Posts with tag: tenants

To Furnish or Not to Furnish? … That is The Question

Published On: September 19, 2018 at 8:52 am

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When intending to let your property, it is important to consider whether or not you will be furnishing it or leaving it unfurnished. Renee Wells, from Landlord News, has provided some key tips to consider when it comes to figuring out your options:

Advantages of furnished properties

The obvious benefit from choosing to furnish your rental property is the potential to obtain a higher rent price. Generally, though, furnished properties are far more appealing to corporate lets, rather than residential. However, there are some key reasons why a furnished property could be beneficial to you.

• Your tenants can move in straight away, which will save both time and money whilst keeping your tenant(s) comfortable and content with their new furnished home.
• When a tenancy is expired, or you should find yourself in the unfortunate situation where you have to issue a Section 21, you can still use the furniture in the property because you own it.
• You are able to deduct a percentage of the cost of the goods from your tax liability. Deductible expenses include both the cost of the replacement item and costs of disposal of these items.
• Having a furnished property is what many tenants are searching for due to convenience, meaning that you are far likelier to let your property, quickly.

Disadvantages of furnished properties

You will be responsible for the maintenance of both the property and the furniture if it is becoming worn or need repairing.

Although letting a furnished property comes with its advantages, there are also some disadvantages to be wary of.

• One of which is the lack of flexibility in terms of making the most of the space in each room. Having furniture in a room may limit the amount of space you have to work with in order to make the room more appealing to increase demands for viewings.
• You would be responsible for any costs as a result of wear and tear to furniture or appliances.
• You would be responsible for the content insurance, as these possessions are your own.

Advantages of unfurnished properties

• Tenants may be far happier with their providing their own furniture, meaning that this would be less problematic for you

• There is no reason why you should be concerned about wear and tear to the furniture as you did not supply the furniture

• Tenants who invest in their own furniture are more likely to stay for a longer period of time since they have gone to the effort of making such an investment. In addition, moving house is both a complex and expensive process which they will likely want to avoid.

Do I have any alternative options?

There is another option available if you’re still struggling to come to a definite decision. This decision would be to let your property out part-furnished. If you wanted to go ahead with this option, here are the following things you can do:

• You could put in everything except beds, since tenants are more likely to have a bed than other furnishings or you could show the property to potential tenants, offering them the choice of whether to have additional furniture or not.

This method is favoured by many letting agents, as it provides the tenant with far more flexibility and makes it far easier to source tenants.

• Provide a sufficient amount of furniture, or make it appear as though there is far more than is actually available so that the tenant is able to see that the property is functional and looks ‘lived in’.

Insurance

Legally, it is not compulsory for you to take out contents insurance on furniture and other items in a tenanted property, however, it is strongly advised that you do in case of any serious damages or thefts. Just Landlords, the specialist Landlord Insurance provider offer 5-star Defaqto rated please visit their website for further information on Contents Insurance.

Are More Landlords Scrolling on their Screens to Find Reliable Tenants?

Published On: September 19, 2018 at 7:58 am

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An increase in the number of landlords choosing social media as a method to get the low down on their prospective tenants has been reported, according to the most recent sentiment research provided by Foundation Home Loans.

With regards to these prospective tenants, landlords are delving deep, gathering information on past tenancies. Though this may be interpreted as perhaps, an invasion of privacy, it is paramount that as a landlord, you prioritise research of potential tenants.

Research undertaken revealed that 11% of landlords now check Facebook and other social media platforms to screen their tenants as a way of assisting them to make an educated choice on whether to definitely rent their property to them.

Depending on the accounts that are available, information that could be gathered from social media could include everything from occupational history, right through to personal details such as friends and lifestyle.

Moreover, this research discovered that almost a third of landlords make the decision to interview potential tenants to assist them in their decision as to whether a specific tenant is right for the property being offered, as part of the screening process.

Personal references are selected by 34%, allowing them to understand personalities whilst maintaining a reasonable distance. In addition, employer references and previous landlord references are also requested by a number of landlords.

When considering preferences for tenant types, the report from Foundation Home Loans shows that it is middle-aged couples who are far more favoured by landlords, with the perspective that they are less likely to cause damage to a property for the long-term, and young singles for this exact reason.

Marketing Director at Foundation Home Loans: “Buy-to-let is a business, so it’s only natural that landlords would want to vet their potential tenants just as an employer would a potential employee.

“While Facebook and social media accounts may not be the best source of information if used in isolation, they can offer valuable insight when set against other checks such as personal references and credit checks.

“After all, maintaining a good rental income is a priority and void periods can be particularly damaging, so it’s important to ensure this is not a risk when new tenants move in.”

More Than Third of Tenants Unsure About Claiming Deposits Back

Published On: September 18, 2018 at 9:57 am

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A recent survey has revealed that a growing number of tenants are displaying signs of uncertainty when it comes to claiming back their deposits.

Research provided by SafeDeposits Scotland has discovered that 36.4% of tenants are not aware of the process they need to take when it comes to claiming back their deposits subsequent to moving out of a privately rented property.

It was reported that55.8% of renters who were questioned were unaware of the free service to challenge any deductions landlords make from their deposits.

The survey, the largest of its kind, with more than 4,500 Scottish tenants participating, also revealed that over a quarter was not initially aware of the compulsory legal protection that their tenancy deposit had in a Government-backed scheme.

Published by the Scottish Government in September 2018, The Scottish Household Survey reported that there are roughly 280,000 households in the private rented sector. The average deposit protected by SafeDeposits Scotland is £723.

Chief Operating Officer at SafeDeposits Scotland, Victoria Smith commented: “Scottish law on tenancy deposits is particularly robust and makes it a legal requirement for landlords to protect their tenants’ deposits.

“It’s also in the legislation that, if things don’t run smoothly, there’s a process to resolve disputes.

“Our survey is the biggest one of its kind ever done in Scotland since tenancy deposit legislation was implemented in 2012 and the figures show that a considerable number of tenants don’t know what’s in place to make sure that not only is their money protected, but there’s recourse if there are any problems.”

SafeDeposits now intends to step up its efforts to educate tenants, as well as landlord and letting agents, across the country, to assist them in becoming aware of their rights and responsibilities in regards to tenancy deposit protection.

Smith added: “Tenants who don’t know what’s in place to make sure their deposit money is protected could be left out of pocket by landlords or agents who don’t comply with the legislation, or who make unsubstantiated claims. The majority of landlords abide by the law but there is a small group who disregard their legal responsibilities.

“If a landlord or agent fails to protect a tenant’s deposit within 30-days of the lease starting, they could be liable for up to three times the deposit value in compensation.

“The recently-introduced First-tier Tribunal, which makes decisions on such cases, has already adjudicated on 40 cases and reprimanded landlords.”

 

More Tenants Are Renewing Their Contracts Instead of Moving

Published On: September 18, 2018 at 9:28 am

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New research provided by Hamptons International reveals that tenants are adopting a long-term view to renting property, with more private renters looking to renew their existing contracts.

As the nature of the rental market continues to evolve and change, it seems that both tenants and landlords are benefitting from longer tenancy agreements.

In August, the statistic of tenancy renewals across Great Britain last year stood at 2.5%.

Rental growth on renewed tenancies rose by 2.8%, which is the highest figure in 10 months.

This is particularly the case for London, where the number of tenancy renewals has risen 3.7% this year compared with the same period in 2017.

Renewal rents in London have risen for the last 3 months, reaching 3.2% year-on-year in August.

These findings are unsurprising given that tenants want to feel settled and landlords want to reduce tenant void periods in their rental property.

With less stock available on the open market to choose from, Hamptons International reports that average rents on newly let properties is also increasing.

Across Great Britain, the average rent of the new let rose to £975pcm in August 2018, led by gains in the Midlands and Wales with rents on new lets up to 3.3% year-on-year and 4.4% respectively.

However, London rents on newly let homes fell for the third consecutive month, down 0.8% year-on-year.

The capital remains the only region across the UK where rents are failing.

Aneisha Beveridge, analyst at Hamptons International, said: “Despite low stock levels, rents on newly let properties fell in London for the third consecutive month. Moving is costly for both tenant and landlord. In a period of uncertainty, where tenants’ incomes and landlords’ yields are squeezed, more tenancies are being renewed.

“With affordability stretched and less choice available on the open-market, more tenants are choosing to stay put. And with landlord yields under pressure from high property prices and tax changes, fewer landlords want to run the risk of looking for a new tenant and suffering void periods.

“But rents outside London continue to rise. Wales and the Midlands have driven rental growth outside the capital to increase 2.0% year-on-year, the strongest growth in nine months.”

Shelter Warns That Lack of Engagement from Accidental Landlords Has Serious Consequences for Tenants

Published On: September 18, 2018 at 9:00 am

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Shelter, the homelessness charity, has warned that it should be a requirement for landlords to be more engaged in the rental sector.

Furthermore, she added: “I’m increasingly thinking about those landlords whose behaviour and attitudes exist in the space between the RLA members and the ‘rogues’.
“The ones for whom becoming a landlord was necessitated by circumstance and wasn’t a conscious decision, the ones who have no interest in finding out more about the responsibility of providing another person’s home.

“These landlords may not be wilfully exploitative, but their disengagement and lack of awareness have serious consequences for their tenants and the lives being built in their properties. It is an enormous responsibility to be a landlord and it isn’t something that should be done half-heartedly.”

Neate said she hoped Shelter and the RLA can reach more of those ‘in-between’ landlords and “create a sector which is fully equipped across the board to provide the long-term, stable, good quality homes that are the foundation of wellbeing for individuals, families, communities and our society.”

The RLA publication also includes essays from Martin Partington, Chairman of The Dispute Service who accuses civil servants and politicians of not taking the rental sector seriously, while Luke Murphy, Associate Director at the Institute for Public Relations Research also calls for tax incentives for landlords who invest in the upgrade of the quality or energy efficiency of their property.

The essays were launched at an RLA parliamentary event this week attended by housing secretary James Brokenshire and the shadow housing secretary, John Healey.

Brokenshire commented:“I want to congratulate the RLA on 20 years of hard work helping make the private rented sector better for everyone.
“This is a vision shared by government and is why we have taken action to raise standards in the sector and protect tenants from substandard accommodation and unfair charges.
“There is much more still to be done to ensure everyone has a decent and safe home, and I look forward to continuing our work alongside the RLA in the months and years to come.”

Alan Ward, chairman of the RLA, added: “The RLA’s 20th anniversary provides an opportunity to take stock of where the private rented sector now is, and where we all want it to go.
“All the contributors recognise the importance of the sector in providing homes to many millions of people.
“As we go forward we need to ensure the sector works for tenants and good landlords alike, whilst rooting out the criminals who have no place in a modern rental market.”

5 Things You May Not Know about Renting a Property

Published On: September 13, 2018 at 8:57 am

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With more and more people renting a property across the UK, ARLA Propertymark (the Association of Residential Letting Agents) is helping tenants understand the complexities of renting in this day and age.

According to ARLA Propertymark’s latest Private Rented Sector Report, the number of tenants looking for a new home has increased every month since May this year.

With more people looking for guidance on renting a property, the organisation has compiled a list of the five things that tenants might not know about being a renter…

Switch and save 

If you’re paying the energy bills in your property, you have the power to switch suppliers. You can often find a cheaper fixed tariff if you shop around, so it’s worth putting in the time to do so.

Double-check your tenancy agreement, however, as some contracts include a clause that means you must inform the landlord.

Redecorating

5 Things You May Not Know about Renting a Property

5 Things You May Not Know about Renting a Property

Landlords usually aren’t happy for their tenants to start redecorating their properties, but there’s no harm in asking. You need to seek permission to install extra shelving, hang things on the walls, or anything that could potentially damage the property. You’d also need to ask if you’d like to paint anything, or replace the units, etc.

There are, however, lots of things that you can do to make a rental property feel like a home without your landlord’s permission. An eye-catching floor lamp, for instance, can instantly perk up a drab living room, while laying down rugs helps you personalise your space. You could also buy cushions and throws, and make sure that you always have a vase full of fresh flowers on the kitchen table.

Letting with a pet

If you have a pet, it’s really important to be upfront about it when you’re looking for a property. Some landlords won’t allow them at all, but many will be fine with pets if you pay a higher deposit to cover any potential damage – just make sure that this is clearly stated in your contract if you agree to it.

If you find a property and the landlord won’t allow pets at all, your letting agent can help you find another suitable one.

Illegal activities 

Cannabis is illegal in the UK, and there will likely be consequences if you’re caught smoking it behind closed doors. There is usually a specific clause in tenancy agreements that says tenants must not consume illegal substances at the property, and, subject to the landlord’s consent, most contracts prohibit any smoking at all.

Running a business

Although it is legal to run a business from a residential property, you must ask your landlord for permission if you want to do so, but, remember, there are various things that they will need to consider before agreeing. They would probably have to inform their mortgage provider, as well as getting permission from the freeholder if the property is in a block of flats. They would also need to update their insurance and make sure that they are not breaking any licensing conditions that the local authority has placed on the property.

General wear and tear could also be an issue if the business wasn’t just desk-based, and the landlord must ensure that the business wouldn’t disturb the neighbours if people are coming and going throughout the day.

Peter Savage, the President of ARLA Propertymark, says: “Finding a rental property can be a stressful task, especially if you’re unfamiliar with all the clauses in your tenancy agreement, but it can also be really exciting.

“The most important thing to remember is that, once you sign the tenancy agreement and move in, you’re still bound by it. While most landlords are very willing to negotiate, these discussions do need to take place and you should never assume your landlord won’t mind without some sort of commitment in writing. Letting agents can help you both with understanding the small print in your contract and by helping you negotiate directly with the landlord.”