Posts tagged landlords
Rosalind Renshaw from Property Industry Eye reveals all:
The Right to Rent scheme – by which landlords or their agents must check the immigration status of tenants and evict any tenant who does not have right to live in the UK – is likely to go live nationally by next April, and possibly much sooner.
There could be a phased roll-out across England from this autumn onwards.
Landlords – and presumably their agents – who do not comply face fines or prison sentences of up to five years.
The eviction of illegal tenants will be abrupt, and without having to go through court.
It would follow the issuing of a notice by the Home Office when an asylum application fails, confirming that the tenant no longer has the right to rent.
The Government is expected to enact new criminal offences as early as next month. Normally, measures enacted in September come into force the following April. However, in view of the crisis in Calais, sources say there is speculation that ministers could decide to bring implementation sharply forward.
Greg Clark, the communities secretary, said the legislation will also create a blacklist of persistent rogue landlords and letting agents to allow councils to know where to concentrate their enforcement action.
“We are determined to crack down on rogue landlords,” said Clark.
There will also be measures to prevent the letting out of sub-standard properties.
The new measure looks to be controversial.
The pilot scheme in the West Midlands has been running only since December and awaits evaluation.
In the pilot, there is no criminal penalty, with civil sanctions of up to £3,000.
Also in the pilot, landlords are able to assign Right to Rent responsibilities to their agents, and it is thought that this same system will continue in the national scheme.
The new clampdown is already raising fears that landlords and agents will simply discriminate against certain types of prospective tenants – including those with a right to live in the UK.
The Joint Council for the Welfare of Immigrants said that the pilot has shown serious shortcomings, with British people who have foreign accents finding it difficult to find somewhere to rent.
Lawyer and policy director of the Residential Landlords Asociation David Smith told the BBC’s World at One that there was evidence that landlords in the pilot were reluctant to let their properties to anyone without a valid passport.
He said: “This means that huge segments of the population, including genuine UK national who do not have passports – of whom there are many – are being excluded.”
There are also accusations that the Government is guilty of a knee-jerk reaction to the Calais crisis.
However, David Cox, managing director of ARLA, said: “ARLA believes that the measures announced by the Government today are a good first step and we welcome the proposals in principle.
“The plans will help to weed out the minority of rogue landlords who exploit vulnerable immigrants for their own financial gain and, with the introduction of a new five year imprisonment penalty, will help to deter other such unscrupulous individuals from entering the private rented sector.
“The proposals also build upon the Right to Rent checks as imposed by the Immigration Act 2014.
“We will be organising training sessions for our members to ensure they are fully prepared and understand the new rules and we urge all letting agents to ensure they are ready for the impending roll out.”
Here Endsleigh offer some pointers with regards to tenant landlord relationships:
In our recent research into the private rented sector, we discovered that more than a third of UK landlords have given their tenant a welcome or farewell gift. Having surveyed more than 2,600 UK landlords and tenants, we found that 34% have presented their tenant with a gift such as a bottle of wine, while 30% of tenants have received an act of kindness, such as help with DIY or a break from paying rent.
The research is part of our 2015 ‘Better Relations’ campaign, which aims to encourage stress-free lettings for both tenants and landlords. So what sorts of gifts have been given by landlords?
- Sarah, a tenant in Berkshire: “My landlord offered to decorate when we were expecting our baby.”
- Anna, a landlord in Kent: “I provided starter kits of cutlery, pots, glasses, mugs, tea and biscuits and some cleaning things.”
- Derek, a landlord in Perth and Kinross: “I collected the tenant from the airport when they flew in from Australia.”
- Wanda, a landlord in Fife: “I put credit on the electricity meter to get the new tenants started when they first moved in.”
- Tom, a landlord in Oxfordshire: “I gave my tenant a rent holiday during a period of unemployment.”
- Alison, a tenant in London: “My landlord gave us a bottle of wine when we moved in, as well as a roll of toilet paper in the bathroom.”
- Pam, a tenant in Cumbria: “My landlord paid for half of our Sky connection.”
The results of the survey demonstrate that the giving of gifts has an impact on the relationship between a landlord and a tenant. In fact, nearly three quarters of tenants who had received an act of kindness from their landlord said this positively changed their perception of them. A positive relationship seems to have an impact on the length of tenancy too; 70% of tenants who have received an act of kindness stay in their property for 24 months or more, compared to just 53% who haven’t. For more information on how you can foster a better relationship with your tenant, which can lead to longer, happier tenancies, keep your eyes peeled for useful tips and insight on Talk Lettings.
Source: Endsleigh Insurance Services Ltd https://www.endsleigh.co.uk/talk-lettings/better-relations/2015-mar/how-to-build-a-better-relationship-with-your-tenant/
Gov.uk have posted an article regarding potential changes to installing smoke and carbon monoxide alarms within their rented properties:
Landlords will be required by law to install working smoke and carbon monoxide alarms in their properties, under measures announced by Housing Minister Brandon Lewis today (11 March 2015).
The move will help prevent up to 26 deaths and 670 injuries a year.
The measure is expected to take effect from October 2015, and comes with strong support after a consultation on property condition in the private rented sector.
England’s 46 fire and rescue authorities are expected to support private landlords in their own areas to meet their new responsibilities with the provision of free alarms, with grant funding from government.
This is part of wider government moves to ensure there are sufficient measures in place to protect public safety, while at the same time avoiding regulation which would push up rents and restrict the supply of homes, limiting choice for tenants.
Housing Minister Brandon Lewis said:
In 1988 just 8% of homes had a smoke alarm installed – now it’s over 90%.
The vast majority of landlords offer a good service and have installed smoke alarms in their homes, but I’m changing the law to ensure every tenant can be given this important protection.
But with working smoke alarms providing the vital seconds needed to escape a fire, I urge all tenants to make sure they regularly test their alarms to ensure they work when it counts. Testing regularly remains the tenant’s responsibility.
Communities Minister Stephen Williams said:
We’re determined to create a bigger, better and safer private rented sector – a key part of that is to ensure the safety of tenants with fire prevention and carbon monoxide warning.
People are at least 4 times more likely to die in a fire in the home if there’s no working smoke alarm.
That’s why we are proposing changes to the law that would require landlords to install working smoke alarms in their properties so tenants can give their families and those they care about a better chance of escaping a fire.
Ensuring the safety of tenants
Other measures to support the private rented sector include investing £1 billion in building newly-built homes specifically for private rent, giving tenants support against rogue landlords and publishing a How to rent guide so tenants and landlords alike are aware of their rights and responsibilities.
The proposed changes to the law would require landlords to install smoke alarms on every floor of their property, and test them at the start of every tenancy.
Landlords would also need to install carbon monoxide alarms in high risk rooms – such as those where a solid fuel heating system is installed.
Those who fail to install smoke and carbon monoxide alarms would face sanctions and could face up to a £5,000 civil penalty.
This would bring private rented properties into line with existing building regulations that already require newly-built homes to have hard-wired smoke alarms installed.
And it’s in line with other measures the government has taken to improve standards in the private rented sector, without wrapping the industry up in red tape.
New regulations will be laid in Parliament to require landlords to install smoke and carbon monoxide alarms in their properties, and are expected to come into force, subject to Parliamentary approval, on 10 October 2015.
The allocation of funding to fire and rescue authorities to offer free smoke and carbon monoxide alarms to local landlords will be announced shortly.
The government’s Fire Kills campaign will be encouraging people to test their smoke alarms when they change their clocks to British Summer Time. The ‘Tick Tock Test’ campaign will run on radio, online and in the press from 16 to 29 March 2015.
See Fire Minister Penny Mourdant’s speech to the Local Government Association fire conference.
Here at iConn we’re proud to say that we are an ARLA agent. Here ARLA explain the importance of staying gas safe in this useful article:
What set’s ARLA agents apart from the competition is their high standards, professionalism and credibility. Gas Safety is a crucial thing for agents and landlords to get right if you’re to protect your tenants, avoid a PR disaster and worse, a potentially fatal accident.
Annual gas safety checks need to be carried out every 12 months by a Gas Safe registered engineer. Landlords or their agent must keep a record of the safety check for two years and issue a copy to each tenant within 28 days of the check being completed and issue a copy to any new tenants before they move in.
As part of their contracts with letting agents, many landlords will assign responsibility to their agent to fulfil the gas safety obligations of the contract, so it’s vitally important that you have a good grasp on when each of your properties anniversary falls. It is a criminal offence if you don’t comply with your legal duties under the Gas Safety (Installation and Use) Regulations 1998 and the HSE can issue a formal caution or decide to prosecute.
Help is here
One way for agents and landlords to dramatically minimise the risk of forgetting to schedule a gas safety visit or boiler check is to sign up to Gas Safe Register’s free reminder service. They will they email or text you when it’s time to get your appliances checked. This is a FREE service for landlords, agents or tenants to service their boilers on a yearly basis.
Gas Safe even provide a service for lettings agents or landlords with multiple properties, which allows you to do bulk uploads of properties. Once you’ve uploaded them once with basic details including the month which a check is due, they will do the rest! All you need to worry about is choosing a Gas Safe registered engineer of your choice when the time comes to complete the work!
So what are you waiting for – STAY SAFE and take a load of your mind and make – get proactive and !
If you’re not sure of your obligations under the Gas Safety (Installation and Use) Regulations 1998, HSE has free leaflets and a free Gas Safety Advice Line offering telephone help – 0800 300 363.
They also offer some great advice here: http://www.hse.gov.uk/gas/domestic/faqtenant.htm
See link for the gas map tool and reminder service:- http://www.staygassafe.co.uk
Rightmove have printed this relevant article taken from The Muney Advice Service, reminding Landlords to complete their tax return before the end of the month:
There’s more to being a landlord than collecting rental payments and deposits. Paying your tax is one job you really need to be on top of – and the clock is ticking.
You must complete the online tax return by 31 January (if you’ve not paid in another way by 31 October 2014) having registered for self-assessment by 5 October.
All landlords need to keep HMRC in the loop
You must inform HMRC as soon as you start renting out a property, even if you’ve not yet made any income from it. Once you have earned £2,500 in rental income, you may be liable to pay tax on it. Landlords whose properties generate more than this amount in rent each year must complete a Self-Assessment Tax Return.
How you can reduce or avoid a tax bill
The amount of tax you pay depends on the type of property you are renting out and your personal circumstances. The tax obligations are different for each of the three categories – residential properties, furnished holiday lets and commercial property.
As a buy-to-let landlord you – or your company – pay tax on any profit you make from renting your property to residential tenants. This means you don’t pay income tax on what are known as allowable expenses – and there are plenty of these to get your teeth into. For example, you can claim back letting agents and accountant’s fees. Maintenance and repairs are also covered, as are buildings and contents insurance premiums.
Keep a record of your property-related outgoings
There are plenty of elements to renting out property that you need to keep a record of, including Council Tax bills, any utility bills you pay on the rented property and other direct costs like advertising and phone calls to tenants. Even so, it’s probably best to seek professional advice when calculating tax obligations and allowance expenses. The HMRC Self-Assessment helpline can be reached on 0300 200 3310 if required.
What you can’t claim for
You can’t claim for capital expenses such as buying the place or renovating it, but can lodge a claim for wear and tear. Be aware through that excessive claims will be scrutinised, so don’t think the tax office will automatically claim for the cost of a new bathroom suite or a plush kitchen. HMRC allows you to claim up to 10 per cent of the net rent as a wear and tear allowance if you provide a furnished flat or house, but make sure you have the receipts to hand.
Cheap rentals and HMRC
Even if you don’t earn £2,500 a year from your tenants – after considering all the costs you can claim to reduce tax – you still need to keep HMRC in the picture. They will be able to help ensure you tick all the right boxes as a landlord. You can also visit the Money Advice Service’s guide on your responsibilities as a buy to let landlord for more information.
Source: Rightmove, on behalf of Money Advice Service http://www.rightmove.co.uk/news/articles/buy-to-let-landlord-dont-forget-your-january-tax-return
Sam Macdonald, Lettings Negotiator of iConn Property Management writes;
Information to landlords – iConn have noticed a rapid change to the student market this year which has been an accumulation of increased University accommodation, high University fees and a considerable reduction in UK and International students applying for places; which in turn has produced an unexpected high level of properties left on the market.
Normally at this time of the year most of our student properties have been Let for the next academic year.
We have been in discussions with other local agents whom are experiencing the exact same scenario and are looking at ways to attract those students that are still looking for accommodation.
What we are proposing to do is to reduce our administration fees for the students; making it more affordable for them at the start of the application process. A further option is to adjust the rental figure in order to become more competitive.
There will of course still be students that have not secured a property as of yet and those students that will come through the clearing process later in the year once their course has been confirmed.
We do not want to alarm you at this stage; however the purpose of this letter is to forewarn you of the situation and to agree a plan of action now in order to secure a tenancy going forward.
We would normally advise our Landlords to increase their rental income but with the high level of stock still on the market, an alternative solution must be found in order to secure you revenue for the next academic year.
If you would like any further information regarding this, please feel free to contact our office on 01227 765008.
Sam Douglas, Accounts co-ordinator for iConn Property Management writes;
I came accross an article from LetRisks which I think may be an interesting an useful read.
Important safety alert
In a recent claim a landlord suffered over £100,000 worth of damage to his property and loss of rent following a fire from a faulty fridge freezer. This case highlights the number of potentially dangerous brand new appliances in rented property and the action that letting agents can take to protect their landlords and tenants.
Over the past few years there have been hundreds of fires involving white goods, particularly fridge/freezers, tumble dryers and dishwashers, with more than a dozen blazes deemed “serious”. According to recent press articles, almost half a million potentially dangerous dishwashers are still being used in households because their owners cannot be traced. As an example, a batch of faulty Bosch dishwashers, made over a seven-year period, are at risk of catching fire. Just one in four has been traced.
Although manufacturers issue product recalls, via national advertising, letters and phone calls to consumers there are difficulties in tracing the purchasers, particularly if tenants have moved address or landlords have appointed an agent.
The Electrical Safety Council (ESC) found that the average success rate of recalls is just 10-20%. With 266 electrical product recalls in the last six years and manufacturers often producing hundreds of thousands of units, there are likely to be millions of dangerous products threatening safety every day. Following a survey, they claim that 2 million adults have purposefully ignored a product recall notice, a third won’t return an item if it seems too inconvenient and a fifth would not go without a luxury product such as a television or hair straighteners.
LetRisks has put together a checklist to help you protect landlords and tenants:
- Register your contact details with the manufacturer for any new appliances when purchased. This is not just for marketing purposes – it may save a life.
- Property management staff and inventory clerks should record the make and model numbers of each of the landlords appliances and check them against the Product Recall information websites (see below).
- Ensure that appliances are checked regularly: The law surrounding Portable Appliance Testing (PAT) simply requires you to ensure that their electrical equipment is maintained in order to prevent danger. New equipment should be “supplied in a safe condition”. The Health and Safety Executive (HSE) provides guidance on how to maintain equipment including the use of PAT.
- Remind tenants to check that any electrical appliances are safe and refer them to the Product Recall information websites. It is a condition of most tenancy agreements that the tenant must not bring on to the premises anything that might be a fire hazard.
- Retain forwarding addresses for tenants and arrange for mail to be forwarded, if possible. It may include product recall information.
- Use the Product Recall information websites (see below)
- Electrical Safety Council (ESC): www.esc.org.uk/recall. You will need to enter a model number, brand name or description of a particular item. If the product has been recalled, the website will advise on next steps.
- RecallUK is the primary product recall site that lists all UK product recalls, for all product types, announced in the last few weeks: www.recalluk.com/default.aspx
- White Goods Help – Archives for Safety Warnings & Appliance Recalls: www.whitegoodshelp.co.uk/category/safety-warnings-recalls-houshold-appliances
- Arrange appropriate insurances, for both the structure of the building (that includes fixtures and fittings), and contents. Make sure that the insurance is suitable for let property and includes Property Owners Liability. Even if you are letting an unfurnished flat, we recommend that you arrange cover for limited contents (covering carpets, curtains and white goods) which will also come with cover for liability to the public and injury to tenants.
Iris O’Connell, Managing Director of iConn Property Management writes:
I am writing to advise you of a Government initiative which takes effect from January 2013.
In order to detail and explain the initiative clearly, I have taken abstracts from literature from The Department of Energy & Climate Change for your information.
The Green Deal is a government initiative to improve energy efficiency in UK households; its aim is to encourage people to make their homes more energy efficient in a cost effective way. The scheme will be available to home owners and tenants (with the consent of their landlords) and has also been extended to businesses.
The scheme lets customers pay for some or all of the improvements over time through their electricity bill. A home assessment will be undertaken by a Green Deal assessor who will create a report recommending the best improvements to minimise the utility bills in your home. If you are interested, you will be able to choose a Green Deal provider who will offer you a quote for a Green Deal Plan and access to the finance. The financial package is not a loan; although interest is added to the final total. The debt is attached to your property rather than you or the tenant, so it will not be means tested, therefore credit checks will not be undertaken.
In order to have any improvements undertaken, the improvements must be eligible under the Green Deal and recommended for your house following your home assessment. These measures will be expected to be able to show real savings over the repayment period. This is the Golden Rule of the Green Deal which states that the expected savings made from the home improvement must be the same or greater than the total cost of implementing the improvement itself. This rule protects the property owner, ensuring that they are not paying back more money as a result of the Green Deal scheme than they are actually saving on their energy bills.
Once the home improvements have been undertaken, the Green Deal will be paid back in installments attached to the electricity bill. The repayments will be affordable to everyone as they will be based on the savings made by the household as a result of the new home improvements.
In order for the home improvements to be beneficial, the Golden Rule states that you should not be paying more money on your repayments than you are saving on your utility bill. For example, if you have had new insulation fitted, and this gives you a saving of £25.00 on your heating bill each month, then you will be expected to pay less than £25.00 on your repayments.
Additionally, the length of time for the repayments should not exceed the expected lifetime of the home improvements itself. For example, if solar panels were to be installed and they have an expected lifespan of 30 years, then the repayments should not last any longer than 30 years.
Your tenant needs your permission before taking out a Green Deal. If your tenant wishes to take out a Green Deal Plan, they will first need your agreement to both the improvements and the financial aspects of the plan, If you do not agree to all, some or any of the assessors recommendations; the tenant is not permitted to proceed.
Click on the link for the official brochure provided by The Department of Energy & Climate Change for a comprehesive guide:
If you require any further information, please feel free to contact me.
Vicky Cranthorne, Office Manager from iConn Property Management writes:
Our friends from Propertyads have provided us with their top tips for Landlords – Hope you find them useful.
Top tips for landlords considering buy-to-let properties
Buy-to-let properties can be an excellent way to supplement your income or your pension, and a little research and a bit of clever property market know-how can help you make the most out of your buy-to-let property. So if you’re considering adding a little extra to your pocket each month, here are our top tips for potential landlords looking at getting into buy-to-let properties.
1. Investigate the best area for good investment Before you buy a property, you have to think about what kind of tenant you want, and where you want to buy. Your rental property doesn’t even need to be in the same city! For example, buy-to-let properties in Sheffield and Canterbury, student cities, are a great investment. Each year new students arrive to study, and each year they need additional accommodation. Investing in a student area is an excellent idea when you’re looking for almost-guaranteed income. Much like student rental properties, investing in a business-oriented city near a financial district such as Canary Wharf in London will be a costly venture, but will also help you to secure a tenant relatively easily.
2. Decorate for demand to cater to your tenants Decorate and furnish your home according to your ideal tenant’s requirements. If you’ve bought a buy-to-let property in Canterbury, for example, make sure that each bedroom is furnished with a bed and a desk to allow multiple students to rent out the rooms. A large living room and plenty of storage space in the kitchen are also preferential, so make sure you don’t clutter it up with unnecessary décor.
3. Plan for empty flats As a landlord with a buy-to-let property, it’s important that you make financial provision for empty flats. If you’re unable to find a tenant you will still need to make mortgage repayments. Make sure you have access to funds if you need to do this. Another option would be to sign with a rental agency that guarantees rentals for your flats so that you’re always covered, or take out an insurance policy that insures you against non-payment of rent during a rental agreement.
4. Write in increases to your tenancy agreements and set up a direct debit Make sure that you write in annual increase agreements in your tenancy contracts to make the most out of your rental property. Setting up a direct debit agreement will guarantee the rental income on a particular day (instead of collecting funds on different days each month when the tenant remembers to pay)
5. Protect your property with insurance Landlord’s insurance can help you protect yourself against unpaid rental, theft by tenants, or damage to a property due to tenant negligence or weather damage. A good insurance policy is a good investment when you’re in the landlord market to make money out of your buy-to-let property – especially if it is situated in a different city to your own residence
If you are looking to grow your portfolio or first time invest into the property market in the Canterbury area please contact us for free independent advice.
We have been using iConn Property Management Ltd for the past three years. We have always found the staff incredibly helpful with all enquiries we’ve had.
They provide a very professional and friendly service. If ever we have a problem or issue it is always resolved in a matter of hours where other agencies in the past have taken much longer even to acknowledge the issue. Having built up a rapport with the staff, it makes it easier for all when looking for a new property as the team already know our likes and dislikes.
We have always received a quality service from iConn. They care about you, your situation and how you want to live, they don’t just forget about you when you sign the contract. We would recommend them to anyone looking for a Property Management / Lettings company
We have 2 properties which have been let by iConn since around 2005. I only have positive words to say about iConn, the staff that we have contact with (namely Vicky) is always helpful, friendly and efficient. Any problems have been dealt with professionally and swiftly and therefore we have the utmost confidence in them. I also know that they are helpful to our tenants. We have the pick of lettings agents here in Canterbury, but as we receive such an excellent service, I have no reason to move my business elsewhere – a completely satisfied customer on all counts!
The service level of iConn in terms of professional communication on all matters from tenancy agreement, proactive property inspections, quotations for works required etc. and looking after the landlords interest as if the property is their own is better than I have experienced from any other letting agent. With iConn’s managed services package I’m confident our properties are in good hands and therefore have not had to visit our properties that are managed by them for the last 8 years.
iConn Property Management have always provided a top quality service, I have let my property through them for over four years and I hope there will be many more years to come. They maintain an honest approach and always keep my informed as to the progress of letting my property. Over the four years there has never been a void period and this is down to hard working fully trained staff and quality marketing. I will certainly not be using any other agent and would recommend iConn to any Landlord.
Vicky Cranthorne, Office Manager for iConn Property Management writes:
EPC legislation changes – April 2012
The DCLG (Department for Communities and Local Government) have proposed changes to the legislation regarding energy performance certificates (EPC’s) for properties are due to come into force on 6th April 2012. This is the legislation that was originally due to be implemented last October but was subsequently delayed and revised.
In simple terms it will mean that instead of just advertising the graph images on the property advert we will need to include the first two pages instead. It will mean that we must hold the full certificate on file for the property and not just the numbers on the graph. It is also mentioned that the EPC graphs must now cover any outbuildings included in the tenancy and not just the main property.
Key points in the new legislation:
- This only applies to properties coming to market after 6th April.
- The current asset ratings (EPC graphs) are no longer applicable in isolation. They are to be replaced by the first page of the new style EPC (typically an A4 document which contains the graphs and additional information).
- The EPC legislation is extended to apply to non-residential and rental transactions.
- Where property marketing does not include the full property address the legislation does allow for the address to be redacted in the EPC used for marketing purposes. It is still required on the full EPC document. NB. Although this is clearly indicated in the legislation, there is currently debate as to whether this only applies to commercial properties.
- Note: At this time of writing the format of the revised EPC is still subject to approval and release by DCLG.
- Further to this, we have gained confirmation that:
- The EPC does not have to be an integral part of the printed particulars. It can be provided as an attachment or insert.
- If sending details electronically as an attachment, the EPC can be provided via a clickable url.
For the majority of clients this is not a major issue they will need to be concerned with and more impacts the way the agent advertises but we will advise all clients who the legislation effects.
Vicky Cranthorne M.A.R.L.A, Office Manager for iConn Property Management writes:
When tenants view a property to rent if a telephone socket is visible or advertised as available then the landlord has a responsibility to ensure it is in working order. This means that the physical lines and wiring into the property are in place.
It is a tenants choice as to whether they wish to have a working line during their tenancy. If you do require a telephone line then it is their responsibility to pay for any set up fees that may be applicable to have a working line as this is the tenants account set up fee.
Most telephone line providers have a general rule that if a line is not used for longer than a month they will disconnect it from the exchange and allocate the space to someone else. This means that if the previous tenants choose not to have a line, or used a different provider to the one the tenant would like to use, there is a high chance that the provider will charge the tenant to reconnect the line to the exchange.
Iris O’Connell M.A.R.L.A, Managing Director for iConn Property Management writes:
♦ Make sure you opt for the best Buy To Let Mortgage rate.
♦ Talk with local letting agents and use their local knowledge to ask for advice. They will advise you what areas are popular with a certain type of tenant. Which type of property will be suitable for the type of tenant you are looking for and what type of property to purchase to ensure you get the best return for your money. They will also advise you what rental levels you would hope to achieve from certain properties in different local areas. iConn is a local letting agent with years of experience and local knowledge. Call us for free helpful advice.
♦ Make sure that there is a demand for the certain type of property you want to invest in. Again ask your local agent for an insight into the local market. A member of staff at iConn will be happy to help you with any advice you may seek.
♦ Research properties on property portals like Right Move or Property Live. You will see what is currently being marketed and for what rental levels. Study the market thoroughly before you buy!!!
♦ Make sure that you are aware of the cost of fully insuring your property. This will include building Insurance, contents insurance and public liability cover. iConn can arrange this for you.
♦ If you are looking to furnish the property, furnish it according to what type of tenant you require. Furnishings for a student property will be different compared to a property a family will rent.
♦ Decorate it and repair it to a high standard; the better its condition, the higher the overall yield.
♦ Consider using an Agent to manage the property. iConn offers four levels of service. Contact us for further details.
♦ Always understand your legal obligations as a Landlord. Be realistic in understanding that your tenant will expect you to repair, replace and maintain as and when necessary.
♦ You will be expected to follow council requirements and housing law. It is also essential that you provide all necessary safety documents; e.g. Gas safety certificate.
♦ Understand your financial limits. Do not purchase an investment property if the rental level achievable just covers your mortgage repayment. What happens if you have an unexpected boiler break down? Will you have enough money in the pot to make repairs as and when required? What happens if there is a rental void period? Do you have a contingency plan for any such an event? Be realistic about what you buy, the level of mortgage compared to the level of rent achievable and the condition of the property.
Vicky Cranthorne, Office Manager for iConn Property Management writes:
The local Canterbury City Council are due to make a decision to introduce a policy from December this year regarding planning permission required for HMO Properties (Houses of Multiple Occupancy).
If the policy is introduced in December it will only really effect Landlords looking to invest into the student market. If the property the landlord purchases is already rented in a student or sharer capacity then they do not need to do anything BUT if the landlord purchases a property with the intention to rent to students or sharers and it is not already being rented this way they will need to apply for planning permission from the council for a “change of use”.
In principle the council are looking to regulate the amount of HMO’s in Canterbury in order to not flood certain areas of the city and to keep the neighbourhoods diverse.
From past experience I would say that the timescale for obtaining the permission could be lengthy and as the permission is not a guarantee could be risky for new landlords and obviously i’m sure there will be costs involved!
There are some interesting points raised on the Councils website from local residents and businesses, both for and againist and further information can also be found on the website:
Here is a snippet from this page:
The Article 4 Direction, which requires planning permission to be obtained for the change of use of residential dwellings (Class C3) to Housing in Multiple Occupation (HMOs)(Class C4), has been consulted on for a period of 6 weeks, (from 9th December to 21st January 2011), and people were invited to comment on the Direction. Once comments on the Direction have been considered, the Council will have to decide whether or not to confirm the Direction.The Article 4 Direction applies to the urban area of the City of Canterbury, and the wards of Sturry North, Sturry South, Barton, Wincheap, Blean Forest, and the parish of Harbledown and that part of Lower Hardres parish to the north of the A2.The Council recently consulted on a draft supplementary planning document relating to HMOs, and the comments received in relation to the SPD will be considered by the Council in due course. The making of the Article 4 Direction will not affect the Council’s consideration of those comments, and there may be amendments to the draft SPD. The Article 4 Direction simply provides the framework in which an SPD can be implemented.
We have been delighted with the service we have received over some years. The
propertry has never been vacant and the tenants are well screened. Any problems are dealt with quickly
and at a reasonable cost. We have other properties in West London and the iConn service
completely eclipses the management services we have had there from well-known names.
Keep up the good work!
iConn has an extensive portfolio of professional and student properties. We offer competitive services to all Landlords who are looking to let their properties now or in the future. If you would like further details on the services that iConn provides or require a free market appraisal then please contact us.
Lee Court, 26a Castle Street,
Canterbury, CT1 2PU
Vicky Cranthorne M.A.R.L.A, Office Manager for iConn Property Management writes:
This incident stresses the importance of landlord’s responsibilities to their tenants. Landlords sometimes feel that they are saving costs by not using a professionally qualified agent; however they are there to advise landlords and prevent being liable for this kind of thing.
Landlords!! Ensure that a CP12 Landlords Gas Safety Certificate is carried out by a qualified GasSafe engineer. This should be in place before your tenant moves in and checked on an annual basis.
We also advise that an electrical safety certificate is carried out by a qualified electrician; this should include an annual test of all portable appliances.
We would advise all tenants to only consider renting a property that is marketed through a regulated agent.
iConn Property Management are happy to advise any landlords or tenants on their legal obligations, duties and responsibilities.