Posts with tag: tenants

Serious rental arrears up by 13.8%

Published On: January 8, 2016 at 10:12 am

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A concerning new report has indicated that the numbers of tenants in significant rental arrears has risen significantly during the third quarter of the year.

The latest Tenant Arrears Tracker from estate agency pairing Your Move and Reeds Rains indicates that the number of tenants behind on rent has increased by 13.8% in the three-month period.

Behind

According to the report, there are now 84,200 tenants in excess of two months behind with rental payments, in comparison to 74,000 in the second quarter. Annually, this represents a rise of 13,2000 households, or 18.6% from the same period in 2014.

Historically however, the latest drop in arrears remains fairly mild and a long way below the 116,600 recorded in the second quarter of 2012. Worryingly, the figures for quarter three of 2015 represent the highest levels in more than two years.

Adrian Gill, director of estate agents Your Move and Reeds Rains, notes, ‘the chance of an individual tenant falling into serious arrears remains very low.’ He believes that, ‘in general, renting works for most people. Over the last decade the private rented sector has expanded at an unprecedented pace, providing homes for millions of households at the same time as absorbing the worst financial crisis in living memory.’[1]

‘In the current climate, optimism feels increasingly reasonable. Most households are beginning to earn more, the cost of living is stable and the chance of falling into unemployment is diminishing. For the majority of tenants, paying the rent is becoming easier rather than harder. But beneath this rising tide there are inevitably some households and individuals who are not yet feeling any new economic buoyancy. As others bid rents higher there will be a minority who are still struggling to keep up. Landlords and tenants have a mutual responsibility to be aware of this small but significant risk,’ Gill continued.[1]

Serious rental arrears up by 13.8%

Serious rental arrears up by 13.8%

Evictions

Higher levels of serious rent arrears are yet to be mirrored by rates of eviction. The Tenant Arrears Tracker shows that in the third quarter of 2015, there were 26,712 court order regarding the eviction of tenants. This was 4.3% less than in the second quarter of the year, where eviction orders totalled 27,909.

In addition, there were 7.8% fewer evictions than at the same time in 2014, where the total stood at 28,959.

Gill continued by saying, ‘landlords and buy-to-let lending have been targeted from a variety of angles in 2015-under a harsh political spotlight, subject to new taxes and freshly scrutinised by regulators. There could be a real debate about the role of landlords and indeed the urgent need for more investment to keep up for demand for homes to rent. However this should be done constructively-and any worriers about the financial health of landlords should consider the reality of buy-to-let mortgage arrears at record lows.’[1]

‘In the context of resurgent tenant arrears, landlords are the buffer delaying a parallel peak in evictions. And healthy landlord finances make that tolerant approach more likely. So while penalising landlords may win easy political points, making investment in new homes to let harder could be counterproductive-especially in the face of new challenges,’ he concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/serious-rent-arrears-up-138.html

 

New survey shows tenants’ top wish for 2016

Published On: January 6, 2016 at 11:24 am

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An interesting new survey has given landlords food for thought when considering their home improvements for 2016.

PropertyLetByUs questioned tenants on their main priorities for the new year. One-fifth replied by saying that cost-effective central heating is an absolute must.

Warm

A large majority of tenants said that they felt concerned over keeping their properties warm and damp-free over the coming months. In excess of 80% said that double glazing was their top priority for the next rental property.

In general, UK homes are some of the most expensive to heat in the whole of Europe, according to official EU figures. Estimates suggest that over 10m British families currently live in a property with a leaking roof, damp walls or rotting windows. Older, single glazed homes bring with them more chance of condensation and mould.

Jane Morris, Managing Director of PropertyLetByUs.com noted, ‘it is estimated that around one million tenants are paying as much as £1,000 a year more for heating than the average annual bill of £1,265. These excessive costs are mainly down to poorly insulated homes, many of which are thought to be the oldest and leakiest rental properties in Europe.’[1]

New survey shows tenants' top wish for 2016

New survey shows tenants’ top wish for 2016

Demand

Morris continued by saying, ‘clearly, double-glazed properties are highly sought after by tenants and landlords that offer this will be in large demand. However, landlords that are offering draughty, damp accommodation should not delay in improving their properties, as new legislation will see landlords banned from renting out England and Wales’ draughtiest homes from 2018, in a bid to cut energy bills and carbon emissions.’[1]

‘Landlords with properties rated F and G will be unable to let them out from April 1st 2018. The regulations also mean that from 1st April 2016, tenants living in F and G rated homes will be able to request improvements, such as more insulation. The landlord will then be legally bound to bring the property up to a E rating. As a matter of urgency, landlords that are currently renting out F and G rated properties should be reviewing the improvements that can be made together with researching costs and available help, through the Government’s Green Deal,’ Morris concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/what-is-the-top-priority-for-tenants-in-2016.html

 

 

Property damage costs landlords £4.5bn per year

Published On: January 5, 2016 at 2:00 pm

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Latest figures have indicated that landlords in Britain shell out a huge £4.5bn per year to fix property damage caused by their tenants. In addition, rent arrears account for around £900m per annum in costs.

Data from research conducted by TDS suggests that thousands of landlords are faced with property damage at the conclusion of a tenancy agreement. The most-common issues are broken appliances, damage to carpets and unauthorised decoration.

Disputes

According to statistics from the report, damage to property amounts to 56% of all deposit disputes. What’s more, TDS reports that 19.2% of all disputes raised resulted in 100% pay-out to tenants. On the other hand, 19.8% of deposit disputes saw landlords and agents paid out in full. In the remaining 61% of cases, monies were split between the different parties.

Founder and CEO of Imfuna Let, Jax Kneppers noted, ‘many landlords feel tenants are not held to account when damage is caused and that there is little they can do to protect their property. Furthermore, landlords have a poor record in winning tenant dispute cases.’[1]

Kneppers believes however that, ‘this could be changed dramatically if they ensure a few simple procedures are put in place at the start of a new tenancy agreement. For example, ensuring there is a fair contract in place for a new tenant along with a thorough and detailed inventory, will enable both parties to be treated fairly and reasonably. Time and time again, landlords are losing disputes because they’re not providing the right evidence to show that a tenant has damaged the property.’[1]

Property damage costs landlords £4.5bn per year

Property damage costs landlords £4.5bn per year

Protection

Mr Kneppers went on to say that, ‘the best way for landlords to protect their property and avoid a dispute is by ensuring that the condition of the property is fully recorded at the start of the tenancy, with a comprehensive inventory, along with a through check-in and check-out report.

All UK landlords are permitted to provide a detailed inventory to their tenants at the beginning of a new tenancy agreement.

Kneppers concluded by saying that Imfuna Let, ‘work with many landlords and agents who have managed to reduce property damage by carrying out mid-term inspections, supported by a thorough and professional inventory.’[1]

[1] http://www.propertyreporter.co.uk/landlords/property-damage-costs-landlords-%C3%A3%C2%A245bn-a-year.html

 

Nearly half of BTL landlords looking to raise rents in 2016

Published On: December 31, 2015 at 10:30 am

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As 2015 comes to a close, a new survey suggests that 2016 could be an expensive year for tenants.

Data from a report conducted by SpareRoom.co.uk found that 45% of buy-to-let landlords are looking to increase rents in the coming year, with 18% planning on raising them by more than 3%.

Legislations

The most common reason landlords questioned gave for stating their plans to raise rents were the upcoming changes in legislation, with 38% giving this as their catalyst. This suggests that future cuts to mortgage interest tax relief, stamp duty alterations and the national Right to Rent roll out could be felt by tenants and landlords alike.

Additional reasons for rent hikes were local rent increases (23%), expensive property repairs (6%) and greater mortgage repayments (4%).

The table below indicates how landlords plan to change rents in the coming year:

Landlords: What do you plan to do with rents in 2016? Response (%)
Raise by more than 3% 18%
Raise by less than 3% 27%
Keep the same 52%
Lower by less than 3% 1%
Lower by more than 3% 2%

[1]

Nearly half of BTL landlords looking to raise rents in 2016

Nearly half of BTL landlords looking to raise rents in 2016

Reality

A harsh reality is that average rents per room could rise by more than 3% in 2016. During this year, the typical UK rent for a double room in shared accommodation increased by 8.6% to stand at £593, according to SpareRoom’s analysis.

In the capital, average room rents increased by 6.3% to hit £721 per month.

‘The roll out of Right to Rent legislation, removal of mortgage interest tax relief and changes to the wear and tear tax break from 2017, on top of stamp duty changes coming in 2019, means buy to let looks like far more of a risk than it did at the start of the year,’ noted Matt Hutchinson, director of SpareRoom.co.uk. [1]

‘The worry is that tenants will bear the brunt of these changes. And if renters end up being the ones to shoulder the burden of legislative change, something has gone very wrong. The private rental sector is already under immense pressure,’ he concluded.[1]

[1] http://www.propertyreporter.co.uk/landlords/45-of-landlords-say-they-will-raise-rents-next-year.html

Secure your homes over the break

Published On: December 29, 2015 at 10:57 am

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With the festive period in full swing, many of us will be travelling to see loved ones over the extended break from work (well, for some of you!)

However, while Brits are getting stuck into mulled wine, leftover turkey and gorging on chocolate, it is important to remember that there are some that prey on poorly secured empty properties.

Stay secure

As owner of Belvoir, Birmingham Central, Major Mahill observes; ‘an empty property is a vulnerable property. So, if your tenant is intending to be away during the festivities, it’s important to put some security measures in place in order to protect it.’[1]

‘Opportunistic thieves love empty properties, especially over the Christmas period when piles of pricey presents are left unattended. In addition, unexpected maintenance emergencies can escalate at speed while no one’s home,’ he added.[1]

Maintain

During the Winter, one of landlords’ greatest fears is flooding, something which has been seen in extreme levels recently in the North. Charlotte Baker, owner of Belvoir Melton Mowbray and Bingham said, ‘a leaky roof, blocked guttering or burst pipes can all cause substantial damage swiftly in the absence of a tenant to notice or report them.’

‘To help reduce the potential of water worries, check that all roof tiles are secure and haven’t been damaged by the recent winds, plus that all guttering is unblocked and debris-free,’ she continued.[1]

Mr Major added, ‘to help prevent frozen pipes ensure all pipes are adequately insulated, plus ask your tenant to set the timer on the heating for an hour in the morning and at night while they are away.’[1]

Secure your homes over the break

Secure your homes over the break

Lengthy leave? Liaise

Tenants looking to leave rental property for an extended period should always inform their landlord first. Baker notes that, ‘if your property is going to be empty for 28 days or more its important that you are made aware. Some tenants may even be happy for you to visit the property occasionally in their absence to make sure all is well. Before doing so however, always ensure you have their permission for this.’[1]

‘It’s vital that you have a good insurance policy in place in case the worst was to happen,” she added. “when did you last check your policy? Is it going to cover you for all the common winter emergency situations? Plus, are there certain criteria you have to meet if the property is vacant for an extended period of time, such as draining the heating system?’[1]

Christmas crimes

It is important to remember that Christmas provides an opportune time for burglars to make their move. Unoccupied homes packed with Christmas gifts are the main target and tenants and landlords alike should work together to combat the mindless few.

‘If the property has a burglar alarm, window locks and other security features check that they are in working order,” says Baker. ‘Also consider installing outside security lights. It’s helpful to talk to your tenant in order to ensure they understand how to use the security measures you’ve put in place and are aware of their responsibilities.’[1]

Mr Major agrees, stating, ‘While it’s beneficial for you (and perhaps a neighbour) to know that your tenant is going to be away over the festive season, it’s just as valuable that other people don’t!” he says. ‘Providing an interior lamp with a timer can help make a property appear occupied, as can leaving a car in the driveway, plus asking a neighbour to push post properly through the letterbox and put out the bins.’[1]

Checklist

Tenants and agents should take time to look at this useful checklist to ensure their properties are as safe as possible over the break:

  • Advise of any extended periods where the property will be empty
  • Ensure alarms, windows and other safety features are working
  • Use central heating timers to help combat burst pipes
  • Check roof tiles
  • Unblock all guttering
  • Ask a neighbour to put the bins out
  • Install security lights
  • Take out sufficient insurance

[1] http://www.propertyreporter.co.uk/landlords/an-empty-property-is-a-vulnerable-property.html

 

 

Tenants Damage Properties to Avoid Eviction

Published On: December 23, 2015 at 12:25 pm

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Tenants Damage Properties to Avoid Eviction

Tenants Damage Properties to Avoid Eviction

Tenants may be purposefully damaging their rental properties to avoid being evicted, according to an online letting agent.

Under new laws, landlords that do not respond to legitimate repair requests cannot use section 21 notices to regain possession of their properties. The legislation was enforced on 1st October.

However, research from PropertyLetByUs found that 10% of tenants have admitted to causing over £500 worth of damage to their homes.

The Managing Director of the agent, Jane Morris, states: “While in principle the legislation is a good move, ensuring that landlords don’t evict tenants because of a genuine disrepair issue, it is open to dishonest tenants bending the law to avoid eviction.

“Landlords need to ensure that they make regular checks on their properties and handle tenants’ complaints about damage quickly and efficiently. If landlords are suspicious that the damage is intentional to avoid eviction, they should seek legal advice.”1

Have you had an experience similar to this since the new laws were introduced?

1 https://www.landlordtoday.co.uk/breaking-news/2015/12/tenants-will-damage-properties-to-avoid-eviction-claims-online-lettings-agent