Letting Agent changes terms and conditions?

admin    Uncategorized     agents

My letting agency has recently advised me of changes to their terms and conditions in which they are increasing their landlord (and tenant) renewal fees from £84 to £132. I am a landlord of two properties, one of which renews every 6 months with rent paid (to the agent) in advance. I believe these to… Read more

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The future of rentals comes from maximising your margin with low time and cost commitment

admin    Uncategorized     agents

Our friends at Pad believe that the future of rentals comes from maximising your margin with low time and cost commitment, while ensuring long-term protection via insurance.

According to this tech savvy bunch, you’ll no longer have to take risk or get your hands dirty in order to make a reasonable margin. They also believe that due to quicker and more detailed verification, finding the best tenants (who pay well and have zero risk) is now easy and cost effective. The future seems to be digital, transparent and secure.

Pad is the UK’s first fully mobile lettings agent. We’ve checked out their market comparison and it would seem they are the lowest cost lettings service in market and that their dynamic tech could make you the highest return.

We are moving into an age where all of the grey areas in the rental exchange are removed by innovative products which look to solve conflict and pain points for everyone involved. The removal of grey areas has been achieved by Pad, primarily through their clever insurance policy which they’ve created in collaboration with A rated RSA. Insurance means that if issues arise then this is paid for by the underwriter and so damage can be fixed, rent can continue to be paid and key maintenance can be carried our quickly, without anyone loosing out. After all, Insurers like to deal with the risk we don’t like to.

As we all know, risk is a key element involved in the lettings game and Pad believe that slick mobile technology and high level tenant vetting will facilitate a smoother and less risky exchange. Pad want their members to be “less squeezed” so they have more money, more time, more happiness and less stress. Pad reward their renters for being trusted and this happiness is transferred throughout their “rental ecosystem”.

Pad use their happy landlords to refer other landlords. According to some of these landlord ambassadors, it’s possible to; list your property, find tenants, have them shown, complete on the tenancy contracts and move them in without moving from your chair. Maximum margins without “lifting a finger” sounds attractive…Actually come to think of it, you will need to lift one finger to use their digital platform.

You can find the Pad team at the future prop tech conference on Thursday 4^th May at Victoria House London. Pad are sponsoring the “hackathon”, which seeks to find the next exciting tech solution for generation rent. Alternatively, they have a live chat on their website, with someone nice, young and friendly waiting to talk.

… LandlordZONE.

View Full Article: The future of rentals comes from maximising your margin with low time and cost commitment

New Housing Court for Landlord and Tenants

admin    Uncategorized     agents

THE country’s largest landlord body is calling on the next government to set up a new housing court to speed up justice for landlords and tenants. Statistics show that that it takes an average of 43 weeks for a landlord to regain possession of a property through the courts during which time they may not […]

… LandlordZONE.

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Be aware of energy efficiency regulation changes set for April 2018

admin    Uncategorized     agents

Buy-to-let landlords have certainly faced a challenging few months. Consider the 3% additional Stamp Duty surcharge on buy-to-let properties, changes to mortgage interest tax relief and the Right to Rent scheme as a few examples.

Add to these the proposed ban on letting agent fees and the ongoing uncertainty regarding the potential impact of Brexit and it is definitely not an easy time to be a property investor.

As if these measures weren’t enough, there is now less than one year until yet more regulation comes into force.

New Minimum Energy Efficient Standards set for April 1^st 2018 are set to see many landlords unable to offer a new tenancy unless they make changes to their property.

If you are a buy-to-let investor, how will these changes affect you? What can you do to prepare? What punishments could you face if you choose to ignore the legislation changes?

Ryan Weston of Just Landlords Insurance Services, explains:

What are the Minimum Energy Efficient Standards?

“From April 1^st 2018, it will be a legal requirement for any properties let in the private rental sector to have an Energy Performance Certificate (EPC) rating of at least E. These changes were outlined in the 2015 Energy Efficiency Regulations, making it a criminal offence for landlords to offer a lease on a new tenancy for properties that do not meet this criteria.

This regulation will come into force for new lets and for tenancy renewals from the 1^st April 2018. For existing tenancies, landlords must improve their accommodation to a minimum EPC rating of E by 1^st April 2020.

The legislation applies to domestic private rented sector properties in England and Wales, meaning that properties let under an Assured Shorthold Tenancy (AST) will be affected. In addition, properties let on a protected or a statutory tenancy under the Rent Act 1976 will also be eligible.

However, there are exceptions for certain properties, such as residential buildings set for use for less than 4 months of the year.

Will there be punishments for non-compliance?

In a nutshell, yes. Any landlord found to be letting a property after the 1^st April date that does not comply with standards will be at risk of prosecution from their local authority.

Local authorities will be charged with enforcing compliance with Minimum Energy Efficiency Standards. Where an authority feels that a landlord has not complied with legislation, it can serve a compliance notice on the landlord requesting information.

Should this not be provided, or is deemed insufficient, the local authority can issue a penalty notice.

What will the penalties be?

For a single offence, penalties could accumulate to a maximum of £5,000. Additional penalties can be awarded if a landlord continues not to comply with an original penalty notice and carries on renting out a non-compliant property. Again, penalties are cumulative up to £5,000.

Further penalties can be awarded if a different tenant moves into a property that continues to operate under Minimum Energy Efficiency Standards.

What can landlords do to improve the energy efficiency of their property?

Some properties could only require a couple of small amendments in order for them to meet standards, while others will require more substantial works.

As Danielle Hughes of Kirwans law firm notes:

‘Landlords have to balance this work against the risk of them being in breach of the legislation and facing a criminal conviction and penalty fine. As long as the rating is at a minimum of E, it is up to them which methods they chose to improve the property. Careful assessment of the options and setting an appropriate plan of action over the next 12 months is the best way to ensure that the properties are ready and fully compliant by April 2018. Planning now will also have the obvious benefits of spreading the cost and making sure that the relevant third party contractors are available to undertake any necessary work.’

So what simple measures can investors undertake to improve the energy efficiency of their rental properties and thereby ensure they comply with the upcoming legislation?

Insulate walls and lofts-A very simple way for landlords to save on energy bills is to ensure that loft and cavity wall insulation is carried out on their rental accommodation. There are a number of grants that could be available to help with the cost of these measures.

Replace the boiler-Should they be able to, investors should think about replacing their boiler with one that is more energy efficient. Of course, this will hit them in the pocket initially, but the money they will save moving forwards will more than recoup the initial payment. What’s more, it will make the property more attractive for would-be tenants. Another step would be to update heating controls, such as room thermostats.

Let there be light-Investors can improve the lighting efficiency of their property in a number of different ways. Energy efficient lightbulbs are one way of cutting the cashflow. Landlords can also try low energy lighting, LEDs or compact fluorescent lights.

Double-glaze windows-Think about replacing all single-glazed windows with ones that are double-glazed. This is a sure-fire way of giving the EPC rating of a property a real boost.

Eliminate the draught-Make sure to assess all doors, loft-hatches, windows and floorboards to uncover any draughty areas. Once these problems have been sourced, think about the most efficient way of solving them. This could include using draught excluders, curtains and fillers.

This is by no means an extensive list of improvements that investors should look to make to ensure that their property meets Minimum Energy Efficiency Standards. Landlords should also be sure to check out schemes such as the Energy Company Obligation (ECO) to see if they receive funding to assist with any improvements.

Landlords should ensure that they are fully prepared for the Minimum Energy Efficiency Standards to come into force next April. If they aren’t, they can look forwards to substantial penalties, void periods and a failing investment!

Disclaimer: This article is for information only and is not official guidance, FCA approved, or legally precise. Just Landlords has used all reasonable care in compiling the information but make no warranty as to its accuracy.

… LandlordZONE.

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Sadiq Khan announces new database of criminal landlords and agents amid opposing industry views

admin    Uncategorized     agents

The London Mayor, Sadiq Khan, has announced a new database to name and shame successfully prosecuted criminal landlords and letting agents in London. The database will be published on the Mayor’s website and built in partnership with borough councils across London providing a blacklist of landlords and agents prosecuted for housing offences. The Plan is to… Read more

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Manifesto call for new housing court

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The RLA is calling on the next government to set up a new housing court to speed up justice for landlords and tenants. The new court would enable landlords and tenants to more swiftly access justice to uphold their contractual rights in respect of property possession and for action against landlords breaching the law. The […]

The post Manifesto call for new housing court appeared first on RLA Campaigns and News Centre.

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Nightmare Tenant – No rent payments, two mortgages and mounting legal fees

admin    Uncategorized     agents

Today (Thursday 27th April, 9pm) on Channel 5s “Nightmare Tenants, Slum Landlords”, a Watford landlord has a fight on his hands when his long-term tenant stops paying rent and unleashes a deluge of abuse when he tries to evict her. With rent arrears already at £6000 and mounting legal costs, builder David Simpson has been… Read more

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Making Tax Digital put on-hold…

admin    Uncategorized     agents

Breaking News – Tax: Government plans to introduce quarterly tax returns and payments have been put on-hold in the run-up to the June election, after fears of its effect on businesses. The proposed new tax regime for business, digitising tax returns, which had its scheduled plans delayed in the Spring Budget announcement, has now been […]

… LandlordZONE.

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Stamp Duty planning for purchasing partners plot?

admin    Uncategorized     agents

My partner (not married) owns a bungalow (principle residence). She has obtained planning permission for the demolition of the bungalow and to build 3 houses on the plot (1 x 4bed detached and a pair of 2 bed semi’s). My company (incorporated about a year ago to build and retain rental properties) has agreed to… Read more

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The Victoria Derbyshire Programme is looking at the ongoing issue of tenants and landlords

admin    Uncategorized     agents

The Victoria Derbyshire Programme on BBC Two and BBC News is looking at the ongoing issue of tenants and landlords. They are particularly keen to hear from readers if you are a landlord in the UK who has had a problematic tenant. Of most interest is a landlord who is currently in a serious dispute… Read more

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