Gibbins Richards

Details: Published: 25 July 2022; Hits: 646

Is Being a Landlord an Easy Money Maker?

Many people think that being a landlord is easy. Rent out a property, move some people in, sit back and rake in the cash… if only it was that simple.

Any experienced landlord knows that owning rental property is hard, and it can be a 24/7 job in the event of any issues. Preparing a property for rent is just the first hurdle; ensuring your tenants are safe and the property is maintained are ongoing requirements.

In this quick read, we bust some common myths about landlords and their obligations.

Landlords don’t care about safety

Wrong! It’s at the top of the list. Tenants deserve to live in homes that are safe, and a landlord has legal (and moral) duties to ensure this.

Gas safety is hugely important, and landlords throughout the UK must ensure that any gas appliances within the property are safe to use. Tenants should be provided with a Gas Safety Certificate as soon as a tenancy starts.

Fire and carbon monoxide safety is also a legal priority for all landlords, and rental properties must be fitted with smoke alarms and carbon monoxide detectors.

Landlords pocket deposits

Historically, deposits have always been a point of contention between tenants and landlords. But these days, there are strict laws regarding tenant deposits (and landlords can wind up seriously out of pocket if they flout them). Landlords must lodge all deposits with a government-approved deposit scheme. This ensures that a deposit will be returned if the terms of the tenancy are met, if no damage is caused (beyond fair wear and tear) and if all rent and bills are paid.

Landlords disappear once tenants move in

This is a big one, especially for tenants who experience problems after they have moved into a property. That’s why it’s always important to find a rental property through an experienced letting agent.

A good landlord will ensure the property is well maintained – after all, it is their source of income. Landlords should maintain any furniture or appliances that are in the property when a tenant moves in. An inventory should be carried out at the start and end of a tenancy to ensure that both parties have information about the general condition of the property and such items. The same applies to repairs if something stops working during a tenancy.

If you’re a tenant looking for a rental or a landlord looking for a new agent, please contact us.

Details: Published: 18 July 2022; Hits: 650

It pays to sit down once a year and review how your buy-to-let is performing and flag up any potential issues looming on the horizon.

We’re all familiar with an MOT, an annual check-up to ensure your car is safe and good to go for the year ahead. Well, let’s apply the same concept to a buy-to-let investment.

Even if your current tenancy is ticking along nicely, a property MOT can be a helpful exercise to ensure that you:

Are up to date with government regulations and maintenance

Have the right rental strategy

Are not spending more than you need to on your mortgage and repairs.

So, let’s go!

Do the maths

Go through your records and calculate your return on investment and rental yield (there are online calculators to help you do this). See if you can identify any possible savings (consider everything from landlord insurance, mortgage deal, accountancy fees, etc.). Even if these gains are small, they all add up.

Repairs and maintenance

Often tenants are reluctant to raise minor concerns for fear they’ll look petty or get the blame, so don’t wait for them to call you. Be proactive and get on top of any leaks, mould or drainage problems. Ensure you’re up to date with mandatory gas and electrical safety checks.

Energy efficiency

We all know energy prices are soaring. Ensure your property is well insulated and draught-proof. Don’t wait until the winter to get this job done. And think longer term, as new energy property rules are on the horizon.

Décor review

Times change, but has your property? If your property looks tired and dated, you could be missing a trick. In some areas, the pandemic brought about a huge demographic shift that is being reflected in the rental market. Consider a cosmetic makeover or garden spruce-up so that you can target groups such as professionals, relocators or young families.

Property management

A property MOT isn’t just about money; it’s about time, too. If you self-manage, analyse the true cost of this task on your quality of life. If you’re finding the admin and legal requirements increasingly onerous, get a letting agent to take the burden off you. An agent’s expertise and market know-how may also save you money in the long run.

If you already have a letting agent, consider the quality of service you’re getting. Are your calls answered promptly? Is your agent meticulous when it comes to maintenance deadlines and routine checks? If you’re not happy, it’s time to shop around.

To learn more about the property management services we offer here at Gibbins Richards Lettings and Management Ltd, get in touch.

Details: Published: 11 July 2022; Hits: 672

In our post-pandemic world, working from home (WFH) has become the new norm for many people. But as a landlord, you need to make sure your tenants are working in a way that doesn’t impact you negatively.

Most of us think of WFH as sitting in front of a laptop or doing Zoom meetings wearing a shirt and tie with pyjama bottoms. However, there’s been a boom of small businesses cropping up, many of them based in flats and houses all over the country.

In this two-minute read, we look at some questions to consider if you’re a landlord with tenants WFH.

Could tenants WFH affect your tenancy agreement?

Broadly, the answer to this question is ‘no’. However, there’s a difference between working from home for a job and running a business from a rented property. The latter used to be frowned upon as it could be seen as a ‘business tenancy’ rather than a residential one. However, changes to the law back in 2015 gave permission for certain ‘home businesses’ that could ‘reasonably’ be run from home.

Currently, the most common tenancy type is an Assured Shorthold Tenancy (AST) which stipulates that a property should only be used as a residence. This stops tenants from using the property as a business address, so you need to let your renters know that this is the case.

Should you ask tenants if they plan to work from your property?

There’s no reason why not. It’s always best to know what’s going on in your rental accommodation. You could get your letting agent to ask prospective tenants their intentions so you can make an informed decision.

Should you always allow tenants to WFH⁉️

Most landlords would argue that their rent won’t be paid if their tenant doesn’t work, so the simple answer to this is ‘yes’. WFH for a couple of days a week shouldn’t pose a problem for most properties.

Difficulties arise when the form of work could cause damage to your property, or impact upon other residents. For example, if your tenant is a mechanic and plans to fix cars in the front garden, this could be a point of contention for neighbours. Similarly, if they’re running an internet sales business and using your property to store goods, you’ll want to make sure they don’t damage the interior.

Red flags to watch out for:

Is your tenant using the property more for commercial purposes than residential?

Are neighbours being affected by noise, traffic or anything else caused by the tenant’s business?

Are customers attending the premises?

If you come across any of the above, you should seek further advice or speak to your tenants.

To find out more about the do’s and don’ts of tenants WFH, speak to our team at Gibbins Richards Lettings and Management Ltd today.

Details: Published: 07 July 2022; Hits: 649

Inspections are a key part of managing a tenancy so it’s imperative that landlords get them right. Here are some top tips to ensure landlords don’t miss a thing. A two-minute read.

We’ve all heard the horror stories about nightmare tenants who trash a rental property, leaving the landlord up to their neck in repair bills and legal costs. Or maintenance issues that were left and became problematic.

Thankfully, there are ways landlords can minimise these risks and one key strategy is to conduct regular inspections.

Landlords are often diligent with inspections at the start of a tenancy, but things tend to slide over time. This is a big mistake as inspections allow landlords to:

- Spot mould, leaks, damp or blockages before they become major problems.

- Guard against subletting and illegal activities.

- Identify property damage – intentional, neglectful or accidental.

- Protect themselves in the event of a dispute. (Many insurers won’t pay a claim if the landlord hasn’t been vigilant.)

- Avoid end-of-tenancy disputes, as issues are dealt with during the tenancy instead.

- Set the tone of the landlord/tenant relationship. If they know you’re on the ball, tenants are more likely to treat your property with respect.

- Build trust. Tenants will be grateful to you for sorting out minor issues without prompting.

So, we all agree that inspections are critical, but how can landlords ensure they nail them? Here are seven top tips.

By law, a landlord can’t just turn up unannounced – you must give at least 24 hours’ notice. Be reasonable when arranging inspections; you’re trying to work with the tenant, not against them. There are legal procedures to follow for booking an inspection, entering the property for an emergency or if a tenant constantly avoids an inspection.
Have a systematic approach. Use a standardized form, and go from room to room, taking photos and notes. Use the check-in inventory as a guide.
Don’t just look inside; ensure the tenant is maintaining the garden according to the rules set out in the rental agreement. Also, check pipework (inside and out), drains and electrical sockets.
Test alarms and extraction fans.
Ask the tenant if there is anything they want to discuss.
Once you’ve completed your inspection, sign it and share it with the tenant (ask them to sign it, too).
File the inspection so that you have a paper trail in case of a future dispute.

If you don’t have the time or expertise to conduct regular inspections, contact us here at Gibbins Richards Lettings and Management for more information about our tried and tested inspection processes.