If you fancy turning your hand to property investment but unsure where to start, we’ve got it covered. We’ve taken a look at the best place to invest in property in the UK. To work this out, we’ve looked at the average rental yield all UK cities and ranked them accordingly. We’ve worked this out by looking at the average property value and average annual rent in each city. Where does your city rank?
Ranked from bottom to top by average rental yield percentage, here are the results…
68. St Albans – 2.76%
Average property price: £581,041
Average rent: £1,336 pcm
67. Truro – 2.85%
Average property price: £320,611
Average rent: £761 pcm
66. Worcester – 2.87%
Average property price: £260,039
Average rent: £623 pcm
65. Chelmsford – 3.04%
Average property price: £387,413
Average rent: £982 pcm
64. Salisbury – 3.08%
Average property price: £341,338
Average rent: £876 pcm
63. St Asaph – 3.1%
Average property price: £225,104
Average rent: £581 pcm
62. Hereford – 3.14%
Average property price: £249,947
Average rent: £655 pcm
61. Ripon – 3.2%
Average property price: £290,495
Average rent: £774 pcm
60. Lichfield – 3.2%
Average property price: £291,353
Average rent: £777 pcm
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59. Wells – 3.31%
Average property price: £308,536
Average rent: £850 pcm
58. Cambridge – 3.34%
Average property price: £455,104
Average rent: £1,268 pcm
57. Winchester – 3.36%
Average property price: £548,755
Average rent: £1,537 pcm
56. Chichester – 3.4%
Average property price: £428,867
Average rent: £1,214 pcm
55. Wolverhampton – 3.44%
Average property price: £188,146
Average rent: £539 pcm
54. Bath – 3.44%
Average property price: £444,257
Average rent: £1,274 pcm
53. Gloucester – 3.47%
Average property price: £230,997
Average rent: £668 pcm
52. Chester – 3.5%
Average property price: £254,681
Average rent: £742 pcm
51. Perth – 3.5%
Average property price: £202,679
Average rent: £591 pcm
50. Exeter – 3.52%
Average property price: £293,069
Average rent: £860 pcm
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49. York – 3.55%
Average property price: £282,874
Average rent: £837 pcm
48. St David’s – 3.56%
Average property price: £234,104
Average rent: £695 pcm
47. Peterborough – 3.7%
Average property price: £217,668
Average rent: £672 pcm
46. Carlisle – 3.73%
Average property price: £157,070
Average rent: £488 pcm
45. Ely – 3.8%
Average property price: £295,045
Average rent: £935 pcm
44. Norwich – 3.9%
Average property price: £265,871
Average rent: £864 pcm
43. Leicester – 4.01%
Average property price: £216,421
Average rent: £724 pcm
42. Bristol – 4.03%
Average property price: £314,629
Average rent: £1,057 pcm
41. Canterbury – 4.07%
Average property price: £335,782
Average rent: £1,138 pcm
40. Lincoln – 4.07%
Average property price: £192,423
Average rent: £653 pcm
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39. Wakefield – 4.08%
Average property price: £177,810
Average rent: £605 pcm
38. Derby – 4.12%
Average property price: £194,951
Average rent: £669 pcm
37. Lancaster – 4.25%
Average property price: £191,729
Average rent: £679 pcm
36. Dundee – 4.28%
Average rental price: £156,781
Average rent: £559 pcm
35. Southampton – 4.36%
Average rental price: £289,546
Average rent: £1,053 pcm
34. Hull – 4.43%
Average rental price: £133,306
Average rent: £492 pcm
33. Newry – 4.44%
Average rental price: £146,353
Average rent: £542 pcm
32. Oxford – 4.46%
Average property price: £503,570
Average rent: £1,870 pcm
31. Stoke-on-Trent – 4.53%
Average property price: £143,358
Average rent: £541 pcm
30. Bradford – 4.53%
Average property price: £129,444
Average rent: £489 pcm
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29. Aberdeen – 4.58%
Average property price: £197,352
Average rent: £753 pcm
28. Preston – 4.6%
Average property price: £179,405
Average rent: £687 pcm
27. Inverness – 4.68%
Average property price: £177,736
Average rent: £693 pcm
26. Newport – 4.71%
Average property price: £165,970
Average rent: £651 pcm
25. Stirling – 4.78%
Average property price: £194,439
Average rent: £775 pcm
24. Brighton & Hove – 4.79%
Average property price: £385,220
Average rent: £1,537 pcm
23. London – 4.8%
Average property price: £672,390
Average rent: £2,692 pcm
22. Newcastle – 4.81%
Average property price: £203,524
Average rent: £816 pcm
21. Sheffield – 4.91%
Average property price: £187,360
Average rent: £767 pcm
20. Sunderland – 5.02%
Average property price: £139,518
Average rent: £584 pcm
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19. Derry – 5.12%
Average property price: £110,884
Average rent: £473 pcm
18. Glasgow – 5.21%
Average property price: £175,623
Average rent: £762 pcm
17. Lisburn – 5.36%
Average property price: £143,435
Average rent: £641 pcm
16. Plymouth – 5.47%
Average property price: £200,655
Average rent: £914 pcm
15. Cardiff – 5.6%
Average property price: £233,833
Average rent: £1,092 pcm
14. Belfast – 5.72%
Average property price: £153,310
Average rent: £731 pcm
13. Swansea – 5.74%
Average property price: £167,147
Average rent: £799 pcm
12. Liverpool – 5.78%
Average property price: £164,838
Average rent: £794 pcm
11. Portsmouth – 5.81%
Average property price: £227,041
Average rent: £1,100 pcm
10. Edinburgh – 5.89%
Coming in at 10th place is Scotland’s capital Edinburgh. The city is a highly desirable place to live and is a huge cultural hub north of the border. Having said this, property prices are relatively low while rent remains high. This means, Edinburgh is a great place for any landlord to build a portfolio.
Average property price: £268,989
Average rent: £1,320 pcm
9. Nottingham – 5.97%
With a popular university paired with high standard of living, property investment in Nottingham could be a money maker. With a 5.97% average rental yield, this is a serious consideration for anyone looking to make money.
Average property price: £188,609
Average rent: £939 pcm
8. Birmingham – 6.27%
Proclaimed to be the second city in the UK, Birmingham was guaranteed to feature high in this list. The property prices are in line with much of the midlands while rent is high. The popular university also prevents an opportunity for those considering student lets.
Average property price: £188,235
Average rent: £984 pcm
7. Armagh – 6.42%
The Northern Irish city is claimed to be the fifth-least-populous city in the UK. Maybe that goes some way to explaining the low property prices. Rent, at least, is in line with the surrounding area.
Average property price: £105,815
Average rent: £566 pcm
6. Manchester – 6.5%
Though Birmingham takes the title of Britain’s second city, Manchester seems to be stealing the attention. It’s a highly favourable place to live, especially among the younger generations who seek a buzzy metropolitan area. This has led to rent remaining high while property prices sit in line with much of the north of England.
Average property price: £175,872
Average rent: £952 pcm
5. Coventry – 6.64%
Coventry storms ahead into 5th position in our list. As the ninth largest city in the UK, it’s no surprise it features high. The city is the only Midlands spot to break the £1,000 average rent mark.
Average property price: £195,255
Average rent: £1,080 pcm
4. Durham – 6.71%
At the business end of the list we find north-eastern city of Durham. The location is renowned for its beauty and highly respected university. There are plenty of reasons why people are attracted to the city, an alluring potential for investment.
Average property price: £159,146
Average rent: £890 pcm
3. Leeds – 6.89%
Another city that people are naturally driven to. Leeds is metropolitan city renowned for its shopping, nightlife and culture. If you consider the high rent prices and relatively low property prices, you may find yourself building a portfolio here.
Average property price: £204,644
Average rent: £1,175 pcm
2. Salford – 7.53%
If you’re looking to invest in Manchester, you may do better by looking to neighbouring Salford. The city offers similar average rent but with a reduction in average property prices, a win-win!
Average property price: £156,118
Average rent: £979 pcm
1. Bangor – 9.42%
The best place to invest in property in the UK is Bangor – an exceptional opportunity for anyone considering property investment. The house prices are aligned with the local area and pretty low. The average rent is considerably higher, exceeding £1,300 pcm.
Average property price: £169,148
Average rent: £1,328 pcm
All figures accurate on date of publish.
If you’re considering becoming a landlord, don’t get caught up in messy deposit disputes. We can help. Find out how No Letting Go’s inventory services can remove the hassle from the situation.
As a landlord, choosing a letting agent can be tough. It’s a decision which needs careful consideration. In recent years, the rise in popularity of online letting agents has presented an alternative option for your portfolio. But which are best? We’ve done the research so you don’t have to. Here’s our guide to the best online letting agents.
What Are Online Letting Agents?
Online letting agents work in a similar way to traditional agencies but don’t have a physical high street presence. From advertising the property to photography and reference checking, most online agencies will deliver all the services required by landlords. They’re often cheaper and don’t come with as many fees (though these do vary from agency to agency).
So, what are the best online letting agents?
Note: All prices mentioned below are for the top/premium/fully managed packages, lower cost alternatives for hands-on landlords are also offered by all agencies featured.
In alphabetical order…
EasyProperty
From the team behind EasyJet, EasyProperty offers professional letting agency services for reasonable prices. Their Complete package includes everything you’ll need, from professional advert creation to the tenancy agreement.
Price: £299 (Complete Package) + costs for additional services.
Gordon’s
Although primarily an online estate agency, Gordon’s also covers lettings too. The team accompany viewings and negotiate on your behalf. They advertise through the major online platforms and will also produce a full media pack for your property.
Price: Dependent on rent.
House Network
House Network are an experienced online letting agent which puts quality tenants at the forefront of what they do. They do all the legwork for you and their local experts are on hand to make the process as easy and stress-free as possible.
Price: £475 (Premium Landlord Package).
I Am the Agent
Efficient, cost-effective and straightforward, I Am The Agent offers flexibility and simplicity to landlords. Their service allows you to choose what you’d like to receive as part of their package.
Price: £249 (The Whole Shebang Package) + costs for additional service.
LettingaProperty.com
LettingaProperty.com offers all the services of a high street agency but cheaper and with a self-proclaimed ‘higher service level’. In their Platinum package, the agency offers a guarantee that rent is paid on time every month (even if the tenant doesn’t). Home emergency cover with zero excess is also included in this package.
Price: £99 set up fee & £89 per month from collected rent (Platinum Package) + costs for additional services.
Lettingsupermarket.com
Lettingsupermarket.com offers the personal service of a high street agent with the discounted rate of an online platform. With a range of services and a minimum savings of 60% over high street options, this is an attractive option for landlords.
Price: Available upon application.
Make Ur Move
Make Ur Move offers a variety of lettings services, ‘from DIY to VIP’. You can easily upgrade your package at any time, to complement the level of service you require as a landlord.
Price: Dependent on inclusions/exclusions.
Mirus
Mirus utilises the skills and expertise of their consultants to offer an ‘unrivalled professional experience’. With a real emphasis on instilling trust and confidence in landlords, this service is driven forward by a highly experienced team.
Price: £99+VAT (Mirus Two).
My Online Estate Agent
My Online Estate Agent claim to work exactly like the best high street lettings agent but charge a fraction of the price. The site claims to achieve an average of 21 enquiries from interested tenants per property.
Price: £199 (Essentials Plus) + costs for additional services.
No Agent
No Agent is a platform designed by landlords for landlords. They describe themselves as ‘the 21st Century upgrade to landlording you’ve been waiting for’. They offer full property management for a fixed fee, ideal for those seeking a low maintenance rental process.
Price: £45 per month in London, £35 per month everywhere else + costs for additional services.
OpenRent
OpenRent is an online agency designed for optimum efficiency while maintaining quality and security. With transparent and easy-to-understand packages, this is a platform designed to take the stress from a notoriously painful process.
Price: £49 (Advertising & Rent Now Package) + costs for additional services.
Pad
Pad is the UK’s first fully mobile lettings agent. Their tenants verify, offer, sign and pay with the click of a button. They claim to be the lowest cost lettings service and will make you the highest return. They pride themselves on their tech and logistics which gives them an edge on the competition. They currently operate in London, listing properties for 1 – 12 month assured tenancies.
Price: £399 (AST Viewing Package), £199 per room (HMO Viewing Package).
Portico Direct
Portico Direct is an online letting agent that enables landlords to advertise directly on Rightmove and Zoopla without using a traditional estate agent. Their newly developed service is available throughout the UK, and listing on the major portals costs from just £1.
Price: £1 to list the property on Rightmove and Zoopla. Optional extras are £20 for a tenancy agreement, £20 for referencing, £20 for deposit registration.
Purple Bricks
Whether you want to manage your portfolio hands-on or leave the fuss to the agency, Purple Bricks can help. Arguably one of the largest names in the industry right now, this is an online letting agency that’s tried and tested by landlords up and down the country.
Price: Contact for a free no-obligation valuation.
Rentround
Rentround compare letting agent fees & ratings in your area and reduce rental costs for your property. We compare insurance, energy bills, mortgages… and now letting agents.
Rentify
Rentify offers an intriguing offer to landlords. They remove any possibility of voids, arrears or repair costs. The agency will inspect your property and make a rent offer. Once this is agreed, they guarantee rent payment for three years. You leave the rest up to them. This system offers complete security and alleviation of hassle.
Price: On consultation.
Rentlord
Rentlord is an online platform designed for helping self-managing landlords. This allows landlords to manage their portfolio entirely online. This makes the admin and legal work of landlords much easier and stress-free.
Price: £14.99 per month (Premium Plan).
Rent My Home
Rent My Home looks to create a speedy and effective letting process for landlords. They put a large emphasis on transparency, creating a clear and honest package for landlords.
Price: Dependant on package inclusions.
The Online Letting Agents
The Online Letting Agents claim to work differently to other online letting agents. Before sending a lead to a landlord, they get further information from the viewer to ensure that they will be a suitable prospective tenant, saving the landlord time and effort. They also regularly review online advertisements to ensure its always performing its best. Currently, The Online Letting Agents are the highest rated online letting agent on Trustpilot in the categories of property, property leasing agent, property rental agent and estate agent categories.
Price: Tenant find from £89, Property management from £30 per month (set up fee applies)
Upad
The UK’s largest online letting agent. Upad allows landlords to pick and choose the services they want included in the package. When you work with Upad, your property will be advertised to over 10 million potential tenants through sites like Rightmove, Zoopla and prime Location.
Price: £399 (Complete Package).
Urban.co.uk
Described by The Sunday Times as ‘one of the top online agents’ and a winner at the Landlord & Letting Awards 2016/2017, Urban.co.uk comes highly recommended. The agency are proud of their reputation and consistently receive high praise from their customers.
Price: £399+VAT & £79 per month (Full Management Package).
Visum
Operating since 2004, Visum is the UK’s oldest online letting and estate agent. With a track record of working with over 30,000 properties, Visum pride themselves on their rich experience in the industry. The site has been conceived by genuine landlords and estate agents who are able to offer expert help with the process.
Price: £79 (Plus Advertising 3 Month Package) + costs for additional services.
Being a landlord can be tough and stressful. Don’t let deposit disputes add yet another burden to your job. With No Letting Go inventory services, we will safeguard your investment with a meticulously prepared, unbiased inventory at both check-in and check-out stages of the tenancy. Find out more about how our inventory services can help you.
It’s the three words landlords despise: wear and tear. But what does it actually mean? Is wear and tear an excuse for carelessness or can it be measured? Where does wear and tear end and damage begin?
We understand exactly how confusing the issue can be. We also understand how it can reflect upon a landlord or tenant. That’s why we’re bringing you our guide to fair wear and tear to offer some answers and solutions.
What is Wear and Tear?
This question is certainly a tricky one. The truth is, wear and tear differs from situation to situation and there are many grey areas.
Having said this, common sense must always be placed at the forefront. If you fit fresh white carpet in a bedroom, you can’t expect it to remain fresh and white a year later. If that same carpet is burnt and stained with red wine marks, it can be considered damaged.
There are a few key points that affect the definition of fair wear and tear:
- Length of tenancy – the longer the tenancy, the more wear and tear you’ll see.
- Number of occupants – the more occupants in a property, the more likely there’ll be wear and tear.
- Age of occupants – when there’s children in a property, there’s a higher chance of wear and tear.
- Quality of the property – if you’ve got a newly refurbished property, there should be little wear and tear. Having said this, wear and tear in new properties is far more apparent.
Negligence and Recklessness
If something requires repairing or replacing, intensive cleaning or the care of a specialist, it’s most likely been damaged. Holes in walls, burn marks and broken furniture are all examples of damage. It’s worth asking whether the issue has come about due to negligent or reckless behaviour.
How to Prevent Wear and Tear?
One of the best ways to deal with this problem is to prevent it from happening in the first place. If you want to maintain the original condition of the rental property, there are a few handy tips to keep any issues to an absolute minimum:
Decorate Appropriately
Don’t create a showroom house which looks perfect but will never be used. Furnish your rental appropriately for the property you have. This means opting for the durable fixtures and fittings which will stand the test of time. Buying cheap is tempting as a landlord but you’ll forever be replacing items.
Keep the Property Clean and Well Maintained
It sounds so simple but this really does go a long way. You set the acceptable standard for your tenant. If the property is immaculate when they move in, they’ll want to keep it that way, minimising cleaning costs at the end of the tenancy. Regular property maintenance will also help to avoid any nasty surprises at the end of the tenancy.
Be a Good Landlord
Again, this is pretty much as basic as it comes. If you keep the tenant happy and show your professionalism, especially in the event of a dispute, they’re more likely to treat the property with respect. Be prompt in addressing repairs and maintenance issues.
Make yourself easily available. If you show that you care, they will too.
Look for Long Term Tenants
This can be a little tricky but it’s worth it in the long run. Look for tenants that will actually stay at your property for an extended period of time. These long-term tenants are more likely to take pride and ownership of your property.
Regular Inspections
There are some very clear rules on how you must approach a landlord inspection – you can’t just turn up and take a look around.
Schedule in a quarterly inspection and make note of any wear and tear or damage before it gets too far. Address the issue there and then if needed. Inspections are a great way of quelling problems before they get too far.
Set Your Expectations
There’s no harm in outlining your expectations in the tenancy agreement from the very beginning. Explain to your tenant that the property will require regular cleaning and maintenance to ensure it stays in a good condition. Wear and tear in your property is just as important as any other property-related issue (such as unpaid rent) and should be treated as such.
One way to set your expectations is to provide tenants with a pre-check out service that gives them a better picture of the tasks they need to complete before giving back the keys. This can minimise wear and tear, prevent disputes and result in a smoother transition period.
What Constitutes Wear & Tear?
Here are a few issues you may encounter which should be labelled as general wear and tear:
- Small marks/stains on carpets
- Small scuffs/marks on walls
- Naturally worn down carpets
- Loose hinges/handles on doors
- Faded/cracked paint
- Frayed fabric
- Small tears/cracks on furniture
- Faded curtains
- Dirty windows
- Loose/tight tap handles
Examples of Damage
Like the above list, here are a few examples of what can be considered damage:
- Broken locks
- Broken doors
- Tears, large stains or burns on carpet
- Large scratches on wooden floors
- Burnt/split kitchen worktops
- Holes in walls
- Poorly painted surfaces
- Torn curtains
- Broken windows
- Broken toilet seat
An Inventory Check In & Check Out
One of the biggest issues surrounding wear and tear is the tenancy deposit disputes that occur when a landlord and tenant disagrees.
With No Letting Go’s inventory services, you’ll receive the peace of mind which comes with an impartial, fully documented check in and check out procedure. Our service is reliable and consistent producing reports which stand up to scrutiny during any dispute.
A thorough inventory report will provide evidence of the property and its contents at the start of the tenancy and at the end to help landlords and agents cover the cost of any damage made on the premises by the tenant.
Discover our property inventory services today.
If you’re a landlord in a university town or city, you’ve probably seen the potential in student rentals. There are plenty of advantages in renting to students. Having said this, there are some pretty awful issues you could encounter too. Are students really as bad as people make out? Is your investment safe with them? If you’re sat asking yourself ‘should I rent to students?’ we’ve got a little advice and guidance to help you find the right answer.
The Strange World of Students
Students can seem like an entirely different species. Thankfully, they’re actually pretty simple. For most, this will be their first time living in private accommodation. They’ll need a little hand holding but this tends to come from the parents. They’re often told to ask specific questions, they’ll be informed of what to say and they’ll pour plenty of time over their contract. They may take longer in the initial signing process but remain supportive and up-front – they just want to make sure you’re not a cowboy.
Usually students aren’t too fussy – they’ve heard the horror stories and are happy to find your property clean and warm. If you can offer a tidy and furnished house with warm running water, they’ll be content. However, there are some health and safety requirements that can’t be ignored!
Be warned though, not all students are the same. There are some very obvious cues worth noting. First of all, if you’re renting to a group of eight boys, all of which are on the university’s rugby team – expect lots of parties. Use your common sense with this one. You may well want to rent to a group like this, just know what to expect.
Party, Party, Party!
Right, let’s get this out in the open now. It’s very likely your student tenants will throw a party or at least invite friends over for a night of intoxicated fun. We highly recommend banning parties in the tenancy agreement – this is there more as a deterrent than something to enforce. The sooner you accept that parties will take place, the easier it will be letting to students.
Advantages of Renting to Students
There are some serious advantages that come with being a student landlord, here are some of the more notable points:
- Demand – If you own a property in the heart of a town/city’s student area, there will always be a demand for housing irrelevant of any ongoing economic difficulties.
- Duration – Students tend to rent for 12 month periods. No long term contract obligations.
- Predictability – The student rental market is one of the most predictable, always handy for landlords hoping to rest easy at night.
- Imperfections – The beauty of renting to students is that your property doesn’t need to be perfect.
- Furnishings – There’s no point investing in expensive furnishings. Head to Ikea and buy cheap.
- High yields – There’s often more students living in a house than there would be in a regular tenancy.
- Intelligence – Students by nature are intelligent (there are exceptions). This means any issues tend to be resolved relatively simply with open communication.
Disadvantages of Renting to Students
All sounding too good to be true? That’s because it is, there are some very clear drawbacks in renting to students:
- Furnishings – All students expect a fully furnished property which entails the upkeep and maintenance of white goods.
- Wear and tear – All student properties are more prone to wear and tear. Expect phone calls out of the blue about a broken sofa or bed.
- Repaint – We know plenty of student landlords that have to pay for a fresh lick of paint on the walls every year.
- Wannabee lawyer – Some students can get a bee in their bonnet about the contract. They’ll become adamant you’re trying to mess them over. The wannabee lawyer can be a particularly frustrating student to let to.
- Private halls – Private accommodation for second and third year students is on the rise. Usually students prefer the experience of living in a house with friends but private halls are a real threat that’s worth your attention.
- Maintenance bills – Maintenance bills are usually more expensive than those in a regular tenancy.
- Screening – You can’t reference or credit check students, this can be worrying.
- Finance – Students are notoriously poor with money. Their finances can come from student loans, grants, part-time jobs and parents. This instability can be a little frightening to landlords.
- Summer holiday – Depending on the tenancy agreement, you could experience void periods during the summer holiday.
Student Rental Action Points
So you’ve decided to take the dive and let to students? Here are a few action points to set you on your way:
- Go to a shop like Ikea or Argos to buy your furniture. Don’t spend much money on this at all, you want something cheap and cheerful.
- Get students to provide a guarantor, this will usually be their parents. Do this and you’ll get your money even if the student can’t pay up.
- Become a university approved landlord. There’s often a few checks needed but this is worth doing to market your student let.
- Hold your student’s hands. Remember, they’ve probably not done this before – help them. Reassure them throughout the process. Go a step further and include a welcome pack for when they move in. In this, you can feature a few rules and even instruct them on how to use the boiler, heating, washing machine, etc.
- Consider the possibility of dropouts. It’s worth including a clause in the tenancy agreement which states it’s the tenants’ responsibility to find a replacement housemate if one drops out.
- Licence your property as a HMO (house in multiple occupation). Local councils have differing regulations for this but it cannot be ignored.
Student lets are prone to sudden and dramatic damage. The inventory process is imperative with this type of let. Remove the stress and any potential disagreements with No Letting Go’s inventory services. Find out more about how we can help protect your property investment here.
The subject of lodger deposits has always been one of a great many grey areas for both landlords and tenants.
Given the fact that every penny of the deposit money technically belongs to the tenant or lodger, and that deposit disputes can take time and money, it is in everyone’s best interest to ensure both sides fully understand their rights and obligations.
From carrying out a comprehensive check-in inventory at move in, to knowing your rights as a landlord, letting agent or lodger – we explore how to negotiate the return of the lodger deposit.
What is the Difference Between a Lodger and a Tenant?
The difference between a lodger and a tenant is:
- A tenant pays rent and lives in a property you own but do not live in
- A lodger lives in the same property as you and pays rent
Negotiating the return of a deposit if you are a lodger, living in student halls or living at the same property as your landlord is a slightly different process to that of the standard rental property tenant.
The most important difference in regard to rights, is that landlords and letting agents are not required to place a lodger deposit into a deposit protection scheme.
In comparison, lodger agreements are called licenses rather than tenancy agreements and landlords are legally permitted to give a reasonable notice period anywhere from 14 days to 28 days. The time period should be set out in the original license and agreed upon by both landlord and lodger.
How Much Is A Deposit?
A standard lodger’s deposit tends to be one month’s rent. However, this isn’t fixed and some landlords and letting agents demand up to 6 weeks.
Negotiating the Return of a Lodger Deposit: First Steps
When the time comes to begin negotiating the return of a deposit, the first step is for the lodger to request the return in writing. Lodgers should write directly to the landlord and ask them to return the deposit, being sure to keep copies of all correspondence in both directions. You may be required to produce evidence of such requests at a later time, so it’s a good idea to hold onto them.
The best time to return the deposit to a former lodger is after they have moved out with their possessions and you have checked the room thoroughly for any damage.
Lodger Deposit Protection
What’s different about this particular scenario is the way in which lodgers are not considered short-hold tenants, which means the landlord is not under any legal requirement to protect deposits using an appropriate tenancy deposit scheme. This doesn’t necessarily affect lodger’s actual rights when it comes to the deposit in general but can affect the negotiation and deposit return processes.
Establish a Deadline
Most professional landlord inventory services in the UK agree that problems generally occur when lodgers are not direct and/or demanding enough when it comes to requesting what is rightfully theirs. If the deposit should have been returned but has not, the best course of action is to begin with a written request for its immediate return with a specified deadline – something like two weeks.
Lodgers can also take the opportunity to ask in the letter why the deposit has not yet been refunded, along with whether or not they can expect any deductions to be made and the respective reasons.
If unsure how to go about this, there are plenty of useful templates available online.
Lodger Deposit Disputes and Deductions
As a lodger landlord, you are required to clearly list and explain any deductions to be taken from the deposit. If you fully agree with your lodger that the deductions are fair, you can confirm your agreement and arrange for the remaining deposit to be refunded.
If deductions are made, though no breakdown or explanation is provided, lodgers can request that this is done urgently. And if there are any deductions you do not agree with, you may need to dispute the deposit.
What are Reasonable Deductions?
Landlords and letting agents can deduct money from the lodger’s deposit if the lodger has any outstanding rent or if they have caused any damage to their rented living space. Damage above the level of fair wear and tear could include damage or stains on furniture or furnishings or missing items from the inventory.
Lodger Agreement Deposit Return: Court Action
From time to time, disputes cannot be resolved through talking alone and you may find that your lodger takes court action. Lodgers can also claim online through the Courts & Tribunals Service.
For a claim to be successful, it will need plenty of documented evidence of attempts to recover the deposit manually, as well as evidence in regard to the condition of the rented space at check-out.
Landlords do have the option of making an offer before the case proceeds any further.
Don’t Skip the Inventory Report
One way to ensure the return of the lodger deposit goes smoothly, without resorting to the courts is to have a detailed inventory report in place.
A professional inventory report can;
- Provide evidence of the condition of the room or property at the start and end of the lodging period
- Provide evidence of the condition of furniture and furnishings
- Provide lodgers with check-out information to minimise disputes
If you’re a resident landlord or a letting agent looking to take the stress out of the inventory process, find out how No Letting Go can help with our wide range of property inventory services.
What do millennials think about the current housing situation? With this infographic – Open Property Group help us better understand the risks and challenges facing the ‘Generation Rent’.
If you’re a landlord, tenant or agency feeling the stress of inventories, contact No Letting Go to see how we can remove the strain.
Renting with a housemate can be a tricky proposition if the person you intend to live with is not a close friend or family member. And even at that, it is easy to quickly become enemies if housemates are not on the same page. Before you agree to live with someone on a long-term basis, be sure to take the necessary steps to protect yourself. Those steps include interviewing any and all potential candidates.
Here are five questions to ask every potential housemate:
1. What is your current housing situation and why are you planning to move?
Most people looking to move are doing so because of work or life changes that are completely legitimate. Others are moving under less desirable circumstances: they are unemployed, they were forced to leave their previous housing arrangement, they could not pay the mortgage, etc. It is always a good idea to know as much as possible about the housing history of potential candidates so that you don’t end up supporting a stranger. It is no different than getting typical flat inventory in the UK.
2. What is your current employment situation and history?
Anyone you choose as a housemate should have steady employment that pays well enough for that person to cover his or her share of the rent and common expenses. Be wary of potential candidates who seem to change jobs every four or five months. Hopefully, you can find someone with a stable employment history and fairly dependable income. Otherwise, you would again have the potential of supporting a complete stranger in the future.
3. Will you agree to check-in and check-out?
Local property inventories are commonplace among landlords with large property portfolios. If you are renting from a landlord with a smaller portfolio, a property inventory may not be included. Ask any future housemates whether they are willing to agree to a check-in and check-out at both ends of the tenancy. An inventory check of all shared spaces and the potential housemate’s room would be the minimum.
4. What is your current relationship status?
Just like a check-in inventory is necessary to protect your deposit, a relationship inventory might be needed to preserve your sanity. It’s important to know if any potential housemates are involved in long-term relationships that could result in romantic partners spending enough time at your flat to actually become residents. There is room for partners staying over now and then, but having them live with you without being actual tenants is a no.
5. Do you have any health issues or personal idiosyncrasies?
Every potential housemate has his or her own way of doing things. Most of these things can be accommodated. However, some candidates may have particular health issues that could be problematic. For example, food allergies can be very serious. And, of course, there are some people with strange idiosyncrasies that could lead to unnecessary fighting and bickering. As uncomfortable as it is, you need to ask about such things.
Renting with a housemate is one way to reduce your living expenses and enjoy some company every now and again. But choose your housemates wisely. A poor choice could come back on you in ways you never imagined.
If you’re a tenant, landlord or agency dealing with the stresses of inventories, you’re not alone. Find out how No Letting Go can help.
Photo sources: flickr.com/photos/julio_ – flickr.com/photos/serenejournal
The buy-to-let market continues to be one of the hottest investment markets in the UK. People are purchasing properties and building portfolios in anticipation of providing the kind of retirement they would never get from a pension. But as with any other investment, becoming a landlord also means added responsibility. There are mortgages to pay, tenants to deal with, and a myriad of maintenance and upkeep issues. If you don’t know what you’re doing, being a landlord could become a nightmare.
Here are five common mistakes landlords make along with ways to avoid them:
1. Failing to Properly Screen Potential Tenants
Tenants are the lifeblood of any property portfolio. The last thing a landlord needs are tenants who do not pay their rent or who abuse property with very little discretion. A good way to end up with these kinds of tenants is to fail to screen potential candidates correctly. Screening is an absolute must.
One of the best ways to do this is to use a letting agent. Letting agents are experts at tenant screening, and they have access to certain tools that make it easier to discover questionable rental histories and other potential problems. Using a letting agent is well worth the money spent.
2. Failing to Have a Property Inventory in Place
There are companies that provide national property inventory checks for landlords at very reasonable prices. Yet some landlords fail to take advantage of this. By failing to have a property inventory in place, those landlords are taking a big risk in assuming that tenants will take good care of the property throughout their tenancy.
The solution to this mistake is very simple: work with a local or national inventory company to do a complete inventory of your property. Furthermore, utilise a check-in and check-out at both ends of the lease. There are plenty of companies offering landlord’s inventory UK-wide at excellent prices; utilise them.
3. Failing to Keep Tenants Happy
The successful landlord is a landlord able to secure and maintain long-term leases. The longer tenants can be kept in the property, the more financially secure the property becomes. On the other hand, constantly turning over unhappy tenants increases the landlord’s risk of void periods in which the mortgage still has to be paid despite no rental payments coming in. Not keeping tenants happy is a big mistake.
Landlords can avoid this mistake by doing whatever they can to make the tenant experience unforgettably pleasant. For example, you do not have to charge market value rents just because you can. If you can offer a lower rent and still cover your expenses and make a profit, you will have a happy tenant who is less likely to look around for something cheaper near the end of the tenancy.
4. Choosing Properties in the Wrong Location
Residential property is a lot like commercial property in the sense that location is crucial. The most desirable renters tend to want homes in neighbourhoods that are safe and have access to common amenities like public transportation, entertainment options, good schools, and additional opportunities for the family. Choosing properties in bad locations can turn what a landlord hoped to be a great investment into a financial disaster.
The best way to avoid this mistake is to do plenty of research before you purchase. Landlords can work with a specialist property company who deals only in buy-to-let investments; such companies are usually very good at determining which neighbourhoods are desirable and which are not.
5. Failing to Save Money
Owning rental property is essentially a business. And as with any business, there are certain capital expenses that are unavoidable. Landlords who fail to save money for such capital expenses can easily find themselves in financial trouble when things go wrong. If things get too bad, they could jeopardise the business.
Landlords should establish a savings account into which they routinely deposit a portion of every rental payment they receive. The money should not be touched for anything other than making capital improvements or emergency expenses. When money is taken out of the account, it needs to be replaced as quickly as possible.
Being a landlord is a very good way to establish a stable and comfortable income. But it is not without responsibilities. The most successful landlords know what it takes to run a property business and make every effort to avoid the most common mistakes.
Everybody needs a home, right? Some purchase, others rent, and still others are content to live with family for the rest of their lives. It’s all good. Well, mostly anyway. Every housing arrangement has its pros and cons to deal with. Where renting is concerned, there are some unique advantages and disadvantages that only renters are familiar with.
From noisy neighbours to an uncooperative landlord, renters do have to stay on their toes. Here are the ten worst things about renting you may already be familiar with:
1. Absentee Landlords
Landlords are known to use all kinds of professional services to make their lives easier. They include letting agents, property management companies, and rental inventory services. UK landlords may utilise such services but still pay close attention to their properties. The same cannot be said for foreign landlords. Those who are not based here tend to be absentee landlords who do not necessarily put a lot of time and effort into the properties.
2. Risking Your Deposit
Few things are as frustrating to renters than having to fight to get the deposit back at the end of a tenancy. Disputes over deposits arise from disagreements over the condition of the property at the start and end of the lease. Renters can protect themselves by insisting on both a check-in and check-out. The landlord can contract with a flat inventory company to handle the details.
3. Limited Decorating Freedom
Landlords understandably want to limit the number of physical changes made to their properties so as to keep their maintenance and remodelling expenses as low as possible. But this often translates into limited decorating freedom for tenants. Therefore, renters have to be very creative in order to decorate without running afoul of the landlord’s property inventory check.
4. Potentially Obnoxious Neighbours
If there is one thing renters know all too well, it is that you can’t control your neighbours. You might end up with someone who is sweet as pie and a joy to have around. Then again, you might end up with an obnoxious neighbour whose dictionary doesn’t include the word ‘quiet’. These days it seems there are more obnoxious neighbours than nice ones.
5. Laundry Is a Hassle
Unless you live in a flat with an in-house washing machine included you will probably have to leave your unit to do your laundry elsewhere. Back at home, you may be limited in the amount of space you have to hang your wet laundry to dry. The long and short of it is that doing laundry in a flat is a hassle.
6. Limited Outdoor Space
Some people choose to rent because they do not want outdoor garden space to have to care for. For everyone else, a little outdoor space would be nice. Most flats don’t provide nearly enough, requiring tenants to go to parks and other public spaces just to get outdoors for a while.
7. Lack of Natural Lighting
Your average flat is not a wide open space with lots of windows letting in natural light. This is not good for someone who adores the sunshine and blue skies. But, you make do. Keep your blinds open as often as possible without compromising your privacy.
8. Appliances Can Be Questionable
What makes a fun conversation for a group of renters? Standing around and talking about appliances. One renter might be dealing with a cooker and refrigerator from the Thatcher era while another has appliances that are barely recognisable as such. You never know what you are going to get when you move to a new flat.
9. Mail and Packages
Standard mail is usually not a problem for renters on a day-to-day basis, but packages can be a real challenge. When no-one is home to accept a package, it could be left unattended in front of the door or held hostage by a neighbour or the leasing office. There is just no good way to receive packages if you are a renter living in a flat.
10. Limited Storage
The UK is not known for abundant personal storage even in the nicest of single-family homes. Storage is an even bigger problem for renters. They have to be extremely creative, using every bit of open space they can find. Thank goodness for storage beds and modular shelving!
So there you have it – the ten worst things about renting. There are, though, just as many ways to turn it around and make the most of your home.
On 11 March 2015 Housing Minister Brandon Lewis announced that landlords will be required by law to install working smoke and carbon monoxide alarms in their properties.
The draft legislation says:
A relevant landlord in respect of a specified tenancy must ensure that
- during any period beginning on or after 1st October 2015 when the premises are occupied under the
- a smoke detector is equipped on each storey of the premises on which there is a room used wholly or partly as living accommodation (this includes bathrooms, toilets halls and landings)
- a carbon monoxide detector is equipped in any room of the premises which is used as living accommodation and contains a solid fuel burning combustion appliance; and
(b) checks are made by or on behalf of the landlord to ensure that each prescribed detector is in proper working order on the day the tenancy begins if it is a new tenancy.
With just three weeks to go, the draft Regulations have still not been approved by Parliament and, on Monday 7th September, the House of Lords threw them out and demanded it should debate them.
A week later – on Monday 14th September – Parliament has finally approved the Smoke and Carbon Monoxide Alarm (England) Regulations 2015.
The deadline is October 1st and local authorities will fine landlords who fail to comply up to £5,000.
Aside from the impending legislation, as part of our standard service No Letting Go now offer smoke detector and carbon monoxide testing at the point of inventory and checkout. We always strive to provide the best service possible by raising our standards and ensuring the health & safety of all our clients, that’s why we recommend that you buy and install alarms in your properties.
For more information call: 01322 555128 or email: [email protected]
Updated on 15/09/15
Photo source: wikipedia.org – nest.com