Ending a tenancy can be awkward for both tenants and property professionals. Dealing with tenancy deposit returns, outstanding rent and resolving disputes can take time and a lot of effort. So, how can tenants and landlords alike ensure the end of tenancy goes smoothly?
No Letting Go’s chief operations officer, Lisa Williamson recently joined Richard Blanco on his podcast ‘Inside Property’ to discuss the types of issues that can arise and how to resolve them through unbiased, end of tenancy services.
Lisa was joined by Suzy Hershman, head of dispute resolution at My Deposits, and Al McClenahan, the director of Justice4Tenants to get a full picture from all sides of the story.
Here is a roundup of the key insights that came out of the programme;
Start as You Mean to End
Lisa’s top tip on ending a tenancy well is to determine a clear position from the start. The way to do this is through a well thought out inventory including detailed but concise information, clear photographs and a comprehensive list of contents and condition.
Creating a tenancy format which is easy to read by both parties is essential for avoiding confusion at the end of the tenancy.
Another tip for landlords from Lisa is to ensure that tenants sign the inventory report to avoid deduction disputes during check out.
An Unbiased Outlook is Key
One question that arose in the podcast was whether landlords should create their own inventory reports.
While it’s completely fair for a landlord to perform their own survey, they run the risk of using emotional language which can be interpreted in different ways.
This is where an independent inventory service can resolve issues. No Letting Go inventory reports include a glossary of terms to determine the condition and cleanliness of items in the property. For example, rather than a landlord using the word ‘immaculate’ to describe a piece of furniture which could come across as biased or open to interpretation, instead ‘professionally clean’ is a clearly explained term in the NLG glossary.
Another benefit of using a professional, unbiased property inventory service is that in the case of a dispute over deposit returns, judicators can clearly understand the benchmarks.
Are Pre-Check Out Meetings A Good Idea?
As an active landlord himself, Richard highlighted the benefit of arranging pre-check out meetings with tenants to go over what is expected of them during the moving out process.
This all sounds well and good, but the question is, who will pay for it? Landlords and tenants may be reluctant to fork out this extra cost, but it could save money further down the line.
Alternatively, providing tenants with an end of tenancy letter detailing all the tasks that need to be completed before moving out is a great way to prevent confusion over where responsibilities lie. This can include the date and time of the key handover and what needs to be cleaned.
End of Tenancy Property Cleaning
As the head of dispute resolution at My Deposit, Suzie Hershman has a lot of experience dealing with the common issues affecting landlords and tenants during the checkout process.
According to Suzie, cleaning comes top of the list when it comes to end of tenancy disputes.
The resolution is simple. Start with an inventory report which plainly states the condition of the property and how it is expected to be maintained. For example, if the property has a garden, the inventory needs to clearly state that the grass needs to be cut or the paving de-weeded and power washed before leaving the property.
Other issues that can arise include whose responsibility it is for window cleaning and whether professional carpet cleaning needs to be undertaken.
The main rule of thumb for tenants, is that the property needs to be returned in the original state as at the start of the tenancy. This may involve hiring an end of tenancy cleaning service (make sure you keep the receipt as evidence) or giving the property a thorough clean yourself. Either way, ensure you leave on the last day of your tenancy confident everything looks the same as it did when you moved in!
Fair wear and tear can be a bit of a grey area when it comes to cleaning. Suzie recommends that landlords should think of the items in their property as having a lifespan. A carpet or decor has an average lifespan of 5 years, which needs to be taken into consideration during the checkout report.
Managing the Landlord-Tenant Relationship
According to Al from Justice4Tenants, the main reason for the breakdown of the landlord- tenant relationship at the end of a tenancy is disputes over deposit deductions.
Al attributed this to poor inventories which leave too much room for interpretation and miscommunication, which is more common when landlords create their own.
Another common reason for strained relationships is when tenants are in arrears at the end of the tenancy agreement. To minimise conflict, Al recommends that tenants are as open and communicative with their landlord about their financial difficulties to help landlords remain understanding until the issue can be resolved.
However, when landlords view their role purely from an investment perspective and ignore the human side of the relationship, this is when disputes are likely to arise. The lesson? Landlords who are more understanding and willing to negotiate are likely to have better relationships with their tenants, resulting in a smoother parting.
How Will the Letting Agency Fee Ban Effect End of Tenancy?
There has been much discussion over what changes the letting agency fee ban will bring to the industry. However, for now, Lisa doesn’t see much change to the way check out reports will be processed.
Currently, landlords usually pay for the inventory, and for either check-in or check-out services while the tenant pays for the other. This means there is only one cost that needs to be recuperated by landlords.
According to Lisa, most landlords and tenants can see the advantages of having these services managed by independent professionals.
Unbiased End of Tenancy Services from No Letting Go
To ensure the end of a tenancy goes as smoothly as possible and you retain a positive relationship throughout, using an independent property service can help resolve issues and disputes before they arise.
No Letting Go provides all the documentation needed at the start and end of a tenancy to determine how much money is deducted from the deposit. Using the latest technology, No Letting Go can advise against fair wear and tear and create reports to ensure you are fully compliant with regulations.
To see the full list of services on offer, head to the No Letting Go services page.
Achieving a high rental yield is one of the main goals for successful landlords. In order to cover the costs of mortgage repayments, repairs and maintenance, an adequate rental yield is essential to stay afloat.
Although you may feel constrained by property location or property prices, there are ways to maximise profits and cut outgoings.
From making simple renovations, to targeting specific tenants, here’s some straightforward advice on how to increase rental yield on your rental property.
What Does Rental Yield Mean?
As a landlord, you’ll be more than familiar with the importance of rental yields. For anyone new to the game or thinking of taking the plunge into property investment, here’s a simple definition.
Rental yield is the annual return on investment you make as a landlord on a buy-to-let property. It’s the remaining amount of money left over after rent, divided by the value of the property and is expressed as a percentage.
How to Work Out Rental Yield on Rental Property
To work out the rental yield of your property, first deduct all annual expenses and outgoings from the annual rental income, then divide this number by the purchase price of the property. Next, times this number by 100 to find the percentage yield.
Alternatively, find a free rental yield calculator online to do the hard work for you.
What is a Good Rental Yield?
In order to comfortably cover outgoings, a rental yield of 8% or more is deemed good.
However, the average rental yield differs vastly depending on location. For example, cities like Liverpool and Nottingham enjoy higher rental yields of up to 12%, while London is more challenging and tends to stay around 4 – 5%.
Decide on a Tenant Profile
Having an ideal tenant profile in mind makes it easier to tailor your property to the needs and desires of tenants. By offering an attractive property to specific renters, you’ll be able to charge premium prices and stand out from the crowd.
For example, if you are renting to young professionals, it’s worth choosing properties in areas with good transport links and furnishing the property with convenient mod-cons.
Whereas families are more interested in space, excellent local schools and extra bedrooms.
It’s impossible to please everyone. Maximise rental yields by catering to a specific tenant group and provide them with what they really want.
Location, Location, Location
As always, location is key when it comes to improving rental return.
Picking an up-and-coming area is a good idea, as property purchase prices are lower and there is potential for increased rental income as the area expands. Somewhere with good transport links, access to great schools and a growing number of bars and shops is a safe bet.
Go Green for Tenants
With sustainable living becoming increasingly popular, improving insulation and making green changes to your rental property could strengthen the appeal to certain tenants.
Improving the energy efficiency rating of your property not only saves you money on energy bills,but is also a big deciding factor for potential tenants.
Think About Facilities
Equipping your property with high quality, time-saving facilities such as dishwashers, driers and high-speed Wi-Fi will attract more tenants and place your rental property ahead of the competition.
Think about what your ideal tenant profile wants out of a rental property and go from there.
Can You Add Another Bedroom or Bathroom?
Adding a second, third or fourth bedroom to your rental property is a guaranteed way of boosting rental yield.
If a property has a large living space that isn’t entirely necessary, turning it into a bedroom could drastically improve cash flow! Just take care to comply with bedroom regulations, especially if you plan to turn it into an HMO property.
A second bathroom is another way of adding value. Although this requires a little more upheaval, the results can be well worth it, especially in larger properties.
Keep Things Fresh
If larger scale renovation is out of your budget, simple, affordable updates such as new tiling in the bathroom or a fresh lick of paint can work wonders in attracting the best tenants.
The more you can do to make your property attractive to potential tenants, the more rent you can responsibly command.
Maximise Space for Maximum Yields
Another way to add value and appeal to renters is to maximise every inch of space in your property.
This doesn’t have to mean adding extra bedrooms. It can be something as simple as providing inbuilt cupboards and clever storage spaces. This is especially important if you’re targeting growing families.
Consider Allowing Pets
Flexibility is a trait highly valued by prospective tenants. From allowing minor aesthetic alterations to saying yes to pets, remaining open to tenants helps grow your yield in the long run.
Rental properties which allow pets tend to be few and far between which means they are able to command more rent- another easy way to increase your rental yield!
Avoid Vacant Periods
Naturally, extended vacant periods will have a negative impact on your rental yield.
Asking current tenants what their plans are well in advance of the end of a tenancy is one way you can avoid this. Early preparation means you can start advertising for new occupants quickly.
In the case of an extended void period, it may be worth lowering the rent requirements to encourage tenants and minimise losses.
Make Regular Rent Reviews
It’s important to keep up with the rest of the property market. Keeping a finger on the pulse and raising or lowering rent as needed is essential for maintaining and increasing rental yield.
Factors such as a new school in the area can dramatically increase rent prices, so don’t miss out on opportunities to cash in on your property investments.
Assess Your Outgoings
Taking a regular look at all of your outgoings is an important part of managing your finances. You may find that a few simple changes could be surprisingly profitable.
Mortgage rates, for example, are always changing, and it’s possible to find good deals on property insurance on comparison websites.
Keep your eyes peeled for deals to cut costs and improve rental yield.
Keep Up to Date with Regulations
Part of being a responsible landlord includes keeping up to date with current health and safety regulations. Good maintenance of your rental property results in long-term tenancies and increased interest from renters.
Save Time and Money with A Professional Property Service
Instead of spending your time as a property manager, answering queries and sorting out viewings and check ins, allocating tasks to property professionals can help streamline your business, saving you time and money.
No Letting Go provide comprehensive property reports and essential services such as inventory management to help landlords protect their investment and increase yields.
For more information on how No Letting Go could help, visit our services page here.
Landlords and inventories… Should they mix?
Anyone who has anything to do with the world of renting, be that landlords, letting agents or tenants, will understand the importance of inventories.
But, the question is, should people carry out inventories themselves? If so, what’s some advice they shouldn’t forget? What can still go wrong?
Let’s take a closer look at professional vs DIY inventories.
The Ins & Outs of Inventories
It’s easy to see why so many letting agents offer property inventory service, and why so many landlords carry these services out themselves.
Inventories are beneficial for all parties. They help solve, or even prevent, disputes at the end of a tenancy, and provide peace of mind for everyone concerned.
Furthermore, they help protect the property from damage, determine fair wear and tear, and ensure tenants get their deposits back by ensuring no unjust deductions are made.
A good inventory will also reduce the risk of harassment during the tenancy, from either side, as everything will have been recorded previously.
Therefore, it’s essential these inventories are carried out correctly.
Is Going Professional an Unnecessary Expense?
But, is hiring a professional to do the inventory a waste of money?
Some believe that simply having an inventory in place is sufficient. Taking a few photos of the rooms, and any furnishings, should be enough to prevent disputes arising.
Why spend money on something you could do yourself? Also if landlords or letting agents sit down with their tenants to go through the inventory together, surely this eradicates the risk of disputes?
Plus, all tenancy agreements will state the condition the property is expected to be maintained in. Therefore, paying for professional inventory services can seem like an unnecessary expense.
What Issues Can Arise with DIY Inventories?
But, despite the initial upfront costs, a professional, independent inventory can end up saving landlords and letting agents more money in the long run.
So, what issues can arise when people do inventories themselves?
The Devil’s in the Detail
If an inventory lacks sufficient detail, what’s the point?
Many letting agents and landlords appear to think that photos are all that’s needed. However, ‘a picture is worth a thousand words’ doesn’t necessarily apply to the property industry, as you can only tell so much from one photo.
In certain lights, and from certain angles, a room or space can look completely different in a picture.
Also, with DIY inventories, important aspects can be accidentally omitted, as those carrying them out simply don’t consider them. For example, floor tiles. These can be cracked or damaged in some way, but without an inventory, this will be difficult to prove.
So, while an inventory is in place to prevent a dispute, it may end up causing one if not done correctly.
Finding the Time
With all the many different jobs and priorities letting agents and landlords have, inventories often fall to the bottom of the to-do list.
As a result, it’s easy for certain things to slip through the net, and some details are accidentally omitted, causing problems for everyone concerned.
Lack of ‘Know-How’
How many people can confidently claim they understand all the ins and outs of inventories?
For most letting agents, inventories aren’t their speciality. They’re something the business offers, without having fully developed skills or expertise in the area.
Meanwhile, many landlords aren’t necessarily experts in the property industry, particularly where inventories are concerned.
This can lead to inventories taking longer than they should, and lacking in certain parts. If the information isn’t there, it means specific points can’t be discussed at the end of the tenancy.
With an inventory company, these risks are eradicated.
Room for Disagreement
Not everyone’s definition of ‘clean’ or ‘damaged’ are the same. This not only allows room for disagreement, but also for one party to be exploited.
A landlord or letting agent may record something in the inventory from their own point of view. This may seem unfair to the tenant, and without pictures as evidence, a deposit deduction may be unjust.
On the other hand, simply going through the inventory with your tenant at the start of the tenancy might be putting too much faith in their honesty. Tenancy references are undeniably useful, but can’t show you someone’s true character! Some tenants may try to use a lacking inventory as an exploitative measure.
Tips for DIY Inventories
Despite the risk of certain problems arising, many letting agents and landlords continue to carry out their own inventories.
So, what are some handy hints no landlord or agent should forget?
The More Words the Better
Photos should be used as evidence to back-up points made in the inventory, not form the core of it.
Many fall down the trap of having too many photographs and not enough words. This leaves a question mark around the true condition of the property.
Writing everything down, in as much detail as possible, makes for the best inventories. Words will provide the details needed, and a photo can be used to support any claims made.
Clarity
Inventories should provide clarity.
Therefore, everything needs to be written down and recorded as clearly as possible. This ensures landlords, letting agents and tenants alike are better covered.
An inventory shouldn’t create disputes, but prevent them! When it comes to your property, you can never be too thorough.
Details As Well As Facts
Don’t simply list the key features!
If a floor is carpeted, also take down notes on the condition of the carpet. With inventory reports, facts aren’t sufficient without details to back them up!
The Benefits of Hiring an Inventory Expert
But, inevitably, hiring a third party has indisputable benefits, such as:
Help Getting Signatures
Getting signatures is a vital part of any inventory.
An independent third party has a duty of care to both landlords and tenants, stamping out any risk of a conflict of interests.
If one party, for example the tenant, doesn’t want to be present during the signing, an inventory expert can sign for them.
The key here is that a third party will be unbiased. This only has benefits for everyone involved.
Expertise in the Area
Why not hire the best in the field to do the job?
Getting help from a third party allows letting agents to do their job, excelling in their areas of expertise, while ensuring the inventory is being carried out to the highest possible standard.
Landlords can rest easier at night in the knowledge that the risk of disagreements or deposit disputes at the end of the tenancy has been dramatically reduced.
Solve Disputes Before They Occur
Inventories should be in place so that landlords and letting agents can take a proactive, rather than reactive, approach if any issues arise.
A professionally compiled inventory will determine any disputes at the beginning of the tenancy. At the end, it’s too late!
Preventing disputes is much more desirable than solving them after they’ve occured.
When it comes to your property, why take the risk?
Provide a Safety Net
For landlords, tenants and letting agents, a professional inventory is like a comfort blanket. They carry a lot more weight than DIY versions, simply because of the third party expert. Think of them as an independent adjudicator!
All parties concerned can rest assured in the knowledge an unbiased professional has carried out the inventory.
In many aspects of our lives, we choose a professional service. Why not apply the same principle to inventories?
No Letting Go specialise in providing comprehensive, unbiased, detailed inventories. We’ll take out the hassle of carrying them out for you, by ensuring every inventory is done by an expert, to the highest standard. This will not only help mediate disputes, but prevent them altogether, ensuring every tenancy is a happy one! Find out more about our inventory services here.
Being a landlord is tough, busy and time consuming work. Thankfully though, there’s plenty of new technology out there that can make life easier for the average UK landlord. It can be difficult to know where to start when it comes to choosing the best mobile apps. And how can you be sure these apps will make your profession any easier? What are the best apps for landlords?
From local landlord inventory services to helpful communication software (and everything in between) the market is huge. So here’s our pick of the best apps worth trying. Think we’ve missed something off the list? Get in touch on Twitter and tell us your thoughts.
The Landlord App
The name really says it all. The Landlord App basically offers a comprehensive selection of features to help landlords operate and manage their businesses more effectively. From finding new tenants to scheduling utility bill payments, it can even help with chasing payments owed as well as much more. Coming highly recommended by the vast majority of landlord inventory services in the UK, this is app is worth a try.
DIY Landlord
By landlords, for landlords. DIY Landlord allows the user to keep track of all their current rented properties. Offering key financial information like cash flow and rental payments, the app’s main dashboard will become a sight for sore eyes. If you’ve got a large property portfolio, this app will save you significant time, stress and worry.
Scanbot
Ideal for keeping track of your most important documents, Scanbot allows the user to create high quality JPEG or PDF copies of documents in a matter of seconds. From contracts to receipts to invoices and so on. Simply use your smartphone’s camera to instantly scan and record your documents. Copies are saved in excess of 200dpi for outstanding quality and the app does a great job of reducing motion blur.
Mobile Landlord
Forget the filing cabinet of paperwork, the Mobile Landlord app covers everything. Create a profile for up to five properties and keep all relevant information in one place. From tenancy details and expenditure to key trade contacts, this app covers it all. You can even set key reminders like updating the Gas Safety Certificate.
Rightmove
The Rightmove app takes everything the market-leading online estate agency offers and slips it into your pocket. It’s one of the best and most important apps you’ll find for keeping an eye on local markets and assessing property values/rent averages. Advice on property research and staying on the pulse of the property market could even help you negotiate a house price. It can also be a fantastic app to use if you plan on using Rightmove to advertise your property.
Tenancy Agreement
Let’s face it, tenancy agreements are some of the more tedious parts of the job. With the Tenancy Agreement app, you can create a professional tenancy agreement on your smartphone in a timely and hassle free manner.
Home Decorating Ideas
Interior design can be a confusing world! Especially for the uninitiated. If you’re a landlord crying out for inspiration, the Home Decorating Ideas app is on hand to help. Get free tips on interior design and save any snaps that take your fancy.
RenTracker Property Management
When you’re a landlord letting to various tenants, it can be difficult to keep track of all rent due dates and financial deadlines. RenTracker Property Management is here to help. This app tracks your finances including rent payments, expenses and taxes. It also gives you the opportunity to export your financial reports.
Ask A Lawyer
Got an important legal question to ask but don’t have the money or means to arrange a consultation. Ask a Lawyer is the answer. The app allows landlords to ask those burning questions about their business and receive expert answers and advice from qualified, experienced legal professionals. Best of all, it’s completely free!
Landlordy
Landlordy markets itself as the ultimate mobile companion for the DIY landlord, and it’s not hard to see why. With the ability to help you track rent payments, manage expenses and even prepare rent invoices you really should downloaded and use this app. It even gives you the option of exporting and sharing the data with your accountant, so that your finances are always up to date.
It sounds so simple but it’s often overlooked. Keep up-to-date with tenants with WhatsApp. If your property is a HMO, create a house group chat including all tenants. This will help resolve any internal issues and can even boost tenant moral (happy tenants are likely to stay in your property longer).
Landlord Property Buddy
Ditch the complicated excel spreadsheets, Landlord Property Buddy has got your back. This app offers a full range of property management services and comes highly recommended. Offering assistance with income/expenditure, transaction reporting, reminders, document safekeeping as well as invoices and tenant details. This app helps manage the full landlord experience to make your life a little easier.
Fixflo
Fixflo is one of the best apps of its kind. It serves as a convenient and reliable method for reporting and recording minor to moderate maintenance issues. The tenant is able to describe the problem, take a picture of it with their device and send it straight to the landlord’s device. It can also be used to report things like graffiti and vandalism, dumped rubbish, abandoned vehicles and more.
Kaptur Inventory Pro
Designed by property inventory experts for busy professionals in the property sector, Kaptur is the very latest property information collecting tablet technology. This offers the most efficient way to collect, prepare, report and manage information. Find out more about how Kaptur Inventory Pro can help you here.
If you’re a landlord suffering with the headache of rental inventories, find out how No Letting Go can help.
The Property Redress Scheme (PRS) is holding its first Agent Educational Workshop at The Strand Palace Hotel in London on Wednesday 16 March. The morning workshop will give agents a chance to get advice and guidance on essential industry topics.
Speakers include Paul Shamplina from Landlord Action, member of the PRS Advisory Council and known for the Channel 5 programme “Nightmare Tenants, Slum Landlords”. He will cover what an agent can do to retain a landlord when a tenancy goes wrong.
The workshop also gives delegates a chance to benefit from the experience of Sean Hooker, Head of Redress at the PRS and a guest on BBC Breakfast as an adviser on property matters. Sean will talk about effective complaint handling covering how you deal with a complaint can have a massive impact on how quickly and successfully it is resolved.
Inventories are also an important part of any successful letting business. Our CEO & Co-Founder – Nick Lyons – gives tips on best practice to offer the highest quality letting inventory services available and demonstrates Kaptur – the latest property information collecting tablet technology.
Finally, Suzy Hershman, Head of Dispute Resolution at mydeposits, will offer a detailed insight in how to provide quality evidence for disputes relating to tenancy deposit protection schemes. From 1st April mydeposits will offer free custodial tenancy deposit protection in addition to its popular insurance-based tenancy deposit protection that counts over 3000 letting agent members.
For agents, this event is an unmissable opportunity to get expert advice and network with key industry players. For Members of the PRS the cost is only £40, while non-members fee is £60. There is limited availability of spaces but PRS Members can bring a friend at the Member price. Refreshments including lunch are provided and all delegates will receive a certificate of attendance. Buy your tickets here.
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.
Who among us does not appreciate the beautiful lights and festive decorations of Christmas? If you are the kind of person who likes to decorate for the holidays, this is the time of year when your creative juices can begin flowing. But wait. What if you rent a flat rather than owning your property, meaning that you have to consider flat rental inventory? Decorating for Christmas can be a bit more iffy.
Before you begin putting up the fairy lights and stockings, take a look at your lease agreement to see what it says. The agreement may include restrictions about how you can attach things to the walls; it might even stipulate whether or not you can bring a living pine tree into your residence. Once you know your restrictions, you have a good idea how to proceed and can rest in the knowledge that your property inventory checks will be okay at the lease’s end.
Artificial Christmas Trees
Smaller, artificial Christmas trees make it possible for you to have a tree without running afoul of restrictions on the living variety. What’s more, today’s artificial trees look more realistic than ever before. Many of them even come with fairy or berry lights already strung within the boughs and branches. You can easily add plastic and paper ornaments that are easy on the budget and much more safe than glass.
Choose LED Lights
Anyone planning to use holiday lighting in a rented property should seriously consider using LED lights. LED technology uses considerably less electricity and significantly reduces the risk of fire hazard. As always, make sure to read and understand the instructions that come with your light sets so as to not overload electrical sockets.
You can hang lights from curtain rails or attach them to larger furniture pieces. This enables you to string lights without having to damage walls. If your lease agreement allows it, you can buy suction cup hooks or adhesive hooks that use temporary, peel-away strips that do not damage walls.
Wreaths and Garlands
Wreaths and garlands are great holiday decorations you can put just about anywhere without the need to attach anything to the walls. Wreaths can be placed on the dining table with a few candles while a garland can be the wound around the staircase railing, a stand-up lamp, or your curtain rails. Garland also makes a very nice accessory for your Christmas tree. You can get it in a variety of colours and styles to suit your preference.
Window Decals and Stencils
Windows makes a great canvas for holiday decorations by way of decals and stencils. Window decals are made of vinyl so they easily stick to windows as long as the panes are clean. After the holidays, they peel right off with no damage done. If you prefer stencilling, you can create some gorgeous designs using a can of artificial spray-snow.
The stencilling idea is a bit more challenging but well worth the effort. And don’t worry about the spray-snow, it will wipe right off with some warm water and a towel. In the meantime, you can enjoy snowflakes and holiday messages glistening in the sunlight as it comes through your windows.
Another good way to put your windows to work is to create silhouette images using white paper. Attach the silhouettes with a little bit of sticky tape and you’re done. During the daylight hours the silhouettes are simple pictures people will enjoy as they pass by; at night they look fantastic against the background lighting of your room.
You can decorate for the holidays even if you live in a rented property. You just need to be a little creative and keep in mind what your lease agreement stipulates without worrying about letting inventories.
We’re delighted to welcome Janine Gehlig who is heading up our new branch in Liverpool. Janine has been involved in the property sector since 2008. She has excelled within the sector of construction and property clerking, as well as leasing in the commercial and residential divisions. Janine has extensive inventory experience. She spent four years in South Africa working in the market as well as working with No Letting Go since January 2014.
Her achievements have given her an opportunity to set up the Liverpool No Letting Go branch which she is sure to tackle head on. Not only has Janine provided a level of service which is always held up to a high standard, her professional and “always willing to get the job done” attitude ensures the Liverpool No Letting Go branch will succeed.
Nick Lyons, Managing Director of No Letting Go added, “The property rental market and subsequently the property services sector is extremely buoyant. Liverpool has become one of the UK’s Top 6 rental markets for Landlords, yielding even better returns than London property. Janine will ensure service levels are maintained throughout the area in line with our philosophy of providing a national service that is delivered locally. ”
For more information please contact Janine Gehlig direct on 07474 736 313 or Gary Claven on 07475 526 111; alternatively visit www.nolettinggo.co.uk.
Whether you are a landlord or a tenant, letting inventory services in the UK are an essential part of property rental. The idea of an inventory is to catalogue the contents and condition of a property recording details of the home and any items that are included in the tenancy. The compiled report is then used as part of the legally binding contract between landlord and tenant preventing disputes over possible damages between both parties and aiding in a smooth transition from one tenant to the next.
Over the years, inventory reports have traditionally been compiled in writing, text still rules the roost; however, as technology advances and many people now have access to cameras in smartphones and tablets, there are an increasing number of landlords incorporating photos into inventories. There is an old saying that ‘a picture is worth a thousand words’ and it’s hard to argue with this; but, can this saying really be applied to property inventory in the UK?
Finding the right balance
A picture can add a lot to an inventory, and photographs of large areas of damage such as holes in doors, carpet burns, and damage to worktops will go a long way in building a solid case against a tenant. However, when it comes to providing the perfect inventory report, a photo is only worth a thousand words if the right balance is found.
According to the Association of Independent Inventory Clerks (AIIC), an overseer of excellence in rental inventory services in the UK, photographs are being used more regularly in inventories. However, they are at the expense of written descriptions and this is leaving landlords exposed to costly disputes with tenants over damage.
In many reports, the AIIC has found that photos no bigger than thumbnails are being used as evidence. Naturally, with a picture being so small, detail is hard to see. Photographs of a decent size and quality though, can be very useful and many of today’s modern smartphones have the capability to produce detailed images.
Only quality photos will do
The comprehensive nature of inventories means that it photos must only be provided if they are backed up by a written presentation. The most common disputes between landlords and tenants are over small damages, such as chips in cupboard doors, scratches in sinks and baths, and knife marks on worktops. Such damages, while minor, can result in financial losses for landlords and tenants if negligence cannot be proved and a photo alone is often not sufficient evidence as details are so fine.
In order for property inventory services in the UK to help landlords win disputes for either side in a rental agreement, it is essential that photos are of a high quality and printed in A4 or even A3. In addition to this, the photo should be dated on camera and only be used to make up part of a written report.
The written inventory may still rule the roost, but the use of photos is definitely here to stay.
Photo source: Paul Reynolds