Written By Em

Em

Em Morley

Regulator Warns Social Landlords of Fraud

Published On: March 3, 2015 at 10:54 am

Author:

Categories: Landlord News

Tags: ,,

The regulator of social housing in Scotland has spoken out to warn landlords about fraudulent activity, after a number of cases involving housing associations.

The Scottish Housing Regulator (SHR) wrote to all chief executives of social landlords last month, stating that some organisations has been fraudulently notified that a contractor’s bank details had changed.

Housing associations have become targets of mandate fraud, in which fraudsters contact housing providers pretending to be a company holding a contract with them.

Regulator Warns Social Landlords of Fraud

Regulator Warns Social Landlords of Fraud

The impostor then says that the contractor’s bank details have been changed and that all future payments must be paid into a new account, which the fraudsters control.

A partner at auditor Baker Tilly, Janet Hamblin, says that landlords are reporting more frequent and sophisticated attempts of mandate fraud.

Some fraudsters are becoming so involved that they visit a housing association’s development construction site to determine who the contractor is and where they are developing.

Hamblin comments: “[Mandate fraud] is happening more regularly… it was going on about three or four years ago, but fraudsters have become more sophisticated about how they go about it in terms of knowing about the housing association’s development and where it is.”1

In the letter to chief executives, Director of Regulation and Risk at the SHR, Ian Brennan, says: “We expect you to ensure that your organisation has effective procedures in place to mitigate the risk of these types of fraud affecting your organisation.”1

Apparently, at least one housing association has paid a sum to a fraudulent bank account in the last six to eight months, however the money is believed to have been recovered since.

Baker Tilly have compiled some advice on dealing with this issue1:

Top five tips for avoiding fraud

  1. Always check accuracy of emails and telephone calls asking you to change supplier bank account details with an existing senior contact at the contractor. Make sure you use your existing details to check this; do not just reply to the email sent to you. One unnoticed letter difference in an email address can mean you are dealing with fraudsters.
  1. Oversee the cash. Ensure controls over security and segregation of duties in collection, recording and reconciliations are in place, and review throughout spending on petty cash and credit cards, for any abnormal amounts or transactions.
  1. Do not be too trusting of long-standing contractors and long-standing staff. Economic pressures sometimes make people behave differently.
  1. Do not always rely on key performance indicators that show a consistent picture. A long-standing level of voids in one scheme could mean consistent abstraction of rental money received in cash and not banked.
  1. As a board member, always ask the obvious questions; this can often unearth a problem. Also, if something looks too good to be true, it usually is.

1 http://www.insidehousing.co.uk/professional/legal/regulator-warns-social-landlords-about-fraud/7008531.article

 

Being a DIY Landlord

Keeping your costs down is one of the most important things in having a long-term, successful investment. For buy-to-let landlords, this is no different.

Landlords can use letting or estate agents to find and manage tenants, and collect rent. However, this would mean paying them some of your returns.

Another option is to go it alone and become a DIY landlord, although there are vital points to consider before taking this leap.

The advantages

Saving on letting agent fees can be beneficial to your business, as any rental income you make will go directly to you, rather than a percentage being paid to them. Additionally, you will not face any extra fees.

You will also have more control over the type of tenant you have, and the relationship you have with them. This can help solve any problems, as you can communicate directly with tenants. Many experienced property investors claim that the key to healthy returns is happy tenants.

It is important to remember, however, that if you choose not to use a letting agent, you will need to do all the jobs that they do. And you cannot afford to scrimp.

What you should consider

Running a buy-to-let investment is the same as managing any other business. You will need to ensure you always have tenants, these tenants are paying the rent, and that the property and tenants are being looked after.

Maintaining a strong relationship with tenants can help keep the rent coming in, stop them leaving, and keep the property in a good condition.

Tenants have the right to live in a home that is safe and in a good state of repair. You will be on call if anything goes wrong.

Being a DIY Landlord

Being a DIY Landlord

It is always a good idea to know various tradespeople who can be on hand in an emergency. As a landlord, you are responsible for the property, and this includes the plumbing, heating and hot water, drains, and wiring, alongside other things.

You will not just need good tradespeople. When renting a property, you will need to advertise in the right places and have the correct paperwork in place.

You must also remember to report any income and gains to the tax office.

Your responsibilities

Before renting a property, you should be organised with all of your responsibilities.

Landlords must provide a gas safety certificate and ensure a registered engineer checks all appliances. Tenants should be given the gas safety check record when they move in, or within 28 days of the check taking place. Not offering this can result in fines or imprisonment.

Electrical equipment must also be checked. If you rent a House in Multiple Occupation (HMO), then you will need to conduct an inspection every five years.

Furniture has to be fire-safe, and private rental sector landlords must also install smoke alarms on each storey of their rental property.

You must also organise an Energy Performance Certificate (EPC) for prospective tenants. This will help them determine how efficient the property is and how much their bills could cost. If you do not provide an EPC, you could face fines of up to £5,000.

Before the tenant moves in, you must register with a Government-approved deposit protection scheme. Using one of these systems will protect and hold the tenant’s deposit. The scheme will guard the money against dishonest landlords and agents, and deal with any disputes. You can also be fined for not being part of a scheme.

A helping hand

There are many services that can help you, protect your property, and support you in becoming a landlord.

You can outsource some of the work involved and pay for certain services that will protect the essentials.

One of the biggest problems you face will likely be the boiler. If this happens to fail, tenants will probably be calling you immediately for it to be sorted. Breakdown cover can avoid any stress if this happens.

A regular premium will mean that if something goes wrong, the provider’s engineer will be out to fix the problem. Sometimes, you can give the tenants the policy details and they can arrange a repair to suit them.

When finding tenants, the internet is the best place for it. Some online letting websites allow you to advertise your property for free, and then you will pay extra for wider promotion, enquiries, and viewing arrangements.

You should ensure that your property looks good in photographs, and use high quality images. Make sure that details are accurate and up-to-date, and that you target the right type of tenant.

You may be able to download tenancy agreements and other documents online. Some you might have to pay for, but you can just buy them as they are needed.

Taking Care of Your Lawn Through the Seasons

Rolawn has compiled some tips on keeping your lawn healthy throughout the year. Follow their advice for an attractive garden in all seasons.

Spring

Rolawn says that spring is a “key season for maintaining your lawn.” This is when plants have their most energy, and thus lawns can recover from the winter period. If you put the time and effort in now, nature will assist you in generating beautiful results through the rest of the year.

Mowing

Rolawn suggests setting the mowing height quite high in early spring, “taking no more than one third of the length of the plant off at a time; otherwise the lawn will become stressed.”

They advise a little and often method in spring. As spring continues and the grass grows quicker, mowing can be increased, and the height gradually reduced.

Feeding

It is “essential” to feed your lawn during spring, says Rolawn. The grass is growing fast at this time, and they need the right nutrients, in the right quantities to grow strong and healthy. Healthy grass will result in a thicker, denser and greener garden.

Rolawn also says: “A combined fertiliser, weed and moss-killer will also ensure your lawn stays weed and moss free. Apply when the soil is moist and the grass leaves are dry, watering in well after a few days if necessary.”

Moss control 

“If moss is a problem on your lawn, you will need to scarify it out,” explains Rolawn. You could also use a moss-killer before scarifying, however, in this case you should wait for it to turn brown/black before scarifying.

Weed grasses 

Weed grasses are obvious to spot, as they are different to the rest of the lawn. Poa Annua is endemic in the northern hemisphere. Look out for seed heads forming from pale plants. Cutting the plant out and removing the roots can remove these. To avoid more Poa plants growing, you should fill the area in with a mixture of topdressing and lawn seed.

Topdressing

Topdressing retains a level surface, improves drainage, and controls the build-up of thatch. Rolawn suggest applying up to three litres (4kg) per metre2 and work into the grass with the back of a rake or brush.

Over-seeding

If your lawn has received some damage in previous months, early spring is a good time to over-seed the grass and fill any sparse patches. Topdressing and seed can be combined to save time.

Repairs

Badly worn areas can be patched with a few rolls of turf from your garden centre.

Summer

Mowing

As the temperature heats up, the growth of your lawn may actually slow down. You should mow as and when necessary, but don’t take off more than one third of the length in one cut. In dry conditions, lifting the mowing height will encourage deeper roots, reduce evaporation, and improve drought tolerance.

Feeding

Feeding your lawn in summer is dependent on weather and growth patterns. Applying fertiliser in late spring should provide sufficient nutrients for the grass through to autumn. A colder, wetter summer can cause nutrient drain, and further fertiliser applications could be required for a healthy lawn.

Watering 

Taking Care of Your Lawn Through the Seasons

Taking Care of Your Lawn Through the Seasons

It is advised that you water at the first signs of drought; when the grass is still green, but shows signs of stress, such as little growth or a dulling in the normal bright green colour. Try to water evenly, and only at times when the water will soak in better, for example early morning or evening.

If your lawn is suffering from drought, you should mow as little as possible. Summer can cause the lawn to turn brown and straw-like. Good maintenance in other seasons can help your grass recover from periods of drought. Rolawn says: “Avoidance is better than cure and the only way to prevent drought is to water the lawn.”

Broadleaf weed treatment

Applying a suitable selective herbicide or all-in-one treatment, such as a lawn fertiliser or weed amp, should treat broadleaf weeds. Instead you could weed them out by hand, or use a knife/mechanical weeder.

Lawn pests

The most common lawn pests are Chafer Grubs and Leatherjackets, and can cause substantial damage to lawns. If you see areas of poorly growing, yellowing grass, check for grubs feeding on grass roots. Birds or badgers digging for grubs can also indicate that grubs are present. These can be easily and safely controlled, by using a suitable nematode-based product.

Autumn

Leaves and debris

Use a light rake or brush to keep the lawn free of any leaves falling from the trees.

Vegetation

Grass relies on light, the correct balance of heat, water, air, and food. Foliage, surrounding shrubs, and tress around the lawn should be cut back if possible, to reduce the competition for essential nutrients and water, and to avoid leaving parts of the lawn in constant shade.

Mowing 

As the days are shorter and temperatures drop, the rate at which the grass grows will slow down, meaning that it will need to be mowed less often. Rolawn says: “It is also a good idea to raise the height of cut as winter approaches.”

Scarification

Scarification can be done using a spring-tine rake, by forcefully pulling the rake through the turf. Electric or petrol scarifiers are also available to hire from garden centres or DIY stores. Rolawn explains: “Scarification reduces the build-up of dead grass matter, roots and moss which can cause increased stress to the grass plants.”

Feeding

Feeding in autumn will supply the lawn with essential nutrients to strengthen it in the winter. Rolawn advises: “As autumn progresses, damp conditions can lead to diseases such as fusarium patch. Applying an autumn lawn food in early autumn will help combat these by strengthening the grass plants as well as giving your lawn an attractive green colour.”

Aeration

“Aerate consolidated areas of the lawn to relieve compaction, improve drainage and allow more air into the root system,” says Rolawn. “Use a fork to spike the lawn 25-50mm apart.”1 For large lawns, garden centres and DIY stores hire out aerating machines.

Winter

Rest the lawn

Rolawn advises to rest the lawn as much as possible in winter. They say to stay off the grass when it is wet or frosty, as the grass plants are not actively growing and will not repair themselves until spring.

Mowing

Only mow your lawn when absolutely necessary. This will depend on the weather and temperature at the time. Avoid mowing if heavy frosts are expected or when the ground is very wet.

Worms

Worms improve the nutrient content of soil and benefit soil structure. Worm casts are best left to dry and swept away with an outdoor brush.

Preparing for spring

Wintertime is a good opportunity to get ready for the warmer seasons. You can be proactive by: servicing your mower, tidying the shed, sharpening edging shears, and organising for spring.

1 http://www.rolawn.co.uk/seasonal-lawn-care-guide/

 

 

Reducing Your Expenses as a Homeowner

Published On: March 2, 2015 at 12:14 pm

Author:

Categories: Landlord News

Tags: ,

Owning a house can be expensive, and not just because of the mortgage repayments and deposit. All of the small things can add up to have an impact on your finances.

Even if you are meticulous in managing your money, there are simple ways to reduce your home expenses.

Controlling your mortgage

Reducing Your Expenses as a Homeowner

Reducing Your Expenses as a Homeowner

Often, your highest regular expense is your mortgage repayments. But you could reduce the affect it has on your spending.

  • Look into remortgaging to benefit from low interest rates.
  • By cutting the time left on your mortgage, you will save on interest in the long term.
  • Pay half of your monthly mortgage payments every two weeks.

Cut your utilities

Being in charge of bills means that you can be strict about turning the lights off. If this is something that concerns you, or your bills are still high, you can follow these simple steps to help:

  • Make sure that your heating system works correctly; you do not want to waste energy by constantly turning up the thermostat if it is faulty.
  • Consider using apps to control the heating when you are out of your home.
  • Use timers on your lights so that they’re only on when they need to be.

Save on water

In the bathroom, fix any leaks immediately and consider flow-restricting shower heads.

You can also save water in your kitchen, by only using the dishwasher when it is completely full. Washing your laundry in full loads will also use less water.

Learn DIY

There are many small projects around the house that you could learn to do yourself, and save on calling in professionals.

  • Curtains can be easy to sew if you use plain colours or a simple pattern.
  • If you don’t want to replace furniture, but it could do with an update, try refinishing or redecorating them yourself.
  • You could even do minor maintenance jobs like clearing the gutters yourself, if they are easy to reach.

If your priority is keeping costs down, these simple tips could stop your home having more of an effect on your finances.

RLA says Tenants are Let Down by Poor Enforcement

Landlords are calling for the next Government to conduct a review of the enforcement of regulations in the private rental sector.

The Residential Landlords Association (RLA) believe that tenants are being let down by a lack of proper enforcement of the powers that already exist to resolve poor housing conditions.

Last week, Liverpool City Council revealed plans for the launch of the country’s biggest landlord licensing scheme.

RLA says Tenants are Let Down by Poor Enforcement

RLA says Tenants are Let Down by Poor Enforcement

However, this arrives as the Council is cutting its environment health services, which is responsible for the scheme, by around 25%.1

A study from the Local Government Information Unit and Management Journal has found that 54% of local authorities think that they are in danger of being unable to fund their statutory services.1

In 2013, the cross-party Communities and Local Government Select Committee report on the private rental sector cautioned that it was “concerned about reports of reductions in staff who have responsibility for enforcement and tenancy relations, and who have an important role in making approaches to raising standards successful.”

The same report also warned: “The police are sometimes unaware of their responsibilities in dealing with reports of illegal eviction.”1

The RLA is now writing to all political parties to ask them to commit to undertaking a review of the capacity and capabilities of local authorities, the courts, the police, and Trading Standards to impose the powers they already have.

Chairman of the RLA, Alan Ward, says: “The RLA is fully supportive of regulations that protect both tenants and good landlords. But it cannot be right that regulations are not being enforced properly. This lets tenants and good landlords down.

“The reality is that we can regulate all we like, but without proper enforcement, then it becomes meaningless. Whilst debates on the private rented sector will intensify as we approach polling day, we need to think carefully about what can and cannot be enforced.

“It’s time to end the false belief that regulations in themselves will help solve the problems in the sector. Instead, we need a smarter approach to root out the minority of crooks who cause misery for tenants and bring the sector into disrepute.”1

1 http://www.landlordtoday.co.uk/news_features/Tenants-let-down-by-poor-enforcement-says-RLA

 

Landlords Discuss New Investors in the Market

Published On: February 26, 2015 at 4:51 pm

Author:

Categories: Landlord News

Tags: ,,

Landlords have taken to the Landlord Referencing forum to discuss the changes to the private rental sector, and how newcomer investors will deal with these responsibilities.

One user begins by highlighting the strength of the buy-to-let market at present. They explain that loans increased by 37% in January, and that 2015 is expected to be a “boom year” for investors.

They continue: “An increase in the number of products being offered to landlords at very attractive rates is encouraging more investment.”

However, the user then questions whether this will continue with changing legislation in the sector, including the Deregulation Bill, which will make the section 21 notice to evict tenants more difficult. They ask: “Have the major lenders taken this into consideration, or will the penny only drop when landlords begin to default on their loans because of delays in evictions and difficulty in recovering rent arrears?”

They also bring up Universal Credit, which is expected to be rolled out nationwide this year.

They conclude: “Buy-to-let landlords are riding the crest of a wave of increased demand at the moment, but there are several changes coming which might have a negative impact on the market, and therefore the growth.”1

Landlord Mary Latham is quick to respond, saying: “The big problem is that most people go into buy-to-let without knowing what is really involved; they don’t know the legislation or regulation never mind the ongoing issues or rent arrears, property damages and anti-social behaviour.

“Most tenants are good tenants and many landlords get away with winging it for years, but when the trouble does start they have no idea how to deal with it nor how to pay their loans without income.

“I really dread the fact that many people will be investing their pensions in buy-to-let soon; they think it is passive income and it just isn’t. They will ruin their retirements after working all their adult lives.”

A user in West Yorkshire, Adam Hosker, offers his advice: “Or, they could get a good letting agent and it becomes hands-off again.”

He says that landlords can appoint work to their agent, and if they want to go it alone, it is the “risk they take.”

Landlords Discuss New Investors in the Market

Landlords Discuss New Investors in the Market

Hosker does believe that Universal Credit could cause problems, but he does not expect it to go badly. He also explains that rent controls would be bad for the sector, but that “no party” supports them.

He predicts landlords in London will move away from the market if house prices continue increasing. He says: “We should see higher landlord investment up north as rental yields are more investor friendly.”

Latham replies, saying that although letting agents can be a good option, landlords “cannot devolve their legal responsibilities…to anyone.”1

Hosker then agrees, stating: “It’s still you stood up in court.”1

A landlord named Geoff enters the conversation, saying: “I usually agree with Mary’s opinions. I fear that there are many who will come a cropper purely through lack of knowledge.

“Getting a good letting agent being crucial to those going down that route.”

A user named Patricia A explains her thoughts on agents: “If letting agencies do have qualifications, it does not mean that they look after the landlord’s interests before their own.”

Geoff goes on to comment on the figures in the buy-to-let market. He says of the high lending: “Obviously a lot of this borrowing will be by experienced existing property guys taking advantage of the low interest rates and knowing the market.

“Unfortunately, many of the newcomers will see the headlines and think that it’s easy.”

He adds: “Borrowing the money and buying a property is the easy bit.”1

Patricia says that she has noticed: “These newbie landlords are listening to the get rich quick guys who are selling their expertise.”

She then says: “One thing I have learnt is that tenants who have problems go to the private landlord first. So a private landlord on his own has to be pretty savvy.”

She concludes the discussion: “It is right that all new landlords should be taught about the pitfalls and the legislation. It would save them so much grief. The sooner all tenants know their obligations and responsibilities, and the bad tenants learn that small landlords are not naïve and are well-educated in the letting industry, the better it will be for all.”1

1 http://www.landlordreferencing.co.uk/forum/discuss/community-forum/buy-to-let-landlords-continue-to-invest-in-property-for-rent-in-uk-12-reasons-why-this-might-change/