Property Investment & Portfolio Management Archives | Blue Crystal Property Management

What is a Service Charge Account?

A guide for leaseholders A service charge account is a financial statement that records all service charge income and expenditure for a property. But what is a service charge account used for? Understanding your rights and obligations when it comes to service charge accounts is crucial, as they directly impact how much you pay for […]

The Renters’ Rights Bill

The Renters' Rights Bill 2024 was introduced by the new Labour government in the Kings Speech, the aim is to transform the experience of private renting. It is expected to come into force in the spring/summer of 2025, the Bill is currently making its way through the parliamentary process. Whilst yet to become law, and subject to change, we wanted to share what is proposed under the Bill. Some of the key points are noted below.

What Does Leaseholder Service Charge Cover?

Understanding Leaseholder Service Charges in Residential Property Management Service charges are a crucial aspect of property management, especially for leaseholders living in flats or estates managed by private landlords or management companies. At Blue Crystal Residential Property Management, we understand that navigating service charge demands and payments can be complex. In this blog, we answer […]

Property Tax Relief

How to minimise your property tax in 2023/2024 Property taxes can often be a significant financial burden for landlords in the UK. However, there are various property tax relief options and strategies available to help you reduce your tax liability in 2023/2024. Let’s explore what property tax relief is, what tax relief you can claim, […]

Section 21 Notice Requirements

Sometimes, landlords find themselves in a situation where they need to regain possession of their property. In such cases, a Section 21 notice becomes an essential tool for the landlord. This notice, governed by the Housing Act 1988, allows landlords to initiate the process of eviction while following the legal requirements. Section 21 Notice – […]

Section 13 Notices

A Section 13 notice is a formal notice served by a landlord to propose an increase in the rent for a property that is subject to an Assured Shorthold Tenancy (AST). It allows the landlord to adjust the rent to reflect changes in market conditions or to cover increased costs related to the property. The […]

Section 8 Notice Requirements

When it comes to managing rental properties, it’s crucial to be well-versed in the legal aspects of tenancy agreements and procedures to evict tenants. In most instances, landlords seeking to regain possession of their property rented under an Assured Shorthold Tenancy (AST) would typically consider employing the ‘no-fault’ procedure outlined in Section 21 of the […]

How to maximise your rental income

The goal of owning a rental property is to make money. It is important to to know what to do and what not to do to make your rental business successful. Being a landlord means paying for gas and electrical safety certificates, fitting smoke detectors, maintaining the property to a high standard to perhaps paying bigger tax bills. Part of being a successful landlord is always focusing on maximising your rental potential. This can be a tricky balance to achieve with so many legal obligations to meet.

What are deed of covenants

Freehold properties on managed estates must sell with entering into a deed of covenant that is generally required under the terms of the transfer governing the use of the property and payment of estate or service charges. The consequence of the above to a property management company can mean that they are unable to recover estate management charges from the new owners that would be payable under the terms of the Transfer. Positive and Negative covenants This is similar to residential long leases. Transfer deed that governs freehold properties contain a number of covenants, both positive and negative, that the owner of the property have to abide by. As the names suggest, a positive covenant places an obligation on the owner to do something, such as paying an estate maintenance charge, where as a negative covenant, requires the owner to refrain from undertaking an action such as not to use the property for a specified purpose.

How to reduce tax?

As the regulations and tax are constantly increasing many of the UK property owners are choosing to sell their properties in the recent years. Many landlords are missing out on money as they are not taking advantage of tax reliefs or property strategies to maximise their return. Your accountant can work out your tax strategies and execute a tax plan, making it easy for you. A series of tax and regulation changes mean more buy-to-lets are being sold than bought. Getting rid of a rental property may cause a lot of tax issues, with many complicated rules that can cost you profits. When a landlord sells he/she gets charged capital gains tax on any money they have made on their property, but there are legal ways to reduce your tax.

What are landlords’ rights?

Landlords, or their managing or letting agents, have certain rights as well as responsibilities when it comes to their tenants, just as tenants have obligations to their landlords. What are the legal rights of landlords? As a landlord you have the right to increase rents, but only if you abide by certain rules, including not […]

What is client money protection for landlords

All letting agents in England are required to belong to a client money protection scheme when they hold client monies. This scheme provides insurance to landlords and tenants in the event the agent steals money from their clients. Below guide provides a primer for agents on what they need to do to comply with these regulations, what are the potential penalties for not complying, and which schemes are available.

What is a property redress scheme?

A Redress Scheme is a system which allows consumers/customers/clients to escalate a complaint they have against the member of a particular scheme. All property professionals, estate agents and property agents that carry out lettings, estate management and property management have a legal responsibility to join an authorised Property Redress Scheme and make the details available […]

What is landlord liability insurance

Every landlord has a legal responsibility to supply a safe home and many accidents can be prevented by carrying out regular maintenance and repairs. Though despite taking all the precautions, accidents can still happen. This is where liability insurance comes into force. What is landlord liability insurance Liability insurance is an insurance cover that protects you from potential compensation claims related with your rental property; i.e if someone injures themselves or other property is damaged as a result of your property. It is a type of public liability insurance that is there to pay the compensation and any resulting legal fees to a third party such as a tenant, visitor or a tradesperson. If your tenant hurt themselves tripping on a damaged floorboard or a loose tile were to fall off the roof and hit a passing pedestrian, you may be liable to pay compensation if a claim was made against you. Under the circumstances; your landlord liability insurance would step in to pay any related compensation, expenses and legal fees, up to the limit of your policy. Insurers and their solicitors will also defend policyholders against claims where a third party has alleged that they are at fault, though they actually were not negligent. In this scenario they will defend you and, if you found not negligent for injuries caused, insurers will provide cover for the defense costs required to defend the claim on behalf of the landlords.

Why do you need a residential tenancy agreement

Without a tenancy agreement in place, landlords and tenants have no written record of their contract, which leaves both parties with reduced legal options if a dispute occurs. Rental agreements protect the legal rights of both parties. A tenancy agreement is a binding contract between you and your tenant(s). It sets out, clearly and without room for misinterpretation, what is expected of the landlord and the tenant, and the length of the agreement between both parties. It also explains what either sides legal obligations if the other party do not keep to their side of the agreement. Although it is not a legal requirement to have a written tenancy agreement. It is beneficial to have a written tenancy agreement. It will make it much easier for all involved.

What are right to rent checks

Right to rent checks were first introduced in 2014. Agents are landlords are required to carry out checks to ensure that their prospecive tenants are in England lawfully and have a Right to Rent. This legislation is intended to cover all of the UK though it is currently only running in England. Following the Brexit transition changes were implemented as of 1st July 2021, which now imposes further checks on these nationals who now need to provide evidence of their Right to Rent by producing confirmation of their EU settled status or eVISA.