Written By Em

Em

Em Morley

Fair Wear and Tear Guide

Published On: February 24, 2015 at 10:41 am

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Categories: Landlord News

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Landlords can spend a lot of time and money ensuring that their property is appropriate for renting. Landlords will aim to achieve the highest rent possible, and they naturally expect their tenants to respect the work gone into their rental home.

However, some landlords do not expect, or budget for, wear and tear. This is an area that can become expensive, but is ever difficult to judge. Some items within a house need replacing before others, yet within the lettings industry, it can be difficult to determine whose responsibility this is.

Fair Wear and Tear Guide

Fair Wear and Tear Guide

The law states that fair wear and tear is damage or deterioration that follows normal use, or is a normal change that occurs due to the property ageing. If any damage or deterioration is the result of ordinary everyday use, then the tenant cannot be reasonably charged for refurbishing the property, or specific items within it.

For instance, if the carpet in the hallway is low quality and was new at the start of the tenancy, it may have visible wear marks at the end of the tenancy, two years later. This cannot be the tenants’ fault, because such wear is likely from a cheap carpet.

LettingCheck use a simple guide to determine what constitutes fair damage, when they conduct an inventory using their app.1 Learn more about what they do here. Number 3 indicates fair wear and tear.

Guide

  1. Brand new, unused condition – possibly still in wrapper or with new tags/labels attached.
  2. Good condition – signs of slight wear, generally lightly worn rather than marked/scuffed.
  3. Fair condition – signs of age, frayed, small light stains and marks, discolouration.
  4. Poor condition – Extensive signs of wear and tear, extensive stains/marks/tears/chips. Still functional.
  5. Very poor condition – Extensively damaged/faulty items, large stains, upholstery torn and/or dirty, pet odours/hairs.

Tenants have a duty of care to leave the property how it was when they moved in. However, landlords cannot expect to have old fixtures and fittings replaced at their tenant’s expense.

Some examples of fair wear and tear include:

  • Cracked windowpanes due to old frames.
  • Scratched or chipped woodwork paint.
  • Faded or discoloured wall/ceiling paint.
  • Cracked plaster or brickwork.
  • Structural moving causing cracks in the floor or wall tiles.
  • Worn carpets from daily use.
  • Marked kitchen counters by utensils.
  • Accidental marks on walls.
  • Normal use causing wear to white goods.

Fair wear and tear does not include any intentional or careless damage caused by tenants or their guests at any point during the tenancy.

Examples of damage not covered by fair wear and tear include:

  • Door/window glass or frame cracked from being slammed.
  • Paint discolouration from regular candle or cigarette smoke.
  • Damage by hammer/screwdriver rough use.
  • Minor damage that became worse because it was not reported sooner.

Landlords should always ensure that they have a thorough inventory at the beginning of the tenancy, to make it easier to identify fair wear and tear at the end.

1 http://www.propertyflock.co.uk/f/F06AD5564

Liverpool Launches Landlord Licensing Scheme

Published On: February 23, 2015 at 5:06 pm

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Liverpool City Council has launched a licensing scheme for private landlords.

The Labour council is now accepting applications from landlords in the private rental sector under the scheme, which will cover around 50,000 properties. From 1st April 2015, all private landlords in the city must apply for a five-year license per property. The licence will be applied under existing selective licensing legislation.

Before being offered a licence, landlords must have a fit and proper persons test, and declare any convictions relating to dishonesty, violence, drug-related offences, or breaches of tenancy law. Licensed landlords must then meet safety standards, and keep their rental homes in a good state of repair.

Liverpool Launches Landlord Licensing Scheme

Liverpool Launches Landlord Licensing Scheme

Licenses will cost £400 for the first property, and £350 for every property after that. Properties owned by landlords belonging to a council-approved accreditation scheme will only cost £200.

Cabinet Member for Housing at Liverpool City Council, Ann O’Byrne, says: “We are concerned about a number of landlords who rent properties which fail to meet satisfactory standards of tenancy and property management.”1

The National Landlords Association (NLA), has responded by saying that the scheme, “will do little or nothing to hinder the actions of criminals.”1

Local Authority Policy Officer at the NLA, Gavin Dick, says: “However, the burden of the selective licensing scheme, which Liverpool City Council will be implementing, will be shouldered by reputable landlords who will feel compelled to comply with this heavy-handed regulation.”1

Liverpool is the first major northern city to apply a whole city private rental sector licensing scheme, however, some Labour-led London boroughs have done so too. Newham Council launched a citywide scheme in January 2013, and Barking and Dagenham Council did in September.

Waltham Forest Council is also proposing a scheme to be brought in from April.

Labour is planning for private landlords to be required to sign up to a national register, to make it easier for councils who want to introduce schemes to identify landlords of certain properties.

The party has vowed to remove obstacles that prevent councils from enforcing borough or citywide schemes.

At present, councils can only apply for selective licensing in areas where they can prove there is low demand or anti-social behaviour.

1 http://www.insidehousing.co.uk/liverpool-introduces-city-wide-prs-licensing-scheme/7008419.article

Gatekeeping Case Causes Homelessness Services Review

Published On: February 23, 2015 at 4:50 pm

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Local authorities must review their homelessness services after a London council admitted to “poor practices”1 in a bid to avoid a High Court battle, lawyers have cautioned.

Southwark Council signed a consent order agreeing to stop employing tactics known as gatekeeping that stopped people making homelessness applications.

These strategies include making applicants prove they are homeless through no fault of their own, and requiring applicants to stay unemployed to receive temporary accommodation.

Lawyers have said that councils will review their own homelessness services following the “significant”1 consent order, which will leave local authorities vulnerable to judicial review claims.

Gatekeeping Case Causes Homelessness Services Review

Gatekeeping Case Causes Homelessness Services Review

A consent order is a document in which two parties can agree a set of actions and avoid a High Court battle. The consent order in this case was made public last Wednesday.

Mohammad Zovidad, an Iranian refugee, took Southwark Council to a judicial review in May 2014. He said that the Council acted unlawfully by continuously refusing to accept his homelessness application.

When his family joined him in the UK, the Council offered Zovidad temporary accommodation for only two weeks. After this period, they were expected to find housing in the private rental sector.

A partner at law firm Hodge Jones & Allen, Jayesh Kunwardia, says that the fact that the Council admitted to gatekeeping is “very significant.”

Kunwardia continues: “Other authorities will, no doubt, need to take similar steps [to Southwark] if they are being challenged in relation to gatekeeping issues.”1

Solicitor at legal firm TV Edwards, Jane Pritchard, says: “[As a result of the consent order] if you’re a director of housing, you are now going to have to review your policy.”1

The cabinet minister for housing at Southwark Council, Richard Livingstone, admitted poor practices had “crept into” the Council’s processes, but said its application policy is legally correct.

He says: “Today, when a client comes to us and declares they are homeless, their application will be treated properly.”1

1 http://www.insidehousing.co.uk/gatekeeping-case-could-cause-homelessness-services-overhaul/7008405.article#.VOsvJ6bQZJw.twitter

 

Could You Save Money by Overpaying Your Mortgage?

Published On: February 23, 2015 at 2:57 pm

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Categories: Finance News

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If 2015 is the year you want to review your mortgage, and you have some spare income coming in, then you could consider overpaying.

The Money Advice Service has compiled some simple tips to ensure you are making the right choice.

Overpaying can be a good option

If you overpay your mortgage, you could make big savings on your interest, and possibly cut years from your mortgage term.

Could You Save Money by Overpaying Your Mortgage?

Could You Save Money by Overpaying Your Mortgage?

For example, if you have a repayment mortgage of £150,000 that is being paid back over 25 years with 4.75% interest, your current mortgage payments would be £855.17 per month.

However, if you pay another £150 a month, your mortgage will drop from 25 years to 18 years and ten months. The mortgage term will be cut by six years and two months, and you would save over £29,000 on interest payments.

To work out if this is a good idea for you, you should note your outgoings and income, and see if you can afford extra payments, or even a lump sum.

If this would be possible, then you should speak to your lender.

If your interest is charged daily, then the sooner you make the additional payments, the better. If it is charged annually, then it is advisable that you make your overpayment at a time when it will count towards the interest for the year.

Some mortgages have a limit on the amount you can overpay, so make sure you are aware if this is the case, as you could have to pay a penalty charge.

Other debts

Sometimes, extra money is better spent elsewhere, or kept safe for unexpected expenses. It is crucial to consider other debts before addressing your mortgage. If you owe money on a credit or store card, or have a personal loan, these should be paid off before you make additional payments on your mortgage.

This is due to lower interest rates on mortgages than other debts.

It is also a good idea to put some money aside. The Money Advice Service suggest saving enough so that you could live off it for three months, if needs be.

Interest rate increases

If you have a variable rate mortgage, you should work out what result an interest rate rise would have on your monthly payments, and save some money in case this happens.

If you are repaying a mortgage at 3% Annual Percentage Rate (APR) variable, you should ask if you could still make repayments if the rate is changed to 6% APR.

If you would be unable to keep up payments, then you should consider a fixed rate mortgage deal.

Calculate your repayments

The Money Advice Service has created a calculator that will determine how interest rates will affect your mortgage. Work out how much you would pay every month; the exact figure would depend on your mortgage type and the lender.

If you already have a mortgage and want to see how interest rate increases will affect your payments, then enter how much money you have left to pay, and put nothing in the deposit box. The calculator can be found here.

Improving the Exterior of your Home

Published On: February 23, 2015 at 2:55 pm

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If you are planning to sell your house soon, have just moved into a new home, or think it’s time to spruce up your property, the front exterior is more important than you may think. Cleaning up the outside can change everyone’s perception of your place.

The following tips are simple, yet could give your home just what it needs to stand out.

The front door

Improving the Exterior of your Home

Improving the Exterior of your Home

The front door is usually the main entrance to your home, and is therefore the focal point from the outside. If your door has started to peel, or if the letterbox is becoming rusty, it’s time to give it a makeover.

Bright colours are an easy way to make your house attractive from the exterior. If you are not quite bold enough, a new lick of paint in the same shade as your windows and guttering can be equally as effective.

The door handle, letterbox, and your house number should not be forgotten either. Metal polish can make them appear brand new, or new ones should not be too expensive.

The windows

To some people, dirty windows are an instant turn off. It may make people think that you do not care about your property, even on the inside. People may believe there is too much to be done to the house.

You can clean them yourselves, or have a window cleaner do the trick. However, it is also wise to check out the window frames once they are cleaned, and determine whether or not they are in a good condition. Windows should last about 20 years, so if you have had them for this length of time, it may be worth considering replacing them.

Plants

At this time of year, gardens can be looking very brown and unhealthy. Adding colour with potted plants or hanging baskets can bring your house to life.

This is a quick and cheap way of making your home more attractive, and ready-potted containers can be bought from garden centres.

Tidying up

Weeds that break through the driveway, drainpipes that are overflowing, and rubbish out for collection are all things that can put people off.

By ensuring things are packed away and tidy, you can save people being instantly discouraged to look further.

Try to make small efforts to give your house a whole new look, and if you are trying to sell, people will hopefully be excited to look inside.

Making Money from Your Home Without Selling

You can spend lots of money on monthly rents and mortgage repayments, but it is possible to make some money from your home.

If you are in need of some extra cash, or even a regular source of income, you could make money on your house. Mortgages or rents are often people’s highest monthly bills, so earning extra from your property makes sense.

Some of these ideas are not appropriate for everyone, especially considering some landlords or mortgage providers will not allow them. However, checking with them can ensure you do not miss out on another earner.

Renting rooms

Making Money from Your Home Without Selling

Making Money from Your Home Without Selling

Those that rent out a furnished room in their home can earn up to £4,250 a year, without being charged tax. This is a deliberate tax incentive to try to ease the housing shortage in the country. It can also leave you with hundreds of extra pounds a month. Official guidance on this system can be found here.

Obviously by doing this you will have someone else living in your home, which may not be ideal for everybody. If you would prefer to earn extra income occasionally, then you can advertise a spare room for short breaks on Airbnb or Wimdu. This is especially effective if you live in a popular city such as London or Edinburgh.

Your drive

The UK is not just lacking in housing, some parts of the country are hugely short of affordable parking for those going to work or travelling from an airport.

You could rent out your drive if it is unused through a website such as JustPark, Park On My Drive, or YourParkingSpace. Top parking spaces can make a couple of hundred pounds per month; however, around £50 is more common.

A movie star

This is not the most obvious way of making money on your property, but it is possible to rent out your home as a film set. This is easier if your house is particularly quirky or attractive. You can put your home onto an online agency; however, they will usually take a cut of profits if your house is chosen.

Film crews will pay hundreds of pounds to use your property, however, there is not much demand for this to be a regular earner. If a major location scout picks out your home, then you could make lots of money, although this is very rare and unlikely for most people. Search on My House Your Shoot for examples of other properties.

Selling

We’re not talking selling your house, but rather any old possessions that are taking up valuable room. From CDs, to clothes, to children’s toys, if you do not plan to use them again, you could make some money and space.

If you head to your local car boot sale, ensure that you are clear about how much you want to make from everything and prepare to haggle. You could sell on a website such as Preloved, eBay, or Gumtree. You could also look for a local Facebook page dedicated to selling in your area.

Books, CDs, DVDs, computer games, and electrical equipment can be sold to musicMagpie or Cash in your Gadgets, however, you could make more money by selling the best items yourself.

Students

If you don’t like the idea of a permanent lodger, then you could look to earn some extra money, and help someone out, by offering your home to a foreign language or exchange student. Students can pay around £100 a week for accommodation, although this usually includes all bills and maybe food. They may also expect a packed lunch every day!

However, you will have the pleasure of learning about different cultures, and potentially learning a new language in the process. Contact local language schools, colleges, and universities to see if they have a pairing service for students and hosts.