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RENTAL RECOVERY: WHAT CAN YOU DO WHEN YOUR TENANT PAYS THE RENT LATE OR LEAVES WITH ARREARS?

183:783684190 (John Trueman) — Wed, 26 Oct 2022 12:48:30 GMT

Arrears - a dreaded word among landlords and, for anyone with even a mildly British temperament, an often uncomfortable situation to discuss and resolve.

We’re fortunate enough to have very few tenants behind with their rent, but we also know the current economic climate could throw anyone’s finances off course.

As the cost of living crisis bites, household budgets are getting squeezed, and rent arrears are more of a threat. It may never affect you, but if your tenants do stop paying their rent, you need to act quickly to prevent the situation from spiralling out of control.

With that in mind, this week’s blog contains everything you need to protect yourself from the start, find solutions to financial hiccups, and recover what you’re owed.

START BY PROTECTING YOURSELF

The best way to prevent rent arrears from building up and causing you financial woe is to set your tenancies up correctly and securely. This includes:

● Proper referencing – we can’t stress how important this is, yet we still meet plenty of landlords who accepted a tenant without checking their status. Not to make light of it, but in the words of Julia Roberts in Pretty Woman: “Big mistake. Huge.”

● Face-to-face viewings – never rent to anyone you haven’t met in person or who hasn’t been inside your property.

● Rent guarantee insurance – this offers invaluable security right now for a relatively small monthly cost. Typical policies cover lost rent for 6 to 12 months, together with the legal fees involved in regaining possession. As long as you have satisfactory tenant references, cover is available for new and existing tenancies.

For a deeper dive into keeping your income and rental property protected, take a look at our previous blog on what kinds of insurance a landlord should have .

GETTING YOUR LATE RENT PAID

It’s good practice to check your bank statements religiously on the first working day after the rent is due. A missed payment doesn’t automatically mean your tenant has gone rogue: it could be nothing more than a personal oversight, bank error, or short-term financial glitch.

Nonetheless, it’s essential to act immediately and stop one month’s late rent from turning into two or more. Follow this simple three-step process to get your rent up to date asap:

1 Start with a gentle-but-firm reminder text or email asking your tenant to check with their bank if the payment has gone out, or if they know why the rent wasn’t paid.

2 Follow up with a phone call if you receive no response or rent within 24 hours, then with a formal letter if you’ve not heard back after several days. Usually, this works.

3 Make a plan – ideally, your tenant will get their rent up to date right away, but if they don’t have the funds right now, can you settle on a payment plan over a few months?

Whether it’s a one-off thing or your tenant is prone to paying a few days late, knowing that you’re on the case can be all they need to pay on time and avoid the embarrassment of being chased up.

DEALING WITH UNPAID ARREARS

Tenants can fall into arrears for any number of reasons. A relationship break-up, losing their job, becoming ill or simply having trouble with the increased cost of living can quickly put anyone into financial difficulty.

Although these conversations can be uncomfortable (a big reason why landlords use managing agents), the first step is to get total clarity on your tenant’s situation. A compassionate nudge around their finances could lead to a solution they may not see on their own.

● Ask your tenant if they’ve considered using a budget planner to identify any short-term cost savings (things like Netflix, gym memberships, coffees, and takeaways can all mount up, but they can also free up useful cash when suspended).

● Explore whether a member of your tenant’s family could step in with financial assistance (or even become a guarantor) if your tenant wants to stay.

● Encourage your tenant to speak to the Citizens Advice Bureau to see if they're entitled to financial support from the Government.

If your tenant says they can’t afford to live at your property anymore, remember that you can use their security deposit to make up some or all of the unpaid rent. For tenants who don’t respond to your attempts to get in touch, it’s time to move on to the next step.

GETTING YOUR PROPERTY BACK

Sometimes you have no choice but to take back possession of your rental property. Perhaps your tenants need you to evict them so they can get local authority housing, or they could simply be refusing to pay what they owe.

Depending on the circumstances, letting your tenants out of their contract might be the easiest route, so you can re-let your property and start earning income again. You’ll also create a path for your tenants to pay you back by moving somewhere cheaper or with family.

Otherwise, if your property is in England, Wales or Northern Ireland, you could serve the following:

● a Section 8 notice after the arrears hit two months for rent paid monthly (or eight weeks for rent paid weekly), bearing in mind that the process can be over a year with the current court backlog;

● a Section 21 ‘no fault’ notice if the tenancy is beyond its original term, then seek accelerated possession (which doesn’t need a court hearing) if your tenants refuse to leave after the two-month notice period.

In Scotland, there’s currently a limited ban on evictions , but you can still apply for an eviction order to enforce after the ban subsides. However, the ban doesn’t apply if:

● your tenant is six months or more in arrears

● you intend to move into or sell your rental property to alleviate financial hardship

● your tenant is no longer living there.

Remember: if you do need to start legal proceedings, it’s vital to serve notice in the correct way to avoid being dismissed by the court and having to start again.

RECOVERING UNPAID RENT FROM TENANTS WHO’VE LEFT

Regaining possession of your rental property is one thing, but recouping any unpaid rent is a different process. Ideally, your tenants will start paying you back after they leave, but if that’s not the case and you wish to claim through the County Court, here are some things to note:

● You need your tenant’s new address to include on the claim form . If you don’t have it, you can apply to the court to serve papers at their work.

● At this point, the threat of a County Court Judgement (CCJ) can push tenants to pay you back and avoid a poor credit rating that will damage their chances of renting or buying a home for years.

● If you go to court and win, it doesn’t necessarily mean your tenant will have the money to pay you what they owe.

● You could then apply for an Attachment of Earnings Order to take the money out of their income, but the courts tend to set very low monthly payments.

Given this lengthy legal obstacle course, it’ll probably come as no surprise that many landlords choose to simply move on without chasing unpaid rent. It’s far from ideal, but at least they have their property back and producing income.

WHAT'S YOUR NEXT STEP?

If you’d like some advice on getting your tenants back on track with their rent, or if you’re looking for a managing agent in Birmingham to take care of this sort of thing (and more!) for you, why not get in touch?

Call us on 0121 427 4777 or email us at info@truemanestates.co.uk for some landlord love.

Winter-Wise Lettings: The Time Is Now to Get Your Rental Property Ready and Legal For Winter

183:783684190 (John Trueman) — Wed, 12 Oct 2022 11:08:44 GMT

Winter is the time when most problems arise in rental properties.

Emergency callouts abound, and insurance claims rocket, mostly from water or weather damage. While your policy might cover the costs, the inconvenience of midnight phone calls, stressed-out tenants and urgent repairs is something every landlord wants to avoid.

Autumn is the perfect time to plan for the colder months, get ahead of the elements and give your property a seasonal MOT and fix any minor repairs before they become a major headache.

Covering everything from your legal obligations, the checks to make at your property, and the conversations to have with your tenants, this week’s blog is a complete landlord’s guide to getting your rental property prepared and protected for winter.

VISIT YOUR RENTAL PROPERTY

The first step in making sure your rental property is ready for the rigours of winter is to go and see it. To get the most out of your visit, here are some guidelines for arranging, carrying out and following up on your inspection.

● Make an appointment with your tenants (they don’t necessarily need to be present).

● Ensure all safety certificates and service contracts are up to date.

● Check the inside and outside of your property thoroughly (more on that later).

● Identify any winter comfort measures and safety precautions your tenants need to be aware of.

● Confirm any advice in writing.

Performing a pre-winter check-up now can save you a whole lot of drama later on. More than that, it’ll give you and your tenants peace of mind, knowing that your rental property will stay warm and dry, whatever the weather may bring.

PROTECT AGAINST THE ELEMENTS

Unsurprisingly given the British climate, most home insurance claims over winter are down to water finding its way in, either from weather damage at the time or simply that the property is another year older.

Prevention is always cheaper and far less hassle than cure, so check the following vulnerable spots:

● gutters, down pipes, and drains for blockages from rubbish or fallen leaves (water needs to run freely to avoid overflowing and seeping into walls)

● roof coverings (including slipped tiles and slates, loose flashings and seals on asphalt)

● cracks or holes in render, bricks or mortar (from climbing plants or general ageing)

● window frames and woodwork (are the seals water and airtight, and is any wood or paintwork in need of repair?)

● boundary walls and fences for any rotting or loose posts and panels that might collapse in high winds

● chimneys (open fireplaces are about to get some serious use, so make sure the chimney is cleared and cleaned, and the cap is in place to stop rain coming down the stack)

Having all this sorted now will boost the resilience of your rental property from the elements and minimise the potential for water damage and costly repairs.

CHECK THE HOT WATER AND HEATING

Getting a call from your tenants at an unearthly hour that there’s no hot water or the heating doesn’t work, or turning up for your spring inspection to find condensation dripping from mouldy ceilings, is hardly a landlord’s dream!

The good news is that you can minimise the risk with a few pre-emptive checks.

● Ensure the boiler is serviced and has enough pressure (1 to 1.5 bar is normal, but refer to the manufacturer's handbook).

● Turn on the heating and feel the radiators to see if they're warm all over, or whether they need bleeding (get a key from somewhere like B&Q and show your tenants how to use it).

● Look at pipes under sinks, boilers and hot water tanks for signs of leaks or rust, and include the dishwasher and washing machine connections while you're there.

● Inspect bathroom extractor fans and ventilation sources, then speak to your tenants about preventing condensation (you can’t make them use the heating, but you can help them ventilate correctly, so they don’t end up with a repair bill).

Fortunately, the days of frozen pipes are mostly behind us with modern insulation and installation methods. But, if your rental property has any exposed pipework that could be at risk of freezing (is any mounted on an outside wall?), wrap them in foam tubes or heat tape.

LOOK AT SAFETY & SECURITY

Whether your rental property is empty or occupied, it's most at risk from intruders during the winter months. Longer nights give burglars more opportunities to strike, both at vacant homes and from tenants being at work while it's dark.

Even if your rental property is unfurnished, intruders still damage door locks, windows and permanent fittings when breaking in, or steal things like copper pipes. So it’s well worth carrying out some checks to ensure your property is safe and secure.

● Double-check that all window locks work and make sure your tenants know how to use them.

● Test the locks on sheds and garages - these are particularly vulnerable, so remind your tenants to be mindful of what they store there.

● Try the alarm, including the keypad and any movement sensors.

● Cut back any hedges that provide a hiding place.

If you want to install some extra deterrents, consider motion-sensor lighting at the front, back and any side entrances, or a path of stone chippings that crunch underfoot to prevent a silent approach.

FOLLOW THE LETTER OF THE LAW

Landlords have a lot of legal obligations, and failing to meet them can have huge ramifications for your tenancy, from handling disputes to getting your property back.

You are responsible for providing a home that is safe, secure and habitable, so now is the perfect time to ensure your rental property makes the grade before winter kicks in. Among your main look-out points are:

● gas and electrical safety with up-to-date certificates from qualified engineers

● having smoke alarms on every floor of living accommodation and testing at the start of each tenancy

● hot and cold water supply and adequate sanitation

● the structural integrity of the building

● ensuring sufficient natural light and ventilation

● maintaining and repairing the property, including appliances and fittings.

As a managing agent, we need to stay on top of the ever-changing legislation to protect our landlord clients from falling foul of the law. If you’d like us to do the same for you, drop us a line at info@truemanestates.co.uk or call us on 0121 427 4777 to see how we can help.

HOW WELL PREPARED IS YOUR RENTAL PROPERTY FOR WINTER?

Autumn really is the best time of year to get your rental property ready for a smooth and event-free journey through the colder months.

If you’re a landlord in Birmingham we'd love to show you how we take care of everything for you. Call us on 0121 427 4777 or email us at info@truemanestates.co.uk to tell us all about your property.

Rental Red Flags: How To Avoid Problem Tenancies And Create The Perfect Letting

183:783684190 (John Trueman) — Wed, 12 Oct 2022 10:59:44 GMT

Nothing is more important than getting the right tenants for your rental property – because the choice you make will have a profound impact on your peace of mind and finances.

Whenever we’re contacted by a landlord who’s been having problems at their property, there’s very often something that was missed or skipped before the tenancy started.

A typical story is that things started well, everyone got along, and the landlord was pleased with their choice of new tenants. Then, at some point, something went wrong, and the landlord was left frustrated, disillusioned and out of pocket.

So how can you tell if you’ll get respectful, responsible and reliable tenants before you hand over the keys? More than anything, it’s all about the setup, and this week we’ll take you through our tried and tested process, to avoid problem tenancies and create stable and long-term lettings.

RUN A COMPATIBILITY CHECK FIRST

The first step in creating the perfect letting is to minimise wasted viewings by checking that your property and whoever is enquiring about it are the right fit for each other.

Some of the factfinding we undertake before booking a viewing includes asking potential tenants about:

● what they need in terms of space, rooms, garden, location, parking, and transport;

● their household setup (couples, singles, families, sharers) to be sure your property fits the bill;

● whether they have any children or pets (look at our previous blog for top tips on this);

● why they are moving, how long they plan to rent for, and whether they have a longer-term plan;

● where they work and who they work for (some employers have notoriously high staff turnover, while others have an excellent reputation for stability).

You might feel uncomfortable asking so many questions, or pushing further if an answer is vague, but we speak from experience when we say it removes so many unnecessary appointments. In fact, the best tenants love having their time and property search taken so seriously.

INSIST ON FACE-TO-FACE VIEWINGS

Never rent your property to someone you haven't met.

Regardless of anyone’s urgent timescale, and even if they’re moving from abroad, a face-to-face viewing is a priceless insight into someone's character and whether they actually like your property. Video viewings can be a useful first step for someone who can’t get there in person just yet, but don’t take your property off the market until you’ve personally shown them around.

Here are some things to look out for on viewings:

● Do potential tenants offer to take their shoes off and ask before opening cupboards, particularly if your property is currently occupied?

● If you have family viewers, do they let their children run riot or manage them well?

● If someone gets delayed, do they let you know in advance, after they’re late, or only when you call them?

Finally, listen to your sixth sense. After carrying out thousands of viewings, we know how to spot the really good tenants. If we have any doubts, we keep looking until we find the perfect match.

DON’T SKIMP ON THE REFERENCING

Once you've found a tenant you're happy with, don't ignore the referencing process. No matter how great you feel about someone, it's not the same as actually knowing that they can afford to rent your property and are financially stable.

Here's our checklist of the references we take up and what we look for to identify the very best tenants.

● Landlord references are even more valuable if you can follow them up on the phone – an okay reference, rather than a glowing one, may hide a deeper story.

● Employer's references (or accounts for self-employed people) are essential to check income and work status.

● Bank statements not only confirm salaries; they also reveal spending habits and financial management. This helps you gauge whether renting your property will be comfortable for a tenant, or push them to their limit.

● Credit checks can deliver the odd surprise. Some tenants are genuinely unaware they have a CCJ (County Court Judgement), usually because they forgot to inform everyone when they moved. CCJs are often for small amounts related to phone bills or online shopping accounts, but they can give you an idea of someone's financial awareness.

Just as you'd do your research when choosing a letting agent, thorough referencing for every tenant is time and money well spent.

PREPARE A DETAILED INVENTORY

A detailed inventory signed by the landlord and tenant is not only your protection in the event of a dispute, it also shows respect for your tenants by giving them an accurate record of your property’s condition when they move in.

You can read all about creating watertight inventories in our previous blog, but as an absolute minimum, you should:

● prepare the inventory for signing at check-in, or put a condition in the tenancy agreement that your tenants have 7 days to question anything before the inventory is deemed as accepted;

● include EVERYTHING at your property, from the condition of kitchen and bathroom fittings to the state of the décor and right down to power sockets, light switches and doorknobs;

● take supporting photographs or videos for absolute clarity;

● use a third party like a letting agent or inventory clerk as impartial inventories carry more weight in the event of a dispute.

Remember: it's a landlord's responsibility to prove any fault on the part of the tenants. Without clear before-and-after evidence you're likely to lose any dispute, so an inventory is a must-have for every tenancy.

INSPECT YOUR PROPERTY REGULARLY

Writing into your tenancy agreement that you’ll be carrying out mid-tenancy inspections shows that you’re serious about your property being looked after, and allows you or your agent to see that all is going well.

Things to consider around mid-tenancy inspections include:

● an inspection in the first month with your tenants present to discuss any teething issues and uncertainties around how things work;

● carrying out future inspections at least once every six months (if your tenants are out, an inspection generally only takes between 15 and 30 minutes);

● checking for water stains, mildew, limescale and broken hinges and handles, along with testing smoke alarms and looking inside any

appliances you supply.

If you’d like to know more about how we carry out effective mid-tenancy inspections, take a look at our Rental Check-Ups blog for tons of expert tips.

WHAT’S NEXT FOR YOU?

Finding the very best tenants who are the perfect fit for your rental property is the special sauce in avoiding problem tenancies and creating stable lettings. It's also our speciality!

If you're a landlord in Birmingham, we'd love to show you how we keep tenancies running smoothly at the rental properties we manage. Call us on 0121 427 4777 or email us at info@truemanestates.co.uk to see how we help our clients enjoy a profitable lettings business.

Thrifty Landlord Tips: How to Slash Your Upfront Costs When You Buy a Rental Property

183:783684190 (John Trueman) — Tue, 30 Aug 2022 10:51:46 GMT

Despite changes to tax policy, buy-to-let remains a hugely popular life goal for many people as one of the safest long-term investment strategies. Property feels real with tangible, visible and stable assets that shares, crypto and foreign exchange simply can't match.

Nonetheless, the upfront costs of buying an investment property are some of the biggest barriers for landlords. Buy-to-let finance requires higher deposits than standard mortgages, and the second-home Stamp Duty supplement adds another large sum.

So the big question is: can you reduce your upfront buying costs for starting or expanding your lettings portfolio? Fortunately, the answer is yes, and in this week's blog, we'll show you how.

DON’T GET MARRIED (YET)

Did you know that if you're married or in a registered civil partnership, you're penalised over couples who haven't yet tied the knot?

So if your plans include marriage as well as becoming a landlord, you could be thousands of pounds better off by buying a rental home before your wedding day.

● Married couples and registered civil partnerships count as one person for Stamp Duty purposes.

● Even if only one of you owns a home, when your spouse buys a property - even as a first-time buyer - you'll be liable for the second-home supplement of 3% of the entire purchase price.

● By holding off getting hitched until after you complete your purchase, you can spend the Stamp Duty savings on your wedding or honeymoon!

If one of you doesn't earn enough to get a mortgage on their own, look into Joint Borrower Sole Proprietor mortgages. These allow you to pool your joint incomes for greater buying power, with only one of you listed as the registered owner, thereby avoiding the extra Stamp Duty for second homes.

FIND A FIXER-UPPER

Despite all the makeover shows on TV, most buyers don't want to live in a building site, particularly families and busy professionals. This often makes the market for unmodernised property sightly less frantic than for homes that are ready to move into.

Fixer-uppers cost less, which means lower Stamp Duty when you buy. They also give you the chance for potential extra equity if the combined purchase price and refurbishment costs are less than the value of the property after you've renovated.

● Inefficient homes will lose value as bills go through the roof, so pick up a bargain and make energy improvements to increase your equity and achieve a higher rent.

● Make sure you have the cash for refurbishment costs - don't take on a project unless you've got ALL the money to finish the job!

● You can save on labour costs (often more than the materials) by completing simple jobs yourself like decorating, upgrading door handles and fitting blinds or curtains poles.

● If you're a bit handy and have the time and inclination, you can find tutorials on YouTube for larger jobs like laying floors, plastering, tiling and basic plumbing for even more cost-cutting.

Caution: employ an expert for works like wiring, installing a boiler, knocking down walls or anything that needs a safety certificate or building regulations. The DIY saving could cost you dearly if things go wrong later on.

FORGET WHAT’S IN VOGUE

While most buyers are chasing Victorian, Edwardian, 1930s or brand-new homes in the poshest streets, the smart and thrifty landlord can look at other options.

● Choose accommodation over architecture and find homes from periods like the 1950s, 1980s and 1990s with a smaller fanbase.

● Remember that 'location location location' isn’t necessarily everything in lettings. Cheaper streets and neighbourhoods with lower purchase prices and Stamp Duty can very often produce higher yields.

● Use the tips from our Pretty Vacant blog on styling unfurnished homes to add designer elements to a plain interior.

Tenants are usually far more flexible than buyers on exterior style and precise location, so why not use that to your advantage?

TURN YOUR HOME INTO A BUY-TO-LET

If you're already a homeowner, the cheapest way to own your first rental property is to turn your home into a buy-to-let.

And if you're freelancing or permanently working from home, you could use your freedom to experience new lifestyles and locations as a digital nomad. Fancy swapping the big city for country life, saying farewell to mountains and hello to the sea, or even a stint abroad? It's all possible with a laptop and wi-fi.

● Ask local letting agents (like us!) for an idea of the potential rental value.

● Approach your lender to see if you can simply switch to a buy-to-let mortgage with them.

● Speak to an independent financial adviser to see if better deals exist.

● Decide if you want to include your furniture, store it, or sell it.

Remember that buy-to-let mortgages

come with lower loan-to-value ratios that generally top out at 80%. They're also mostly based on the monthly rental income being at least 125% of the mortgage payments.

BUY AN EXISTING LIMITED COMPANY

One of the main obstacles for landlords in starting or expanding their portfolio is the level of purchase tax. As well as the standard Stamp Duty rate, landlords pay a second-home supplement that adds an extra 3% to the purchase price - a significant upfront sum.

However, things change dramatically when you buy a limited company that owns investment property among its assets. Stamp Duty on shares is just 0.5%, with no second-home tax

Further ongoing benefits of owning your rental homes as a limited include:

● paying corporation tax on profits, currently just 19%, even if you're a higher rate taxpayer

● being able to claim the entire monthly mortgage payment as an allowable tax expense.

● no capital gains tax liability when you sell if you keep the profits in the company for improving or expanding your portfolio.

While finance for limited companies isn't as widely available as regular buy-to-let mortgages, more and more high street names offer products alongside specialist lenders. Speak to a financial adviser to get the full picture of what's available to you.

WHAT’S YOUR NEXT STEP?

There's nothing we love more than working with local landlords who want to create and grow a profitable and popular buy-to-let business.

Give us a call on 0121 427 4777 or drop us a line at info@truemanestates.co.uk to talk about the lettings market in Birmingham and how we can help you achieve even more success.

Parents And Paws: Our Landlord Guide for Renting to Tenants with Children or Pets

Tue, 30 Aug 2022 09:17:22 GMT

"Never work with children or animals" has been a showbiz saying since the 1930s, but many landlords also live by the same advice.

Landlords are three times more likely than agents to refuse tenants with children or pets, but they're less likely than agents to deduct the cost of repairs from the security deposit. Do they want to dodge conflict, or could their tenancy agreements be insufficient to claim?

Interestingly, multiple surveys of landlords have revealed how properly vetted families and pet owners are equally as good as - if not better than - any other tenants, and they come with the added incentive to stay longer to avoid disrupting their children or furry friends.

With that in mind, and in light of the Government's proposals to remove blanket bans on families and pets, this week’s blog has all you need to minimise the risk and maximise the benefits of this growing and stable market.

UNDERSTANDING THE MARKET FOR TENANTS WITH CHILDREN AND PETS

Various studies contain valuable facts and figures about family tenants and pet owners. We've pulled together some of the most useful points here:

● 50% of the UK’s population owns a pet, yet only 7% of landlords advertise their homes as pet friendly

● In 2017-18, 35% of households in the private rented sector included dependent children

● 50% of new babies in 2019 were born into rented accommodation

● In a survey of 537 landlords, adults beat pets by a whisker for causing damage (85% to 84%), with children dawdling behind in third place on 54%

● A third of millennials are predicted to remain as tenants for their whole lives

● Parents with children tend to be older, have better-paid, steadier jobs, and want a long-term home for their family

● Research by the National Landlords Association suggests homes rented to families are less time-consuming to manage.

As well as busting a few myths around tenants with children or pets, it's crystal clear that this part of the rental market is here to stay and only getting bigger.

PLANNING FOR FAMILY TENANTS

While the makeup of every household is different, modern family life has some fairly universal requirements. By meeting them, your buy-to-let will take them all in its stride:

● Easy parking for one, and ideally two, cars (either on or off-street)

● Full-size dishwasher and fridge/freezer; large capacity washing machine; powerful oven, hob and extractor

● Lawned gardens with sturdy fencing

● Washable paint and durable fittings - handles, locks, doorknobs, taps, toilet seats, switches and sockets

● Hardwood floors to living areas and bedrooms, and tiles for bathrooms and kitchens to withstand little accidents

● For stairs, choose a thick carpet and underlay to deaden the sound of children running up and down

● Storage space, and lots of it!

As a final point, allowing families to decorate their children's rooms gives them a real sense of having a long-term home. So it's worth being open to suggestion, and to include any permissions and terms in the tenancy agreement.

CHILD SAFETY MEASURES

If your buy-to-let is designed for families, check that stair banisters are no more than 10cm apart, and that upstairs windows have restrictors to prevent young children from falling out.

Your tenants may also wish to install additional child safety measures of their own, so arm yourself with a few options that combine peace of mind for parents with a reduced risk of damage to your property.

● Protective wall pads for use with baby gates to rooms or at the top and bottom of the stairs

● Drill-free child-proof catches on low kitchen cupboards

● Cleats to wrap any cords for blinds or curtains to prevent children or pets from getting tangled up in them.

By offering some simple and clever tips, you'll show your tenants that you not only care about their safety but also want to safeguard their security deposit - a great start to the relationship!

PETS WITHOUT PEEVES

Many landlords are pet owners, so why would they refuse tenants with pets?

It's a classic case of a few rotten apples spoiling the whole barrel, either through extreme scare stories in the press or a landlord's unfortunate personal experience. While the security deposit will usually cover the cost of repairs, it doesn't remove the work and disruption involved, which is the real concern for landlords (particularly self-managing ones).

So, what's the answer?

For greater peace of mind, and before accepting a tenant, try this checklist to see whether a pet is a good fit for your buy-to-let:

● Get a CV for any requested pets, including age, breed, behaviour, training, vaccinations, flea treatments and length of ownership

● Include a pet question when you write to their previous landlord for a reference

● Meet the pet in person or by video to see its behaviour

● Ask how much companionship the pet will have: particularly important for dogs who become distressed when left alone for long periods.

Remember that most pets are not wild animals. They go a long way to making homes happy and are treasured family members for many people - sometimes more so than their relatives!

CHILD AND PET-PROOF PAPERWORK

Regardless of whether tenants are all adults or include children and pets, end-of-tenancy disputes usually arise from a lack of clarity at the beginning. By taking the time to get all the paperwork right from the start, you'll save yourself hassle later on.

● Make it clear in the tenancy agreement that your buy-to-let will be returned in its original state with any damage from pets and children repaired and decoration restored (unless your next tenants want to keep it)

● Include a clause that all pet smells will be eradicated with professional treatment or cleaning

● Have your tenants sign a comprehensive inventory of your property, including photos of all the fittings, walls, doors and floor coverings.

In the future, depending on whether the Government's existing proposals around tenants with pets become law, you could also be able to require your tenants to take out a pet insurance policy.

WHAT'S YOUR NEXT STEP?

If you're unsure whether your buy-to-let in Birmingham is suitable for tenants with children or pets, or you'd like to talk about any aspect of being a landlord, why not get in touch?

Call us on 0121 427 4777 or email us at info@truemanestates.co.uk for a friendly chat and expert advice.

Buy-To-Let Beginner? Get It Right First Time with Our Expert Tips for New Landlords

183:783684190 (John Trueman) — Mon, 08 Aug 2022 13:51:22 GMT

Have you wondered about becoming a landlord but aren't sure whether it's still worth it or even your kind of thing? Well, you're in the right place!

For anyone with a genuine passion for property, being a landlord is a very natural fit to supplement your income, build financial freedom and nurture your inner designer and entrepreneur.

Providing comfortable and stylish homes that people enjoy living in is a genuine source of satisfaction and accomplishment for many of our landlord clients - they take real pride in what they do and find the experience truly rewarding, personally and professionally.

It's also true that the buy-to-let landscape has shifted significantly in recent years. Changes in taxation, stamp duty, tenancy legislation and energy efficiency standards have put more responsibility on landlords, but buying to let remains a sound long-term investment strategy.

With that in mind, this week's blog covers all you need to know about starting and growing your own lettings portfolio.

BRUSH UP ON BUY-TO-LET FINANCE AND TAX

Budgeting correctly is essential for any successful business, so here’s a quick rundown of lending criteria, stamp duty costs and tax allowances for landlords.

● Buy-to-let mortgages are primarily calculated on the sales value of a property along with the projected rental income, rather than on your personal income (although you'll generally need to earn around £25,000 per year to qualify).

● You can usually borrow a maximum of 75% of a property's value, subject to the monthly rental income being at least 125% of the monthly mortgage payments.

● As a rule, buy-to-let mortgages are interest-only, which means you only pay off the interest (and not the capital) but have lower monthly payments.

● Lenders tend to charge higher arrangement fees for buy-to-let mortgages than standard residential loans.

● As well as the usual Stamp Duty liability, investment property is subject to the second homes Stamp Duty supplement on the total purchase price (3% in England, 4% in Scotland and Wales).

● New tax rules mean you pay tax on the entire rental income with a tax credit available of 20% of your annual mortgage interest payments (this change affects higher rate taxpayers the most, and also puts some lower rate taxpayers into the higher bracket).

● You can also claim back the cost of letting agent and management fees, insurance, repairs, maintenance, accountants fees, utility bills, council tax and certain legal fees.

Knowing the basics of buy-to-let mortgages, buying costs, and tax will help you assess the viability of any investment property accurately and swiftly.

LEARN ABOUT LANDLORD LEGISLATION

The rules and regulations covering lettings are famously ever-changing, with around 150 pieces of legislation to get to grips with. There are also some best practices you should follow to minimise the potential for disputes.

Here's a small taster of things to remember:

● ID checks to confirm your tenants are legally allowed to rent your property, along with professional referencing

● Take out buildings, public liability and landlords contents insurance as a minimum

● A proper tenancy agreement signed by everyone who'll be living at the property

● A detailed inventory, including photographs, to be signed by your tenants

● Protecting security deposits in a government-approved scheme and registered on time

● Regular mid-tenancy inspections to monitor the way your property is cared for and to spot any problems

● Keeping certificates for gas, electricity and energy efficiency up to date.

● Checking the government's website for policy changes to stay on the right side of the law.

This might seem like a lot - ok, it is a lot! - but with an experienced managing agent by your side, you can leave all that to them while you concentrate on the fun stuff, like growing your portfolio.

THINK ABOUT YOUR BUY-TO-LET STRATEGY

There are various ways to be a landlord, but the number one rule to keep your buy-to-lets occupied and in demand for years is to tailor them to your market.

Start by asking local letting agents which homes they need more of, then consider the following:

● Singles, couples, students, professional sharers and families with children have different requirements and expectations around location, accommodation and specification.

● Landlords with older homes and low EPC (Energy Performance Certificate) ratings could sell up to avoid the costs of improvements, creating opportunities for new business models.

● Renovating means you'll need extra cash upfront, but you could increase your yield and equity fast, like James Baker and Dan Anson-Hart, who The Telegraph recently featured.

● Buying new might mean paying a higher purchase price, but you'll get better insulation, modern fittings, lower running costs and less maintenance in return.

● HMOs (houses in multiple occupation), serviced accommodation and holiday lets can be significantly more profitable, but they're also more work, and lenders usually require landlords to have previous experience.

If you'd like to know what tenants want from a rental home in Birmingham, drop us a line at info@truemanestates.co.uk or call us on 0121 427 4777.

CONSIDER SETTING UP A COMPANY FIRST

When you set up a limited company before purchasing any property, every buy-to-let you add to your portfolio can benefit from the different - and often more favourable - tax policy.

● All mortgage interest can be claimed back against tax as an allowable expense.

● No Capital Gains Tax is payable on profits left in the company – making it cheaper to sell one of your buy-to-lets and reinvest the money to expand or upgrade your portfolio.

● You don't pay any stamp duty when you purchase a limited company that owns buy-to-let property.

● Mortgage lending to limited companies isn’t so widely available, but more lenders are entering the market.

● Each director of a limited company can take tax-free dividends up to £2000 per year, with anything over that amount subject to income tax.

● You can make family members directors to pass on assets more easily and minimise their inheritance tax liability.

While there are clear benefits to owning your buy-to-lets through a company, it isn't necessarily the best route for everyone, so speak to a tax adviser first to make sure you pick the right strategy for you.

BECOME A LOCAL LEGEND

As a landlord, you're free to invest in property anywhere, but there are many advantages to growing a portfolio close to where you live, including:

● swooping on properties the minute they hit the market

● creating lasting relationships with local estate agents and being first in line when new properties become available

● having your ear to the ground about upcoming properties from your neighbours or local businesses

● building an expert knowledge of the local rental market and knowing which streets rent best to which type of tenant

● feeling connected to your portfolio and being able to visit tenants, meet contractors or inspect your property more easily

Perhaps the biggest day-to-day advantage of keeping your portfolio close together is that, even if you buy every property through a different estate agent, you can keep all your rental homes with the same local managing agent.

ARE YOU THINKING OF BECOMING A LANDLORD IN BIRMINGHAM?

For some expert advice on the rental market in Birmingham and the best type of property to invest in, give us a call on 0121 427 4777 or drop us a line at info@truemanestates.co.uk - We'd love to help you find your first buy-to-let and to be part of your landlord journey.

Damage Control: Our Expert Tips to Minimise The Wear & Tear At Your Buy-To-Let

183:783684190 (John Trueman) — Thu, 21 Jul 2022 09:35:10 GMT

The end of a tenancy is often filled with uncertainty. Landlords worry over the state of their property when it's returned, while tenants fret about how much of their security deposit will be refunded.

Fortunately, there are many ways for landlords to design out the potential for damage, reduce the impact of wear and tear and alleviate the nail-biting as the check-out date approaches.

Three of the most fundamental factors include:

· the way the contract and relationship with your tenants are set up from the start

· the liveability and durability of your buy-to-let when your tenants move in

· how your tenants and property are managed during the tenancy.

A shared goal of every landlord and tenant should be a home that's easy to live in, easy to love and easy to hand back in good condition. With that in mind, this week's blog has everything you need to help your buy-to-let stay in great shape during a tenancy, and to minimise gaps in your income between lets.

THE DIFFERENCE BETWEEN DAMAGE AND WEAR & TEAR

One of the challenges of lettings is that people have differing opinions over what counts as damage and what's classed as wear and tear. Despite the occasional grey area, they can be broadly defined as follows:

● Wear and tear are the natural consequence of everyday life that leads to things like frayed carpets; minor scuffs, chips and scratches on walls, woodwork or floors; fading by sunlight; plaster cracks; flaking paint on exterior woodwork; loose handles and locks.

● Damage results from accidents or negligence by tenants, their pets or visitors, from spilt wine glasses, toppled irons on carpets, and hot pans on worktops to ripped curtains, holes in walls and broken window panes.

From a money perspective, gradual wear and tear is part of the routine maintenance expenses that any landlord should expect. But if a tenant causes damage, even accidentally, the cost is down to them.

SET YOUR TENANCY UP FOR SUCCESS

Every landlord wants their buy-to-let to be well cared for by their tenants. Never underestimate the influence you can have, and so much comes down to starting things off on the right foot, beginning with the initial viewing.

Some of the measures we take include:

● talking to people about their lives and current home when we're with them on viewings to ensure they're a good match

● looking for a responsible character, part of which is the gut feeling from doing this for years

● proper vetting, including a credit check and references from landlords, employers and, if applicable, guarantors (you could also hold a video call with candidates from their homes for a visual insight into how they live)

● creating a detailed inventory with photographs and getting it signed by the tenant

● preparing a proper tenancy agreement that's signed by everyone who'll be living at the property

● protecting the security deposit in a government-approved scheme and in the required timeframe, then letting the tenants know it's done

● giving tenants a number and name to call for any questions or reporting issues, plus an out-of-hours contact for emergencies.

Successful tenancies come from a combination of protecting your property and selecting the perfect people to live in it. But it's about giving them everything they need to independent and happy from day one, as well as clarifying their responsibilities and your expectations.

DESIGN OUT DAMAGE AND PROBLEMS

Making your rental property more durable will help it shrug off the rigours of daily life, meaning less work for you in replacing worn-out fixtures and fittings. How does your buy-to-let stand up against our checklist?

● Use good quality, washable paint (warm or off-white) for walls and woodwork that can be wiped clean during and between tenancies.

● Fix loose handles, hinges, hooks and locks; repair leaky taps and shower fittings; rectify ill-fitting doors and windows.

● Avoid budget carpets as they wear out fast and make homes look unloved. Replace them with engineered or hardwood flooring.

● Ensure wet areas like kitchens, bathrooms and shower rooms have tiles across the floor and up the walls to stop water leaking through your home or into neighbouring ones.

● Although timber worktops are lovely, they need looking after. Alternatives like high-quality laminate or composite stone are more resistant to damage and stains.

● Invest in mid-range appliances from brands like AEG, Bosch, Neff and Siemens. As well as being more energy efficient, user-friendly and longer lasting, they give your buy-to-let a dash of prestige.

Remember that buying cheap generally means buying at least twice, and anything where there's a knack for using it, is a problem waiting to happen!

REMOVE THE NEED FOR DRILLING HOLES

Almost every tenant has things like art, photos and everyday essentials to hang that make their life easier, add their personality to a home, and help them feel truly settled.

This usually means drilling holes, sometimes more successfully than others. Those holes will need filling when the tenancy ends, meaning new ones being drilled when the next tenant moves in.

All of this can take its toll on your walls and tiles, but you can minimise the need for it by fitting hooks, racks and rails for:

● jackets, coats and bags by the front door

● pictures and mirrors in bedrooms and living rooms

● tea towels, aprons and oven gloves in the kitchen

● towels, robes and shower products in bathrooms

For a small cost, you can add an extra touch of style and liveability to your buy-to-let while reducing the potential for damages and making repairs.

MANAGE YOUR PROPERTY WELL

Forgive us for saying it, but the most effective way to manage your rental property is to have a managing agent handling everything for you. We can call on a bank of trusted contractors at any moment, we've dealt with almost every problem you can imagine, and we know the law inside out.

However, if you're unsure of the work that goes into managing a buy-to-let, or you're thinking of handling everything yourself, here's our tried and tested formula of service standards, wise precautions and staying legal.

● Carry out inspections at least every six months during the tenancy to review its upkeep, spot potential problems and check on your tenant's enjoyment. Take notes to avoid forgetting anything, and remember to look up at ceilings and then under baths, wash basins, toilets and kitchen sinks for any signs of leaks.

● Check the lettings industry press and government updates to keep abreast of the ever-changing buy-to-let legislation and be ready when changes take effect.

● Keep certificates for gas, electricity and energy performance up to date, making sure to book the inspections early to avoid any gaps in cover (and breaking the law!)

● Confirm that the rent has been paid on time each month, and give tenants a nudge where necessary.

● Respond quickly to any reported problems and keep tenants in the loop over contractor appointments, expected repair times and delays in getting parts.

When you're actively engaged in your buy-to-let, it shows your tenants that you're taking an interest in them and your property. It's a really powerful message to send, and, in our experience, the behaviour is generally reciprocated.

WHAT'S YOUR NEXT STEP?

Are you a landlord in Birmingham? We'd love to show you how we can help you set your rental property up for maximum success and minimum hassle.

If you're thinking about switching managing agents or stepping away from doing everything yourself, call us on 0121 427 4777 or email us at info@truemanestates.co.uk – we could be working together soon!

Renters Reform Bill: Bad News for Landlords, Or Long Overdue Fairness for Everyone?

183:783684190 (John Trueman) — Wed, 13 Jul 2022 15:19:18 GMT

There’s been a flurry of news and commentary since the Government announced its Renters Reform Bill. Representing the biggest changes to the private rental sector in 30 years, the Bill is set for introduction to Parliament before March 2023, with a view to becoming law by early 2024.

Despite dramatic headlines, the Bill isn’t only about the rights of tenants. In fact, Nick Beadle, Chief Executive of the National Residential Landlords Association, has said the “commitments to strengthening possession grounds, speedier court processes and mediation are helpful”.

Nonetheless, Michael Gove’s rhetoric on June 16 ^th promised to protect tenants from “landlords who fail to repair homes and let families live in damp, unsafe and cold properties, with the threat of unfair ‘no fault’ eviction orders hanging over them.”

Eliminating substandard homes from the rental market is obviously a welcome step forward, but what if you’re already a professional and responsible landlord? Our blog this week explores the proposals and what they actually mean for anyone owning a buy-to-let property.

THE MAIN CHANGES FOR LANDLORDS & TENANTS

One universally welcome intention of the Renters Reform Bill is swifter consequences for landlords and tenants who fail to keep up with their responsibilities. The proposed measures include:

● creating a new Private Renters’ Ombudsman to enable fast settlement of disputes through low-cost mediation

● speeding up the court process for evicting deliberately non-paying or disruptive tenants

● giving councils more powers to tackle unscrupulous landlords, with increased fines for serious offences

● requiring landlords to provide a good reason to refuse a tenancy to families with children (e.g. homes that are clearly too small or have no space for children to play)

● outlawing blanket bans on tenants who rely on benefits (although private market rents are generally far higher than local housing allowances)

There’s some good news in here for everyone, and buy-to-let remains a sound investment for any responsible landlord with a long-term strategy. You can discover more about building a legacy with your own sustainable and profitable portfolio in our recent article, Doing It For The Kids .

HIGHER LIVING STANDARDS FOR EVERY BUY-TO-LET

Our landlord clients take pride in offering warm and comfortable homes, but it’s estimated that one fifth of privately rented properties are cold, draughty, damp or neglected.

To combat this, the Decent Homes Standard that governs social housing will be expanded to include the private rented sector, requiring all buy-to-lets to be properly maintained, modernised and energy efficient. Here’s a rundown of the main proposals:

● The threshold rating for an EPC (Energy Performance Certificate) will be raised to C, up from the current D level.

● Adequate heating, noise insulation, kitchen and bathroom facilities will be compulsory in every rental home.

● Tenants will be able to claim back rent if their homes are substandard or fail to meet health & safety standards.

The amount of work required will depend on the age and current condition of each individual property, so do get in touch if you're unsure which upgrades may apply at your buy-to-let.

MAKING LETTINGS MORE PET-FRIENDLY

Brits love pets so much that they’re now the most common reason for tenants moving home, according to the latest research from The Deposit Protection Service .

While many landlords are open to pets, others are wary, and the Renters Reform Bill seeks to give both sides comfort and security by:

● requiring landlords to have a good reason for refusing pets, and giving tenants the right to challenge the decision

● giving landlords the power to insist on pet insurance to cover any pet-related damages

● amending the Tenant Fees Act 2019 to include pet insurance as a permitted payment (this could mean landlords taking out policies themselves to be sure of coverage, then passing on the cost to their tenants).

It should be said that many tenants with pets take great care of their homes, and they prefer to stay in them for longer to retain a familiar environment. Although the Bill will remove blanket bans on pets, it should also give landlords greater confidence that they won’t be out of pocket.

GOODBYE TO SECTION 21

The headline-grabber of the Renters Reform Bill is the abolition of Section 21 notices, also known as no fault evictions . Landlords have been portrayed as removing perfectly good tenants for no reason at all, but the term “no fault” doesn’t tell the whole story.

What doesn’t get reported is that landlords are often forced to serve a Section 21 notice when serious rent arrears build up, because local authorities will only house tenants who are evicted, not those who voluntarily leave a home. In fact, many landlords never chase previous tenants for the money owed – they just move on and start again.

The plans to replace Section 21 notices include:

● improving the grounds for gaining possession, particularly for landlords wishing to sell or move into their rental property

● overhauling the court process to make it easier and faster to evict tenants who are either wilfully not paying rent, or repeatedly engaging in anti-social behaviour

● providing more security for tenants by requiring landlords to have a good reason for ending a tenancy if the tenants haven’t breached their agreement.

If the bill achieves all these aims, it could finally bridge the gap between confidence for landlords and the sense of stability for tenants – welcome reassurance for all.

THE END OF ASSURED SHORTHOLD TENANCIES

The Renters Reform Bill will move all tenants onto a single system of periodic tenancies, meaning they can leave poor-quality housing or move more easily when their circumstances change.

Affecting new tenancies first, then existing tenancies twelve months later, the phasing out of assured shorthold tenancies will mean the following for rent increases and notice periods:

● Rent review clauses in tenancy agreements will be abolished, but rent increases will still be allowed no more than once per calendar year

● Landlords will need to give two months’ notice of any rent increase, and tenants will be able to challenge the new figure if they feel it is unjustified

● Tenants will need to give two months’ notice when leaving a tenancy to help landlords avoid lengthy void periods.

If you’re concerned that tenants will keep leaving early and you’ll have constant changeovers, remember that tenants are actually staying longer and longer. This comes partly down to the time it takes to save up to buy a home, and also to people delaying milestones like marriage and children in favour of discovering what they want from life first.

WHAT'S YOUR NEXT STEP?

Landlords and tenants have been calling for changes in legislation for a long time, and while the new proposals certainly have positive aspects for both, they also raise questions. A new online portal is intended to provide greater clarity, but landlords will need to keep checking for updates to ensure they stay within the law.

If you’re wondering what actions you’ll need to take under the new Bill becomes law, or you’d like a managing agent in Birmingham to take care of everything for you, call us on 0121 427 4777 or email info@truemanestates.co.uk – We're here to make your life as a landlord as easy and enjoyable as possible.

Doing It for The Kids: Building A Buy-To-Let Legacy for You And Your Family’s Future

183:783684190 (John Trueman) — Thu, 23 Jun 2022 13:30:13 GMT

Bricks & mortar never go out of fashion.

People will always need homes, which makes buying to let one of the safest investment strategies around. It's also a smart way to build a tax-efficient inheritance, something today's young are becoming more reliant on than previous generations with the ever-widening gap between house prices and incomes.

Property has stood the test of time as a solid way to create wealth with an asset that’s forever in demand and can never disappear overnight. And while nobody can predict what lies ahead, there are steps you can take to accelerate your goals in life, plan a comfortable retirement, and give your children a valuable head-start.

So let’s take a look at how you can lay the foundations of a secure financial future for you and your family.

PAVING THE WAY TO LIFE'S MILESTONES

While true wealth creation happens over the longer term, it’s naturally more motivating when a plan includes some earlier rewards.

As the equity grows in your buy-to-let(s), you can use it to realise some of your life goals long before retirement. Owning rental property can help you:

● extend or improve where you live now

● increase your spending power on your dream forever home

● buy a second home overseas where you may not be able to get a mortgage

● pay for your children’s fairytale wedding(s)

● take trips of a lifetime in far-flung places.

The idea of sacrificing everything today for a better tomorrow is thrown around quite a lot, but it isn’t universally appealing. Fortunately, it's perfectly possible to strike a balance of medium-term rewards and future financial freedom.

GIVING YOUR CHILDREN A HEAD-START IN LIFE

The average age of a first-time buyer has risen by 6 years since 2007 and now stands at 34. At the same time, Rightmove reports that a solo first-time buyer typically needs £74,402 to buy a home.

Higher education costs, escalating rents and soaring house prices have made it harder and harder to get onto the property ladder. Parents want to do what they can, and investing in buy-to-let can help you ease your children's path as they step out into the world by:

● providing a place to live when they’re studying or starting their career

● drawing down equity for a deposit to help them buy their first home

● giving them a ready-made business to take over if they share your love of property

● educating them in financial management and wealth creation

● teaching them independence and responsibility early on.

While you never know what path your children will choose after they finish school, your buy-to-let business can help you make a positive contribution to the beginning of their journey.

CREATING LIFETIME ASSETS AND PASSIVE INCOME

Whether you choose to grow a lettings portfolio or stick at one buy-to-let, being a landlord can be a hassle-free and rewarding experience.

● The naturally upward trajectory of house prices and rents protects the value and improves the yield of your investment, year after year.

● As the equity grows in your buy-to-let(s), you can use it to acquire more properties and/or improve the value of your existing portfolio without dipping into savings.

● Being a landlord can give you a completely passive income when you have a managing agent looking after tenancies, maintenance, repairs and legal compliance on your behalf.

You can also use your lettings income to diversify into ISAs and pensions, or for dipping your toe into more adventurous territory like art, shares and crypto, all the while knowing that your property investment is safe.

SILVER-LINING YOUR RETIREMENT

Financial freedom, more than anything else, provides choices in life, but most incomes aren’t enough to retire in comfort. But with even a small portfolio of just 1 or 2 properties, buying to let can give you:

● an enjoyable retirement beyond a state or personal pension

● decades of pure income after your mortgages are repaid

● equity in your portfolio to release for lifestyle and luxury purchases

● a financial cushion for unexpected expenses

● the funds to start a charity, NGO or passion project.

Right now, you may have no idea how you’ll wish to spend your retirement or how much money you’ll need. Will you want to live closer to your family, move to the seaside, or travel the oceans? Buying to let today can give you more security and options in later life.

PLANNING A TAX-EFFICIENT INHERITANCE

A big concern for parents is that so much of what they leave to their children could get eaten up in tax. The current inheritance tax threshold is £300,000, with 40% payable on anything above that. While the rate has been frozen until 2026, it could increase after that.

With the right strategy in place, you can ensure that more of the estate from your buy-to-lets passes to your children.

● If you purchase rental homes in the name of a limited company, you can make your family members shareholders.

● Holding your buy-to-let properties in a trust for your children can help you avoid the second-home Stamp Duty surcharge if they don’t yet own a home.

● You can reduce the inheritance tax payable by your children when you donate more than 10% of your estate to charities, local sports clubs or political parties.

By planning in advance with the help of an expert tax adviser, you can provide a solid financial footing for your children and a lasting legacy for future generations of your family.

WHAT'S YOUR NEXT STEP?

For a real-life story of how one couple are building a buy-to-let portfolio to leave their children financially secure, take a look at this recent article in The Telegraph .

And if you’d like to talk about starting or growing your own buy-to-let business, why not get in touch? Call us on 0121 427 4777 or email info@truemanestates.co.uk for some friendly and expert tips on how to pick the right rental property in Birmingham and start designing your future.

Number Crunching: Our Essential Guide to Rental Yields for Every Landlord

183:783684190 (John Trueman) — Fri, 10 Jun 2022 09:56:07 GMT

Financial management is at the heart of every successful business. As a landlord, the rental yield of a buy-to-let can affect whether you buy a property in the first place. After that, it can help you monitor your investment's ongoing profitability and performance.

While capital growth forms the backbone of most long-term buy-to-let strategies, the rental yield is often what keeps you in the game. It determines your monthly cash flow and shows you whether a rental property costs or makes you money each month.

With that in mind, this week's blog includes all you need to know about rental yields: why they're important, why you should track them, and how to calculate yours to stay on top of your buy-to-let business.

WHY DO RENTAL YIELDS MATTER?

As with any venture, it makes sense to gauge whether it's a viable proposition at the start and then monitor its performance. Knowing the rental yield of a property will help you work out:

● how much of a good deal it is for the area

● if the income is enough to get a buy-to-let mortgage

● the monthly and yearly profit

● your financial cushion in case of unexpected expenditure

● how well your money is working for you.

So, calculating rental yields is an essential tool in every landlord's handbook to quickly compare one property with another and see which one makes the best rental investment.

WHAT IS A GOOD RENTAL YIELD?

Many landlords ask the million-dollar question: "what makes a good rental yield?" And the answer is, "it's different for everyone".

According to research by Zoopla , the average gross rental yield across the UK for a new purchase is 4.86%. While it's a good benchmark figure, yields can vary widely from region to region, and even from street to street. Do get in touch if you'd like to talk about local rental values in Birmingham.

Remember that initial yields are not fixed and are only half the story. As rents rise, the yield against your purchase price also increases, leaving you with more spare cash every month. Landlords who bought a rental property in early 2020 have seen the market soar, with average rent increases of 15% driven by a shortage of supply that shows no signs of easing.

When you factor in the general upward trajectory of house prices, you can see that increases in capital value and yields continue to out-perform any UK savings account.

WHAT'S THE DIFFERENCE BETWEEN GROSS AND NET YIELD?

Just like salaries, gross and net refer to income before and after deductions.

● The GROSS yield is a simple calculation of the total rental income as a percentage of the value of a property. When you're considering buying a rental investment, most yields you'll see quoted online are gross rental yields.

● In contrast, the NET yield is the profit after removing the ongoing costs of owning a rental property like a mortgage, service charge, insurance, management fees, maintenance and repairs.

● Don't forget that running costs can vary across different property types. For example, a flat converted from a house will have a smaller service charge than a luxury apartment complex, but extra facilities often attract higher rents and professional tenants.

All of the above makes it wise to consider the gross and net yields for a clear picture of a property's likely performance.

HOW DO I CALCULATE THE RENTAL YIELD OF MY BUY-TO-LET?

Calculating your rental yield is quite straightforward, and there's a formula for gross and net to reach the correct percentage.

Calculating gross rental yield

Gross yield is simply the amount of income your buy-to-let generates divided by the property's value.

For a purchase price of £250,000 with an annual rental income of £12,000 (£1,000 per calendar month), the calculation for your gross rental yield is:

(£12,000 ÷ £250,000) x 100 = 4.8%

Calculating net rental yield

Net yield is about your monthly profit after taking into account all the costs involved in owning your buy-to-let.

If you bought a property for £250,000, generated £12,000 annual rental income (£1,000 per calendar month) and had £4,000 expenses, your yearly profit would be £8,000. The calculation for your net rental yield is:

((£12,000 - £4,000) ÷ £250,000) x 100 = 3.2%

As a rule of thumb, the gap between your gross and net rental yield should be no more than 2%. If the difference is wider, check for potential savings in your outgoings like mortgage payments and insurances, or whether your rental income has fallen behind the market and needs a review.

WHY DO I NEED TO TRACK MY RENTAL YIELD?

It's a sensible business decision to keep an eye on the progress and profitability of any investment. Rising property values are highly visible, and your increasing equity will open up more options around refinancing in the future.

Less immediately obvious are the changes to your rental yield against the updated capital value, but by tracking your yield, you can:

● monitor the ongoing performance of your buy-to-let within the local market and against national trends

● create a plan for improvements and upgrades to increase your income and add more value

● decide whether to keep your property, expand your rental portfolio or sell up.

For an accurate annual comparison, pick a recurring date that's right for you. That could be the anniversary of your purchase, the end of the tax year, or perhaps the start of a new calendar year.

WHAT'S YOUR NEXT STEP?

Would you like an up-to-date assessment of the current rental value of a buy-to-let you already own, or how you can increase its performance?

Give us a call on 0121 427 4777 or drop us a line at info@truemanestates.co.uk - we're always on hand with some friendly and expert advice to improve your life as a landlord.

Blooming Rentals: Grow Your Returns In The Garden Boom With Stylish Outdoor Upgrades

183:783684190 (John Trueman) — Tue, 24 May 2022 14:16:04 GMT

Not so long ago, many landlords saw gardens as a bit of a liability. Tenants weren't exactly clamouring for them, and landlords were convinced they'd be handed back an overgrown jungle of weeds.

But the pandemic produced a revolution in the demand and appreciation for outside space across the country. It's a trend that's never gone away, with gardens and balconies firmly on the non-negotiable lists for many tenants in Birmingham. More than that, they're willing to pay extra for the privilege.

So how can you reap the greatest reward from the outside space at your buy-to-let? And how do you match your garden or balcony to the right kind of tenant?

This week's blog digs deep, from tiny patios to family lawns and stylish luxury upgrades. Use our design and planting tips for an in-demand garden to maximise your rent and improve the value of your investment.

SOWING THE SEEDS OF A BUY-TO-LET GARDEN

The perfect buy-to-let garden is beautiful and easy to care for. This magic combination comes from using plants and materials that you can easily replace or refresh.

Plant native perennials and evergreens for year-after-year blooms. See more in the 'Sunny Sizzle and Shady Chic' section.
Hedging and climbers give weathered walls and fences an instant facelift. Planting them in containers requires minimal maintenance and keeps them under control.
Buy spare materials like paving slabs, tiles, decking and paint for easy replacing and refreshing in case they're discontinued or out of stock later.

Give fences and walls a unifying makeover with a contemporary paint job in a single colour.

Install exterior lighting so tenants can use their outside space in the evenings. If wiring into the mains isn't practical, try solar-powered fence lights that can also be fixed to walls.

By reducing the ongoing tasks of planting, painting, weeding and trimming, you make it easy and enjoyable for your tenants to look after your outside space.

PETIT PATIOS AND BIJOU BALCONIES

You don't need a massive garden to give it a big personality - stylish small spaces can pack a lot of punch and be a hit with tenants.

Fill a few containers with hardy perennial flowers , then cover the soil with mulch to discourage weeds.
Jazz up a concrete patio with paving, from classic sandy coloured slabs to the modernity of striking black stone .
For balconies, try lightweight external tiles and decking - IKEA has a brilliant range this year, including stunning geometric designs .

The wonderful thing about patios and balconies is how quickly you can create something truly memorable. You could have an Instagrammable space in a matter of hours!

FAMILY-FRIENDLY GARDENS

Families want a garden that's a real multi-tasker. A safe place where children can play or hang out with friends, and somewhere for parents to relax and unwind.

Lawns are essential for football, gymnastics, camping and running around with soft landings.

Include a lounge or dining space for the family to come together – to eat, play games or simply catch up.
A shed is useful for tools, toys, bikes, sports equipment and sun loungers, or as a den for kids (and parents!) to hide.
Secure all fencing and add a lock to any gates.

A family garden that fulfils the needs of the whole household can really seal the deal for parents.

HIGH STYLE FOR HIGH EARNERS

There's so much more to gardens than plants, lawns and patios. If you want to attract affluent, professional tenants with the promise of a luxury lifestyle, there any many ways to elevate the garden experience to a whole new level.

Create an all-year garden with a retractable canopy that provides shade in the summer and protection in the rain.
Install a permanent firepit or infra-red heating for warmth on chilly evenings.
Upgrade the lighting with different zones and moods.
Inject a touch of Love Island's luxury villa with designer screens .
Build a bar, barbecue or seating area from brick or stone for minimal maintenance.

Drop us a line at info@truemanestates.co.uk for some guidance on the right level of luxury for your buy-to-let.

SUNNY SIZZLE AND SHADY CHIC

Any outside space can look fabulous, and by working with the natural levels of light, you can perfect your design with the right low-maintenance materials and plants.

Colourful flowers love the sun, so have fun with random planting for a magical stylised meadow. Check the RHS website for their top 10 wildflowers .
Shady gardens don't have to be dull - just look at a rainforest floor! Create a dazzling display of gorgeous greens with a mix of ferns .

Natural finishes like stone, terracotta and brick are timeless and perfect for maintenance-free planters, seating and boundaries. Avoid plastic containers as they're rarely sustainable and tend to discolour or fade, potentially spoiling the look of a garden and needing replacements.

For painting or treating fences and walls, use the best-quality outdoor products and use their recommended primers to ensure a long life of protection against the elements.

Finally, not everyone wants to roast in the sun, so if you're looking for your next buy-to-let, don't discount shady gardens or balconies - plenty of tenants will see that as an advantage.

WHAT'S YOUR NEXT STEP?

There's so much potential in the outside space at your buy-to-let. Humans a hardwired for nature, and the pandemic has given tenants a valuable appreciation of having a place at home to get outdoors.

If you're a landlord in and around the Harborne and Edgbaston area, we’d love to help you grow your returns with a garden or balcony that's easy for tenants to love and look after. Call us on 0121 427 4777 or email us at info@truemanestates.co.uk for a chat about what's best for your rental property.

IS BUY-TO-LET BROKEN? FACTS, FIGURES AND FUTURE TRENDS FOR PRIVATE LANDLORDS

183:783684190 (John Trueman) — Thu, 12 May 2022 15:47:03 GMT

There's no denying that buy-to-let isn’t the same as 10 or 15 years ago.

Changes in lending criteria mean landlords have to put in more of their own money; changes in tax policy have affected initial yields; changes in lettings legislation have changed what it is to own a rental property.

As the private rental sector has moved away from short-term profits, corporate investment in buy-to-let is on the rise, with major institutions attracted by its long-term prospects for growth and income.

But is the future only for the big boys? Or is there a place for small, independent landlords to have a thriving and profitable business? Our blog this week looks at the factors affecting the market today and tomorrow, so you can choose whether buy-to-let is for you.

ARE LANDLORDS PANIC-SELLING?

While we've seen some landlords selling up, it's generally those focused or reliant on the monthly rent from their buy-to-lets as a main source of income.

The most successful landlords have always taken a long-term view over their investments. As such, they’re keeping hold of their rental homes and even expanding their portfolios. Capital growth is their priority, and they take care to ensure their buy-to-lets are well managed to stay ahead of the market and attract the highest quality tenants.

The bigger story is how corporates are entering the market. John Lewis intends to build 10,000 rental homes over the next ten years, while Lloyds Banking Group has announced plans for 50,000 buy-to-lets by 2030 and predicts increasing demand over the next five years.

In the words of accountancy firm Blick Rothenberg, “everyone wants to become a landlord”.

NO ROOM FOR AMATEURS ANYMORE

Most of our landlords (and doubtless most others) are conscientious people. They're true professionals who care about their property and tenants.

However, it’s good to remember that, until relatively recently, the system was thoroughly exploited by a particular type who used lending rules, tax breaks and lax legislation to provide sub-standard rental homes for short-term gains at the expense of tenants.

Please don’t try this at home, but their unsavoury formula included:

�� buying the lowest-quality property in a high-demand area

�� filling it to the brim with as many tenants as possible

�� supplying the cheapest specification and appliances

�� carrying out only basic repairs and only after countless reminders (if at all)

�� never investing in upgrades or improvements

Gradual changes in allowable expenses, loan-to-value ratios and standards for habitable homes have made that business far less viable and forced those landlords to either up their game or leave the table.

So, while the landscape has undoubtedly changed, buying to let is still a sound prospect for landlords with long-term investment strategies.

THE HOUSING SHORTAGE ISN’T GOING ANYWHERE

Rental homes are in short supply, and there's no sign of that changing anytime soon.

The shortage is not only underpinning rents and property values; it's ensuring that landlords with high-quality buy-to-lets attract the very best tenants and keep them for years.

Just look at the numbers:

Average rents are up 8% on 2021.
Property prices rose 10% between March 2021 and March 2022.
According to Zoopla, the supply of rental homes is 43% down on the five-year average.
Tenant demand is the strongest we can remember.

Tenancies last longer than ever, creating fewer void periods and more stability.

So landlords and their rental homes are constantly and urgently required, and the market looks set to stay that way for a long while yet.

WHAT ABOUT THE COSTS OF UPGRADING ENERGY PERFORMANCE?

There was a fair degree of fuss when the Government announced its vision for energy-efficient rental homes in February. But in truth, the proposals are no stronger than the shortlisting criteria of many tenants.

Nonetheless, there are a few things worth remembering about the Decent Homes standards:

The government has admitted to not including the most vulnerable households in their report, so the targets may well change.

We don’t know yet if Government grants may be available like the Green Homes Grant will be available, or financing schemes that allow landlords to spread all or part of the cost over a few years.
Improving an EPC rating isn't necessarily expensive - some landlords have seen their ratings go up simply by switching to energy-efficient lightbulbs or sealing drafts.

The estimated expenditure to get the average rental home to Grade C is £4,700, which should easily be covered over 10-15 years of income-producing ownership, increasing rents and the associated capital growth.

With some of the least energy-efficient homes in Europe, UK standards are long overdue for an overhaul. Better homes are better for everyone, and improved energy performance will help to protect the value of your buy-to-let whenever you come to refinance or sell.

ARE THERE BUY-TO-LET STRATEGIES WITH HIGHER YIELDS?

While huge 10%+ initial yields from single lets are mostly behind us, it doesn’t mean buy-to-let isn’t profitable or that higher yields aren't possible.

Target high earning professionals: Use the tips in our recent blog ( https://www.truemanestates.co.uk/premium-lettings-how-to-attract-high-earning-professional-tenants ) to upgrade your buy-to-let to get the highest possible rent. Busy and successful people will happily pay more rent for a stylish and high-quality specification.
Explore multi-lets/HMOs: You could double or triple the monthly income of your property if it can take five or more unrelated people living in it, each on a separate tenancy. Remember that you'll need a license from the local authority, and there are stricter fire-safety regulations along with extra management.
Consider building to rent: Corporate organisations are making a big move into build-to-rent, but there’s nothing to stop independent landlords from partnering with local building contractors and property developers to pool their expertise on higher-yielding projects.

Invest in less popular property: People’s dream homes to buy tend to be either period properties or brand new ones. However, some of the highest-yielding buy-to-lets are homes built in the 1980s, 1990s and early 2000s because of the rent they achieve against lower purchase prices.

There are many buy-to-let models and plenty of opportunities for a healthy business. With some creative thinking and openness to new ideas, the rewards can be significant for landlords and tenants alike.

WHAT'S YOUR NEXT STEP?

Property has proven itself time and time again as one of the safest investment strategies. People will always need a home, and, whatever happens in the market, your buy-to-let cannot disappear overnight. There’s a reason for the phrase: “as safe as houses”.

Whether you’re an experienced landlord or looking to buy your very first rental property in Birmingham, we’d love to help you make the most out of buying to let. Give us a call on 0121 427 4777 or email us at info@truemanestates.co.uk for friendly and expert advice: we’re here for your success.

PROTECTION MONEY: A GUIDE TO LANDLORD INSURANCE AND REDUCING YOUR PREMIUMS

183:783684190 (John Trueman) — Tue, 03 May 2022 12:28:25 GMT

We all know someone who never insures anything and never has any problems. But given that £8m is paid out every day in home insurance claims, not everyone has the same luck.

Although it isn’t a legal requirement to insure rental homes, a survey of 3,000 landlords revealed that around 85% do protect their buy-to-lets. For the other 15%, research by LV suggests that landlords spend £600m every year on repairs that could be covered by insurance.

Most of our landlords are properly covered, but we also speak to some who haven’t fully considered how to protect themselves and their buy-to-let. Confidence and luck are wonderful assets, but not much use when a boiler breaks down late at night, or a tenant runs into difficulty.

A comparatively small monthly cost could save you from enormous bills and nasty surprises. With that in mind, this week’s blog looks at the different types of landlord insurance available, and how you can reduce your premiums while having complete peace of mind.

LANDLORD BUILDINGS INSURANCE

Regardless of any other cover, no landlord should be without buildings insurance. This protects the physical structure of your buy-to-let, from the roof, walls and windows to permanent fixtures like baths, toilets, fitted kitchens and internal doors. It also includes external boundaries, garages and sheds.

Buildings insurance covers events like:

● fire, explosion, storms, floods, earthquakes

● vandalism or malicious damage

● frozen and burst pipes

● fallen trees, lamp posts, aerials or satellite dishes

● subsidence

● vehicle or aircraft collisions.

If you have a mortgage on your buy-to-let, your lender will insist that you have enough buildings insurance to cover the outstanding balance of the loan, but they cannot make you take out cover with them (unless it's included in your mortgage package).

LANDLORDS CONTENTS INSURANCE

Your buy-to-let doesn't need to be furnished to make landlords contents insurance essential. If you rent your property out unfurnished, there will still be things inside that belong to you that aren't covered by a buildings insurance policy.

Landlords contents insurance covers against damage or theft for things like:

● kitchen appliances

● curtains, blinds, carpets and floor coverings

● bathroom cabinets and shower screens

● boilers, radiators and heaters

● electrical switches and sockets.

If your rental is only equipped with budget fittings, you may feel they're not worth insuring. But if you're aiming for a premium rent with a high-quality specification, it's worth protecting the investment you've made, even with the most conscientious tenants.

Remember that contents insurance for landlords doesn’t include your tenants belongings, and they should be encouraged to take out their own policy.

LANDLORD LIABILITY INSURANCE & LEGAL COVER

It's a fact of life that accidents and disputes can and do happen. If a tenant or contractor decides to take legal action against you, the costs involved can quickly escalate.

Landlord liability insurance and legal cover are both inexpensive and cover you for:

● access to legal advice

● recovery of rent arrears

● reclaiming damages from tenants

● solicitor and court costs

● disputes over the costs of repairs and renovations

● personal injury at the property to tenants, guests and contractors.

Policies can be had for around £10 per month with coverage in the hundreds of thousands of pounds: good value if you're held legally responsible for an accident and need to pay compensation.

RENT GUARANTEE PROTECTION

Even the most seemingly secure tenants can hit hard times. They could lose their job, break up with a partner or encounter a health issue. The current cost-of-living crisis will also impact tenants through stretched budgets and higher energy bills and inflation.

Rent Guarantee Protection covers you for non-payment of rent, generally from the point your tenant is more than 30 days late. Many policies also include legal fees in case you need to regain possession of your property.

Typical policy requirements include:

● credit checks and appropriate references for every tenant (previous landlord/managing agent and/or employer)

● a tenancy agreement signed by everyone living at the property

● a protected security deposit in a government-approved scheme.

It’s really important to fulfil these criteria to avoid your claim being invalid.

LANDLORD EMERGENCY COVER

Whether you're a self-managing landlord or you have a managing agent to recommend trusted contractors, emergency callouts and temporary repairs are rarely cheap.

Landlord emergency cover provides around-the-clock protection against the loss of essential services to keep your buy-to-let habitable and your tenants safe.

Policies cover the costs of contractors and subsequent repair works for things like:

● boiler, plumbing or heating breakdowns

● electricity supply problems

● broken toilet facilities, blocked drains or sewers

● lock failure on external doors and windows together with lost or broken keys

● roof, downpipe and guttering issues

● pest infestation (wasps, hornets, rats and mice).

The cost of overnight accommodation for tenants is also usually included if your rental property is uninhabitable after an emergency.

HOW TO REDUCE YOUR PREMIUMS

Your buy-to-let property is your business and a valuable investment, so don’t skimp on your insurance. Nonetheless, there are many ways to keep the cost of your premiums as low as possible.

● Shop around each year when your insurance comes up for renewal, then ask your existing provider to beat any cheaper quotes you find.

● As well as speaking to the big names in home insurance, check with your letting agent for industry-only deals and specialist providers.

● Look at combining your insurance cover into a single policy. Add-ons are often cheaper than standalone policies.

● Claim your insurance premiums back in your tax return.

● Explore portfolio policies if you have four or more buy-to-lets.

● Improve security with solid locks and a burglar alarm.

● Increase your voluntary excess, but only to a level you’re comfortable paying if you need to make a claim.

Finally, take good care of your rental property and fittings. Neglect isn’t covered by insurance and leads to disputes, dissatisfaction and damage.

By carrying out regular mid-tenancy inspections at least every 6 months, you can spot potential problems before they become a big issue. Diligence works and helps you reduce the cost of repairs and minimise the risk of disputes.

We’re here to make your life as a landlord as peaceful and profitable as possible. Call us on 0121 427 4777 or email us at info@truemanestates.co.uk for a chat about your rental property to keep it properly protected and performing at its peak.

UNFURNISHED LETTINGS: WHAT FEATURES DO TENANTS PAY MORE RENT FOR?

183:783684190 (John Trueman) — Tue, 12 Apr 2022 09:13:38 GMT

The average age of a first-time buyer has risen to 32, and tenancies are lasting longer than ever. Not all national trends apply to lettings in Birmingham, but this one absolutely does.

With renting no longer seen as a temporary measure, tenants are looking for a sense of permanence combined with more comfort. This means surrounding themselves with their own belongings in a well-presented and well-equipped home.

While most people want to live with their own furniture, the term ‘unfurnished’ doesn't mean entirely bare. There are certain fittings that everybody expects, and others that some tenants will pay extra rent for.

Longer lets at higher rents are every landlord's dream, so this week's blog is all about answering the following questions:

What are the advantages of unfurnished lettings?

What makes the perfect unfurnished home?

Which kitchen appliances are essential, and which are optional?

Which bathroom fittings attract a higher rent?

Do energy-saving measures and luxury touches affect demand and income?

In short, all you need to know about what tenants pay more rent for so you can optimise the profitability and popularity of your buy-to-let.

THE BENEFITS OF UNFURNISHED LETTINGS

There are plenty of reasons why unfurnished homes are better for landlords and tenants alike. Take a look at our ten top benefits: which ones would make the biggest difference to you?

Spare yourself the time and expense of buying, repairing or replacing items of furniture.
Use the savings to invest in upgrades to your property that improve its sale and rental value.

Forget the need to keep up with changing safety standards around fabrics and textiles.

Avoid trying to appeal to changing tastes and fashions.

Remove the hassle of storing any furniture your tenants don’t want.

Say goodbye to checking for broken crockery, missing cutlery or worn-out towels and bedding.

Make your tenants feel more at home surrounded by their own things.

Reduce tenancy changeovers and vacant days because moving home with furniture is expensive and time-consuming

Pay less for inventories and landlord contents insurance.

Find it easier to decorate, renovate and repair between tenancies.

A truly successful unfurnished letting is a home that tenants compete for and never want to leave. How do you do that? Keep on reading!

THE PERFECT BLANK CANVAS

To get the highest rent, think about creating a stylish, durable and neutral backdrop. One that's ready to move into with minimal fuss and that works with anyone's furniture and style.

Fresh paintwork - use a high-quality washable emulsion on your walls so your property stays smart without the need for complete redecoration.
Carpets or wood flooring? Hardwood engineered floors make a property look more expensive than carpet. They reflect the light, are easier to clean and are more durable. Oak is a safe, stylish and popular choice. Tenants are happy personalise a space.
Although they look better than bare bulbs, you don’t need to supply lampshades. But there should certainly be a working lightbulb in each fitting; preferably low-energy with a warm white light.
Remove the need for tenants to drill into your walls. Landlords are generally expected to provide window treatments because they are attached to a property and seen as essential. Timber blinds look great in most homes and are a complete style solution that helps empty rooms look more finished. If you'd rather avoid buying the treatments themselves, at least fit sturdy curtain poles (rather than cheap tracks that are susceptible to breakage).
Avoid creaky and wobbly handles. Make sure they're securely fitted, working properly and look great on cupboards and doors. These are often opened on viewings and create an impression about the quality and feel of a home.

We’ve written a whole article on this, so click here for more valuable tips on styling your buy-to-let without using furniture.

WHAT DO TENANTS WANT IN A KITCHEN?

Good quality kitchens and appliances can help you achieve a noticeable uplift in rental income. They last longer, are more efficient, cost less to run, require fewer repairs and attract discerning tenants, whether they're Bake Off wannabes or not.

Install enough cupboards and shelves to comfortably store your tenant's food, crockery and pans.
Fit high-quality work surfaces for preparing food. In larger spaces, a breakfast bar can add that sociable and sleek chef's-kitchen quality.
Include a stainless steel or black fan oven, fast hob (gas, halogen or induction) and extractor hood.
Supply an efficient fridge/freezer and a washing machine with at least a 7kg load size.

For families and professional tenants, a dishwasher can be a real dealbreaker. A well-designed half size model is fine in homes with no more than two people, otherwise go full-size.
Lay durable and contemporary tiles, vinyl and linoleum that don't swell like wood can.

Don't worry about small appliances like kettles, toasters, microwaves and coffee makers: tenants don't expect them.

BOOST YOUR BUY-TO-LET'S BATHROOM

Never underestimate the power of a magnificent morning routine! Give your tenants a great start to the day with our essential checklist to a blissful bathroom.

Choose high-quality taps for the bath and basin in a low-maintenance metal finish like chrome or brushed steel.

Provide a decent-quality loo seat that’s fitted correctly - you'd be amazed how many tenants look for this from traumatic previous experiences!
Install a powerful, thermostatically controlled shower for an everyday reminder to your tenants of how happy they are to live at your buy-to-let.
Does your shower enclosure or bath have a screen? If not, install a good quality rail as an inexpensive and thoughtful gesture. While tenants are happy to add their own sense of style with a shower curtain, the lack of a rail looks cheap.
As well as tiled floors and splashbacks, fully tiled walls look really smart and stay looking great. As a minimum, tile up to ceiling height around the shower or you'll be forever dealing with peeling paint. Keep an eye on the grouting and sealant to keep it tidy and effective against water damage to the floor or ceiling below.
Fit a bathroom cabinet & mirror above the basin to keep everyday essentials like toothpaste, lotions, potions and creams out of sight, under control and free of dust. Go for the biggest size the space can take.
Ensure effective ventilation. Even in bathrooms with windows, an extractor fan ensures moisture doesn’t turn into condensation and mould. Check the decibel level: you're looking for a subtle hum rather than a disturbing grind.
Include a caddy or shelf for shower products. This looks so much better than piles of bottles on the floor or around the bath that are annoying and messy.

It's all about having a sleek, showroom style that's easy to maintain for an enjoyable experience every time.

ECO EXTRAS & LITTLE LUXURIES

Stand out from the competition with eco-solutions and touches of opulence at your buy-to-let.

Energy-saving measures are a hot topic that's here to stay, while extra comfort and convenience are the aspirational qualities that attract affluent tenants.

Try these examples for inspiration, then talk to us about the most appropriate options for your rental property.

Brushed steel or powder-coated metal power sockets and light switches

Wired-in multi-room audio speakers

Smart thermostats and designer heated towel rails

Mood lighting under kitchen wall units and behind bathroom mirrors

Water-saving flow restrictors on taps, shower and loo

Solar-powered outdoor lighting to the garden or balcony

Integrated slide-out bin in the kitchen with compartments to separate recycling and rubbish.

Looking for more energy-saving ideas? Click here to read our article on being an eco-landlord.

WHAT'S YOUR NEXT STEP?

Do you want to turn your buy-to-let into a market-leading rental home? We love showing landlords in Birmingham how to increase their income and improve their business.

Call us on 0121 427 4777 or email at info@truemanestates.co.uk for a chat about the local rental market and how we can help you grow.

COST OF LIVING CRISIS: WHAT CAN LANDLORDS DO?

183:783684190 (John Trueman) — Mon, 04 Apr 2022 12:57:41 GMT

We've all seen the headlines: inflation at its highest point in almost 30 years; interest rates are rising, and the energy cap is about to lift. Everyone's on tenterhooks to see what it will mean for their bank balance, and of course, landlords and tenants are going to be affected.

Nobody quite knows how things will turn out, but the forecasts are stark. It's estimated that 7 million people will fall into financial difficulty after the energy cap lifts on April 1 ^st , rising to 14 million with a further expected price rise in October, just in time for winter.

So, what can landlords do to get ahead of the problem? The short answer is "act now". The longer answer is "actually quite a lot".

To get you started, this week's blog is chock-a-block with practical tips on how you can work together with your tenant on making things easier for them while still protecting your income, investment and costs.

Remember that you're always welcome to get in touch about life as a landlord. Call us on 0121 427 4777 or email us at info@truemanestates.co.uk – we're here to help.

START WITH A HEART-TO-HEART

Checking in with your tenants to find out where they're at will prevent an uncomfortable silence from brewing. You can solve a lot with a friendly chat, and you could nip a problem in the bud before it ever escalates.

Aim for an easy and open conversation; a good-natured fact-finding exercise to see where things stand. Don't assume your tenants have thought of everything around reducing their energy costs – you may be able to help.

● Are they worried about their personal situation?

● Do they have an idea of what their energy bill is likely to be?

● Is there a better energy deal out there for them?

● Are there any opportunities for them to manage their bills?

The key is to listen with an understanding ear. When your tenants feel free to be completely upfront, you can work together on the best way forward for both of you.

MAKE YOUR BUY-TO-LET CHEAPER TO RUN

Having explored how your tenants can reduce their energy consumption and costs, now is a sensible time to review the energy efficiency of your buy-to-let.

As well as softening the impact of rising utility bills, energy improvements can increase the value of your investment, future-proof its place in the market and give you a head start on any further energy-saving legislation.

Even the tiniest draught can cause a noticeable drop in temperature and comfort. Windows, doors, letterboxes, keyholes and chimneys are all potential gateways for heat loss, yet plugging draughts is one of the most cost-effective measures you can take with instant benefits and minimal disruption.

The same is true of flow restrictors on taps and showerheads, and fixing or replacing leaky fittings. The less hot water they use, the lower the energy bill.

Are any older appliances due for renewal soon? Replacements are tax-deductible, and A+ rated models are highly energy-efficient, particularly from brands like Bosch, Neff and AEG.

Finally, never underestimate the power of a well-placed note for creating new habits. Friendly reminders on the washing machine, dishwasher and heaters with eco-friendly tips will ensure your tenants get the maximum financial benefit.

CAN YOU BE FLEXIBLE OR PIVOT?

The race for space to get a garden or an extra room to work from home saw many tenants stretch their budgets during the pandemic, but some may need to review their choice as they look to reduce their outgoings.

If it's clear your tenant will run into financial difficulty, there's little point in forcing them to stay and waiting for arrears to build. Demand for rental property is still extremely high, so you could strike a deal with your tenant to keep the place tidy for viewings in exchange for leaving early once you find a replacement.

This could be an opportunity to have more income-earning tenants who split the bills. For instance, couples or sharers for a two-bedroom apartment rather than a single person using one of the bedrooms as a workspace.

Stay open-minded – the most important thing is that your property is rented to people who

pay the rent and take care of your investment.

THINK ABOUT RENT STABILITY

If the tenancy at your buy-to-let is either approaching or past the end of its initial fixed-term, you could be wondering whether to keep things as they are, announce a rent increase, or end the tenancy.

According to the research team at Hamptons, record-breaking rental growth in 2021 saw the average UK household spend 42% of its net income on rent (rising to 54% in London) - the highest ratio since Hamptons began keeping records in 2010.

Most tenants won't have budgeted for a surge in food and energy prices, and the rising cost of living is expected to translate into slower rental growth in 2022 as disposable income dwindles. Zoopla forecasts an average rise of 4.5%, compared to last year's 7.5%.

Landlords value stability, and although annual rent reviews are par for the course, we're in very unpredictable times. If you've got a fantastic tenant who's punctual with payments, takes care of your property and wants to stay, would it be wise to keep them on at the same rent?

You wouldn't be alone in that choice: the buy-to-let consultancy GetGround surveyed hundreds of UK landlords and found that 69% wanted to help their tenants through the cost-of-living crisis, including temporary rent freezes.

Before you make any decisions, talk to your letting about the current rental value of your property, then factor in the upfront costs of finding a new tenant, the possibility of vacant days between tenancies, and what you feel in your heart and your head. Then you can decide what makes the most sense for you.

PROTECT YOUR INCOME & INVESTMENT

Even if everything's running smoothly with your buy-to-let, the cost-of-living crisis could bring unwelcome news. For example:

● energy prices rise again

● inflation keeps going up

● mortgage interest rates increase further

● the rent stops being paid

● you incur legal costs to gain possession

If you have a buy-to-let mortgage, a quick look at your existing deal compared to current offers will tell if you can make a saving. Even with a fixed rate that's still got a few months to go, you could lock in a new deal to start when the old one ends.

Taking steps to protect your income and investment is particularly wise right now. Although we aren't experiencing problems with the homes we manage, we're keeping an ear to the ground, and arrears are on the rise.

A recent article in the Telegraph states: "Between October and December 2021, the average time between a landlord repossession claim and an eviction was 68 weeks". That's a long time to be without rent.

As a safeguard, you could take out insurance to guarantee your income if your tenant stops paying. A legal protection policy will also cover you in a worst-case scenario of needing the courts and solicitors to gain possession of your property.

Given the forecast for the difficult road ahead, paying a small percentage of your rent for complete peace of mind might feel like an attractive option. Feel free to get in touch to see how our landlord clients are protecting themselves and what could be the best option for you.

WHAT'S YOUR NEXT STEP?

Being positive and proactive through all that's going on will help you stay ahead of potential problems, enhance your rental properties and maintain their profitability. That's always our approach, and why our landlords are so happy!

Would you like the same care and commitment? If you're a landlord in and around the Harborne and Edgbaston area, give us a call on 0121 427 4777 or email info@truemanestates.co.uk – we'd love to show you how we can make a difference to your buy-to-let business today.

LETTING AGENT DIARY: BEHIND THE SCENES OF A TYPICAL WORKING WEEK

183:783684190 (John Trueman) — Wed, 16 Mar 2022 10:04:12 GMT

To describe this job in a single phrase, it would have to be 'never a dull moment'. Aside from opening the office, making a coffee and checking new messages, no two days are ever the same.

Meeting new people and being out in the neighbourhood are two of our favourite things, but the icing on the cake is handing over the keys on moving day. It's such a moment of joy for everyone – the landlord, the tenants, us – as a whole new chapter begins.

The lettings world moves much faster than sales, but agents have far more paperwork and responsibility. With no solicitors checking contracts, it's down to us to get everything right, and all while keeping up the pace.

There's a lot more happening than showing people around beautiful homes, so join us for a glimpse behind the scenes to see how it all comes together.

VALUATIONS & NEW LISTINGS

A big part of our week is meeting new landlords. Seeing new properties is one of the job's best qualities, and getting them ready for the market is even more exciting.

Lettings used to be a complete free-for-all with multiple agencies instructed on every home, but more and more landlords want to work with a single agent they can trust. We need to fill them with confidence to win the business!

Taking along examples of other homes we've let and manage nearby shows landlords that we get results and that our advice makes sense, so a lot of time goes into preparing for every appointment.

While we're on a valuation, we always look for ways to improve a property to achieve the highest rent and the best tenants. We've built up a fantastic list of local contractors over the years, and it's really rewarding to see our recommendations come to life while managing the projects.

Once we've got a landlord's go-ahead and the keys, speed is of the essence. We don't wait until the photos and description are uploaded to the portals; we get straight on to our list of potential tenants to start booking in viewings.

It's all about minimising void periods and keeping our clients' income flowing.

ENQUIRIES, VIEWINGS & OFFERS

There are numerous new enquiries every day, either by phone or email, but not every viewing request is a good fit. Before we take anyone to see a property, we make some basic checks with every potential tenant to avoid booking wasted appointments. These include:

● ensuring the property matches what they're looking for

● confirming their timescale around a moving date

● clarifying their budget

● checking their employment status

● asking how long they're looking to stay somewhere

There can be a lot of coordination in getting everyone who intends to live at a property to come on the viewing. The lettings business is very fast-paced, and if someone is missing from the first appointment, their housemates may not get the chance of a second look.

Offers are always good news, but before recommending them to a landlord, it's good practice to double-check the facts to ensure the tenants are suitable. That means getting all the details confirmed in writing by email, so nothing gets forgotten or assumed.

TREMENDOUS TEAMWORK

Although we all have our individual roles, everything anyone does affects the whole team, so constant communication is crucial.

As well as updating each other immediately on all the new listings and offers agreed, we get together at least once a week to discuss all the goings-on:

· feedback from viewings to keep landlords informed

· upcoming moving-in days

· notices given by tenants or served by landlords

· potential and actual disputes

· maintenance issues and recommended works or improvements

· changes in legislation and latest lettings news

Together with everyone working here, our landlords are also part of the team. We're all working towards the same goal, and keeping in touch with them ensures they feel connected and valued.

PAPERWORK PERFECTION

There's a lot of paperwork involved in lettings, and there's no room for error: it's absolutely vital to make time in our week to keep up with the latest news and changes in the law.

Most tenancies end amicably, but plenty of landlords come unstuck through an understandable lack of knowledge around the ever-changing legislation.

Each tenancy needs to start on a solid footing, so every application goes through the following process:

● detailed application forms

● employment and landlord references

● credit status check

● proof of identity

● signed tenancy agreement

● payment of first month's rent

● completed standing order mandate

● comprehensive inventory signed by the tenants

● security deposit paid, registered and protected

Any amendments during a tenancy also need to be handled correctly. From a change of tenants in a shared house to formal renewals and serving notices, everything needs to happen in the correct order, with accurate wording and at the right time.

INSPECTIONS, MAINTENANCE & EMERGENCIES

As well as viewings and valuations, our diary has a lot more going on. Every rental property needs looking after because they only ever get older, which means regular check-ups, conscientious management and a hint of diplomacy.

Interim inspections

Visiting a property every six months during a tenancy helps us spot and rectify any potential problems early on. It's also an opportunity to catch up with the tenants, ask how they're enjoying their home and see if they're planning to stay or move out. This helps us to schedule any future works and keep the property in mind in case a potential new tenant gets in touch.

Maintenance

As well as general upkeep and repairs, we need to keep an eye on legal compliance (400 pieces of legislation and counting!) In particular, valid certificates for gas safety, electrical installations and energy performance are essential to ensure every property complies with the law, so these all go in the calendar in good time for their renewal.

Emergencies

Fortunately, emergencies are few and far between when properties are managed correctly. But whenever the unexpected does happen – rarely at a convenient moment! – it can be an extremely fine line between a genuine emergency and an urgent repair. We need to balance that with keeping tenants assured that we're on the case, and landlords confident that we're managing their investment correctly. Not always easy!

Would you like to meet?

Now you know all about us, we'd love to know more about you. It's always a highlight to meet new landlords and help them get their buy-to-lets working harder and smarter: after all, that's the whole idea!

If you own a rental property in or around the Harborne and Edgbaston area and you'd like to know if it could perform any better, why not get in touch? Call us on 0121 427 4777 or email us at info@truemanestates.co.uk for some friendly and expert advice that could seriously improve the value and yield of your investment.

RENTABILITY REVIEW: DOES YOUR BUY-TO-LET TICK THE RIGHT BOXES FOR THE RIGHT TENANTS?

183:783684190 (John Trueman) — Tue, 01 Mar 2022 16:44:55 GMT

There’s a book by Simon Sinek called Find Your Why, and it's all about identifying your reason for having a business: why do you do what you do?

The same question can be applied to your rental property: why would a tenant choose your buy-to-let instead of another one? Why would they pay you more rent? And why would they stay beyond their initial contract?

Asking yourself these questions helps you appreciate everything that's already great about your rental property, and to seek out areas for improvement. It's an integral part of owning a successful buy-to-let, both when it’s empty and while it’s occupied.

It's also why we carry out interim inspections – not just to identify repairs, but also to ensure our landlords' lettings portfolios keep up with the local market and ahead of government legislation.

So let's look at how you can review the rentability of your own buy-to-lets to keep them performing at their peak and pulling in the crowds.

IS YOUR TARGET MARKET CLEAR?

Every business has an ideal customer, but the most successful ones are those that correctly identify their perfect client and make a real connection. If you think of any brands you have an affinity for – perhaps Apple for technology; Tesco for groceries; John Lewis for home furnishings – there’s almost certainly something very specific that draws you to them.

The lettings market is no different, and is made up of several target audiences:

Singles
Couples
Sharers
Families
Professionals
Students
Corporates

If you look at your buy-to-let, is it obvious who you’re looking to attract, and are you in step with the neighbourhood? Schools get better or worse; transport connections develop; shops and businesses evolve with changing demographics.

Take a moment to review the local market: does your student-let have a more profitable future with professional sharers, or could your family rental make a perfect HMO?

Unsure how to fine tune your buy-to-let for its most suitable audience? Drop us a line at info@truemanestates.co.uk for some useful tips - we’re here to help you get it right.

IS ANYTHING LOOKING TIRED?

When you think about checking into a hotel room, do you want to be reminded of the previous guests? They’re literally the last people you want to think about when you jump in the shower, and it’s exactly the same for tenants.

Empty rooms show up every flaw, but not everything that looks dishevelled needs replacing. In fact, there are plenty of superficial jobs that require minimal expense but make an enormous difference to the overall impression.

Among the many removable signs of wear and tear from previous tenancies are:

painting out scuffs on walls and woodwork (including the front door)
dissolving limescale on taps, showers and wastes
removing mould on grout and sealant
steam-cleaning carpets
washing curtains and re-aligning blinds
fixing wobbly handles and hooks
weeding gardens and jet-washing balconies and pathways

Wondering if you’ve missed anything? Get in touch for a chat about

DOES EVERYTHING IMPORTANT WORK?

Your tenant's first few hours and days in your buy-to-let form the foundations of your relationship. Little niggles make big impressions, and moving into a property with a fiddly door lock or heating that doesn’t work is simply not a good way to start things off.

Ultimately, anything that’s broken will need fixing at some point. Nothing improves or repairs itself, so delaying is simply holding off the inevitable while risking a showdown.

Use the following checklist to give your buy-to-let an eagle-eyed audit. Once you’re done, you can be absolutely certain that everything works as well as you think it does.

Boiler or hot water tank
Washing machine
Dishwasher
Fridge/freezer
Oven, hob & extractor
Doorbell or entryphone
Locks & keys
Electrical sockets
Light switches
Radiators and heaters
Shower and taps
Gutters, downpipes & drains

Knowing that everything works means you won’t be wondering when the phone will ring after your tenants check in.

IS IT TIME FOR UPGRADES?

The lettings market has become far more sophisticated in recent years and renting a home is now a long-term lifestyle choice for many people. There was a time when tenants demanded far less than buyers, but we’ve seen that change a lot.

The good news is that people are willing to pay higher rents for better homes, so treat every departure of a tenant as an opportunity to make an upgrade, even if it’s a tiny one.

The cheapest appliances are often hopelessly unreliable and equally unpopular among our contractors. You’ll thank yourself in the long run by choosing respected mid-range brands like Neff, AEG, Bosch and Siemens: they’re a hit on viewings and they’ll give you and your tenants years of service.
We still occasionally encounter mixer taps with leaky shower hoses, unpredictable water pressure and fluctuating temperatures. These should be consigned to the past and replaced with a modern, thermostatically controlled shower fitting.
Rising fuel bills are a massive conversation right now, and tenants are scrutinising running costs like never before. Look for gaps in your buy-to-let's energy-efficiency, then plug them.
Replace any unsalvageable carpets or peeling laminates with engineered wood floors.

If you're uncertain whether your buy-to-let is falling behind the times, let us guide you

IS YOUR MARKETING MAGIC?

Once your buy-to-let is looking all ship-shape and pristine, it’s a shame if all that hard work goes to waste with poor-quality promotion.

When choosing a letting agent, run a spot check on how they work. To ensure you get the best result, it's essential for the marketing of your property to include:

up to date photos that reflect what tenants will see today, rather than ones your letting agent took a few years ago when you first met;

multiple images that show off the best angles of the rooms and highlight close-up details and features;

an enthusiastic and evocative description that sells the finer points of your property along with the highpoints of the neighbourhood to attract your target audience;

inclusion on a major property portal to ensure you capture a wide range of potential tenants;

an active social media presence where the agent shows a knowledge of using the platform to promote their listings;

a pricing strategy that’s designed to get you the best possible rent without losing enquiries through overvaluing or guesswork.

WHAT’S NEXT FOR YOU?

Conducting a regular review of your buy-to-let for its presentation and place in the market will keep your investment looking great and in high demand among your ideal tenants.

Keeping our landlords’ rental homes current and competitive is our top priority, and we’d love to show you how we can do the same for you. Give us a call on 0121 427 4777 or drop us a message at info@truemanestates.co.uk .

LEVELLING UP LETTINGS: SHOULD YOU SELL OR UPGRADE YOUR BUY-TO-LET PORTFOLIO?

183:783684190 (John Trueman) — Tue, 22 Feb 2022 16:03:57 GMT

What a time to be a landlord! No sooner are we past the phasing out of mortgage interest relief than the Government announces new areas of expense.

The Levelling Up white paper released on February 4 ^th aims to make the Private Rental Sector in England and Wales more eco-friendly. It's all part of a drive to reduce carbon emissions as part of the UK's target to be net-zero by 2050.

While everybody agrees that energy-efficient homes are a good thing, the white paper has left landlords in Birmingham and around the country with more questions than answers.

● How much will it cost to upgrade your buy-to-let?

● Will you get that money back through higher rent?

● Is funding going to be available?

● Are you better off selling up and buying a more energy-efficient property?

● Should you stop being a landlord altogether?

There's plenty to unpack in there, and our blog this week does just that, so you can make a plan that's best for you.

EVALUATE YOUR EPC

Every rental property needs to have a valid EPC (Energy Performance Certificate).

Here's a quick refresher of EPC facts:

● EPCs are valid for 10 years

● Since 2018, all rented properties must have a minimum EPC rating of E

● From 2025 the minimum EPC rating requirement raises to C

● The current penalty for not having a valid EPC is £5,000

● From 2025, the penalty rises to £30,000

Before you make any decisions about selling or upgrading your buy-to-let, check your EPC for its current rating and expiry date. If the rating is already C or higher, you can relax.

If the EPC rating is D or E, there's work to be done, and a good place to start is by looking at the suggestions on your certificate for improving your buy-to-let's energy performance.

HOW MUCH WILL IT COST TO LEVEL UP YOUR BUY-TO-LET?

If your buy-to-let already has an EPC rating of D, the work required to reach C might be less than you think. A few relatively simple upgrades could tip you into the higher rating without major disruption or expense.

However, let's look at how the numbers might work for a typical rental home.

The Government recommends a fabric-first approach, which means insulation to roofs, walls and floors. The Impact Assessment estimates the average cost of reaching an EPC rating of C to be around £4,700.

According to the Homelet Rental Index , the average monthly rent in the UK for a new tenancy is £1,064.

If we spread the estimated cost of improvements over the 34 months between now and the end of 2024, the monthly cost comes to £138, about 13% of the rental income.

For existing tenancies where the deadline could be another three years away, that monthly cost reduces to £67, or roughly 6.3% of the rental income.

Yes, we're talking averages, but given that it's good practice to keep 10% of the monthly rent aside for maintenance and repairs, those figures really aren't so tragic.

COMPARE THE COST OF LEVELLING UP VS SELLING

The big question on the lips of every landlord is whether to:

● keep and upgrade an existing buy-to-let;

● sell it and reinvest in a more energy-efficient property

● walk away from lettings altogether.

Some of the answers will come from the physical age of a rental property, and whether it's owned by an individual or through a limited company.

If you're a landlord with a well-insulated and modern buy-to-let, the likelihood of major works is probably quite small. But if you own a less energy-efficient older property, you might be tempted to sell up.

So let's look at three factors that may affect your decision:

1) Energy prices are a real hot potato right now, not least among homebuyers. Although there are no regulations around the EPC ratings of owner-occupied properties, the market for inefficient homes will be affected. This could mean less interest from buyers, or lower prices to cover the cost of upgrades.

2) Selling investment property attracts Capital Gains Tax (for individuals) or Corporation Tax (for limited companies). You'll also need to add in legal fees and estate agents commission.

3) As well as regular Stamp Duty , buying investment property attracts a minimum of an additional 3% in the form of the Second Homes Supplement.

If you own multiple buy-to-lets through a limited company, you might choose to sell one of them to fund the renovation of others. Any profits kept in the company will escape corporation tax, and you can claim back the cost of any improvements as a legitimate business expense.

For individuals, it’s a different story. All your profits will be taxed, regardless of whether you intend to reinvest in another property. So it may turn out that keeping and upgrading your buy-to-let is the more profitable option.

WILL THERE BE GOVERNMENT FUNDING?

Within the Government's white paper, the phrase “where practical, cost-effective and affordable” appears. Exactly what that final caveat means we don’t yet know, but it suggests that some rental homes may be given a bit of leeway.

However, the official line right now is that most of the costs are expected to be borne by landlords, and the Government is citing improved property values as one of the benefits.

Whether landlords will have to foot the entire bill on every buy-to-let remains to be seen, and plenty of lobbying lies ahead to push the Government into backing its commitment with some kind of funding. Perhaps the 2024 General Election will provide the impetus for landlord-friendly manifesto pledges.

So, if your buy-to-let is performing well, it may be worth sitting tight for now. Grants may become available, and the current pressures on energy prices may relax to make them less of a talking point for buyers and tenants.

PHASE YOUR LEVELLING UP IMPROVEMENTS

If you decide that upgrading your existing buy-to-let is the best option, having a planned programme of works will make the cost of improvements more manageable.

By getting ahead of the deadline and setting aside some of the rental income each month, you can avoid the following hiccups and hassles:

● the financial impact of paying for everything at the same time

● a last-minute crunch of landlords trying to beat the deadline at the end of 2024

● potential increases in labour costs when demand reaches such a peak

● the stress of trying to find available contractors at a time when so many other landlords are looking

● having a property standing empty because it doesn't meet the new legislation

Minor works can be done while your tenants are present or out at work. For major projects like replacing windows or insulating walls and floors, you could time them around your tenant's holidays to minimise disruption.

WHAT’S NEXT FOR YOU?

Do you have more clarity over the best course of action for you? If you've still got some questions, give us a call on 0121 427 4777 or drop us a line at info@truemanestates.co.uk .

To ensure our landlord clients meet the deadline, we'll be managing energy improvements to their buy-to-lets with our trusted and expert local contractors. So let's get talking, and perhaps we can do the same for you.

RENTAL ARITHMETIC: SHOULD YOU BE A PRIVATE LANDLORD OR A LIMITED COMPANY?

183:783684190 (John Trueman) — Fri, 04 Feb 2022 11:45:38 GMT

Landlords are an essential part of the local rental market - there simply aren't enough new homes being built and demand from tenants is stronger than ever.

Ever since the Chancellor began phasing out mortgage interest relief in 2017, landlords have been wondering whether it's still possible to have a profitable buy-to-let business.

It's a concern for landlords in Birmingham as much as anywhere else. Some have chosen to exit the buy-to-let market altogether, while others have decided against expanding their portfolio.

We'd like to reverse that trend by talking about one of the biggest shifts in the property market: landlords switching from owning their buy-to-lets privately to buying them through a limited company.

It isn’t an option that's right for everyone, and if you only ever intend to own one or two rental homes, you're probably better off staying as a private landlord. But if you're a higher-rate taxpayer and you'd like to build a sizeable portfolio, there can be significant advantages to owning your rental homes through a limited company.

So this week’s blog is all about cutting through the noise to see if being a private landlord or owning your buy-to-lets through a limited company is right for you.

BUY-TO-LET MORTGAGES FOR INDIVIDUALS AND LIMITED COMPANIES

The market for buy-to-let mortgages for private landlords is packed with multiple products from almost every high street lender, and some have interest rates that are almost on a par with standard residential mortgages.

By comparison, buy-to-let mortgages for limited companies are less common. The market is growing as lenders play catch up with landlords setting up limited companies, but rates and fees are still higher.

For example, at the time of writing, fixed-rate buy-to-let mortgages for companies start at around 3% APR, while private landlords can find deals for less than half of that, as low as 1.31% APR.

Buy-to-let mortgages for companies and individuals share the same 75% loan-to-value cap, and variable rates are about the same.

Money.co.uk is an excellent source of information on the latest and best buy-to-let deals for private landlords and limited companies .

ADMINISTRATION & ALLOWANCES

There are differences in the amount of paperwork and tax allowances between owning a buy-to-let as a private landlord and as a limited company. Here's our roundup of the main distinctions.

Private landlords

As a private landlord, the level of administration is very low. You simply include the profit from your rental income with your tax return.

However, you are taxed on 100% of your profits each year, regardless of how you intend to use them. The basic rate income tax for 2022/2023 is 20% after the first £12,573 and up to £50,270, but any income above that is taxed at 40%.

Mortgage interest relief for private landlords has now been phased out and replaced by a tax credit. Fixed at the basic income tax rate of 20% of the mortgage interest repayments, the new rules effectively exclude higher rate taxpayers from claiming the credit.

When it comes to carrying out works to their buy-to-lets, private landlords are also limited to claiming back the costs of repairs. Property improvements are not an allowable expense for income tax.

Limited companies

Setting up a company is a very simple procedure. Just log on to the Companies House website , then start the process. It takes less than 15 minutes.

Owning a company does come with extra administration and you'll need to pay corporation tax on your profits and file annual accounts that are separate from your regular tax return. Of course, you can outsource that work to an accountant.

The real benefits come from allowable expenses, which include mortgage interest relief and making improvements to your property.

Mortgage interest is considered an allowable business expense, which means you can claim for your entire monthly mortgage payment on an interest-only loan.

For profits left rolling up in the company, you'll only pay corporation tax at 19%. This makes carrying out improvements extremely tax-efficient as well as increasing the value of your portfolio.

You'll pay personal income tax on any dividends you take, but you can time your payouts to make them more tax-efficient, including spreading them over more than one tax year.

INCOME OR INVESTMENT

There's no doubt that the buy-to-let market is moving further and further away from short-term yield, and more towards long-term capital growth.

The days of immediate high yields of 10% and more are mostly behind us, particularly with recent tax changes. But rental property is still a sound long-term investment that produces far greater yields than savings accounts. Coupled with capital growth and the security of bricks and mortar, buying to let can be an effective route to a financially-free future.

One obstacle to expanding your portfolio can be the need to find a 25% deposit for each purchase. And paying income tax on 100% of your profits against a background of reduced allowances can leave dwindling returns.

But a limited company can be extremely tax-efficient if you intend to use the profits from your buy-to-lets to expand your portfolio. That corporation tax rate of 19% leaves far more to play with than the higher-rate income tax of 40%.

When you add up the savings on mortgage interest relief, income tax and increased allowances for improvements, it's not hard to see how much faster your pot for expansion can build, and with less and less needed from your savings.

And as any mortgages are paid off, you'll have plenty of options to explore with your tax adviser over how to make the most of your portfolio's income in your retirement, either through share dividends or selling all or part of the company.

PROPERTY SALE & TRANSFER

At first glance, it's not entirely obvious whether you're better off as an individual or limited company when selling your buy-to-lets. But as you'll see, there is one bargaining chip that only companies have.

Selling a privately owned buy-to-let immediately attracts Capital Gains Tax (CGT) which is currently 28% for higher-rate taxpayers and 18% for basic rate taxpayers.

Everyone has a tax-free Capital Gains Tax allowance of £12,300, so you only pay CGT on profits above that. But with the gain added to your income for the year, it could push you into a high-rate band for income tax.

Limited companies don't pay Capital Gains Tax. All their profits, regardless of whether they come from rental income or selling a property, attract corporation tax which is currently 19%.

You can also claim back purchase costs like stamp duty and legal fees along with any capital improvements you've made to the property (although a limited company would probably have already claimed against those improvements as they were made).

So far, so unclear.

However, and as made famous fairly recently with Tony & Cherie Blair, purchasing the shares of a company with assets including property attracts Stamp Duty of just 0.5%.

On a sizeable portfolio that could be quite a saving for the buyer, and may give you valuable bargaining power to sell your company and portfolio for a higher price than you might have achieved by selling each property individually.

INHERITANCE PLANNING

An aspect of buy-to-let that rarely gets any attention is inheritance tax.

The way you own your investment properties can have profound effects on the amount of tax paid by your beneficiaries. If you intend to keep your buy-to-lets as a business to pass on to your children or anyone who isn't your husband, wife or civil partner, owning them as a limited company can have a real advantage.

Inheritance tax is currently 40% and is payable on anything over the tax-free threshold of £325,000 (this rises to £500,000 for passing into your children or grandchildren, and for estates worth over £2,000,000.

But with a limited company, you could choose to make it a real family enterprise by making your beneficiaries shareholders whose controlling interest grows over time. And if more than 50% of your business includes buying land to build rental homes on (the build-to-rent sector is most definitely worth exploring), the company may also be eligible for Business Property Relief. This can reduce Inheritance Tax on qualifying assets by 50%.

Tax is a supremely complicated area and what’s right for one person or company isn’t necessarily right for another, so we recommend speaking to a tax adviser about your own situation.

FINAL WORDS

For portfolios larger than two properties, owning them as a limited company can be an excellent long-term holding solution. With significant tax advantages during your ownership and for inheritance planning, there's plenty to consider if you'd written off buy-to-let as no longer worth it.

We’d love to help you start, grow and manage a successful buy-to-let business. So if you’re a landlord and you’re looking to begin or expand your lettings portfolio in and around the Harborne and Edgbaston area, call us on 0121 427 4777 or send us a message at info@truemanestates.co.uk to talk about your ideas, plans and the future.

PREMIUM LETTINGS: HOW TO ATTRACT HIGH-EARNING PROFESSIONAL TENANTS

183:783684190 (John Trueman) — Fri, 21 Jan 2022 13:32:25 GMT

Landlords are always asking us how they can make their property more attractive to professional tenants, and no wonder. It's a lucrative market of high-earning people who'll pay a premium rent for the right home. But what exactly do they want?

Professional tenants often work extra-long hours, so their free time is particularly precious: whether they're staying home alone or entertaining friends, they want to truly savour where they live.

They also expect a professionally managed home where they can be sure of being well looked after, with a 24-hour number to call in case of emergencies. And with time a precious commodity, finding a home fast is also a priority, which means your buy-to-let should be listed on a major property portal and not buried in classified ads.

If you already own a buy-to-let, our blog this week will help you identify improvements you can make to reach a new audience. And if you're starting or expanding a lettings portfolio, you'll find tips on what professional tenants look for in potential homes and locations to pay a premium rent.

LOCATION

Either side of a long and busy day, professional tenants want an easy commute and an enjoyable lifestyle that's close to home. In short, the perfect work-life balance.

Singles, couples and sharers have entirely different wish lists than families when choosing a location. Instead of Ofsted ratings for the best schools, they'll be looking up places to meet up with friends.

So when you're considering whether to add a home to your lettings portfolio, use the following checklist to see how the lifestyle matches up:

● easy (10-15 mins max) walking distance to transport

● grabbing a coffee

● somewhere for brunch

● a great local pub with food

● seeing a film

● going shopping

● heading to the gym

● staying in with a takeaway

● a decent dry cleaner

● buying groceries

● open green space

Having a fulfilling lifestyle doesn't require living in the most expensive streets. Professional tenants don't prioritise family-friendly avenues or the most exclusive position; they're looking for convenience and connectivity to enjoy the best of the neighbourhood.

ACCOMMODATION

Successful people want a home that reflects and rewards the effort they put into their working day.

By offering accommodation that's comfortable for everyone to live in, you'll attract professional tenants who'll pay a premium rent.

● Whether the living room and kitchen are separate or a single open-plan space, there should be plenty of room for a dining table and sofa(s) that comfortably seat at least the number of tenants.

● Each tenant or couple will expect a bedroom that's big enough for a full-size double bed, nightstands and wardrobe without it feeling like a squeeze. Single bedrooms get a lot of tenant turnover, which is unsettling for a household and requires time to find a new housemate - time that professional tenants either don't have or would rather spend on something more fun.

● You can add value, space and convenience to a small bathroom by replacing a tiny tub with a large shower. And if you have more than three sharers, an extra shower room will relieve many-a morning rush and the accompanying frustrations.

SPECIFICATION

Professional tenants are happy to rent either newly-built or traditional homes, but they care about living in a style-conscious and modern environment. A place where everything works, and that makes them feel good.

Decoration

Make sure the paintwork is clean and bright. Many marks and scuffs will wash off, and for those that won't, treat them to a fresh coat of warm white.

Windows

Bare windows are a no-no, even in unfurnished lettings. Choose Venetian timber blinds in birch or oak to go with any style of property and furniture.

Bathrooms

A good shower is absolutely essential, along with an extractor fan that works properly. Replace a regular radiator with a heated chrome towel rail for a market-seducing and cost-effective upgrade.

Kitchens

With so much of modern life revolving around the kitchen, the way it looks and functions is a major deciding factor in choosing a home to rent.

It's a myth that professional tenants never cook. They want a good-looking kitchen with:

● fan oven (consider one with a microwave function)

● fast hob

● washing machine with 7kg+ load capacity and 1000+ spin speed

● tall fridge/freezer

● dishwasher (for 1-2 people, you can get away with a well-designed half-size model from the likes of Neff, Bosch & Siemens; 3 or more sharers will expect a full-size machine)

Choose stainless steel for exposed appliances wherever you can. If the kitchen is open to the living space, create a cleaner look by installing integrated models with facias to match the units.

Floors

Engineered or solid wood floors are the finish of choice for professional tenants because they're easy to maintain and look brilliant in hallways, living rooms and bedrooms. Carpets are more prone to stains and can show their age quickly through dust lines behind doors and imprints from furniture.

In wet areas like kitchens and bathrooms, go for tiles: a smart grey or limestone finish goes with almost anything, but contemporary takes on Moorish, Roman and Art Deco designs are also a popular look.

STORAGE

It's remarkable how little storage space we find in some buy-to-lets when it's a huge priority for professional tenants. We all have belongings we need to store, and when there's nowhere for them to go, they end up in piles and make rooms feel cheap, messy and uninviting.

Use our tips to offer a home that stays effortlessly tidy.

Household items

It's essential to have somewhere to store the vacuum cleaner, ironing board, broom, mop, towels and household cleaning products. Common areas like hallways, landings and kitchens are the perfect spots - try to keep them out of living rooms and bedrooms.

Kitchens

There should be sufficient space to store enough food for the likely number of tenants, plus room for cutlery, crockery, pans and containers. If you can't fit more units in, increase their current storage efficiency. Most cupboards will take an extra level, whether an additional solid shelf or a freestanding organiser that stands inside.

Bathrooms

Everyone has products that need to go somewhere. A metal shelf or caddy in the shower will hold gels and shampoos; a mirrored medicine cabinet over the washbasin hides everyday products, and a tall, slender cupboard will swallow loo rolls, hairdryers, beard trimmers and everything else.

Bedrooms

If you're serious about getting a market-leading rent from professional tenants, consider installing full-height built-in wardrobes. They provide tons more storage than their freestanding cousins, making it easier and tidier to stow items like suitcases, boxes, weights, yoga mats, and other personal items.

You'll also have less wear and tear from bulky furniture being carried in and out.

BONUS TIP: Choose space-saving sliding doors with mirrors to make dressing make a room feel bigger and brighter.

Hooks

The humble hook makes life so much easier in so many places. On bedroom doors for clothes; in bathrooms for towels and robes; in kitchens for aprons and tea towels; and by the front door for coats.

OUTDOOR SPACE

Professional tenants aren't looking for large lawns where children can run around and build tents. They love stylish, private and low-maintenance patios, balconies and terraces with things like:

● space for a table and chairs to comfortably seat the number of tenants

● easy-care surfaces like paving and decking

● outdoor lighting

● a few pots with hardy succulents that thrive on neglect

● room for a barbecue

It's also worth thinking about how your tenants will get outside. For singles and couples, it's not so important, but for sharers, the access to outdoor space should be through a common area like a living room, kitchen or hall. If it's through someone's bedroom, there'll be times when it's inaccessible to the other tenants, which could become contentious.

FINAL WORDS

By actively designing your buy-to-let to attract high-earning professionals, you'll achieve premium rent, add value to your property and keep it ahead of the market. And as your equity increases, you can release it to fund future investments.

If you're a landlord with rental property in and around the Harborne and Edgbaston area, we'd love to show you how we can help you optimise the performance of your lettings portfolio. Call us on 0121 427 4777 or email us at info@truemanestates.co.uk for a friendly chat and expert advice.

BUY. REVAMP. RENT. REPEAT: FOR SUSTAINABLE LETTINGS SUCCESS

183:783684190 (John Trueman) — Fri, 07 Jan 2022 15:36:03 GMT

There are many different models of buy-to-let, but a proven winning formula is buying a property in need of renovation, upgrading the specification, then releasing the increased equity to fund another buy-to-let project.

Homes in need of work cost less to buy, which immediately reduces the cost of stamp duty. And when you're not paying for somebody else's taste, you can add value by updating the interior and identifying untapped potential.

With tenancies getting longer and renting becoming a lifestyle choice, tenants are looking for high-quality homes to live in for longer. By meeting this continually growing demand, you'll achieve higher rents and grow a profitable long-term business.

Finding suitable homes to renovate, getting the specification right, and having the finance in place for the purchase and works are essential elements of any successful project. So here's our comprehensive guide to the "buy, revamp, rent, repeat" system used by many successful landlords.

BUY-TO-LET COSTS AND FINANCE

Before you go hunting for a buy-to-let project to renovate, your first step is to confirm your spending power and budget for the extra costs involved with buying and financing a rental property.

The first and most important thing is that buying a second or investment home attracts additional Stamp Duty, so make sure you factor the upfront expenditure into your plans.

Buy-to-let mortgages also work differently:

● loans are usually capped at 75% of the property valuation

● lenders require a monthly rental income of at least 125% of the mortgage payment

● interest rates and fees are generally higher than residential loans

Most buy-to-let mortgages are fixed-rate and, just like residential loans, have a penalty for repaying the balance before the end of the fixed-rate period. Savvy landlords often take out a standard variable rate first, then switch to a competitive fixed-rate after renovations to avoid wasting thousands of pounds in charges.

Aside from dipping into your savings, options for funding the renovation works include:

● rolling the costs of the works into your buy-to-let mortgage

● short-term refurbishment bridging finance

● releasing equity by remortgaging your own home

● taking out a secured personal loan, also known as a second charge

Given all of the above, we recommend speaking to an independent financial adviser to clarify what you can borrow and which lenders and loans are right for you.

SOURCING HOMES TO RENOVATE

Once you’ve confirmed your budget and chosen location, it's time to start looking for a property with the right potential.

Trawl the property portals

To find potential renovation projects, select the type of property you want (a 3-bedroom house, a 2-bedroom apartment, etc.), then reduce the maximum price band by 10-20% of the typical market value. This will remove the already-perfect homes from your results, making it easier to find the ones that need work.

Approach local estate agents

The property portals tell you what's on the market, but local estate agents know about homes that are coming soon.

Many investment buyers approach agents, so make sure you have your funds in place and know exactly what you want. Be specific about the type of property you're looking for, the streets you're most interested in, and how much work you're willing to take on.

Be friendly and professional, then stay in touch with the ones who seem most promising.

Look for auctions

Because they attract investment buyers, auctions are a reliable source of unmodernised and neglected homes. A successful bid is a legal commitment and, because of the speed required to complete the purchase after the hammer falls – usually 28 days – most auction sales are to cash buyers.

It's not impossible to buy at auction with a mortgage, but you'll need to pay for a survey to be carried out before the auction and have a mortgage offer in place. Even then, if your bid is not the highest on the day, you'll lose any costs you've incurred.

Pound the pavement

Not everyone has the time or inclination to wander the streets in search of neglected homes, but it can create opportunities. If you're not comfortable knocking on doors, you could either leave a note with your contact details, or talk to the local agent you liked the most and ask them to follow up the lead.

THE RENOVATION GAME

When taking on a renovation project, your best bet is to start small and know your limits: don't buy a massive wreck with multiple structural problems if you're new to the game. Take the time to build your experience, grow your knowledge and gather a team of trusted contractors.

However complex or straightforward the works, it's vital to get the finish right. Too cheap and your buy-to-let will be difficult to rent with a disappointing income and a high turnover of tenants. Too expensive, and you'll be out of pocket with a low return on your spend.

If you're unsure of the correct specification for rental property in and around the Harborne and Edgbaston area, give us a call on 0121 427 4777 or drop us a line at info@truemanestates.co.uk for some guidance.

Meanwhile, let's look at different types of projects.

Complete refurbishment

This is for the confident expert and requires a building contractor and full team to gut a property and start from scratch.

Having everything new will generate the highest income and protect your property's value for many years, but refurbishments are expensive, and you should budget for surprises and delays.

Conversion

Many houses (particularly Victorian terraces) divide easily into apartments, and plenty of commercial spaces make excellent homes.

Although converting property can be highly profitable, it's also complex. You'll need specialist development finance, and you'll be dealing with local authorities, architects and construction firms. There's also extensive new-homes regulation to satisfy. In short, not for the novice.

Modernising

Mortgages are much easier to get on habitable properties: lenders mainly look for a working kitchen and bathroom, even if they're old. You may get lucky with simply replacing those, stripping off 70s wallpaper and replacing swirly carpets.

Watch out for wiring and heating. Boilers are easy enough to replace - you might even be able to retain existing pipework and radiators - but installing an entirely new heating system or rewiring can be more disruptive. If you need to channel into walls and ceilings, it'll mean more expense with repairs and replastering.

Remodelling

Changing a home's layout can release untapped value and income, usually by increasing the number of bedrooms. Examples include turning an unused loft into a master suite, or relocating the kitchen into the living room to gain an extra bedroom or study.

In freehold homes, you'll generally need simple building regs permission from the local authority. For leasehold, you'll also need approval from the freeholder, and you'll need to update the lease plan to reflect the new design.

Refreshing

Unlike unmodernised homes, those in need of redecoration are often up-to-date but poorly maintained. They can look a lot worse than they really are, which means they can sell for less than they're technically worth.

Look for superficial issues: scuffed and damaged walls, dirty floors, greasy kitchens and overgrown gardens are all simple enough to put right, but they can be off-putting to regular homebuyers.

RENTING OUT YOUR PROPERTY

As soon as you've completed your renovation project, it's time to find tenants who'll take good care of it.

You'll get the best income and the best tenants when your letting agent:

● is local to your property

● has a history of renting other similar homes nearby

● uses high-quality photography in their marketing

● writes enthusiastic descriptions

● advertises on at least one of the major property portals

● has a management department

● has a thorough referencing procedure

Ask every letting agent you meet for examples of homes they've let that match the quality and location of your rental property, then check their reviews on Google for an idea of how successful, professional and helpful they are.

Finally, don't forget one last essential element: how does it feel to talk to them? Your letting agent should be someone you enjoy talking to and feel you can trust, so are you filled with confidence and the sense that you're in good hands?

Keep looking until it feels just right.

REPEAT THE PROCESS

After you've renovated, rented out and refinanced your buy-to-let, it's time to look for your next project.

Before you do anything else, take a moment to review your first venture. How did everything go?

● Was it easier or harder than you expected?

● What aspects of the project did you particularly enjoy?

● Are you comfortable taking on the same amount of work again?

● Is there a new or bigger challenge you'd like to take on?

● Did you learn anything about dealing with suppliers and contractors?

With more experience, you'll find your perfect niche. You might be in the mood for more ambitious projects to flex your creative muscles, or you might prefer less work and faster turnarounds.

As you become known among local estate agents as a reliable buyer and a landlord with high-quality homes, you'll move to the top of their list of people-to-call when a suitable future project becomes available.

And with the right formula in place, you can recycle your initial deposit, then refinance your buy-to-lets to fund future projects, time and time again, leaving your savings free for enjoying life.

FINAL WORDS

Buying, renovating, renting and refinancing buy-to-let property is a proven system that you can repeat to create ever-increasing returns. It's a solid way to build a portfolio of high-quality homes that tenants enjoy and love, all the while growing in value to create a secure financial future for you and your family.

To begin or expand your lettings portfolio, or to talk about the buy-to-let market in and around the Harborne and Edgbaston area, call us on 0121 427 4777 or drop us a line at info@truemanestates.co.uk - we're here to help you become and stay a successful landlord.

2021 RENTAL REVIEW: A THANK YOU TO LANDLORDS & TENANTS

183:783684190 (John Trueman) — Tue, 21 Dec 2021 16:07:37 GMT

2021 RENTAL REVIEW: A THANK YOU TO LANDLORDS & TENANTS

As we approached the beginning of 2021, hopes were high of a return to normal, with Covid and Brexit seemingly in the rear-view mirror. But the year turned out very differently, and both have continued to feature strongly in everyone's life.

With supply shortages, lockdowns, the end of furlough, tax changes and a whole heap of uncertainty, we think it's fair to say that 2021 has been a bit of a jungle!

From our perspective, the year also showed how relations between landlords and tenants in the private rental sector are not a scene of constant combat. In fact, the market is more friendly, open and communicative than we're sometimes led to believe.

So, to end 2021 on a high note, let's acknowledge the challenges landlords and tenants have faced, along with how they've met them and what the future may hold.

LESSONS OF THE LETTINGS MARKET

Just as in 2020, the property market was allowed to remain open through the lockdowns of 2021, with the Government recognising the importance of people's lives at home.

It's so much more than an economic decision, with our emotional well-being heavily improved by living somewhere that meets our needs and reflects our lifestyle. In particular, as working from home remained the norm for so many people, there was no shortage of tenants hunting for extra space both inside and out.

Virtual viewings, social distancing at face-to-face appointments, managing PPE and hygiene – we've all mastered all sorts of skills to keep each other safe while finding a place to live. And we've mostly managed it with a smile.

More than anything, 2021 proved that absolutely nothing gets in the way of our national obsession with making a new home.

LANDLORD & TENANT CHALLENGES

Perhaps the biggest challenge for private landlords in 2021 was the final phasing out of mortgage interest relief on buy-to-let homes.

Already hit with extra Stamp Duty that increased the costs of buying an investment property, some existing landlords decided to sell up and exit the rental market altogether.

It remains to be seen what they'll choose as an alternative investment strategy. Perhaps some will return through the newer business models we covered in our article on lettings trends for 2022 ( https://www.truemanestates.co.uk/lettings-trends-2022-a-landlords-guide-to-future-demand-for-buy-to-lets ).

Meanwhile, tenants faced uncertainty with the end of furlough and concerns over the pandemic's effect on the economy and employment. This made it essential for letting and managing agents to provide a listening ear for any tenant who thought they might run into difficulty.

Our experience was that tenants prioritised their rent over other costs, finding savings where necessary to avoid arrears building up. Our landlords were also flexible wherever possible, meaning we saw very few problems among the homes we let and manage.

SHORTAGE OF RENTAL HOMES

We've always had more tenants looking for a home in Harborne, Edgbaston and the surrounding areas than properties available, but 2021 saw a drop in new landlords and rental stock.

As landlords sold, their properties were snapped up by eager buyers who took advantage of the Stamp Duty holiday. This removed rental homes from the market and increased competition for those that remained.

While many tenants became homeowners, the lack of rental stock hasn't gone away, so the competition for homes is almost certain to continue throughout 2022. A survey of 500 landlords by Simply Business found that only 7% had plans to expand their portfolio, while Zoopla recorded the supply of rental homes in Q3 at 43% below its five-year average.

When the housing shortage is most acute and the potential for rental income so high, it's ironic that the increase in upfront purchase costs and ongoing taxation has created a financial barrier for private landlords to invest.

OPPORTUNITIES FOR THE FUTURE

As with all difficulties and obstacles, opportunity is never far behind. Many landlords see buy-to-let as key to their financial future and are exploring new ways to grow a sustainable portfolio.

Anything that makes tenants' lives easier and more enjoyable, particularly the busy professionals that many landlords want to attract, will always be met with enthusiasm.

As renting becomes a longer-term lifestyle choice, tenants are actively seeking comfort and permanence: there's a genuine market and real desire for better-quality places to live. Whether it's a single occupancy or a multi-let, tenants are happy to pay a premium for a higher specification and a focus on modern design in empty and furnished homes.

Building to rent also shows a lot of promise, where landlords partner with construction firms to buy land and build on it. It's a model that reduces acquisition costs and slashes the Stamp Duty liability, thus removing two major obstacles for buy-to-let investors.

THANK YOU TO EVERYONE

Landlords, tenants and letting agents have a symbiotic relationship that forms an essential part of the property market.

Most landlords are regular people who take real pride in offering homes that are comfortable and enjoyable places to live.

Tenants, meanwhile, are generally easy to deal with, look after their homes, pay their rent on time and live as responsible residents and neighbours.

Of course, problems sometimes arise, and that's where managing agents come in to provide perspective, guidance and solutions. The vast majority of tenancies are amicable from beginning to end, and that's down to the people involved.

Perhaps this doesn't get aired enough, so we'd like to say thank you to all our landlords and tenants for weathering the storm - it's been quite a year for everyone!

FINAL WORDS

That just about completes our roundup of the lettings market for 2021. Wherever you're spending the festive season this year, we hope you'll have a very merry Christmas that leaves you refreshed and ready for 2022.

And if you're thinking of becoming a landlord or expanding your portfolio next year, we'd love to help. Call us on 0121 427 4777 or send us a message at info@truemanestates.co.uk for a friendly chat about property in Harborne, Edgbaston and the surrounding areas and the local buy-to-let market.

LETTINGS TRENDS 2022: A LANDLORD’S GUIDE TO FUTURE DEMAND FOR BUY-TO-LETS

183:783684190 (John Trueman) — Tue, 07 Dec 2021 15:02:25 GMT

What are your plans for your buy-to-let business next year? Buying your first rental property? Upgrading your portfolio? Or expanding into new parts of the lettings market?

Keeping up to date with market trends is the cornerstone of any successful business, and being a landlord is no exception. By offering homes that offer a comfortable and modern lifestyle, you'll continually attract high-quality tenants and market-leading rents.

Some of next year's trends began life in city centres and are spreading further out, while others reflect evolving home life: flexible, sociable and economical are the buzzwords for next year! Climate consciousness, energy bills and outside space are among the biggest concerns of tenants, while new business models are creating more profitable returns for landlords.

So, let's take a look at where the lettings market is going so you can plan your buy-to-let strategy for 2022.

GARDENS & OUTSIDE SPACE

The garden took on many new roles during Lockdown, with additional duties of pub, cafe, coffee shop, park, gym and even office. Searches on the property portals became more focussed than ever before on homes with some sort of outside space, and there's no sign of that changing.

A Rightmove study found gardens topped the list of tenant 'must haves', with 49% saying they valued outdoor space above all else. If you're looking to begin or expand your portfolio, don't underestimate the draw of a garden or balcony.

Tenants expect to buy their own outdoor furniture, but consider these qualities for an outside space that gives year-round enjoyment:

- Attractive and easy to care for

- Decking, patios and simple planting

- Exterior lighting

- Outdoor heating - an infrared heater is an inexpensive touch of luxury

- Privacy - even a trellis on top of a wall or fence can make all the difference

Remember that a garden doesn't have to be huge to be popular. Families will generally look for a lawn and space for children to play, but single renters, couples and sharers tend to prioritise the minimal maintenance of patios and balconies.

WORKING FROM HOME

A recent BBC survey said 79% of business leaders and 70% of the public thought that working from home would continue in some form.

The pandemic has shown that people don't necessarily need to fit their lives around their work anymore. Many are seizing the opportunity for change: some by going self-employed, others through flexible working that mixes days at the office with days at home.

This means that single bedrooms have found a new life and audience. Historically landlords looked for two double bedrooms to attract sharers, but one double and one single bedroom is the perfect solution for couples or singles who need a dedicated workspace at home.

Of course, some people simply need a place to sit with a laptop that isn't the sofa or bed. Aside from dining tables and breakfast bars doubling up on duties, we see small desks appearing in bay windows, alcoves, under stairs and on landings as people create unintrusive work corners.

Are you unsure where a home workspace would fit in your buy-to-let? We can help you identify suitable locations to show potential tenants how well your property works for their lifestyle.

ENERGY EFFICIENCY

Two of the biggest news stories right now are climate change and rising utility bills. It's a double whammy that's causing everyone to look even harder at their energy consumption, for both the cost to the planet and their bank balance.

Tenants are asking more and more about running costs when we're out on viewings with them, which makes the energy efficiency of your buy-to-let an important factor in its rentability. Government legislation is also set to tighten even further.

Not all energy improvements are expensive or require major work, and you can start with simple solutions like:

- low-cost flow restrictors to taps and toilets to cut water consumption;

- room and radiator thermostats to optimise heating use;

- insulation of the hot water tank;

- draft excluders over letterboxes and around doors to reduce heat loss;

- appliances with an eco function (be sure to ask your agent to point them out).

Older homes tend to be less energy efficient, so if you have drafty single glazed windows or zero insulation, talk to your managing agent about a timetable for bringing them up to date and keeping your property in demand.

CO-LIVING

If you've not heard of co-living, think of it as a deluxe version of HMOs and multi-lets. It's become big in purpose-built apartment buildings from corporate landlords, but there's nothing to stop private landlords from increasing their income by offering something similar in houses.

Tenants already share, but co-living gives them a more coordinated experience around their outgoings, home life and how a property is run. Think:

- weekly cleaning;

- bills included;

- a focus on design-led specification;

- smart TVs and desks in each bedroom;

- comfortable & sociable living spaces with high-quality furniture;

- additional shared bathrooms or en-suites.

With its upgraded fittings and enhanced lifestyle, co-living has shown that busy professionals will pay extra for sharing with like-minded people who value a well-managed and stylish place to live.

BUILD TO RENT

If you're looking to scale your buy-to-let business, have you considered building to rent (BTR)?

As the tax liabilities for lettings have increased, landlords with a long-term view are exploring more profitable models. The cost of building a property is less than its full market value, and Stamp Duty is only payable on the price of the land rather than on each home. All of that can quickly deliver savings of many tens of thousands of pounds.

Most new-build homes are built around owner-occupiers who prefer private spaces, but tenants appreciate shared amenities like communal terraces, co-working areas and social events. The idea is to create a place where tenants feel part of a permanent and dedicated rental community – somewhere they cherish and want to stay for the longer term, even moving within the building as their lifestyle changes.

Building to rent also gives you more control over maintenance and repairs. When you own the building and all the apartments within it, you can simply get on with works without needing to wait on the owners of each home for consent or access.

FINAL WORDS

By keeping on top of market trends and evolving lifestyles, buying-to-let can still be a profitable business both now and long into the future.

If you're a landlord in in or around the Harborne and Edgbaston area and are looking for a letting or managing agent to help you optimise your lettings portfolio, why not get in touch?

Call us on 0121 427 4777 or message us at info@truemanestates.co.uk for an expert and friendly chat.

RENTAL CHECK-UPS: OUR ESSENTIAL GUIDE TO EFFECTIVE MID-TENANCY INSPECTIONS

183:783684190 (John Trueman) — Mon, 15 Nov 2021 12:02:57 GMT

How often do you visit your buy-to-let?

When it comes to protecting the value of your property, mid-tenancy inspections help you stay on top of repairs, maintain a good relationship with your tenants and reduce changeovers, voids, and wear & tear.

Inspections are not about telling your tenants to make the bed, plump up the cushions or leave them feeling scrutinised. However, they are an essential element in the smooth running of every tenancy and to ensure your property is well looked after.

There's plenty to cover when organising your visits, including when to arrange them, what to look out for and how to follow up, but with the tips in our essential guide, you'll soon be an absolute pro.

ARE INSPECTIONS NECESSARY?

Mid-tenancy inspections are your chance to stay up-to-date on the general condition of your property and what it's like to live in. Think of them as a way of supporting your tenants in having an enjoyable home life while caring for your buy-to-let as though they owned it themselves.

First things first, make sure your tenancy agreement includes a provision for routine inspections. We find a visit every six months strikes the perfect balance of keeping a handle on things without being intrusive.

Some landlords feel that having the rent paid on time means having good tenants, but it's essential to know that your property is occupied in line with the tenancy agreement. That could be anything from the number of people living there to how they use it.

The level of interest shown by a landlord in looking after their property is often mirrored by their tenants, so regular inspections form a priceless part of every tenancy.

PREPARING FOR YOUR VISIT

Although the legal requirement is to give your tenants 24 hours notice, we'd suggest giving at least a week. It shows more consideration, creates the impression of an organised landlord and gives you and your tenants plenty of time to think about what to cover.

Inspections must also be carried out at reasonable times of the day, although we've never encountered a landlord trying to arrange a visit in the middle of the night! Ultimately it's simply a matter of finding a time that works for you and your tenants.

You don't need to send a letter: an email, text or WhatsApp message counts as written notice, and it's wise to reconfirm 24-48 hours before the appointment.

Encourage your tenant to be there so you can talk together about your property. To avoid forgetting anything and to make the most of your visit, prepare a complete checklist of things to review. It's also worth asking your tenants to write their own list of anything they'd like to discuss.

LANDLORD & TENANT CATCH-UP

Do you know your tenants' plans?

If they're thinking about moving, you could start preparing now for any improvements you'd planned to make between tenancies. The more notice you have, the more time there'll be for precision scheduling to minimise the number of vacant days.

Ask your tenants if they're enjoying living in your property and whether anything has stopped working, started to come loose or needs a knack to operate.

Not everything is obvious to the naked eye, so check if any doors or windows are sticking, whether it's warm enough inside during the winter and that every lock still functions so your tenants feel secure.

Nothing ever gets better by itself, but it's easy for tiny issues and niggles to go unreported until they become larger problems. And when they build up, they become reasons for your tenants to look for a new home without you ever getting the chance to put things right.

YOUR PROPERTY CHECKLIST

Not every tenant - or every homeowner for that matter - notices everything all the time, so keep a level head when looking around. Remember that wear and tear is a fact of life, and you'll always notice more after six months than seeing something every day.

- Water issues are by far the most common, and damp or mould can appear for many reasons. From piled up products against tiles, blocked extractor fans and drying clothes on radiators to poor ventilation or external leaks - identify the cause, then find a solution.

- If your tenants like plants, check that saucers under pots are waterproof. Unglazed terracotta is porous, which can lead to watermarks and stains on your floor, so ask your tenants to swap them for glazed or plastic replacements.

- Leaks below sinks are easily missed when hidden behind bins or household products, but they only ever get worse and can damage cupboards, floors and even allow water into adjoining homes.

- Next, review the condition of all fixtures and fittings, including door handles, locks, switches, appliances, taps, showerheads and hoses, floor coverings and window treatments.

- Is the freezer overloaded with ice; does the washing machine have sitting water or mould on the door seal; is the oven caked in food or the cooker hood clogged with grease? These can affect the lifespan of your appliances as well as your tenants' utility bills and their security deposit.

- Outside, check for any junk or rubbish lying around at the front. For rear gardens, ensure that any conditions in the tenancy agreement are being met around lawn management and the washing of decks or patios.

- If you have a loft, scan for leaks and holes or signs of birds and pests.

AFTER THE INSPECTION

Once you've completed your inspection, be sure to follow up with a written report while it's still fresh in your mind.

Acknowledge any concerns raised by your tenants and set out a timescale of any agreed repairs, maintenance or improvements. Then book in contractors asap to keep up the momentum.

You can also include any changes your tenants need to make to ensure your property stays well cared for.

The report can be checked off at your next mid-tenancy inspection, then again at the end of the tenancy in conjunction with the inventory to minimise any disputes.

FINAL WORDS

Mid-tenancy inspections are the glue that holds tenancies together and the key to keeping your property in good shape. You nip problems in the bud, your relationship with your tenants stays fresh, and you can rest easy knowing that your property is in good hands.

If you're a landlord with rental property in or around the Harborne and Edgbaston area, we'd love to show you how carefully we look after the homes we manage. Call us on 0121 427 4777 or drop us a line at info@truemanestates.co.uk for a chat about protecting the value of your investments and keeping your tenancies in excellent health.

PERFECT PORTFOLIOS: MAXIMISE THE VALUE AND MAGNETISM OF YOUR RENTAL HOMES

183:783684190 (John Trueman) — Tue, 26 Oct 2021 12:32:53 GMT

The holy grail of every buy-to-let property is continuous occupation by high-quality tenants with a market-leading income and a value that increases year on year. None of this happens by itself, and, just with any business, a plan of action is the key to success.

Great tenants pay more money for beautiful homes, and you only have to look at new-build properties for proof that new price ceilings can always be set. By offering a home that reflects the earnings and aspirations of professional people, you create a win-win situation: your tenancies last for longer, your property is better cared for, and your buy-to-let is a joy to own with a healthy return to boot.

Older homes have the built-in advantage of heritage and character that many tenants desire, but they can fall behind on modern, energy-efficient lifestyles. However, any property can lead the way on design or price, and there's nothing to stop period homes exceeding the income of newer ones.

Whatever the age of your rental property, our blog this week guides you in creating high-quality rental homes to keep as a long-term investment or to sell at a healthy profit. So read on for some sound advice in maximising the value of your buy-to-lets, keeping them in high demand, and standing out for all the right reasons.

LOOK THE PART

The first step in attracting the best tenants is to create a rental property that looks brilliant on viewings and in photos. You also want your agent to photograph it properly.

There's no point making your buy-to-let sparkle when the images make it look gloomy, so check the websites of any agents you're considering to see whether their photography is right for your property.

Homes for rent can be trickier to photograph than homes for sale because they don't have the benefit of being lived-in, accessorised and styled. Empty rooms expose everything, which means it's essential for everything in your buy-to-let to look up-to-date and well maintained.

No kitchen will look its best with a dark brown hob, but they're easy and inexpensive to swap for a shiny stainless-steel model. The same goes for old and scaly taps: replace them with modern fittings for an instant bathroom reboot.

Fresh paintwork in white or pale neutrals gives the air of a new start; clean windows make every room brighter, and clean floors make a home feel bigger. For a final flourish, dress naked windows and lightbulbs with blinds and lampshades to add a stylish warmth.

READ REALLY WELL

A killer description packed with enthusiasm and juicy benefits is key to converting the interest from your photos into an enquiry and a viewing. The text doesn't have to be long, but it does have to be good.

Make a list of all the features and benefits of your property, then tell your agent all about them. Beyond the standard points around accommodation and location, let us know about any extra touches that may not be so obvious.

Concealed lighting, clever storage, audio wiring and eco-friendly improvements are qualities we can make a big deal of, and it makes a positive difference to a potential tenant's reading experience when there's lots of good stuff in the description.

Please don't be afraid of telling us too much. We're here to get you the highest possible rent, so the more we know, the better. If you've put in the effort, it deserves to be rewarded.

FEEL JUST RIGHT

Photos and descriptions can show how a home looks and talk about its features, but they can't convey how it feels. Only viewings can do that, and, as well as an emotional connection, tenants develop a tactile impression: from opening doors to turning on taps to walking on floors, very little escapes.

Loose tiles, lifting timber or laminate floors, and threadbare carpets can really bring your property down and make it seem worse than it is. Likewise, handrails, hooks, switches and knobs that are coming loose, poorly fitted or worn-out will create the impression of a neglected home.

All of these are very easy to change, and you'll get the best tenants and the best rent when your buy-to-let feels as good in person as it looks in the photos. It's all about reinforcing the enthusiasm and excitement of your viewers with a home that's even better than they expected.

GET PRICE-WISE

Most new enquiries come from the property portals, and they list homes in price bands that display the monthly rent. However, many landlords work on a per-week basis, which can reduce the visibility of their buy-to-lets.

For example, a rent of £290 per week equates to £1,256 per month, while £285 per week equals £1,235 per month. Both will get buried in the search results from £1,000 - £1,250 and £1,250 - £1,500, putting competing homes ahead of yours.

A slight tweak can change all that. Setting the monthly rent at £1,250 sits exactly at the meeting points of two price bands, which means the property will now appear among the very first listings of both, potentially doubling its audience.

As you can see, being inside or outside a price band by as little as £6 per month can send your property below many other listings and lose valuable enquiries. If you're unsure about where to set the monthly rent for your buy-to-let, call us on 0121 427 4777 for some expert and friendly number-crunching.

BE HANDS-ON

Once you've found high-quality tenants, the real story begins when they move in. How you look after them and your property has a huge impact on the profitability of your buy-to-let, and a plan of continuous maintenance will avoid unnecessary turnover of tenants and loss-making voids.

Taking the time to visit your property every six months will not only identify any minor repairs or niggles; it will keep your relationship with your tenants fresh, friendly and full of trust. It's an easily forgotten part of being a landlord, but it's absolutely worth the effort.

The landlords and tenants of the homes we manage tell us that our half-yearly inspections are one of the most valuable parts of our service. For tenants, the peace of mind of regular check-ups offers a welcome comfort that keeps them happy and makes them stay longer; for landlords, our visits provide opportunities for carefully managed improvements that keep their investments performing well.

FINAL WORDS

With the right marketing & presentation, conscious pricing and an active care regime, you'll draw in the very best tenants and the highest possible rent. You'll also future-proof the value of your buy-to-lets so you can leverage your equity and continually expand your portfolio.

If you own a rental property in or around the Harborne and Edgbaston area, or you're looking to acquire your first buy-to-let here, call for a chat on 0121 427 4777 or drop us a line at info@truemanestates.co.uk . We're here to help you create a life as a profitable landlord with a passive income and peace of mind.

BUY-TO-LET FINANCE: OPTIMISE YOUR PORTFOLIO'S CASH FLOW, YIELD AND PROFIT

183:783684190 (John Trueman) — Mon, 11 Oct 2021 14:43:06 GMT

Buying one or more rental homes can give you additional income now and a plan for financial freedom, but simply owning a property isn't enough by itself.

To be sure of maximising your yield and protecting the value of your portfolio, the financial management of your rental homes is an essential part of being a successful landlord.

There are many ways to use buy-to-let funding to optimise the performance of your properties, so if you're thinking of buying a rental home in and around the Harborne Edgbaston area, or you'd like to get the most from your existing lettings portfolio, you've come to the right place.

We've pulled together all the details to help you begin, improve and expand your buy-to-let business for a sustainable and profitable future.

BUY-TO-LET LENDING AT A GLANCE

Buy-to-let mortgages are slightly different to standard residential loans. As well as checking your credit rating to consider lending to you in the first place, banks also take into account the expected rental income of a property alongside its sales valuation.

Generally speaking, the monthly rental income needs to be at least 125% of the monthly mortgage repayments. For example, if you're looking to buy a property where the monthly mortgage repayment is £1000, the rental income needs to be a minimum of £1250.

Lenders usually work to a maximum loan-to-value of 75% of the purchase price, and most buy-to-let mortgages are loaned on an interest-only basis. It's a combination that helps to keep your monthly outgoings low while increasing the gap between the mortgage repayment and rental income. This protects your cash flow and reduces the risk to the lender of you being unable to meet the monthly payments.

Unlike typical residential mortgages, your personal income is not as important as the rental income from the property. In fact, experienced landlords can often borrow with no income other than the rent they receive.

EXPANDING YOUR PORTFOLIO

Releasing equity from one property to fund another is one of the easiest ways to expand your portfolio without eating into your personal savings.

As soon as you have enough equity in one property to cover a 25% deposit on another without taking the borrowing on the first above 75% of its value, you'll be able to add another property to your portfolio funded entirely by a lender.

Mortgages are generally the cheapest funding you'll find, and many professional landlords advocate leveraging as much of the equity in their buy-to-lets as they can to keep expanding. They think long term and don't care about price fluctuations – merely about the most efficient way to finance and grow their portfolio.

Once you acquire more than three buy-to-let properties, you'll start to meet the criteria for being a portfolio landlord, which can open up portfolio funding on even more attractive terms.

INCREASING YOUR YIELD

Keep reviewing your mortgage. The fast-track to increasing the yield of any buy-to-let property is to reduce your monthly outgoings. If you're already on a variable rate, you'll almost certainly make instant savings by remortgaging at a fixed rate.

Most landlords fix their rates for between two and five years, which gives them certainty over their outgoings without being tied in for too long.

For existing fixed rates coming to an end in the next six months or so, it's well worth reviewing current mortgage offers for better terms. By applying now, you can line up your new rate to take over the day after your current deal runs out to avoid any early repayment charges.

Even if your current mortgage deal isn't due to expire for a while, you may even find any early repayment charges are more than compensated for by switching to another lender or loan if the rate is significantly lower.

Depending on the eco-friendliness of your peppery, you may qualify for a green mortgage. These are gradually becoming more widely available and reward eco-friendly landlords with lower interest rates.

IMPROVING YOUR PROPERTIES

If your buy-to-let is showing its age, it won't achieve its maximum rent or reach its full income potential.

Remortgaging an ageing rental property to invest in upgrades that meet local market expectations will increase the demand, the rental income, the length of your tenancies and, of course, the value of your investment.

It's essential to make the right improvements and to balance expenditure against the increase in income. Overspending won't always give you the return you'd hoped for, while underspending almost always ends in disappointment for both landlords and tenants.

If you own a rental property in and around the Harborne Edgbaston area and you'd like to know which improvements will help you achieve its full income potential, give us a call on 0121 427 4777 or email us at info@truemanestates.co.uk .

TAX EFFICIENCY

When we talk about buy-to-let finance, it's not all about borrowing and banks. How you pay tax on your rental portfolio will impact your business as much as your interest rate.

Tax is a complicated area, and a specialist tax advisor can help you identify where you can improve the tax efficiency of your portfolio and ensure you are claiming the correct allowances.

As well as the expenses you claim, the way you own a property can also affect the tax you pay. If you're married, it could be more efficient to transfer the title into your spouse's name to make use of personal tax allowances.

Owning a property as a company or individual can also affect your liabilities, particularly around capital gains tax and inheritance tax.

Remember that, just like any business, you should only pay tax on your profits, not your entire rental income.

FINAL WORDS

Buy-to-let finance has many faces and can help you start and grow a truly successful lettings portfolio that fulfils all its potential.

If you own a rental property in and around the Harborne Edgbaston area, or you're thinking of becoming a landlord, call us on 0121 427 4777 or email info@truemanestates.co.uk for some expert and friendly advice - our team is here to help.

THE ECO LANDLORD: OUR GUIDE TO SUSTAINABLE & PROFITABLE BUY-TO-LET SUCCESS

183:783684190 (John Trueman) — Tue, 05 Oct 2021 13:19:41 GMT

Energy prices are rising, utility bills are on the up and legislation around the energy efficiency of rental homes is getting tighter.

This background of higher costs and stronger rules, along with the ever-louder conversation around climate change, is making all of us acutely aware of our carbon footprint and how much money we're wasting on bills.

As a landlord, although you probably take pride in your rental property and take energy efficiency seriously, you might wonder whether making improvements is simply an extra cost to you with no benefits. Is it really worth your while?

Well, tenants will pay more rent for - and stay longer in - a comfortable, warm and energy-efficient home. Your improvements will also protect the sales value of your property, increase your equity and give you more leverage to refinance and expand your portfolio.

With that mind, here's our guide to being an eco-friendly landlord with a profitable and sustainable business.

TENANTS CARE ABOUT ENERGY USE

Nobody wants to pay more for their utilities than they need to, and with energy prices forever on the increase, tenants, just like everybody else, are looking at where their money is going.

Even back in 2018, a survey by Prism revealed that 42% of tenants took energy efficiency into account when searching for a home. And when we're out on viewings, the question of running costs is a regular part of the conversation.

Since the introduction of compulsory energy certificates, it's easy to see whether a rental property is economical to run and comfortable to live in. With many tenants saving for a deposit to buy their own home alongside paying rent, energy efficiency is not merely an attractive option for them, it's the key to their future.

Legislation is only going to get tighter in order to meet the Government's carbon emissions targets, so getting ahead of the curve will ensure your buy-to-let retains its spot as a first-choice option among high-quality, long-term tenants.

EFFICIENT HOMES = EFFICIENT RENTALS

We manage many properties and the most expensive and time-consuming homes for landlords are those where things keep going wrong. When outdated boilers and appliances start breaking down, the costs of replacement parts and visits from contractors soon add up.

Unfortunately, nothing ever stops working at a convenient moment, and boilers in particular have a habit of dying in the middle of winter when your tenants need them the most. Having to deal with that and a heated phone call at 7am when you're trying to get ready for work is really no fun at all.

Very simply, homes where things don't work properly are homes that tenants leave. That means more vacant days, loss of income and reduced future rent when a property looks and feels out of date and costly to run.

Always keep the longevity of tenancies at the front of your mind - you can't beat uninterrupted income for the best return on your investment!

ECO-FRIENDLY OPPORTUNITIES TO CHECK

You don't have to do everything at once, but making a list will give you a clear picture of potential improvements.

Quick upgrades include:

● installing flow restrictors on taps, showers and loos;

● fitting draft excluders to window frames and doors;

● adding thermostats to radiators;

● replacing any outdated appliances.

These can all be done during the working day without disturbing your tenants.

Larger works to consider:

● loft insulation;

● plugging gaps in exposed floorboards;

● replacing a boiler;

● renewing drafty old windows

These all make a big difference to the energy efficiency, comfort and rentability of a home, but they can also be messy and disruptive and we'd generally advise carrying them out between tenancies.

PROJECT-MANAGE YOUR UPGRADES

Creating a timetable of energy-efficiency improvements will help you keep on top of legislation with a property that retains its tenants and value.

It's really worth setting it all out so you can decide what to prioritise, what to plan in the future and what makes financial sense now and later on.

As well as obtaining quotes for any works to be carried out, check whether contractors will pick up the materials for you, or whether you need to order them yourself and have them waiting at your property.

Ordering appliances may need some market research for the best deal, then liaising with your tenants over a delivery time, arranging installation and having the old items taken away and disposed of.

A good managing agent can organise all of this for you and check that works are complete without you ever needing to visit or make a call.

BALANCING CASH FLOW & COSTS

As with any business, cash flow is king!

Some energy-efficient upgrades like flow-restrictors cost so little that you'll hardly notice the difference in your pocket, but for larger expenditure around insulation, windows and heating, you may find it makes more sense to spread your outgoings over time.

You can often find interest-free offers on white goods from large retailers like Currys, and they'll even remove your outdated appliances after installing new ones.

For more expensive works, have a chat with your financial advisor. Remortgaging your buy-to-let is often the most financially-efficient way to invest in improvements without large upfront expenditure that leaves a hole in your income.

So-called 'green mortgages' are becoming more widely available and offer lower interest rates for either purchasing an eco-friendly home, or retrofitting an older property.

F INAL WORDS

Energy-efficient upgrades are about so much more than simply keeping up with legislation. With the right execution they make sound financial sense and help you attract high-quality, long-term tenants and increase your income by creating a feelgood-factor around your portfolio.

We've helped many landlords to maximise the demand and yield for their buy-to-let homes, and we can help you do the same. If you own a rental property in and around the Harborne Edgbaston area and you'd like to talk about making the right improvements, call for a chat on 0121 427 4777 or email info@truemanestates.co.uk - we'd love to be your managing agent and help you grow your business and passive income.

LONGER LETTINGS: HOW TO ATTRACT AND KEEP GREAT TENANTS FOR YEARS

183:783684190 (John Trueman) — Tue, 14 Sep 2021 08:42:56 GMT

Every landlord and tenant wants exactly the same thing: security and stability. As a landlord, you want an uninterrupted income stream, while tenants want an uninterrupted home life.

Renting a property has become a more permanent lifestyle choice, and tenancies are getting longer and longer. Many tenants plan to stay in a home for 3 or 4 years – and sometimes more than that – which means they're looking at potential properties in more detail.

From our experience with the homes we manage, we can say that the longer a tenant enjoys living in a property, the more connected they feel and the more they learn to love and care for it as if it were their own.

Longer tenancies also mean less tenant turnover, resulting in less paperwork, less wear and tear from people moving in and out, lower administration costs and fewer void periods. In short, it's really worth preparing your property to capitalise on the trend.

The lettings market in Harborne, Edgbaston and the surrounding areas has many high-quality people looking for long-term homes to rent, so we've packed our blog this week with valuable tips on attracting great tenants and keeping them for years.

Enjoy the read!

EXTEND AN INVITATION

It might seem blindingly obvious, but a sure-fire way of attracting long-term tenants is to openly declare that you want them.

The description of your rental property is the perfect place to advertise that you're actively seeking enquiries from tenants in search of a long-term home, so ask your agents to include some words to that effect.

You don't need to sign a longer tenancy agreement. Life throws too many curveballs for tenants and landlords to over-commit, but welcoming applications from long-term tenants will send a clear message to the people you want to attract.

Be clear that your goal is for you and your tenants to be happy for many years and that long-term happiness for you means having the rent paid on time, your property looked after and no complaints from neighbours about noise or nuisance.

REMOVE PESKY NIGGLES

We all know what it's like to stay in a hotel or Airbnb with dribbling water pressure or cheap fittings. They can take the sheen off a holiday, saved only by the promise of heading back home.

But having to deal with minor annoyances every day of your life would soon have you looking for somewhere new to live.

Typical on the list of niggles for tenants are rickety door handles, wobbly taps, mouldy grouting, fiddly locks, difficult windows, loose loo roll holders and a leaky shower hose. Each is fairly trivial on its own, but they can soon grow into a long list of bugbears and reasons to leave.

These are simple jobs that are easy to fix, and they add to a sense of carefree comfort where petty problems don't exist.

Remember that you can claim repairs as a tax-deductible expense, so avoid the temptation of cheap and short-term fixes. Think instead about the long-term value of your investment and remedy everything as though your buy-to-let is where you live.

OFFER A FRESH START

Is there anything at your buy-to-let that's starting to look tired? Keeping your property up-to-date has a direct impact on increasing your monthly income and the value of your investment, as well as demand from tenants and holding onto them.

A good-looking and powerful shower makes all the difference in starting the day in a good mood instead of a bad one. Mixer taps with a hose don't cut it anymore, and an independent thermostatically controlled unit is an inexpensive and highly visual upgrade.

In the kitchen, we've come a long way from the solid plate electric hobs and dark brown ovens of the 1990s. Even if they still function, they won't be energy-efficient, and they drag down everything around them. Replace any dated appliances with good-quality new models: stainless steel goes with everything, white looks fresh and clean, and black is a dash of sleek style.

Scruffy paintwork will only ever get worse, but scuffs don't always mean you need to redecorate. Marks will often wash off with a magic sponge, so try one of those first to revive your walls and give your tenants a fresh-feeling home.

If you do need to paint, pick a light and airy neutral shade like an off-white or soft Nordic grey to go with anyone's taste and furnishings.

SHOW HOW MUCH YOU CARE

Staying in touch with your tenants from time to time is a valuable exercise in nurturing your relationship.

Half-yearly inspections are not just about checking up on your property. There's also an opportunity to show that you care about your tenants' enjoyment of living there.

We love making interim visits to the homes we manage because they keep a connection between the tenants and us. They know we haven't forgotten them, and they can see our interest in caring for where they live.

Sometimes a minor repair goes unnoticed by your tenants, or they feel it isn't yet worth reporting. A fresh pair of eyes can spot anything they missed, and fixing even the slightest issue gives your tenants confidence and comfort while nipping a potentially larger problem in the bud.

CONSIDER THE VIP TREATMENT

When you look at the lifestyles of your likely tenants, could you add any services to the rent to make the experience of living at your property even more special? Many people will happily pay extra for convenience and time saved.

Window cleaning is an often-forgotten chore in lettings, but sparkling panes significantly increase the amount of natural light in any home and make it a more enjoyable place to live. A regular visit from a window cleaner would maintain that bright and fresh feel.

If your property has a beautiful garden, you might want it to stay that way. Not every tenant has green fingers, but that doesn't mean they won't appreciate a lovingly tended space to be outside.

An organised monthly visit from a gardener to mow the lawn and look after the plants could well be what hooks and keeps the perfect tenants.

FINAL WORDS

With a little extra thought, you can design your buy-to-let as a home where tenants want to live for many years, and the rewards are plentiful and tangible.

We've helped many landlords attract high-quality, long-term tenants to get the best return on their investment, and we'd love to help you do the same.

If you own a rental property in Harborne, Edgbaston or the surrounding areas, call us on 0121 427 4777 or email info@truemanestates.co.uk for some expert and friendly advice.

BEING A LANDLORD: IS BUYING TO LET RIGHT FOR YOU?

183:783684190 (John Trueman) — Wed, 01 Sep 2021 08:39:12 GMT

Owning one or more buy-to-let homes is the dream of many people. The idea of passive income, financial security and building a comfortable retirement is an inviting prospect that, for many landlords, has led to a complete change of lifestyle and career.

Alongside all the headline benefits are many things to consider before embarking on the journey. There's plenty of legislation to keep on top of to ensure your rental homes stay compliant with every change in the law, and it's also important to remember that being a landlord means running a business.

A bit like a romantic relationship, the beginning is the easy bit – buying a property is just the start and, once you've picked up the keys, the real work begins. You'll learn all sorts of things about yourself, not least when things don't go to plan.

So, let's take a look at some of the aspects of starting, building and managing a rental portfolio so you can decide whether being a landlord is something for you.

RESEARCH

Knowing the local marketplace is the foundation to being a successful landlord.

Having a handle on which streets rent well, the sort of people they attract (families, sharers, couples, singles), the level of demand and the rents being achieved are crucial components in focusing your search.

Whatever location you choose, there's some essential legwork in making sure the home you have your eye on will make a sound rental investment, and that means putting in the hours.

As well as looking at listings online, going for a wander to get a real feel for the neighbourhood will help you identify suitable properties faster and give you more comfort in committing to a purchase.

NETWORKING

Although almost every available property appears on the online portals, there's little to beat approaching estate agents direct and forging relationships.

Most enquiries come in by email, but most estate agents would much rather talk than type, so picking the phone to introduce yourself is a great start in standing out from the crowd and being remembered.

Any successful property investor will tell you that staying in touch with local estate agents is key to demonstrating commitment and finding out about new property listings first. It's remarkable how few landlords do this, but if all you do is wait around for an email alert, you'll just be another name on a list.

Identify the best local agents for the type of property you're interested in, then put in some time to develop a relationship and trust. Showing them how serious you are, giving them a clear picture of what you're looking to buy and being a regular friendly face (or voice) will really pay off.

FINANCIAL MANAGEMENT

Being a landlord is a business, and all businesses require a degree of financial management.

First and foremost, having your finance agreed should be your main priority before you even start viewing. Estate agents need to make sure that whoever they introduce to a property is in a position to move, and having the money in place will make you a better prospect.

After that, you need to consider all the costs of owning a rental property: everything from mortgage repayments and insurance policies to a rainy-day fund for regular maintenance and urgent repairs. Check that all the numbers stack up for you to keep your property in good shape.

It's not essential to be a financial wizard, but plenty of landlords come unstuck by not having anything in place to deal with the unexpected. Always keep your focus on achieving the highest rent, minimising vacant days and protecting the long-term value of your investment.

COMMUNICATION

The way you talk to people and handle their concerns will directly impact your experience of being a landlord, from the calls, emails, and texts you make to the ones you receive.

How do you react when things don't go to plan? As a landlord, you need to be the calming influence who puts your tenants' minds at rest when something goes wrong. To coin a phrase: can you keep your head when those about you are losing theirs?

It's all about managing expectations. Your tenants need to feel looked after and informed, which means adopting a caring tone when they call, reassuring them that you'll get onto the problem straight away, and then staying in touch over progress.

When will a contractor visit? Is nobody at the service centre answering the phone right now? Will there be a delay in finding a spare part? Has the engineer actually turned up? All of these need to be relayed to ensure your tenants aren't left wondering if you've forgotten them.

Communication is incredibly important to everyone, but it's easy to fall short when it comes to keeping people informed. Remember that not knowing what's happening can turn into a bigger frustration than the problem itself.

ORGANISATION

Owning a buy-to-let property comes with obligations for a landlord - and expectations from tenants – in keeping a home comfortable and legally compliant. So, an excellent question to ask yourself (and to answer honestly!) is how organised you are.

There's a difference between looking after the home you live in and dealing with problems that come up somewhere else. Organising repairs and maintenance between tenants and contractors requires time and effort, and not always at a convenient moment.

A good start is to schedule annual safety checks, regular maintenance, servicing contracts, policy renewals, and mid-tenancy inspections in advance. You want as much running like clockwork as possible to reduce thinking time and minimise the chances of forgetting an important date.

You also need contractors to call so you can attend to problems quickly and maintain good relations with your tenants. At a basic level, having a reliable electrician, plumber, gas engineer and general handyman in place will save frantic phoning around at the last minute (and avoid the uncertainty of who might turn up).

It's worth deciding at the outset whether you'd like to be fully hands-on, or if you'd prefer a managing agent to take care of things for you.

FINAL WORDS

There's a lot that goes into being a landlord, but you don't need to do everything yourself. In fact, you can stick to the fun stuff like looking at homes, then outsource everything else for a truly passive income.

We've helped many landlords in the Harborne, Edgbaston and the surrounding areas to start and build a successful lettings portfolio, and we'd love to help you too. Call us on 0121 427 4777 or email info@truemanestates.co.uk for a friendly, expert chat about where to go from here.

LETTING GO: ALL YOU NEED TO KNOW TO SWITCH MANAGING AGENTS

183:783684190 (John Trueman) — Tue, 03 Aug 2021 09:01:20 GMT

How do you feel about your current managing agent? If you're reading this, perhaps you have some doubts.

Whether your buy-to-let is for additional income or your long-term financial freedom, it's vital to have complete confidence and comfort in your choice of letting agent. From the moment you first ask them to find you a tenant, and throughout their time looking after your investment, you should feel protected and prioritised by their abilities and actions.

Feeling disheartened about the management of your property can come from any number of reasons, and it usually boils down to one or more of:

- poor value for money

- excessive void periods and loss of rent

- continually finding troublesome tenants

- overcharging for repairs

- unnecessary expenses incurred

- inadequate upkeep & maintenance

- unhelpful or rude attitude

- failing to carry out inspections

- lack of communication

- chaotic compliance and paperwork.

These are all valid concerns, so if you think it's time to change your letting agent, follow our tips for your next best steps.

If you own a buy-to-let property in Harborne or the surrounding areas and are looking for a new managing agent, we can help you make the switch smoothly and swiftly. Just pick up the phone and give is a call on 0121 427 4777 or send us a message at info@truemanestates.co.uk to get your fresh start underway

PINPOINT THE PROBLEM

Before rushing in and moving on, take some time to consider why you wish to switch letting agents.

At the very least, you deserve a polite and professional approach that keeps you informed, so when it's a clear-cut case of poor service, inadequate communication or an unpleasant attitude, switching to a new agent could restart your entire experience.

But it's also worth exploring whether anything about your buy-to-let is making it a challenge to manage. Long void periods, low income and difficulties with tenants can signal an issue with a property as well as an agent.

A well-maintained rental home will give you more income, higher occupancy rates and the best tenants around, so a good first step is to look at whether your property is a compelling option, or needs some attention.

Is there a misunderstanding between you and your agent around the standards you wish to maintain? Do they feel restricted around keeping your property in good repair? Or are they falling short in following your instructions to provide a high-quality home?

Answering these questions will help you move forward with clarity and certainty.

CHOOSE YOUR NEW AGENT

To save repeating your previous experience, use your disappointments with your current letting agent to ask how a new company would handle similar situations.

Try these five pointers on how to make your choice easier:

- Use an agent close to your buy-to-let for more responsiveness around viewings, maintenance, emergencies and repairs.

- Speak to the person who'll be managing your property to see if you're happy with them looking after your investment.

- Try a secret shopping exercise to see how each agent deals with tenants and enquiries: do they talk enthusiastically and knowledgeably about the home you enquired about, or is the experience less than inspiring?

- Get specific service standards and commitments around communication, routine inspections and transfer of rent.

- Look to the future: an agent's profile, marketing and referencing procedures will give you valuable clues around the quality of tenants they attract.

For more detailed guidance, take a look at our blog on choosing the best letting agent https://www.truemanestates.co.uk/letting-agents-how-to-pick-the-best-one .

Now you're all set to start your new partnership.

SERVE YOUR OLD AGENT NOTICE

You don't need to wait for a tenancy to end to switch managing agents, but you must check your agreement for notice periods or outstanding obligations.

Make sure to serve notice to your agent in writing (by letter or email) and to get written confirmation from them over termination dates and any fees due to avoid disputes later on.

If you pay your current agent's tenant-finding fee in monthly instalments, the remainder will most likely become due to end your contract.

Consumer protections cover most private landlords against unfair termination clauses, so don't lose heart if the penalty for switching agents appears too much trouble at first. Ask us for advice and how to proceed if you're unsure of your approach.

When it's clear that your agent hasn't met their contractual obligations – examples include failing to carry out routine inspections, delaying rent payments and not dealing with reported problems – you have the right to cancel your agreement, regardless of its terms.

PUT YOUR TENANTS AT EASE

As soon as you've given notice to your current agent and instructed a new one, it's time to inform your tenants. Depending on their experience of living at your property, they may see the change as a blessed relief, or a cause for concern.

You should provide written confirmation of the agent you're switching to, along with the date when the change will take effect and, of course, the new bank details for paying the rent. Your new agent can handle all of this if you prefer not to have any direct contact.

Either way, it's important that your tenants know the change of management is purely between you and your letting agent, and that their tenancy is secure. Uncertainty can lead people to look for a new home, but it's easily avoided.

Now is also the perfect opportunity to find out if anything needs repairing or replacing at your property. Perhaps your tenants reported an issue that's still outstanding, and you can reassure them of your commitment to giving them a home to enjoy.

DOCUMENTS, DEPOSIT & KEYS

Your new agent will usually collect the keys from your old one, unless they are a long way from each other when your keys may need to be sent by registered post. If that's the case, make sure the address of your property doesn't find its way into the envelope.

All paperwork (in digital or physical form) also needs to be transferred, including:

- tenancy agreement

- inventory

- tenant ID & referencing checks

- energy performance and safety certificates

For any of these sent through the post, have them sent separately from your keys.

Finally, where your existing agent holds your tenant's security deposit, this needs to be transferred to your new managing agent.

FINAL WORDS

There's no need to continue with your current letting agent if you're disappointed with the service you're receiving. You can legally switch the management of your buy-to-let whenever you wish, regardless of whether your property is vacant or occupied, and your new agent can handle most of the transfer work for you.

If you're a landlord with a rental property in Harborne or the surrounding areas and you'd like to talk about switching to a new letting agent, why not get in touch to see if we're a good fit? Call for a chat on 0121 427 4777 or email us at info@truemanestates.co.uk - we'd love to show you how we can manage your investment and help you switch agents with ease.

PRETTY VACANT: HOW TO STYLE YOUR BUY-TO-LET WITHOUT USING FURNITURE

183:783684190 (John Trueman) — Tue, 20 Jul 2021 09:52:32 GMT

Empty rooms can look a bit sad, and there are plenty of uninviting photographs out there of vacant buy-to-lets. It's a constant challenge for landlords and letting agents when the demand from tenants is for unfurnished property, but when homes never look their best when they're empty.

With no comfy couches or well-dressed beds to draw someone's attention, your property needs to work harder to secure the best tenant and the highest rent. The good news is that with surprisingly little time and expense, you can turn empty rooms into welcoming spaces without buying any furniture.

By giving your buy-to-let a few clever styling touches, you can improve its visibility, increase its popularity and maximise its income and performance. More than that, by reducing the potential for wear and tear and keeping your tenants for longer, you'll minimise changeovers, void periods and tedious admin.

Whether you're in the middle of a purchase, halfway through renovating or simply between tenancies, follow our tips to give your empty buy-to-let all it needs to stand head and shoulders above the competition.

If you're a landlord with a rental property in Harborne or the surrounding areas, we're here to help you get it looking the part. Call for a chat on 0121 427 4777 or send us a message at info@truemanestates.co.uk for some expert input.

LIGHTBULB MOMENTS

As well as leaving everyone looking positively ill, cold lighting makes rooms look about as luxurious as a hospital corridor, but it's incredibly cheap to put right.

Early energy-saving spiral bulbs are prime culprits with their blue-tinged fluorescent glare, but newer LEDs with a high CRI score (Colour Rendering Index) emit a natural-looking light as if coming from the sun. The bulbs are readily available at IKEA, Amazon and DIY stores, and they make a massive difference to a potential tenant's viewing experience.

You could even go one step further in living rooms or bedrooms with vintage-looking bulbs where the yellow filaments cast a cosy, soft and flattering glow.

In the mood for an easy luxury upgrade? Because of their height at waist or shoulder level, light switches are an unmissable feature on walls: replacing standard white plastic casings with brushed steel designer faceplates is an easy job with a sleek and stylish impact.

GET A HANDLE ON THINGS

Whenever someone opens a door or a cupboard, the handle is a tactile and visual reminder of sophisticated accessorising or, as the case may be, not.

Having cheap-looking and feeling door handles detracts from any home's appearance, but it's easy to turn a negative impression into a positive one. In older homes, lovely Victorian beehive or porcelain knobs make great close-up shots and talking points on viewings, while modern brushed steel handles deal a welcome blow to brass-effect offenders from the 80s and 90s.

Kitchen cupboards also get an instant lift with new hardware, and you'll find a whole world of knobs, bar handles and flush-mounted pulls in every style and finish that will easily cover any previous holes and look super-smart into the bargain.

Bonus points for metal hooks, not just for coats and scarves in the hall, but for towels and robes in the bathroom and mops and brooms in the kitchen. They look a whole lot better and last a whole lot longer than plastic stick-ons, and there'll be no more ugly ovals of gluey residue on your doors or tiles!

TREAT YOUR WINDOWS

One of the most effective ways to enhance an empty room is to style the windows.

As well as looking great in photos and on viewings, wooden Venetian blinds are available in models to suit every price range and are popular among tenants. Choose a light to medium oak finish to flatter any interior style and decoration.

Whether it's sunlight filtering through the open slats and casting cinematic shadows, or the warmth of natural timber when they're closed at night, wooden blinds look great in both modern and traditional homes. And because they work in every room, from living spaces and bedrooms to kitchens and bathrooms, they provide a stylish continuity that suggests a professional landlord who knows what's important to tenants.

Blinds are also a smart purchase. By having permanent window treatments, you'll remove the need for every subsequent tenant to drill new holes for their blinds or curtain poles, meaning your walls and woodwork will take less of a beating.

FIND A PLACE TO SHINE

Reflective surfaces increase natural light levels and help rooms to feel larger, cleaner and more luxurious.

When taps and showerheads lose their sparkle, they drag everything down with them, making bathrooms and kitchens look dowdy, even when the other fittings are perfectly fine. Sometimes it's a simple matter of good old elbow grease with some vinegar and water; otherwise, find good-quality replacements and watch their gleaming metal catch the light and elevate the surroundings, causing your viewers to cry out: "Ooh, nice taps!"

Staying in the bathroom, a mirrored stainless-steel cabinet above the basin is both practical and stylish. Available everywhere from Argos and Amazon to specialist suppliers, they combine somewhere to get ready for the world with valuable storage space for hiding lotions and potions. It also means your tenants won't have to drill into your tiles, making their lives more enjoyable while removing the potential for damage.

Mirrors can also improve natural light levels and brighten areas that struggle, particularly internal hallways and landings. More than that, they add to the sense of space and flow, giving tantalising glimpses of what's to come.

HIT THE RIGHT TONE

There's no hiding tired, scuffed paintwork or dreary colours when we're out showing potential tenants around empty homes.

Fresh paint makes a home feel like new. But more than that, it makes rooms feel more expensive, more loved and more inviting.

Welcoming and bright are the qualities to aim for so that whatever the personal tastes and furniture style of your tenants, your walls will make the perfect backdrop.

Warm whites go with anything without the starkness of pure brilliant white, and you can ramp up the glamour with an accent wall in a soft neutral like Nordic grey. Favourites among interior designers are chimney breasts, alcoves, and, for a dash of hotel chic, walls behind beds.

Final words

It doesn't take much to transform an empty home into a stylish and inviting future place to live. By using our tips, you'll stand out from the crowd, attract the best tenants and keep them for longer, meaning fewer vacant days and an increased yield.

For some expert advice on getting your buy-to-let property looking just right, why not get in touch? We help landlords every day in Birmingham to increase the popularity and performance of their rental portfolio, and we'd love to help you too. Call us on 0121 427 4777 or drop us a line at info@truemanestates.co.uk today.

GROWTH OR YIELD: WHICH BUY-TO-LET STRATEGY IS RIGHT FOR YOU?

183:783684190 (John Trueman) — Tue, 06 Jul 2021 09:08:49 GMT

"At least one in six people on The Sunday Times Rich List owes their wealth to property or the world of home ownership in some way". Those are the words of Robert Watts, the man who compiles The Sunday Times Rich List.

Building a successful lettings portfolio is an exciting route to financial freedom, and picking a direction for your buy-to-let business ultimately comes down to two choices: capital growth or rental yield.

When it comes to choosing between them, you'll find strong proponents of both whenever you ask the question. For some, capital growth is the be-all and end-all of being a landlord, while others extol the benefits of immediate income and higher yields. You'll also find many successful landlords operating in each camp, with some even managing to combine both strategies.

Comfortable retirement, financial freedom, a change of career, supporting children, expanding a business, earning passive income and being your own boss are all motivators for becoming a landlord. Whatever your goals, building a sustainable portfolio of buy-to-let homes can make them possible.

Whether you're looking to increase the size of your lettings portfolio, add a second strategy to your current one, or even if you're just about to go looking for your first buy-to-let investment, this week's blog has something for you.

If you'd prefer to talk in person about the market for rental property in Harborne or the surrounding areas, call us for a chat on 0121 427 4777 or email us at info@truemanestates.co.uk to get all your questions answered.

KNOW YOUR BUYING POWER

The amount of your own money that you can – or are willing to – put into buying a rental property may well dictate your strategy.

To minimise your capital outlay, you'll need to secure a higher loan-to-value mortgage. Buy-to-let mortgages are generally available up to 75% of a property's open market value, as long as the rental yield is high enough: most lenders require the monthly rental income to be at least 125% of the monthly mortgage payment.

While gross rental yields are the ones you'll see widely advertised, the net yield is the only number that matters and may be significantly lower. Be sure to factor in all the ongoing costs like insurance, service charges, maintenance and management fees.

With deeper pockets, your options are wider. Capital growth tends to come from more expensive locations and more luxurious homes, where sales prices are higher but rental yields are lower. You could well need to fund 50% of the purchase price yourself to satisfy the income-mortgage payment ratio of lenders, but you'll also find loans at lower interest rates.

SET YOUR PRIORITIES

In the most simplistic terms, capital growth concentrates on investment, while yield focuses on income. The two can become blurred when you adopt a dual strategy, and it's not as cut and dried as that for every landlord, but it's a place to start.

Why choose capital growth?

Let's look at the landlords whose portfolios we manage. Those interested primarily in capital growth operate on a 'buy and hold' basis, intending to keep a property for at least five years, possibly ten and maybe even indefinitely.

You might call it a set-it-and-forget-it approach: a bit like a long-term savings account but with a far better return. Capital growth strategies often underpin longer-term plans like supporting children onto the property ladder or building financial security for retirement.

As the value of the property increases, you can release the built-up equity to fund the deposits on further buy-to-let purchases without using your own money.

Why choose rental yield?

Landlords who prioritise yield tend to be less fixed around how long they keep a home. They stay open to opportunities and may be open to selling if we had a potential buyer who we thought would be perfect. When kitchens, bathrooms and heating need replacing, a landlord might prefer to take their money out and buy a more up-to-date property instead of having a vacant period while they carry out renovation works.

Yield strategies produce an immediate income stream that can supplement an existing salary, or be the catalyst for switching careers altogether, perhaps to become a full-time landlord. In short, they can facilitate an immediate lifestyle change.

Concentrating on lower-value homes makes entry to the market more accessible and is how many landlords get started before switching to a capital growth strategy later on.

A CAPITAL GROWTH STRATEGY

The most prudent and reliable course is to go where the money is. Look for central and prime locations with a high concentration of high-earning professionals, often from the corporate worlds like banking, insurance, medicine and law, as well as the tech and creative industries.

Tenants at the top end of the rental market respond to high-quality property that reflects their aspirations, along with a lifestyle that reflects their spending power. They seek homes with an emphasis on contemporary design and luxury specifications, with a premium retail, restaurant and cultural offering nearby.

The catchment areas of high-performing schools are also excellent targets as there are usually more hopeful parents looking for homes than there are properties for sale. However, you'll face fierce competition from local families, which may send the price higher than you're willing to go.

If you can find a fixer-upper in a prime location, you'll benefit from an instant uplift in the sales value and may even be able to increase the level of accommodation. There's a reason for the adage of "always buy the worst house on the street", but you won't be the only person trying.

A RENTAL YIELD STRATEGY

Less central or prime locations have lower property prices, but they will attract good-quality tenants when they offer easy connectivity and an enjoyable lifestyle.

Perhaps the best way to describe properties that fit a yield strategy is regular homes for regular people: think classic Victorian, Edwardian and 1930s houses or conversions, along with purpose-built apartments from the 1960s until now. The closer to a high street the better, particularly one with a choice of coffee places, pubs and good local shops.

To give yourself the best chance of moving tenants in swiftly after completion, look for homes with minimal works required to have them ready for occupation.

Remember that just because a property is cheaper to buy doesn't mean it's cheaper to own and maintain. Older homes are consistently popular because of their character, but they require looking after, so check around thoroughly for the prospect of upcoming surprises.

A DUAL STRATEGY

Finding a formula that will deliver strong capital growth along with a strong rental yield is the holy grail of being a landlord. With a bit of research, it's entirely possible to buy low, rent high and watch the value of your property increase.

Look for locations where infrastructure improvements or regeneration are on the horizon, but still a few years off. When the local connectivity or lifestyle get earmarked for attention – faster (or new) transport connections; an improved retail and leisure offering; even better places to live – there's usually an opportunity to get in early at subdued prices before they catch up with more developed areas.

Owner-occupiers prefer to buy in areas with established amenities, but tenants are more flexible in where they live when they can get a better home for their budget. This presents an opportunity for investors.

Be sure to balance your decision with a reality check. If you're buying into a large new development, many similar homes may become available simultaneously as different landlords complete their purchases. Choice for tenants means competition for landlords, which usually translates to a downward impact on rents in the short term until the development is fully occupied.

Final words

There are many ways to be a successful landlord, and there's no one-size-fits-all strategy. Talking things through with a letting agent where you're looking to invest will give you a clear picture of the local market so you can make an informed decision about the best approach for you.

We can help you identify the locations in Birmingham that suit capital growth or rental yield strategies, so why not get in touch? Call us on 0121 427 4777 or drop us a line at info@truemanestates.co.uk – we're here to help you build a sustainable portfolio and a solid financial future.

HIRING CONTRACTORS: A LANDLORD’S GUIDE TO FINDING TRADESPEOPLE YOU CAN TRUST

183:783684190 (John Trueman) — Mon, 21 Jun 2021 18:09:26 GMT

Whenever you ask someone if they know a good contractor, you’ll never be far from a tale of woe: the plumber who never turned up; the electrician who bodged the job; the builder who overcharged and left a huge mess.

It’s taken us many years to build a circle of reliable contractors, and we’ve had plenty of upsets along the way. Unfortunately, even the good ones go bad, get too busy, or simply disappear, so we keep our eggs in more than one basket to ensure we have a backup plan.

One thing that makes the life of a managing agent easier is that we look after multiple homes. Our calls take priority because of the amount of work we provide through regular maintenance, compliance checks, general repairs and, of course, the odd emergency.

It can be more challenging to build close relationships with contractors when you’re a landlord with a single rental property or a small portfolio, but with our checklist of tips, you’ll find it easier to spot the ones you can trust.

And if you’d rather someone else did all the legwork, why not ask us to take care of everything for you? Call us on 0121 427 4777 or drop us a line at info@truemanestates.co.uk to see if we’re a match.

BEGIN THE SEARCH NOW

Leaving it until the last minute to start hunting for a contractor is a recipe for anxiety and panic. That emergency or repair will never come at a convenient moment, and you’ll be rushing around against the clock to find someone you trust.

Having time on your side will give you the space to compare hourly rates to get an idea of what’s fair and what’s not. Try and find three of each type of contractor to get an average price and ask them whether they charge by the whole or part hour.

Some firms publish their prices online, but it’s always worth calling for an insight into their customer service and whether they answer the phone or call you back.

By having the numbers of a good plumber, electrician and handyman in your phone now, you’ll be well prepared in advance. Knowing who to call can be a real lifesaver in emergencies when your tenants expect a speedy solution.

ASK FOR RECOMMENDATIONS

You can’t beat a personal recommendation, as long as you can trust the source.

Do your friends, family, or neighbours know anyone reliable? Some might recommend their own friends, so check that they’ve experienced their work first-hand and aren’t just being supportive.

You could also see if any contractors you already know can recommend someone in another field. Perhaps your plumber met an electrician on a renovation project where they worked together.

If your rental property is far from where you live or have connections, it’s going to be more difficult. Your tenants might be willing to knock on your neighbours’ doors or drop notes through, but the onus is ultimately on you to fix the problem.

READ REVIEWS & ACCREDITATIONS

Companies generally only post the best remarks on their website, but review sites or Google can give you a fuller picture. Don’t judge by one bad review – everyone gets the odd one of those. Instead, check if the general story is a positive one.

We all know a friendly local handyman who’s good for replacing a washer in a tap or fixing a loose door handle, but when it comes to jobs involving electrics, gas, plumbing and renovations, you need to be sure your contractor has the correct certifications.

If something goes wrong after you use an unqualified contractor, it’s you who’ll bear the responsibility and consequences, no matter how well-intended your efforts. We cannot stress enough that it’s really worth doing your homework.

RESEARCH RESPONSE TIMES

Every property requires ongoing maintenance, general repairs and safety compliance, so it’s good to know how far in advance you’ll generally need to book. Ask about average arrival times for regular office hours, weekends, and in the middle of the night.

For non-urgent repairs, anything up to 72 hours is acceptable, but you may need to call further ahead for electrical and gas safety checks. As soon as you know the deal, put a note in your calendar a couple of weeks before any certificates expire to ensure you get a slot.

Direct Line Insurance carried out a survey of UK landlords and found that plumbers are the fastest emergency responders, with an average arrival time around 13 hours after an issue is reported. They’re followed by electricians at just under 18 hours, with gas and heating engineers coming in just short of 21 hours.

Many excellent contractors are sole traders, but no matter how wonderful they are, they might be busy when you call, so it’s worth having a couple of numbers. When there’s water coming in or a major electrical fault, the speed of response will be crucial.

SPOT THE ROGUES

It’s a big deal asking a stranger into your property to carry out work and repairs, so look for these tell-tale signs of traders to avoid.

Suspiciously cheap

Good contractors are like gold dust. The best ones know their worth, and their work is worth the cost. Be cautious when someone is unusually cheap compared to other quotes, particularly if you have no firm recommendations to go on.

Cash only

The days of writing cheques and three-day bank transfers are long behind us. Now you can send money from your phone to another bank account in seconds, so there’s not much excuse for only taking cash.

Requesting full payment upfront

It’s normal for contractors to request a deposit to cover their time and any materials they may need to buy in advance, but you shouldn’t have to pay the total cost until the work is complete.

Flaky behaviour

Non-committal language, vagueness over price and failing to turn up at the agreed time are not the signs of a good contractor. If you get a bad feeling, go with your gut. There’s always another option.

FINAL WORDS

Building a trusted circle of contractors is no easy task: it takes time, and it takes work, but the peace of mind is priceless.

Of course, having a managing agent removes all of this work to give you a truly passive income. You’ll never have to deal with maintenance, compliance or repairs, and you’ll never get a call in the middle of the night. We have an emergency number for tenants to call and our very own little black book of contractors from years of trying, testing and sometimes tears.

If you’re a landlord with a rental property in Harborne, Edgbaston or Selly Oak, why not get in touch to see how we can look after you and your investment? Call us for a chat on 0121 427 4777 or email us at info@truemanestates.co.uk – we’d love to make your life easier.

THE NICHE LANDLORD: PERFECTING A LETTINGS FORMULA FOR REPEATED SUCCESS

183:783684190 (John Trueman) — Mon, 21 Jun 2021 18:06:47 GMT

Specialise or diversify? That's a big question for many landlords when it comes to expanding their portfolios, and if you look around Google long enough, you'll find arguments for both.

You don't have to have a niche. You could choose a wide spread of property types across multiple locations, but you'll undoubtedly become more knowledgeable with some sort of specialty, and you'll find it easier to manage your portfolio.

Of course, every property will give you a yield, whether it's flats over shops, ex-local authority homes, swish new developments or classic traditional houses. There's a demand for all of them, and we're never going to run out of families, professional couples, sharers or single people to live in them. However, there's definitely an edge in picking and perfecting your market.

Many of our landlords choose to specialise in a particular location and type of property because it makes their lives easier. By developing an expertise in their chosen marketplace, they know exactly what attracts the tenants they want, which gives them an enjoyable and profitable business.

You're always welcome to get in touch for some friendly and expert advice anything buy-to-let – call us on 0121 427 4777 or drop us a line at info@truemanestates.co.uk . Meanwhile, read on for the steps to building a niche portfolio and the benefits of having one.

PLAY TO YOUR PASSION

There's nothing like being interested in something to make a good job of it.

You'll find plenty of content and sage advice around not making your buy-to-let business personal, but being a landlord – and, for that matter, being a managing agent – is nothing if not personal. Having a portfolio of homes that makes you proud and where people love to live is no bad thing - in fact, it's an inspiring life.

Without a shadow of a doubt, the property you'll enjoy owning the most is the sort of property you like. Maybe you're familiar with a certain style from having lived in one, or from being an admirer of a particular period or design. Either way, enthusiasm on viewings often leads to seeing the full business potential of a home.

The trick is to avoid getting emotional. You won't be living in the property, so it doesn't need to fit your lifestyle or personal decorative tastes. Still, you can certainly bring personality to your homes to help them stand out from the crowd and attract your perfect tenant.

FINDING YOUR SPECIALTY

Every neighbourhood has more than one marketplace. Think about the stages of life people go through: singles wanting their own space; friends that want to share; couples moving in with each other; families growing up.

It would be a tough call to know about every type of home in every street, so a better place to start is by asking local letting agents about the different sectors of the market. Once you're familiar with activity, demand and supply, you can make an informed decision about what's right for you. Maybe there's an untapped market just waiting for your talents.

Our landlords have different niches based around their own interests, preferences and experiences, as well as the local housing stock. Some put their trust in classic family homes; others favour small apartments and fewer occupants. Capital growth and prime locations can be a goal, as can the higher yields of cheaper streets. Knowing any of these well can give you valuable insight into beginning or expanding your portfolio comfortably and successfully.

DEEPEN YOUR EXPERTISE

For a rental property to be a success, it should reflect what people want and require minimal maintenance and repairs. By knowing your market and creating a durable home that encourages long-term tenancies, you'll keep your income as constant and passive as possible.

These pointers aren’t exhaustive, but as an idea of the differences to consider:

- family households need functional homes to cope with plenty of people and all-day use. That means lots of cupboard space in the kitchen along with a full-size dishwasher, a washing machine with a big load capacity and space for a large fridge/freezer. If you're renovating, keep at least one bathtub to make bath time for children easier – not to mention that a rubber duck is way less fun in a shower cubicle! Gardens with a lawn provide a safe play area.

- couples and singles create less wear, come with less stuff and still have the luxury of being style-conscious. They love sociable spaces where the kitchen is open to the living room, making quieter appliances a smart choice. If you're renovating the bathroom, replacing the tub with a walk-in shower will create that all-important showstopping moment. Outside, low maintenance patios and balconies are generally preferred.

BUILD A REPUTATION

Being known as a local landlord of popular rental properties helps you secure the best tenants at the best rents. When your letting agent can gush about your homes, it gives tenants a great deal of comfort to feel they'll be living somewhere that's expertly owned and managed.

Having a solid reputation also adds credibility to your offers when you're looking to expand your portfolio. Citing your existing successful properties will show that you're a professional landlord with a proven track record who can proceed without a hitch.

The same goes for when multiple offers are competing against yours. Sellers – and sometimes agents – can find it difficult to be entirely sure which buyer is the best one, but a chain-free and well-regarded local landlord is a sound proposition that can add a sense of much-valued security to a sale.

EXPAND WITH EASE

Suppose you're achieving a healthy rental income from one property in a neighbourhood. It's a safe bet that a similar home nearby will be just as profitable, so you can double down on your success to pick another winner.

Concentrating your portfolio provides a real focus for your business and makes it easier to identify a good prospect quickly. On the other hand, spreading your rental homes across several different towns or cities means you'll need to research every location. It can also be time-consuming to look after them all – you'll either need to find reliable contractors in each area, or multiple managing agents.

You'll also find new opportunities come to you when you're known as a reliable local landlord. When agents know your speciality, it makes it easier for them to help you expand your portfolio, and you'll be among the first people they think of when a candidate property comes up. This can be particularly useful where another landlord is selling and wants to find a buyer off-market.

Final words

Being a specialist is revered in almost every profession and makes it easier to excel in any given field. Well, you can apply the exact same logic to being a landlord. With a deep understanding of your chosen marketplace, you can make confident decisions much faster and attract more property to grow your buy-to-let business.

If you're looking to begin or expand your rental portfolio in Harborne, Edgbaston or Selly Oak, why not get in touch for some expert neighbourhood insight? Call us on 0121 427 4777 or email us at info@truemanestates.co.uk – we love nothing more than helping landlords create popular and profitable homes.

SOLD WITH TENANTS: YOUR LANDLORD CHECKLIST FOR BUYING A TENANTED PROPERTY

183:783684190 (John Trueman) — Mon, 21 Jun 2021 18:04:50 GMT

As a fast and chain-free way to start or add to your lettings portfolio, buying a tenanted property can be an attractive proposition.

Usually, when you buy a property to rent out, you’ll need to have it cleaned, fix any repairs, get it on the market, show people around, take up references and create a tenancy agreement before seeing any income. But that’s all taken care of when the property you buy already has a tenant.

However, you’ll also inherit every outstanding responsibility of the previous landlord, and you need to be sure that the property and tenancy are all they seem. Do the figures stack up? Are you happy with the tenant? Will you be taking on unresolved problems or disputes?

Before you make an offer and start incurring legal fees, use our checklist here to ask the right questions and get the story straight. If you’ve already got somewhere in mind and you’re wondering whether it’s a good deal, call us on 0121 427 4777 or drop us a line at info@truemanestates.co.uk for a confidential chat – we’ll help you decide if a property is right for you.

RESEARCH FUNDING OPTIONS

Even if you’re considering buying with cash, it’s worth checking to see if your money can perform better elsewhere, particularly with low interest rates for borrowing.

You’ll find plenty of lenders with buy-to-let products, but mortgages for rental homes are not the same as residential loans. They tend to come with additional fees, and some lenders won’t lend on certain types of property, so speak to a financial adviser with experience in the lettings market to find the mortgage that’s right for you and the property.

Lenders typically require the rental income to be at least 125% of the monthly mortgage payments on a buy-to-let loan, and they usually calculate the loan based on the rental value at the time rather than the rent being paid.

You almost certainly won’t get a mortgage on a home with a sitting tenant because lenders see those as far too risky. If you want to borrow for that sort of purchase, you’ll need to remortgage another property.

CRUNCH THE NUMBERS

Doing a bit of homework around the suitability and sustainability of a potential rental investment will help you make a confident and savvy purchase.

Check current rents and demand

Talk to local letting agents about rental prices, ongoing demand, the reputation of the area and the types of people who want to live there. You need to know that you’re buying in a location where homes are easy to rent, particularly if you’re unfamiliar with the neighbourhood.

See it for yourself

It might sound blindingly obvious, but it’s essential to visit the property you’re buying, even if it’s purely for investment. Mortgage valuations don’t include testing the heating, hot water or appliances, so you need to know whether everything is working correctly or if repairs, replacements and bills are on the horizon.

Walk around the neighbourhood

Spend some time exploring the area to get a good feel for it. Check for yourself how long it takes to get to the supermarket, station, somewhere for coffee, schools and whatever else a tenant would expect from the type of property you are considering.

TALK TO THE TENANTS

There’s nothing like living in a home to know what it’s like, so ask if you can speak with the tenants direct: this could be in person, over the phone or by email. As well as giving you an idea of their character, you’ll learn about their experience of living in the property and whether they plan to stay.

If the tenants are thinking of leaving, find out why. Perhaps they simply need more space, or they’re moving further away, but if it’s down to issues with the property, you might be able to salvage the tenancy by addressing any concerns.

Good tenants are worth holding onto, so it’s worth discussing whether they’d stay if the property was better cared for or more up-to-date. Talk about any repairs or improvements they’d like to see to save losing them unnecessarily. A simple paint job, installing a decent shower, or replacing a dated fridge can make all the difference to someone’s daily life and are benefits your tenants will happily pay extra rent for.

EXPLORE THE HISTORY

As you’ll be taking over a property as the new landlord, you’ll want to know the calibre and performance of the tenants you’re getting.

Request a schedule of rent payments to see if they’ve always been on time. For any that were late, check if there’s a good reason. Anyone can hit a bump in the road now and then, but it’s good to know if it’s a one-off or a regular thing.

Ask the current landlord or their managing agent for written details of any maintenance issues during the tenancy and whether all repairs are complete. For any that are still pending, find out whether they’ll be finished before you complete, or if you can negotiate the cost of them off the price you agree.

As a final bit of research, ask if the tenants report problems promptly and politely, and whether they are responsible and reliable renters. Ultimately, is the property in good hands with them living there?

CHECK THE PAPERWORK

While everything will be revealed in the conveyancing process, we recommend getting as much information as possible before instructing a solicitor to proceed.

Review the tenancy agreement for the terms of the rental. Standard contracts usually follow a form, but it’s always worth reading the small print. Check that an inventory was created and signed at check-in, and whether a security deposit was taken and where it’s held.

Tenants aren’t obliged to sign new agreements or inventories when the property they live in changes ownership, so it’s important to know how accurate and comprehensive the paperwork is at an early stage.

Finally, ask to see copies of valid gas, electricity and fire safety certificates to ensure that everything is up to date and complies with current regulations. Do the same for any furniture that’s included to see if you need to replace any items.

What’s your next step?

If you’re thinking about buying a tenanted property in Harborne, Edgbaston or Selly Oak, or you’ve recently bought one and you’re looking for a managing agent, why not get in touch? Speak to our friendly team of experts on 0121 427 4777 or email us at info@truemanestates.co.uk – we’re here to help you make the most of being a landlord.

ACCIDENTAL LANDLORD? ALL YOU NEED TO KNOW TO MAKE IT A SUCCESS

183:783684190 (John Trueman) — Mon, 21 Jun 2021 18:01:14 GMT

Not everyone sets out to be a landlord, and becoming an accidental one is more common than you might think.

An accidental landlord is someone who becomes a landlord by circumstance rather than by plan, and it can happen for several reasons. You could be relocating for work, moving in with your partner, or having trouble finding a buyer for your current home. Or you might have inherited a property.

Being a landlord can provide you with an unexpected passive income stream, but there’s a lot to know before you get started. Lettings legislation is complex, forever changing and comes with plenty of responsibility, so it pays to be informed to make your transition from property owner to landlord as smooth as possible.

We’re here to help you get started, so call us on 0121 427 4777 or drop us a line at info@truemanestates.co.uk , or simply read on for an introduction to becoming an accidental landlord.

FINDING & MANAGING TENANTS

Generally speaking, landlords divide into two camps: those who choose to self-manage once a letting agent has found them a tenant, and those who ask a managing agent to take care of everything.

The question ultimately comes down to whether you wish to be an active landlord, or one with a passive income. To help you decide which option is right for you, here’s a quick rundown of what’s involved.

Finding a tenant entails advertising your property, vetting enquiries for their suitability, attending viewings, negotiating offers and referencing prospective candidates. Creating a tenancy means getting your property professionally cleaned, preparing a tenancy agreement, collecting the first month’s rent and security deposit, drawing up a detailed inventory and then meeting the tenants to sign off on the paperwork and hand over the keys.

Ongoing management includes: organising gas and electrical safety checks; dealing with maintenance, repairs and emergencies; carrying out inspections during the tenancy; staying on top of lettings legislation; ensuring payment of rent; handling any issues that may arise with your tenants or their neighbours; meeting the tenants to collect the keys when they move out, and finally checking your property against the inventory to agree on any deductions from the security deposit.

If you live near your rental property and have the time and inclination to deal with all of the above, being a self-managing landlord could be for you. If you live further away, or you’re busy enough already, it could prove impractical to manage everything yourself.

PREPARING YOUR PROPERTY

As a legal requirement, you’ll need to comply with gas, electricity, and fire safety regulations by obtaining certificates and installing smoke alarms. But a successful rental property is also one that’s easy and enjoyable to live in.

If you’ve lived in your home for a long time, you’re probably used to its quirks, and you might not have remedied minor repairs. We’re all busy, and it’s easy to forget non-urgent tasks with a thousand other things to do.

For an inherited property, you may need to bring it up-to-date with modern standards and expectations. And if you’ve never lived there, you’re less likely to be fully aware of ongoing problems, overdue maintenance or outstanding repairs.

When a tenant moves in, they’ll experience all that’s good and all that’s bad in a very short space of time. This might prove overwhelming and upsetting for them while giving you a long and urgent to-do list.

Little things like leaky taps, wobbly handles, cupboards and doors that don’t close, or anything that requires a knack to function will almost certainly come back to haunt you. Fix them now to avoid them becoming a source of unnecessary friction.

For larger expenses like upgrading fittings and appliances, talk to us first. We’ll help you budget correctly and optimise your rental income by creating exactly the sort of home that tenants want to rent.

MORTGAGES AND TAX

Lending policies vary widely.

If you have a mortgage on your existing home, you’ll need to inform your lender that you intend to rent it out. Depending on the terms and conditions of your loan, you may be allowed to stay on the same arrangement, or they may switch you to a more expensive buy-to-let rate.

Before you commit to anything, explore other lenders to see whether you can remortgage with them on more flexible terms.

Talk to a financial adviser with experience in residential and buy-to-let mortgages to understand every option open to you. Rates and products are changing all the time, and you may even find a more competitive deal than your current one.

The rent you receive from your property is taxable, but there are various costs you can claim back. In general, maintenance, repairs and management are allowable expenses, but improvements are not.

As an example: if the oven breaks down and you need to replace it, you can take the cost off your income, but if you decide to upgrade the kitchen, that’s not an allowable expense. That said, you’ll undoubtedly increase the rent you achieve by keeping your property up to scratch and ahead of the competition.

INSURANCE & INVENTORIES

Most rentals are unfurnished. That’s partly down to the strict rules around fire safety and furniture, and also because tenancies are getting longer: tenants want to be surrounded by their own belongings to feel completely at home.

Yet even an unfurnished property has plenty inside that needs to be insured: kitchen cupboards & appliances; bathroom fittings; a heating system; floor coverings; electrical sockets & switches; maybe some light fittings, curtains or blinds. So, alongside your regular Building Insurance policy, you should take out Landlord Contents Insurance to provide you with sufficient cover in the event of damage.

An inventory is another essential component and can protect you and your tenants from unnecessary misunderstandings. The lack of one is why many landlords lose deposit disputes, because they need to prove loss or neglect to make a valid claim.

Preparing an inventory yourself can leave you vulnerable to dispute as it might be seen as subjective. You’re much better off instructing an experienced and independent third party to provide a comprehensive written and photographic account of your property’s fittings and condition.

STAYING WITHIN THE LAW

Depending on your mindset, landlord legislation is either a fascinating and forever-changing landscape that thrills at every turn, or a minefield of obstacles and paperwork that sends you running for the hills.

Whatever your view, it’s your responsibility as a landlord to ensure that your property complies with all current regulations around gas, electrical and fire safety, as well as habitation. It’s a non-negotiable requirement, and ignorance is not a defence. Fines can be heavy, so don’t leave anything to chance.

If you intend to be a self-managing landlord, the best way to stay fully informed about your responsibilities is either through online landlord forums or by regularly checking the government’s website for updates to the law. When you use a managing agent, you effectively shift the accountability for knowing the law to them: an attractive option when legislation isn’t your favourite read!

In summary

Becoming an accidental landlord can provide you with an income-producing asset for many years and into retirement. By preparing your home correctly, staying on top of maintenance, attending swiftly to repairs, and keeping abreast of legislation, you’ll lay the groundwork for a run of successful tenancies.

Do you have any questions about renting out your existing home or an inherited property in Harborne, Edgbaston or Selly Oak? We’ve helped many people step into landlord life with minimal fuss and who now enjoy an extra income stream with many positive impacts on their lifestyle.

We’d love to do the same for you, so call us on 0121 427 4777 or email us at info@truemanestates.co.uk . With our expert guidance and professional hand-holding, you can start life as a landlord with confidence.

LETTING AGENTS: HOW TO PICK THE BEST ONE

183:783684190 (John Trueman) — Mon, 21 Jun 2021 17:55:46 GMT

Whether you've been a landlord for years or you're just starting out, finding a letting agent you can trust and build a long-lasting relationship with is a big deal.

Renting out your property is about so much more than just money and business. As well as wanting an agent who can find you the perfect tenant, you're sure to have feelings around confidence, connection and communication. None of these are financial concerns, but our experience tells us how prized they are by all of our landlord clients.

Letting agents will be competing for your business left, right, and centre, so how do you begin the selection process? Having a list of standards is a good place to start, and these five factors will help you narrow down the field and choose the best letting agent for you.

LOCATION, LOCATION, LOCATION

It might sound really obvious, but choosing an agent close to your rental property makes sound business sense.

Letting agents who live and breathe an area are the best equipped to rent your property quickly, and for many reasons:

- they'll always be nearby for viewings, which for lettings can be last minute.
- they'll have a list of potential tenants looking for a property just like yours.
- they'll know exactly what rents are achievable to keep your income flowing.
- they'll know all about transport links as well as the best places to eat, drink & shop.
- they'll have a pool of local contractors who can help with presentation and repairs.

Ask about the size of the area your agent covers. Are they truly local experts, or are they spreading themselves too thin? Nobody can be in two places at once, and a random smattering of properties that are a long way from each other could mean travelling long distances between appointments. This cuts down on the number of viewings an agent can attend and dilutes their local expertise and profile.

PRETEND TO BE A TENANT

There's no better way of finding out what a company is really like than by posing as a customer. As a landlord and possible client, letting agents will be going all-out to impress you, but you also need to know how they talk to potential tenants.

Take a look at an agent's website and find a property to enquire about, then prepare a few questions that aren't covered in the description to test their knowledge and customer service. You're not looking to be awkward or to catch them out; you're simply doing some fact-finding around the experience of dealing with them. If you don't feel comfortable making the call yourself, ask a friend to do it for you.

Your questions should be easy to answer without someone needing to call you back. Try asking what parking is like on the street, how much passing traffic there is, or how noisy the neighbourhood is at night. You can't find those answers on Google maps, and a good letting agent will know their stuff.

Look for how long it takes the agent to answer the phone, then for how polite, professional and interested they are. Do they have an obvious knowledge of the property you've enquired about? Do they invite you to view or ask about the type of home you're looking to rent? And how does your experience leave you feeling – like you've made a new friend, or like an interruption to someone's day?

PROMOTION & PERFORMANCE

To be sure of reaching the best selection of tenants, your property needs to be on at least one of the national portals, so ask about an agent's choice of channel and why they made that decision. Agents have varying results with different portals, so one isn't necessarily right over another. What matters most is that whichever portal your agent has chosen will get you the right result.

Now take a look at how they describe the homes they rent. Are their descriptions enthusiastic and informative? Lettings can be fast-moving, so they don't need to be War & Peace – or even Harry Potter & The Sorcerer's Stone – but they should at least be clear and helpful, and they should make you want to view.

Finally, ask your agent about their results. What's the average time it takes them to find a tenant? Do homes like yours rent quicker or faster than others? Can they show you examples of successful recent lettings?

Be wary of false promises. Look for answers that are believable and realistic.

COMMUNICATION & CARE

Something we often hear from our landlords is how much they feel they matter to us. You can't put a price on sentiment like that, and you deserve the same.

When you're speaking to agents, ask for details of their service standards to ensure that whatever they are offering is compatible with what you need.

What's their system for giving you feedback after viewings? Not every property goes in its first week on the market, and you'll want constructive advice and unfiltered commentary to know what action to take.

Will you have a specific point of contact for when you want to get in touch? Ask them how and when they'll keep you up-to-date.

Happy landlords are our number one priority, and we make sure they feel valued and remembered.

TRUST YOUR INSTINCTS

Every letting agent you meet could say all the right things and impress you with their knowledge and results, so which one do you choose?

We could list countless more points and essential tips on what to look for in a letting agent, but one thing you should never overlook is how it feels when you're talking to them.

Using a letting agent is a long-term relationship. As well as finding one who measures up to everything we've set out here, you should enjoy speaking to the person who'll be looking after you and your investment—someone who gives you the comforting sense that you're in safe hands.

Of course, we hope you find that in us. The best way to feel completely comfortable is to get every question and concern answered, so ask us anything you want to feel 100% sure.

In summary

Choosing the best letting agent for you combines practical concerns around a company's location, customer service and results, along with the personal qualities of the agent you meet and talk to. Ultimately you want to feel that you've added a valuable addition to your buy-to-let business.

If you're a landlord and you're looking for a letting agent in Harborne, Edgbaston or Selly Oak, we'd love to have a chat about working with you. Alternatively, you could secret shop us first and test us on one of our homes! We're sure we'll pass with distinction, so call us on 0121 427 4777 or email us at info@truemanestates.co.uk to experience our service first-hand.

RENTAL UPGRADES: FIVE IMPROVEMENTS TO INCREASE YOUR INCOME

183:783684190 (John Trueman) — Mon, 21 Jun 2021 17:15:56 GMT

The rental market has grown up. Tenancies are running for longer, and with stays of four or more years increasingly common, tenants have higher expectations around the place they're willing to call home.

This spells good news for landlords because those higher expectations come with a willingness to pay a higher rent. More than that, the right improvements will also increase the value of your property, giving you precious equity to finance and expand your portfolio.

But which improvements make the most difference?

There's a fine balance to strike between spending too little, spending too much, and spending where it counts. The key is to create a contemporary and timeless home that's durable and popular to give you wide and long-lasting appeal with minimal maintenance and repairs.

When we’re out on viewings, we see exactly what attracts people and excites them about their next home, and there's no doubt that investing in presentation is rewarded in the quality of tenant and the rent achieved. If you're considering making upgrades to your rental property, call us for a chat on 0121 427 4777 or email us at info@truemanestates.co.uk for some expert advice on getting it right.

But for now, let's take a look at the improvements that will increase your income, attract high quality tenants and protect the value of your property.

PAINT

From the second the front door opens, the condition of the walls will be staring your viewers in the face, creating their first and immediate impression of your property.

Scuffed walls look dingy and, despite being entirely cosmetic, have a deeply negative impact on viewings. On the other hand, a fresh coat of paint works wonders in any room and elevates everything around it, making it remarkably good value.

Although brilliant white is undeniably bright and a great reflector of light, some tenants find it a bit cold. It's also a magnet for marks! Choose an off-white, soft grey or other classic neutral to give the walls a welcoming hue, with matt white on the ceilings, and white satin or eggshell for the woodwork.

KITCHENS

You’ll be pleased to know that not every kitchen upgrade means ripping out the old one and starting again. You can replace doors, handles, splashbacks or worktops for an instant improvement, so look carefully at whether the whole thing really needs to go.

Whether you’re choosing a total refit or replacing selected elements, follow these rules for an enduring, impressive and low-maintenance kitchen:

- flat-fronted drawers and doors have sleek clean lines and are the easiest to maintain, with white and grey always in vogue and simple to accessorise;

- brushed steel handles are modern classics and will complement any style and colour you choose;

- metro tiles for splashbacks are eternally stylish and can add a burst of colour or a contrasting shade;

- worktops in composite stone or high-quality laminate look smart and are low maintenance, while quartz and granite add a luxurious finish if you want to go higher end. Solid wood tops look great but they need looking after, and the regular oiling and extra work required can make them less practical or appealing.

The presence and quality of appliances attracts more scrutiny than it used to: a dishwasher is no longer seen as a luxury item; an old-fashioned electric hot plate makes cooking seem like a chore; and a washing machine with a small load capacity means continual washday blues.

Investing in well-respected and reliable mid-range brands like Bosch, AEG and Neff is a visible demonstration of your commitment to quality: they make living in your property more enjoyable and tenants love them. You’ll also have long-lasting appliances that need less maintenance and ongoing expenditure, which means less hassle all round.

FLOORS

Floors take a real battering. Everyone walks all over them; furniture sits and moves about on them; bags, suitcases, bikes, strollers and pets all take their toll.

While carpets are soft to walk on, they can become worn and accumulate lines of dust at the bottom of doors, or imprints from previous furniture. Cheap laminate can look good when it’s fitted, but often peels at the edges, lifts at the joins and chips very easily. All this can leave your property looking unkempt and uninviting, negatively impacting your rent.

Engineered wood floors in living areas, halls and bedrooms look smart, are hard-wearing and can make your property look bigger when laid throughout. With a top surface of real wood, they’re a more authentic and luxurious alternative to laminate, but don't come with the price tag of solid planks or parquet. They also last longer and can be sanded down when the surface becomes worn, giving you many years of service.

Medium oak is a classic, safe choice that will go with most people's furniture: it looks great with pretty much anything and your tenants can accessorise with their own choice of rug for some underfoot comfort. If your property is particularly bright, you could add some drama with a darker wood like walnut. Pale woods like birch and maple reflect the light, but they can be more susceptible to marks as well as showing dirt and dust in the joins.

BATHROOMS

Tenants regularly ask us if they can test the water pressure on viewings, so a powerful thermostatic shower is a priority - dribbling hoses with fluctuating temperatures no longer cut it. People want an invigorating shower experience to start their day, so put them in a good mood every morning, rather than looking for a new place to live.

If your bathroom needs replacing, a plain white modern suite, warmed by grey floor and wall tiles, will provide a timeless contemporary style with universal appeal. Don't skimp on the taps - you'll soon be replacing parts if you go for the cheapest option, and the costs of repairs will eliminate your initial savings. Choose metal finishes like chrome, brushed steel and nickel: they never go out of style and they’re easier to maintain than taps with coloured lacquers.

Storage is vital to avoid an ocean of products piling up, gathering dust and making life difficult. The ideal solution is a vanity unit with a cupboard or drawers below the washbasin, and a mirrored cabinet above.

GARDENS

A modern, inviting and low-maintenance outdoor space is a definite winner, even more so since Covid-19 made getting outside feel like a privilege.

You don't need to recreate the Chelsea Flower Show: in fact, keeping it simple and manageable will win you fans without presenting an overwhelming display of pruning duties. No matter how much they enjoy being outdoors, not every tenant is an expert gardener.

A patio or deck with a paved or timber surface provides a year-round usable space that’s easy to keep clean and looks way better than raw cement. Paired with exterior lighting, you’re effectively giving your tenants another room, day and night, for which they'll happily pay.

Add a few pots planted with spring and summer perennials that bloom again every year, and your tenants will have a colourful, seasonal space where they only need to add water (and much of that is taken care of by our national climate!)

In summary

With proper execution, making improvements to your rental property will increase your income, attract higher quality tenants, reduce void periods and future-proof your property's value. There's no one-size-fits-all amount when it comes to budget, but we're here to help you invest in the things that really matter.

Are you a landlord with a property to rent in Harborne, Edgbaston or Selly Oak? If you'd like to increase your income while keeping your costs under control, why not get in touch? Call us on 0121 427 4777 or email us at info@truemanestates.co.uk - we'll help you set the right budget and do the right thing to attract the best tenant and rent.

RENT ARREARS: FINDING A BALANCE BETWEEN COMPASSION AND COLLECTION

183:783684190 (John Trueman) — Tue, 30 Mar 2021 16:38:09 GMT

Although rent arrears have been a hot topic during the pandemic, it’s far from being a new subject. That said, if the discussion has taught us anything in the last year, it’s that anyone can be affected by economic events: no-one is immune, however high their income.

Most tenancies run their course without arrears building up, but that means landlords and tenants have little experience to draw on when payments fall behind. Regardless of how and why they happen, arrears can be a source of friction and provoke all sorts of feelings and emotions around the possible repercussions.

For a self-managing landlord, it's vital to keep a level head when discussing arrears with your tenants. That might be challenging when their financial circumstances impact your own, but it's essential to avoid communication breaking down.

If you're unsure of how to approach any rent arrears at your rental property, you're welcome to get in touch. Part of a managing agent's role is to keep things polite and professional before they get too personal, which makes us well versed in acting as a cushion between emotions. So if you'd like some words of wisdom, or you'd like someone to handle things on your behalf, call us on 0121 427 4777 or email us at info@truemanestates.co.uk .

Money can be a touchy subject, but as you'll discover in this week's article, there are many ways to keep the conversation going without sinking into acrimony or legal proceedings.

GET THE FULL STORY

You'd be right in feeling you shouldn't have to chase your tenants about their arrears, but your tenants could well be terrified of contacting you. They might feel poorly equipped for an unpleasant or difficult discussion, and they may even be hugely embarrassed.

The key is to make it clear that you acknowledge whatever predicament your tenants find themselves in and that you'd like to properly understand what's happening in their lives to find the most practical solution.

Feeling listened to will allow your tenants to open up and be completely straight with you while concentrating on the facts, and getting a clear and detailed picture will help you keep a calmer disposition.

FIND QUICK FIXES

Your tenants may have simply hit a temporary glitch, so the first question to ask is: what can they pay right now? By exploring options beyond all-or-nothing, you could agree on a short period of reduced rent, with the arrears spread across future payments over a set number of months.

You could also help your tenants to identify potential savings in their other outgoings to use towards their rent. Just as lenders ask borrowers to write down all their monthly expenses, you can invite your tenants to do the same. Having it all laid out in front of them may open their eyes to ways of reducing their costs.

Daily habits and direct debits can mount up without us realising. It's not hard to clock up hundreds of pounds per month on coffees to go, club memberships or entertainment subscriptions: pressing pause for a while could help your tenants make a swift and significant dent in their arrears.

If they have other debts attracting interest, would they be better off by transferring their balance to a 0% card? Not everyone keeps on top of current rates, and the combination of reduced payments and savings on interest could put your tenants in a better financial position, freeing up money to catch up on their rent.

BORROWING & BENEFITS

If you have a longstanding relationship and your tenants have been exemplary until now, you may well want to keep them, which is as good a motivator as any for helping them to find a solution.

Could they borrow from a family member or friend to clear their arrears? Coming from an understanding source, it will almost certainly be the cheapest option and probably the most flexible.

If your tenants still have an income and they're not heavily in debt, a personal loan from a bank might provide an appropriate answer, particularly with low interest rates. Unlike landlords, lenders are designed for borrowers to split their payments into small amounts over many years, and the cushion of an extended repayment period could allow your tenants to catch up on their rent immediately without having to find all the money upfront.

If the situation is more drastic and your tenants have lost their income, point them in the direction of the Citizens Advice Bureau. They should be actively encouraged to find out whether they are entitled to any support and when it will be available to them.

CONTACT GUARANTORS

If a guarantor was named on the tenancy agreement, you can approach them for payment.

You're entitled to write to the guarantor as soon as the rent falls behind, but most tenants would prefer to find a solution directly with their landlord if at all possible, and they'll appreciate your attempts at working something out with them first. That's because guarantors are very often parents, and tenants can experience a level of embarrassment in feeling they still need to be rescued by mum and dad.

Nonetheless, the whole reason for having a guarantor is to provide a safeguard in the event of your tenants not being able to pay their rent. Involving the guarantor will open up another path to clearing the arrears and having the rent paid on time until your tenants' financial position improves.

LET YOUR TENANT GO

Most tenants don't voluntarily choose to stop paying their rent. They could be suffering severe financial hardship from whatever circumstances they find themselves in, and their rental contract might be adding to the problem. Sometimes, something has to give.

With or without eviction bans, you could simply let your tenants move out to save them accruing any more arrears. If they have family or friends they can stay with, the money they save on bills and rent will allow them to repay you faster and could solve three problems in one:

you prevent the arrears building up any further;

you provide a route for your tenants to repay what they owe;

you get to find a new tenant, so your rental property can produce income again.

The exact wording and requirements of tenancy agreements are there to hold everyone to their responsibilities, but there are occasions when letting go can provide a more practical answer.

In summary

There's no doubt that dealing with rent arrears can be a challenge. While it might be little financial comfort, you can be sure your tenants will be just as uncomfortable having so much uncertainty hanging over their lives as well.

Peace of mind comes from staying on top of problems when they arise, rather than letting them fester. Some self-managing landlords cope with that perfectly well and have enough knowledge and confidence to be unphased by difficult discussions with tenants. Others prefer a quieter life, opting for a managing agent’s experience and capacity to act on their behalf.

Either option is fine, but if you'd like to explore having your rental property looked after for you, or you've got any questions about being a landlord, you're welcome to get in touch. Call us for a chat on 0121 427 4777 or email us at info@truemanestates.co.uk - we're here to make your life easy.

PROOF POSITIVE: 5 SIMPLE SECRETS TO MAKE YOUR INVENTORY WATERTIGHT

183:783684190 (John Trueman) — Mon, 15 Mar 2021 19:52:16 GMT

Not every inventory ends up providing the protection that landlords expect. There are plenty of cases where the language used – and the style adopted – have caused more confusion and doubt over disputes, which for a landlord will generally mean a reduced or refused claim.

Inventories are essential to have complete clarity over the condition and contents of your rental property: without correct preparation, you'll not only risk a costly dispute, but you'll also sow the seeds of worry in your tenants. The more documentation you have that you can agree on from the outset, the more professional you'll look as a landlord and the more comfortable your tenants will feel.

Whether you're preparing a paper or digital inventory, you must ensure it’s signed off by you (or your managing agent) and your tenants. But as you'll discover below, there's more to it than that.

If you own a rental property in Harborne, Edgbaston or Selly Oak and you'd like to know more about best practice when preparing inventories, do get in touch. Call us for a chat on 0121 427 4777 or email us at info@truemanestates.co.uk - you'll always find an expert ear happy to guide you.

Meanwhile, let's take a look at how you can make your inventory the best it can be to give you, your property and your tenants maximum protection.

BEYOND BOX-TICKING

Some landlords still rely on checklist-style inventories, which simply aren't enough to reflect the contents of a property accurately. More than that, they're completely useless when it comes to being clear about the condition of every fixture, fitting and, where supplied, furnishing.

We can’t stress enough that inventories are so much more than box-ticking exercises, and a correctly prepared report can easily run to 30+ pages - more if your property is furnished. There's a lot of time involved in writing down every last detail, but even if you have complete confidence and trust in your tenants, it's in both your best interests to go deep. So if your inventory is just a few pages long, it's unlikely to be of any use in a dispute.

That's why an inventory clerk is so invaluable. Not only do they save you the time and hassle of detailing every last thing yourself, but they’re also a third party with no emotional or financial attachment to the property. They're guided only by what they see, and their expertise and independence give their inventories an extra layer of credibility, priceless if you end up in arbitration or the courts.

Remember: it's your responsibility as a landlord to prove that any damages or repair costs are down to your tenants.

MIND YOUR LANGUAGE

Problems with disputes can often come down to the language used in the inventory. It’s not because they're written in French or Norwegian, but because they use emotive and subjective words.

One example is the word lovely, which, in property terms, is best confined to an estate agent's description of a charming location. It really shouldn't form part of how you describe the contents or condition of anything in your property.

Stick to words commonly used when grading an object’s condition: new, perfect, excellent, very good, good. Hopefully, you'll have no cause to use below average, poor or unusable, but if you do, you're best off fixing anything in that category for the sake of starting your tenancy on the right foot.

Emotive language may well come from your pride in your property and generally appears when self-managing landlords write their own inventory. It's completely understandable, but it's no help to you in the event of a dispute. Keep it neutral and objective.

THE DEVIL'S IN THE DETAIL

Inventories aren't just about listing objects; they're about giving an accurate picture of your property’s condition and presentation when you hand over the keys to your tenants. So as well as stating everything that's there, you also need to say what isn't.

Minor scuffs that don't yet warrant any remedial works should be mentioned along with exactly where they are on a wall or paintwork. The same goes for marks on a carpet or floor that aren't serious but are nonetheless visible: be very clear about exactly where they are. And when it comes to stains, whether relatively unobtrusive or relatively obvious, make sure to measure them as well as mention them, and to state their exact location.

Now let's look at things that aren't there. Accidents happen, and a couple of more common mishaps are irons on floors and saucepans on worktops. So it's really worth mentioning that there are no burn marks: not just to state the truth, but to plant the seed in the minds of your tenants to be mindful of where they leave hot objects.

Where bathrooms and kitchens are free of mould and limescale, be sure to mention that too. Again, it's a clear statement that everything is looking good and provides a gentle reminder for your tenants to keep their eyes peeled.

By being ultra-specific and going into detail, you minimise the potential for uncertainty in the future.

PHOTOGRAPH EVERYTHING

You can never have too many pictures.

One of the biggest mistakes landlords make is taking a single photograph of each room, often because they see nothing to mention on the inventory—a quick note that everything's fine, and then onto the next room.

How can you take a photo of a scuff mark that isn't there, or damage that doesn't exist, or a breakage that hasn’t occurred? Well, you can't, but you can take photos to show that all those things are in perfect condition. It's not enough to say it; you need to show it.

As well as photographs, videos are easier than ever to take from your phone. Wander around your property and get close-ups of everything: switches, sockets, hinges, handles, walls, skirting boards, bathroom fittings, kitchen cupboards and appliances, heating systems, floor coverings, window frames, gardens.

Share them with your tenants, agree on their accuracy, and then sign them off together. By showing how responsible you are as a landlord and leaving nothing to chance, you give your tenants certainty of not being charged for anything unfair, and you send a clear message of how they should return your property.

HIDDEN BENEFITS

We generally speak of inventories as a failsafe in disputes, but they also play another role.

Properties need to be regularly maintained, and inventories can act as a flag for any maintenance areas that have gone unnoticed. If you've just bought a previously-occupied property, the previous owner’s belongings could have covered up some marks or damage. Or if you've owned your property for a while, you may simply have missed or gotten used to something.

Here's another advantage of an inventory clerk, whose sole purpose is to visit properties to find flaws. By providing a fair and detailed report, they can also alert you to any areas needing attention. Nobody notices everything, and the clerk will give you an extra pair of extremely beady eyes to help you keep your rental property looking fine without having to go there.

Just because something is broken or damaged at the start of a tenancy doesn't mean it has to stay that way for the duration. Instead of telling your tenants to make do, you'll do wonders for your relationship – and your property's value – by staying on top of repairs.

In summary

You've undoubtedly heard of the phrase prevention is better than cure. It's a mantra for doctors worldwide and is a foundational factor in the explosion of the health and well-being industry.

By applying that same principle to your rental property, you'll minimise unnecessary conflicts or disputes. Detailed and accurate paperwork, photo and video evidence, sensible language about the condition and enthusiastic maintenance will save you many potential headaches by removing any areas of doubt.

Inventories might not be the most exciting subject, but we'll still gladly talk about them! If you've got a rental property in Harborne, Edgbaston or Selly Oak and you'd like to know more about inventories or any other aspect of buy-to-let, you're very welcome to get in touch. Call us for a chat on 0121 427 4777 or email us at info@truemanestates.co.uk - we'd love to help you make the most of being a landlord.

INCREASE YOUR YIELD: BETTER BUSINESS TIPS FOR LOCAL LANDLORDS

183:783684190 (John Trueman) — Tue, 02 Mar 2021 12:13:37 GMT

Is your rental property working as hard as it could for you? As a landlord, you'll want to ensure that your investment is performing well and continues to make good business sense throughout the time you own it.

Homes often have hidden potential that, as well as unlocking more income, can substantially increase demand. And, as you'll discover, there are many more options than merely increasing the rent and hoping it works out.

If you own a rental property in Harborne, Edgbaston or Selly Oak that's either empty or where your existing tenants are moving out, now is the perfect time to review your options. To see how your property could work harder and smarter, call for a chat on 0121 427 4777 or email us at info@truemanestates.co.uk

Meanwhile, let's take a look at five key areas affecting income, performance and profit to see if you recognise any opportunities for you.

REDUCE YOUR OUTGOINGS

Even when you have tenants, you’ll still have outgoings of some sort, whether a mortgage, insurance, ground rent or service charges. Finding opportunities to reduce them is an excellent way to bolster the foundations of your investment.

Look at any insurance policies you have, from buildings to contents to rent protection. Rather than wait until the renewal date, do an interim check to see if you can make savings. Often, the mere mention of switching to a different company can produce a discount from your existing provider.

If you’re paying monthly, you’ll probably only need to cancel your payments. If you’ve paid in full, many policies will offer you a pro-rata refund, but there may be an administration charge, so weigh up any costs of cancelling before hitting the button to switch.

Mortgages are usually the most significant monthly outgoing, which makes staying on top of rates your biggest savings opportunity. Again, take into account any early repayment and application charges, but if you’re on a regular variable rate, there’s probably a better deal out there.

Other refinancing options include remortgaging your primary home at a cheaper residential rate to pay off the more expensive buy-to-let loan. Or you could increase your buy-to-let mortgage payments now to take years off the repayment period, reducing your overall interest costs and freeing up more of your monthly profit much sooner.

ADD MORE BEDROOMS

If you’re looking to hold a property for the longer term, it’s worth looking at whether you can optimise the income-generating potential of the floor area.

More bedrooms generally mean more rent, so if you have a loft, you might be able to get one or two extra bedrooms up there, along with a second bath or shower room. Loft conversions are often the easiest way to increase accommodation without complicated planning consents or compromising how the existing accommodation works.

Keeping within the existing floorplate, can you reconfigure the layout? If the kitchen and living room are close to each other but separate, could they be combined into a contemporary open-plan living space while freeing up the kitchen's old location to create an extra bedroom? Perhaps you can even install a breakfast bar to zone the kitchen and living areas while providing a social connection and a place to eat.

To make the redesigned living space feel bigger, blend the kitchen into the background using the same colour for the cupboards and the wall. Remember that the room needs to be large enough to cope with the extra people living in the property: you won't get the best return on your investment if the result feels like profiteering or a compromise.

MAKE IT EASY TO LIVE

The longevity of tenancies and reduced void periods are crucial factors in the yield you achieve. Very often, it all comes down to how easy it is to live somewhere, so look around for any potential areas of difficulty or dissatisfaction.

Seemingly trivial issues like having a place for the vacuum cleaner, ironing board, suitcases and other household items that don’t belong on display can go a long way to keeping your tenants for longer.

With nowhere to hide things away, a home can feel temporary, as though someone isn't planning to stay for long. And that could well come true if your tenants never feel quite settled or comfortable.

Even a cabinet in the bathroom - mirror-fronted above the basin if you're stuck for space - can avoid an overcrowded mess of bottles, pots and toiletries bags that gathers dust and looks unsightly.

Very simply: think about how people really live and what they really need.

PRESENT LIKE A PRO

Rental homes can be at a disadvantage if they're empty when photographed and viewed. Every last detail comes into sharp relief when there’s no furniture, textiles, gadgets or accessories to create a sense of home.

So it’s vital that everything looks great. If the walls and woodwork are looking tired, attend to scuffs, chips, and picture marks. If they won’t clean off, a fresh coat of paint can be a real lift and excite potential tenants with the prospect of moving into a freshly-decorated home.

Loose handles, wobbly taps and ill-fitting cupboard doors can also drag a space down, so don’t leave viewers with the impression that your property is falling apart. Things can come loose over time, but it doesn’t necessarily mean that everything needs replacing. Simple handyman tasks like these, along with grout and sealant in kitchens and bathrooms, are easy to fix and work wonders for first impressions.

HAVE A FULL REVIEW

If you’re using a managing agent, they should be updating you at regular intervals. If you're self-managing, here are some things to review to maintain your property's performance.

Occupancy: Do you have lengthy void periods, or do your tenants regularly leave after the first year? What could be wrong? Look back over the other sections in this blog to see if you're missing a trick with your presentation, price or publicity.

Rent: are you in line with the current market? Too high and you'll have no interest; too low and your yield will drop. Rents can fluctuate, and it's not unknown for tenants to find a cheaper option and give notice before their landlord has the opportunity to strike a new deal, so it's important to pre-empt unnecessary changeovers and loss of income.

Your agent: If you’re using an agent and you're not happy with the results, take a look at how your property is being marketed and managed. You should feel in good hands at all times and confident that your interests are being served and protected. Are there areas that could improve? Can those be achieved with your current agent, or is it time to switch?

Ownership: there may be a better investment out there. Maybe your property needs a new kitchen or bathroom, but you don't want the expense, or perhaps the service charges eat too far into the rent. It's always worth asking yourself the question: is your property becoming too much work, and will your money do better in another buy-to-let?

In summary

Every property will have opportunities for improved performance, but not every expense is justified in every home. It's essential to match your spend to your market and to avoid over-improving or wasting your money.

If you're a landlord with a rental property in Harborne, Edgbaston or Selly Oak, don't commit to anything major before talking to us! Call for a chat on 0121 427 4777 or email us at info@truemanestates.co.uk : we'd love to help you realise the full potential of your investment.

DEPOSIT DISPUTES: WHY DO SO MANY LANDLORDS LOSE?

183:783684190 (John Trueman) — Tue, 16 Feb 2021 14:30:24 GMT

Ending up in a dispute at the end of a tenancy is one of the least inviting prospects of being a landlord, and thankfully most tenancies end perfectly amicably. But when they do end in disagreement, many landlords manage to lose their claim, leading them to feel that the system is weighted against them.

The most important thing in a deposit dispute is for the outcome to reflect the reality, whether the fault is on the landlord or tenant side. The courts and arbitration services are not there to automatically find in favour of the tenant, but it is the landlord's responsibility to prove a claim is valid and realistic.

So, in this week's article, we're taking a look at why landlords – and particularly self-managing ones – lose so many disputes: from whether their claims are fair in the first place, to how they can improve the way they create and run their tenancies.

If you own a rental property in Harborne, Edgbaston or Selly Oak and you've either lost a dispute, or you'd like to chat about minimising the chances of them happening, we'd love to talk to you. Call us for a chat on 0121 427 4777 or email us at info@truemanestates.co.uk .

Meanwhile let's see where things go wrong for landlords, how the outcomes can be different, and how many situations can be avoided altogether.

SETUP & ADMIN

Whenever a property requires a knack for things to go right, you can guarantee it will come back as bad news.

One culprit here is condensation and mould. If your bathroom or kitchen are susceptible to either, the most effective option is to install an extractor fan with a humidity sensor that automatically activates. One small job removes all the possible consequences, costs and kerfuffle. Otherwise, you'll need to highlight the potential for mould and condensation in your tenancy agreement, and get your tenants to accept any future costs that arise from forgetting to open a window. Terms like that could lead to someone questioning whether your property is somewhere they want to live.

Another example of poor setup can be when renting to people with pets, which is usually problem-free but does require written agreement over any costs that may arise. If the responsibilities for these aren't stipulated at the outset – from damages to smells to infestations – your claim is at risk if the tenancy agreement is unclear. You’ll find that most tenants are quite happy to sign a clause accepting responsibility for any costs arising from their pets, or any visiting ones.

FITTINGS & REPAIRS

There are plenty of landlord groups on social media where you'll see posts that celebrate how cheaply someone has managed to renovate one of their rental properties. Often they find good-looking but ultimately poor-quality fittings that are not likely to last, and where a later visit from a contractor sends the price above the cost of buying something better in the first place.

Cheap taps or laminate floors in wet areas are a couple of quick tricks to making a kitchen or bathroom shine on the surface, but your property must be durable as well. It's tough to prove a tenant is at fault when the fittings and materials in a property simply aren't up to the job.

The same goes for repairs: if you respond quickly and attend to repairs, you'll show respect for your investment, your tenants, and your time. By making your property a low-maintenance home, you’ll have longer, happier tenancies and fewer repairs and disputes.

BREAKING THE RULES

Every now and then, a property gets handed back in a condition where lots of work is needed to put things right.

You may feel rightly frustrated, disappointed or let down, but it's essential to keep a cool head. Whatever you do, and no matter how tempting, don't hold onto the security deposit in a way that ignores legal procedures, or you risk invalidating your claim.

Your best course of action is to obtain quotes as quickly as possible for all the works and costs, then submit them to the previous tenants along with any reports or photographic evidence, and with clear and comprehensive details about why they are responsible. You don't need to wait until you've settled your dispute to carry out any repairs, so your next tenancy needn't be delayed beyond the completion of the works.

Of course, it's a hassle, and you may not even want to speak to the people who've left your property in such a state (one of the benefits of having a managing agent to deal with it on your behalf!). Still, clear communication without resorting to angry recriminations is the most likely route to a swifter settlement.

CLEANING CONFLICTS

The largest area of dispute between landlords and tenants is cleaning, accounting for around 25% of all claims.

In a way, it's comforting. Cleaning is not about breakages, repairs or arguments over wear & tear, so it's effectively a small dispute. Regardless of who wins, it's straightforward enough to get a property cleaned, but what a waste of everyone's time for such a mundane thing!

Of course, it can be more than a trivial issue if your incoming tenants have to move into an unclean home. It's not a great start to a tenancy, and a professional clean is more difficult to obtain while there are boxes everywhere and your tenants unpack.

Generally speaking, a dispute over cleaning comes up when one side skimps. Suppose you don't hand your property over in a professionally-cleaned state, and you don't employ an inventory clerk to take photographic evidence. In that case, any claim will be difficult to win at the end. The same goes for outgoing tenants: if they sign off on the cleaning when moving in, but can't produce a receipt for a professional clean when they leave, they are unlikely to win a dispute.

UNFAIR CLAIMS

Unfortunately, some landlords do attempt unjustified or exaggerated claims against their tenants.

If you don't regularly inspect your property, there could be a few years between your visits, during which time signs of wear and tear will develop. Scuffs on walls, woodwork and floors are a part of life; ovens don't stay looking like new; neither does grouting or sealant - not even in the homes of landlords!

Areas like these are more noticeable when a property is empty than when it's lived in, and they'll also look far worse to you if it's been four years since your last visit.

Regular inspections are invaluable and, for us, they’re a normal part of the day. Anything that might have gone unnoticed in the everyday distractions of life tends to get picked up before it becomes a major problem and a cause for a dispute.

In summary

As a landlord, there's a lot you need to get right: not just to minimise the opportunity for disputes, but to ensure you don't automatically lose them. The many laws that cover lettings are there to help you run your tenancies effectively, and well-maintained properties tend to attract higher-quality tenants, most of whom will love their home and treat it as if they owned it.

As a self-managing landlord, it can sometimes feel like an awful lot to stay on top of, so you might want to explore having your rental investments looked after by people who do it every day. If you have a property in Harborne, Edgbaston or Selly Oak and you'd like to discover whether using a managing agent is the right decision for you, why not get in touch? Call us for a chat on 0121 427 4777 or email us at info@truemanestates.co.uk - we're here to make your life as a landlord as easy as can be.

BUILD A PORTFOLIO OF POPULAR & PROFITABLE LETTINGS

183:783684190 (John Trueman) — Mon, 01 Feb 2021 21:26:02 GMT

Do you think it’s impossible to be popular AND profitable as a landlord? Perhaps you feel that one cancels out the other; that it’s a choice between hard-nosed business and being nice, but that the two are fundamentally incompatible?

You wouldn’t be alone in your view, but it’s perfectly possible to have a successful rental portfolio that’s a commercial success while being on excellent terms with your tenants. Questioning how your rental properties could be popular can help you increase your returns by owning a collection of in-demand homes where people really want to live.

Growing your rental portfolio can provide you with a secure financial future and provide many people with a wonderful home. Whether you are an experienced landlord looking to expand your portfolio, or you are looking for your first buy-to-let investment, this week’s blog is for you.

We work with many landlords and their rental properties in Harborne, Edgbaston or Selly Oak: some we've helped grow their portfolio, and some are just starting out. Whatever stage you’re at, you’re welcome to get in touch about any aspect of buy-to-let: call us for a chat on 0121 427 4777 or email us at info@truemanestates.co.uk

Meanwhile, read on to discover how you can build a profitable and popular portfolio to enhance your life, and be a hit with your tenants.

FOCUS & FINANCE

It’s sensible to decide which part of the rental market you want to focus on. If you’re looking to rent to families, do some research around the best local schools. Offering a home in the catchment area of an outstanding-rated school will give you plenty of demand as diligent parents move the earth to get their children the best education.

Or do you want young professionals? In which case you’ll need good transport connections nearby along with places to enjoy the neighbourhood. An excellent local coffee shop; a pub with Sunday roasts and a great selection of ales, and a weekend breakfast spot are all high on the lifestyle criteria of busy singles and couples.

Whichever market you’d like to explore, check where the demand is with local letting agents. Which types of rental property have a continuous shortage? Where can you find those homes in the neighbourhood? That’s a good target.

Even though it’s tempting to rush out and view potential properties, having your finance in place first will give you confidence in knowing exactly what you can afford, and help you move on an opportunity quickly.

Talk to an experienced financial adviser with knowledge of buy-to-let lenders and products so they can recommend a solution that fits your circumstances. You’ll find a financial adviser invaluable in sifting through all the various lending criteria, so you don’t have to spend your evenings trawling Google or comparison sites.

As well as your mortgage, make sure you have the money in place for the associated costs of purchasing a property, as well as for any renovations you intend to carry out: never start a building project without having the cash to complete it. If you end up having to halt the works until you’re in funds again, you could lose all your contractors as they head off to other jobs, leaving you with an empty property, no rent, and mortgage payments due.

KNOW YOUR ONIONS

Whether you’re handling all the management yourself or employing a managing agent, keeping your portfolio to a single area or neighbouring postcodes makes life much easier.

You’ll increase your local knowledge, and your familiarity can save you hours of research over local property prices, protecting you from misinformation or being overly hopeful.

Managing a portfolio also requires a trusted circle of reliable contractors who can leap to your aid when an emergency hits, and keeping your portfolio close together will save you hunting for contractors in multiple locations. Imagine needing five different groups of contractors for your five rental properties in five separate cities: try dealing with that!

And if you’re using a managing agent, the whole point is to give yourself less work. The fewer points of contact, the easier it will be for you to talk about your portfolio and the closer your relationship, resulting in more opportunities. Landlords who want to sell often speak to their managing agent first to see if they know another landlord who’ll buy their property without the hassle of going to the open market and frightening away their tenants.

CASH IS KING

Cash flow is the most important thing for any business, and the lack of it causes many companies to fail. If your rental property becomes a monthly drain on your finances, the entire experience of being a landlord will be tainted by money concerns.

Many landlords become fixated on capital growth, forgetting about yield. If you want to secure a financial future for yourself, then clearly the value of your property is a factor but is largely out of your control.

Your rental yield is a vital component of a sustainable lettings portfolio and will help you build an emergency fund for unexpected problems and regular maintenance. Imagine having to dip into your own pockets for every issue or repair.

A property’s rental income must cover all of its monthly outgoings. It’s sensible to build in a cushion against rising interest rates as well, particularly when those rates are as low as they are right now.

POPULARITY WINS

Being popular is a rarely discussed aspect of being a landlord. You might even see it as an impossible dream. But being a popular landlord is a much easier life than being an unpopular one. It will give you a more reliable, more comfortable and more enjoyable experience, both personally and professionally.

Creating a collection of well-presented and well-maintained homes will give you several benefits:

• Longer tenancies. With fewer void periods and less work, you won’t be continually looking for new tenants or having to arrange check - ins, check-outs, inventories, or notifying local authorities and utility companie s.

• Local lettings agents will love you and take to letting your property with genuine and profound enthusiasm because you’ll have made life easier for them to find you the perfect tenant .

• More rent. People are staying longer and longer in rental properties - the average is now around four years - and they’re looking closer than ever at fixtures, fittings and condition. A rental property is no longer a temporary stopgap for six months or a year, and people will happily pay a higher rent in return for a higher-quality home.

• Politeness. There will always be something that goes wrong, but if your tenants are in love with their home, they’ll be far more likely to report an issue early - before it becomes a bigger problem - and in a far more friendly way.

• More opportunities. Becoming known as a great local landlord will put you in pole position when other potential rental investments come up, making it easier for you to expand your portfolio. Nightmare landlords often have to buy at auction and self-manage, because local agents don’t want to deal with them or their problem properties.

FIND A CARER

What's your goal? Are you looking to switch careers and become a full-time self-managing landlord with a completely hands-on approach to maintenance, tenants and repairs? Or do you want to grow a rental portfolio to supplement - or replace - your current income with as little work as possible?

If you don’t want to manage everything yourself, you could employ someone to look after your portfolio if it’s large enough. Ensure that you’re not simply doing a friend a favour by giving them a job; you need a manager who knows exactly what they’re doing and has experience looking after rental properties and tenants.

Of course, the way to be sure of management expertise and a circle of local contractors is to use a managing agent. They’ll have rooted out the disastrous contractors from the good ones, and they’ll have the leverage to get preferential treatment. When maintenance issues arise, they’ll be dealt with quickly, correctly and at a reasonable cost.

Managing agents exist to save you money and time and are the perfect solution for growing your portfolio as a substantial, sustainable and passive income.

Check them out first by speaking to the property manager with whom you’ll be having a long-term relationship. It’s essential to have confidence in them and feel you can have a sensible conversation and receive the correct guidance. Ask them how long they’ve been managing properties; how many they manage; how often they carry out inspections and how they deal with out-of-hours emergencies.

Don’t be afraid to ask questions: the right managing agent will be only too happy to put your concerns to rest.

How was that?

Would you like to talk about growing your existing lettings portfolio? If you’re looking to acquire more – or your first! – rental property in Harborne, Edgbaston or Selly Oak, or you’d like to talk about using a managing agent, why not get in touch?

We’re here to help you make the most of being a landlord, so call us for a chat on 0121 427 4777 or email us at info@truemanestates.co.uk

PROS OR CONS: IS A MANAGING AGENT WORTH YOUR MONEY?

183:783684190 (John Trueman) — Tue, 19 Jan 2021 15:59:45 GMT

It takes a certain character to be a managing agent: the job has a reputation as a thankless task with days full of complaints, emergencies, breakdowns and hassle. And if we’re honest, rarely does anyone call with news that everything’s just fine.

But to be a managing agent is also to be the person who makes everything right. A property that never needs maintaining, or where nothing ever goes wrong, simply doesn't exist and emergencies rarely happen at a convenient moment: not for homeowners, not for tenants and certainly not for landlords. For a managing agent, they’re an expected part of the day.

Whether you’re an existing or budding landlord, you’re right to keep an eye on your outgoings. You might even have questioned whether a managing agent is really worth the expense. But do you include the personal costs as well? How much do you value your time and how you spend it?

This week’s blog is not to convince you to use a managing agent, but to show you how life could be if you did. From inspections, maintenance and easier accounting, to keeping you on the right side of the law and protecting you in the event of disputes, here are five one-minute morsels of how we look after our landlords, and what we could do for you.

KEEPING THINGS LEGAL

If one of your hobbies is scrolling through the government's website for changes in legislation regarding rental property, you are unlike anyone we know.

It's a time-consuming task and a rolling responsibility that many landlords fall foul of: you need only to look at the eye-watering number of landlords who lose disputes. If you get anything wrong in the legal process, the law will likely find in favour of your tenant.

But while landlord and lettings legislation is certainly a minefield, it’s not one you need to walk through. Managing agents are charged with knowing all there is to know and taking the appropriate action. It’s not something on top of our job: it is our job, and it’s made far more workable by having all day, every day to do it.

As soon as a new piece of legislation becomes law, we ensure that every single property we manage is brought in line and on time: our landlords rarely need to do a thing. Imagine if they all had to clear their individual days to find out precisely the same information as each other - how many wasted hours of life is that?

TRUSTED CONTRACTORS

Have you ever been in a conversation about the difficulties in finding reliable companies to repair something at your home? Or where a contractor came in, charged the earth and made the matter worse? Almost everyone has experienced some version of that.

It’s one thing waiting in for a plumber at your own home, but when it comes to meeting them miles away – and with a three-hour arrival window in the middle of winter – it’s really not the same. And if they don’t turn up at all, or you need to revisit when the works aren’t done correctly, it’s more hours out of your life and a less than happy tenant.

It’s taken us years – and plenty of tears – to develop a circle of trusted tradespeople. We’ve met disastrous contractors along the way, but our list of long-standing connections can deal with almost every kind of emergency and problem you can imagine. There’s rarely something that comes up that we haven’t dealt with before.

Our strong relationships mean that we often get priority treatment, with repairs attended to quickly, properly and at a reasonable cost: a win-win situation for everyone.

TAX RELIEF

Where do you keep your receipts? If you’re anything like most people it’s a combination of inside your wallet or purse; generously sprinkled across numerous pockets; and the occasional triumph involving the box file marked ‘receipts’ (a purchase made with perfectly good intentions, but rarely enjoying its intended role).

And when it comes to completing a tax return, we can add checking a year of credit card and bank statements, and trawling back through emails for online orders and purchases. The unappealing nature of the task means it’s generally left to the very last – and somewhat stressful – hours before the deadline, so unless your perfect drinking partner is the self-assessment website, it’s hardly an ideal evening for enjoying a bottle of Pinot Noir.

Now, just for a moment, imagine receiving a statement of all your income and expenditure for your rental property without a single piece of paper to lose. If all the information you needed was there to cut and paste directly into the self-assessment website, how much time, energy and brain space would that free up?

Some of our landlords tell us it’s worth the management fee alone.

REGULAR INSPECTIONS

Whether you’re an intentional or an accidental landlord, one of the main attractions of buy-to-let is the thought of passive income. But a truly passive income means doing nothing at all, and the act of owning a rental property doesn’t mean there’s nothing to do.

Most landlords are responsible people, and part of being a responsible landlord is visiting your tenants at regular intervals; not only to identify and discuss any maintenance or enjoyment issues, but also to nurture a healthy relationship. You’d certainly save time if you never inspected your property, but your message of disinterest might well be returned by your tenants.

It’s the same with your own home: when you actively keep an eye on things, you spot potential problems fast and prevent them becoming more complicated and costly. A fresh pair of eyes almost always highlights something that’s been missed or unreported, so inspections are an invaluable part of a tenancy.

But there’s no escaping that they are work, and they take time. Your time.

CONFRONTATIONS

The odd malfunction or minor repair is one thing, but when problems come one after another – or where your tenant experiences a change in circumstances, or becomes a nuisance – the relationship and communication can become strained.

You've probably had the experience where it feels like things keep going wrong at home: first the boiler; then the washing machine; then an extractor fan; then a tap. On their own they're tiny issues and often a matter of wear and tear, but the difference is that your extractor fan is not interrupting someone else's life. You might be a bit miffed when it stops working, but no-one is getting angry with you.

Now let's consider a tenant whose finances take a turn for the worse, or someone who causes problems among your neighbours, whether deliberately or accidentally. Thankfully these occasions are scarce, but there is rarely any warning and they can have major implications for you as the landlord, which might affect your ability to keep your cool.

Having a third party, and one of authority, to step in on your behalf can help alleviate situations fast, without them ever getting personal or overheated.

So how does that sound?

Are all of the duties of a self-managing landlord adding value to your life, or can you see the benefits in having them handled for you?

Think of a managing agent as a scientifically impossible preventative ibuprofen: you might not be able to plan for a physical headache, but you can reduce the risk of your rental property becoming a pain in the neck.

For us, emergency repairs, regular maintenance, changes in the law and unexpected events are not inconvenient interruptions: they’re exactly what we’re waiting for. We certainly don’t spend our days doing nothing, but we do spend them ensuring that you have nothing to do.

If you have a rental property in Harborne, Edgbaston or Selly Oak and you’re wondering how a managing agent could make your life as a landlord easier, why not get in touch? Even if you’re still on the fence, call us for a chat 0121 427 4777 or email us at info@truemanestates.co.uk we’d love to help you turn your rental property into a truly passive income.

LET’S GET ORGANISED: NEW YEAR’S RESOLUTIONS FOR LANDLORDS

183:783684190 (John Trueman) — Wed, 06 Jan 2021 16:31:05 GMT

From giving up smoking, to a change of diet, to getting in some exercise, now is the time of year when all sorts of new year’s resolutions are being made and declared. Health and fitness are the usual areas we concentrate on, but there are also things to consider in terms of your wellbeing as a landlord.

January always brings about a desire or search for change, so now is the perfect time to examine whether the way you operate as a landlord is entirely good for you. There’s a lot to manage, a lot to remember and a lot to stay on top of, even with just one property (let alone a larger portfolio).

We speak to more and more landlords who find it quite a task to keep abreast of the ever-increasing legislation while also keeping to their regular responsibilities of looking after their rental property and tenants. But we also meet landlords who are doing more than they need to, leaving them less time for enjoying life.

So for the start of 2021, here are five new year’s resolutions to make your life as a landlord easier, more organised and more fun.

I WILL DO MY TAX RETURN EARLY

There is nobody, but nobody, who lists filing their tax return as one of their favourite hobbies, but tax is one of life’s inescapable obligations. As with any task, leaving it until the last minute – like 11:45pm on January 31st – means it will nag at you for longer, but having it done in good time will leave you feeling more relaxed, professional and accomplished.

One of the barriers for people is the thought of sitting for hours on the Self-Assessment website, so instead of setting yourself up for a marathon session, break the job down into smaller tasks. You can complete your return in stages, so perhaps setting aside an hour each Sunday before lunch might work, with the reward of a scrumptious roast providing ample motivation.

Before you log on, start by creating a complete expenditure list, from maintenance and repairs to mortgage payments, insurance premiums, service charges, ground rent, agents fees and any other costs for the financial year. Next, move on to income from your rental property and other sources, including businesses, work, investments, savings, pensions, etc.

Once you’ve collated all the money in and money out, you can begin completing your tax return on the Government’s website. Imagine if January 31st came and went like any other day, instead of arriving with a sense of doom and finishing down to the wire.

I WILL SET REMINDERS

Passive income is an appealing part of being a landlord, but there are times in the year when you'll need to be active. That said, you can minimise the brain space required by setting reminders in your calendar for important dates.

If your property has gas, you’ll need to arrange a Gas Safety Check and Certificate every year, so that’s a recurring appointment that can go into your calendar right away. Set it in your smartphone now, and it’ll remind you forever.

Insurance policies also come up for renewal each year, so it’s worth setting those dates as well. More than ensuring that payment is made, you’ll have the opportunity to shop around for more competitive quotes, rather than just renewing your current policy through lack of time.

Energy Performance Certificates (EPCs) and Electrical Installation Condition Reports (EICRs) are both legal requirements and are valid for 10 and 5 years respectively, so check the dates of your last ones and put reminders in your calendar for a couple of months before the expiry dates.

Other dates for your diary may include appliances on regular maintenance contracts, periodic redecoration, or half-yearly inspections of your property.

By setting these items and reminders in your calendar now, you’ll remove the need to keep them in your head and be able to deal with them in good time, rather than get caught by surprise. Or late!

I WILL BUILD AN EMERGENCY FUND

You can’t predict when the unexpected will happen, but you can prepare for it. No one wants the dreaded call from their tenant saying the boiler has broken down, the washing machine has finally died, or the drains are blocked, but it’ll be worse if you don’t have the money to fix it.

By setting up an emergency fund, you can safeguard yourself in the event of sudden problems. Aiming to save 10% of each month’s rent is a good number to work to and will give you a cushion against unexpected expenditure, as well as vacant periods.

Getting on top of your rental finances and putting something aside for emergencies can stop you running into financial trouble. Otherwise, you might be left taking out a loan to cover the costs, or getting repairs done on the cheap, only for the problem to rear its head again.

You could also take out emergency insurance cover, but make sure to check for what’s included: appliances often aren’t and extras can add up.

I WILL ACT LIKE A BUSINESS

Being a landlord is most definitely running a business, so if you haven’t done so already, embrace a professional mindset.

Start by making sure you’re clued up on the latest legislation. From up-to-date Right to Rent checks to new EPC rules requiring a rating of E or above, there is plenty you need to know. In fact, there are more than 150 pieces of legislation relevant to the rental market and understanding your obligations makes not only smart business sense, it will keep you on the right side of the law.

Of course, being in-the-know about legislation isn’t the only way to treat your rental property as a business; service also has a major role to play. Always respond quickly when your tenants contact you, whether it’s a minor issue or major repairs. Everybody accepts that some things can’t be fixed immediately, but the simple act of responding shows a responsibility towards your property and tenants.

It’s also important to make inspections of your property during the tenancy, at least once every six months. As well as building trust and maintaining a good landlord-tenant relationship, your visit might identify a potential problem that had so far gone unspotted: it’s always easier to notice more around a property when you haven’t seen it for a while, than when you see it every day.

A high level of service and a good relationship helps to keep your tenants happier and to stay in your property for longer, resulting in fewer void periods and better yields.

I WILL REDUCE MY BURDENS

While it's important to get everything in order with your rental business, we still recommended going easy on yourself. Some landlords have buy-to-let portfolios; others have a single property they manage alongside their primary job. Either way, the business of being a landlord can be time-consuming and can interfere with doing the things you love.

Some landlords we meet do all the little odd jobs themselves, which might save them money, but certainly costs them time. This can be down to their mistrust of contractors or an unwillingness to spend, but very often they appear quite hassled.

Hiring a managing agent is one way to get your time back, whether you’ve got a portfolio of one, ten or more. They’ll organise your compliance obligations, stay on top of legislation, attend to tenant issues, carry out inspections and make sure your rental property is run like a business on your behalf. They’ll also have local and trusted contractors to call when things go wrong to make sure that repairs are done swiftly and correctly: if a contractor wants to keep getting the business for a managing agent’s properties, they absolutely need to be reliable.

Having all of this handled leaves you free to focus on the things in life that really matter, like spending time with family and friends. And all the while enjoying a passive income from your property without the need to worry about every – or any – little thing.

In summary

As Benjamin Franklin said: “by failing to prepare you are preparing to fail”, so getting your landlord year off to an organised start is a wise move indeed. Then you can spend the rest of 2021 knowing that your rental business is running like a well-oiled machine.

If you have a rental property in Harborne, Edgbaston or Selly Oak and you'd like to find out whether a managing agent is right for you, why not get in touch? Call us for a chat on 0121 427 4777 or email us at info@truemanestates.co.uk - we'd love to show you how we can help you make the most of being a landlord.

SEASON'S LETTINGS: YOUR LANDLORD CHRISTMAS CHECKLIST

183:783684190 (John Trueman) — Tue, 22 Dec 2020 12:35:33 GMT

There are some interesting parallels between landlords and Santa Claus. For a start, you’re often making a list and checking it twice, only yours is full of to-dos for repairs and maintenance at your rental property. Then there’s deciding if your tenants have been naughty or nice, and whether they look after your property and pay the rent on time.

The comparisons don’t end there and the festive season can be as busy for landlords as it is for Mr Claus, with the colder months bringing chilly calls from tenants when their heating doesn't work.

If your property is empty, you might be wondering how to get it rented during the winter, or whether you should take the opportunity to make improvements: could updating the presentation and upgrading the fittings help you achieve a higher rent in the new year?

So there’s a fair bit for a landlord to think about over the holidays, and this week's blog is full of festive tips for managing your empty or occupied rental property this Christmas.

TIDINGS OF COMFORT & JOY

Although renting your property is a business transaction, there's absolutely no harm in spreading some Christmas cheer to your tenants.

It's a small thing but a large gesture to drop them a text to wish them well, to see how they're doing at this most unusual of Christmastimes, and to let them know who to contact in the event of an emergency. If they've been particularly excellent tenants then a small gift like a bottle of wine or seasonal treats can generate goodwill that lasts long beyond their consumption.

While you're messaging, it's worth checking that everything is running smoothly at your property as well. If any equipment or appliances have shown even the faintest signs of playing up, it's far better to get onto it now before it becomes more urgent and inconvenient.

Strong landlord-tenant relationships are important and they improve the chances of your tenants staying in your property for a longer term, meaning less time, hassle and costs in finding new people, showing them round, taking up references and arranging inventories.

Really, there is no better time to check in on your tenants than Christmas, and particularly in 2020.

HOME (OR AWAY) FOR THE HOLIDAYS?

Winter 2020/21 is unlike any other with severe travel restrictions introduced in response to Covid. Ski resorts are snow-covered ghost towns, while jetting off for a Caribbean Christmas will have to wait for another 12 months. But even with fewer people going away, there’s still a chance your tenanted property could be empty over the festive season.

When the government announced tighter restrictions, lots of families brought forward their travel plans to beat the new deadline. And because we don't know for sure when the latest travel restrictions will end, it's very possible that people will be gone for much longer than they originally thought. Anyone who's been missing their family and is able to work from home could take the opportunity to stay away until a new announcement is made.

This means your rental property could be vacant for a number of weeks, which may affect your insurance, so it's definitely worth checking in with your tenant. They might simply not have thought about contacting you in the rush to get away, and may appreciate the reminder so they can check their own cover and inform their provider.

And if they are away, perhaps a neighbour could be asked to keep an eye on things and given a number to call in case of emergencies.

DECK YOUR HALLS

Is your rental property going to be vacant over the holidays? Empty homes are the perfect canvas for decorating or repairs and, with Christmas one of the quietest periods for lettings, you couldn't wish for a better time of year to carry out the works.

Is the paintwork looking a bit tired? It can happen after a couple of tenancies and changeovers. Check the walls and woodwork for scuffs, scrapes and chips and treat them to a fresh coat for a gleaming interior to welcome new year viewers. And if you want to be thoroughly on-trend, take a look at 2021's colour predictions from paint companies including Farrow & Ball, Dulux and Benjamin Moore.

Vacant periods are also an excellent time to attend to little jobs, and not just the repairs you already know about. Check for door handles that need tightening, taps that drip, and grout or sealant in the kitchen and bathroom that's either worn away or discoloured.

These are the small things that may go unreported or even unnoticed during someone's tenancy, but that can and do build up over time. Rarely does a tenant call us to say their grouting isn't as white as it was, but it will certainly be more noticeable to a viewer with nobody's Rituals products to hide it.

NEW YEAR REVOLUTIONS

Have you been thinking about how to achieve more rent or fewer vacant periods?

With people staying longer and longer in rented accommodation - average tenancies are now around 4 years - they are paying more and more attention to the quality of presentation and fittings. So is there any equipment at your property that's either showing its age or that you could upgrade to attract a higher rent?

Being faced with new, stylish and high quality fittings can really swing it for tenants in search of somewhere special, so take a look around for upgrade opportunities.

It could be a big job like replacing a freestanding monster boiler or an old washing machine, or something smaller like a new tap or shower fitting, or even a loo seat that isn't from 1984 and falling off its hinges.

Little things can often make big impressions and, if your property is vacant, you can carry out improvements without having to work around tenants or their belongings.

WARM WELCOMES

Even with the rental market slowing down at this time of the year, there are still people looking for a new home. In fact, anyone viewing during the cold season is likely to be extremely serious about moving, so you’ll want to make them feel welcome.

The natural greeting from a vacant property in winter can be on the frosty side, so turn the heating on in good time for any viewings. It really is no fun walking around cold and empty interiors - nobody wants to stay when it feels colder inside than out!

Regardless of viewings, having the heating on a timer will keep the chill off and reduce the chances of frozen pipes. Plus you'll know that everything works… A flustered call from your tenant on the day they move in to discover they have no heating, is not a call you'll enjoy.

In summary

There is plenty to consider for landlords over Christmas.whether your rental property is vacant or occupied.

Showing your tenants you care, making sure your insurance is valid and taking the opportunity for improvements and maintenance are all a worthwhile use of your time.

If you have a rental property in Harborne, Edgbaston or Selly Oak and you'd like to talk about making the most of the festive period or of being a landlord, why not get in touch with our team? Call us for a chat on 0121 427 4777 or email us at info@truemanestates.co.uk - we'd love to hear from you.

NO VACANCY: KEEPING YOUR RENTAL PROPERTY OCCUPIED

183:783684190 (John Trueman) — Tue, 08 Dec 2020 11:26:38 GMT

T hey say that death and taxes are the only two certainties of life. Well, if you're a landlord, you might be feeling that empty weeks at your rental property are an inevitable third.

Vacant days are money lost for landlords, and we meet plenty who feel both entirely powerless and resigned to losing valuable rental income. Aside from the financial cost, if voids become a regular occurrence they can cast a lingering cloud over your tenancies, with the back of your mind never completely free: will your tenant give notice at the earliest opportunity; will you find new ones for a seamless changeover; will you need to carry out repairs or maintenance before new people can move in?

But are void periods entirely down to chance and luck? And is there really no way to influence the number of days your property remains empty? Even though it might be unwise to expect 100% occupation over the lifetime of your rental property, there are undoubtedly actions you can take to reduce the risk of void periods, and even the occasional opportunity to use them to your advantage.

So this week's article focuses on how to keep your rental property occupied in the long term so that voids don't become a regular nuisance.

THE HIDDEN COSTS OF VOIDS

While the absence of a tenant will put your rental income on hold, it won't stop your expenditure. For every day your property sits empty, you'll become financially responsible for things like council tax, water, gas, and electricity, which all become costs for you as soon as your tenant vacates.

While utility bills will likely be minimal during empty periods, the council tax will depend on whether your property is furnished or empty. Furnished homes attract the full rate even when vacant, while the 'empty and unfurnished' discount has dwindled. It all adds up, and you could easily find yourself paying a couple of hundred pounds each month your property is vacant.

As a rule of thumb, it's wise to budget one month's worth of rent for a void period each year. That doesn't mean you need to lose 1/12th of your annual income, but having a contingency for things like hidden costs and unexpected expenditure can reduce the anxiety when something happens.

BE IN IT TO WIN IT

To quote Dorothy in The Wizard of Oz: "there's no place like home". Can you think of anyone who would argue with that phrase? It's such a powerful and universally resonating statement. But look what happens when we change it to: "there's no place like rented accommodation." It just doesn't have the same ring.

It's essential to think about your property's presentation during viewings and to pre-empt any issues. If you have tenants who've given notice, ask them if anything needs fixing. Attending to issues before they leave – or lining up contractors for the day they move out – will mean new people can move in immediately. An empty and cold home simply isn't as inviting as one that's lived in, so give yourself the best chance of re-letting before your tenants vacate.

If your property is already empty, make sure it's as inviting as possible. Scuffed paintwork, mouldy grout, or chipped skirting don't exactly paint a picture of a lovingly cared for home, so fix them as soon as you can. Large piles of mail forming by the front door are also never a good look, so clear them on regular visits if you're self-managing. And depending on the time of year, either open the window vents to ensure a proper airing or leave the heating on low to avoid a frosty welcome.

You can also use a vacant period to make upgrades to your property without disturbing your tenants. Contractors will be able to move around freely without having to deal with personal belongings, which means works can proceed with more speed so your next tenants can move in sooner. See the Boost Your Appeal section for ideas on simple improvements to make your property more rentable.

You may feel this sounds obvious, but setting the correct price for your property will help it to rent faster, especially when there's lots of competition. Overpriced homes tend to attract very little interest, and there is no easy way to communicate that you're open to offers without making your asking price look pointless.

To reach the largest number of possible tenants, use a local letting agent: they'll have a register of potential tenants and will also be able to list your property on national search portals, where almost everyone begins their search. Many people never get any further than this before finding a home, so make sure you don't miss out on the richest source of tenants.

Finally, be pragmatic and look at the bigger picture. In a competitive market with plenty of property available, accepting an offer £10 less per week than your asking price could well turn out better than sticking to your guns and risking a month without tenants. The right letting agent will help you strike a balance between ensuring that your rental income continues to reflect the market and maximising your occupancy rate.

BOOST YOUR APPEAL

Generation Rent is a thing, and the number of people looking for rented homes is rising. By 2021, almost a quarter of all housing stock in the UK will come from the private rental sector. Rising house prices have created a significant shift into long-term renting, which means people are looking for homes to enjoy for a longer time, rather than stop-gaps before getting on the property ladder.

The fact that more people are renting is good news for landlords, but it comes with increased hopes and expectations about the quality of homes on offer. So think about how to make your property more rentable to attract higher calibre tenants. Relatively small items like replacing the hose attachment on the mixer tap with a thermostatic shower unit; upgrading the kitchen by installing a dishwasher; or implementing affordable smart tech like room thermostats can make all the difference in attracting premium tenants.

Many of the upgrades or appliances that you can install cost much less than the UK's average monthly rent of £974 . Investing in good-quality items from trusted brands will not only ensure your property keeps up with competitor home; it will also reduce the need for ongoing repairs and replacements. People tend to give notice as soon as they can for homes where things keep breaking down, so why not help them to stay by ensuring that everything works.

THINK LONG TERM

If you're looking for proof about renters staying in properties for longer, then look no further than the average UK tenancies, which now last for more than four years . Make it known to potential tenants that you want them to stay for the long haul, and that your property is somewhere for them to create lasting memories.

If your tenant feels truly at home while living in your rental property, they are far less likely to start hunting for somewhere new in nine-or-so months. Many tenants have experienced continual rent increases or receiving notice to quit every year to the point of always keeping an eye open for their next option. But if your tenant is a good one, it pays to reduce the possibility of them jumping ship.

The vast majority of tenancy agreements are 6 or 12 months long, which hardly sets the scene for longevity, but there is no limit on the length of an Assured Shorthold Tenancy. So why not consider a longer-term contract to give your tenants more comfort while including a break clause in the event of the tenancy not going to plan. And if you already have tenants in your property who you'd like to keep, even if the renewal date is a long way off, say something now. The sooner you do, the sooner you nip their wandering eyes in the bud.

Most of our landlords have no desire to have to continually re-let their property – even if they get a slight increase in rent each time – because they know that changes of tenancy often mean periods of vacancy. And no matter how conscientious your outgoing tenant, there will inevitably be the signs of wear and tear that come from everyday life, and from moving out. Empty homes are frustratingly good at highlighting even the slightest marks which could leave your home looking less loved than it is.

Long-term tenants bring stability and provide you with steady yields, with zero voids and less time, hassle and expense. You may well find that works more in your favour than the on-paper attraction of an incremental rent increase every 12 months.

SHOW YOU CARE

Part of a being a landlord – and all of being a letting agent! – is providing a service. Think about when you're in a shop, at a hotel or on a plane: being treated well is not only delightful, it's what keeps you coming back for more. It's precisely the same with high-quality tenants: they'll be in no rush to leave if they know their landlord cares.

We'd define a good service from a landlord as taking pride in your property: you simply can't go wrong with the message that you're a pro. Responding quickly if the washing machine breaks down or the heating plays up will give huge comfort to your tenants, so even if you can't send a contractor out right away, the simple acts of acknowledgement and communicating are remarkably efficient at cultivating goodwill.

Remember, you WANT tenants who notice things. By letting you know the minute something's up, they help you to keep your property in tip-top condition and to keep your costs down by dealing with problems at the outset, rather than leaving them to grow.

Managing agents carry out inspections during tenancies to make sure everything is going well for the tenants and to ensure that properties are being well cared for. If you're self-managing, it's well worth doing the same to give you and your tenants complete peace of mind and a personable relationship.

In summary

It would be wrong to suggest you should budget for zero empty days at your rental property, but you do have the power to create an environment that consistently attracts the very best tenants. By looking after your property, encouraging your tenants to stay for a long time, and showing them you care about their enjoyment of their home, you'll be laying the foundations of a reliably solid occupancy rate.

If you'd like to learn more about keeping your rental property occupied and keeping your void periods to a minimum, why not get in touch? You can call us on 0121 427 4777 or email us at info@truemanestates.co.uk - we're here to help you make the most of being a landlord.

RIGHT TO RENT: EVERYTHING LANDLORDS SHOULD KNOW

183:783684190 (John Trueman) — Wed, 25 Nov 2020 12:06:20 GMT

Introduced in 2016, Right to Rent had something of a rocky start but has since become an integral part – and legal requirement – of every Assured Shorthold Tenancy.

The scheme was initially met with some dismay among landlords who argued that checking people's immigration status was the government's responsibility. In fact, in 2019, a high court found Right to Rent unlawful and racially discriminatory, particularly against people with minority ethnic backgrounds. The ruling was later overturned after a government appeal, and Right to Rent became law.

Whatever you feel about the rights and wrongs of Right to Rent, it’s something all landlords must follow, but what exactly does Right to Rent entail, and how much of a burden is it when letting your property?

This week’s article zeroes in on the Right to Rent scheme and what it means for you; how to comply; and the possible penalties for ignoring it.

Read on to discover the finer details of Right to Rent.

WHAT IS RIGHT TO RENT?

Right to Rent makes landlords legally responsible for checking the residential status of their incoming tenants. Before 2016, the primary components of renting out a property were tenant referencing (not mandatory, but something all landlords should do) and signing an Assured Shorthold Tenancy agreement (AST).

Since the passing of the Right to Rent legislation, all incoming tenants are required to provide a copy of their passport and, where appropriate, immigration documentation, which you or your letting agent must verify.

To quote the government’s official handbook, “All landlords in England have a responsibility to prevent disqualified persons from accessing the private rented sector. You do this by conducting Right to Rent checks on all prospective adult tenants before the start date of a tenancy agreement, to make sure the person is not disqualified from renting a property by reason of their immigration status.“

HOW DOES IT WORK?

In a nutshell, you are required to:

● obtain an original item of identification for all prospective occupants aged 18 or over;

● confirm the authenticity of each ID;

● make copies of all documents;

● return the originals to the tenant(s).

To carry out a successful Right to Rent check, you or your letting agent must obtain an original item of identification forevery person aged 18 or over who will be living at your property, even if they aren’t named on the tenancy agreement. This can be a passport, permanent residence card, UK immigration document, or others found on the official Right to Rent website .

Every person you check for Right to Rent must be physically present with their original documentation, either in person or by video call. You cannot simply accept digital scans by email.

You or your agent must then check the documents’ validity by cross-referencing them with accepted documents on the government’s website. Remember to check details like expiry dates on visas and other time-limited travel documents.

Finally, you need to make a copy of each document to keep throughout the length of the tenancy and for one year after your tenants vacate. Time-limited documents – a visa that lasts for two years, for example – require follow-up checks when they’re due for renewal, so remember to put a reminder on your calendar. After the initial checks have been completed and copies made, the originals should be returned to the tenant(s).

SUBLETTING

Subletting is rarely a topic that gets landlords excited, although you may ultimately decide it’s something you’re happy to allow. If that’s the case, anyone who rents via subletting will also need to go through the Right to Rent process, but this time it's your tenant who must conduct the checks and to effectively become the landlord to the subtenant.

Given that most landlords put a clause in their tenancy agreements to restrict subletting, it’s probably something you won’t have to deal with, but there’s no harm in knowing the procedure in case the subject comes up.

OVERSEAS TENANTS & BREXIT

Overseas tenants

Overseas tenants are slightly trickier when it comes to Right to Rent. The best advice is to agree a tenancy in principle, subject to ID checks after your tenants arrive in the UK, which means you can have all the paperwork ready to go for when you receive the necessary immigration documents.

If a prospective overseas tenant has a current immigration application under review, you can ask the Home Office to carry out the Right to Rent check on your behalf.

Brexit

As things stand today, there are no firm plans from the government in regards to Right to Rent for EU citizens after Brexit, and no indication of whether or when new procedures will be agreed or implemented.

So until we hear otherwise, landlords and letting agents should carry on as now.

PENALTIES

It’s one thing knowing how Right to Rent works, but quite another if you ignore it. The repercussions are severe, with a maximum penalty of five years in prison for landlords who willingly rent their property to illegal tenants.

Even if you avoid going to prison, you could receive an unlimited fine for renting a property to someone where you had ‘reasonable cause to believe’ they didn’t have the right to rent in England.

Fines typically depend on the type of accommodation and whether or not it’s your first offence. You can be fined for several reasons, from failing to carry out a check on tenants, to accepting false papers from renters in relation to their status.

If the Home Office suspects you have an illegal tenant, you'll receive a Referral Notice to inform you that you’re being investigated. During that process, you'll need to prove you carried out all the required Right to Rent checks so that, even if it turns out you were given false information, you won't be held responsible.

In summary

Right to Rent needs to be taken seriously, but it needn't be a hassle. Yes, it's one more thing to do, but the process of checking documentation is easy enough and gives you comfort that your tenants are qualified to live in the country and at your property. If nothing else, it's added peace of mind that your tenants are exactly who they say they are.

If you'd like to learn more about Right to Rent and how it affects you, why not get in touch ? You can call us on 0121 427 4777 or email us at info@truemanestates.co.uk - we're here to help you make the most of being a

ANIMAL INSTINCT: SHOULD YOU LET TO PEOPLE WITH PETS?

183:783684190 (John Trueman) — Mon, 09 Nov 2020 19:11:13 GMT

How do you feel about allowing pets in your rental property? Or even in your own home? Are you a card-carrying animal lover with pets who cherish your home as much as you do, or are you simply not a fan and want to avoid the worry of possible damages that are a hassle and expense to fix?

Around 44% of UK households have pets, but only around 7% of landlords stipulate that pets are welcome in their properties. That's a large discrepancy for a nation of animal lovers, and the Government is looking to make the UK rental market easier for "responsible pet owners" to find a home.

Back in January 2020, Housing Secretary Rt Hon Robert Jenrick MP, said: "Pets bring a huge amount of joy and comfort to people’s lives, helping their owners through difficult times and improving their mental and physical wellbeing. So, it’s a shame that thousands of animal-loving tenants and their children can’t experience this because they rent their homes instead of owning property."

Given our British love affair with pets, why do so many landlords and managing agents shy away from allowing people with pets to rent their properties? Obviously extreme stories that make the news can be grim reading, but so can those of tenants without pets: good behaviour simply doesn't make good news!

So this week's blog looks at the realities of renting to people with pets: what to know, what to ask, and what to consider. As well as showing you how you can benefit from keeping an open mind, we'll provide useful examples of simple clauses and protections to give you comfort in the decisions you take, and to widen your audience to include this ever-growing demographic.

BREEDS APART

If somebody owns an Irish wolfhound then they are obviously not suitable tenants for a small upstairs studio flat, but a large family home with a big garden is clearly capable of sustaining a pet alongside adults and children. It's all about what makes a good fit.

A good place to start is a pragmatic look at the type of property you have, and who it is made for. Is it designed for family use, a single person, or somewhere in between?This will inform you about its potential suitability for tenants with pets.

Next, ask questions about the pet of your potential tenants: nobody is going to be cagey about their darling spaniel if they know they have a well-mannered pooch. You could ask to meet the pet in person before making a final decision (or ask your managing agent to), or even request a video of them at play to give you a real idea of behaviour.

There are plenty of ways to get a proper feel for someone's pet to make a decision you're comfortable with.

PET PEEVES

The reason why most landlords refuse pets is not that they don't like animals; in fact many have pets themselves. The concern is of damage or nuisance, so it's a business decision to minimise potential hassle. Ultimately, it's one less thing to think about.

But accepting pets doesn't necessarily mean leaving everything to chance. Just as you take up references for the people wishing to move in, you can also ask for a reference for their pet. Simply add in a question in your request to their previous landlord.

It has to be said that much bad behavior from animals comes from the conduct of their owners. You probably have friends who provide different types of evidence around what it's like to have pets: some dogs go wild when the doorbell rings, others couldn't care less about human activity until there's a biscuit on offer.

Those same friends might also offer up varying insights of parenthood, from perfectly charming little ones who enrich every waking moment, to screaming tearaways that try the patience of a saint!

The point is that most pets - and children, alas! - reflect their adult guardians. So if you're happy with the people moving in, you can probably give their pet the benefit of the doubt: most leave less of a trace in residence than a crayon-happy toddler.

TRAINED TO STAY

Given the small amount of landlords actively inviting tenants with pets, people with animals regularly find themselves with a smaller choice of rental property to choose from. They're also acutely aware that moving home is unsettling for animals.

These make a pair of highly focusing and motivating factors that draw people with pets to properties they'd like to call home for a long time; they seek permanence.

All this adds up to longer tenancies and, more importantly, reduced or eliminated void periods, which are high on the ' things to avoid' list for landlords. So if you'd like to find a long-term tenant for your rental property, a pet-owner can be a good prospect.

PUPPY LOVE

When you see the true affection and companionship between pets and their owners, it's not so different from the love shown from parents to their children. Indeed, pets very often become an integral part of family units.

In many ways, pets are treated as much as people as they are as animals, from feeding them and talking to them, to going for walks or cuddling up on the couch for a movie.

Seeing how people behave with and around their pets can provide an extra insight into that person's character, beyond that of simply a pet-owner . You could even argue that the relationship between a pet and its owner could give you a deeper understanding of your potential tenants than paperwork and references alone.

SHARPEN YOUR CLAUSE

The tenant fee ban means landlords can no longer charge higher deposits for pets. The amount is now capped at five weeks rent for assured shorthold tenancies up to £50,000 per year.

However, you can certainly add in some extra wording to your tenancy agreement for how people manage their pets when living at your property.

Typical clauses for pets while in residence cover things like fouling the garden, making immediate repairs for damages, and ensuring that animals aren't left alone for too long. You could also include the need to check for - and eliminate - any pests or odours when your tenants leave.

The Dogs Trust provides a template for a clause allowing pets which you can read here:

https://www.letswithpets.org.uk/landlord-and-letting-agency-resources/pet-clause-and-policy

The template includes the type and breed of animal, and you can simply insert it into your tenancy agreement.

You can also download a template for a Pet Policy, to use in connection with your tenancy agreement, here:

http://www.letswithpets.org.uk/downloads/pet-clause-policy.pdf

As well as covering all bases with clauses and wording, you may also find that tenants with pets will pay an additional amount in monthly rent to make up for the deposit being capped. Anyone willing to do so is really standing by their trust in their animals.

As with all tenancies, the most important thing for you as a landlord is to feel comfortable with who you accept to live in your property. It's perfectly possible to maintain an open mind without feeling pressured into anything.

There is no overriding evidence that people with pets are any less caring or conscientious when it comes to looking after their home, and it could be argued that the companionship people look for in animals suggests an all-round caring nature.

It's also worth remembering that the Office of Fair Trading considers blanket bans on pets, without consideration of the circumstances, to be "unfair". In reality you may never get taken up on your no pets position, but with so many possible clauses and protections at your disposal, you could find that an open mind delivers the perfect long-term tenant.

If you'd like to talk about whether to accept pets in your rental property, or if you'd like to discuss any aspect of being a landlord, why not get in touch? You can call us on 0121 427 4777 or email us at info@truemanestates.co.uk - we'd love to help.

PROFESSIONAL HELP: DO YOU REALLY NEED A LETTING AGENT? MAYBE.

183:783684190 (John Trueman) — Wed, 28 Oct 2020 18:22:41 GMT

When it comes to human endeavour, most of us could do almost anything if we put our minds to it. We could service our own cars, repair our own washing machines, and even clean our places of work.

But are we the best person to do those things, and are they the best use of our time and energy? We’d all accept that a car mechanic would very likely do a faster and better job of changing our brake pads or fixing our suspension, but does the same reasoning apply to using a letting agent to care for your rental investment?

As a landlord with one or more properties, you’ll clearly be capable of showing tenants around, carrying out referencing and dealing with day-to-day issues that arise from owning a home where other people live. Your abilities are beyond refute, but could a letting agent add more value to that process?

Let's take a look at five factors that could benefit you and your life when it comes to finding, keeping and managing tenants for your rental property.

READY & WAITING AUDIENCE

Whether they are renting or buying, the vast majority of people in the UK begin their property search using portals like Rightmove to see what's available. Many people never get any further given how easy it is to find a home on the platforms.

Sometimes people contact us about particular houses or apartments they want to see, but we also get regular requests to register for future properties from those who want to be first in line (often the best tenants). Some people even send in requests before they are ready to move to build some sort of rapport with local agents to ensure they are first in mind when a suitable home comes up.

The main property portals only list properties from letting agents, and they only send enquiries to letting agents, which means there is no better way of getting your property in front of the largest number of potentially perfect tenants from day one.

But portals are not the only source of enquiries and we're also often the first port of call when one of our existing tenants is thinking about moving: maybe they want to stop sharing and find a place to themselves, or they’d like to move in with a partner, or they need an extra room to work from home. At this early stage they are invisible in the active market, but are often excellent prospects.

LAW AND ORDER

There are around 145 laws and 400 separate pieces of legislation governing private rental property privately in the UK. That is a lot for anyone to keep up with, even if they are a full-time professional landlord. For somebody with a separate job or business to run, it would be almost impossible to consistently stay on top of every single piece of governance as it changes with each new ruling.

Lettings agents are charged with knowing all the ins and outs of the legalities of private rental property, which means they can help you to avoid common mistakes around referencing, inventories, security deposits, tenancy agreements, notice periods, disputes and much, much more.

We live and breathe rental properties day in, day out. The situations and challenges we encounter along the way help us to alert new and existing landlords of potential pitfalls before they turn into actual problems. The portfolio of properties we care for is larger than that of most individual landlords, which means we have a deeper level of real-life experiences to draw upon alongside our knowledge of the law.

TRUSTED LOCAL CONTACTS

Lettings agents are part of the neighbourhood and part of the lives of people living and working here. Our entire day is spent talking to – and meeting with – our existing and potential neighbours, particularly local business people.

When it comes to soul-destroying tasks, calling round for a plumber, electrician or other tradesperson – when you have no idea of the quality of their work – has to be right up there. Will they turn up on time, or at all? Will they fix the issue, or make it worse? Will you be able to get them back if things go wrong again?

Our list of reliable local contractors and suppliers has been built over years of trial, error and lucky finds. The people who help us maintain and repair the homes we care for are people we trust from our experiences of dealing with them, with some of our relationships going back many, many years and giving us priority treatment when we call.

FORGET YOUR TROUBLES

It’s true that some tenancies run their entire course without a single hitch or hassle, with the only work coming from arranging the annual safety checks and interim inspections. But that isn't normal life, even for owner occupiers.

We all have to deal with maintenance and repairs at home, most of which are only a mild hassle because we receive a direct benefit from the repair of whatever it is that needs fixing. When our oven breaks down, or the roof leaks, we get onto it with enthusiasm and gusto because we are experiencing and seeing the issue in our own environment.

But it’s not the same when it comes to sorting out somebody else’s problems, even if they live in a property you own. Do you want the call at 7am or 10pm when someone's hot water or heating unexpectedly stops, or at Sunday lunchtime when you're sitting down to eat with family or friends and your tenants’ oven stubbornly refuses to roast their chicken?

Problems have a habit of turning up at inconvenient moments; they don't care about your schedule or lifestyle. By having an agent with a 24-hour helpline for emergencies and an army of contractors who can spring into action, problems can be swiftly sorted before they turn into a major situation. We handle the hassle, while you get on with your day, or evening, or sleep.

DIFFICULT SITUATIONS

There are times when problems are not connected with the plumbing, electrics or anything at all to do with your property. Sometimes a change in your tenants’ personal circumstances can add an extra challenge of the human relationships kind, which is often more complicated than maintenance issues.

When tenants start to fall behind with their rent, it can be a very difficult time for everyone involved. As a supportive landlord you’ll want to be sympathetic and understanding, but it can be hard to balance that with ensuring your tenants prioritise their rent, so you can meet your mortgage payments.

If somebody loses their job or runs into other financial difficulties, they can often go to ground from being frightened of the consequences. It’s perfectly normal for people to avoid uncomfortable conversations, whether they are a landlord or a tenant: worry and uncertainty over the prospect of arguments, unpleasantness, resentment or anger can severely interfere with the lines of communication.

A helping hand from a letting agent with experience of similar situations can provide not only welcome relief, but also solutions. Because we are in the middle, it’s often easier for tenants to be clearer with us about their position, without the concern of the conversation getting overly personal or heated with their landlord.

So there it is. Having a letting agent on your side in finding the perfect tenant and then taking good care of them and your property can be an extremely valuable partnership. It’s a feeling that’s strong among our landlord clients and which is why they continue to trust us with caring for their rental investments.

If you're unsure about using a letting agent to either find you tenants or manage your property, why not get in touch to see if you'd like to work with us? You can call us on 0121 427 4777 or email us at info@truemanestates.co.uk - we'd love to answer your questions and to help you make the most of being a landlord.

CLEANING UP: HOW TO DEAL WITH MESSY TENANTS

183:783684190 (John Trueman) — Mon, 12 Oct 2020 16:25:16 GMT

How you feel about messy people? Not just tenants, but anyone who simply isn't very tidy. Do they make you shudder, or are you completely unphased? Maybe you're a huge fan of Marie Kondo and her book, The Life Changing Magic of Tidying Up. It might have inspired you to live a life free of clutter, or perhaps you find it all a bit sterile and take comfort in knick-knacks and keepsakes.

As a landlord you are naturally concerned about the upkeep of your property - and most tenants do take care of where they live - but it can be difficult to keep your mind from wondering whether or not the people living in your property are looking after it in the way you'd like.

So let's take a look at how you can set a tenancy up from the start to give you the peace of mind that care and consideration are high in your tenants' priorities, so you can feel relaxed and rewarded by your life as a landlord.

A TRUE STORY

A very good friend of mine, Peter, is a highly intelligent biology teacher, a talented singer-songwriter and a graduate silversmith of the Royal Academy. He is smart, professional, creative, conscientious... and also really messy.

There are books everywhere in his home: piles of them up the entire length of the staircase; piles on the living room shelves as well as on the floor; piles in the bedroom. There are compact discs - remember those? - spread around his apartment in similar fashion, and notebooks full of musical ideas on almost every flat surface.

We haven't got to his teaching career yet: from learning materials when training to qualify, to current lesson preparation and books on the national curriculum, there is more than plenty on show, while his musicality has gathered six guitars and a mini studio including a few microphones, recording desk, keyboard and speakers.

It's fair to say that Peter's apartment is thoroughly chaotic, but is it dirty and unloved? Absolutely not. He adores where he lives and has been there for more than 20 years. Despite the madness, it feels inescapably like home, which it truly is: because Peter is not a messy tenant; he's a messy owner, and proudly so.

The way he lives might drive you and me to distraction, but he cares deeply about his home - it just isn't necessarily obvious!

CLARITY OF CARE

Handing your property over to tenants with everything working properly and in a good state of repair sets the tone for a successful tenancy. And taking a security deposit for the maximum allowable amount (currently 5 weeks' rent) shows you are serious about getting your property back in a similar state. It's a very clear message.

If you take only a nominal deposit – or worse, no deposit – you not only leave yourself open to unnecessary costs and recovery proceedings later down the line, but you are opening the gates to the small number of renters who couldn't care less about your property and have no intention of looking after it.

Asking people to care for your property is not the same as asking them to be tidy. Your tenants should certainly pay attention to hygiene - particularly around rubbish, recycling and items left outside on balconies or in gardens - but how they live with their belongings inside their home is entirely up to them. Telling people how to live - or hoping that they'll live like you - is simply not a good use of your energy.

CLEAN IT AND MEAN IT

By ensuring that your property is spotlessly clean at the beginning of each tenancy, you are showing signs of love and care for your property, as well as a healthy level of respect towards your tenants. You're saying: "I care about your enjoyment of this home, and this is how I want it back".

Handing your buy-to-let property over as clean and pristine means you can list it as so in your inventory, which gives you a written and photographic record to refer back to, both during and at the end of the tenancy. This liberates you and your tenants from worrying about unfair expectations and demands when the time comes to part company, or to raise a concern.

If you present or hand over your property in a half-heartedly clean fashion, it could look as though you're not really bothered about such things, which may lose you tenants altogether or simply deter the best ones. It also takes far longer to put an inventory together as your tenants and inventory clerk negotiate over wording that accurately reflects the levels of dirt and dust - a total waste of everyone's time.

TAKE A STEP BACK

If you simply can't stop worrying about how tidy your tenants are and find yourself thinking about catching them out with a surprise visit, perhaps it's time to take matters out of your hands.

One of the joys of being a landlord is how the rent from a property can be very much a passive income, leaving you free to enjoy your time as you wish. So if your thoughts are consumed by your tenants, it's worth considering the services of a managing agent: they can make inspections on your behalf and report on any actual problems.

We've found that, for many landlords, out of sight is very much out of mind. Having someone to look after the day-to-day and take an entirely rational and non-emotional approach is exactly what they need to relax and enjoy the rewards of their rental investment.

EMBRACE DIVERSITY

We are bombarded constantly with images of perfectly tidy homes with everything arranged just so, in groups of threes, and without even a stray cable from a lamp in sight.

For the minimalists among us that's a perfectly natural way to live and, indeed, the only way to live. They don't understand clutter, mess, paraphernalia or any interruption of perfectly clean lines. That's totally fine, but go to an architect's or interior designer's home and that's not necessarily the scene that will greet you.

For some people a bit - or a lot - of clutter makes a place feel like their own. For others, particularly families with children, clutter and mess are a fact of life where resistance is frankly futile! For them, a minimalist lifestyle is nothing but a page in a magazine, or a distant future dream.

Busy professionals, perhaps the most desirable of tenants for landlords, often aren't at home enough to be constantly tidy, while others just love having lots of stuff. Anybody with any sort of collection - books, vinyl, DVDs, clothes - is going to have lots of things in their home, but there is no connection between collecting and carelessness. Mostly it's a sign of permanence: they're here, they're comfortable, and they want to stay.

So there we have it: mess is certainly not something limited to tenants, and neither does it signal a lack of cleanliness or care. In fact, it's often a sign that someone is extremely happy where they are, cherishes their surroundings and wishes to remain. Are those not exactly the conditions for a perfect, happy and long-term tenancy?

If you'd like someone to look after your rental property, or you'd like to talk about any aspect of tenancies and buy-to-let, why not get in touch? You can call us on 0121 427 4777 or email us at info@truemanestates.co.uk

We'd love to help you make the most of being a landlord.

HAPPY TOGETHER: CREATING IDEAL LANDLORD-TENANT RELATIONSHIPS

183:783684190 (John Trueman) — Tue, 29 Sep 2020 07:32:42 GMT

As strong as the bonds of any marriage or partnership, our relationship to where we live can take a similar path and have a profound impact on our lives. Having found our perfect match, we look forward to the excitement of living together, making a home and creating memories to look back on with fond delight.

All relationships take work, and bumps in the road are an inevitable consequence of spending so much time in each other's company. Each day reveals more and more character traits as the business of being alive and being together brings both moments of joy, and irritation.

Although landlords and tenants don't share the same home to live in, they do share the same home to care for. And even if they are at different ends of the financial arrangement and tenancy agreement, they ultimately both want the same thing from the property (and each other): to make their lives better.

So let's take a look at how landlords can lay the foundations of long-lasting and easy tenancies, and how to keep a level head when things don't go to plan.

THE HONEYMOON PERIOD

It's good news all round when a tenancy begins: the excitement of a new chapter for the tenants moving in, and comfort for the landlord in having their property occupied and producing income.

The best tenancies, like all relationships, are built on mutual understanding. And the most solid ground for a landlord and tenant is to have an inventory prepared when the keys are handed over on moving-in day.

An inventory clerk will attend, take photos, make notes on the condition of the property and get the inventory signed off by your tenants. This creates an agreed record of accuracy to refer back to when your tenants move out.

Inventories are a sign of mutual respect for both your property and your tenants. An inventory demonstrates that you are serious about being a professional landlord, while also encouraging your tenants to look after your property by giving them a document of how they need to return it.

If nothing else, an inventory helps to minimise emotion and arguments, by replacing them with facts and pictures.

LITTLE NIGGLES

Moving in together is often the start of seeing things in our partner that we'd never noticed before. Similarly, most maintenance issues come up shortly after moving-in day because, as usual when you move into a new home, you always find something that doesn't work quite how it should.

It may have been missed when you bought the property, or when the new tenants viewed, or it might simply never have bothered - or been noticed by - the previous occupants.

Whatever the reason, once the issue has been reported it's best to get on with rectifying things straight away. Very rarely do problems disappear by themselves, and catching them early keeps the size of the job - and the repair cost - down.

You'll also prevent any grudges from forming and brewing over tiny little things.

BEING FOUND OUT

We've all made an extra special effort on a first date. Worn our best outfit; been on our best behaviour; listened more than we usually do. In short, we put on a really good front.

But we can't keep it up forever, no matter how we dress it up. The truth will always out and, when our cover is blown, upset surely follows. The same can be said for looking after your property.

While it pays to be mindful of your costs, prioritising the avoidance of expenditure over doing things right simply leaves the door open for more hassle later. Whether it's taking the cheapest quote from someone doing jobs on the side for cash, or buying the cheapest tap you can find, you'll be compromising on more than quality.

An obviously well-maintained property attracts high quality tenants, achieves a higher rent and encourages the best behaviour. Seeing the pride a landlord takes in their property is a welcome signal to tenants that this could be their home for a long time.

A good managing agent will help you strike the right balance between expenditure and upkeep, often with reliable local contractors and suppliers. This will help you keep your tenants for longer, which means less wear and tear on your property from people moving in and out, saving you further expense and time later on.

GETTING SOME COUNSELLING

We all have thoughts and feelings, but that doesn't mean we always know what to do; in fact it's often an outside perspective that provides the answer. Likewise for landlords: just because you own a rental property doesn't mean you have all the answers to tenancy problems or conflicts.

Being a managing agent can be a bit like being a counsellor: we're always in the middle, with both sides looking to us for resolutions. There is definitely something to be said for having an outside observer and expert at your side: you'll have support and advice with a view that is not only objective, constructive and informed, but also helps you comply with the ever-changing and ever-increasing legislation that governs privately rented property.

Whether it's maintenance, nuisance, arrears or anything with the potential for conflict, there is certainly a lot to know: but you don't need to know everything yourself, to be sure of doing the right thing.

PARTING COMPANY

When Gwyneth Paltrow and Chris Martin announced the end of their relationship, their use of the phrase "conscious uncoupling" was heavily ridiculed in the press as daft celebrity culture. Why couldn't they break up in an explosion of emotion like everyone else?

The majority of tenancies end perfectly amicably, with most tenants looking after the property, and most landlords doing the same. But there are times when disagreements over damages and deposits require a bit of Gwyneth & Chris maturity to save things getting out of hand.

This is where your inventory will prove an essential ally, with a revisit from the inventory clerk on moving-out day to report back with updated photos and notes, again signed off by the outgoing tenants. Without an inventory, you'll find it difficult to withhold any of the security deposit if your tenants dispute your claim. In fact, you'll open yourself to a lengthy process which you'll likely lose with no written or photographic proof.

While an inventory will help you and your tenants to keep it professional, a managing agent will be able to help with reliable local tradespeople to swiftly provide quotes and repairs. This will save you precious time in making your claim so you can agree a sum with your tenants with minimal fuss, then return the rest of their deposit and get your property ready for renting again.

So there you have it: by taking a comprehensive approach to setting up a tenancy, and a professional approach to looking after your rental property to make it an easy home to live in and love, you'll be sewing the seeds of an ideal partnership between you and your tenants.

If you'd like to talk about any aspect of being a landlord, or you'd like to have your rental property looked after for you, why not get in touch? You can reach us on 0121 427 4777 or at info@truemanestates.co.uk - we'd love to hear from you.

BEFORE THE FALL: AUTUMN PREP FOR YOUR RENTAL PROPERTY

183:783684190 (John Trueman) — Mon, 14 Sep 2020 17:27:19 GMT

There's no escaping it: summer is on the way out, and autumn is around the corner. The nights are longer, the weather is cooler, and evenings on the patio mean hoodies, blankets and socks.

As the season changes, there are some checks you can make – and some opportunities to take – in getting your rental property ready for when the temperatures fall, the rains return and your tenants spend more time indoors.

Being on the case now could help you avoid the traditional annual rush of last-minute callouts where overbooked contractors take longer to respond, problems take longer to solve, and relations between landlords and tenants become strained.

So let's look at how to avoid all that unnecessary drama.

TESTING TESTING

There is little more infuriating or disheartening than turning on the heating for the first time after the summer, only to discover that something somewhere has gone wrong.

Usually, everyone switches the heating on when they first need it, rather than doing a test ahead of time. This inevitably leads to engineers' calendars filling up overnight, leaving you frantically calling around while fending off calls and messages from ever-colder tenants with your pleas of "I'm doing everything I can" while trying to get on with your own life.

Unsurprisingly, this does little for landlord-tenant relations, but it can be avoided by asking your tenants to turn the heating on now for a quick check to make sure that everything is working fine.

Is the boiler firing up? Do the radiators need bleeding? Are your thermostats, timers and control panel functioning? Switching everything on for an hour will answer all these questions in good time for getting them fixed.

If your property is vacant you'll need to pop round yourself, or arrange for a contractor, to perform the checks. Heating engineers are usually readily available in late summer, which means you should be able to get maintenance or repairs sorted swiftly.

And even if something does go wrong later on in the season, your tenants will know that you were thinking about their comfort early on, which will at least warm their hearts (if not their home).

GUTTERS, PIPES & DRAINS

While it's unlikely that leaves will be clogging your guttering or drains yet, it's nonetheless wise to check them now and intermittently afterwards to make sure there are no blockages when the autumn rains come. Because when they do, overflowing gutters and blocked drains soon turn into leaks and repair bills.

Ask your tenants to have a quick look around now and to keep a casual eye on things throughout the colder and wetter months. It won't be something that's naturally on their mind, but simply mentioning it will plant the seed: it's really no effort to glance up at a gutter or down at a drainpipe every now and then.

Leaks and water damage are a nuisance at the best of times, but having to fix them when it's cold and wet adds extra misery and inconvenience.

COVERING UP

If you've supplied a table and chairs or an outdoor couch for your tenants, they're going to last a whole lot longer if you also supply covers, or somewhere to store them.

While early autumn isn't necessarily when furniture needs to be put away for the season, its use will become more intermittent as the weather cools and rainy days begin. This means your furniture will take more of a beating if it's left on its own to deal with the elements.

Covers are great because they allow your tenants to keep the furniture out for when they want to use it, rather than having to constantly put it away in a shed or cupboard and then retrieve it again. Anything that's inconvenient tends to get done less, so make it easy for your tenants to look after your things.

You can buy covers very cheaply on Amazon, at B&Q, or many other online and physical stores, and the price will almost certainly be less than the cost – and hassle – of replacing the furniture.

INSULATE YOURSELF

The Government's own figures state that 20% of privately rented properties in the UK are fuel-poor, with the sector having a high prevalence of poorly insulated and energy inefficient buildings.

Warm tenants are happy tenants, as are those with lower energy bills. The last thing you want is your tenants giving you notice when the weather gets colder as they discover your property loses heat faster than taking a cold plunge after a sauna.

The government's Green Homes Grant is available to landlords and provides a possible £5,000 towards increasing the energy efficiency of your property. You can claim up to two-thirds of the cost of your improvements, which not only add value through your Energy Performance Certificate, but can save up to £600 a year on energy bills: a great sell to existing and future tenants.

If you have an older property without modern insulation, the Green Homes Grant is an excellent opportunity to upgrade its energy efficiency without having to cover all the costs. The grant must be used for primary measures like insulation for lofts, walls and floors, but can also contribute to secondary measures including thermostats, heating controls and energy-efficient doors.

You can apply for a voucher from the end of September 2020, so it's worth putting the date in your diary if you have a rental property where the energy efficiency could be improved.

Take a look at the Government's official website for more information:

https://www.simpleenergyadvice.org.uk/grants

STOPPING THE ROT

The sun can really take its toll on your exterior woodwork. But while some peeling paint or varnish might look unsightly in the summer, it can create problems in the autumn and winter.

As well as making your property look mighty fine on the outside, paint and varnish protects your windows, doors and frames from heat and water. So when it gets tired and peels, wood can start to split and rot, which leads to drafts, leaks and replacement costs. There's not really much of an upside!

Painting your woodwork is far less expensive than replacing your windows and doors, while drafts and leaks are inconvenient for everyone and interrupt your tenants' enjoyment of their home.

So give your woodwork the once-over, or ask your tenants to check for any worn out paint or varnish and to send you a few snaps on their phone. It's much easier decorating the outside of your property in late summer/early autumn than trying to get your paint to dry in the rain.

With these few simple checks, and a possible financial injection from the Government, you can set your property and tenants up for the autumn knowing that all is well and ready for the season.

Prevention is always better – and far less expensive – than cure, while the peace of mind from having everything sorted is a priceless quality.

If you'd like to talk about getting your rental property ready for the autumn, or you'd like a managing agent look after things for you, why not get in touch? You can reach us on 0121 427 4777 or at info@truemanestates.co.uk

EVICTION BAN: WHERE EXACTLY DO LANDLORDS STAND?

183:783684190 (John Trueman) — Tue, 01 Sep 2020 16:26:05 GMT

With the Government’s last minute extension of the eviction ban on August 21st, we cancelled our blog on the subject that week because, even with the announcement, it felt like there was so much uncertainty around how events would eventually pan out. Even now, it's possible the ban will be extended further and render this article out-of-date fairly soon, but we thought we could at least provide some reasoned commentary on the current state of play and offer some advice where possible.

Whether you are a landlord with a tenancy that has been affected by Covid-19, or if you’re simply concerned about the future of one or more of your tenancies, it’s worth saying that evictions should be the very last resort when it comes to taking action against tenants.

Even if they don’t feel like it at the time, most problems, – financial, social, neglectful – can be resolved through communication. It may feel like the problem shouldn’t be yours in the first place – and there may be some justification in that – but part of being a landlord is recognising that a time may come when the lives of your tenants will need your action or assistance.

In the midst of all this it would be heartening to see the Government increasing its level of support to landlords: perhaps the tenant loan system adopted by Wales, or Scotland’s interest-free loan scheme for private landlords, could be extended to the rest of the UK, or some other framework created to facilitate rent payments being either paid or insured. But until then, let’s take a look at where things stand right now.

THE CURRENT REALITY

A poll of 1,058 private renters was carried out in June by YouGov, on behalf of Shelter, and suggests that around 5% of the UK’s 8.7million private renters are in arrears. The estimated total of 442,403 includes 226,785 who say they were up to date with payments at the end of March.

On August 12th, the National Residential Landlords Association published the results of their own survey that found that 87% of tenants were up to date with their rent, with another 8% saying they were making reduced payments or had made some other arrangement with their landlord. That survey also showed just over 3% of tenants as building arrears and being unable or unwilling to repay them.

So while the vast majority of tenancies have been unaffected, there are a significant number of tenants who are behind with payments (and that the number has increased over the last five months). For landlords whose livelihoods depend on the rent they receive being paid in full and on time, the extension of the eviction ban and notice period requirements are understandably a cause for concern, particularly with no sign as yet of any extended landlord support.

PRIORITY CASES

While the month extension to the eviction ban tells us for certain that no notice for any eviction will be processed before at least September 21st, it remains to be seen whether that date will be shifted once more. What we do know is that evictions for anti-social behaviour will be prioritised over rent arrears which means that if you have tenants who are behind with their rent, your case may take some time to be heard. It’s therefore sensible to look at other solutions around your own financial situation and you’ll find some suggestions later in this article.

We have zero idea how many landlords are waiting in the wings to issue eviction notices for anti-social behaviour as there are no figures available for non-submitted court cases. The reports and fears of an enormous backlog could well be overly exaggerated given the results of the surveys by Shelter and NRLA, or they could reflect the oncoming reality.

The one silver lining for landlords is that tenants who are exhibiting anti-social behaviour are being pushed straight to the front of the eviction queue, so if you have a tenancy that fits that problem it’s worth gathering your paperwork and submitting your application now for when the courts reopen.

EXTENDED NOTICE PERIOD

Even more headline-grabbing than the extension to the eviction ban was the announcement by the Housing Minister that the period for giving notice to tenants was being extended to six months.

Clearly the Government wants to avoid a wave of evictions in the autumn and to remove the worry of tenants that they may be facing a homeless winter. We suspect there is more news to come around this in the coming months, but the current preference for last minute announcements means we don't expect to know anything very much in advance.

It's worth mentioning here that evictions for non-payment of rent are often a fairly lengthy process in the most normal of times. It can take several months for your case to work its way through the court system and, even then, if the paperwork has been served incorrectly a claim can be immediately thrown out. And if a tenant pays something towards their arrears before the hearing, your claim can be nullified. So eviction proceedings are by no means a panacea.

Perhaps there is a sense in Government that by extending the notice period, landlords and tenants will find a way between themselves to come to agreements around reductions, deferments and catch-ups to negate the need for notices to quit being served.

There is so much uncertainty around absolutely everything at the moment and nobody can say with any conviction exactly what the position will be regarding the UK economy, unemployment, Covid-19, or anything else relating to this extraordinary set of circumstances.

OPTIONS FOR LANDLORDS

If you have a tenancy where your tenants are unable to pay all or some of the rent, there are some actions you can take to ease the pressure on yourself.

Perhaps the first question to ask is whether the situation your tenants find themselves in is actually having an adverse affect on your own finances. With so much dramatic commentary, it can be easy to be distracted from what is actually so.

If you don’t have a mortgage on your rental property and your outgoings are minimal and manageable, you may well find that leniency towards your tenants around rental payments removes the stress, annoyance and expectation from you and them.

Beyond that, it’s vital to have a mature conversation with your tenants to get absolutely clear on their position. If they are furloughed, do they have any indication from their employer about when they will be returning to work? If they are self-employed, is their situation improving as more of the economy re-opens? And are your tenants entitled to apply for any benefits?

You could also ask if your tenants have one or more relatives who could step in (much like a guarantor) to pay some or all of the rent. Sharing the outgoings across a larger number of people could make life more manageable than your tenants trying to handle it alone.

If you do have a mortgage on your rental property, speak to your lender to see if they are willing to be flexible around extending your mortgage holiday, or if they’ll accept reduced payments while your tenants are in arrears. You could also explore whether refinancing is worth your while with interest rates at historic lows: you may find you can reduce your payments and/or release some equity as a cushion without needing to enter into an arrangement with your lender.

There is also nothing stopping you agreeing to your tenants moving out early and at short notice if they wish to avoid their arrears increasing any more. Just because the notice period has been extended doesn’t mean your tenants are forced to stay, and them moving out quickly will free you up to find new tenants in a more stable position. Even if they don’t mention this solution to you, you can still offer it to them.

PLANNING FOR PROBLEMS

Most tenancies are in perfect shape with either no rent arrears or with an acceptable arrangement in place, but you may wish to make a plan in case the situation with your existing tenants changes for the worse, or to begin any new tenancies with as much certainty as possible.

If you have a vacant property and are looking to minimise your risk with new tenants, your best course of action is to conduct thorough referencing to ensure you are completely happy with the status of whoever is looking to rent your property. This should be standard procedure for everyone at all times, but there are plenty of cases of private landlords accepting tenants on a handshake. Now more than ever is the time for extra diligence.

You could also insist on a guarantor for any new tenancies to give yourself extra comfort in the event of your tenants experiencing financial distress in the future.

Another option to consider is taking out rent guarantee insurance where you pay a monthly premium and then receive your rent in full in the event your tenant stops paying. These policies are not inexpensive but may give you sufficient peace of mind and a level of certainty to make the outlay worthwhile.

So there you have it. Evictions do not have to be an inevitable outcome and sustaining tenancies wherever possible is in everybody’s interest and ultimately the least amount of work (even if it means some negotiation around what is a workable solution for everyone involved). Nobody expects tenants to bear the full brunt of Covid-19, but landlords shouldn’t be expected to either.

If you’d like to talk about any aspect of being a landlord or the effects of the eviction ban on your tenancies, you can call us on 0121 427 4777 or email us at info@truemanestates.co.uk. We’d love to help you make informed decisions.

COSTS OF CARE: WHAT ARE LANDLORDS RESPONSIBLE FOR?

183:783684190 (John Trueman) — Tue, 18 Aug 2020 11:35:38 GMT

Being the owner of a property comes with the associated costs of looking after it, whether it's your own home or a rental investment. Just as with us humans, your property will show signs of age as it gets older, some of which will add a natural character that makes it all the more attractive, and some of which will need regular attention to keep things looking their best.

Most responsibility for maintenance and repairs by landlords is fairly clear cut: things that are either a part of the structure (windows, brickwork, gutters, roofs, drains, doors, etc), and things that are supplied by you (kitchen cupboards, appliances, bathroom fittings, pipework, electrics, boilers, furniture, etc) are your responsibility to maintain, repair or replace as necessary through natural usage, but what about other parts of your property and when the unexpected happens?

Knowing what you are responsible for as a landlord means you can budget for ongoing maintenance to keep your property looking great, and also to sustain and increase its value. It will also help you avoid unexpected financial shocks, to be clear with your tenants over who pays for what, and to create a healthy relationship with your tenants around mutual respect for each other and your property.

The key thing is clarity from the outset: for you as a landlord when working out your costs, and for your tenants in knowing how to deal with anything that may arise during the course of their tenancy.

It's also essential to make a detailed and accurate inventory at the start of each tenancy that is signed by you and your tenants to help both parties reach an agreement in the event of any disputes.

So let's take a look at five common areas of costs and who is responsible for them.

COMMUNAL AREAS

It's the responsibility of landlords and owner occupiers to ensure that any communal areas are properly maintained, cleaned and repaired wherever necessary.

It's very easy for these areas to become neglected, particularly when properties are rented out, but having them well maintained has a number of benefits: it sends a good message to tenants that looking after things matters; it helps to attract better tenants in the first place; it adds value to your property should you decide to sell or refinance.

So it's wise to have an agreement over what can and can't be left in communal areas – and how they should be used by residents and visitors – to ensure that everyone sees the value in keeping things looking great.

WEAR & TEAR

Even in your own home – and even as the most careful of homeowners – the act of simply living somewhere causes wear and tear on a property. Moving around and using things will always leave their mark and it would be an impossible ask of even the most fastidious person – whether tenant or owner – to maintain a state of absolute perfection throughout their time in residence.

Things like minor scuff marks on walls, faded paintwork, light scratches on timber floors and worn carpets are natural occurrences and are not something you would normally charge a tenant for. They should be accepted as costs that come with owning a property and that are compensated for by receiving an income from the people living there.

Budgeting for periodic redecoration is very sensible and the pride you take in presenting your rental property to the market will always help you attract the best tenants and rent.

BREAKAGES & DAMAGE

Accidents are a fact of life and whether you're living in your own home, or you're a tenant living in someone else's property, the chances are that something at some point is going to happen.

As with most accidents, the person who causes it is the person who is responsible for it, and you may well find that your tenants simply get on with the job of repairing whatever it is they broke or damaged with nobody being any the wiser.

If a breakage or damage is reported to you then, depending on your relationship with the tenant, you may choose to let them simply get on with sorting it out, or you may wish to to obtain quotes yourself and then agree a cost with the tenant.

Remember that tenants are only responsible for the breakage or damage they cause. So, for instance, if they were to damage a section of timber flooring, they would not be responsible for the entire cost of replacing the whole floor if that was the action you decided to take.

Tenants do have the option of liability insurance to cover any items supplied by the landlord, so you could make that clear to them at the outset of the tenancy.

NEGLECT

Neglect is a two-way street. A landlord may neglect their property by failing to maintain it and make repairs, while a tenant may neglect a property by either misuse, or by failing to report an issue early on which then becomes a bigger deal.

As a landlord your best course of action is to take an interest in looking after your property to set a good example to your tenants, and to make clear the importance of reporting issues early to save them becoming responsible for a bigger bill that could have been avoided by saying something sooner. This is particularly important with any matters involving water or electricity: very often a small leak can be prevented from turning into a deluge by getting to it fast.

It pays to inspect your property during a tenancy in case something has gone unnoticed, because it's difficult to prove that a tenant has deliberately kept you uninformed of something they knew about for a long time.

PRIVATE GARDENS

Usually speaking it's your tenant's responsibility to maintain any garden that is private to your property, so it's sensible to make it easy for them by having a garden that is easy to care for: e.g. outdoor areas that are paved or decked require far less maintenance than lawns.

If you do have a garden that is more complicated and stocked with a wide and varied range of plants and flowers – this can be the case for landlords who rent out a property that was once their home – and where it's important to you that it's kept looking its best (maybe you intend to move back in later on), then you could decide to include the cost of a periodic visit from a gardener within the rent. Or you might get lucky and find a particularly green-fingered tenant!

For communal gardens, the costs of maintaining these are usually covered within a building's service charges.

Hopefully we've given you a really clear perspective on your responsibilities when it comes to the upkeep of your rental property, but if you'd like to talk about any aspect of maintenance or being a landlord, we'd love to help.

You can call us on 0121 427 4777 or email info@truemanestates.co.uk

CHOICES CHOICES: HOW TO CHOOSE A BUY-TO-LET PROPERTY

183:783684190 (John Trueman) — Mon, 03 Aug 2020 08:54:05 GMT

What kind of property makes a good rental investment? Is it better to buy an old or new home? What sort of location will attract the tenants you want? And what should you look out for to avoid buying into hassle? These questions and more are answered in this week's blog to help you identify the right kind of property to begin or expand your portfolio

While there's probably a person for any property if the price is right, being a landlord is about getting the highest, rather than lowest, return. So when you're choosing a buy-to-let property, your priorities should be regular and continued occupation combined with ease of finding tenants, which means anything too specialist, no matter how lovely, might prove to be hard work.

Staying focused on properties that will work as a business is the way to make your landlord life as easy and profitable as possible.

FLATS ABOVE SHOPS

In the residential sales market, flats over local parades of shops - often in Victorian or 1930s buildings - are among the least in demand from owner-occupiers. There is little cache in living above the dry cleaners or newsagent, and many people don't want to buy a property on a main road.

But the other side of the coin is that shopping parades are usually in the centre of a neighborhood, which immediately makes them convenient for socialising, shopping and public transport — three important factors for tenants — and can make them easy renters.

Flats above shops - along with properties on main roads in general - are often larger than their conversion counterparts in the residential side streets, giving you more floor space for your money and potentially more rent. So if your business model concentrates on yield, rather than capital return, these can be a good choice for a landlord.

Be mindful of the types of businesses that occupy the ground floor, both directly below that flats and in the adjoining buildings. Does a shop have access to any of the communal areas for the flats? Is there a takeaway pumping out smells that drift up through the building or past the windows? A cool coffee house is different to a late night kebab shop, so make sure you visit when the businesses are open to get the full picture (and smell!)

CONVERSION APARTMENTS

Victorian, Edwardian and Georgian houses that have been converted into apartments are really popular with renters and owner-occupiers alike, meaning plenty of demand when you're looking for tenants, and also whenever you come to sell. From a resale point of view, the more original character the better, but you'll definitely pay for it.

One of the major appeals of conversions is the low service charges they attract because there are usually no facilities to maintain. However, that can translate into owners with no interest in spending any money on looking after the building. Check for tell-tale signs of poor management: scruffy communal halls with threadbare carpets; neglected exterior decoration; overgrown garden areas.

If the freehold has been bought by the owners of the flats, they could collectively decide to keep the expenditure to a minimum, rather than the upkeep to a maximum. Alas, landlords can be the main culprits as they don't have to witness the building's dishevelled state every morning and evening. And when there's no-one enforcing the maintenance covenants of the leases, things will inevitably deteriorate.

That doesn't mean there aren't beautiful examples of lovingly maintained period conversions owned by people who take genuine pride in their building, but it's worth asking how many of the apartments are rented and how many are lived in by their owners. This could give you a flavour of how easy it will be to keep things looking their best.

Finally, listen for sounds of other neighbours. Older conversions are notorious for their lack of soundproofing, and, if the conversion was carried out before the 1990s, it's possible that sound transference will be an issue. Some people don't mind it and see it as a part of life, but it can become an unresolvable conflict between residents and result in regular changes of tenancy.

PURPOSE BUILT FLATS

Over the last 20 years or so the standard of newly built property has increased dramatically in the UK, with many new developments focusing on contemporary architecture, high quality specification and sleek design.

Buildings with residents facilities, from lifts and gardens to gyms and porters, have created an entirely new housing stock that's been taken up with enthusiasm by young professionals and creative people. This audience favours a modern, forward-looking and energy-efficient lifestyle away from the drafty and creaky character of older buildings.

Check for hefty service charges and good management as these buildings and their extras don't necessarily come cheap, but when well managed they are extremely popular with both renters and owner-occupiers. As modern architecture moved on from 80s & 90s new builds that tried to emulate older buildings, those pastiche developments with fewer facilities attract lower sales values, but they're not at all bad from a yield perspective.

Finally, purpose built apartments from the 30s, 60s and 70s are once again in vogue and finding favour with fans of art deco and mid century design. Obviously with older buildings it's sensible to ensure that good management and regular maintenance are in place, and whether any large bills for major repairs are on the horizon.

LITTLE HOUSES

The two-up two-down Victorian cottage is a staple of the rental market and offers a perfect layout for a pair of sharers with bedrooms that are generally fairly equal in size: this removes conflict and injects fairness and longevity into the tenancy. Also ideal for couples and young families, they are an endearingly popular choice and well worth your time as a buy-to-let investment.

Where we'd advise caution is for little houses with an extremely tiny third bedroom, because they won't appeal to the widest section of the rental market. When a third bedroom has been squeezed in, but where the accommodation isn't really designed for a larger household, that room can become the runt of the litter: perhaps no-one will want it as their bedroom; or the occupant will frequently change; or your tenancies will regularly end.

We advise going classic and sticking with what's proven to work by having double bedrooms wherever possible. The exception would be if a house was an absolute bargain, or had a particularly special quality: maybe a unique architectural style, or an exceptionally in-demand location that would give a high capital return.

BIG HOUSES

The classic 1930s semi and Victorian terrace have a firm place in the hearts of Brits, from sharers, families, couples, and almost everyone else. While many people at this stage of life are becoming homeowners, there's still a very decent demand in the rental market for the UK's most populous — and popular — houses.

If you're looking to rent a big house to sharers, your priorities should focus on proximity to transport followed by what's nearby for going out, meeting friends and having fun. Victorian terraces often have all double bedrooms split across multiple levels, which gives tenants extra privacy for an all-adult household.

Remember that the more sharers you have, the bigger the chance of individuals moving on as different lives take different directions. While the tenancy might not end, the people living in the property could well change which can result in extra wear and tear.

For renting to families, 1920s and 1930s houses with a mix of double and single bedrooms are a good fit. Your smartest move is to check for good local schools - by far the biggest driver for this part of the market - along with on or off-street parking (possibly for more than one car).

Streets and homes in the catchment areas for the best schools are among the most in demand and most expensive to buy, but focusing on the wishes of parents to provide the best education for their children is a good long-term strategy for rental demand, capital growth and easy saleability later on.

If you're looking at buying a modern house to rent out, apply exactly the same logic as above around bedroom sizes, location, nearby facilities and likely tenants.

Has this helped you get closer to a decision around the sort of buy-to-let property that's right for you?

Whatever stage you're at in being a landlord - looking for your next property; ready to rent one out, or looking to employ or switch agents - we'd love to help you get things right.

PROFIT OR LOSS? GETTING YOUR BUY-TO-LET FIGURES RIGHT

183:783684190 (John Trueman) — Thu, 23 Jul 2020 07:29:18 GMT

So, you've found the perfect property as your next – or first – buy-to-let. It’s in fantastic condition, perhaps even brand new, and the place is ready to go and ready to rent. There are no furnishings to buy, no kitchen appliances needed, and nothing needs attending to: all that’s left is to find a tenant, watch the rent come in, and enjoy the proceeds. Or is it?

There’s a lot more to consider when buying a rental property to make sure you’ve accounted for the full level of expenses. Not just the initial purchase costs, but also mortgage repayments and terms, ongoing maintenance, income tax, any service charges, ground rents and, of course, having a contingency plan for when the unexpected happens (which it probably will at some point).

Many of these expenses seem to either come as a surprise or get missed off the list, so we’ve put together this article to run through the common costs that landlords encounter to help you budget appropriately.

Different landlords have different priorities for their rental properties: some choose long-term capital growth over the monthly rental income, while others prefer a higher initial yield to either expand their portfolio further, or spend on their lifestyle right now.

Neither model is right or wrong: whatever works for you, is whatever works for you. But whichever route you pick, it’s important to be sure of exactly what your outgoings are – and what you should plan for – to ensure you’re not left disappointed, over-committed or constantly irritated.

As a very general rule of thumb, you’ll find that higher initial rental yields usually come from lower-value homes or cheaper areas. So while you might have more money to spend today, the value of the property may not increase as much as one in a more expensive location.

This blog is not to tell you what yield to expect or to aim for, because everyone reading this will have different considerations. The article is to give you clarity on the most common areas of expense so you can plan for the best experience as a landlord.

LEGAL COSTS

It costs money to buy a property, from conveyancing costs and mortgage application fees to Stamp Duty and the second home higher rate surcharge. These costs form part of your investment alongside the purchase price and are unavoidable, so make sure to calculate them fully to avoid scrabbling around for funds when completion day comes.

Right now, until March 2021, you can save up to £15,000 in Stamp Duty on the first £500,000 of a property’s value. While you will still need to pay the 3% surcharge for second homes, you could put the savings on Stamp Duty towards renovations: they may even make a purchase possible that was otherwise off the cards.

IMPROVEMENTS

If you're buying a property to renovate before renting it out, make sure that you cost everything fully and that you have the money at the outset to pay for building works and materials. Embarking on a project with the expectation of funds at a later date is a risky strategy, unless you have a guarantee over when that money will arrive.

When undertaking any renovations, the important thing is not to over-improve, or under-improve. Think about the likely occupants and the likely wear and tear on your property, then balance your expenditure with both durability and the aspirations of your audience.

Over-specifying for the area or the likely tenant is simply money down the drain, but it will also be costly, time-consuming and actually quite boring if you constantly have to replace cheap appliances because they stop functioning, or if the rent goes down because the specification simply doesn’t stand up to life.

We are more than happy to help you strike the perfect balance between attracting the best tenants, improving the value of your property and not splurging on needless costs.

MORTGAGE PAYMENTS

A mortgage is an efficient use of low-cost borrowing which reduces your capital outlay and allows you to buy more and/or higher value property. However, whether or not you have a tenant living in your rental property, your mortgage will still need paying, and interest rates are not set in stone.

Today, mortgages are cheaper than ever, which makes higher borrowing an extremely attractive proposition. But when mortgage rates are low, even a slight increase in the base rate can translate to a significant difference in your repayments, so keep that in mind when deciding how much of the property’s value you want to hold as debt, against how much of an equity cushion will give you comfort and breathing space.

You should also consider how long you are likely to hold a property when choosing whether to take a fixed rate loan and for how long. Fixed rates are great for budget planning, but they almost always come with an early repayment penalty in the event that you decide to sell before the fixed rate period is up.

So think about how far into the future you want to commit yourself: if you’re absolutely certain you wish to hold a property for the long term, a 5 or 10 year fixed rate could be a good move. But if you think you might trade in a couple of years, perhaps a 2 year tie-in is more appropriate.

For borrowing on renovation projects, some landlords take a standard variable rate loan for the initial purchase, then remortgage at an attractive fixed rate based on the higher value of the property once works are complete.

As with all borrowing, talk to an expert to fully understand your options.

MAINTENANCE & REPAIRS

It is really surprising how many landlords don't make any allowances for things like service charges, ground rent, ongoing maintenance and repairs. Whatever type of property you buy, whether it’s a freehold house or a leasehold apartment, it will need looking after.

Annual gas safety certificates and five-yearly electrical certificates are mandatory and should form part of your calculations, along with any other service contracts for equipment and appliances that require regular maintenance.

Depending on the sort of property you are buying, annual service charges could be extremely low, or fairly high. A converted flat in a Victorian house with just a communal hall to repaint every few years won’t have much of a service charge, but you should check how well the building has been looked after. A lack of maintenance up until now could mean a hefty repair bill down the line.

For apartments in buildings with plentiful facilities like residents gardens, lifts, a concierge, or cleaning for windows and communal areas, you will usually attract a higher rent and more affluent tenant, but again those costs are coming whether or not your property is occupied. These sorts of apartments often sell to landlords who look at long-term capital gains, so decide whether that suits your own business model.

And for freehold properties with no service charge, it doesn’t mean that regular maintenance won’t be required: the weather will still have an effect on the exterior paintwork, and the interior will still be subject to wear and tear.

Looking after your rental properties will not only keep them popular with tenants, it will help you achieve a higher rent and ensure the value of your property keeps up with the rest of the market.

TAX

The rent you receive is a taxable income and it would be extremely wise to work out your likely tax at the beginning of a tenancy and to put that sum aside each month so it’s ready for when you submit your return.

The rules around allowable expenses are different for residential lettings and holiday lettings, but there are nonetheless a number of costs you can claim for including agents’ fees, service charges, insurance, maintenance & repairs, accountants fees, and interest on property loans.

For furnished lettings you can also claim for the costs of replacing furniture or appliances, but you cannot claim for improvements to your property beyond wear and tear.

Full information is available at: https://www.gov.uk/renting-out-a-property/paying-tax

AGENTS FEES

You have many choices when it comes to choosing whether or not to use a letting or managing agent, from how many of their services you wish to use, to how much you wish to take on yourself.

You could ask your agent to simply find you a tenant and then leave you to it; you might want the rent collection handled while you deal with repairs, safety checks, service charges, etc; or you might want everything done for you so you can get on with your life while all the administration and maintenance is taken care of.

Whichever option you choose, make sure that you are fully informed of the costs and have taken them all into account in your calculations. It’s wise to consider this before you buy: think carefully about the sort of landlord life you want and the sorts of responsibilities you wish to retain. Balance the costs against your time and your lifestyle to discover exactly what works for you.

To sum up, whether you are letting your property yourself, employing an agent to find you a tenant, or using a full management service, make sure you thoroughly cost your purchase, legal, improvement, maintenance and tax expenses.

Our advice is to always be guided by actions that will continually support the growth in the value of your property. This means attending to any maintenance issues as they come up to ensure they are dealt with when they are smaller and cheaper, rather than waiting until they become an expensive undertaking. Take as much pride in your rental investment as you do your own home.

One of the simplest formulas to work out whether a property is viable as a buy-to-let investment for you, is to assume one empty month per year to cover either vacant periods or unexpected maintenance.

While it’s a nice thought that a property will never be empty or never require any expenditure, it isn’t a sound business model and could leave you open to financial stress and emotional annoyance. So always do a reality check to ensure the property you want to buy is a good fit for your model, and will give you the return you hope for.

If you’d like to discuss anything about being a landlord, or you have a rental property you’d like us to look after for you, please give us a call or drop us a message.

THE RIGHT ONE: HOW TO ATTRACT THE BEST TENANT

183:783684190 (John Trueman) — Mon, 13 Jul 2020 09:52:48 GMT

The biggest concern for every landlord is that the person or people living in their property. will look after it and pay their rent. Having to deal with arrears, damages and lack of care is a hassle that nobody wants, and constantly worrying month to month if the money is in is no way to enjoy being a landlord.

Most tenants treat their homes with respect and we have very few problems here. A lot of that is down to our referencing procedures, but it’s also down to the way landlords look after their properties to attract the best people to live in them. Not only will you achieve a higher rent with a well-maintained property, you will also attract tenants who value a higher

standard of living: anyone who doesn’t simply won’t want to pay for it.

With home ownership currently in decline in the UK, more and more people are renting and for the longer term. This means that tenants now look at rental properties with a different eye: as somewhere they might live for many years, rather than as somewhere more temporary.

This benefits you as a landlord through less wear and tear on your property as fewer people move in and out, but also means that tenants pay more attention to the quality and condition of a property.

As with almost everything in life, quality attracts quality and there are several factors that decide the types of people you will attract. So let’s take a look at how you can achieve the best tenant, best rent and best result for your property.

LOCATION & LIFESTYLE

When it comes to choosing where to own a rental property, it’s important to match the location to the types of people you want to attract. While there are always exceptions to every rule, our advice would be to take the easy route: go with a location that will attract the largest number of potential tenants from the audience you want to reach, to give

yourself the widest choice of people to choose from.

Professional tenants often prioritise how easy it is for them to get to and from work, so good transport connections will be important. They’ll also look at the local social scene for their time off, so if you have a property in mind to purchase as a buy-to-let, it’s worth looking at what’s nearby in terms of pubs, cafes, restaurants and shops. Easy maintenance will also be important for busy people; perhaps a balcony, terrace or patio where all they need to do is put down a table and chairs, and perhaps a pot or two.

If you’d like to capture the family market, looking at the Ofsted website for schools with good and outstanding ratings is an excellent way to narrow down your search radius. The most popular schools often have catchment areas which drives up demand for those streets, ensuring a ready supply of motivated tenants. Working families will also take into account transport connections, and will probably want a reasonable size of garden for children to play in.

Ask us for advice on locations that are popular with tenants in your chosen marketplace.

CONDITION

There is absolutely no question that by maintaining your property well, you will attract the highest-quality tenants. You’ll be sending out a message that you are a landlord who cares, and that you expect your good work to be respected and carried on.

Very simply, people will pay more rent for a property that is well cared for than they will for one that isn’t, so, in between tenancies, make sure to bring your property back up to scratch by checking for signs of wear and tear and making them good. Even small scuff marks on walls or woodwork can negatively impact the look of a room, yet they are easy to remove or decorate over to bring things back to their best. Likewise, deal with limescale and/or mould around tiles: another simple win.

Three simple rules to remember are: if something needs replacing, then replace it. If something is broken or doesn’t work properly, then fix it. And if something detracts from the look of your property, then put it right.

The key is to ensure that people are not left wondering whether living in your rental property would be a life of compromised practicalities or enjoyment. If one of the burners on the hob doesn't work, that is going to become frustrating and could even put someone off entirely. If showering is an unpleasant experience because the hose leaks or the thermostat has ‘a knack’ to make it work, you're not going to have long stays or generate much goodwill.

So think about the benefits of attracting good tenants and the ongoing value of your property, as well the upfront cost of repairs and maintenance.

PRESENTATION

From photographs to viewings, the odds are well and truly in favour of a well-presented property. And whether yours is empty or furnished, there are things you can do to create exactly the right impression and enthusiasm among quality tenants.

First things first, make sure your property is clean and smells clean. This goes for every rental home but is particularly important in empty ones with no furniture or belongings: when everything is bare, all eyes will be on your walls, floors and fittings. Most tenancy agreements stipulate that tenants should have the property professionally cleaned for checkout, so make sure you hand your property to them as clean as you’d like it returned.

In furnished lettings, it can be hard to convey a sense of home when a property isn’t lived in, but you can certainly improve things with a few well-placed accessories (properties that are furnished, staged or in some way dressed, regularly attract higher levels of interest).

A couple of cushions on the couch; a rug on the floor; bedding on a bare mattress… These can radically improve the look and feel of your property, both in photographs and on viewings. Then they can then go back in a box – or back to your home – once they’ve served their purpose, leaving you with a set of photographs to use again at a later date.

Another benefit to presenting your property well at this stage – whether furnished or not – is that by drawing in better tenants, you may well find their taste in furniture or accessories makes your property look even more special. So whenever they do eventually give notice, you could photograph your property with their belongings for a stylish set of images to pull in the crowds next time.

MARKETING

After investing your time and money in all of the above, wouldn’t it be a shame for no-one to find out about your property?

You might be surprised to learn that not all lettings agents are on the property portals. As the place where most tenants begin their home search, the property portals are an essential tool in reaching the largest number of people as soon as your property hits the market. They're also a great resource for us to build a list of waiting tenants to contact as soon as we list new homes.

So check with whichever agent you are thinking of using to make sure you won’t be missing out on the largest supply of potential tenants. Many tenants never get further than a portal before they find somewhere, so it’s vital to reach people at stage one, rather than waiting on the shelf and hoping they’ll eventually start wandering up and down the high street in search of a home.

Treat the essential information about your property as part of the marketing. Supply the details tenants will be interested in to help them make a decision and to show them they’re getting a professional landlord. How much the council tax is; recent utility bills; how the heating and boiler work; a list of local amenities. They might not need it all now, but getting those questions answered immediately removes delays and uncertainties.

REFERENCING & TERMS

Now that you’ve done your part, it’s time to give yourself comfort that whoever is asking to live at your property is as good as they seem.

There are cases of private landlords taking someone’s word for where they work and how much they earn. Some are too trusting to take security deposits and even hand over keys on a handshake rather than with a signed tenancy agreement.

While these might be lovely qualities, you owe it to yourself to be as sure as you can be that the people living in your property are capable of paying the rent and are responsible tenants. You also need an enforceable legal tenancy agreement to properly deal with any problems that might arise, no matter how unlikely.

The most important step in agreeing to rent your property to someone is the referencing process. We perform checks on the employment history, rental history and credit history/rating of every adult who will be living at your property to build an accurate picture and to recommend to you that you proceed.

If you are unsure about anything, don’t be afraid to ask questions. Most tenants are very open about their lives and will be happy to answer any concerns you may have around how someone is likely to look after your property.

We also make sure that we receive a security deposit and the first month’s rent in cleared funds before keys are handed over. We don’t allow tenants to pay their security deposit in instalments: that could be a red flag over someone’s financial position, and can add complications around the tenancy deposit legislation.

With due diligence and with presenting your rental property to its very best, you’ll find you attract the quality of tenant you desire, no matter what sort of property you are renting out.

If you have a property for rent and you’d like us to help you find new tenants, or if you’d like any other advice around being a landlord, we’re here to help – just drop us a line or give us a call.

RULES & REGS: LETTINGS LAWS & LEGISLATION

Mon, 29 Jun 2020 09:47:19 GMT

LETTINGS LAWS AND LEGISLATION

Did you know that there are more than 140 laws and 400 pieces of legislation covering rental property in the UK?

There was a time when lettings was seen as the easier side of estate agency, with sales having the image of more experienced or skilled people. But with the increase in rules and regulations around property rentals, the status of lettings has been completely transformed. Now, landlords and agents need to be thoroughly on top of exactly what is required of them, with hefty penalties for those who fall short.

The extra legislation has helped to improve the quality of rental property and to reduce unsavoury practices within the rental sector. While most landlords take a natural pride in the quality of their rental investments, there was relatively little in place until fairly recently to legally ensure that rented properties were actually habitable. But the declining trend in home ownership among people in their 30s and 40s has resulted in higher tenancy levels and consequently more attention.

Obviously we can't go into every rule and regulation here. Many are common sense and dealt with in standard tenancy agreements, but these are the five areas you'll most likely encounter as a landlord and that are essential to understand to give your tenancies a good beginning, middle and end.

GAS SAFETY

Most landlords are familiar with current gas safety regulations as they've been around since the 1990s and have remained fairly constant, but there's no harm in reiterating their requirements.

Every rental property with a gas supply must have a Gas Safety Check every year carried out by a Gas Safe registered engineer which covers all gas appliances, pipework and flues supplied by the landlord. That includes the boiler, the oven and/or hob, and tightness testing for gas meters.

The inspection can be carried out up to two months early and the new certificate can be pre-dated to commence at the end of the existing one.

Your certificate must be available for the tenants to view and it's illegal for a property with gas to be let without a safety certificate. Doing that could lead to a criminal prosecution.

ELECTRICAL SAFETY

Despite the Government withdrawing its latest tweaks to the Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020, the law itself will still come into force.

ARLA Propertymark - the Association of Residential Letting Agents - felt there were too many inconsistencies in the Government's latest wording, leaving too much open to interpretation and little clarity among landlords and letting agents over what the amendments actually meant.

Nonetheless, all new tenancies that begin after 1st July 2020 must have a valid EICR (Electrical Installation Condition Report), and all existing tenancies must have an EICR by 1st April 2021. The reports are valid for a maximum of 5 years and every property must have a valid report for the duration of the tenancy.

Many older homes may not have had their wiring tested for a long time which means that, given all remedial works must be carried out by a certified electrician by the time a tenancy begins, it's wise to have the inspection booked in as soon as you know an existing tenancy is ending.

As yet, failing to comply is not a criminal offence, but it is costly, with fines up to £30,000.

PROPERTY INSURANCE

You may find this surprising, but landlords are not legally required to have buildings insurance in place for their rental properties. However, it would be crazy not to have it and, for any property where you have a mortgage, it will certainly be a condition from your lender that buildings insurance is in place. They may also require sight of the policy. Standard Assured Shorthold Tenancy agreements will also state that buildings insurance is in place, so you'd be going against accepted practice - and probably raising alarm! - by asking for that clause to be removed.

It's also sensible to insure your contents against an unforeseen loss that isn't a tenant's wrongdoing (a leak; an electrical fault; theft). Even an unfurnished property will have a bathroom and kitchen where something might need replacing, or that may require rehousing your tenant while repairs are carried out. While your tenant would still be liable for paying their rent to you, you are responsible for the costs of rehousing the tenant, although only up to the value of the rent (they'd need to pay the extra if they fancied a few nights at the The Ritz!)

The deepest level of insurance goes on to cover non-payment of rent.

GIVING NOTICE

Although you're allowed to give notice at the beginning of a tenancy to vacate at the end of the term, doing so means you can't then exercise any break clause if you wanted to serve an earlier Section 21 notice (one that requires no reason). So we don't recommend it.

The Coronavirus Act means that landlords currently need to give three months’ notice to end a tenancy instead of the usual two, and this will be the case until at least the end of August 2020. Depending on the next review, it's very possible the increased notice period will be extended. This means you should start thinking about your approach to renewals around four months before the end of a tenancy.

The tenant eviction ban has also been extended to the end of August 2020, which means that Section 8 notices (for which the menu contains no less than 14 grounds, including things like rent arrears of two months or more, illegal activities, and being a nuisance) are also on hold.

DEPOSITS & DISPUTES

Most tenancies end quite amicably with minimal or zero deductions. Tenants generally look after their home, and landlords generally don't look forward to the prospect of repairs.

However, in the event that you do wish to retain any or all of the security deposit, there are timescales and procedures to follow. It must be said that without preparing a full inventory and having it signed by the tenants at the start of a tenancy, a landlord's life will be much more difficult with the chances of claiming successfully reduced to almost zero.

You must advise your tenants within ten working days of the end of tenancy that you wish to make a claim. For claims less than the full security deposit, the undisputed sum should be returned within twenty eight working days of the end of the tenancy.

We always look to negotiate direct with the tenant before going to arbitration, mainly because it's usually possible to find agreement, even if it takes a bit of work! But it's also worth noting that, once you agree to arbitration, you instantly remove the possibility of going to court.

For a dispute to go to arbitration, both the landlord and tenant must agree to it. The landlord then has fourteen days to supply quotes and make their case, after which the tenant has fourteen days to respond. The arbitration service will come to a decision, and their ruling is final.

We hope you've found this article useful. If you'd like to read more about current lettings legislation, you can visit the Government's official website at https://www.gov.uk/browse/housing-local-services.

Or you could contact us for a chat about your rental property, or to talk about becoming a landlord. Wherever you're at, we'd love to help.

TEN TIPS ON BEING A SUCCESSFUL LANDLORD

183:783684190 (John Trueman) — Mon, 15 Jun 2020 17:01:04 GMT

Ten tips on being a successful landlord

Being a landlord can provide a useful stream of income combined with an appreciating asset to help you build a small or large portfolio and plan for a comfortable retirement. We wouldn’t call it an entirely passive income, but it certainly doesn’t have to be hard work.

For the purposes of this article, we’re defining a successful as profitable, enjoyable and easy. Profitable means a good income with minimum voids; enjoyable means a healthy relationship between landlord, agent and tenant; easy means minimal time, effort and drama.

If that sounds like the sort of experience you’d like as a landlord, this article should set you on course for success when letting out your property. It can ultimately be summed up with the phrase "make it easy on yourself": landlords who take care of their rental property tend to bring out the best in their tenants, which means the tenants tend to stay longer. That in turn means fewer void periods and also less wear and tear on the property through less move ins and move outs.

So here are our ten tips on creating that success for you and your rental property.

1) ADVICE FOR LITTLE ONES

In the case of small apartments - studios, 1 bedroom – it's wise to allow for one void month per year as these are the homes with the highest turnover. It's simply down to the stage in life of people living in small spaces: usually they'll be starting out before coupling up, or possibly separating and needing a temporary solution. So bear that in mind when looking at the purchase price against the monthly income.

2) ENTER THE NEUTRAL ZONE

Give up your own personal taste in decor and think instead about what will bring you the greatest rental income. Decorating your rental property in a neutral fashion will make it more popular and achieve more rent. You’ll also find tenants stay longer if they're surrounded by comfortable tones: think warm whites and you'll be on the safest and most profitable ground.

3) SHOW YOU CARE

Being nice works. Looking after your tenant works. And caring for your property works. Quickly attending to problems – which, let's be real, will arise – fosters a culture of goodwill and will have your tenants see the value in reciprocating your good nature by taking care of your property. They’ll also stay for longer which makes everyone happy.

4) TURN YOURSELF GREEN

With Energy Performance Certificates highlighting a property's eco-credentials, tenants often ask to see utility bills before putting down a holding deposit. So it pays to do what you can to give your property its best possible rating by implementing any recommendations from the Energy Inspector. You don't have to chase an A, but neither do you have to languish as a E.

5) THE SCIENCE OF APPLIANCES

As newly built homes push the envelope of what constitutes standard equipment, tenants expectations have increased in line with the prices of rents. We've seen tenants dismiss otherwise lovely apartments because they were under specified, so steer clear of the temptation to skimp. You don’t need to go on a Miele spree, but good quality mid-range appliances will last a lot longer than the cheapest models, which means less organising of repairs and replacements.

Dishwashers are a particular case in point here: no matter how nice your property is, you could lose out to another one – and get less rent for your own – simply down to how easy it is to do the dishes.

6) BE GENEROUS

Little things like a bike rack or thermostatic valves on radiators are inexpensive-but-thoughtful inclusions that make life easier and more economical for tenants. (And as a sign of the times, power sockets with USB outlets are the new thing!) Have a think about little things that make your own home life easier and see if it works to incorporate those. Being stingy isn't necessarily economical and certainly isn't supportive of long-lasting tenancies.

7) PRACTICE ACCEPTANCE

No matter how much we all hope and pray that every tenancy will be problem-free, life just isn't like that. It can feel easier to fix a problem in your own home than fixing one in your rental property, but things that need fixing need fixing. So it’s wise to accept that, and to acknowledge that just because something goes wrong, it doesn’t mean your tenant is careless or clumsy.

If you want an entirely peaceful life without having to deal with maintenance issues, the easiest option is to employ a managing agent. For extra simplicity, give them advance authority for works up to a certain budget without needing to bother you.

8) KEEP HOME & DRY

Deal with any leaks or water problems fast. These are without doubt the most common problems with a menu of possible culprits: taps, toilets, sinks, baths, showers, heating, gutters, drains. There's just so much water going around properties that something’s bound to go wrong one day, and nipping leaks in the bud at an early stage is vastly cheaper than leaving a small problem to become a major issue for an entire building. If a leak leaves a stain, ensure the affected area is redecorated to avoid recurring concerns from potential new tenants over your plumbing.

9) LIVE IN THE REAL WORLD

It’s very rare that an overpriced property will actually find a tenant. As your letting agents we are here to get you the highest rent possible – and our fees are directly influenced by getting you the best price – but tenants are not stupid. In fact, you probably don't want a stupid person living in your rental property! But if you want to attract a high-quality professional tenant at the best rent possible, all you need to do is provide a high-quality property at a rental that reflects exactly what you’re offering.

10) DO UNTO OTHERS...

How would you like your tenant to treat your property, and how would you like your tenant to communicate? If words like carefully and pleasantly spring to mind, consider that you have the power to make that happen. Give your tenants confidence from day one that you are committed to their enjoyment of living in your property, and back that up by dealing with any problems they may encounter. Without any shadow of a doubt, that is the way to ensure that even major issues are handled in a relaxed and civil manner.

Have these handy hints been useful? Let us know your thoughts along with any suggestions you may have by dropping us a line at info@truemanestates.co.uk or give us a call on 0121 427 4777 .