Posts with tag: tenants

Nearly half of tenants don’t attend ‘checkout’

Published On: July 29, 2015 at 3:10 pm

Author:

Categories: Landlord News

Tags: ,,

Nearly half of tenants living in England and Wales do not attend the ‘check out’ at the conclusion of their tenancy agreement, according to new figures.

Checkouts

The checkout process involves landlords or letting agent representatives recording the condition of the property and comparing it to that of when the tenancy agreement started.

Data taken from a report by the Deposit Protection Service shows that despite their recommendation, only 48% of the 8,035 tenants questioned said that they had attended. Nearly 46% of those that did not attend said that either they had not been invited or they were not informed of the date or time.[1]

Julian Foster, managing director of the Deposit Protection Service said, ‘checkouts are one of the most important stages of any tenancy. By viewing the property and discussing its condition together, tenants and landlords can resolve problems quickly and help prevent longer disputes, for instance, over the return of the deposit.’[2]

‘It’s vital that landlords enable tenants to attend-and that tenants go along when invited,’ Foster added.[3]

Nearly half of tenants don't attend 'checkout'

Nearly half of tenants don’t attend ‘checkout’

Tips

As a means of helping the checkout process to go smoothly, the Deposit Protection Service has released their top tips to assist landlords:

  • take along a report from the check-in. The first stage of making sure your check out process is successful is to carry out an inspection that is agreed by the tenant on the state of the property when he or she arrives. Bring the resulting report to the check out as a reference point for both your inspection and the discussions
  • Make sure you invite tenants in writing and with sufficient notice. It’s important you have a record of the invitation so its existence cannot be disputed afterwards; and tenants should be given a reasonable chance of being able to attend
  • Make sure the tenant understands the process. Explain that this is his or her chance to put forward their case regarding the state of the property
  • It’s sensible to include a description of the process in your written invitation, and give them an opportunity to ask questions when it starts
  • Consider the use of an inventory clerk. These are professionals who understand best what needs to be recorded when tenants arrive – and how best to assess and demonstrate change at the end of the tenancy. If you do use their services, make sure the tenant understands their role
  • Be safe. It is of course extremely unlikely that a check out will provide a risk to your safety, but make sure someone else knows where and when it is taking place and if you have any concerns, bring someone else along
  • Take your time and be thorough. Although confrontation can be difficult and it can feel awkward to be touring your property that has acted as someone else’s home –you are making life more difficult for both you and your tenant if you do not cover every aspect of your check in list properly, or later on refer to an issue that wasn’t noticed during check out
  • Make notes. In particular, record any of your tenant’s admissions or any agreements you reach. Ask your tenant to sign and date the notes. Make sure they receive a copy of these soon after check out takes place. As ever emailing a copy helps demonstrate that you were in touch.
  • Bring a camera and take photos of any damage or anything else contentious. Digital cameras work best because they have a date stamp, which helps demonstrate when the photos were taken. Explain in your invitation that you may take photos during the visit
  • Use video evidence where appropriate. Demonstrating that equipment is no longer working, for example, may most easily be achieved using a video. However, most often photos provide the best form of evidence, as adjudicators can study the image more easily
  • Carry out the check-out before any repair works take place. Although it seems obvious that evidence of the damage will help demonstrate your case, unfortunately the rush to overcome problems ready for the next tenant sometimes means opportunities to record them are missed[4]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/7/half-of-tenants-do-not-attend-check-out

 

400,000 landlords affected by property damage

Published On: July 17, 2015 at 3:04 pm

Author:

Categories: Landlord News

Tags: ,,

New research from the National Landlords Association has revealed that 29% of British landlords have had damaged caused to their property by tenants in the last 12 months.

In addition, figures show that almost 1 in 10, or 8% of landlords, have had to make an insurance claim during the last year. This meant that on average, landlords spent 5% of their rental income on landlord insurance premiums.[1]

Premium pressure

More positively, almost half of landlords said that they hadn’t spent any money on insurance premiums during the past year. 46% said that they had spent 10% of their premiums, while just 4% said they had exceeded this figure.[2]

The figures come as the Chancellor has announced that the insurance premium tax will increase in November from 6% to 9.5%. This is expected to raise £1.75bn for the Treasury.

Carolyn Uphill, Chairman of the NLA, wants landlords to protect their rental investment to cover all unexpected eventualities in the future.

‘Property damage can be a costly issue for landlords especially if the level of damage exceeds the value of the tenancy deposit,’ Uphill said. ‘We hear time and time again from landlords who have suffered because they failed to properly vet their tenants before granting a tenancy, and it’s alarming just how many landlords find out the hard way that their basic home insurance policy doesn’t provide the cover they need,’ she added.[3]

400,000 landlords affected by property damage

400,000 landlords affected by property damage

Concluding, Uphill remarked that, ‘It’s vital to have the right policies and protections in place and landlords should ensure they carry out crucial tenant checks prior to letting their properties. The NLA offers the most comprehensive range of support, advice and services to help landlords and property owners of all types and sizes to run profitable, sustainable and successful lettings businesses. Landlords who are unsure about what cover they need should get in touch about our bespoke property insurance offering, which includes some of the widest cover for landlords and buy to let owners in the market.[4]

[1] http://www.propertyreporter.co.uk/landlords/property-damage-affects-400000-landlords.html

 

Tenants moving to new cities

Published On: July 17, 2015 at 12:42 pm

Author:

Categories: Landlord News

Tags: ,,

Latest data has revealed the locations where tenants new to a region account for the greatest proportion of new tenancies agreed.

HomeLet’s Rental Index Regional Variance Figures give the total number of new tenancies for people moving into an area. The latest report indicates that Wakefield, Coventry, Brighton, Nottingham and Greater London top the list for new tenancies from people new to the area.

Out of town

More than 25% of tenancies signed in the last year in Coventry and Wakefield were from people moving into the cities. Tenants moving to Greater London have also increased since the recession, with 18% of new tenancies agreed last year from new arrivals, as opposed to 11% in June 2008. What’s more, the average rent for people living in the capital was £1,515 per month in the three months to June. This represents a 10.1% increase from twelve months ago.[1]

On average, rent for new UK tenants in the second quarter of 2015 was £956 per month, with increases in all regions of Britain, with the exception of London.[1]

London has however shown the largest increase in average monthly rents since the recession, with a 51% increase. The capital was followed by Brighton with 25% and Coventry with 21%.[1]

Tenants moving to new cities

Tenants moving to new cities

Staying put

The Index also indicates the British cities in which tenants are most likely to remain, by looking at the proportion of tenancies being signed by people who have lived elsewhere in the city. Belfast, Cardiff and Birmingham all proved popular with renters, with more than 95% of tenancies in these locations taken on by someone already residing in the region.[1]

Martin Totty, chief executive officer of HomeLet’s parent company Barbon Insurance Group, stated, ‘the HomeLet Rental Index paints a fascinating picture: it reveals several hotspots around the country that are attracting and retaining tenants. For example, with its proximity to the burgeoning local economy of Leeds, Wakefield is an attractive and affordable location for tenants to move to. Meanwhile, cities such as Birmingham and Bristol appear to be ‘must stay’ locations, with tenants increasingly choosing to settle and stay in these cities, and continuing to choose to privately rent property in order to do so.’[1]

‘While the London rental market continues to be popular, with the capital inevitably drawing in large numbers of people, it’s not the only part of the country attracting incomers, with tenants also choosing cities such as Nottingham, Brighton and Coventry,’ Totty added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/7/tenants-are-on-the-move-to-where

 

 

Tenants spending half of income on rent

Published On: July 17, 2015 at 10:54 am

Author:

Categories: Landlord News

Tags: ,,

A new report on the make-up of the country’s housing market has revealed that renters in England spend half of their take-home pay on rental costs.

The latest English Housing Survey shows tenants spent an average of 47% of their total net income in rent. Those who had taken out a mortgage face repayments of around 23% of their earnings after tax.[1]

Living trends

Providing a comprehensive overview of English housing stock and trends, the survey indicated that once housing benefit is removed from income, average rental costs are more than half of the typical gross pay.

Across the country, private renters paid 43% of the average total gross income of the main householder and partner, including housing benefit, in rent. Without including the state payments, tenants faced rental costs that were on average 52% of their earnings. This total has risen from the 48% recorded in 2003, with the proportion of pay plus housing benefit dropping marginally from 44%.[1]

‘The increase between these years in the proportion of income (excluding housing benefit) spent on rent is consistent with the rent increase in housing benefit receipt among private renters in work,’ the report said.[1]

Concern for the young

Concerning data from the reports highlights the difficulty of 16-24 year-olds. For this particular age bracket, rents accounted for a huge 88% of incomes and 81% for when state payments were included.

David Orr, chief executive of the National Housing Federation said that the results of the survey were, ‘yet another symptom of a very sick housing market that is carving ever-greater chasms between those who own a home and those who don’t.’[1]

‘Private renters are having the hardest time of it, paying the most as a proportion of the pay cheques and in real terms. We need to bring an end to these extortionate prices and give people real choices, by building the homes this nation needs,’ he added.[1]

Roger Harding, of housing charity shelter, said that private renters, ‘are bearing the brunt of our dramatic housing shortage.’ He went on to say that, ‘the result is an entire generation forced to give up hope of a stable future and resign themselves to a lifetime of expensive rents.’[1]

Tenants spending half of income on rent

Tenants spending half of income on rent

Rising renters

Figures from the survey also show how tenant numbers have increased over the last decade. In 2003-04, 2.1m households were privately rented. By 2013-14, this figure had grown to 4.4m.[1]

There was also a sharp rise in renters of every age group, but in particular for those aged between 45-54. In this age bracket, the number of tenants rose from 217,000 to 662,000 over the ten-year period.[1]

With people staying in the private sector for longer, the total number of families with children who are tenants has risen. In 2003-04, 23% of tenant households contained dependent children but by 2013-14, this figure had increased to 35%.[1]

First-time buyers are being forced to turn to their family for help, as they struggle to get on the housing ladder. The report revealed that of first-time buyers who have been in their property for under five years, 27% received help in financing their move through a loan or payment from their parents or friends. This was in comparison to 20% a decade previously. [1]

‘Rents are now so high that many will find saving is close to impossible, putting homeownership still further out of reach,’ said Matt Hutchinson, director of the flat share website SpareRoom.co.uk. ‘The situation for renters is becoming more and more indiscriminate. We’re not just talking about young professionals who can’t buy-families who crave stability for their kids are impacted too,’ he added.[1]

[1] http://www.theguardian.com/money/2015/jul/16/tenants-in-england-spend-half-their-pay-on-rent?utm_source=dlvr.it&utm_medium=twitter

 

 

Over half of tenants experience issues with rental property

Published On: July 7, 2015 at 12:30 pm

Author:

Categories: Landlord News

Tags: ,,

A recent survey has shown that over half of tenants said that they have experienced problems with their rental property during the past year.

Complications were found to have ranged from poor maintenance to breaking terms of the rental agreement, according to the survey, conducted by mortgage and loans provider Ocean Finance.

Problems

Results from the review show that the largest problem for tenants was their landlord’s inability to fix structural issues. 15% of tenants said that this was the case, with damage including damp, leaking roofs and rotten window frames.[1]

13% of tenants said that they had experienced delays in repairs to be made to furniture and other appliances such as washing machines. 14% stated that unexpected rises in rent, disputes over deposits and early eviction were the most severe problems that they had faced.[1]

Alarmingly, 35% of tenants said that once they had reported a problem to the landlord or letting agent, the issues were still not fixed. 13% said that they did not know who to turn to for advice, with 5% refusing to pay their rent until the problems were solved.[1]

Regionally, tenants in London, home to over 10 million private renters, experienced the most problems, with 60% saying that they had encountered difficulties during the past year. The East Midlands and the South East were next on the list. [1]

Over half of tenants experience issues with rental property

Over half of tenants experience issues with rental property

Obligation 

‘Landlords have an obligation to ensure that the properties they let are well maintained and safe for their tenants to live in,’ said Gareth Shilton, spokesman for Ocean Finance. The research indicates that many tenants are renting sub-standard properties. It’s also concerning that people are facing mid-tenancy rent increases or have money unexpectedly taken from their deposits.’[1]

‘One of the problems may be a lack of clarity over whose responsibility it is to maintain different aspects of a property. Often the landlord believes that the tenant is responsible for doing repairs that in fact they are obligated to make,’ Shilton added.[1]

[1] http://www.propertywire.com/news/europe/uk-landlords-tenant-demand-2015070610714.html

 

 

Record low times recorded for re-letting homes

Published On: June 26, 2015 at 2:27 pm

Author:

Categories: Landlord News

Tags: ,,

Encouraging figures released today indicate that landlords are able to let their property in record time.

New research from Countrywide reveals that landlords are currently able to re-let their property in an average of 32 days. This means that many are able to re-let their property before their existing tenants moves out.

Average lets

The research found that 33% of new lets agreed in 2015 to date were agreed while the property was still occupied, up from 27% last year. Average lets achieved while an existing tenant was still in place represented 105% of the asking rent, equivalent to £35 more a month than the asking price. Landlords that are still receiving rental payments from an existing tenant are able to be more relaxed. On the other hand, tenants moving into an unoccupied property have more room to negotiate a cheaper rate, knocking on average £21 per month off the landlords preferred amount.[1]

In the capital, 51% of new lets are arranged when there is still a live-in tenant in the property, up from 41% in 2014. Where a deal is agreed before the previous tenant moves out, there is an average of just six days before then new one moves in. 10% actually move in on the same day that the previous tenant moves out.[1]

Record low times recorded for re-letting homes

Record low times recorded for re-letting homes

Rents

Findings from the report show that when a property has not been let before a tenant leaves, the first week of advertising is where the landlord is likely to achieve the highest rent. After the first week, the landlord is more unlikely to achieve their preferred asking rent.

Outside of the major cities, the average landlord must wait an extra 15 days to locate a tenant willing to pay their asking rent.

‘In larger rental markets, more new lets are being agreed well in advance of the current tenant leaving. As a result we’ve seen void periods fall, with a growing number of landlords having a new tenant lined up over a month before their existing tenant leaves,’ commented David Fell, research analyst at Countrywide.[1]

‘While leaving some time for maintenance between tenancies is advisable, increasingly there’s just a matter of hours between a tenant moving out and one moving in. The buzz around a new property coming onto the market is usually the landlord’s best chance of securing the tenant willing to pay the most rent,’ he continued. [1]

Concluding, Mr Fell said that, ‘in more competitive markets, the first tenant to view a home is often willing to pay a small premium to ensure the landlord takes the property off the market and that no further viewings take place.’ According to Fell, ‘proactive tenants who are looking to move quickly are frequently willing to pay the most.’[1]

[1] http://www.propertywire.com/news/europe/uk-lettings-tenants-landlords-2015062610675.html