A Pleasant Surprise!

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Over the Bank Holiday I visited a house which had no hot water. Everyone was on holiday and I have this weird idea I know something about no hot water! Before I got into the car, I knew exactly what it would be.

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LLP structure achieves 85% tax reduction – CASE STUDY

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When used correctly, Limited Liability Partnerships “LLP’s” can be an excellent structure for landlords, not just for tax planning but also for the evolution of rental property businesses generally. For example, many landlords wish to eventually leave a legacy to the next generation.

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Sell or repair? At my wits end!

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The ongoing saga of my property. Spent a lot on getting doors and windows replaced, redecorated etc, just needed to get debts removed from gas and electric meters (which I had the codes for) and get the BG engineer to rest the meter on this coming Thursday.

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Bed bugs, an increasingly common problem in rentals…

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Pest Control:

In Britain, bed bugs are a relatively recent phenomenon. Most
people in Britain have never seen one or even heard of anyone reporting an
infestation, though now that seems to be changing.

Bed bug infestations were common in the United States before
World War II, however, with improvements in hygiene and chemical treatments in
the 1940s and ‘50s, they were virtually eliminated there.

But like all insects existing since ancient times they are
very persistent and survive in the most hostile environments, eventually
adapting and thriving. They exist in most parts of the world; Africa, Asia, the
Americas and Eastern Europe, and in Britain they have become more common,
warmer weather being one factor, though international travel and more hotel
stays are others.

These creatures are tiny brownish, flattened insects that
feed solely on the blood of animals, the most common types preferring feeding
on humans; they bite all warm-blooded animals, including dogs, cats, birds and
rodents.

They are mostly active at night, preferring to hide away
from daylight but remain close to where people sleep. Their flattened bodies
enable them to fit into the tiniest crevices in floors and beds. Signs they are
present are hatched and un-hatched eggs and dark spotting stains, which is their
dried excrement.

They usually bite people at night while they are sleeping, piercing
the skin with an elongated beak through which they withdraw blood. As the bite
is painless, the person seldom realises they are being bitten, but some may
develop an itchy red welt within a day or so of the bite, though for some there’s
no reaction.

These creatures are challenging to eradicate, to say the least.
It is unlikely that a DIY solution to eradication will be successful, so as
soon as an infestation is suspected pest control professionals should be called
in.

Since they are able to hide in so many different places,
inspections must be very thorough indeed and total elimination is not always a certain.
However, an experienced pest controller will know where to look for bed bugs, and
will have the equipment necessary to give the best chance of their disposal
first time.

All none essential fabric furniture should be removed, and
it may be necessary to dispose of and replace beds. Disposing of the furniture
requires great care if the infestation is not to be spread, and once the item
in question has been removed it should be burned.

If an infestation is spotted the sooner it is treated the
better as it will be much more difficult irradiate once it spreads and the bugs
become well established – the infestations can become very large.

As with any insect or rodent infestation there’s always the
question of who is responsible when a property is tenanted, tenant or landlord?

Ideally the tenancy agreement should set out clearly the
circumstances in which the tenant can be held responsible, but unless it can
clearly be shown that tenants have been responsible for the matter, and as a
policy of goodwill, it is perhaps preferable that the landlord takes on the
responsibility – after all it’s in their long-term interests.

Dealing with the problem comprehensively my mean the tenants have to move into alternative accommodation temporarily, so the landlord should contact their insurers – good landlord’s policies should cover this.

Pest Control Directory https://www.landlordzone.co.uk/suppliers-directory/pest-control

Bed Bugs – a growing problem for landlords

[Image: the common bed bug Cimex lectularius

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Police blamed for allowing Anarchy to rule in the PRS

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On another Property118 forum thread I stated …

“We are all agreed that if somebody hasn’t got money they will not suddenly find some if you successfully sue them.

What’s even worse though is feeling there is no justice.

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Chaos Theory! Changes, Changes what’s next for the Property World

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My sister and her husband have just come back from a holiday
in Vietnam and they were recounting their experience of Saigon traffic which
sounded insane. Asked whether there were any rules they told me, yes – but nobody
bothers with them! Apparently however the Vietnamese authorities have recently
introduced new strict laws, employed a large number of traffic police and
enforcement officers and they even teach children traffic rules in schools.

However adults who already occupy the roads are blissfully unaware of the laws,
signage is poor and confusing and old habits die hard or in this case very
often lead to death. Saying this despite the anarchy it could be worse, as most
people act reasonably and muddle through the mayhem to emerge unscathed most of
the time.

All this got me thinking about the challenges that face the
property industry and how changing, behaviour, culture and making things safer
for consumers is both challenging and slow. Often despite the problems being
obvious, the solutions are not. Government’s principle tool for changing things
is the law and legislation and boy have they used this liberally in recent
years. Many of the laws have been badly drafted or implemented or often need
other laws to make them effective. Enforcement of the laws is piecemeal at best
and non-existent at worst and this is often down to lack of technical expertise
and resourcing.

To be honest, the industry had been long overdue for tighter
legal constraints and a major overhaul of the market is needed. The private
rented sector has grown exponentially, demand outstrips supply and the cost of
renting have spiralled. In response to this, the Government have failed to
build sufficient new homes, cut support to vulnerable tenants and then turned
on the private sector as the source of the “crisis� and are gunning for it with
a vengeance.    

There has been little understanding that the consequences of
the rapid rise in property prices, lack of mortgage credit and general
population pressures led to the expanded rented sector. This both fuelled and
was mitigated by the growth of private landlords entering the market who were
tasked with housing the army of tenants needing a roof over their heads. In
hindsight this was never a workable solution long term, but just like the
flotilla of small boats that rescued so many from the beaches of Dunkirk, it
has kind of got the country out of a bigger mess than it may have been in.

At some stage somebody had to do something, however once
this process had started more and more has been needed to be done. This has led
to situation that undoing what has occurred is no longer an option, so
Government push on.

To this end, in the last couple of months we have seen more proposals, consultations and reports that are forming the bedrock of the next tranche of the reforms the Government has promised.

The upshot of all this, is that despite all the changes the
industry has seen over the last few years we have not seen anything yet.
Everything from the regulation of property agents, registration and redress for
landlords, reform of eviction process as well as new tenancy agreements and a
re-examination of deposits is on the table.

I list the current documents at the end of this article, however we all have to
understand the bigger picture.

We cannot rely on the assertions that the standards in the industry have been
generally high, because the majority of people involved have acted decently and
professionally. It is no longer enough to declare that abuses don’t often
happen or most people wouldn’t behave that way. The very fact that the current
system allows the minority to act the way they do means that these changes are
needed.

The reality however is that process is not easy and that
often, due to poor implementation, lack of resources or from the unforeseen
consequences that have occurred, the changes have cause panic and major
disruption to the sector. However as Chaos Theory proves, the initial
pandemonium caused by small changes, diminishes as the changes progress until
order is restored. Disruption in many sectors is now seen a positive force and
whilst in an ideal world we would like to see a big bang solution to our
problems, the evolutionary approach is often the most sustainable.

Having looked at the direction of travel the sector is
going, I can mostly see it being positive, better education of professionals,
protection to consumers and the raising of standards and quality. Yes there
will be challenges, especially if the resources are not found to increase the
housing stock and to enforce the new regulation, however I urge you all to
embrace the new era, participate in the process and ensure that your skills and
experience influence and direct the changes towards becoming a better sector.

As Tolkien’s Bilbo Baggins remarked whilst stuck in the pitch black of the
Misty Mountains tunnels “Go back? No good
at all! Go sideways? Impossible! Go forward? Only thing to do! On we go!â€�  

Get involved complete the consultations and help change things for the better.

Current Consultations.

Private Rental Sector

Tenancy Deposit Reform; A call for evidence – Closing date 5^th
September

https://www.gov.uk/government/consultations/tenancy-deposit-reform-a-call-for-evidence

Rogue Data Base Reform – Closing date 12^th October

https://www.gov.uk/government/consultations/rogue-landlord-database-reform

A New Deal for renting. Resetting the balance of rights and
responsibilities.  – Closing date 12^th
October.

https://www.gov.uk/government/consultations/a-new-deal-for-renting-resetting-the-balance-of-rights-and-responsibilities-between-landlords-and-tenants

Other Property
Consultations

Redress for purchasers of new build homes and the New Homes Ombudsman –
Closing date 22^nd August

https://www.gov.uk/government/consultations/redress-for-purchasers-of-new-build-homes-and-the-new-homes-ombudsman

Homelessness Reduction Act 2017: Call for evidence – Closing date 15^th
October

https://www.gov.uk/government/consultations/homelessness-reduction-act-2017-call-for-evidence

Mobile homes: a fit and proper person test for park home sites –
Closing date 17^th September

https://www.gov.uk/government/consultations/mobile-homes-a-fit-and-proper-person-test-for-park-home-sites

Report to Government
that will be subject to consultation.

Regulation of Property Agents – Final Report

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/818244/Regulation_of_Property_Agents_final_report.pdf

Welsh Government
Consultation

Increasing Minimum Notice Period for no fault evictions. Closing date 5^th
September

https://gov.wales/increasing-minimum-notice-period-no-fault-eviction

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Chaos Theory! Changes, Changes what’s next for the Property World | LandlordZONE.

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PRA stress tests and the benefits of incorporation – With Kate Faulkner

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Further to our previous discussions around the withdrawal of interest relief, the additional 3% stamp duty and the impact of Brexit, we take a look at the effect of the Prudential Regulation Authority’s (PRA) stress tests and the benefits of incorporation.

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The NLA is looking to improve awareness and disability accessibility in the PRS

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Disability Access:

Providing accommodation that is suitable for tenants living with a disability in the Private Rented Sector could be a profitable niche market for landlords.

But landlords should be aware that the Equality Act 2010
gives all tenants or tenant applicants, those with a genuine disability, a right
to have changes made; changes to the tenancy terms or the accommodation, changes
that are termed “reasonable adjustments� in the legislation.

Landlords are not expected to make changes to the structure
or physical features of their properties, or the common parts in the case of
flats and apartments. But if the property is otherwise suitable for disabled
living, they may be required to make reasonable adjustments to policies, practices
or the terms of the agreement, as well as provide some extra equipment or
support – the law calls these auxiliary aids.

Along these lines, the National Landlords Association (NLA) has
been doing some work recently, looking into what is needed to encourage
landlords to look into this as a potential letting option, and to educate them
on their legal obligations under the Equality Act 2010.

The NLA has co-opted in some key players in the aged and
disability sectors in order to identify specific requirements and to promote
the need for accessible housing within the private rented sector (PRS).

A roundtable discussion was hosted by the NLA with attendees
to discuss the current state of landlords’ awareness of housing modification
grants, the challenges they face and potential incentives to encourage
landlords to make their properties accessible.

Participants at the meeting included representatives from
Age UK, Foundations, the Nationwide Foundation, The Centre for Aging Better and
Abode Impact (a housing modification company).

Research by Foundations shows that only seven percent of
Disabled Facilities Grants go to private tenants, while three quarters (73
percent) of older renters live with a disability or chronic illness.

Meanwhile, the English Housing Survey 2017/18 shows that a
quarter (23 percent) of private tenants live with a long-term illness or disability.

Meera Chindooroy, Policy and Public Affairs Manager at the
NLA, says:

“There is an acute shortage of accessible housing in the
PRS. But with the aging population, this is something that we need to be
thinking about and changing now so it doesn’t become an even bigger issue in
the years to come. Landlords need to be proactive in meeting this demand.

“The roundtable is just the first step; landlords and
experts need to work collaboratively to ensure those living with disability,
limited mobility and chronic illness have homes that are suitable for their
needs. We’re developing a report outlining the changes that are required
alongside guidance to support landlords to offer accessible properties to
rent.�

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – The NLA is looking to improve awareness and disability accessibility in the PRS | LandlordZONE.

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The Alliance position on Section 21

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The landlords Alliance as part of the Fair Possession Coalition met Lord Lytton in London some time back. We have carefully examined proposals to abolish Section 21 and have listened carefully to our members.

We have concluded that the abolition of s21 is nothing more than a sop to organisations such as Shelter.

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5 things to consider before becoming an Airbnb host

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Extra income and hosting guests; we cracked open the lid to Airbnb hosting.

• Should I list my property on Airbnb?
• Is the location of my property attractive enough for guests? 
• How much time does it take to manage a short-term rental?
• How do I find out about the local legislation for short lets in my district?
• Should I enlist an Airbnb management company to manage my property? 

These are all fairly standard questions hosts ask themselves before deciding if they want to make their property available for short let. So we, at GuestReady, decided to respond to some of the most typical questions and concerns around Airbnb hosting for homeowners and property investors alike.

1. Is the location of my property attractive enough for guests? 

While the location of your property is an important indicator of the potential income you can generate on Airbnb, the success of a property and how it will perform on a booking platform depends on a multitude of factors. As a host, you need to ask yourself, what types of guest do you want to attract and what type of experience are they looking for.  If your home isn’t located in an Airbnb hotspot, then you may want to carefully consider what you are offering to your guests; is it a digital detox, easy access a myriad of hiking trails or a cosy cottage for a family getaway? Think about how easy is it for your guests to reach your property and how the different seasons will affect your occupancy rate. If your property is in the city, again you may want to ask yourself whom do you want to attract? Are you targeting business travellers, couples or groups? What amenities and services will your guests be looking for when booking your accommodation? While the location is a key element to how well your Airbnb will perform, how well you understand and respond to the needs of your guests is what will ensure its success.

2.  How much time does it take to manage a short-term rental?

Although it can be difficult to quantify how much time it will take to manage your individual vacation rental, managing a short-let can easily become a full-time job. Once your listing is up on your chosen booking site, guests will be sending messages at different times throughout the day, or at night for that matter, and they expect a prompt reply. To ensure that your guests have the best experience, and help you pull in glowing reviews for your listing, you need to make sure your property is guest-ready. Make sure the property is cleaned before check-ins and after checkouts. If a light bulb is broken, or worse you have a leak in your bathroom, you need to make sure you respond swiftly and fix the issue to minimise the impact on your guests. If you have to cancel a booking due to unexpected maintenance issues, Airbnb will penalise you for this, hence It’s important to check your property regularly. Alternatively, you can win a lot of time by working with an Airbnb management agency who can manage all your guest communications, cleaning and maintenance and even help with alternative accommodation for your guests.

3. How do I make my Airbnb stand out and optimise my rental returns?

Once you have understood who your customer is and what their expectations are, you can design your short let to meet their needs. While you can’t change much on location, how you position the property listing can have a significant impact on your occupancy rate and rental returns. To help your property stand out it is important to ensure that your property is well kept and that you invest in a professional photographer to help you position your property in the best light. Ensure that your listing description is accurate and highlights all its best features. In the description, highlight transport links, amenities and things to do in the local neighbourhood. It is essential to keep in mind that a listing description is not only a tool to attract bookings, but it also what sets the expectations of your guests. Don’t overpromise, as you will under-deliver and hurt your ratings on your chosen booking platform. If you are new to hosting, consider bringing on an Airbnb management company to help market your listing on not just one booking platform but multiple.

4. How do I find out about the local legislation for short lets in my district?

New rules and regulations are being introduced across Europe and Asia to respond to the popularity of Airbnb. Before starting to host guests at your property, familiarise yourself with the local laws and regulations to make sure you are compliant. If you have a property in London, inform yourself about the 90-day rule and consider letting your property on the short and medium-term let. It is important to note, that while it is important to comply with local legislation, make sure to keep good relations with your neighbours and let them know ahead of time that your property will be on the market for short let.

5. Should I enlist an Airbnb Property Management Company?

Managing a short-term rental can be time-consuming, and with guests becoming more demanding, more hosts are turning towards Airbnb management companies to manage their short-let for them. There are many benefits of working with an Airbnb service and management company. They help hosts ensure their property is guest-ready, checking that all the facilities and amenities are available for guests that will help make the difference between a good and bad review. Airbnb management companies actively optimise the price of your rental and ensure that your property is listed across multiple booking platforms to help you maximise occupancy rates and rental returns. They handle guest communications and ensure your property is cleaned and ready before each guest arrival. Hiring an Airbnb management company to manage your listing is considered one of the easiest ways for hosts and investors to maximise rental income and offer premium experience and service for their guests. Before signing with a management agency it is important to compare the market and ensure that you choose a BnB management company that is right for you.

Your short-let, guest-ready?

Managing an Airbnb can be very rewarding. It can increase rental yields and offer additional flexibility for homeowners to stay at the property at their convenience. Before listing a property on Airbnb or alternative booking platforms such as Booking.com or HomeAway, review the potential of the property. Why would guests book your accomodation; is it because it is conveniently located, or because it offers an escape from city life? How much time would it take to manage the property on the short-term rental market and do you have enough time to manage the property yourself? 

Speak to an expert today to find out if short-letting your property is right for you. Schedule a call with Guestready today. GuestReady offers white-glove Airbnb management services for property owners and investors who are looking to get the most value out of their investment. From 24hr guest communications to in-person check-ins, photography, professional cleaning, maintenance service and more.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – 5 things to consider before becoming an Airbnb host | LandlordZONE.

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