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Students are Among the Most Reliable Tenants

Published On: September 5, 2013 at 2:46 pm

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The National Landlords Association (NLA) has researched what it is like to be a student landlord, as many students are going back to university for the new academic year

Students are among the most reliable tenants, according to the NLA’s latest Landlord Panel.1

Students are Among the Most Reliable Tenants

Students are Among the Most Reliable Tenants

The NLA found that students are the least likely tenant type to miss a rental payment, with just 38% of student landlords saying that they have experienced arrears in the past year.1

Landlords letting to students have also seen the lowest amount of void periods, with less than one in three (30%) having empty houses in the last few months.1

The NLA also revealed that student houses and Houses of Multiple Occupation (HMOs) provide the highest rental returns, at 6.7% and 7% correspondingly. This is right above the national average of 6.1%.1

The NLA have also compared the different tenant groups, to provide a wider picture:

Arrears

59% of landlords who rent to blue-collar workers have witnessed arrears in the last 12 months, as well as 71% of landlords who let to benefit recipients. This compared to the 38% of student landlords.

Void

40% of landlords that let to families have seen their property empty in the last three months. Additionally, 49% of landlords who rent to older couples have had empty homes, against the 30% of landlords who rent to students.1

Carolyn Uphill, Chairman of the NLA, comments: “It is encouraging to see such positive figures reported by landlords who let to students. However, it’s important to highlight that letting property to students, indeed, letting to any tenant group, is not an easy win.

“As a student landlord myself, I know that it can be very hard work and requires the investment of time, as many of your tenants are living away from home for the first time. It is this dedication to the relationship that makes letting to students so rewarding.

“As with all tenancies, it’s important to establish a good, professional relationship from the start. It is also essential that you set out fair terms in your tenancy agreement and that both landlord and tenant fully understand their obligations throughout the tenancy. If you get this right then the tenancy generally runs smoothly.

“I wish student landlords and tenants a successful start to the new academic year.”1

1 http://www.landlords.org.uk/news-campaigns/news/letting-students-proves-academic-landlords

 

 

What is ARLA?

Published On: September 3, 2013 at 5:18 pm

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What is ARLA?

What is ARLA?

The Association of Residential Letting Agents (ARLA) is the largest professional body representing letting agents in the UK. Present-day members range from all varying tiers of letting agency organisations, from office employees to leading business managers.

Formed in 1981, ARLA was known as the first professional and regulatory body for letting agents in Great Britain. The foundation of the organisation came after it was noted that a separate company was required to keep standards up in the important and growing sector of the property market.

ARLA is currently based in Warwick, with additional operational offices in London and Edinburgh. Their primary roles include providing support and guidance to property professionals across all ranges of the market. One of ARLA’s key principles is to make the property market more streamlined and user-efficient for both homebuyers and sellers.

In its role as one of the biggest organisations in the property industry, ARLA is proud to be able to offer benefits to consumers and letting agents alike.

Students reliable…at paying bills

Published On: September 3, 2013 at 10:54 am

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Surprising new research has indicated that students are the, ‘most reliable tenants’ for buy-to-let landlords.

 

The National Landlords Association (NLA) has found that buy-to-let investors who rent their property to students are most likely to receive rent on time, alongside gaining a large rental income.

 

Reliable

 

Findings from the NLA survey show that students are the least likely of all tenant types to be late with their rental payments. Only 38% of student landlords experienced rent arrears during the last 12 months. This was in comparison to 59% of landlords lending to blue-collar workers and 71% lending to tenants in receipt of benefits.[1]

 

More encouraging statistics from the report show that student landlords experienced the lowest amount of void periods, with less than 30% having empty properties during the past 3 months.[1] This was substantially lower than 40% of landlords who rented their property to families and 49% who let to older partners.[1]

 

Profitable

 

Results from the survey also suggest that students represent a profitable target audience for landlords. Student tenants offer a rental yield of around 6.7%, higher than the U.K average of 6.1%.[1]

 

Would-be student landlords are advised to do their research on the location of their prospective purchase. Generally, the better the University, the more lucrative the buy-to-let market in the area. For example, rental values in Cambridge city centre have risen by 4% over the past seven years.[1]

Students reliable...at paying bills

Students reliable…at paying bills

 

Moreover, non-elite University cities are also proving to be lucrative buy-to-let regions. A study by Spareroom.co.uk showed that the average price of student house and flat share accommodation has increased by almost 22% in the past two years. Bath has seen a rise of 12.7%, with Bristol recording a growth of 7.7%.[1]

 

Encouraging

 

Chairman of the NLA Carolyn Uphill was buoyed by the results of the survey. She stated that it was, ‘encouraging to see such positive figures reported by landlords who let to students.’ She warns however that, ‘letting property to students, indeed letting to any tenant group, is not an easy win.’[1]

 

Uphill continued by saying, ‘as a student landlord myself, I know that it can be very hard work and requires the investment of time as many of your tenants are living away from home for the first time. It is this dedication to the relationship that makes letting to students so rewarding.’[1]

 

By way of advice, Uphill said that, ‘as with all tenancies, it’s important to establish a good, professional relationship from the start.’ She moved on to say that it is also, ‘essential,’ that landlords set out, ‘fair terms,’ in the tenancy agreement. This, Uphill believes, ensures that, ‘both landlord and tenant fully understand their obligations throughout the tenancy.’[1]

 

 

[1] http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/10282796/Students-most-reliable-tenants-for-buy-to-let.html

 

 

 

UK Landlords Deal Directly with Tenants

Published On: August 23, 2013 at 2:39 pm

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More than half of landlords in the UK choose to not use letting or managing agents, dealing directly with their tenants.

UK Landlords Deal Directly with Tenants

UK Landlords Deal Directly with Tenants

The study by Direct Line for Business, spoke to 293 landlords, with an average portfolio of 5.3 rental properties.

The research found that 63% did not use an agent in the past 12 months, and therefore saved an average of £734 in fees.1

Over half of the respondents (53%), did not use property managers, and saved an average of £1,040 a year.1

However, the survey also revealed that 18% of landlords do not have suitable insurance.1

Head of Direct Line for Business, Jazz Gakhal, says: “Buy-to-let is growing in popularity as a result of rising rental prices and cheap mortgage lending, and many new landlords appear to be taking a much more hands-on approach.

“Estate agent fees can run into thousands of pounds a year, so landlords that can deal with the tenant directly stand to make big financial gains.

“Landlords may be able to make significant savings by taking their properties into their own hands, but it’s vital to have appropriate insurance should the worst happen.”1

1 http://old.lettingagenttoday.co.uk/news_features/Over-half-landlords-do-not-use-agents-claim

 

 

Ten Points for First Time Tenants

Published On: August 17, 2013 at 3:02 pm

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As many prospective students are moving to their university cities this September, the National Landlords Association (NLA) have advised on becoming tenants for the first time.

Chairman of the NLA, Carolyn Uphill, says: “Entering the lettings market can be daunting, particularly for those renting for the first time.

“As a student landlord myself, I am aware of the common problems and pitfalls experiences by first time tenants.

Ten Points for First Time Tenants

Ten Points for First Time Tenants

“To ensure things go smoothly, it is essential that tenants are up-to-date with their rights and responsibilities.”1

To aid with the letting process, here are ten helpful tips to remember:

  1. When searching for accommodation, ensure that landlords are members of a certified organisation, such as the NLA. Looking at the online register can check memberships. If going through a letting agency, always use one that is part of the UK Association of Letting Agents, or the Association of Residential Letting Agents (ARLA).
  1. When you have found a suitable property, enquire about any extra fees, such as check in costs. Letting agents particularly use these, and you should be aware of any additional costs before signing the contract.
  1. Read over the Gas Safety certificate to ensure that it has been updates in the past year. This is a legal obligation.
  1. Study the property’s Energy Performance Certificate to indicate how much it may cost you in bills. This must be provided when the property is advertised.
  1. Think about the whole cost of living in the property, not just the rent. Bills should be low if the house is energy efficient. If not, you can ask the landlord to consider low cost improvements, which could save you money.
  1. Take your time over reading the contact, and understand each point before signing.
  1. Do not give the deposit until you have carefully looked at the inventory and ensured that it is accurate. If there are no photographs included, request these to be taken before you pay the deposit.
  1. When you give your deposit, always know which tenancy deposit protection scheme is being used by your landlord. Legally, landlords must protect deposits in a Government-approved scheme and send the prescribed information to the tenant.
  1. When living in the property, always report accidents, breakages, or damage to the landlord or letting agent as soon as possible.
  2. When you move out of a property, leave it in the same condition as it was when you moved in (apart from general wear and tear). Leave the property clean and remove any rubbish.

1 http://www.landlords.org.uk/news-campaigns/news/advice-and-guidance-first-time-tenants

No win no fee solicitors targeting landlords

Published On: August 13, 2013 at 3:01 pm

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A rising number of ‘No win, no fee’ solicitors are targeting U.K landlords who have not sufficiently protected their tenants’ deposits.

Under Tenancy Protection Law, landlords must protect their tenant’s deposits within a Government approved scheme and subsequently pass on the information on where the money is stored to the tenant within 30 days. This information is known as the Prescribed Information. Failure to do this could lead to hefty penalties.

Solicitors are increasingly requesting information requests from tenants regarding how their deposits were protected. They then target landlords that have not informed their tenants of this requirement, despite the fact that the deposit may actually be protected.

Many landlords that have deposited safely but have not provided paperwork argue that there is no loss for tenants, therefore starting legal proceedings is highly unnecessary.

No win no fee solicitors targeting landlords

No win no fee solicitors targeting landlords

 

 

Chairman of the National Landlord Association Carolyn Uphill, is sympathetic towards landlords and questioned the motive for legal action. Uphill said, ‘you have to ask where the financial loss for the tenant is. The majority of tenant’s deposits are being protected and ninety nine per cent of tenancies end without any issues over the return of the deposit.’[1] She went on to say that in problematic cases, ‘the tenant has access to a free and impartial decision using the scheme’s dispute resolution service.’[2]

Uphill agrees however that unscrupulous landlords should face justice for their actions, stating that, ‘where there is blatant disregard for the law landlords can have no argument and must be brought to rights.’ However, she strongly opposes the actions of no win, no fee solicitors, suggesting that their actions are, ‘morally questionable, unnecessary punitive and will only work to undermine the good relationship that exists between the majority of landlords and their tenants.’[2]

Responsibility

Eddie Hooker, CEO of tenancy deposit scheme My/deposits, said that landlords must accept more of a responsibility for their actions in regards to following the law. He said that, ‘it has always been the landlord’s responsibility to protect the deposit and a vital part of the process is to pass the Prescribed Information on to the tenant.’[1] Hooker continued, ‘landlords must be aware that they are ultimately responsible even if they use a letting agent.’[1]

Mr Hooker advises landlords to, ‘check with your agent or directly with your deposit protection scheme to ensure all of your deposits have been properly protected.’[2]

Organisation

The best practice that landlords can employ is to remain organised and to ensure that all legal paperwork is dealt with efficiently. Any queries should be highlighted with a local deposit protection scheme or landlord insurance provider.

[1] http://www.property118.com/nla-warns-landlords-of-no-win-no-fee-deposit-protection-lawyers/41977/

[2] http://www.justlandlords.co.uk/news/Landlords-targeted-by-No-Win-No-Fee-Solicitors-1765.html