Posts with tag: tenants

One in four would not tell their landlord about damage!

Published On: April 18, 2017 at 2:06 pm

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A new survey from TheHouseShop.com has revealed that one in four tenants wouldn’t inform their landlord if they made significant damage to their rental property.

Data from the report shows that while 15% of people would hire a professional to repair the damage incurred, over one in ten would attempt to fix issues themselves!

Damages

58% of respondents said that they would report any damages to their landlord, but 27% said that they would not.

Of the 27%:

*11% would attempt to fix damages themselves

* 15% would call on a professional

*Only 1% would hide the problem and hope for the best!

Of those honest 58% of respondents:

*24% would offer to pay the repair bill in full

*7 would contribute to the repair bill

*27 would wait and see if they were required to pay anything

One in four would not tell their landlord about damage!

One in four would not tell their landlord about damage!

Accidents

Nick Marr, Co-founder of property marketplace TheHouseShop.com, noted: ‘While the vast majority of tenants will not actively try to do damage to a property, accidents do happen, and even well-meaning and reliable tenants can end up inflicting significant damage during their tenancy.’[1]

‘The best advice I could give to landlords would be to encourage an open and honest relationship with their tenants, so that tenants don’t feel scared or nervous about reporting any damages as soon as they happen. Having a direct relationship with your tenants, as opposed to using a third party agent or management service, can be a great way to build trust and avoid any nasty surprises further down the line. However, it is important to remember that landlords should always conduct thorough checks and references on any potential tenants before they move into the property. That way you can hopefully avoid the nightmare tenant horror stories that so many landlords can recall in an instant,’ he added.[1]

[1] http://www.propertyreporter.co.uk/landlords/1-in-4-admit-they-wouldnt-own-up-to-landlord-about-damage.html

 

The Benefits of Buying a Property with Sitting Tenants

Published On: April 13, 2017 at 9:24 am

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The Benefits of Buying a Property with Sitting Tenants

The Benefits of Buying a Property with Sitting Tenants

Completing an investment but not having tenants move in straight away can be very costly for landlords. But buying a property with sitting tenants is an option…

Research from Nottingham Building Society claims that 21% of buy-to-let landlords have to wait at least four months after purchasing their property to find their first tenants.

Owning a property that’s standing empty can be very expensive.

However, many investors do not consider the idea of buying a property with sitting tenants. But this option can save time and money.

If you purchase a property with sitting tenants, you can take advantage of the following benefits:

  • The tenancy agreement is already in place, meaning that you do not have to try and agree terms and conditions.
  • Less of a financial burden, as you will start receiving rental income on completion of the property.
  • No set-up costs, including finding a tenant and paying for an inventory, or drawing up a tenancy agreement.
  • Already vetted tenants, including payment history, occupation, references, how well they look after the property and which protection scheme their deposit is in.

Michael Cook, the Lettings Managing Director of Romans estate agent, comments on the benefits of buying a property with sitting tenants: “Property remains a great investment, and buying a buy-to-let property with sitting tenants means you can get an instant return on your investment. As soon as you complete the property purchase, you will begin to receive rental income and avoid any void periods.”

Landlords, remember that if you do purchase a rental property with sitting tenants, you must ensure that all of the legal requirements are in place before taking over the tenancy agreement. This includes references such as Right to Rent checks.

If these checks have not been conducted, or if the tenant’s deposit is not protected by one of the three Government-approved schemes, for example, you will be liable for penalties.

Confidence of property investors is high

Published On: April 5, 2017 at 9:03 am

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A new report has indicated that confidence regarding investing in property is continuing to grow, with many buy-to-let landlords predicting a good year ahead for the UK housing market.

The survey from Shawbrook Bank discovered that 81% of landlords feel confident about the performance of their property portfolios in the coming year. Much of this optimism stems from improvements in the lending environment.

Demand

Tenant demand remains strong, with 30% of landlords questioned seeing an increase in the number of renters during the second half of 2016. In addition, half of all buy-to-let landlords have seen increases in income during the last twelve months.

It is also good news for the buy-to-let sector, with 66% of respondents saying that they plan on purchasing an extra buy-to-let property during the opening six months of 2017. This comes despite the numerous tax alterations and continuing uncertainty surrounding Brexit.

Confidence of property investors is high

Confidence of property investors is high

Optimism

Karen Bennett, Managing Director of commercial mortgages at Shawbrook Bank, said: ‘Despite uncertainty surrounding Brexit, landlords are still optimistic about the performance of their portfolios. With Brexit negotiations officially underway, as well as recent changes to housing policy, it is encouraging that the market doesn’t seem to be slowing.’[1]

‘Following last year’s tax changes it’s clear that investors are still getting a feel for how the changes will affect them. It is also evident that landlords have made an effort to understand how these new policies affect they way they do business, although the fact that 19% of those asked have little or no understanding of these changes means there is still work to be done,’ she added.[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/4/property-investor-confidence-runs-high

 

Rogue landlord fined over £7,000

Published On: March 30, 2017 at 8:46 am

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A rogue landlord has been told to pay over £7,000, after a series of failings put the lives of his tenants at risk.

Mr Daniel Woulfe pleaded guilty to poorly managing two rented homes in Worthing and not carrying out works to improve standards.

Failings

The court appearance was Woulfe’s third, after officers from Worthing Borough Council’s private sector housing team inspected the two properties.

Fire safety provisions within the houses were found to be substandard, as were the electrical installations.

After he had ignored improvement notices, the council decided to act by telling Worthing Borough Council’s legal services team to start prosecution.

Mr Woulfe pleaded guilty at Worthing Magistrates Court to 11 offences under the Management of Houses in Multiple Occupation (England) Regulations 2006 and the Housing Act 2004.

He was subsequently fined £4,250, with full costs of £2,811.95 and a victim surcharge of £50, bringing the total to £7,11.95.

Rogue landlord fined over £7,000

Rogue landlord fined over £7,000

Substandard

Councillor Dr Heather Mercer, executive member for customer services at Worthing Borough Council, said: ‘This is another example of the need for the invaluable service provided by the Council’s Private Sector Housing Team, clamping down on landlords running substandard and hazardous properties.’[1]

‘We have a responsibility to do all in our power to help create healthy, safe places in which people can thrive – so we will continue to act where we see substandard properties putting people at risk. Poor landlords must realise that court action is not the end of the matter and Worthing Borough Council will persist in ensuring that landlords comply with their legal duty to manage and run their properties safely,’ she added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2017/3/landlord-fined-over-7-000-for-putting-tenants-at-risk

 

Fergus Wilson makes it back into the Headlines with Controversial Ban

Published On: March 30, 2017 at 8:45 am

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Fergus Wilson, one of Britain’s biggest buy-to-let landlords, has made it back into the headlines with yet another controversial ban.

Wilson, 69, has now banned “coloured” people from renting his properties because, he says, they leave them smelling of curry.

Fergus Wilson makes it back into the Headlines with Controversial Ban

Fergus Wilson makes it back into the Headlines with Controversial Ban

In an email to the letting agent acting on behalf of Wilson, who runs a property empire in Kent, he said: “No coloured people because of the curry smell at the end of the tenancy.”

When contacted by The Sun, Wilson defended his comments, saying: “To be honest, we’re getting overloaded with coloured people. It is a problem with certain types of coloured people – those who consume curry – it sticks to the carpet. You have to get some chemical thing that takes the smell out. In extreme cases, you have to replace the carpet.”

Earlier this year, Wilson made headlines after saying that he would no longer accept victims of domestic violence as tenants, as jealous or angry partners typically cause damage to the property by kicking down front doors and punching holes in the interior.

Single parents, workers on low incomes, families with children, pet owners, smokers and single adults were also among those who Wilson banned from his properties.

A spokesperson for the campaign group Hope Not Hate responded: “You simply cannot treat people like this and deny them a place to live due to their skin colour.

“This is the unacceptable face of the housing crisis. There is something broken in the system when such a powerful figure can get away with such an appalling policy.”

They added: “Fergus Wilson’s comments would seem laughably offensive, a throwback to the Alf Garnett era, if they weren’t so serious in their implication.”

Rebecca Hilsenrath, the Chief Executive of the Equality and Human Rights Commission, also reacted: “There are still deep inequalities in our society, as our race report demonstrated, and these comments show why.

“As a country, we all assume we have left the dark ages behind, but clearly there is more to be done.

“We will investigate and will be asking Mr. Wilson to explain his actions. Unless we are satisfied that he will not break the law in the future, we will take legal action.”

And the Manager at letting agent Evolution, which manages a number of Wilson’s properties, Roy Fever, insisted: “We don’t condone this at all. We would never implement a policy like that. We put through anyone to the landlord and it is up to the landlord who they take on.”

Disputes over rent arrears rise

Published On: March 29, 2017 at 10:27 am

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The latest report from the Tenant Deposit Scheme suggests that disputes over rent arrears rose from 10% to 19% over the last year. This further underlines the importance of taking out a Rent Guarantee Insurance policy to protect your investment.

However, cleaning still takes top spot in terms of deposit dispute reasons, accounting for 57% of the overall cases brought to the TDS.

Disputes

The second most common cause of disputes was found to be damage to property (51%), followed by redecoration (32%) and gardening (16%). The most expensive claim dealt with by the TDS during 2015-16 was £18,250.

Imfuma Let, provider of a digital inventory report app, said that landlords and letting agents are facing increasing challenges, with rent arrears and damaged properties at checkout.

Jax Kneppers, Founder and CEO of Imfuna, noted: ‘Landlords and agents need to ensure they make regular inspections of a property to check its condition and raise any issues with the tenant. If landlords and agents fail to visit the property during the tenancy, they could be in for a nasty surprise at check-out.’[1]

‘At the start of the tenancy, landlords and agents should give tenants a thorough and professional inventory, which clearly records the condition of the property and its contents. Tenants should be made aware that it is their responsibility to leave the property as clean as when they took on the property, and if any damage is incurred during the tenancy the landlord or agent should be alerted immediately.’[1]

Disputes over rent arrears rise

Disputes over rent arrears rise

Essential

Continuing, Kneppers said: ‘It is vital that landlords and agents do a thorough check-in and check-out so they have the necessary proof of condition at the start and end of a new tenancy agreement. If agents and landlords wish to make deductions for cleaning costs, they need to be able to prove that there was a change in condition from the start to the end of a tenancy in order to prove deductions are warranted.’[1]

Marie Brooks, of Monks Estate and Lettings Agents, also commented: ‘Providing a professional inventory report for every tenancy is essential in ensuring deposit disputes are a rare occurrence. When a detailed and thorough record of a property and its contents are provided at the beginning of a tenancy, there can be no doubt as to the amount of damage that has taken place when compared to the condition of the same at the end of a tenancy. In our experience, inventory reports have reduced tenant and landlord disputes to a great degree.’[1]