It’s no secret that the private rental sector needs improvements in some areas. A lack of organisation and a minority of poorly maintained, privately rented properties are damaging the sector’s reputation. These negative aspects are often used as fuel to publish damming headlines blaming landlords and property professionals for failures in the industry.
However, a 2018 report by University of York academics, Julie Rugg and David Rhodes named the ‘Evolving Private Rented Sector: Its Contribution and Potential’ is the latest source to argue that the problems in the rental sector are not the fault of landlords and letting agents alone.
We’ve been featured in Letting Agent Today on our support of this new proposal. Here’s how a new rental property ‘MOT’ certificate could improve the private rental sector for both landlords and tenants.
The property MOT is the initiative created by The Lettings Industry Council (TLC). The group is made up of a cross range of letting experts who represent landlords, letting agents, tenants, suppliers and others in the Private Rental Sector and includes government advisors. The groups aim is to improve standards across the industry.
The Report: Improving the Private Rental Sector
The report acknowledged that the private rental sector is currently ‘failing at multiple levels’. Subpar housing conditions, disorganised management and the fact that many tenants and landlords are unsure of their rights and responsibilities has resulted in this situation.
The report recommends introducing a new, annual MOT-style certificate to set a new minimum standard for rented housing conditions.
The New Property Licence
The suggested scheme would ensure a property is licensed before being let. Landlords would be required to apply for a licence so that an independent property inspector can review the property.
This service would be performed by property professionals, trained to assess whether a property is fit to let. Once affirmed, all licensed properties would be added to a national database connected to the landlords phone number, while unlicensed properties would be subject to legal action if let.
For HMO properties (houses in multiple occupation), a slightly amended certificate would be required, taking into consideration the extra safety checks needed.
If introduced, mortgage lenders would have to check the status of a property before loaning money and it would be illegal for letting agents to manage an unlicensed property.
The authors believe that, alongside other revisions to the industry, this ‘MOT’ could improve conditions for renters. They also hope that the new scheme would free up time and resources for local authorities to combat criminal activities and other pressing issues in the industry.
Benefits for Private Rental Landlords
One benefit of this proposed scheme, is that it would integrate existing health and safety certificates for rental properties. Gas and electric checks and the energy performance certificate (EPC) would be added to with a basic standards for habitation assessment.
This goes hand in hand with the recent 2018 Homes (Fitness for Habitation) Bill which requires all rental properties to be safe and free of health risks for tenants. This act makes any landlords not meeting these standards liable by giving tenants the power to take legal action.
Integrating these property licenses has the potential to make things simpler and more streamlined for landlords.
Reaction from Property Professionals
The report has been praised by property professionals for moving away from the culture of blame often placed on landlords and other property agents in the media. Instead, finding sensible solutions to current problems and improving systems for both landlords and tenants could help to transform the industry as a whole.
No Letting Go’s founder and chief executive, Nick Lyons spoke to Letting Agent Today on why he believes that creating an MOT certificate system could raise the standard of homes in the private rental industry;
“An MOT report, ensuring a property meets a minimum standard, alongside an independently and professionally compiled inventory would ensure that everything about a property’s condition and contents is suitably documented at the start of a tenancy”.
It’s not just No Letting Go championing this idea. ARLA Propertymark, the professional body for raising standards in residential lettings, agrees that this certificate could be a simple and practical solution to current issues.
Keeping on Top of Your Rental Properties
If you’re a landlord who’s worried about potential changes to your responsibilities and feel overwhelmed with licencing applications, why not delegate some of the work?
No Letting Go are one of the largest providers of inventory services in the UK. We provide independent property reports, including check in/check out services and safety checks to help give landlords peace of mind. Find out more about our services here.
Thinking of converting commercial property to residential?
While renting out a property this way has its clear advantages, there’s a lot to consider. Ensure you’ve thought every detail through before you decide to go ahead.
Unsure where to start? Here’s a handy guide for landlords considering this path.
What to Consider When Changing Commercial Property to Residential
First things first, you need to decide whether this conversion is feasible for you at this time.
The Type of Property
There are many kinds of commercial building, from office to retail. Some of these may be easier to convert than others – so it’s vital you look into the specific details.
Class J allows developers a lot more freedom, however there are still some exemptions and restraints. Ensure you’re aware of these from the start.
Building Conversion Costs
While you’re not starting from scratch, it’s important to note that the cost of converting the existing building could be considerable.
Particularly if the building requires significant structural work, it might be more costly than expected.
Are you prepared for this?
Planning Permission Commercial to Residential
While it’s not always the case, you may require planning permission before going ahead with any work. Even if the building falls within Class J guidelines, you may still need permission.
Particularly if you plan on knocking down walls, for example, you may need to prepare for this extra expense.
Local Planning Laws
You may need to speak to the local planning authority, or local council, before going ahead with any work.
Location
Bear in mind that the location of commercial properties might not be ideal for residents.
Consider:
- Transport links
- Local amenities
- Nearby schools
- Parking
- Noise pollution
- Access for developers
Ask yourself, ‘Can you live in your commercial building?’ If the answer is no, it’s unlikely it will appeal to tenants either.
More and more people are choosing to rent over buy, but location can make or break this. Particularly if you’re trying to encourage a long-term tenancy, the area is everything. Tenants will only want to lay their roots in your property if they like their surroundings also.
Mortgage
Unless you have enough cash upfront, it’s likely you’ll need a mortgage to purchase the property.
This may mean the conversion is subject to your broker’s terms and conditions.
Insurance
While all landlords should consider insurance, when it comes to conversion, there’s an extra need to safeguard the building.
During the work planned to go ahead, are you covered? Consider the terms of your mortgage agreement – you may be required to get insurance.
Making a Commercial Conversion Liveable
There are a number of requirements that need to be met before tenants could live in the property. A commercial to residential conversion should consider the following:
- Plumbing
- Heating
- Electrical safety
- Removal of hazardous material
- Fire safety
Ensure all these needs are met before you consider letting tenants move in.
Commercial Property Change of Use to Residential – Other Considerations
Of course, there’s more to a conversion than simply making the property safe.
Residential units have things that commercial spaces may not, such as storage areas. Also, how secure is the rental?
It’s a good idea to imagine yourself living in the commercial property. Does it feel like a home?
The Pros of Changing Commercial Property to Residential
There are some undeniable perks with converting commercial buildings, including:
- You could potentially get a bigger property for a lower price
- You may not need planning permission
- There’s no property chain
- Investing in property can be hugely profitable
The Cons of Using Commercial Property As Residential
While there are some positives, there are also some inevitable downsides:
- Sometimes the conversion can be more costly than expected, particularly if planning permission is required
- You’ll need a specialist buildings survey, which can be expensive
- It’s easy for conversion costs to spiral out of control
- Conversions can run on for longer than anticipated
Meeting Your Requirements as a Landlord
Decided this is direction you want to take as a landlord? This journey is both an exciting and difficult one.
As with any property, there are a number of requirements you’ll need to meet as a landlord. But, you’ll also want to ensure your investment is protected every step of the way.
From check-in to check-out, No Letting Go will ensure you’re meeting all the necessary safety standards. As well as this, we’ll ensure your tenants are looking after the property as requested. Our comprehensive property inventory services offer you peace of mind, while making you the best landlord you can be!
New to the buy-to-let game? About to take the first steps to becoming a property investor?
While this is an exciting journey, it can feel overwhelming at times! There’s a lot to learn when you’re just starting out.
To ensure you stay on the right track, we’ve got some tips on property investment for beginners. This advice should help guide you along the way!
Property Investment Basics
Before you start looking at properties – you need to work out what type of property investor you want to be.
Decide Whether You Need Partners
Do you want to invest alone, or with others?
If doing this by yourself, any money you make from letting out the property will be yours alone. However, some people are not in the financial position to do so.
So, first things first, ensure you know what you can afford before you embark on the journey!
How Will You Finance Your Investment?
During the planning process, your investment strategy should take into account exactly how you’ll afford to purchase a property. This should happen before making an offer on a house.
There are a number of different things to consider, including:
- Stamp duty land tax
- Getting a mortgage
- The day to day running of the property
- Current property prices on the market
- Whether now is a good time to buy
- Survey costs
- Solicitor fees
- Insurance
Hopefully, sooner rather than later, the rental income you generate will ensure cash is flowing into your pocket. However, the upfront costs involved with buying a property should not be overlooked.
What Type of Investor Do You Want to Be?
When investing in property, you have a number of options open to you. This could be:
- A new career path
- Your main source of income
- A source of extra income on top of another job
With direct property investment, it helps to have a long-term plan. Imagine yourself in five years’ time. Where do you want to be?
More and more people are choosing to rent over buy. This presents an exciting market for investors to take advantage of.
How to Invest in Property
Once you’ve got the basics sorted and know what type of investor you want to be, it’s time to get started.
But, that can be easier said than done! So, here’s how to find a good investment property:
Choose Where You Want to Invest
Where do you want to invest? Decide early-on.
Here, research is key. There are a number of things to consider, including:
- The average cost of buying a house
- The average rental yield in the area
- The type of tenants in the area (families, students etc.)
- Whether the area is up-and-coming
- How close you want the rental property to be to your own home
Once you’ve decided on the area, it will make choosing the right property to invest in much easier. However, it can be more difficult than anticipated to get to this point!
Identify Your Target Tenant
Who do you want to rent to? It helps to have a target tenant in mind.
For example, if you invest in a studio flat, it’s unlikely this will appeal to families. However, in an area where many residents are postgrads, this could be perfect.
It can be tough to narrow it down – but it’s worth it. Remember, the area you’re in should play a huge role in deciding your target tenant.
Ask yourself who you would and wouldn’t let to. Would you consider renting to students? This may widen your options, particularly in an area with a number of universities.
Make Sure Rental Returns are Competitive
The best way to start investing in property? Be on the lookout for high rental yields.
This can vary place to place, as everywhere in the UK is different. But, these tend to be favourable locations where there’s a high demand for rental homes.
You’ll want to ensure that, over time, the property can not only pay for itself but make you a profit. This includes any extra charges, such as maintenance.
Look for Opportunities to Add Value
The UK property market is constantly changing! Even some of the best estate agents can’t predict what will happen next.
House price growth is one of the main reasons to invest. When you eventually come to sell the property, you want to know you’ll make a profit. One way to ensure this is by looking for ways to add value:
- Consider ways to refurbish/renovate the property
- Choose an up-and-coming location
The best property investments are those which look to the future, rather than just the here-and-now.
Property Investment Advice – Understanding the Risks
If you’ve decided this is the path you want to take, you’ll need some property investment tips to help you along the way.
Ensure you’ve considered these risks:
- Rent is not always guaranteed – which may mean you can’t afford mortgage repayments. Always try to prevent void periods at all costs
- House prices can fall
- Difficult tenants can cause a number of issues, such as damage to the property
- Major house repairs can be extremely expensive
Property Investment Guide – The Potential Returns
Despite some inevitable risks, the world of buy-to-let is an exciting one, and can deliver huge returns.
This market can be a very profitable one! Plus, becoming a landlord is a rewarding career path to follow.
Protecting Your Investment
One of the most important factors to consider? The ways to safeguard your rental property.
Having a comprehensive, detailed inventory is one of the most significant elements – essential for protecting both landlords and tenants.
Unsure how to get started? No Letting Go can help. From check-in to check-out, we’ll make protecting your investment our top priority. Find out more about our inventory services here.
Looking to make the most of being a landlord? Hoping to be more efficient while reducing costs?
There are many ways this can be done! We’ve outlined them for you to help you maximise your opportunities.
Here’s how to get the most from your portfolio in 2019.
Always Run a Tenant Reference Check
If your properties are your source of income, who you let to can make or break your success.
There are a number of consequences that can arise from letting to an untrustworthy tenant! This could be anything from damage to your investment to a costly legal battle.
The result? You may be unable to let out that particular property for some time, causing potentially severe financial consequences.
The solution? Always run a tenant reference check with a professional company!
Meet Your Legal Responsibilities
From insurance to health and safety, landlords have number of requirements to meet. Failure to do so will make your property less desirable to live in.
So, if you’re looking to get the most from your portfolio – never cut corners when it comes to being a good landlord.
Inspect the Property Regularly
Landlords inspections are key for ensuring that your property is being maintained as agreed. As well as this, you’ll appear hands-on and attentive to detail.
When visiting the property, ensure you’re thorough. Keep a record – this will make it easier to determine fair wear and tear from recent damage.
Treat it Like a Business
For many, bricks and mortar aren’t seen as a source of income. However, if you’re a landlord, the opposite is true.
This means you should treat it as such! While being approachable will help you form a strong relationship with your tenants, you should have a business mind.
Here – a structured and organised approach is key:
- Who’s dealing with your finances?
- Which Tenancy Deposit Scheme are you using?
- If you’re unable to look after your property for any reason, such as a holiday, who will take your place?
- If you’re using an agent, are their fees covered?
Keep Researching the Market
Research shouldn’t stop once your properties are let out! The local area, and what people want from it, is constantly changing.
Always have a target tenant in mind – for example a one-bed flat is unlikely to appeal to a market where many families rent.
Work to Reduce Void Periods
All landlords want to prevent void periods! However, this can be easier said than done.
If you keep coming up against this issue, it’s time to start taking it more seriously. Here are some solutions you may not have considered:
- Think about a HMO (house of multiple occupation)
- Be more open minded
- Advertise earlier
- Market your property differently
Maintain the Property Regularly
In 2019, resolve to see property maintenance not as an extra expense – but an investment. Often, what you put in is what you’ll get out.
This doesn’t just apply when trying to attract new tenants. For existing tenants, regular maintenance is key also. It can help you form a good relationship with them, as well as help justify reasonable rent increases.
Remember – it pays to look after your tenants!
Have Set Processes for Dealing With Issues
What procedure do you follow if something goes wrong?
For example, if a tenant falls behind on their rent, what do you do? You should already know the answer to this before it happens. Part of getting the most of your portfolio is understanding that problems can arise – and knowing how to deal with them.
Ideally, if you’re organised enough, you’ll take a proactive, rather than reactive approach.
Keep a Paper Trail
If you’re meeting all the safety requirements, ensure you have proof of this. From legionella risk assessments to smoke detector installation, it’s handy to have a paper trail.
Have a Detailed, Thorough Inventory
One way of ensuring your investment is secure? Have a comprehensive inventory.
This shouldn’t be just a collection of pictures, but a full and thorough report. The key here is clarity – so no issues can arise. Remember, simple facts aren’t enough; details are necessary for determining a weak inventory from a strong one.
This has multiple benefits to all parties, such as reducing the risk of deposit disputes.
But, many landlords struggle to put these together themselves. There’s lack of time and know-how for example! What’s more, even when landlords do put together DIY inventories, they’re often insufficient.
Luckily, we have a solution. Our professional, comprehensive property inventory services will take the hassle out of the process for you. From check-in to check-out, your investment will be protected!
Ever had your investment abused by careless tenants? Whether it’s damage to the property or a general disrespect, it’s a horrible feeling. You feel cheated by the people you trusted.
Deposits and tenant referencing companies are great ways of combating bad tenants, but there’s another step you should be taking. Regular landlord inspections are vital for ensuring your tenant is actually maintaining your property as agreed in the tenancy agreement.
Many landlords avoid checking their investment purely because there are clear regulations to follow. Don’t be one of those landlords! Here’s what you need to know about property inspections.
Why You Should Carry Out a Rental House Inspection
Not convinced about the need to inspect your property? Here are a few advantages of inspections:
- You can assess how your tenant treats the property
- You can check on any maintenance issues that need your attention, such as health and safety requirements
- You boost your reputation as a landlord and become more approachable
- You can create an open pathway of communication with your tenants
- You can take a look at the living conditions of your tenant
- You can keep an eye out for any illegal activities
- You can check that you’re still offering a safe and legal letting to the tenant
- You may not have a duty of care to neighbours, but it may avoid disputes to check in with them. They may be able to tell you information about how your tenants are behaving that you might otherwise miss
Can a Landlord Enter Without Permission?
When it comes to entering the property, there are rules.
You can’t just turn up and inspect the condition of the property. The landlord or agent doesn’t necessarily need permission before entering. However, there are laws you need to follow when it comes to regular inspections.
Legally, there are three main rights of entry:
The Right of Reasonable Access
As a landlord, you need to be aware of your Landlord access rights. ‘Reasonable access’ sounds like a very general term but it is simply defined. This ultimately refers to the need to access the property immediately to carry out emergency/necessary repairs.
The Right to Enter to Inspect the State of Repair of the Property
As owner of the property you can also enter to inspect the ‘state of repair’. For inspections, you aren’t granted immediate access.
You must also carry out all inspections at reasonable times of day. If someone other than yourself (or a previously agreed agent) is inspecting the property, you must give notice of inspection in writing.
The Right to Enter to Provide Room Cleaning Services
If you offer room-cleaning services to your tenant and this is stated clearly in the contract, you can access the property without permission. This is a relatively uncommon situation.
Can a Landlord Enter the Property Without the Tenant Present?
If the reason for access is one of the ones mentioned above, such as an emergency, the tenant does not need to be present during inspection.
However, tenants should still be informed. This is their home also, so it’s a good idea to let them know if you’ve entered, and for what reason.
A landlord entering the property without permission or reason is against the law.
How Much Notice Does a Landlord Have to Give?
Usually, you must provide at least 24 hours notice before entry. This can differ in an emergency.
Landlord Right of Entry – Try Not to Scare the Tenant
Inspections can be scary for your tenants, as they’re obligated to look after your property. As soon as you notify them of your intention to check your property, they’ll begin to sweat. Be as casual and relaxed about it as you can. Explain there’s no reason for them to be worried, it’s just a mandatory walk through.
If you’re able to, give your tenant more than the required 24 hours’ notice – a week is usually best. This gives them time to present the rental in a clean and tidy state. Be flexible about the time of your visit and offer to rearrange if it isn’t convenient.
Landlord House Inspection Checklist
So, what should you be looking for?
There are plenty of issues you might come across, some more serious than others. Your inspection can be as thorough or casual as you’d like. Having said this, keep your eyes peeled for these common problems:
- Damage beyond wear and tear (broken windows, stained carpets, etc.)
- Damp and mould
- Leaks
- Condition of furniture and white goods
- Excessive rubbish
- Poorly maintained garden
- Faulty smoke alarms/carbon monoxide detectors
- State of the loft/attic
- Signs or rodents/infestations
Periodic Inspection Report
It’s recommended to carry out a house inspection every 3 months or less. This depends on the length of the tenancy.
To help you monitor your property effectively and keep track of any recurring issues, you may want to fill out a house inspection form of some kind.
This can be particularly useful if you spot a problem on a particular visit, and find it has not been corrected next time. With all the obligations landlords have, having a record can help you stay informed about the condition of your rental property.
Can Tenants Refuse Access to a Property?
If you turn up unannounced, for example without written notice, the tenant can refuse to grant entry.
To avoid this, give plenty of warning.
What Happens If the Tenant Refuses Entry?
If a tenant refuses to grant permission for entry, you can’t go ahead without their blessing. As a landlord, you have to respect the tenant’s privacy. This can create a difficult situation where a harmonious relationship between landlord and tenant can be jeopardised.
Tenants only tend to refuse entry if they’re hiding something unsavoury from you. Unfortunately, you can’t take the issue any further.
How to End the House Inspection
Communication is key here. If there are issues you’re not happy with, explain why and discuss whose responsibility it is. If you’re coming back to complete any repairs, give full details of when this will be. Don’t forget to ask your tenant whether they know of any issues or damages that require your attention. Ultimately, thank them for their time – remember, they weren’t obliged to let you in.
How Can an Inventory for a Rental Property Help?
Want to lower the possibility of deposit disputes and damage to your investment? No Letting Go will manage the entire inventory process in a professional and open manner. This includes check ins and check outs. We’ll help you comply with your obligations, while improving the lives of tenants. Find out more about our inventory services here.
For landlords, there are seemingly endless responsibilities to keep track of. Every self-respecting landlord wants to provide safe and comfortable homes for their tenants, but it can be difficult to stay on top of changing developments.
One such responsibility that’s vital to stick to is getting an EPC for your property. The EPC is a certificate to ensure the sufficiency of a buildings energy performance and is required for all properties being put on the market to sell or rent.
We know it can be tricky navigating complex requirements and laws. That’s why we’ve put together this information on landlord EPC obligations.
So, without further ado, here’s everything you need to know about EPC for landlords, all in one place.
What is an Energy Performance Certificate?
Put simply, an Energy Performance Certificate (EPC) tells you how energy efficient a property is. Factors such as carbon dioxide emissions and heating costs are taken into consideration to give the property an EPC rating.
An EPC is required every time a property is put up for sale or rent.
Introduced in 2008 as part of the Home Information Packs (HIPs), the EPC aims to give potential buyers and tenants clearer information on the energy efficiency of their building.
As well as rating the building for its current efficiency, the EPC also gives suggestions for improving energy use and will provide a predicted rating for when these are implemented.
Energy Efficiency Rating
The energy efficiency of your property is given a rating between A and G, with A being very efficient and G being inefficient. An older property without double glazing or proper insulation is more likely to get a lower rating than a new build.
The property will also be given a number between 1-100. The higher the number, the more efficient the building is and the more cost-effective energy bills are.
The EPC will also provide estimated energy costs for heating, lighting and water bills. As well as advice on how to improve the energy efficiency of your property. From installing better quality wall insulation to something as simple as switching to energy efficient light bulbs, there are many ways to make your property greener.
What’s the Minimum Energy Efficiency Standard for Landlords?
As from April 2018, landlords in the private rented sector need a minimum rating of E for their rental properties. Failure to meet this standard could result in fines so must be avoided at all costs!
Tenants have the right to make improvements to the energy efficiency of the property, with the permission of the landlord.
From April 2020, these regulations will also apply to all ongoing assured tenancies in existence.
For more information on landlord requirements consult the government web page.
Which Properties Need an EPC?
Every domestic and commercial building in England and Wales must have an EPC. If you are leasing a property, you must have ordered the EPC before the property goes on the market.
The only types of buildings that are exempt include some listed buildings and residential buildings or rented holiday accommodation which are in use for less than four months a year. A room rented out by a residential landlord is also let off the hook.
The EPC must be shown to potential tenants and a copy supplied free of cost. Make sure you don’t get caught out!
How Long is the Energy Performance Certificate Valid for?
An EPC is valid for 10 years from when it’s completed. If the property holds an EPC from an existing tenancy, it’s fine as long as it’s within this period.
How to Get an EPC
As a responsible landlord, you must only use an accredited Domestic Energy Assessor when acquiring the EPC for your property.
To find a list of approved EPC organisations in the UK, check the energy performance certificate register.
What does the Energy Performance Certificate Cost?
An important question for landlords! Unfortunately, there is no fixed rate for EPC’s currently, however prices usually start at £35. Factors such as the size of the property, the type of property, how many bedrooms it has and its location are all taken into consideration.
Therefore EPC’s for larger homes in desirable locations are likely to cost more.
EPC’s and Feed in Tariffs
If your property has solar PV and you want to receive payments from the government’s feed in tariff (FIT) you will have to provide evidence of an acceptable EPC rating.
The Benefits of Having an EPC
It may sound like a bit of a hassle, but there are actually some benefits to getting a CPE for your property.
For one thing, having an EPC means you can feel safe in the knowledge that your property is within the required energy efficiency standards. That’s one less thing to worry about.
Another advantage, is that by periodically checking your property’s energy efficiency, it will be easier to save money on energy bills for your tenants. The EPC will also help you to plan for future costs with its breakdown of energy expenditures. For landlords managing multiple properties this will be particularly helpful.
Recent Changes to the EPC
From 1st April, 2019, the ‘no cost to the landlord’ exemption will no longer apply and landlords will be required to pay up to £3,500 on works to increase their property’s rating up to an E. If costs exceed this figure, landlords will be allowed to register for a ‘high cost’ exemption on the PRS Exemptions Register provided they give significant evidence.
This is a significant change that landlords in the private rental sector need to stay on top of.
Let us Lend a Hand
With all these obligations to wrap your head around, it’s worth delegating some tasks to make the process of organising a new tenancy that bit simpler.
No Letting go provide professional, unbiased inventory services to make the process as fuss-free and efficient as possible and help you stay on top of your responsibilities.
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.
Startling figures released by the Home Office have shed light on the true scale of measures taken against non-compliance to the government’s Right to Rent scheme. Since 2016, over 400 fines have been handed out, at a total value of £265,000. It’s clear that Right to Rent checks have never been more important for landlords and letting agents.
What is the Right to Rent Scheme?
Introduced in February 2016, the Right to Rent scheme requires landlords and letting agents to ensure the occupier of their property has the right to remain (and rent) in the UK.
This is an all-encompassing legal requirement which also applies to private landlords or those letting to lodgers. If the tenant is found to be illegally living in the UK, those letting the property are liable for a fine of up to £3,000 per tenant.
405 Fines in 2 Years
The Home Office have issued 405 fines for non-compliance of the Right to Rent scheme since 2016. Of these fines, the average (£654 per tenant) is significantly lower than the maximum fine amount, though altogether a total of £265,000 has been paid by non-compliant landlords and letting agents.
Since the scheme’s inception, the busiest periods for fines issued falls between April and September 2017 where a total of 151 fines were issued.
A Controversial Scheme
Many are unhappy about the Right to Rent scheme. Chris Norris from the National Landlord Association explains: “It’s important to remember that landlords are neither immigration experts nor border agents… The Right to Rent scheme has placed an additional cost on an already pressurised sector”.
The Guardian documents that 11,300 checks are made each day in England, “but the proven benefits are limited – and the damage is very real”.
The same article partly attributes homelessness among refugees in the UK to the need to wait many weeks for documents to prove the right to a tenancy.
While the additional costs to landlords is another great talking point in the industry. It’s believed that the added work required by landlords to fulfil these checks totals an eye watering £4.7million per year.
We Have the Answer
As part of No Letting Go’s Check In procedures, we can verify the documentation required for the Right to Rent scheme. We can also warrant that these match the tenant’s appearance.
Lisa Williamson, Business Development Director for No Letting Go adds, “we have worked successfully with both letting agents and landlords across the UK since February 2016 to ensure that Right to Rent documentation complies with this legislation. Our bespoke reports clearly confirm that the tenant’s original identification documents appear to be genuine and are a true likeness. With the tenant’s permission we also photograph them holding their photographic ID as further evidence that they are a true representation. This service has proved invaluable to agents and landlords who have not had the opportunity to personally meet the tenant/s prior to their occupation of the property.”
There is no need to let the Right to Rent scheme become a stressor in your letting process. Avoid the fines and the hassle by using No Letting Go. Explore our full list of services here.
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.
They’re the stuff of nightmares, sleepless nights, endless worrying and a bucket load of stress. No landlord wants to be caught up in a rental void period. Unfortunately, they’re pretty common and easy to fall into. This can be really damaging to landlords with a smaller portfolio. Thankfully, there are a few simple tips you can implement to avoid them altogether. Here are our 8 tips for preventing void periods. If you know of any more that could help other landlords, get in touch on Twitter.
1. Properly Maintain Your Property
So, let’s get this one out the way early. There could be an underlying reason why no one wants to rent your property. Ensure everything’s tidy, clean and in a liveable condition. Bathrooms and kitchens are key selling points of your property – do they need any work? Would a quick renovation boost your chances of attracting new tenants? The appearance of your property matters.
2. Advertise Everywhere (and Early)
It’s surprising to some but landlords do require marketing skills. Especially if you’re privately renting, you need to be able to market your property. Advertise your property everywhere you can, from local newspapers to online sites. If you want to stay away from void periods as much as possible, it’s important to advertise your property as early as you can. Don’t wait till the house/flat has been vacated.
3. Charge Reasonable Rent
Don’t inflate the rent you’re charging for the sake of it. Do your research and find out the average rent for the area. Then question how your property compares to the area’s average. Above all, charge a fair rent. You may be tempted to undercut the area’s average rent to ensure your property is seen as more attractive. Be warned, this could change the type of tenant you let to. Consider a deal including amenities if you want to make your listing more appealing.
4. Pick Good Tenants
This is a tricky one but will save you a lot of hassle in the long run. If you can let to good tenants you’ll reduce the risk of sudden changes in circumstance. Unfortunately even the best tenants can have unpredictable lives and there’s no simple way to get around this. Also, it’s very tricky to tell which tenants are genuinely ‘good’. Screening checks don’t tell the full story. The best tenants are steady and secure in their careers and lives.
5. Be Open Minded
It’s always important to have an open mind with potential tenants. Whether they’re looking to redecorate parts of the property or live with a pet, you may not like it but it’s worth considering. A tenant with a pet is likely to be more stable. Whereas a tenant who wants to redecorate will likely see themselves in the property for an extended period of time.
6. Why Not Try a HMO?
If you rent in an area popular with students or young professionals, it may be worth considering turning your let into a house in multiple occupation. You’ll need to adhere to specific licence rules about health and safety but it’s nothing a reasonable landlord couldn’t keep up with. This way, when one tenant moves out, you’re still making money from the other occupants.
7. Upgrade Your Furniture
Back to what we said earlier about how appearance is everything. If you’re offering a furnished property, it may be worth making a few extra purchases. Upgrading furniture will give your property a new lease of life. It could be the difference between attracting new tenants or not.
8. Be Approachable and Professional
Whether you like it or not, as a landlord you could be the reason between a tenant taking your property or not. If you turn up to a house viewing late, wearing sandals and shorts you’ll look unprofessional. Dress well, be prompt, appear approachable and ensure the tenant knows you’re professional.
When you start renting, don’t neglect the importance of a full and accurate inventory. Remove the possibility of disputes with No Letting Go’s inventory services.