Wear and tear or?

admin    Uncategorized     agents

I have just had a tenant move out. My understanding is they should leave a place as they found it.

Immaculate when she got it, but now it’s a dirty tip, belongings everywhere (which I can deal with no problem) looked like it hadn’t been hoovered or cleaned in over a year.

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Will you pass energy-efficient improvement costs onto your tenants as higher rent?

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Under proposed regulations, landlords may be required to make changes to their properties to improve their Energy Performance Certificate (EPC) ratings to C or above.

The anticipated deadline to comply with these regulations is 2025 for all new tenancies, and 2028 for all existing tenancies. But making the necessary energy-efficient improvements could be a costly exercise for many landlords, particularly those with older properties.

The landlords we surveyed estimated an average cost of £5,900 to achieve the required EPC rating however, this figure could be significantly underestimated.

Landlords who have already made the necessary improvements to their properties have spent £8,900 on average, but wider market forces such as labour costs and material shortages could push this up even further.

Pass on costs

Of the landlords we spoke to* over half said that they will pass at least some of these costs onto their tenants in a bid to recoup some of the money they will need to spend.

Tenants in London are most likely to see a rise in their rents as a result, with 68% of landlords in London saying they would share at least some of the costs with their tenants.

Whether landlords increase rents straight away or not, nearly a fifth (18%) of landlords expect them to rise as a natural consequence of the new regulations.

Finance options

While passing on some of the costs to tenants may be necessary, finding a cost-effective funding solution, such as bridging finance, might be worthwhile.

This funding could help landlords make the required changes ahead of the deadline, relieving some of the pressure, and could possibly offset the costs that tenants would otherwise see. 

For landlords unaware of the level of works required, what the associated costs will be, or what finance options are available to them, speaking to a professional mortgage broker or lender sooner rather than later could help paint a clearer picture.

Read Shawbrook’s Confronting the EPC Challenge report

*Research Methodology

Shawbrook Bank contracted Opinium to undertake research between 18th and 25th November 2021 to understand landlords’ awareness of the upcoming proposed changes to the Energy Performance Certification (EPC), which will require properties to be rated ‘C’ or above by 2025 in order to begin a new tenancy. A total 1,000 UK landlords were surveyed.

Author: Emma Cox, Managing Director of Real Estate, Shawcross Bank.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Will you pass energy-efficient improvement costs onto your tenants as higher rent? | LandlordZONE.

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Will helping mean prosecution by Councils?

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Will helping Ukrainian refugees lead to thousands of homeowners and renters being prosecuted by councils for unlicensed HMOs (Like councils prosecuted those who housed the homeless during Covid)?

Thousands of people appear to be being set up for prosecution by uncaring and revenue greedy councils on the back of the UK response to the humanitarian crisis in Ukraine.

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How can landlords make their properties more energy efficient?

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Rising energy prices are at the forefront of a cost-of-living squeeze that will be felt by many in the UK. If you’re a tenant, the rising price cap on energy is out of your control but saving money through energy efficiency is within it.

For landlords, increased energy efficiency will ensure your buy-to-let investments stay within an Energy Performance Certificate (EPC) E rating – the minimum requirement to avoid a £5,000 fine. Lower energy bills also mean happier tenants, which will encourage longer-term occupancy and attract renters in the first place.

With this in mind, we’ve compiled a comprehensive guide on the measures you can take to improve your EPC rating and make your property more energy efficient.

How to make your property more energy efficient

Improve insulation

About a third of all the heat lost, in an uninsulated home, escapes through the walls. If you want to reduce your carbon emissions and keep your tenant’s energy bills low, installing insulation in walls and floors, will make a big impact.

Install draught proofing

This is an incredibly easy way to save energy. You just need to identify and block any gaps that might let cold air in or warm air out. These include gaps between windows/doors and the frames, letterboxes, keyholes, chimneys, loft hatches, and floorboards. Solutions include self-adhesive strips for gaps between windows and doors, brushes for letterboxes or the bottom of front doors, and draught excluders or caps for chimney pots.

Upgrade to an energy-efficient heating system

Is the boiler in your property due an upgrade? Consider going for a more energy-efficient option when the time comes. Electric and biomass boilers all represent better eco-friendly alternatives to traditional gas boilers, while even condenser boilers that use gas or oil generate a lower carbon footprint.

Go double or triple glazed

If you still have single glazing, you should upgrade to double or triple glazing. It helps to minimise energy loss and can reduce condensation and make the property quieter – especially valuable if it’s on a busy road.

A cheaper alternative is secondary glazing, which is quicker and cleaner to install. It’s particularly useful for listed buildings or in conservation areas when you want to keep the external look of your windows unchanged.

Harness the sun

Even though we don’t always get the amount of sunshine we’d like in the UK, we do get enough to generate free hot water via a solar water heating system. Typically, the heat is provided by solar panels fitted to roofs and the system can also be linked to existing boilers or immersion heaters, so that if there are any problems, the conventional heating system can step in.  

Get a smart meter

A smart meter is the next generation of a gas and electricity meter. Instead of estimated billing, a smart meter automatically sends your readings to your energy supplier at least once a month (daily or half-hourly sends are optional) and lets tenants see how much they are spending on their energy usage.

Switch to LED lighting

LED lights are typically more expensive to buy (around £5, compared to £1-£2 for incandescent or halogen bulbs) however the cost savings are far greater in the long run. There is a helpful table by Electrical Counter that compares purchase prices, running prices per year, and the lifespan of each type of bulb. 

Cut your water usage

In a report by the Energy Saving Trust, showers are the biggest water user in the house (25%), followed by toilets (22%). Over 740 billion litres of water are flushed down our toilets annually in the UK, meanwhile heating water is the second-largest source of energy use in the home. Reducing water usage can make a big difference to your property’s energy efficiency. Dual flush cisterns, low flow showerheads and appliances like dishwashers or washing machines with an A+++ energy rating are all ways you can save water and money.

Small energy-saving extras that make a big difference

Saving energy doesn’t just involve home improvements or upgrades, there are smaller habits that you could share with your tenants to incorporate in their ‘every day’, to improve energy efficiency and save money on their bills. These include…

• Keep radiators clear so that heat can circulate properly
• Turn off radiators in rooms that aren’t being used
• Unplug laptops, chargers etc when they’re not being used
• Ensure dishwashers and washing machines are at full capacity when they are used
• Use the eco settings on appliances wherever

In addition to saving money and reducing your carbon footprint, your energy-saving endeavours could also be rewarded by funds and grants. To discover more about these schemes and improving the energy efficiency of your rental property, you can download a full eBook from LRG here.

Author: Michael Cook, Managing Director of National Lettings at Leaders.

Bio: With over 15 years in the property industry, Michael is responsible for both building and managing the Leaders’ Lettings portfolio across the national network of branches.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – How can landlords make their properties more energy efficient? | LandlordZONE.

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Do I pay for boarding-up after police force entry?

admin    Uncategorized     agents

I’ve got a flat that was empty for a few weeks as the tenants went on holiday. A neighbour on the second floor hadn’t seen them for a while…and thought he could smell something from my flat. He contacted the agents who look after the block at about 10:30pm.

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Buy-to-let blockbuster? Letting agent turns her hand to writing landlord book

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An estate agent has used lockdown to fulfil her ambition to write and publish a self-help guide for landlords.

Samantha Bateman, owner of Belvoir Portsmouth, mined her 18 years’ experiences in the rental industry to pen ‘Landlords, what’s holding you back?’ in just three months.

In her book, she introduces readers to the Landlord & Investor Success System designed to help them make the most profit and avoid the pitfalls.

Bateman suggests looking at re-mortgaging as a quick way to save hundreds of pounds, while also advising investors that tenants are happy to pay more for a property with gadgets and systems installed; forking out can result in maximum rent and a better chance of turning the property into a profitable investment, she advises.

Dramatic changes

“Over the past 20 years the rental market has changed dramatically,” says Bateman. “For every property that a landlord owns or manages they need to be thinking about how they can maximise the profit on their investment.”

She has included personal experiences, including when a rental property was turned into a drug den, and another which suffered a fire.

“These stories helped me to explain to landlords how to deal with challenges and avoid them in the future,” she adds.

Belvoir CEO Dorian Gonsalves says the title should prove extremely useful for landlords. “It demonstrates Samantha’s unique ability to help landlords achieve fantastic results in what is a fast-changing industry,” says Gonsalves.

“I would encourage anyone who is interested in property to read this book, which is a valuable resource for professional and personal growth.”

‘Landlords, what’s holding you back?’ is available to buy on Amazon.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Buy-to-let blockbuster? Letting agent turns her hand to writing landlord book | LandlordZONE.

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Beware attempted ‘property hijackings’ by criminal tenants, landlords are warned

admin    Uncategorized     agents

Landlords have been warned of a growing trend in ‘property hijackings’ where a tenant steals the property owner’s identity and sells the home using fake documents.

Fraudsters take on the landlord’s name by Deed Poll, which they find on the tenancy agreement, then a solicitor starts the conveyancing process, when it is difficult to spot any discrepancies.

If the transaction goes through, their ill-gotten gains are usually swiftly transferred to an overseas bank account and impossible to retrieve.

Hijackings first hit the headlines just five months ago when a vicar living outside the UK and renting out his former family home in Luton returned to find the property had been sold for £131,000 to a young couple by his former tenant.

Marc von Grundherr (pictured), director at London agent Benham and Reeves, says landlords are particularly vulnerable as they let an individual live in their property who they don’t know personally.

“Our referencing company tells us they see at least two applicants a week supplying false information but they have robust systems in place to spot fake documents,” he says.

While the situation can be resolved with the Law Society or by the lawyers’ insurers and the property owner will immediately get their property back, the stress, hassle and legal costs are enormous, he tells LandlordZONE: “If someone steals a property, landlords would miss out on the rent which, for someone who is relying on it to pay a mortgage or for care, is absolutely huge.”

Prevent hijackings

To prevent hijackings, landlords can register an anti-fraud restriction on their property with HM Land Registry, meaning that any application to register a sale or mortgage must be certified by a solicitor.

Landlords can also sign up to the Land Registry’s free property monitoring service to get an email alert if anyone applies to change the register. 

Von Grundherr advises landlords that accurate tenant referencing is essential and suggests regularly checking their own credit rating.

He adds: “When a tenant signs a rental agreement, a couple of weeks later, check they have actually moved into the property. But even if they have moved in, carry out regular inspections.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Beware attempted ‘property hijackings’ by criminal tenants, landlords are warned | LandlordZONE.

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Bank Base Rate increased by a cautious quarter to 0.75%

admin    Uncategorized     agents

The Monetary Policy Committee (MPC) voted by a majority of 8-1 to increase Bank Rate by 0.25 percentage points, to 0.75%. Only one Dove this time preferred to maintain Bank Rate at 0.5%, but there were no Hawks looking to increase the rate by 0.5%.

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REVEALED: Surge in no-win, no-fee legal firms urging tenants to take their landlords to court over deposits

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A leading housing law expert has urged private landlords to ensure that their tenants’ deposits are properly protected via one of the government’s approved schemes after witnessing a surge in no-win, no-fee solicitors entering the private rental sector.

Julie Ford (pictured), who runs landlord services firm Gothard Rowe, says she’s seen a rise in the number of adverts on social media from ‘ambulance chasing’ legal firms urging tenants to check whether their landlord has protected their deposit, promising ‘thousands of pounds’ in potential recompense.

This is because, under the Housing Act 2004, tenants can be due up to three times their original deposit in compensation if the money has not been protected properly and due process followed.

But Ford says this is only the maximum, and that the vast majority of landlords who have breached the regulations will only have to pay 1x times the deposit and not three for a first-time breach.

“Many of these legal firms also ramp up their costs, often without proof of how they arrived at the final bill, and try to put this through the court too,” she says.

“I’ve handled other cases where these firms have put through costs and claims totalling up to £20,000, and in one case £32,000 but in these cases, the landlords ended up paying a fraction of that.

“We had one landlord who faced a £10,500 claim but we settled before the court hearing for £650.”

Claims surge

Most experts agree that this surge in claim activity around deposits and other housing issues such as property disrepair has been prompted by Covid as general legal firms have seen other work dry up during the lockdowns and they have turned to the housing sector to generate revenue.

“They thought deposits and other housing matters were a lucrative and easy new income stream – but housing law is complicated and time-consuming and they often don’t have the expertise in their field that you need,” adds Ford.

“For example, sometimes they don’t realise the significant amount of paperwork that is required for a tenant to make a claim against a landlord.

“I’ve also seen several of these firms using techniques banned by the SRA’s Code of Conduct – for example not passing on ‘offers to settle’ from landlords to their tenant clients in the hope of getting a higher settlement in court.

Essex case

Her comments follow a recent case covered by LandlordZONE of an Essex landlord who faces a £10,000 fine and costs bill after it turned out that her letting agent had protected her former tenant’s deposit six months after they moved in, way over the 30-day minimum period.

The tenant then took her to court via a no-win, no-fee legal firm, having been promised three times their original deposit as an award, or around £5,000.

Read more: Have you protected your tenant's deposit properly?

Ford has now taken up the case and says she expects to dramatically reduce the likely fine and costs claim bill at a hearing this week.

But she urges landlords to know their basics particularly when it comes to deposits regardless of whether they use a letting agency or not.

“It can be stressful and time-consuming to fend off these claims and the letters these legal firms send out are usually very aggressive, so getting the deposit paperwork completed properly in the first place is a better option,” she says.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – REVEALED: Surge in no-win, no-fee legal firms urging tenants to take their landlords to court over deposits | LandlordZONE.

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