The rental market is highly lucrative and full of opportunity, with soaring demand and lists of people looking to rent. As a landlord, you are set to gain a good return on investment; it’s just a bit more complex than it used to be.

Not conducting tenant screening
It’s vital to carry out the right background checks. The last thing you need is to place a tenant who is problematic when it comes to damage to your property or paying rent. Credit checks and references are good ways to ensure you are letting your property to the right tenants.

Not keeping on top of maintenance
It’s imperative to keep on top of your property. Small issues can very quickly become expensive problems if not dealt with quickly. If tenants live happily in a well-maintained property, then this reduces the risk of accidents, claims, or losses in revenue if your tenant decides to leave.

Not conducting inspections
A great way to prevent expensive repairs is to conduct regular inspections of the property. This will help you identify any potential problems before they become repairs. It's vital that you give your tenants at least 24 hours' notice before conducting viewings. It’s less about checking up on tenants and more about keeping your property in good condition.

Neglecting legal obligations
From the right safety checks to the correct level of insurance, there is a lot to remember. Having the right tenancy agreement is also vital, and you don’t want to skim over the details of this. It’s important to define the cost of rent and what it covers to notice periods. It’s also important to maintain records of rent payments, and while some things may not be a legal requirement, they can help your case if legal disputes arise.

Incorrect pricing
When deciding how much rent to charge, it’s important to strike the right balance. You don’t want to charge too much, which could lead to your property being vacant. On the other hand, you must factor in your maintenance costs and the area where your property is located.

Not using a letting agent
A letting agent can take care of as much or as little of all these processes for you, which helps protect your investment and ensures your rights as a landlord are protected. Managing your own buy-to-let property is a time-consuming business. But more than that, you don't want to get caught out or increase your costs due to poor management.

Contact us today to find your buy-to-let property

The landlord-tenant relationship in the UK is often portrayed as strained in the media. Seen as one-sided often in favour of the landlord it’s sometimes justified. However, it’s always a few bad landlords who tarnish the reputation of many. The reality is that there are many great landlords letting beautiful properties, managed by reputable agents, who are changing the rental landscape for the better in the UK.

 

The journey to your ideal home is often not a short one, and if you’re contemplating taking the plunge into homeownership, you may consider renting first to test the waters. Renting provides the unique opportunity to ‘try before you buy’ and comes with a range of benefits that might just make it the perfect first move.

Here are some of the advantages to renting before you buy:

Flexibility and freedom
Renting allows a level of flexibility that buying a property does not. If you’re unsure about your long-term plans or if you’re keen on trying out a few different locations before laying down roots, renting allows you to relocate easily without being tied to a mortgage or any of the other commitments that come with owning a property.

Try out different areas
If you haven’t lived alone yet, it can be difficult to know what surroundings would best suit your lifestyle. Renting first means you can live in and explore an area before having to commit to it. It’s a great way to experience a different walk of life, try out local amenities, plan your commute, and get a feel for the community.

Maintenance and peace of mind
One of the perks of renting is that you aren’t responsible for major property repairs or maintenance, allowing you to save both time and money. This is a great way to ease yourself into homeownership, as you can focus on gaining your independence without feeling like you’ve been thrown into the deep end on your own.

Gain experience
Being a reliable tenant is a great responsibility to take on before homeownership. You can learn how to budget around bills, how to take care of a home, and what it means to live independently. This experience will be invaluable when you buy your first home, as it will enable you to hit the ground running.

Build your credit score
Being a responsible tenant can also positively impact your credit score, which might make it easier for you to secure favourable mortgage terms when you decide to buy a home later. If you pay your rent on time consistently, this will demonstrate your financial responsibility to mortgage lenders.

Learn more about yourself
Renting a home allows you to experiment and figure out what works for you long term. This is a valuable opportunity to understand what your home requirements are in terms of size and layout, which will help you make a more informed decision when the time comes to buy your own place.

Simplify your transition
Renting puts less pressure on the transition into independent living, especially if you’re going to be living with a partner for the first time. Living in a rental home first allows time to adjust to the responsibilities of maintaining a household and to experience cohabiting with another person without the immediate commitment of ownership.

 

Contact us today to explore the exciting possibilities that renting can bring to your property journey

 

When deciding whether you’re going to use a letting agent as a tenant or a landlord, it shouldn’t be a difficult decision. It’s estimated that only 20% of all homes in England are privately rented.* This shows how many tenants and landlords choose to use and work with letting agents. We are here to demonstrate the countless advantages you would receive when using a letting agent as a landlord or a tenant.

Benefits of using a letting agent as a landlord

When becoming a landlord, you can face a lot of responsibilities and challenges. You are responsible for the maintenance and upkeep of all your properties, inside and out. These responsibilities then begin to consume all your free time, and being a landlord can become more of a burden than you thought.

Hiring a letting agent would create less responsibility for you as a landlord, meaning you’re not required to manage your tenants. This will cause fewer problems and allow you to maintain a healthy relationship with your tenants, as the letting agent will act as the middleman.

Fast turnover between tenants
When trying to discover new tenants for a property, it can be very difficult for a private landlord. Tenants usually go to letting agents to find rental properties on the market. So, to prevent your property from having vacant spaces between tenants, using a letting agent can guarantee more exposure to the public, ensuring your property is filled quickly.

Required regulations
Letting agents are great at establishing a checklist for letting out your property, ensuring you meet all the required regulations and specifications.

These include:

• Gas safety certificate
• Electrical safety certificate
• Energy performance certificate
• Proof of tenancy deposit protection
• Fire safety measures
• HMO licence
• Landlord insurance

After your property has been filled with new tenants, you may think that your letting agent is no longer necessary, but this is where they can become the most beneficial. Letting agents look after your tenants and remaining the middleman keeps the relationship professional.

The only downfall of a letting agent is that they undoubtedly charge a monthly fee. The typical cost can be up to 15% of the total monthly rent.

Benefits of using a letting agent as a tenant

When trying to discover and rent a property in the UK, it can sometimes become one of the most complicated situations, especially if you rent through an independent landlord. We are here to ensure you recognise the simplicity of renting through a letting agent instead of an independent landlord.

Renting through a letting agent will ensure you are choosing the property you desire to rent and not choosing a property because of the better landlord. It allows an element of professionalism in renting a property as they maintain a professional relationship throughout the process.

Stress-free renting

Renting through a letting agent guarantees you will receive high standards and conditions for the rental property, as the letting agent wants to keep a positive reputation within the rental sector. The letting agent also ensures that everything is legally in order. Allowing you to rent stress-free. Agents in England are not required to be registered, so we always recommend looking for agents who are part of NALS (the national approved letting scheme). Agents being registered with the NALS ensures that they are part of the client money protection scheme, ensuring your deposit and monthly rent payments are kept safe and recorded.

 

We highly recommend using a letting agent as a landlord and a tenant. It simplifies both ends of the relationship and creates a smoother process for both.

Whether you're a tenant or a landlord get in touch with us today and discover how to rent the right way

 

Parkers Properties*

 

With the Cost-of-Living Tenant Protection Act ending on March 31st, it is important that tenants and landlords alike familiarise themselves with the implications the rent cap ending will have. Let’s take a look at the changes that are set to be made and how they will affect tenants and landlords.

 

What will change?

The Cost of Living (Tenant Protection) Act 2022 had imposed a temporary rent cap and an eviction prohibition. These provisions were set to expire on March 31, 2023, but Scottish ministers opted to extend the legislation until September 30, 2023, and then again until March 31, 2024.*

 

The legislation stipulates that the act cannot be extended beyond this date. Private rents are limited to 3% up until that point, and all appropriate Rent Increase Notices issued on or before March 31st are covered by this protection.* The additional eviction protections will also expire on this date.

 

Subject to parliamentary approval, the rent adjudication process will be temporarily amended for a year, starting on April 1. Any tenant who wants to contest a notice of a rent increase can apply for rent adjudication after this date. In these circumstances, the First-tier Tribunal or Rent Service Scotland will determine rent using the lowest of the following three figures:

• The open market rate
• The landlord’s requested rent
• A comparator based on the difference between the market rent and the current rent

Implications for tenants

For tenants, the end of the Cost-of-Living Tenant Protection Act implies a potential increase in rental prices. The act’s provisions limiting annual rent increases will no longer apply to landlords. Because of this, tenants may experience changes in their monthly rental expenses, especially in areas with high demand and limited housing availability.

 

How can tenants prepare for the act’s expiration?

Here is what you can do as a tenant to prepare for the expiration of the act:

• Review your lease agreement – Carefully go through your lease agreement to understand the terms and conditions regarding rent increases. Some agreements may already have clauses addressing rent adjustments after the act’s expiration.
• Communicate with your agent – Get in touch with your estate agent to discuss any concerns or questions you may have about potential rent increases. If you wish to dispute an increase of rent, your agent can help you through the process.
• Create a budget – Assess your financial situation and create a budget that accommodates potential rent increases. This will help you make informed financial decisions moving forward.

Implications for landlords

The expiration of the Cost-of-Living Tenant Protection Act also has implications for landlords. Without the constraints imposed by the act, landlords have greater flexibility in setting rental prices. This may be advantageous for property owners, particularly in areas where rental demand is high, as they can align their prices with market conditions. They do, however, need to bear in mind the potential for tenants to dispute the rent increases.

 

What factors should landlords consider?

Here are the factors that you should consider as a landlord when the act expires:

• Market demand – Analyse the demand for rental properties in your area to gauge the potential for higher rental prices. Understanding local market conditions enables landlords to make informed decisions regarding pricing.
• Competitor analysis – Research the rental prices set by other landlords in your area. This will help you determine a competitive rate that attracts tenants and maximises your rental income.
• Tenant retention – Consider the impact of rental price increases on existing tenants. While higher prices may be tempting, losing reliable and responsible tenants can result in increased vacancies and potential financial losses.
• Use an experienced agent – An esteemed estate agent will help you take into consideration all of the above-mentioned factors to ensure you make informed decisions.

Contact us for help with all your rental needs

 

Scottish Housing News*

 

I spoke with our recommended Accountant, Andrew Keates on the benefits of putting your properties into a limited company. 

It was a very interesting chat with Andrew and it is clear that significant expense can be spared.   Some of the main examples I took from it are:

 

• Loan and Mortgage Interest qualifies for full Tax Relief, not restricted as it is on individuals
• Tax on surplus is liable at a rate of 25% compared with a potentially higher rate of 40% on some individuals
• Maintain Limited Liability protection in the event of any significant disaster (it can and does happen!!!!)
• Capital Gains Tax rate on the sale of property is less in a Company than an individual
• Ability to extract a level of Dividends that can be ‘tax-free’ in the hands of an individual
• Ability to improve Tax Planning for families and Wills/Estates etc

 

Please let me know if you would like an introduction to Andrew for a free, no-obligation chat.  Alternatively, Andrew’s email address to be contacted directly is andrew@andrewkeates.com

Head of Financial Services, Barry Forrester

 

After 14 consecutive price hikes, the BOE held interest rates at 5.25%. Off the back of this lenders started to drop their rates resulting in an influx of sub-5 % mortgage products. If the trend continues analysts suggest by the first half of this year there will be sub-4 % products available on the market. This positive outlook on interest rates makes it a great year to lock in your BTL interest rate for your BTL purchase. If we add in declining property prices this increases how far an investor's capital can go, giving access to better properties and increased potential for higher returns.

 

Some typical BTL products available are below…

 

Buy-to-let rates (Purchase and Remo)

5 year: 3.97%

2 year: 3.69%

 

Subject to the 25% deposit

 

We are happy to introduce you to one of our Mortgage Advisors, David Williams, for a no-obligation chat.  Alternatively, David’s email address is david@rightclickfinance.co.uk.

As a landlord, your multitasking is above most job roles, whether it be maintenance or your accounts. No matter how on top of things you may be, life changes when we least expect it.

 

Therefore, it’s wise to protect your property with Life Insurance at the very least. This could make sure mortgages are cleared, leaving a legacy, or helping with the transition of ownership and rents remaining paid.

 

Special attention should be paid if you have an interest-only mortgage, as the actual amount borrowed does not reduce over time. It is then important to get the right advice. 

 

Also, if you are ill, this won't affect your rent being paid, but it will affect the time you have free to manage your tenants and tasks. The good news is that we can still cover you for these events.

 

We are happy to introduce you to one of our Protection Specialist, Gabriel Gracie, for a no-obligation chat.  Alternatively, Gabriel’s email address is  gabriel@rightclickfinance.co.uk

 

It’s come to the end of your current tenancy agreement, and your tenants are ready to move on, but are you? We’re here to supply you with a simplified checklist on how to get ready to place your property back on the rental market. 


Agreed-upon end date 

If you have tenants that have decided to leave or whose contract has ended for your rental property, then you need to ensure you have both confirmed an end date. This is extremely important to ensure that all parties involved are aware of this agreed-upon end date. This should be written down in a contract. This contract should include the signatures of all parties so it can be proven that you have both agreed on it. This will give you a small fraction of safety and protection in case the tenant does not leave the property by the agreed-upon end date. Having this date in the diary will also allow you to plan so you have a smaller gap between tenants. 


Inspect the property

Inspecting the property is one of the most important steps when it’s the end of a tenancy. This will allow you to identify if they have cared and maintained respect for you and your property. Once they have removed all their belongings from the property, you need to ensure you complete a thorough inspection. This inspection will allow you to confirm whether you return their deposit or not. As a landlord, you will need to provide a good reason with evidence to not return their deposit; otherwise, they could penalise you and involve the court. During this inspection, it is also important that you make sure the past tenants have removed all their items from the property.


Check previous payments

Finally, before exchanging the keys and returning the deposit for the property, we would recommend going through all your previous payments with them. This will allow you to guarantee that they have completed all their payments. We would also recommend checking if there are no outstanding council tax and utility bills under the address of the property before parting ways with the tenants. This will allow you to once again be certain they were good, respectful tenants before returning their deposit.
 

Deep clean 

Once you have completed the process with the previous tenants and you are happy, we advise deep cleaning your property in preparation for new tenants. This is not a required step, but if the past tenants have not returned the property to its original state, you can claim the deposit. This can be used to pay for a deep cleaning service and anything else you may have to fix within the property. 

Re-list your property 

Are you happy with your property? If so, the next step is to get it back on the market! After taking updated pictures of the property, it can then be listed and show encouraging new tenants for the future.

If you are an independent landlord or a new landlord entering the market for letting, we advise collaborating with an estate agent. This will reduce your involvement with clients and leave fewer tasks on your to-do list. Allowing you to rent out your properties stress-free.

Get in touch with us today if you are seeking advice

 

Even without a mortgage, rent remains a significant expense. In the event of illness or injury preventing you from working, meeting rent and essential bills could become challenging. One way to protect yourself in such situations is by considering Income Protection.

 

Income Protection can provide coverage by ensuring that you can still meet your rent and essential bills even if you are unable to work. By taking this proactive step, you can have peace of mind knowing that you have a financial safety net in place to support you during difficult times. Remember, it's always better to be prepared for the unexpected and have a plan in place to safeguard your financial well-being.

 

While some employers offer sick pay, it is often temporary and uncertain. Income Protection can provide you with peace of mind during unexpected illnesses or injuries that prevent you from working. It can offer long-term financial support, giving you the stability you need to cover essential expenses like rent, groceries and bills. Meaning you can focus on your recovery without worrying about your financial situation. It provides security and reassurance for you and your loved ones.

 

No-one likes to think of critical conditions such as cancer or heart attacks, however, it's important to be prepared for the unexpected events that life can throw our way. Critical Illness Cover can provide a lump sum to support recovery or lifestyle adjustments, allowing you to focus on getting better without worrying about financial burdens.

 

Additionally, Life Insurance is crucial to safeguard your family's financial stability in case of unexpected events and ensures that your loved ones are taken care of in the event of your passing, providing them with the necessary support to maintain their financial well-being.

 

By planning ahead and securing these protective measures, you can have peace of mind knowing that you and your family are prepared for any of life’s twists and turns.

 

Contact a member of the team today