The Benefits of Private Landlord Lettings

admin    Tenants     private landlord, property rental, tenancy agreements

There are many advantages from renting from a private landlord. The most important advantage is that you will likely be paying less rent. And who doesn’t want to have less of an expense for their rent each month? But the advantages are not limited to the rent you’ll pay.

Communicating directly with the private landlord gives you a better chance of showing your most redeeming qualities and establishing a more personal relationship right up front. This will give you a better opportunity to show what a good tenant you would be, or to introduce a pet that you are trying to have included in your tenancy. The more a landlord likes you and gets to know you the more likely he might be to decreasing the rent. A private landlord is looking to rent to a responsible person that they can trust with their property and who will pay their rent in a timely fashion.

Since you won’t need to go through a letting agent, a private landlord does not pay an additional fee which means he can pass this saving along to the tenant by charging less rent. As a private landlord it is unlikely that he will have the means in which to perform a credit check which also cuts down on the amount of money a landlord pays out of pocket, not to mention the advantage this presents if you have bad credit, ccj’s or bankruptcy in your history.

Also because most private landlords do not perform credit checks and other administrative functions, the move in date is generally much quicker. Private landlords are looking to get their properties rented as quickly as possible so that the amount of lost revenue is kept at a minimum.

You will also find the term of tenancy to be more flexible than if you were to go through a letting agent. With a more personal relationship, you are more likely to negotiate a rental agreement that is suitable for both yourself and the landlord. The entire experience with a private landlord is more personable and can lead to a long and enjoyable relationship that benefits all those involved.

A letting agent generally charges additional fees for credit checks and references sometimes check in and check out fees, which are fees that you would not expect to pay when dealing with a private landlord. The savings can leave you with more money in your pocket for other expenses that are associated with moving.

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Renting a Property with Bad Credit, CCJ’s, IVA’s or Bankruptcy

admin    Tenants     property rental

Does having poor credit stop you for being able to rent a property? No of course not. There’s always a way to get around any problem as long as you know where to go and what to do. Just because you’ve been turned down because of bad credit or bankruptcy before at some locations, doesn’t mean
you’ll never find a place of your own.

The first thing you need to do is to find out exactly what your credit history is saying – what are potential landlords and/or letting agents seeing when they look at your credit.  Know exactly how many and who you have ccj’s with and be willing to disclose this information right from the beginning.  Being honest about your past can go a long way in getting the landlord or letting agent to see past those unfortunate problems from your past.

Don’t forget, both landlords and agents want to help you, because it means money in their pockets – they just want to know what type of a person you
are and that they will receive their money each and every month. Not every
landlord or agent goes to the trouble of getting credit checks so ask before
you go to see a potential property what references they require and do they
perform credit checks.

Try to avoid those properties that do require a credit check to be done. No sense setting yourself up for let-down right off the bat. Having said that however, you must be very cautious about renting from a landlord who doesn’t take the time to check out potential tenants. This could indicate that the landlord may not be too concerned about any problems or repairs that you may have throughout your tenancy.

One other possible avenue is to seek a property from a private landlord. Since the majority of the private sector does not have a means of doing credit checks,
your bankruptcy or bad credit need never come up. If you are able to get a
reference from a previous landlord showing what a good tenant you had been and how they had received your rent on time can also go far in securing good faith.

Bad credit does not have to define you. You could also seek a guarantor or someone who will move in with you to share the rent. This person would need to have the necessary credit rating and would be equally responsible for the rent. The landlord would have a legal right to pursue both you and your guarantor should the rent not be paid on time.

Obviously the ideal situation would not to have gotten into trouble with your credit in the first place, but because there are several reasons – some completely out of your control – for having bad credit or going bankrupt, the next step is to correct the problem and get back on track.

Calculating Tax Owed On Rental Income

admin    Landlords     calculating tax on property rentals, property rental, property rental tax, tax on property rentals

As with any sort of income producing venture, there is always the expectation that you will be required to claim this income in order to pay taxes on the rental property.  A residential letting is considered to be running your own business, whether you have one rental property or several, they are all considered to be a single business.

Property rentals can be calculated in two ways, according to the HM Revenue & Customs. If you are only renting out a furnished part of your own home to a lodger, you could be eligible under the “Rent a Room” Scheme, in which £4,250 per year or below (£2,125 if you are renting together) of your total receipts is considered the tax-free portion.  You would then pay tax on the amount over £4,250.  The down side to this particular scheme is that you may not claim expenses for this rental income.

The second more popular way of calculating tax owed on rental properties is the “Residential Lettings” version which is basically taking the total of your income, subtracting the total of your eligible expenses to come up with your Net Profit.  One of the advantages to this scheme is the fact that if you have several rental properties, you can offset a loss from one property against the profit of other rental properties.  Not to mention that being able to claim expenses will usually bring your taxable income down considerably.

How much tax you will pay is dependent on the total amount of taxable income from all sources.  Therefore, if you also have a job outside of the property rentals, you will be required to add the incomes together.

It will however be up to you as to which scheme works best for your situation.
This is just a basic guide to figuring out how to calculate the tax, but as with any tax matters, there are many exceptions, allowances and changes to the taxation rules, so it is always advisable to check out the rulings with HM Revenue & Customs in order for you to make an informed decision with no surprises down the road.

No matter how you decide to run your property rental business, remember that as a business owner you are responsible for keeping accurate and detailed records for each of your property rentals.  HM Revenue & Customs can ask to see your records along with any supporting documentation at any time, and for up to six years.

The information you will need to keep record of is:

–         All of the rental income you received along with dates you rented the property

–         All income received for services provided to tenants

–         All business expenses

–         Bank statements and any invoices, receipts or rent books

Having a rental income property can be a very rewarding and enjoyable experience – you just need to be prepared and do your research ahead of time.

IMPORTANT INFORMATION

Figures in this article were correct on the date of publishing – these figures are subject to change so they should not wholly be relied upon. Accurate and up to date information relating to tax calculation can be found by visiting the official HMRC website.

Types Of Letting Agreements

admin    Tenants     letting agreement, property rental, rental home, rental property

There are two basic letting agreements regarding letting a flat or house.  Both agreements are legally binding and should be determined by how long the unit is needed for.  No matter which letting agreement is settled on, both parties should investigate all legal documents needing to be signed to protect themselves should a problem arise.

One of the letting agreements is called, Assured Shorthold. This agreement has to be for a minimum of six months without an increase in the rental amount during this time. At no time can a landlord evict a tenant before the end of the binding letting agreement, unless there is a court order and just cause.   After the term has expired, the tenant can be asked to leave.

The second letting agreement is called, Assured Tenancy. This agreement is a more secure rental when needing housing for a longer period of time.  The landlord can not evict the tenant before the expiry of the letting agreement unless there is eviction grounds filed with a court.  If a tenant receives a notice to vacate the property, it is advised to seek legal advice immediately.  Whether the flat or house is left unoccupied by the tenant before the end of the agreement, the tenant is still liable for the rent.  There is an option of subletting the flat to another occupant, however, the landlord must approve of this change in occupancy, therefore ending the agreement.

If a tenant is not sure which letting agreement is best suited for them, it is best to investigate each agreement before signing it.  If there are going to be joint or multiple occupants in one flat or house, and the agreement states, jointly or severally liable, than all tenants are responsible for the rent and any damage charges if one or all the tenants vacate the flat or house.

Once the flat has been agreed on, a tenant should agree with an inventory and schedule of condition with the landlord.  This letting agreement can be done by either party and should be signed by both parties at the beginning and end of each let cycle. An inventory and schedule of contents states the contents in the house or flat along with the cleanliness, decoration and damage, if any, of the unit.  This assures the tenant will not be charged or be held responsible for existing damage.  It also assures the landlord the state of the flat is in good working order.

Knowing what each letting agreement entails are imperative before signing any legal document.  Moving can be a stressful situation on its own, let alone, having the added stress of having to leave the flat or house at an unwanted time.

How to take Photos That Sell Your Property

admin    Landlords, Real Estate     landlord responsibilities, preparing rental properties, property rental, rental home, rental property, rental unit

Taking pictures of your property rental in preparation for letting out your property may seem like a no brainer. However, the truth of the matter is, unless your photos are done in such a manner that highlights the attributes and focuses on the positives, you may actually cause your property some “damage” in terms of the tenant’s opinion on the property.

Before you begin taking photographs of the rental unit, it is important to consider the type of family or tenants that would probably want to let the unit. The type of property rental will obviously influence the type of tenant but keep in mind the general surroundings and the location of the property too. If your property rental for instance were in a more mature area, with plenty of activities for the elderly population, your ideal tenant would be a senior citizen.
Likewise, a property rental near a school district would probably consider having a family let out the home.

Once your family has been determined, it is important to zone in on areas of the home they would probably spend the most time. A photograph of the outside of the home is one of the easiest ways to sell or hinder the appearance of the property rental.

Aim for a day that is sunny (ideally in springtime with new buds and flowers)
when the sky is clear. Pictures with dreary appearances, often give off an
unsettling image to tenants despite it only being the weather. Make sure the
garbage is clear, the lawn is tidy and the drive is free of dirt or weeds.

Photograph the rental home centrally, making sure to get a clear shot of any detailing or unique benefits the property has (for instance, bay window projections you may wish to photograph the property rental just off centre to show depth) As you make your way through the rental home, focus on areas the tenant will spend the most time. Places like front foyers, living spaces, bathrooms and kitchens are sure-fire ways to capture attention. Again, make sure the rooms are tidy, well kept, and if furnished, organised. A messy room gives a bad impression. Note any imperfections in the room that you may want to angle away from (for instance a scuff in the floor) that a tenant could live with, but may not want to see in a photo.

Try to keep your photographs lit with the room lighting, ideally taking shots from the entrance to the room. This angle will generally give potential tenants a better idea of the room layout, and a more honest perspective as to the sizing of the rooms too.

After you’ve taken your pictures, ask a friend or two to look at them. Generally, having another perspective of your “showing material” will give you a more honest outlook on the rental property or point out any flaw you may have overseen – saving you the frustration of tenants passing over your rental
property, instead of asking to see it.

Getting The Right Rental Value for your Rental property

admin    Landlords     Landlord property protection, landlord responsibilities, property rental, property rental pricing

Understanding the proper pricing is the most important way to ensure your property lets quickly.

In order to price your rental property competitively, without selling yourself short, it is important to understand the key components to pricing your rental property prior to listing your home for rent. Looking into the various types of homes currently on the market is an easy starting point and will most likely give you a better understanding as to what type of competition you have, as well as the current pricing schedule set out by the various competition.

Different factors can allow for a higher rental price, all of which should be considered.

1)     Rental Property Type

Is your home a simple one bedroom flat, or is it an elaborate 5 bedroom home backed onto a ravine? Is the garden fenced in or was it open for all to see? The type of home is important when establishing your base point in rent for many reasons. If you have maintained or upgraded many different parts of the lot, you would be able to charge a higher price tag than those who have no gardens to offer. If your rental property has also been fixed with outdoor lighting, pool, hot tub or the like, although it may not increase the rental price substantially, it can increase it a small increment. Take a good look around your neighborhood at other rentals to see what they offer in comparison and gauge your rental property accordingly.

2)     Upgrades

Is your home fit with skylights or dishwashers? How about an extra seating area for house guests? These additional features aside from the basic list of household basics are the perfect areas to increase your rental price—with just cause. One of the main reasons people are willing to pay a little extra is for the extras included in the price. If you have upgraded your kitchen to a state-of-the-art masterpiece, you may be able
to increase the rent. Likewise, if your bathroom is fit with a claw-foot tub and floor warmer tiles, you can expect potential tenants to understand an increase in price.

3)     Services included

Are you offering full garden care with the price of your rental? Do you take care of additional expenses like garbage removal or offer security thro

ughout the building? These wonderful additions can help you increase the value of your rental easily, as people are willing to pay for the rewards of living somewhere with great service.

Taking the time to consider how your rental property differs from the standard rental unit, in both good and negative ways can help you truly understand what a fair market rental price should be. Overall, you should always price similarly to those in your current area (for the same sized unit of course) without under pricing. People have a tendency to avoid high-priced units and likewise, many people believe—if it sounds too good to be true, it normally is—don’t be this rental property or you may find yourself stuck for trying to get it let out.

Understanding Property Rental Credit Checks and Property Rental References

admin    Landlords, Tenants     letting links, letting rental, property rental, property rental credit check, property rental reference

Whether you’re a tenant or a landlord, you’ve probably heard the terms property rental credit checks and property rental references before—but if you don’t know how they should be used, or why you should ask for them—it’s just another piece of paper to add into the mix. So before you run off and get property rental credit checks and property rental references gathered up, let’s take a second to understand how they’re used – and how you can secure the best possible outcome for your checks and references, regardless of if you’re a tenant or a landlord.

A property rental credit check is essentially a piece of confirmation you are, who you say you are. A landlord will often order a property rental credit check to make sure that the tenant applying for the flat is being completely honest about who they are, as well as checking to make sure the tenant is financially fit to rent the property in question.

A property rental credit report will normally consist of various items, but mainly act as a safe guard to proprietors. The report will generally contain information about
previous bankruptcies, insolvencies, bad credit, no credit or any other outstanding financial concerns. Depending on the provider, information such as employment history and current rental arrangements may also be disclosed. The report will put any comments the current landlord may have about the tenant in question (late payments, unruly behavior etc.) as well as the duration of the letting. Some landlords however, may decline the opportunity to have any information disclosed about the tenant – should this be the case, the report will show that they have spoken with the landlord, but commentary was refused.

Property Rental References on the other hand, are a tenants way of showcasing their true “personality” via other people. The types of property rental references required varies greatly depending on the landlord, however, generally speaking a landlord likes to have 2 personal references as well as a professional reference (these may differ depending on your current rental agreement.) The landlord will normally ask for these references before signing the lease, as to confirm what the tenant is claiming – is actually true. There are situations where a landlord may put restrictions on family references, purely because of biased opinions. A family member will normally leave a glowing recommendation for a not-so-stellar family member, where as a friend (despite being a personal reference) may give tips or hints as to the potential tenants true character.

Always make sure to check your own credit history prior to applying for a lease, as you are responsible for your reports accuracy. Note any discrepancies as well as any “problematic” areas you may find. Although you may not be able to remove them, you may be able to determine your best possible explanation ahead of time, instead of being caught without any notice. Landlords do not always expect a perfect property rental credit check, but they would like to see stability, security and the capacity to live in the unit in question. Although they may seem like a burden, property rental credit checks and property rental references actually make the letting process easier for everyone involved.

What Can Tenants Renting a Flat Do About Unfit Properties?

admin    Tenants     landlord responsibilities, property rental, tenant renting a flat, tenant rights

It is typical that the landlord is responsible for the structure of the flat while it is being let to a tenant. Items such as; electrical, structural, plumbing, fixtures should be maintained and repaired by the landlord during any time of the rental period. If a rental property should sustain such a repair where it can be hazardous to the tenant renting a flat or a health issue, the landlord should be notified immediately. Most landlords will respond to such repairs and unfit properties immediately so that the tenant renting a flat does not suffer both physically and or emotionally. A tenant renting a flat needs to state the unfit portion of the unit in writing to
the landlord when the issue is observed or noted. The landlord inspects the area and gives 24 hours notice to enter the premises to repair and resolve the issue. If there was an emergency the landlord may enter the flat immediately.

There are times when the landlord will not oblige to these unfit rental property conditions when the tenant renting a flat takes appropriate action to rectify the situation.

If a tenant renting a flat has given notice to the landlord and has not had a response, the tenant renting a flat has a few options. If it is stated in the let agreement, the tenant renting a flat may fix and repair the flat and the cost of
the repairs are to be reimbursed by the landlord. A tenant renting a flat may not withhold rent for the cost of the repairs and is required to continue paying the full let amount or they can face eviction. If the landlord does not reimburse the tenant renting a flat for the repairs the tenant renting a flat brings the landlord to court and has costs awarded through the court.

When the unfit rental property falls under the health and safety issues, the tenant renting a flat can contact the local council who will investigate the unfit rental property. It is the local council that takes further action against the landlord to
ensure the flat or house is in good working condition for a tenant renting a flat.

Renting Out Houses In Multiple Occupation (HMO’s)

admin    Landlords, Tenants     HMO, property rental, rental home, rental property, rental unit