from constantly keeping an eye on the latest legislative changes along with finding tenants and other potentially stressful work that goes into being a landlord.

Advertising your property
This is important if you want the best possible rental income for your property. Getting the right advice will get your property in tip-top shape and looking its best with an established agent who will most likely have tenants ready and waiting.

Taking care of tenant viewings
Once your property is ready to be viewed, the last thing you want to do is spend your valuable time arranging viewings and showing potential tenants your property.

Finding your tenants and getting references
With the chronic shortage of rental properties on the market, there will be plenty of tenants who want to rent your property. You want to protect your investment, and you will need references—yet another layer of paperwork removed from your busy life.

Organising inventory
No doubt, even if you let your property as unfurnished, you will need an inventory of all items in the property that belong to it, and as such, you do not want them to go missing or get damaged.

The preparation of tenancy agreements and documents
You will need a good contract spelling out the terms of your rental agreement. This protects you and your tenant and is essential to avoiding disputes. It should include details such as the term of the contract, your name as the landlord, whether the rent includes bills or council tax, and more, and should be signed by you as the landlord and your tenants.

The registration of your tenant’s deposit
It’s a legal requirement to deposit your tenant's deposit in a government scheme within thirty days of receiving it.

Rent collection
This is important because, when all is said and done, you are letting your property to receive rent, and having a reliable collection service offers great peace of mind.

Property inspections
If you have good tenants, then this is not always essential, and you must give them twenty-four hours' notice before inspecting the property. Doing this yourself can be time-consuming and a little awkward.

Maintenance
This can be both time-consuming and costly. Sometimes just finding the right help to carry out repairs and maintenance and having the resources at your fingertips that a managed letting service provides can prevent simple issues from becoming expensive repairs.

Arranging notice and finding new tenants
The time will come when your tenants may want to move on. You don’t want your property sitting around gathering dust; you want tenants back in as soon as possible. Plus, there is the planning and paperwork involved in arranging a notice period.

Disputes and final inspections
This can get complicated, and having all the necessary steps in place prevents unwarranted disputes from occurring in the first place. And if they do occur, having an expert involved will stand you in good stead.

Get in touch today to see how we can manage all aspects of your buy-to-let property, so you can make the most of your property investment.

 

Summer is nearly here, and the opportunities to expand your property portfolio or take your first steps on the buy-to-let ladder are vast. So take a glance at some of the following great reasons why now is the time to make a great investment.

Demand is soaring
The demand for rented property is huge and continues to grow, with demand spiking by 250% above the five-year average per available rental home last year.* It’s old news and new news! The demand for rented property is huge. With people taking longer to get on the property ladder. Long-term demand due to the shortage of rental property will remain strong for a long time.

Rents are increasing
Your investment is secure. Rents have increased by 20% in the past three years, increasing by 11.1% in the past twelve months to March 2023.* The buy-to-let industry can be very lucrative, and with higher demand, higher rent revenues can be achieved. This allows you to invest in your property and meet legislative changes when it comes to making homes greener.

Buy-to-let mortgage choice is increasing
Expanding your portfolio can be easily financed. There are over 2,400 different mortgage deals available if you are buying a property to let!* So you have lots of options. There is talk of interest rates coming down, and while they are currently higher than they have been for the past few years, slowly but surely they are falling, which means you can expand using equity in your existing property to buy.

A bigger choice of properties
With some landlords retiring, there is a large choice of ready-to-let rental properties coming to the market. The standard of homes has generally risen, with many sprouting up for sale at this busy time of year. Many people put off moving in the latter part of 2022 and, during the pandemic, spent a lot of time and money getting their homes in tip-top shape. This means there have never been so many great houses on the market that are ideal for the rental market.

Greener, more energy-efficient compact homes
Renters are now more concerned about their monthly energy bills, and if your rental property is energy efficient, it will enjoy even more demand compared with less energy-efficient properties. Getting ahead of the legislation and creating greener homes is really just stepping into the future. So making your home more energy-efficient today will save you money tomorrow.

The age range of renters is changing
The population in the UK is ageing, and unlike the past, older people are renting now as much as younger people starting out on their property journey. This is yet another great opportunity to meet the demand for a niche in the market by targeting this sector.

Holiday lets
With so many tourists now travelling to the UK and so many people choosing to holiday at home, there is always great demand for holiday homes. And the good news is that you can charge a very healthy sum, which makes for a great investment.

Student sector
With more overseas students needing a place to rent, demand here has accelerated rapidly in recent years. This creates yet another opportunity among many to expand and launch your buy-to-let portfolio.

The property buying market
Homes are selling well right now, particularly smaller homes, but if you want to buy a bigger home in the current market conditions, you will have more scope to negotiate when making an offer. Larger properties are full of potential to earn great levels of rent revenue or could be developed into flats or smaller properties, increasing your rent revenue streams.

Get in touch to see how we can help create a property investment portfolio for a great return on investment.

Zoopla*

 

Average house prices in the UK have since the pandemic risen by £42,000.* The value of your home has increased rapidly in recent years, and this puts you in a great place even if there has been a bit of a slowdown, but then you could be forgiven for asking: What slowdown? House prices are stable and, at times, increasing, and to gauge the market by the unpresented growth in the past few years is a little unfair. Nonetheless, most of the value gained, or in some cases, the continued increase in value still exists as equity in your home. Even if you have lost a little value, you are still in a good place. A little bit of market cooling leaves more scope for getting your hands on the keys to a better home with a bigger discount without the frantic price bidding of past years.

The home improvement boom
It’s no secret that many homes had thousands spent on them during the pandemic. Many people, due to travel restrictions, chose to spend money on their homes instead of holidays. As a result, many homes are now in beautiful condition. Freshly decorated with external and internal renovations, resulting in homes with great work-from-home spaces and outdoor living areas that are ready and waiting to be lived in. This really does make a huge difference in the quality of your home and work-life balance. Homes with kitchens that inspire you, gardens that take your breath away, and bathrooms boasting cutting-edge design.

More mortgage choice
Mortgage choice is returning to the market, with thousands of options now available. So in essence, you will have a lot of decisions to make when it comes to what home you want and what mortgage you require. In many ways, all of this makes the prospect of moving very interesting compared with past years. Some home buyers are choosing to take interest-only mortgages, knowing they can overpay their mortgages, which releases some of the pressure on financial commitments.

Interest rates
Mortgage interest rates are falling, and the recent announcement of the IMF (International Monetary Fund) suggests that interest rates could return to pre-pandemic levels. ** The suggestion is that the high interest rates that many of us are paying at the moment are not a long-term deal. It could be the case, and it’s accepted by many analysts, that in the not-too-distant future, we will be paying less for our mortgages.

A bigger selection of homes
Compared to last year, the stock of homes for sale in the UK has been boosted by 60%.* The spring market is rapidly becoming the summer market. And perhaps the enticing thought of moving to a perfect home in time for summer is too much to resist for some home movers. As home movers take the plunge, they put their homes on the market, adding to the splendid choice for you to explore. The market is in a better place than last year in many ways, but at last you can enjoy it without being flustered by a frantic rush to get your hands on the home you truly love.

Start your search now and browse our properties.

Zoopla*
IMF BLOG**