Posts with tag: Top tips

The Importance of Independent Inventories and Check-Outs to Protect Landlords’ Property Investment

Published On: July 31, 2019 at 8:45 am

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When a tenancy on a rental or investment property comes to an end, you want to know you can take back the property in the condition in which it was handed over – or at least that you can make appropriate deductions from the deposit to recover any repair and cleaning costs you may incur.

In order to do this in an era of tenancy deposit schemes, it is essential to be able to provide indisputable evidence such as that produced using an independent inventory or an unbiased check-out report.

Here, independent inventory service skribes.co.uk explains why these types of reports are more important than ever.

The cost of becoming a landlord

The number and scale of additional expenses involved with becoming a landlord take many people by surprise when they first start investing in rental property.

Because of this, it can be tempting to save a little on admin fees by choosing not to have an independent inventory or check-out report produced.

However, this can be a false economy – and while inventories are in principle optional, in practice they are an essential part of protecting yourself against false claims from tenants, or damage that you cannot prove is the fault of a departing tenant.

The extra confidence this creates can help to establish a more positive and trusting relationship between landlord and tenant, often encouraging tenants to pay their rent on time, take better care of the property, and be honest about any accidental damage that occurs.

Choosing an independent inventory clerk

A good independent inventory clerk will be able to produce accurate documentation of the fixtures and fittings in each of your properties, supported by clear, high-quality, well lit photographs with verifiable time stamps.

In a survey of more than 2,500 tenants who had part of their deposit retained, it was clear that all manner of accidental but costly damage can occur, even with ‘good’ tenants.

Examples include:

  • Broken furniture (29%)
  • Marks on the walls (24%)
  • Carpet stains (21%)
  • Redecorations (12%)
  • Mould (9%)

Inventories and check-out reports don’t just document the damage done; crucially, they also help to prove which party was at fault, allowing you to justify deductions from tenants’ deposits.

Research published in June 2019 by Citizens Advice showed that as many as 60% of tenants in the UK claim to be living in a property that has suffered disrepair in the past two years that was not their fault, and that is their landlord’s responsibility to fix.

Protecting your income as a landlord

The first half of 2019 was a challenging time for landlords’ incomes. The Fitness for Human Habitation Act Bill became an Act of Parliament on December 20th 2018 and came into force on March 20th 2019.

On May 30th 2019 it was followed by the Tenant Fees Act, which restricts security deposits on most properties to the equivalent of five weeks’ rent – still one week more than Citizens Advice originally called for – and also prevents landlords from charging tenants a check-out fee.

However, this should not be taken to mean that a check-out report is not still an important part of protecting your income as a landlord, especially at a time when more and more protection and control is being handed to renters.

Citizens Advice chief executive Gillian Guy said in May: “We look forward to working with the government to further strengthen the hand of renters in a market where they have little bargaining power.”

independent inventories

What should an independent inventory contain?

An accurate, unbiased and independent inventory and check-out report helps to remove the risk of having to pay for damages or losses that are the fault of your tenant.

It can also demonstrate that you have met your legal obligations in certain aspects of tenant safety, for example fitting and testing carbon monoxide detectors and smoke alarms.

Some of the main areas that should be covered in a landlord inventory and check-out report include:

  • Furniture, fixtures and fittings – listed with a description of their condition supported by written and time-stamped photographic evidence.
  • Alarms and detectors – mains-powered, tested and in good working order, as well as anything that needs maintenance or replacing in line with health and safety obligations.
  • Fuse boxes – these should be located and logged when new tenants move in.
  • Fire label regulations – checking and documenting compliance with furniture labelling.
  • Meter readings – recording all relevant utilities information and time-stamped meter readings when tenants move out or new tenants move in.
  • Any other details considered relevant or required for an accurate report, with a view to preventing disputes and protecting security deposits for the landlord.

Inventories and check-out reports are more than just a formality or an admin burden; they are your due diligence, ensuring that the value of your investment in your rental property is catalogued and detailed in case of any future disputes.

But ideally they go further even than that, as simply having a comprehensive inventory in place at the start of a tenancy can go a long way to preventing any disputes from arising, as tenants know you have the evidence needed to prove if damage was caused by them.

Using an independent inventory report and check-out report to recover costs

In circumstances where a departing tenant has left damage to the property, an inventory can be a crucial piece of evidence in recovering those costs from the security deposit.

With deposits now held in a third-party deposit protection scheme, you need to have this evidence if you want a good chance of succeeding with any claim to the tenant’s deposited funds.

Government guidelines published in 2019 describe an inventory as “a written record of the condition the property was in at the start of the tenancy, including details of anything that was already damaged or worn”.

While you might be reluctant to record pre-existing damage, this can be a further way to show that you are taking your own responsibilities seriously in terms of admitting your own liability – and that any damage that is caused by the tenant will be treated as their liability.

This can also be instrumental in getting the tenant to agree to the inventory, and you should always make sure that their agreement is recorded before they move in.

You are still liable for the burden of proof, and using an independent, unbiased inventory clerk for your check-in and check-out reports helps to ensure that the evidence you supply is objective and persuasive in any claim you make.

In doing so, you have a much stronger claim when one of your properties is left in an unfit condition by a tenant – and claiming against their security deposit can help to cover the cost of repair and ensure the property continues to yield a good rental income for the future too.

What Are the Unexpected Costs and Hoarding Struggles That Tenants Face During the Process of Moving?

Published On: July 15, 2019 at 9:14 am

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Tips from a removal specialist.

Moving Miscellaneous

Most companies we’ve worked with think that everything will be packed in moving boxes but this can’t happen, of course. Large furniture is always disassembled but wrapping each piece in bubble wrap takes lots of time and would only increase the time required for the job so the price goes up. Many moving companies use moving blankets to cover large pieces of furniture.

The more moving supplies such as blankets, boxes, bubble wrap etc. are needed for the job, the higher the expenses for the whole moving service.

Damaged Items From Improper Packing

Most men with van companies such as Fantastic Removals (London) offer full insurance if their professional removalist pack all your possessions prior to the move out process. If you decide to cut costs and skip booking a professional packing service, mind that the company might not take responsibility if something gets broken during transportation.

Well-trained and experienced movers drive really carefully. Most people who move have problems with their belongings but most of the time it is because they did not pack them good enough, for which moving companies do not take responsibility.

Changes in Insurance Coverage or Rates

Estimating your moving insurance costs in advance is inaccurate and leads to miscalculations. You can only get an average before actually booking the services with all the insurance that comes with it.

Insurance rates change dynamically all the time, it’s highly possible to end up with at least 10-20% increased costs for the removals insurance at the very last moment of the moving process. Have this in mind when calculating your overall removal costs as it may increase the total expenses for the service significantly.

Unpredicted Storage Costs

The cost of booking a storage service is not high if you use it for a week but the longer your office furniture remains there, the higher the more you will pay for the storage period. 

We always recommend business clients to carefully plan their move. If they need storage, the price for it should be taken into consideration before the move is completed.

Cleaning and Property Hygiene

In many occasions, the landlord or rental manager will hold the tenant responsible for cleaning the dirtiest places prior to leaving the property. Depending on how many rooms it has, the bill could swell to a few hundred in unexpected costs.  

What should people get rid of when they move?

#1 Тhings that pile at home and it’s hard to get rid of?

Hoarding is considered a mental disorder and an enemy of healthy ageing, often leading to vast amounts of clutter. Unfortunately, it often ends up rubbish. 

  • Gifts which we already possess in a similar form
    Anything from glassware and kitchenware to clothing you don’t wear or like at all. When someone receives a present like this they can’t just throw it away or give it to someone else, it’s a gift, after all.

    The impulsive solution is to stash it in a less visible space at home but in time things like this turn into a pile of useless stuff that turns into a burden that takes way too much free space. Donating these is one of your options.

  • Empty glass containers
    Jars, bottles and anything else you keep at home as a container for seeds or seasonings, as well as canned food, accumulate a lot of household waste. Many of us don’t throw it away because glass containers can be successfully upcycled into some astounding home decorations and may be used for a variety of DIY projects.

    Having not enough free time, though, only leaves you with tonnes of glass that will not be repurposed anytime soon, so we suggest throwing it away as soon as you empty it of its original content.

  • Non-functional household appliances
    When a home appliance stops working properly you either repair it or throw it away, but many do neither.

    There are many individuals who keep damaged or malfunctioning appliances at home even after they’ve bought a new one. They do this because they think the broken appliance can probably be repaired or given to someone in need who will repair it for themselves.

    Our advice in such case is to check out if the broken gadget can be repaired and if not, throw it away or give it for recycling ASAP.

    You don’t need a gadget that no one is using and probably never will unless you can use it for spare parts if you buy a new one of the exact same model.

#2. What Should People Get Rid of When They Move?

These three are the common things that most people forget about when moving out:

  • Curtains and blinds
    You won’t be needing these at the new address for several reasons:
    1. They probably won’t fit;
    2. The chances of having the same size of windows are close to 0%;
    3. Getting rid of them is a good start to change your interior design in the new home
  • Carpets
    For a similar reason, as with the curtains, a carpet that currently fits well into your room will probably have to be resized in order to fit into a new home. In case the rooms inside the new property have a larger floor surface, there will be too much free space left on the floor, which makes the old carpet not a good fit.
  • Cooker Hood Ducting
    It’s almost certain you will want to take your cooker hood with you after moving out (if moving out from an owned property).

    Help yourself by throwing the old ducting, you will need a new one because the distance from the hood to the ventilation pipe at the new building will most probably be different.

Government Issues Guidance for Landlords on their Rights and Responsibilities

Published On: May 13, 2019 at 9:54 am

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Guides for Landlords

At a time when the rules and regulations governing the private rental sector are changing regularly, the Government has tried to provide some clarity, by issuing guidance for landlords on their rights and responsibilities.

This follows a similar guide for private tenants to use.

The guidance for landlords marks a sign of added support for those letting properties in the private rental sector, to encourage investors to set and maintain high living standards.

The private rental sector has become an essential part of the UK housing market, accounting for 4.5m homes in England – this represents around 19% of all housing stock. 

For many landlords, the private rental sector offers a sound business opportunity – if you maintain your properties to a high standard! 

In addition, the relationship between landlords and tenants is essential in making this work. The guidance aims to ensure that both landlords and tenants know their rights and responsibilities, so that their relationship can be professional and positive.

The Government is dedicated to making sure that tenancies get off to a good start and, if issues do arise, they are dealt with quickly and properly. Although the vast majority of tenancies work well, there remains a small minority of rogue landlords who choose not to comply with the law, whose tenants suffer as a result. 

In situations where things do go wrong, the guidance for landlords is there to point you to the laws that apply to you and help you find further guidance on how to deal with the issue. It also helps to avoid these situations in the first place, by ensuring that you are aware of your responsibilities.

Government Issues Guidance for Landlords on their Rights and Responsibilities

The Government has worked in partnership with stakeholders from across the sector to develop the guide, including the Residential Landlords Association (RLA), National Landlords Association (NLA), Shelter and the Chartered Institute of Housing (CIH). 

“This guide is part of the Government’s work to ensure that both tenants and landlords are able to benefit from being part of a flourishing private rented sector,” says Heather Wheeler MP, the Minister for Housing and Homelessness.

The Government accepts that the vast majority of landlords in England provide decent, well-maintained properties for their tenants and are committed to acting in their tenants’ best interests. One of the main aims in producing this guidance for landlords is to foster and encourage these good practices, and to empower landlords to maintain the high standards that most already uphold. 

However, a small minority of landlords let unsafe and substandard housing to their tenants. An even smaller proportion does so knowingly and with criminal intent.

Enforcement should only be targeted at those landlords who are non-compliant or acting illegally. In order to ensure that this is the case, and that good landlords do not get into trouble unwittingly, it is vital that all landlords have a clear understanding of what is involved in providing accommodation that is deemed safe and fit for human habitation.

This guidance for landlords provides the information that you will need to maintain good standards and also makes sure that you know what the consequences are of not meeting your legal requirements.

Information on the following areas is included in the guide:

  • Licensing obligations
  • Legal requirements
  • Landlord responsibilities, including the upcoming tenant fees ban
  • Issues with a tenancy

Read the full guidelines here.

In addition, you can refer to the Government’s How to Let guide, which is available here.

Property Investment Tips for Beating Brexit

Published On: March 26, 2019 at 10:29 am

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Property firm Knight Frank has found that Brexit-related uncertainty is causing a wait-and-see approach in some property markets across the UK. Investment agency Surrenden Invest has its top property investment tips for beating Brexit…

Despite this wait-and-see attitude amongst property buyers, the UK’s chronic undersupply of rental properties and rising rents mean that property investors want to act now, rather than waiting to see what happens with the ongoing political saga.

As such, if you’re looking to invest, Surrenden Invest has shared its Brexit-beating tips for those who want to make their money work for them, sooner rather than later.

The Managing Director of the firm, Jonathan Stephens, says: “The extension to Article 50 is just the latest twist in the ongoing Brexit uncertainty. We’re finding that many investors are tired of waiting to see how it all settles. After all, the current wrangling is only over the withdrawal agreement – there’s still an incredible amount to actually sort out once the 29thMarch/12thApril/22ndMay deadline has passed. As such, we are working with investors to find Brexit-beating property investment opportunities right now, not in some distant future when the political upheaval has finally settled.”

Surrenden Invest’s first tip is to focus on existing pockets of demand. City centre living has recently come back into fashion with a vengeance, meaning that stylish homes with attractive amenities can generate excellent yields, when located in the right areas. 

As investment firm JLL observes in its 2019 Northern England Residential Forecasts: “Manchester, Leeds and Liverpool have all seen significant supply shortfalls in the face of an increase in demand from people wanting to live in the core city centres.”

For investors, this provides an opportunity to identify key city centre hotspots.

However, Surrenden Invest’s second Brexit-beating tip is to focus on the medium to long-term.

Part of this is to identify a top location, with desired amenities within a walking distance. Nevertheless, it’s about more than just location – some areas are undergoing significant redevelopments, which will appeal to tenants for the long-term. Surrenden Invest reminds landlords to look past the cranes and see what the future holds for a certain district.

Finally, the firm is encouraging investors to look at areas where both rents and house prices are rising fastest – especially, a select group of the UK’s regional cities. Birmingham, Manchester, Liverpool and Newcastle all have the right credentials, according to Surrenden Invest, meaning that landlords who focus their attention on the best-placed developments look well positioned to beat the continuing Brexit uncertainty. 

Will your investment strategy beat Brexit? If not, follow these top tips! 

Top Tips for Letting your Home, from ARLA Propertymark

Published On: March 1, 2019 at 9:57 am

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If you’re a homeowner who is thinking about letting your home to tenants, there are many things to consider before putting it onto the rental market. 

From practical advice to your legal responsibilities as a landlord, ARLA Propertymark (the Association of Residential Letting Agents) has some top tips to get you started.

Peter Savage, the President of ARLA Propertymark, says: “With the 50th annual English Housing Surveylast month finding the private rented sector shrunk from 4.7m dwellings in 2016/17 to 4.5m in 2017/18, there has never been a greater need for landlords. 

“Letting your property is a big decision, though, both for you and the tenants that will be living there, so it’s important you understand what being a landlord means. We’ve put these tips together to ensure you understand your responsibilities as a landlord, know how to protect your property, and keep your tenants happy, dealing with any issues that may arise.”

Do your research

The first thing you should do is get to know your local housing market. Research similar properties in the area and find out how much they are being let for per month. If your rent price is set too high, then prospective tenants will be instantly put off. A letting agent will be able to advise you on this.

Once you’ve done your homework, set a competitive rent and aim to keep your property filled at all times, to minimise void periods.

Check with your mortgage provider

By letting your home, you go from being a homeowner and occupier to a landlord, and, with your new status, comes great responsibility. In the first instance, you need to check if your mortgage permits you to rent out your property, as some agreements include caveats to prevent homes being let to tenants. 

If you are unsure, speak to your mortgage lender and they will be able to advise you accordingly.

Know your responsibilities

Being a landlord is a 24/7 job, so you should be prepared to receive calls from your tenant at any time during the day or night. Some issues will need immediate attention, and, unless you have a managing agent, you are responsible for all repairs and maintenance.

Get the property ready

Make sure that your property is clean and any modernisation or DIY projects are completed. It will be more attractive to prospective tenants if it’s had a fresh lick of paint, all repairs are done and, if necessary, new flooring has been installed. 

You should also think about the type of tenants that your property would be best suited to, for example, young families, students or single professionals. This will determine whether you should let it furnished or unfurnished. If possible, offer both options, so that the agent can market your property to a wider audience.

Top Tips for Letting your Home, from ARLA Propertymark

Sort out the insurance

Your existing home insurance provider must be made aware of your intention to let your property, as your policy will probably need to be amended. While specific landlord insuranceisn’t a legal requirement, it’s advisable, as the policy will protect your buildings, contents and investment as a whole. 

Rent guarantee insurance is also available to protect your rental income against tenant rent arrears.

Legal requirements

When it comes to being a landlord, there are more regulations to comply with than you could even imagine. To put it into perspective, there are currently around 150 laws that landlords must adhere to while letting a property. 

At the start of a tenancy, you must conduct Right to Rent checksunder immigration law, protect your tenant’s depositand ensure that all the essential paperwork is in place.

While it isn’t a legal requirement, it’s a very good idea to have a written tenancy agreement in place, so that both you and your tenant understand your rights and responsibilities.

The safety of your tenants is also essential, so you must also arrange a gas safety checkevery year. It’s also wise to make sure that all electrical appliances and wiring are tested regularly, too, as the Government will soon be introducing mandatory checks. Finally, it goes without saying that your rental property must be fitted with smoke alarms on every floor and carbon monoxide detectorswhere necessary.

By law, your property must have an Energy Performance Certificate(EPC) that is rated E or above. You won’t be able to legally market the home unless you reach this standard and have a certificate to prove it, so get it sorted as soon as possible – they’re valid for ten years.

Regular inspections

It’s important to undertake regular inspections of the property, although, remember that you can’t enter the home without your tenant’s permission. This is classed as trespassing and is illegal. Give them at least 24 hours’ written notice and stipulate your periodic inspection schedule in the tenancy agreement.

Choose the right agent

If you want to make the process of letting your home pain-free, then use a letting agent to manage the property and guide you on everything that you need to know. A good agent will take away the stress of finding suitable tenants and will ensure that your let complies with the right regulations.

If you use an agent, make sure that they have Client Money Protection(CMP) in place, which ensures that, if the agent goes bust or runs off with your money, you will be reimbursed. 

Good luck if you’re planning on letting your home to tenants in the near future! 

Inspection Time? Some Things you Need to Consider…

Published On: February 20, 2019 at 10:28 am

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Written by Open Doors Project Manager, Nazia Azad-Warren

When the weather warms up, it’s usually a sign for us to open up our windows and, for many of us, our cleaning supplies cabinet too! It’s that time of the year – Spring Cleaning! And if you’re a landlord or letting agent, it may also be time for your tenant’s quarterly property inspection! 

As a landlord or a letting agent, it’s important to make sure that tenants are looking after your property. You want to make sure that they are keeping it clean and tidy, not damaging anything and generally keeping the property a home that someone would want to live in.

Whilst all of the above is relevant, remember that when you go and inspect your properties, you are going into someone’s home. Remember that, because that’s important. 

The same way you would want a stranger to respect your house rules is probably the same way tenants would like you to respect theirs. 

Having said that, tenants are a diverse bunch. They can come from a variety of backgrounds, ethnicities, faiths, they may be disabled or a mixture of all the above! You will never know the ins and outs of all the things to consider for every type of person and also, people are individuals too, so their preferences could be very different to what you imagine. 

Nonetheless, it’s important to be considerate. To help you out, we’ve put together a few suggestions. Try them out! 

1. Don’t assume.

Don’t assume that people with non-British accents or from ethnic minorities have difficulties with English. However, don’t assume that because someone speaks English, they can read it or that they fully understand what you’re saying. If you feel that someone is struggling to understand you then use plain language and short sentences, avoid jargon!

2. Be mindful of objects. 

People have certain religious or sentimental objects that they revere. It’s important that we also respect these objects when in their homes. Objects include things like prayer mats, religious books/texts, beads etc. Tenants may also pray in their homes so ensure that you are aware of these spaces and if in doubt, just ask! 

3. Cultural sensitivity is not just about race and nationality. 

It’s also about knowing other types of ‘cultures’. Consider things like background, attitudes, values and disability or mental health issues. 

4. Don’t patronise. 

Your attitude is really important when entering someone’s home. It is never okay to talk down at tenants even if there is a disagreement. This can lead to a lot of issues in the future by causing the relationship to breakdown. 

One of our Open Doors Tenant Champions stated, ‘…it’s important for someone coming in to my home to never talk down at me because of my disability. This is my home, my safe space and everyone, including my landlord needs to know that’.

5. Be respectful, friendly and polite. 

Simply put, this is enough to do the trick. Remember that everyone is an individual so try and respond to individual needs. 

Most of the time, visiting a tenant’s property is nothing but a formality for both landlord and tenant, but these quick tips should make the experience a little bit nicer for you and the tenant(s). 

Good luck with the inspections! 

On a final note, if you are a landlord or letting agent and wish to learn more about sensitivity when entering someone’s home, then why not access Tai Pawb training course ‘Connect with Respect’.

Alternatively, contact Member Relations Manager Helen Roach at helen@taipawb.org