Posts with tag: tenants

80% of ARLA agents foresee rent rises in 2017

Published On: December 20, 2016 at 11:07 am

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UK rents are expected to increase during 2017, as a combination of a lack of housing supply and the raft of tax changes impacting on buy-to-let landlords.

The eventual phasing out of mortgage tax relief, alongside the introduction of more stringent buy-to-let mortgage lending conditions will also serve to push landlords away from the market.

A new poll from the Association of Residential Letting Agents (ARLA) has highlighted the possible adverse impact a ban on letting agent fees could have.

Rental Rises

After the Chancellor announced a ban on letting agent fees in this year’s Autumn Statement, 80% of ARLA agents believe that rents will rise in 2017. This is due to the assumption that the outright ban on letting agent fees to tenants will see these costs moved to landlords.

David Cox, managing director of ARLA, said: ‘The number of rent hikes reported by letting agents continued to decrease in November and it’s a shame the ban on letting agent fees will have the opposite impact on rent prices when the measure comes into force.’[1]

‘The buy-to-let market is becoming less attractive for investors as the ban on fees, combined with the scrapping of mortgage interest relief and the stamp duty increase on second homes push costs up for landlords. So unfortunately, regardless of the uplift we saw in supply this month, we expect to see the number of properties available to rent fall next year,’ he continued.[1]

Fall in Letting Agents?

A number of buy-to-let landlords do not currently use letting agents to either find or manage properties and it has been mooted that many more should consider going solo moving forwards.

Gillian Kent, chairman at No Agent, said: ‘We’re firm believers that as landlords’ purse strings are tightened by tax changes and the expected increases from traditional letting agents that landlords will look for alternatives.’(1)

Simon Lambert, editor of This is Money, wrote on the website: ‘Landlords are always ripe for a kicking in some circles, so it should come as no surprise that they were swiftly painted as potential future villains in the ban on tenant fees.’[1]

80% of ARLA agents foresee rent rises in 2017

80% of ARLA agents foresee rent rises in 2017

Anger

Lambert also believes that buy-to-let investors are right to be as angry as tenants over fees charged by agents.

He observes: ‘Many (landlords) pay handsomely for letting and management already and the fees they pay are meant to cover many of the things that some unscrupulous letting agents also charge tenants for.’[1]

‘A check with their agent on the level of double-charging going on would leave a landlord as grumpy as their tenant,’ he added.[1]

Concluding, Mr Lambert observed that landlords no not profit from existing tenant fees. As a result, while agents will be wanting to keep their revenues, an attempt to get back lost earnings by putting extra costs onto landlords represents a, ‘high-risk strategy.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/12/vast-majority-of-letting-agents-expect-rents-to-rise-in-2017

One in four landlords to buy their tenant a gift this Christmas

Published On: December 19, 2016 at 2:21 pm

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A new survey has revealed that one-in-four landlords are getting in the festive spirit and will purchase presents for their tenants for Christmas this year.

The investigation from Simple Landlords Insurance discovered that wine was the most popular gift from generous landlords, with 44% of those planning to give a gift choosing a nice bottle or two.

Christmas Gifts

Other most popular presents included money off rent and chocolates, accounting for 17% from gift-giving landlords.

In addition, buy-to-let Santas have purchased toys for their tenants’ children, restaurant vouchers, toiletries and even given money to recently redundant renters.

 

One in four landlords to buy their tenant a gift this Christmas

One in four landlords to buy their tenant a gift this Christmas

Jenny Mayes, of Simple Landlords Insurance, noted: ‘Gestures like these can help to keep the relationship between landlords and their tenants positive. Many landlords are not professional investors and 65% do not use letting agent to manage their properties. They rely on their tenants to keep their property in good condition, to pay rent on time and trust that they will let them know when things go wrong. Saying thank you and giving a little something can help hold onto good tenants and maintain goodwill.’[1]

 

[1] http://www.propertyreporter.co.uk/landlords/25-of-landlords-will-buy-their-tenants-a-gift-this-christmas.html

 

 

 

 

Is it getting harder to evict rogue tenants?

Published On: December 16, 2016 at 10:00 am

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A property boss had warned that small administrative errors could see landlords stuck with nightmare tenants.

The majority of landlords and letting agents use Section 21 of the Housing Act 1998 to end tenancies in the event of damage to a property or other grounds.

Powerless

However, Ajay Jagota, director of sales and lettings firm KIS, feels that changes in the law-amended in the Deregulation Act 2015, could see property owners powerless to evict rogue tenants.

It is feared that possession claims are unlikely to fall should agents not put tenants’ deposits in authorised deposit schemes, within 30 days.

In addition, Jagota notes the importance of providing tenants with the prescribed information relating to their deposit within this allotted time-frame.

Mr Jagota noted: ‘I know people tend to start playing the world’s smallest violin when they hear about problems being faced by landlords, but these rules could see someone’s much-loved family home or pension jeopardised by tiny administrative errors.’[1]

‘Changes in the legal and taxation system mean that if you have any sort of investment in property, protecting that assets is a priority-not something you can do on the hoof,’ he continued.[1]

Is it getting harder to evict rogue tenants?

Is it getting harder to evict rogue tenants?

Reputable

Jagota went on to say: ‘Usually the answer is a reputable letting agent, but they aren’t necessarily legal experts and the rising number of failed Section 21 applications implies that what landlords really need to invest in is good insurance. That way when the worst happens they can get the experts in rapidly and affordably.’[1]

‘It’s clear at the moment that both agents and landlords are getting it wrong. If you’re a landlord and you don’t have the sophisticated insurance you need, you’re leaving yourself wide open. There’s also the matter of the impact on the wider community. It only takes one family to ruin a street or village, and most landlords want to be able to take action, not just to protect their investment but on the community’s behalf. This situation could leave them powerless to help because they forgot to give those tenants a leaflet they probably wouldn’t have read anyway.’[1]

Concluding, Mr Jagota observed: ‘The saddest thing is that deposits are a relic of a bygone age. There is absolutely no need for landlords or letting agents to be using them at all when there are significantly more effective insurance-based solutions available.’[1]

[1] http://www.propertyreporter.co.uk/landlords/why-is-it-getting-harder-to-get-rid-of-nightmare-tenants.html

 

Landlords, Check Your Properties for Illegal Subletting

Published On: December 16, 2016 at 9:24 am

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Airbnb is Backing Sadiq Khan’s Call for Short-Term Lets Register

Imfuna, the digital inventories and inspections specialist, is urging all landlords and letting agents to check their properties for illegal subletting, as Airbnb continues to expand rapidly in the UK.

Landlords, Check Your Properties for Illegal Subletting

Landlords, Check Your Properties for Illegal Subletting

Established in 2008 in San Francisco, Airbnb now has over two million homes and rooms available to rent around the world. It is estimated that 80,000 British property owners are earning income from Airbnb – and the number is doubling by the year. More than 33,000 of these homes are in London.

While it is not known how many Airbnb hosts take part in illegal subletting, landlords and agents are reminded that it’s a growing problem. Many tenants do not seek approval from their landlord or agent before subletting, and therefore breach the terms of their lease.

If you find that your tenants are subletting illegally online, here is what you can do: /property-sublet-online/

The Founder and CEO of Imfuna, Jax Kneppers, says: “When there is multiple occupancy in a property, wear and tear is dramatically accelerated. The most common damages we see in rental properties are iron burns on carpets, cigarette burns, soiled marks on baths and UPVC windowsills and frames, heat damage to polished wooden furniture, and stiletto heel imprints on wooden floors and vinyl.

“It is vital that landlords and agents make regular inspections of their properties to check that the tenants who are listed on the tenancy agreement are the only residents. At the end of the tenancy, landlords should always change the locks if the property has been sublet. Landlords can also do regular checks on Airbnb’s website to see if their property has been listed there.”

Howard Lester, the Director of Balgores Property Group, also comments: “Over the last 12 months, we have seen a growth of illegal subletting and this is causing a host of problems for landlords. Many of these subletting tenants are not known to the landlord and have not undergone the rigorous reference checks. Inevitably, the property gets damaged with more occupants and there is the major issue of excessive wear and tear.

“We conduct regular inspections on our properties and are able to assess quite quickly if there is illegal subletting. The tell tale signs are excessive rubbish in the bins, extra clothes and bags, and additional toothbrushes and bedding.”

Landlords and Agents Should Get Behind Fee Cap Plan, Insists AIIC

Published On: December 15, 2016 at 9:33 am

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Landlords and letting agents should get behind a proposed fee cap plan, insists the Association of Independent Inventory Clerks (AIIC).

Following the announcement in the Autumn Statement that letting agents in England will no longer be able to charge fees to tenants, the AIIC urges all landlords and agents to come together to campaign for a fee cap rather than an outright ban.

Many industry experts believe that banning fees will only push rents up, as agents will simply pass the additional costs onto landlords.

Landlords and Agents Should Get Behind Fee Cap Plan, Insists AIIC

Landlords and Agents Should Get Behind Fee Cap Plan, Insists AIIC

Research recently compiled by Spicerhaart predicts that tenants paying a monthly rent of £1,000 could end up being charged an additional £900 over the course of an average tenancy if landlords put rents up by just 3%.

The Fair Fees Forum has been created to bring landlords and letting agents together to campaign for a fee cap.

Lead by the National Approved Letting Scheme (NALS), the Fair Fees Forum is seeking to have an active role in the Government’s consultation on the lettings fee ban, as well as organising a meeting with the Housing Minister, Gavin Barwell.

The AIIC agrees that a fee cap would be a fairer way of limiting agents’ fees charged to tenants.

“We’re obviously extremely disappointed with the outcome of the recent Autumn Statement, especially at a time when the rental sector has come under such frequent attack from the Government,” says Patricia Barber, the Chair of the AIIC.

“However, now is not the time to feel sorry for ourselves and shy away; we must stand up, be counted and engage in constructive dialogue with the stakeholders that matter.”

Barber praises the work being conducted by the Fair Fees Forum, and is urging all landlords and letting agents to be as vocal and engaged as possible.

It is expected that a ban on fees will be introduced within the next 12-18 months, following a Government consultation period in the New Year.

Barber explains: “The next few weeks and months are set to be an extremely crucial period in the make up of this proposed ban.

“Rather than complaining about what we consider to be a gross injustice, it will be far more productive if the industry clubs together to explain possible solutions to this problem, the benefits of a cap and possible implications of a blanket ban.”

She adds: “Here at the AIIC, we find it hard to understand why tenants should be serviced with hours of letting agents’ time while benefitting from referencing and inventories – all for free.

“Hopefully, with the aid of some thoughtful lobbying by the property industry, the Government will think carefully about its next move regarding letting agents’ fees.”

Do you support the fee cap plan?

Letting Your Property in Winter – 4 Useful Tips

Published On: December 13, 2016 at 9:28 am

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Finding new tenants for your rental property during the winter months can prove to be a lot harder as compared to all other times of the year. Generally, people tend to avoid moving house in winter, as it poses its own set of problems. However, there are still people moving home during the cold months, for one reason or another, and if you channel your efforts in the right direction, you will be able to find new tenants for your rental. Here are a few tips on how to go about letting your property in winter.

  1. Diversify your marketing

There are different routes tenants take for finding a rental property. About 80% of people search predominantly online. However, if you want to reach as many potential house movers as possible, you should use all other marketing channels you have available too. Don’t neglect the remaining 20% of people – one of them might be your next tenant.

Apart from placing ads online, use the local to let boards to reach people searching for a rental in your particular locality.

Using local classifieds are another marketing strategy you should make the most of. These are preferred by people who want to avoid using letting agents and paying their often high fees.

Letting Your Property in Winter - 4 Useful Tips

Letting Your Property in Winter – 4 Useful Tips

Diversifying your marketing strategy will let you capture a wider audience and, especially in winter, the more people know you are letting your property, the better your chances for closing the deal.

  1. Offer incentives to potential tenants

It’s a great idea, especially in the slow winter months, to offer your potential tenants some kind of an incentive for applying for your rental property. Here’s what you can offer them:

No application fees

Letting agents can sometimes charge as much as £300 for applying for a rental. Many house movers try to avoid that fee by searching for properties to let from private landlords. Advertising that you are not charging any application fees can bring a surprising amount of applicants your way.

Half a rent, or no rent at all, for the first month

This is a really lucrative offer, especially around the holiday season, when tenants usually have limited funds. Sacrificing half or one month’s rent can help you find a tenant a lot faster, and offering this incentive will certainly pay off.

Flexible terms on furniture

If your tenant needs a certain furniture piece, like a wardrobe or bed, it pays off to arrange that piece of furniture for them rather than losing a tenant and a month’s rent. Similarly, if you are letting a furnished property and the tenant wants to bring in their own piece of furniture, like a bed for instance, you should remove the bed from your rental home to make room for it. Being flexible on furniture can help you find a tenant a lot faster, and it is a thought worth considering in the winter, when there are far fewer people who are willing to go through house removals.

  1. Come up with fresh advertising

Usually, a property newly put up on the market is let within the first two weeks. However, winter months can be slower and if your rental has been on the letting market for more than two weeks, you should consider freshening up your advertising. Re-write the property’s description, take fresh photos, point out the good sides of your rental, etc. Re-launch your ad and the audience will view it as a new rental property on the market.

  1. Adjust the price

Last but not least, if you are finding it hard to find tenants for your property in winter, you should reconsider the rental price. Check out what your competitors are offering, re-evaluate your property, decide on a realistic letting price and bring that down by 5%. This discount will draw in more potential tenants, as they will know they are saving in the long-term. It can turn out a lot costlier to lose one month’s rent rather than offer a 5% discount monthly – it adds up to just 60% of a month’s rent over 12 months.

If your property is vacant at the end of autumn or your current tenants are about to move out before winter starts, you should plan well in advance and start advertising your rental at least a month before it becomes vacant. As people are more reluctant to go through house relocation in the winter months, you should do your best to make your property more appealing to potential movers. These four tips would be a great way to start.