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Last week’s newsletter article “Tenants struggling with Paying rent” was our hottest topic.

It has warranted a Part II article with options where lettingaproperty.com can provide uneasy landlords with some help.

Demand for rental property is soaring, largely due to the difficult mortgage market facing young house movers and first-time buyers.  This, in turn, has allowed landlords to confidently expand their portfolios and in most areas of the UK, increase their rents!

It would be a mistake to think that nothing could go wrong!  It is arguably the moment that investors become overly confident that they lose their grip on what should be an ideal situation for landlords to find themselves in.  One of the biggest concerns currently arising across the country is the issue of rental arrears.

As redundancies and pay freezes are made by employers – a growing number of tenants are finding themselves in financial difficulty.  Let’s not forget that the problem is magnified by soaring utility costs, food and fuel prices.

Combining these factors with huge debts that families across Britain are trying to pay down, it is somewhat understandable why so many tenants may be struggling to make their rent payments.

According to the Association of Residential Letting Agents (Arla), there is an ever-expanding mountain of evidence to suggest that the “UK’s renters are increasingly struggling to keep on top of household finances“.

Tenants’ failure to meet rental payments can have serious impact on a landlord’s own personal finances.  For those who have encountered the problem will know just how severe the repercussions can be.  Most buy to let landlords will rely on their rental income to meet mortgage repayments.  If tenants’ arrears persist, owners can face an increasing risk of repossession.  So if you’re renting out a home to tenants unable – or unwilling – to pay their rent, what are your rights?

• Firstly, ensure that your tenant is aware of the situation, from what is expected of them and the fact that their failure to make timely payments could have serious legal implications.   This should be detailed on the tenancy agreement and signed by both parties before the tenants takes possession of the property.  We are still hearing of landlords that have verbal agreements with tenants  – this is a huge risk as it is very difficult to prove in court with no evidence.

• If they fall behind on several payments then issue them with a formal reminder of their rental obligations. Written communication is best and you should always keep your own copy of any correspondence,  just in case the matter ends up in court.  Landlords can easily access downloadable rent arrears letters online, ideal for use as a template.

Should your difficulties continue, you may begin thinking about your options with regards to getting the tenant out of your property.

Here, you are offered two options, outlined by Sections 8 and 21 of the Housing Act 1988.

1. If within the fixed term of the Assured Shorthold Tenancy agreement, you must issue the tenant with a Section 8 notice.  However, In order to reclaim possession of the house or flat, you will need to specify the legal grounds on which you intend to proceed. Provided that the court believes your reasoning to be fair and justified, you will be issued with a possession order.  This would then allow you to reclaim your property.
2. Section 21 is often the favoured approach of landlords who need to begin possession proceedings, as – in theory – the process should be far simpler. This is largely because this piece of legislation only applies to tenancies where the rental period has come to an end.

Landlords are therefore not required to state why they are looking to reclaim possession.  This should make it easier for a judge to rule in the owner’s favour.

Unfortunately, the process is not completely without fault.  Even if the courts do grant a possession order, regaining control over the property is not always a simple and hassle-free procedure.

Should the tenant still be in residence by the time their notice period expires, you are then legally required to issue a notice of intention to seek possession.  This formally indicates that you will be applying to the courts to have them evicted.  Provided the court rules in your favour, the tenant will be given a specific date by which they need to vacate the dwelling.

However, the courts have the option to ‘suspend’ the possession order.  This would allow the tenant to remain living at the address, provided they meet certain conditions laid out by the judge.

The best way for landlords to protect themselves is to avoid picking the wrong tenants in the first place.  Yes, it is true that anyone can fall behind with rent – particularly amid economic uncertainty.  However, landlords can potentially reduce their risk of being plagued by tenants in arrears by carefully screening their prospective suitors before handing over any contracts.

Jonathan Daines, Co-Founder of lettingaproperty.com offers his top 11 tips for landlords to prevent rental arrears:

1- Tenant Referencing.

As a starting point, you should always attain comprehensive tenant references.  These checks will look in detail at a) your prospect’s credit history, b) their employment history and c) a previous landlords reference – allowing you to make an informed judgement as to the risk of them failing to pay up.  Some landlords will also request 3 month’s bank statements to show the tenant is able to manage their incomings and outgoings on a monthly basis.  Remember, it is industry standard that the tenant pays for the cost of obtaining references – not the landlord.

2- Meet the Tenant at THEIR Property.

Arrange a meeting at the tenant’s own property to discuss the terms of the agreement.  This is a fantastic opportunity to see how the tenant lives in another landlord’s property.

3- Google Search.

You would be surprised that just by searching the Internet using either the tenants email address or name could reveal vital information about your tenant.  There are a number of ‘name and shame’ websites and forums where victim landlords have offered their tenants details online for the aid of future unsuspecting landlords.

4- Solid Tenancy Agreements.

Create a legal written tenancy agreement and have both parties sign.  As above, do not enter into verbal agreements with tenants.  Always agree on 1) the rental price 2) payment frequency and 3) length of the agreement

5- Insist on a Break Clause.

It is always easier to evict a tenant using the Section 21 notice once the initial fixed term has expired.  If you had signed up to a 3 year agreement, your options would be limited to the Section 8 Notice which is harder to prove.

6- Always have an Inventory.

This document is often overlooked by landlords – particulairy those that let “unfurnished” property.  They are under the misconception that because there are no furniture items in the property, there is no need for an inventory.  This is wrong, you should list ALL items in the property that the eye can see from carpets on the floor to lightshades on the ceiling.  You can download an inventory template here.

7- Treat your Let as a Business and try to remove the emotional aspect from the transaction.

This is more difficult for landlords letting our their own home for undertsandable reasons.

8- Visit the Tenant Quarterly.

It is your right to be able to visit the property to carry out an inspection.  Just be mindful that visiting too frequently, i.e. once a month could be seen as harrasment in the eys of thew law – remember, the tenant has the right to “quiet enjoyment” of the property.  Every 3 months is ideal.  You must send the tenant a letter to confirm your appointment and it must be received no earlier than 24 hours in advance.

If you would like an example of the “First Notice of Inspection” to send to your tenant, just leave a comment below and we will email one over!

9- Keep the Rent Under Market Value.

Quite simply, if the tenant feels that they are getting a good deal on their property, they will be more inclined to pay the rent and to stay longer.

10- Rent Guarantee Insurance.

Landlords have a superb opportunity to mitigate any rental arrears with rent guarantee insurance.  This is an insurance product which has been specifically created to support landlords in the event that the tenant is unable to pay their rent.  lettingaproperty.com includes rent guarantee in their “Platinum” service which means that the landlord will be guaranteed up to £10,000 per month as well as up to £25,000 help with legal fees.

11- Communicate Regularily with your Tenant.

It is best to have open lines of communication with your tenants.  If you notice that the rent is a day late, pick up the phone and have a frank conversation with them and try to find out if they are experiencing any financial issues.  Talking to a landlord recently, I was impressed with a solution to help the tenant with their finances but at the same time, ensured the landlord got paid and that was to increase the frequency of payments – i.e. instead of once a month, the tenant agreed to pay once a week which she found easier to manage.

Considering the risks and the severe knock-on implications that rent arrears can have, landlords should simply remember that one can never be too careful.

Source : Stride, The Independent Insurance Specialists

Firstly, a quick introduction….

lettingaproperty.com (LAP) was founded back in August 2008 by a young man looking to make a difference in the world of property.

Founder and visionary, Jonathan (or Jon as he likes to be called), has spent over a decade in the Sales and Letting business in both local and regional roles. Personally, he has experienced the life of a Landlord and, although a long time ago, the joys of being a tenant!

With drive, enthusiasm, experience, perseverance and a capable team around him, Jon has established lettingaproperty.com to the business it is today!

As anyone who runs and builds a business will tell you, you never have time for anything when you are trying to do everything!

That hasn’t changed much, however Jon, Tom, Matt, Louise, Caroline and the rest of the team at LAP have finally switched on a Tenant Profile Search where thousands of Landlords throughout the Country can contact you directly about properties they have to rent in your area!

In the last week we have registered over 250 tenants looking for property, some have even added a profile pic, like  just Hannah, who incidentally is looking for a property in High Wycombe and the Read family looking in the Shepway/Ashford area.

Simply, we are looking for you, the tenants, to have a place where you can upload your property requirements, a little about yourself and store your favourite properties all while making arrangements to view and visit those that you have made appointments for.

We will be enhancing the features in time and while we do that we hope to keep you informed about the world of property and any information you, the tenant, may be interested to know about.

You may be looking for the first time and not sure what to expect or you may not have had to look for a long time. Either way, we want to hear from you about what you want to know about, any feedback you have for us and any results you have had using this forum!

Keep in mind, we can’t search for properties for you… that’s why we have built you a website and we are not lawyers so if you need legal help, then best advise we could give is to contact a lawyer.

Best of luck with your search!

The team at lettingaproperty.com

Questions? email askjon@lettingaproperty.com

Last year we published an article on how to protect your pipes from freezing.  With temperatures reaching minus 4 degrees over the last couple of days, we thought now would be a good time to republish this article.  Remember, if you would like to receive our free copy of out “Protect your Pipes from Freezing Letter“, just leave a comment below!

We advise that if you have an empty property, or a tenant in occupation, there are a few simple measures to prevent frozen and burst pipes which could lead to thousands of pounds in damages to your property.

Why do burst pipes occur?

If the house gets too cold, the water in your pipes can freeze overnight and then burst in the day when it warms back up. When the pipes warm up again, this could cause flooding and water damage to your home. The pipes that are most susceptible to freeze are of course the pipes that have the most exposure to the cold such as taps in gardens, garages and sheds etc.

How do I know if my pipes are frozen?

Simple, water runs very slowly, if at all, from the tap. If this is the case, try and identify where the pipe is likely to be frozen, this is usually where the pipe is exposed to the most cold. To warm up the pipe, you can use a hair dryer, heat lamp or electrical heat pad. You must remember to keep the taps open as running water will help to thaw out the ice quicker.

DO NOT use a flame device such as a gas burner to warm up the pipes. If the ice is heated to quickly, there is a danger it could explode.

How can I prevent frozen pipes?

1. If you have an outdoor water supply such as a tap in the garden, hopefully you will have a stop valve on the inside of the property. If you do, open up the tap on the outside, close the valve on the inside and drain the pipe making sure that there is no water remaining in the pipe.
2. If you have a garden sprinkler system, ensure that the system is completely drained and insulate any pipes that may be prone to damage with pipe insulation available from most DIY stores.
3. Make sure that even if the property is vacant, the heating is set to not go lower than around 12 degrees Celsius. It is tempting to turn the heating right down when the property is vacant to save on gas and electricity bills however, the cost involved from burst pipes is a lot higher.
4. If you do experience flooding, keep an eye out for black mould which can often be more damaging to the property than the flooding itself.

If you have a property that is tenanted, be sure to write to your tenants explaining the dangers of frozen pipes and what precautions they should take to prevent such damage. We have a standard letter that you can use, to access it, please leave a comment below and we will email the letter directly to you on the email address you provide.

You might also be interested in our Tenancy Agreements and Legal Property Management Documents

News being posted by Letting Agent Today with the article entitled “Landlord mortgage arrears set to rise as tenants struggle with paying rent” supports the need for a service where Landlords will feel absolutely 100% assured of rental income!

Paul Jardine, Director and Receiver at Templeton LPA has indicated that there is a growing minority of tenants struggling to pay rent.  He has continued to say “while the wider tenant mix has changed since the mortgage market downturn, a growing number of tenants are seeing their job prospects affected by the UK’s economic malaise.”

Jardine continues to say “The growing level of severe tenant arrears has yet to filter through into mortgage payment problems for landlords.“Mortgage rates have kept monthly payments low, but there has also been a change in landlords’ behaviour. With capital gains falling by the wayside in the past six months, rental income has become the most important component in an investor’s annual return – but it also pays a landlord’s mortgage cheque.

“As a result, many landlords are being less lenient with tenants struggling with paying rent, and are looking to use court orders to replace tenants quickly in expectation of finding a financially sound substitute – and potentially an increased rental income.”

Lettingaproperty.com recognizes the uneasiness the rental market is having on landlords who want to ensure their rental incomes are safe.

Jonathan Daines, Director of lettingaproperty.com states… “With similar news and statistics being researched by ourselves at lettingaproperty.com, we believe our Gold and Platinum Services are the way forward to protect landlords in the rental market from this type of bad news.”

“We take away the hassle of rent collection by doing the following:  firstly we secure deposits into a deposit scheme that is fully protected. Secondly, we remove any uncertainty of tenants struggling with paying rent by setting up a direct debit and once receiving the rent we automatically send it to the landlord’s bank account with a monthly statement.  If payments are indeed missed, we follow up with the tenant officially on the landlords behalf.  Lastly, we can also guarantee the Landlords rent for up to 12 months.  This guarantee covers you for up to £10,000 per month and up to £25,000 legal fees should you require going all the way and reposes your property”

Although the news is not all positive, there are companies like lettingaproperty.com that are quickly adapting to the market conditions and looking to protect their clients, the Landlord, for any eventuality.

Visit www.lettingaproperty.com for more information on their Gold and Platinum Services or call the team on 0844 567 0578 to understand more.

Moving house is often rated as one of the most stressful events in a person’s life.

It need not be that way, however. By following the removals tips in this guide, you can plan out your whole move ahead of time, and make sure everything goes smoothly. If you any other tips that we have not included, please let us know, and we will add them.

We can help, every step of the way.

What to move?

Our partners’ crews are fully trained in the art of packing and wrapping furniture particularly for overseas.

Think about the things, especially the large items, that you are going to take, and those which are staying, i.e. fixtures and fittings. Make a note of what is staying and make sure you tell the moving team from the outset. Also, think about appliances, and organise the disconnection of equipment in advance to avoid any last minute hitches or disasters.

Think about items you have in roofs, lofts, garages, outbuildings and sheds.  These will all need to be emptied.

Vehicle access

It is vital that we are made aware of the size of the house you are moving into. Will there be access for our large lorries (7ft x 58ft) to park outside, or close by. If not we will organise smaller vehicles for your move.
Family members

When you are moving and small children are involved it is important that they know exactly what is going on around them. Ideally it would be good to organise them to be looked after by a friend or member of the family.
Animals

Moving with pets can be very traumatic for them. Pets thrive in their own territory, so when it is disrupted it can sometimes make them over-excited. Make sure on the day of the move that you keep them shut in a quiet room with their bedding and toys. Don’t leave them to run around, as they could easily wander off, or get under the feet of the removal team and cause havoc. If it is possible, a good idea would be to have them looked after or even put in a kennel or cattery for the duration of the move. Make sure if you do this that they have their own bedding and toys with them for reassurance and comfort.

With animals that are kept in cages, they are best transported in containers that are solid and well ventilated, with the least possibility to be chewed or eaten up. Give them plenty of soft bedding and food, plus water in a container that won’t be likely to be spilt.

Change of address notification

You will need to notify relevant companies of your impending move including utilities companies (gas, electricity, water, telephone), banks, investment companies, credit/debit card companies, schools, magazine subscriptions, DVLC for driving licence, newsagent etc.

Contact the Post Office to arrange for your mail to forwarded to your new address and send new address details to friends.

Removal date

A provisional date will be booked as soon as the forms have been returned and will be confirmed as soon as you know the date of the move.

How far are you moving?

Depending upon the situation and how far you are moving, we may organise to pack some larger items in advance, particularly if you have agreed to have our packing service.
Your removals team

You will be advised in advance of the moving team allocated to your move, which will ensure that everything is packed safely and securely.

Saying goodbye

The removal team will ask you to ensure that the house you are leaving is completely empty and checked thoroughly before they finally set off.

Storing items

If any boxes have been allocated for storage, the removal team will ensure they are packed and are sent to the storage location.

No place like home

Once the lorry or container has arrived at your new home the removals team will put all the boxes or containers in the rooms you have specified.

Moving Checklist

Two months before you move

• If you’re renting, notify your landlord of your moving date.
• Decide what items you’ll take to your new home and where you will place larger items. A floor plan of your new home may help with this so try and acquire one; your seller may be able to sketch you a rough copy.
• If you have items you don’t want to take with there are a number of ways you can get rid of them, including car boot sales, online auction sites and charity shops.

Six weeks before before you move

• Clean out cupboards and place possessions in usable piles/larger rooms. Take a full inventory so you know exactly what you own.
• Items you won’t want to take with can be sold or given away – don’t forget removals companies quote by volume so the more you bring with the more you pay.
• If you’re relocating due to a job move, find out what costs your employer will cover.

One month before before you move

• Finalise your move date so you can start making firm bookings for removals and other related services – this will be easier once contracts have been exchanged.
• Appoint a removals firm, but remember to make sure they are a professional and reputable company. Try Removals Brokers to find the cheapest quotes for your move. Ask them when they offer discounts, as many companies will charge a premium for moving you on bank holidays, weekends, and in the summer months.
• If you’re looking for moving insurance, cleaning or storage check with your removals company – they may offer these at a discount.

Two weeks before before you move

• Check you have adequate prescription medicines to cover the moving period.
• Arrange a time to collect the keys for your new home from the estate agent.
• If your removal company is not making arrangements for you, book people to carry out services. e.g. Removing light fittings, House Cleaning.

One week before before you move

• Put all your important documents in one plain, sturdy box and place it where you won’t lose it – this should include passports, driving licenses, house deeds, wills, insurance papers, football pools, jewellery and cash.
• Make a list of everyone who should know about the move. Send out change of address ecards.
• Finish packing so you have everything boxed up and ready to go – make sure you do this systematically.

The day before you move

• Walk through your house one last time to make sure everything is accounted for.
• Empty, defrost and clean your fridge.
• Make sure you have the keys to your new home, or have arranged to collect them.

Once you are in your new home

• Make sure you are present when the removal crew arrives so you can guide them around the house confirming what is to be moved and any special instructions.
• Check the unloading of your items and account for each one on your packing inventory.
• Check carefully for any damaged or missing items.

After you are in your new home

• Start cleaning and make the beds.
• Plug in your telephones, answering machine and large appliances.
• Unpack your ‘survival kit’.
• If possible, keep pets away until you are settled in.

Switched on landlords and property management agents are turning to a new website to outsource their trades-people.

RatedHammer.com, which was established earlier this year, is fast becoming popular within the private rented sector. Tradesmen, from across the construction sector verified with public liability insurance and sector accreditations have subscribed to the site and are able to bid on jobs put forward by landlords, letting agents and homeowners.

As a free website for the private rented sector to post building and construction jobs, landlords and letting agents both are saving money by allowing trades people to directly send competitive quotes on building and maintenance jobs and contracts. Operating on a nation-wide basis, the website is able to match property owner or agent to tradesman, saving landlords thousands of pounds and reducing void periods on properties.

Trades-people such as plumbers, builders, electricians and joiners are also given feedback by previous customers, allowing a trip-advisor style flavour to the site. Because of many instances of construction cowboys and builders from hell, RatedHammer has been set-up to support verified and ethical tradesmen in the construction sector.

Senior spokesman for www.RatedHammer.com, Crimildo Tomo said:

“As well as a virtual platform that matches trades-people with property owners, the site also offers hire companies and suppliers from across the industry. It is of particular use to the private rented sector, which outsources their building contracts and jobs for private and social rented accommodation.

“We are very pleased with the reception our site has been given by the industry. By offering a free directory of accredited trades professionals, we hope to sustain and increase the building sector, by matching tradesmen and suppliers to contracts and jobs throughout the UK.”

A report from the Construction Skills Network forecasts that the building sector will grow further, despite being hit by economic factors. The report also indicates that recruitment levels will increase annually at a level of 43,000 workers in the run-up to 2015 and expect additional output between 2013 and 2015 by a further 6.2% on 2011 levels.

For more information on opportunities for construction and building jobs or to locate a tradesman in your area, visit www.RatedHammer.com.