Blogs and advice on Residential Property Management London
We are providing you with a few tips to help you protect your income and take advantage of opportunities that may arise from a recession.
Think about buying
The stamp duty holiday is tempting, finding a distressed seller sounds very appealing though you need to think in terms of long term thinking as property is a long term strategy. Tax saving is an initial discount though properties always require maintenance, keeping an eye on new regulations. Buying a property to make money can be a long term strategy. Buying a property in 2020 while the market is hot is risky but at the same time can be the best deal you have ever made.
A rental property that is not well maintained can create a significant decrease in your property value. A clean, attractive and well-maintained property will attract potential tenants or keep existing tenants happy. The best way to ensure high-quality tenants, who rent long term and look after your property is to maintain it well.
Please see below tips for rental property maintenance.
If a problem arises, make sure it’s dealt with effectively and efficiently. Communicate clearly and if you agree on a certain course of action or deadline, make sure you stick to it. If you are struggling to agree matters with your tenant, call on a trusted third party to provide an independent point of view and act as mediator.
A positive landlord and tenant relationship is invaluable and can be a huge asset to your business. Having a reputation as a good landlord will boost the rental potential of your property and getting on well with your tenant should ensure that the tenancy is fairly hassle-free. Happy tenants stay longer too, cutting down on the cost and inconvenience of re-letting or having a void property sitting on your books. Lastly, from a health and safety point of view, a positive relationship is much more likely to result in a high quality living environment.
Bear in mind being a landlord is a business
Just like any business; you make money, you have expenses, and you pay taxes. If all goes well you’ll make a profit each month. While property is a fairly safe long-term investment, there is no guarantees of success, just with any other business.
Many people become a landlord because they think it’s an easy way of making money. It is not always that easy as it seems. There are no guarantees.
Understand what being a landlord actually means
Many landlords step into the arena with a totally distorted view of what being a landlord actually entails.It seems exeptionally easy from a distace. You need to choose your tenants carefully. Be aware that you may end up dealing with repair and maintenance bills or rent arrears.
The laws can be excruciatingly unfair towards landlords.
They may come across more protecting of tenants and they are frequently changing.
You always need money on the side so you can cover any unforeseen expenses.
Void periods are common, this is when the property is vacant for short periods, particularly in-between tenancies. During that time you won’t receive rent, but you’ll probably still have a mortgage to pay, plus other expenses.
A mediation takes place where an impartial person assists the disputing parties to resolve their conflict. The method of delivery for the service can be by phone.
With the current COVID-19 situation and the announcement that court proceedings for evictions are suspended and that notice periods have been extended to three months, with the option of being extended to six months, it is more important than ever for landlords and tenants to try to discuss and come to an arrangement on tenancy matters.
As a lanldord it is important to have the right protection in place.
Being a landlord can be an costly, and if you haven’t got the right cover you’ll have to pay large bills if anything goes wrong. A thorough landlords’ policy can include buildings insurance, accidental damage cover and financial protection against loss of rent.
Landlords’ buildings insurance
Building’s insurance is the main cover that a landlord will need. It is important because it protects the bricks and mortar of your property.
If your property suffers a flood or fire, buildings insurance will cover the rebuilding costs.
This usually includes replacing kitchens units and bathroom suites and some policies may also cover sheds, garages and other outbuildings.
Before you take out buildings insurance you’ll need to know the rebuild sum of your property.
The Government provides protection to social and private tenants by delaying when landlords can start proceedings to evict tenants. The provisions
of the Coronavirus Act 2020, that increased the required notice period length, were initially due to expire on 30 September 2020 but have now been extended through legislation to 31 March 2021.
This means that from 29 August 2020, with the exception of the most serious cases, landlords will not be able to start possession proceedings unless they have given their tenants six months-notice. These serious cases include those in relation to anti-social behaviour including rioting, domestic abuse, fraud and where a tenant has accrued rent arrears to the value of over six months’ rent.
Coronavirus: repossessions are on hold
The Financial Conduct Authority (FCA) has said that mortgage lenders must not start or continue court action for repossession until at least 31 October.
Government says landlords must follow strict procedures if they want to gain possession of their property, depending on the type of tenancy agreement in place and the terms of it.
The new rules mean:
Landlords seeking possession of their property to set out in their claim any relevant information about a tenant’s circumstances, including information on the effect of the COVID-19 pandemic on a tenant’s vulnerability or social security position. These rules will apply to all possession proceedings either new or existing, including accelerated possession proceedings. Where this information is not provided, judges will have the ability to adjourn proceedings. These changes will be in place until the end of March 2021 but could be extended.
Landlords will need to notify the Court and their tenant of their continued desire to seek repossession before the case will proceed using a reactivation notice. This rule includes accelerated possession cases and the government says it will ensure that the Court’s time is spent on the right cases. However a reactivation notice will NOT be needed for any claim where a possession order has been granted, suggesting landlords can move to execute the warrant via bailiff services.