LATEST: More Airbnb landlords are switching to traditional renting, report agents

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The troubled short-lets platform is facing several exponential threats as the Coronavirus lockdown decimates the travel sector and forces its landlords to look for new sources of rental income.

Airbnb is to cut 25% of its workforce and has scaled back its investment activity as the Californian based company (pictured) struggles to cope with the financial whirlwind whipping through the travel business.

The £30 billion house sharing platform, as it likes to be known, faces a clutch of potentially terminal problems.

National and international travel has ground to a halt and, because it doesn’t own any of the properties advertised on its site, it can do little to diversify during the Coronavirus crisis.

It also faces a third and potentially much more serious problem. Short-term lets landlords who were, until the lockdown, leaving it in significant numbers and turning to longer-term lets as many saw the COVID writing on the wall.

And although many UK landlords left it too late to find tenants, as soon as lockdown eases, most likely next week, landlords will continue to bleed from its listings into the arms of traditional letting agents, some commentators predict.

Longer lettings

Dominic Agace, boss of estate agency Winkworth, says that many of the firm’s 60 branches across the capital, part of a nationwide network of 100 offices, have reported an increase in landlords looking for longer lettings for properties, which had once been occupied by tourists and corporate tenants.  

“These attractive flats and houses in good locations would have been filled with AirBnB and other short stay tenants,” he says

“They are now standing empty after the ban on international travel and tourism.  We have an excellent track record in lettings across London and are seeing landlords, some of whom were customers before the short-lets boom, coming to us for expert advice to find long-term tenants.”

Savills’ Head of UK Lettings Jane Cronwright-Brown, adds: “We’re going to see a lot of landlords and property owners swapping sides who may have not considered the traditional lettings market until now”.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – LATEST: More Airbnb landlords are switching to traditional renting, report agents | LandlordZONE.

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Rental market will be first and fastest to recover after lockdown, says upbeat Savills

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Company’s lettings boss says her teams are already seeing a significant influx of tenant demand as many people prepare to move home ahead of an expected lockdown loosening announcement this weekend.

Upmarket estate agency Savills has claimed that the private rental market will be the first and fastest to recover after the lockdown is relaxed and people are allowed to move home once more.

The prediction is made by the company’s Head of UK Lettings Jane Cronwright-Brown (pictured), who claims that there is significant levels of pent-up demand within the frozen lettings market.

“By the very nature of the business, and because we can move someone in within three to five days if all the paperwork is lined up quickly enough, the rental market will pick up fastest,” she says.

“As soon as the lock down is lifted and non-essential moves are allowed, then a lot of the deals we have already agreed will be brought forward.”

Cronwright-Brown says her teams have also seen a large influx of applicants wanting to view properties, and consequently the number of virtual viewings being completed has risen significantly in recent weeks.

“But obviously they will need to see the properties in the flesh before moving in,” she adds.

Lucian Cook, the agency’s Head of UK Residential Research, says any the recovery will follow a significant reduction in rental stock and applicant numbers since Coronavirus hit the UK in mid-March.

For example, the number of tenants applying for rental property with Savills is currently 60% down on last year’s levels, although over the past two weeks market activity has picked up again as many people anticipate the easing of Coronavirus lockdown rules.

An announcement on this is expected by Boris Johnson on Sunday evening.

Read more about lettings during the lockdown.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Rental market will be first and fastest to recover after lockdown, says upbeat Savills | LandlordZONE.

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Call of the Week-New tenancies

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This week our advice team were able to offer our help to one of our members with a question they had about new tenancies during the pandemic. The landlord wanted to know if he was prohibited from starting a new tenancy at this time, during the lockdown. The guidance on this topic can be a […]

The post Call of the Week-New tenancies appeared first on RLA Campaigns and News Centre.

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Today in politics: Furlough latest, student lets, LHA rates and cladding

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We look at all the latest coronavirus news and the results of a survey into work to improve fire safety in residential buildings. Papers say furlough scheme may continue to support renters Newspaper reports today the government could continue to support renters as it winds down its furlough scheme. Matt Dathan, Deputy Political Editor at The […]

The post Today in politics: Furlough latest, student lets, LHA rates and cladding appeared first on RLA Campaigns and News Centre.

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Walking Watch Fire Safety Charges?

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I’ve received several additional service charge demands for a walking watch where there is, as yet, uncertainty as to the fire safety compliance of the blocks in which I have flats. These are already running into the hundreds of pounds per apartment.

The post Walking Watch Fire Safety Charges? appeared first on Property118.

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New Scottish Landlord Covid-19 Loan Scheme

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The Scottish Association of Landlords (SAL) has welcomed a new £5 million fund set up by the Scottish government offering interest-free loans to landlords whose tenants are having difficulty paying rent during the coronavirus crisis.

The Private Rent Sector Landlord COVID-19 Loan Scheme will offer landlords up to 100% of lost rental income for a single property.

The post New Scottish Landlord Covid-19 Loan Scheme appeared first on Property118.

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‘Commercial tenants are my biggest headache during crisis’, says mixed portfolio landlord

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Large portfolio landlord Magnet Properties says it is disappointed with shops that demand rent reductions on their premises but carry on selling their wares or services online, says boss Andrew Schuman.

Large commercial tenants are using the threat
of administration to demand rent reductions and reduce costs during the crisis,
according to one property boss.

High street chains particularly are trying to use their landlord as a buffer while using rent reduction demands as a weapon, according to Magnet Properties owner Jonathan Schuman, who says they’re telling landlords that if their shops go out of business, new tenants will be hard to find.

Luton-based Magnet Properties’ portfolio
includes 250 residential and 100 commercial properties around Bedfordshire,
Hertfordshire and Greater London.

But it isn’t the private renters who’ve caused the biggest problems since the lockdown. “I thought lots of people wouldn’t pay but I’ve been pleasantly surprised by the residential side, with only about 5% of tenants defaulting – probably because most are working people who’ve either been furloughed or benefitting from Universal Credit,” says Schuman.

Half rent

“However, one high-profile high street outlet
sent me a letter saying they’d made the decision to only pay 50% of the next
quarter’s rent so they could protect their business. Another chain has also
demanded a rent reduction – but they’re open and trading.”

Schuman has had discussions with smaller
tenants and told one charity shop that it won’t have to pay any rent while it’s
closed. However, he’s been less sympathetic if a shop has an online presence
and is still trading.

Magnet Properties has had between 60-75% of its March quarter rents but expects this to worsen in the next quarter. “My loan finance payments compared to my rent roll is no more than one third but so many companies are nowhere near that,” he adds. “A bank won’t give you a rent deferral if you have commercial funding and a healthy business.”

Read more about commercial tenants.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – ‘Commercial tenants are my biggest headache during crisis’, says mixed portfolio landlord | LandlordZONE.

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Why did Nightmare Tenants, Slum Landlords become Channel 5’s surprise hit?

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Five years and six series on from its first episode, the long-running TV series is now an international hit. We quiz one of its stars about why the show has an enduring appeal.

Nightmare Tenants, Slum Tenants regularly pulls in a million viewers on Channel 5, and it appears on the box across the world including on Netflix.

One of its stars, Paul Shamplina of Landlord Action, consequently receives letters from viewers in the USA, Germany, Holland, Poland, Spain, Belgium, Australia, New Zealand and even Hawaii.

“The show highlights the pitfalls of renting if you have a really troublesome tenant and most of the time it’s when landlords are self-managing their property and make classic mistakes,” he says.

“Of course, many cases are where tenants fall on hard times, but the stories featured on the programme are normally the extreme ones.

“The programme also shows the other side of the coin when councils are enforcing against criminal landlords who often are exploiting tenants for a financial gain, so there is a good balance of stories to tell.”

It’s not all evictions, though. One viewer called Mark asked Paul to help him propose to his fiancée by writing ‘Will you marry Mark’ inside one of his buy-to-let advice books, which was then given to the fiancée as a gift. Happily, she said yes.

What’s been your toughest eviction?

“During Series Four,
we exposed a Rogue Agent who was part of a subletting scam at a property in
Ilford, Essex. The eviction of the ten sub-letters became very hostile; we had
to call police to assist us to remove the occupants. The landlord did not get
the rent for 10 months. It was very fractious, with a lot of intimidation.”

How many episodes
have you appeared in?

“Approximately fifty.”

What is the most
common reason for evictions on the show?

“The most common
reason is non-payment of rent. But we do feature a lot of subletting scams.”

How did you get the
opportunity to appear on the show?

“Because I had
featured on other shows and Landlord action was known to the media, I was
contacted by the production company, Britesparks.”

Are you recognised in
the street?

“I get randomly
recognised, sometimes people stare at me and you know there are thinking ‘where
have I seen him before’?  The weirdest place I got asked for a selfie was
taking my daughter on a camel ride in the desert in Marrakech.”

Does it make it
more difficult having the cameras there when you’re evicting someone?

“Evicting a tenant
is a last resort for a landlord and although I have to keep the peace between
the landlord and tenant, tempers can flare.  
“I’m aware it’s not nice for a tenant to leave their home, but the cases we
feature gone on for the best part of five months, so they know they do have to
leave eventually.  

“Some tenants react
to the cameras and it can be more difficult.  I’ve had many a time where
the landlords have broken down, as a lot have faced financial ruin and end up
having to sell the property to pay the debts off. But these cases are
relatively rare.

Why do you think
it’s so popular?

“The show is real,
you see emotions, frustrations and it exposes some people who just don’t care
about their actions, including both tenants and landlords. There is no acting
and it shows both sides to renting. The programme gets a lot of engagement from
viewers.”

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – Why did Nightmare Tenants, Slum Landlords become Channel 5’s surprise hit? | LandlordZONE.

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Covid-19 Bounce Back loans for property businesses

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The Bounce Back Loan Scheme (BBLS) applies to buy to let landlords! In this video Andrew Roberts and I take a look at the eligibility criteria and how you can apply for up to £50,000 as an interest free loan for your buy to let property rental business.

The post Covid-19 Bounce Back loans for property businesses appeared first on Property118.

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BREAKING: Scots launch £5m aid fund for private landlords if they help tenants

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Aim of fund is to ensure that no tenant loses their home during the pandemic and is being offered to landlords with smaller property portfolios who’ve lost rental income.

The Scottish Government is to help hard-pushed landlords by
offering them interest-free loans from a new £5 million fund.

Eligible private sector landlords can get up to 100% of
lost rental income for a single property from the Private Rent Sector
Landlord COVID-19 Loan Scheme if their tenants are having difficulty
paying rent during the crisis.

Those who aren’t classified as businesses, have five or fewer
properties to rent and have lost rental income can apply once they’ve reached an
agreement with their tenant on managing arrears.

Housing Minister Kevin Stewart (pictured) says it wants to ensure no-one loses their home during the pandemic, which is why it passed legislation to protect tenants against eviction for six months.

“This new £5 million loan fund builds on that action and offers landlords the same security as tenants, ensuring they have financial support if tenants struggle to pay rent because of coronavirus,” he says.

Financial pressure

“While all tenants should pay their rent if they can, we
recognise the financial pressure people are facing.

“The Scottish Government encourages landlords to talk to
their tenants about rent payment issues. We also expect landlords to be as
flexible as possible with their tenants, discuss managing rental payments and
help them find sources of financial support and advice.” 

Chief executive of the Scottish Association of Landlords,
John Blackwood, adds: “Collectively the housing sector needs an approach that
protects all parts of housing in Scotland to guarantee we can provide the
different types of quality housing we need. 

“We want to continue to work with the government, as well
as other public bodies, trade bodies and charities to ensure we achieve that
and hope there will be further steps taken soon.”

Landlords facing difficulties with repayments on a mortgage are expected to ask for a mortgage repayment holiday from their lender before they apply for one of the loans.

©1999 – Present | Parkmatic Publications Ltd. All rights reserved | LandlordZONE® – BREAKING: Scots launch £5m aid fund for private landlords if they help tenants | LandlordZONE.

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