Lots of people dream about running their own business – for reasons which range from escaping the commute, spending more time with family or to simply fulfill an ambition and earn more money.
And one of the best ways to begin is to become a franchisee which will help you become quickly established with a business that is tried and tested.
Having a franchise means you will get the help and support you need for your business to do well and this is where becoming a franchisee for No Letting Go becomes a win-win situation.
You don’t need expensive overheads such as an office, you don’t need prior experience of the property market – you just need a computer, access to the internet and a ‘can do’ attitude.
Nick Lyons is the managing director of No Letting Go and he says: “Running a business from home is tough but the upside outweighs the downside – there’s no commuting, there is lots of flexibility, it’s cheap to do and you do get to spend more time with your family.
“However, there’s no getting away from the fact that you will have to work extra hard in networking, getting out and mixing with client prospects and then you have the possible loneliness because you don’t mix with other people as you may have done previously.”
As a home-based No Letting Go franchise you may still have clients visiting so you can’t afford to be sat around in your pyjamas all day long and you still have to report to a regional office.
Nick adds: “Franchising is a great opportunity for the right people. The reward potential is enormous but it still requires energy, discipline and dedication to be successful.”
There are franchising opportunities for a wide range of industries and No Letting Go have become the leaders in what is termed inventory management. That is when an inventory is made at a property for the landlord which is independent as well as being fair and accurate.
Like many opportunities, franchising is about what you put into it. It is not a short cut to success and you will need to be professional in your outlook and establish a routine that works for you which means no slacking to watch TV or entertaining people to coffee on a regular basis.
It also means that you need an office space which, ideally, has a door so you can keep distractions and family on the other side of it. Everyone needs to understand that when the door is closed, then you are at ‘work’ and should not be disturbed.
It’s only natural that some people won’t understand the difference and think that being at home means you are available for chores or favours. You will have to be firm – relent once and it will become a common feature and will lead to working for longer trying to get the work done.
Some people will also struggle to get their ‘business head on’ which is to say they don’t commute and don’t have that time between home and work to focus from one place to the next. It helps to dress as if you are going out to work.
The next big issue is spending long periods by yourself. Let’s be honest: after years of working in hectic office environments, this is going to take some getting used to.
You will need to structure your day and allocate time to achieving a set list of tasks. You will also need regular breaks from the computer and to get some fresh air and exercise. Do not start playing computer games or over-indulging in social media such as Facebook or Twitter – turn them off and you will reap the rewards.
It may also be a great idea to start networking and joining business clubs (especially if you become a franchisee of No Letting Go because the potential contacts you make could bring money in).
Finally, working from home is a great way to earn a living but if you don’t take time to make friends and create new networks then who will you boast to about your successes?
For more information about becoming a franchisee with the fast-expanding business No Letting Go, then visit: https://nolettinggo.co.uk/join-our-inventory-management-team.html or call 0800 8815 366.
No Letting Go are the UK’s leading provider of inventory management services, providing check in and check out services, property inventory and condition reports and specialist on site services to landlords, lettings agents and property professionals.
From all the media stories, no-one is quite sure whether the property market is booming or not!
The simple answer is that the buy-to-let sector is doing very well but it would be doing even better if there were more new properties to buy. There’s an increasing market in the number of people looking to rent which means that demand is pushing up rents.
Indeed, the Council of Mortgage Lenders recently said that investing in houses and flats to rent is growing in popularity once more.
They say that the number of buy-to-let properties soared by 84,000 last year – with buy-to-let mortgages now accounting for nearly 13 per cent of the total outstanding value of home loans in the UK.
That means that investing in property to rent is a worthwhile proposition once again.
But let’s not kid ourselves about the current situation for prospective investors. While the buy-to-let market is picking up, it’s nowhere near the heady heights of the 2007 property boom. And most of the investors picking up properties for their letting portfolios are cash-rich investors.
It makes sense really: property prices are relatively low and rent prices are still fairly high which means that there’s a good return on your investment.
And the market for renting a home in the UK is continuing to grow.
Estate agents Countrywide say that last year, more than 275,000 new tenants registered for private rental accommodation – a 24 per cent increase on the previous year.
Across most of the UK there is a shortage of property to rent which means rental prices are remaining high and increasing in some areas.
Potential landlords can still buy property to enjoy the rental market using buy-to-let mortgages from many lenders. In fact, there’s so much competition for a potential landlord’s business that the average borrowing rate on a buy-to-let mortgage has fallen in recent months.
The headline of this article is: How is the shortage of new properties affecting the buy to let market? However, it would be wiser to read this as: How is the shortage of new good quality properties affecting the buy to let market?
That’s because the population of the UK is growing and it’s a relatively transient one – people are moving to where the work is and they are willing to pay for a good quality home.
Though there is no doubt that underpinning the buy-to-let market is the fact that not enough new homes are being built and people are living longer as well as the fact that there are more single person occupied homes.
For more information and advice on the current state of the buy-to-let market, contact the UK’s premium provider of landlord services NoLettingGo.co.uk or call 0800 8815 366.
No Letting Go are the UK’s leading provider of inventory management services, providing check in and check out services, property inventory and condition reports and specialist on site services to landlords, lettings agents and property professionals.
It’s always a situation you hope, as a landlord, you don’t have to deal with – when a tenant leaves early.
Not only do you have the issues of finding another tenant you also have the potential legal issues to deal with surrounding the tenant’s leaving.
First things first: you should have in your tenancy agreement a clause that covers such an occurrence. This is vital – especially if the tenant’s leaving turns into a legal dispute.
When a tenant puts in a request to terminate and leave early from a fixed term tenancy it is essentially a negotiation between them and the landlord. (The issue is clouded if there is one tenant leaving, leaving others behind and this would be covered by ‘Surrender in Part’ and is a slightly different issue).
A landlord is not obliged to let a tenant break the terms of the tenancy but it’s often common sense to negotiate. You need to calculate any loss of fees you may incur – which in itself may be disputed – or whether your clause for early termination has an actual penalty value to cover the costs you will have to carry and is one agreed by the tenant when s/he signs the contract.
A leaving tenant may also find the landlord a replacement tenant. Do not at any point say yes to the new tenant without carrying out your usual vetting procedures. They may be a perfectly good tenant but they aren’t taking over the tenancy as theirs will be a fresh contract.
This situation is going to occur so it’s more of a situation of how you handle the transition. By working with the leaving tenant you will part on good terms and avoid any missed rent payments.
It’s always wise to talk since any costs you incur funding a replacement will have to be borne by the leaving tenant (or, if you have a penalty clause, the costs will be covered by that).
When a tenant decides to leave a property is something of a legal grey area.
There is no legislation covering this eventuality and landlords need to set the terms for early termination, notice of termination and how the notice is served. This is purely a contractual matter between landlord and tenant.
This termination date needs to be agreed. You should get a proper ‘Surrender of Tenancy Letter’ which will act as a written document and which will then be proof that the tenant has given up possession of the property to the landlord.
If the tenancy agreement between landlord and tenant does not have a break clause and the landlord refuses to accept the termination notice then the tenant is contractually liable to pay the remaining rent balance for the fixed term tenancy.
This is where the art of negotiation is necessary. If there are seven months remaining on the tenancy then you could both settle on four months rent as a settlement to quit.
For more information and advice about how to deal with one tenant leaving during a tenancy, contact the UK’s premium provider of landlord services NoLettingGo.co.uk or call 0800 8815 366.
No Letting Go are the UK’s leading provider of inventory management services, providing check in and check out services, property inventory and condition reports and specialist on site services to landlords, lettings agents and property professionals.
With student market nearly upon us, New Student Publications carried out an interesting straw survey on Student Landlord Problems
Different categories were addressed covering areas from unpaid rent to cleanliness issues.
Unpaid rent, filthy tenants and panicking about filling your properties for next year?
The results were astounding, with over 14% of landlords saying that their current biggest problem is just finding tenants to take their properties and fill in any gaps should someone drop out during a contract, with more than 2% feeling like they are struggling just to get viewings. One agent simply said “we have unlet properties remaining for July 2011, the situation is worse than in previous years” In a similar 2009 survey finding tenants was also the biggest problem raised by landlords.
Dirty Tenants
Landlords cited dirty tenants as their second biggest problem, with 16% left to pick up massive cleaning bills, or called out at 4am to change a lightbulb. The general consensus was “students don’t take care of the property or make any effort to keep the house clean.” 3.5% of agents thought that students demanded a much higher standard of accommodation than ever before, although it seems that tenants are unwilling to take out contracts for a full twelve months, with one landlord struggling to get even shorter terms “the majority of people contact me to rent for one or two months.”
Pressure From Pupose Built Halls
Many of the landlords surveyed said that they felt increased pressure from new purpose built student villages found in many city centres; more than 8% of those surveyed would eradicate those villages if we gave them one wish! 2% of landlords are afraid that their properties were not close enough to ‘hotspots’ and so would soon be abandoned in favour of more central locations.
Unpaid Rent
11% of businesses struggle with unpaid rent, while 2% note that this messes with their cash flow and although some are sympathetic to the issues caused by the Student Loans Company, most are fixed on the bigger picture; “a lot of time is spent chasing payment. Students seem to think that it is not always necessary for them to pay their rent.” This coupled with tenants excessively using all inclusive utilities means that businesses are less profitable. One landlord’s wish was simply that we could ‘undo the recession’ as 8 different landlords complained of increases to the cost of maintaining their properties to a decent standard.
Relax Regulations
Bogged down with HMO paperwork and expense? Over 18% of those surveyed would love to change or relax the regulations and the council powers to control them. One landlord stated; “there should be a national guide for HMO legislation.” Some landlords feel so strongly about HMO licensing that they named specific city councils or even actual councillors as their biggest fear for the future. 3 landlords said they had qualms about council schemes to shift populations from one area of a city to another, and how it would affect their business.
Worries Over Tuition Fee Increase
Landlords are worried about the tuition fee increase, with more than 14% saying that if they had one wish, they would fight the fees and leave the system as it stands, a worry which probably contributes to 13% of them saying that they feel the future of the market is uncertain, as some students may choose to stay at home to study. Competition from the university owned housing is a headache too, with 4% saying an increase in that sort of accommodation would be detrimental to their ability to let.
Problems With Advertising
Landlords raised the issue of advertising, when to do it and how the culture of marketing lets so early can damage the business, with nearly 5% of landlords thinking there should be a guideline that means property is marketed in January and not before. 4% thought university accommodation offices charged them too much for advertising, and 5% would like to see cheaper, and more effective advertising available to them.
Deposit Protection Unfair
Some landlords were concerned that the existing Deposit Protection Scheme did not offer them enough scope to reclaim money for damage to their properties. Eight separate landlords would like to see the entire system revised, with 1% of those surveyed listing it as their biggest problem. A case from the survey highlights the DPS’s flaws; “£1500 worth of damage but ex tenants refuse to give consent to DPS to pay the landlord.” And some feel that from a legal standpoint the law does not protect them, 3% of landlords would like to see more legislation to protect the financial interests of the landlord.
Worries Over The Potential Drop In Student Numbers
And what of the future of the student property market? More than half of those surveyed were very worried about the potential drop in student numbers next year, with one landlord summing up the problems this will create; “if student numbers drop because of the £9,000 a year course fees then we might see empty houses, lower rents or both.” A worry shared by 3% of those surveyed, who fear the contraction in the market will mean a forced reduction of rents, while other suggested offering shorter term contracts or starting to appeal to the housing benefit market was the only way to keep the business afloat.
No Problems At All
But this isn’t the full picture. Almost 9% of those surveyed have no major problems with the lettings market, their tenants or filling their properties. One landlord is more than happy with his tenants; “we enjoy our students. We pride ourselves in helping them learn how to care for and run the house. We regard them as ‘professionals-in-training’ and teach them what they should reasonably expect from a landlord and what they should reasonably do as a tenant.” One respondent would use a magic wand to change the public’s attitude towards students; “they tend to live in larger houses that are too big for modern families and therefore almost act as guardians for some of our most impressive architecture. They should be seen as a positive part of any community.”
| Top 5 biggest fears for the future | Number of responses | Percentage |
| Fewer students in the future | 101 | 54% |
| Student villages | 15 | 8% |
| Legislation increasing workload | 15 | 8% |
| Unpaid rent due to fees | 10 | 5% |
| Universities moving into market | 8 | 4% |
| Top 5 current biggest problems | Number of responses | Percentage |
| Bad tenants | 51 | 13.6% |
| Uncertainty for the future | 49 | 13.1% |
| Finding tenants | 48 | 12% |
| Unpaid rent | 41 | 11% |
| HMOs | 17 | 4.5% |
No Letting Go are working with a number of student letting agents and bodies around the UK to help protect both landlords and tenants from many of the issues arising from cleanliness and deposit protection. Better use of Inventory services, checking tenants in, property visits and managing the check out is critical to ensuring that potential problems are dealt with in advance and issues arising from check outs are dealt with quickly and efficiently. Contact No Letting Go on 0800 881 5366 or find your nearest office at www.nolettinggo.co.uk
Compiled by Emma Parker New Student – Student Housing Magazines – www.newstudent.co.uk
The uptake of HomeLet’s new tenant reference, Optimum, which guarantees to remove the tenant if they fail to pay the rent, is up 150 per cent on projected sales figures. With inflation and unemployment rising the popularity of this product has been attributed to growing concern of rental arrears.
Commenting on the news HomeLet MD, John Boyle explained, “Naturally we’re pleased with the uptake of our new ‘Optimum’ reference, we developed this product specifically to counter the concerns of both our letting agent customers and their landlords. With rents remaining high conditions are particularly hard for tenants at the moment. The latest statistics make for grim reading; inflation is way up on the Bank of England’s targets and unemployment is continuing to creep upwards. These and other factors sadly mean that 2011 will be a tough year for many tenants’ which is obviously a major concern for landlords, who are also facing these difficult conditions.”
According to the latest Residential Lettings Survey from the Royal Institution of Chartered Surveyors strong tenant demand resulted in rents rising rapidly in the three months to the end of January. Figures released by the Council of Mortgage Lenders show that number of new mortgages lent to house buyers slumped by 29 per cent in January when compared to December. With lending likely to remain low throughout the year, demand for rented property is likely to push rents up further in 2011.
Matt Billingham, Owner, Billingham Cooke Estate Agents said, “Demand for high quality rented property is only going to increase in 2011. In many areas across the country tenants are already bracing themselves for an expected increase in rents. For many a rise in rents whilst inflation is so high will only increase the pressure on their budgets and many landlords are starting to realise that a service, which provides an element of cover should a tenant fail to pay the rent, is essential.”
Commenting on Optimum, Sara Bailey, Manager, Aquarius Homes said, “More landlords are asking for a service that also offers to protect their investment income. We’ve seen a number of traditionally safe tenants who’ve passed their references with flying colours fall on hard times, especially with the cuts in the public sector. This is a real concern for landlords, especially reluctant landlords or those with highly geared investments.”
John Boyle concluded, “Following the credit crunch, housing agency Threshold reported an increase in threatened or actual cases of illegal eviction. Evicting a tenant can be a difficult, costly and emotional process, and landlords shouldn’t take matters in to their own hands.
“When they’re covered by Optimum, through their local letting agent, our in-house Legal and Claims department take care of everything whilst ensuring that tenants are treated fairly and that every letter of the law is followed when obtaining vacant possession of a property. We also offer a range of products that provide missed rental payments as well as legal cover.”
Source: Property Drum Newsletter
Two lettings firms, one in London and the other in Torbay, have been expelled by The Property Ombudsman scheme.
Madisons of 7, Odeon Parade, 468, London Road, Isleworth, was expelled for failing to pass on rent it had collected and for mishandling tenants’ deposits.
However TPO is required under the terms of the Consumers, Estate Agents and Redress Act 2007, to maintain Madisons’ registration for sales activities.
The Disciplinary Standards Committee (DSC) of the TPO Council considered a number of complaints where Madisons collected rent and did not pass it on.
When the matter was referred to the Ombudsman he determined that the rent should be paid over to the landlords, and that compensation be paid for breaches of the TPO Code of Practice for Letting Agents in the firm’s general failing to provide a service consistent with fairness, integrity and best practice. In one case, although the rents have now been paid, the compensatory award made by the Ombudsman has not been met.
“This has been a sorry and frustrating business for both Madisons’ clients and TPO,” said Gerry Fitzjohn (right), vice chairman of the company operating TPO.
“It concerns us that while we can expel their lettings business from the scheme we have no option but to continue registration for their sales business until the Office of Fair Trading bans the agent.
“In the meantime, it is our duty to make the public aware of the situation regarding Madisons.”
The second firm to be expelled is Torbay Residential Lettings (TRL), of 49 Market Street, Torquay.
The firm had breached several aspects of the TPO Code of Practice for letting agents by not co-operating with the Ombudsman’s investigation, not paying the award made by the Ombudsman after he had found the firm had not registered the tenants’ deposit, failing to complete a proper check-out process, and failing to provide an appropriate form of tenancy agreement.
The Disciplinary Standards Committee (DSC) of the TPO Council, in deciding to expel TRL also noted that one of the directors of the firm had been jailed for three years in January, 2010, for child cruelty and perverting the course of justice.
The remaining director considered that the dispute being decided upon by the Ombudsman was not the firm’s responsibility because the complaint arose from the actions of the jailed director. The DSC took the view that this was not relevant and the firm was liable to meet its obligations as a TPO member.
“Such behaviour is unacceptable,” said Gerry Fitzjohn. “Our scheme’s primary purpose is to resolve disputes between agents and consumers but we also aim to raise professionalism and insist on certain levels of service. Where these are not met, we make it clear that an agent is no longer fit for membership and recommend the public take notice of this.”
TDS state that the following percentage awards (in terms of deposits held) were made during 2010
Percentage of awards made to tenant – 56%
Percentage of awards made to landlord – 42%
Percentage of awards made to agents – 2%
The lack of landlord generated accurate paperwork seems to still be a problem.
TDS state that in 2009/10 the top three causes of disputes were as follows:
Cleaning – found in 46% of complaints
Damage – found in 29% of complaints
Redecoration – found in 24% of complaints
I read a great article written for Upad this week….if you missed it then here it is. It is always good to remember the basics.
The Buy-to-Let boom is unlikely to return any time soon. A serious lack of good deals from BTL mortgage lenders is compounded by a distinct absence of confidence right now. But it does look like those green shoots of optimism are starting to appear again and 2011 may well be the year when a little cheer returns for budding Buy to Let landlords.
Tenant demand has never been stronger and banks say they want to lend again. Combine that with rising rents in many areas and a housing market that continues to splutter, and you’d be right to think that now is a good time to reconsider a Buy to Let investment.
And invest is the key word. Buying to let is just another way of getting your capital to work as hard as it possibly can for you in order to generate returns. How you do that is up to you. Perhaps you want the boost of a monthly rental income from a property. Or you could fancy a longer term punt and hope to rake in the cash when you sell the property some way down the line. But whatever your intentions, make sure you don’t make any of the common errors that often put a Buy to Let landlord’s investment at risk.
Don’t spend too much for too little return.
Calculate what you can afford and take into account all the expenses of being a landlord. Don’t overstretch yourself. Be realistic about your finances and take professional advice on taking out an appropriate mortgage. Consider future interest rates. Over the next few years, interest rate rises are inevitable. Don’t be caught out: will your investment be as attractive if any mortgage payments you make rise dramatically?
Being a landlord also attracts all manner of expenses and they can sometimes come out of the blue. Ensure that you can afford them and also that they don’t dent the profitability of your investment. In a rented flat, the boiler could go kaput at considerable expense or a service charge bill could come out of the blue. Expect the unexpected.
Remember that your rental income might occasionally be reduced. Tenants might miss the rent and get into arrears or you could experience voids between tenants when the property isn’t generating any revenue. Ensure that you should mitigate against these and that you can afford to keep going through the leaner times.
Don’t forget to “futureproof” your investment.
Many landlords come a cropper because they spot a cracking property at a great price and just go for it. Don’t forget Elvis: only fools rush in. With a little local research, you might discover why the property is such a bargain. Is the location up to scratch? Is crime a problem? Is a new motorway just about to plough through the local nature reserve? Maybe a supermarket is planned for the end of the road? It doesn’t take much nous to do some research and understand what’s happening in the area. A bargain property is always a bargain for a reason. Just make sure that some third-party development isn’t going to blight your enterprise.
Buy for your tenants, not yourself.
Channel your inner Vulcan, disengage your emotions and buy a property that will generate a fine return. That’s the challenge Don’t fall into that all-too-common trap and buy a place you like but which is entirely unsuitable for the tenants you have in mind. And be careful to approach the decoration and fittings of your property in the same way. Go for generic colours and furnishings and think of your future tenants at all times.
Don’t forget the taxman. (He won’t forget you!)
In general terms (and you are best advised to consult a professional accountant on such matters), if you are making more than £2500 profit on your property each year you’ll need to file a self-assessment tax return. So make a merit of it. You can claim tax relief on certain expenses you incur as a landlord. A canny accountant will help you pay not a penny more (and not a penny less) than you have to and is well worth the expense for all the expertise they can offer.
Do you understand the role of a landlord?
Sometimes landlords jeopardise their investment by failing to appreciate and understand the legal frameworks that surround every landlord. Firstly, whilst it may be your house, it isn’t your home. You can’t just pop by on a whim and you are also responsible for maintaining the property in a fit state for the tenants. Bone up on the law, read a few books and keep up with the news. Joining one of the landlord associations out there is always a good idea.
An interesting story below on Landlordzone from the AIIC supports No Letting Go’s policy of detail first, technology second. Read on……
The use of technology in inventories could end up costing landlords far more than they bargained for, according to The Association of Independent Inventory Clerks (AIIC).
The perception of inventories by some lettings agents is that inventories can be very long, time-consuming and somewhat of a laborious process, resulting in several landlords and management companies opting for the use of technology in inventories, believing it will save them time and money.
The use of technology in inventories claims to help landlords and management companies to complete inventories in a matter of minutes, with the ability to add large quantities of photographs which can provide evidence in tenancy dispute claims.
In reality, whilst some systems are considerably better than others, most technology, including digital photography, does not allow for the inclusion of sufficient detail to provide indisputable evidence of original condition at the start of a tenancy.
For this reason in many tenancy dispute cases according to The AIIC, the adjudicators have thrown out technology-based inventories, as they cannot deliver the level of detail required which means that the landlord can lose hundreds of pounds in lost cases.
Pat Barber, Chair of The AIIC, comments: “Inventory reports should contain a full description of a property and its contents with details on every bit of damage and its exact location at the start of a tenancy. As an inventory is a binding legal document that provides a complete record of the condition and contents of a property, it is only effective if it is accurate.
“Without an accurate and properly detailed inventory, a landlord has no evidence to prove that the property has been damaged in any way during the tenancy and therefore will find it almost impossible to withhold any deposit money from the tenants.
The AIIC is committed to excellence and professionalism in the property inventory process and works hard to ensure that all landlords, tenants and letting agents understand the importance and benefits of professionally completed property inventories.
The aim of the AIIC is to ensure that every landlord, tenant and agent in the UK is aware of the importance of the inventory process and the benefits of employing an independent, professional inventory clerk.
Nick Lyons commented on the above article saying “No Letting Go believe technology is critical to improve the speed of the inventory, aid in management of paperwork and to help reduce costs, but not at the expense of the detail of an inventory”