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Category: Landlord

New Year, New Letting Agent?

Posted on by prateek

A Landlord’s Biggest Decision.

A very Happy New Year from us all at Reside! Some people’s 2020 resolutions will involve exercising more, eating less or – heaven forbid – both; however, many take this as an opportunity to review contracts and working relationships – who to bank with, or which lettings agent should manage their investment properties.

When letting a property a landlord has two vital decisions to make, both of which can have huge implications on their health, wealth and quality of life.

It’s really no exaggeration to say that if a landlord chooses the wrong letting agent and compounds that error by renting their property to a tenant who has not been properly vetted, one thing is usually guaranteed – trouble. And often a lot of it.

Poorly referenced tenants cause the most problems and letting agencies that don’t have stringent checks in place leave their landlords vulnerable.

At Reside, we’ve always believed that one of the most important parts of our role as letting agent is to ensure the right tenants are placed in the right properties. So how do we ensure we get good tenants for our landlords? Well, during our years in the property lettings business we’ve learned (sometimes the hard way) what to look out for.

So what makes a good tenant?

Simply someone who pays their rent on time, respects the property, is reasonable to deal with and gets on with the neighbours. These are all factors which can contribute to a successful long term let.

The next part of the process is one where less well-equipped or experienced agencies often fail.

A good quality referencing agent is vital for ascertaining credit history, as well as ensuring the tenant has the means to pay the rent. Our referencing covers employment, credit and previous rental history.

While proper referencing is very important, it’s sadly not a 100% guarantee that the tenant will be a good one. But, when done properly, it is usually a very good indication of the calibre of the person applying to rent your property.

Once a tenant has been selected it’s important for the property to be professionally and ethically managed. Keeping a tenant waiting for an unreasonable amount of time for a washing machine or boiler repair could lead to problems for the landlord, such as claims for compensation. It’s important for any prospective landlord to apply a vetting process to their agency. Are they a diligent, conscientious and regulated letting agent? This is where Google reviews are particularly useful, as they give a genuine insight into the experience of a company’s clients. You can also check what professional affiliations your agent has; here at Reside, we are regulated through our memberships of ARLA Propertymark, SafeAgent and The Property Redress Scheme.

“The amazing team at Reside have let and managed our property in Bath for the last two years. I cannot tell you how incredible their level of service is… above and way beyond any estate agent we’ve dealt with in the past.”
– Google review from Betsy Huggins, Landlord

Equally, a landlord should not always be swayed by the agency who places the greatest value on their property. If a lettings agent overprices a property’s rental value, it could lead to extended void periods. These costly episodes put pressure on the landlord and the letting agent to fill the void as quickly as possible and this can mean the vetting process is not rigidly carried out. Which, as we said at the start of this article, can lead to a lot of trouble.

If you want to let your property in Bath quickly, professionally and cost effectively call Reside on 01225 445777 or email: info@localhost for honest, expert and friendly advice.

General Election 2019

Posted on by prateek

WHAT IT MEANS FOR THE PRIVATE RENTAL SECTOR

Heated debates over Brexit and the future of the NHS may have dominated headlines in the run-up to this year’s snap General Election, but when voters go to the polls on 12 December they will also have their say on a broad spectrum of policies which will plot the direction of the United Kingdom for the foreseeable future. Flagship housing policies have been announced by all of the main parties, each of which would mean significant changes for the private rental sector. Change is coming for landlords and tenants alike, regardless of who has the Downing Street keys come the New Year.

Armed with a strong brew and a highlighter, we trawled the manifestos to bring you a summary of the main partys’ plans for the sector.

The Conservative Party

Before an election had even been called, the Conservatives outlined their intention to abolish Section 21, or ‘no-fault’ evictions; their manifesto follows through on this promise. It is expected that Section 21 of the Housing Act will be replaced by a reworked version of Section 8, which would allow landlords to take back possession of their property if they had a valid reason, for example a breach of contract or to sell. The government sold this as a fairer solution for both tenants and landlords by promising greater security to tenants, and a simpler, faster eviction process for landlords with a genuine reason for seeking possession.

We will bring in a Better Deal for Renters, including abolishing ‘no fault’ evictions and only requiring one ‘lifetime’ deposit which moves with the tenant.

The Tories’ manifesto also plans to introduce a ‘lifetime’ deposit which moves with the tenant from property to property, also known as tenant deposit passports. In practice, this will allow a tenant to port their existing security deposit to their next tenancy; it is not yet known how deposit deductions or tenancy overlaps will work. A working group formed of the various deposit protection schemes had been due to report back to the government in the autumn, but the election has forced the Conservatives’ hand.

The only other reference to the sector in the Tory manifesto is an allusion to a policy introduced in 2015, protecting tenants from ‘revenge evictions’. We can only assume that legislation and enforcement of this issue will be tightened to give tenants greater protection against unscrupulous and ill-informed landlords.

The Labour Party

Jeremy Corbyn’s manifesto says that the UK’s 11 million tenants are ‘at the sharp end of the housing crisis’, and promises urgent action to protect private renters. Plans for open-ended tenancies will mean an end to no-fault evictions, echoing the Conservatives’ intentions to scrap Section 21, whilst rent increases would be capped at inflation. Labour would also give local authorities powers to introduce rent caps, should rents locally be deemed excessive against the national average.

We will take urgent action to protect private renters through rent controls, open-ended tenancies, and new, binding minimum standards.

An annual property ‘MOT’ would replace current landlord safety requirements, with hefty fines, landlord licensing and renters’ unions in place to hold sub-standard homes and rogue landlords to account. One of the party’s more radical policies is the introduction of national licensing for landlords.

Labour would abolish the Conservatives’ contentious Right to Rent policy, which in March 2019 was found to be in contravention of human rights law. This would remove the burden on a landlord to check the immigration status of their tenant before and during their tenancy.

The Liberal Democrats

Jo Swinson’s most eye-catching policy for the private rental sector is the introduction of a Help to Rent scheme, which would provide government-backed deposit loans to first-time renters under the age of 30. This has drawn criticism from some who believe the government should be supporting the younger generation into home ownership; however, Swinson maintains that increasing numbers of young people require state support in order to break into the rental market.

To reform the private rental sector, we will help young people into the rental market by establishing a new Help to Rent scheme to provide government-backed tenancy deposit loans for all first-time renters under 30.

The Liberal Democrats complete the triumvirate of major parties who have pledged greater security to tenants in the form of longer-term tenancies. Whilst they have not explicitly pledged in their manifesto to remove Section 21, the party voted in favour of doing so at their Bournemouth conference last September. They would also introduce a cap on annual rent increases, linked to inflation.

The Lib Dems’ final flagship rental policy is the mandatory licensing of all private landlords, in order to improve enforcement of current regulations.

What does it all mean?

Regardless of your political inclinations, landlords should accept that changes will be made to the sector after the 12th of December, but behind the dramatic headlines are policies which will have little impact on most conscientious landlords.

Section 21 evictions are going to be abolished, regardless of who holds the keys to Number 10, but landlords should find succour in the fact that reforms to Section 8, if done correctly, may actually simplify the eviction process for landlords with a legitimate reason to seek possession of their property.

Proposed rent controls will restrict annual rent increases to inflation, however most standard tenancy agreements already cite RPI as the bellwether by which to gauge rent reviews.

All three parties are seeking to make life more difficult for ‘rogue landlords’, their message being that dutiful landlords with a keen awareness of their obligations should have nothing to fear. Proposed landlord licensing or tightening of legislation is intended to clamp down on those landlords with little care or knowledge of the law.

Whilst it is not included in any manifestos, it is still widely expected that all letting agents will be required to comply with the recommendations of the RoPA Report, which proposed mandatory qualifications and licensing for all professional agents; something which Reside already complies with by virtue of our ARLA Propertymark membership.

With changes to the sector undoubtedly coming soon, and strict enforcement of housing legislation being proposed, there has never been a better time for landlords to employ a qualified, knowledgeable and regulated letting agency.

If you are a landlord with property to rent in Bath, please don’t hesitate to contact us – we would love to help.

Beware Black Friday

Posted on by prateek

…or: why you should be wary of cheap letting agents!

On the 29th of November the phenomenon that is Black Friday will sweep the USA and, more increasingly than ever, the UK.

Online giant Amazon has already started a countdown in the run up to the day which sees prices slashed, shoppers go bonkers and sales rocket.

It’s not just Amazon who believe that going cheap is a good way of gaining business – we’ve seen some lettings agencies do it too. Although not themed around Black Friday, we’ve come across several agencies whose fees are so low it leaves us thinking, “how can they charge that and still give a good level of service and expertise?”

The trouble is they can’t and a Black Friday approach to lettings and property management doesn’t work. Over the 11 years we’ve been managing rental properties in Bath we’ve seen agencies try this cheap and cheerful route but become unstuck.

It’s an unsustainable business model.

You get what you pay for

Landlords and tenants both suffer from ridiculous low fees, as something has to give. It could be the calibre of staff working in ‘pile-them-high-and-let-them-cheap’ outfits, or the level of property management, inventory or inspections that is provided.

The old adage you get what you pay for is particularly true in the world of property.

We have always been about charging a fair fee but delivering a superb, personal service and we like to think our track record and positive Google reviews prove that approach works for the landlords we serve.

Reside have been fantastic in letting out our property – very professional, friendly and pro-active. After the first meeting with Ben we knew that Reside was the Agency we wanted to work with. The company has many years of experience and knowledge of the Bath rental market and we like the fact that they specialise in lettings only. We were impressed with how quickly our house was let and would highly recommend them to other landlords.
Joey Snowdon, Landlord

Our management fee allows us to offer guaranteed rents to landlords, regular property inspection reports sent by email, professional photography and much more. Most crucially, it also allows us to hire the best staff who can offer our landlords sound, informed advice whenever needed.

We love a good bargain like everyone else, but some corners are not worth cutting.

Thanks for reading and if you have any other property related questions please don’t hesitate to get in touch with us – we’d love to help you.

Why it pays to choose a licensed Letting Agent

Posted on by prateek

We’re proud to be a member of several organisations which represent the property lettings and management industry, including the Association of Residential Letting Agents (ARLA), Safeagent and The Property Redress Scheme.

Surprisingly, there is currently no mandatory regulation of letting and property management agents in the UK, although this is currently under scrutiny by the Regulation of Property Agents Working Group (RoPA), who have recommended to the government that all residential property agents should be regulated and licensed.

Although not currently compulsory, we choose to be licensed because it’s a great way to keep up with changes to rules and regulations affecting our ever-changing industry. As membership of ARLA requires industry-specific qualifications, it also means that we access regular training and development courses to improve our knowledge.

But more importantly it has big benefits for our clients, and that is why we believe you should always choose a licensed agent. For example, ARLA has a strict code of practice which its licensed agents must follow.

ARLA provides us with expert legal advice if needed. Whenever we’ve had to call on this service in the past, it has helped our clients to fairly and legally resolve their concerns.

Being licensed by ARLA means our clients know that we comply with its professional standards. You can be confident that we take the business of managing your property seriously and will work to a professional, principled and honest agenda.

We are big believers that licensing should be mandatory for all agents, but it is currently not. With the results of the RoPA report appearing to receive cross-party support, it seems to be only a matter of time before all agents will be subject to the standards to which we at Reside already subscribe. Using a licensed agent such as Reside not only protects landlords against the issues of today, but also from the changes that our coming to the industry soon.

If you would like to let your property quickly, professionally and cost-effectively, please don’t hesitate to contact us – we’d love to help you.

Awards Recognition For Reside

Posted on by prateek

Reside was crowned Bath’s best lettings agent at the Bath Property Awards, a celebration of the city’s vibrant property sector encompassing everything from property agents to interior designers. The panel of ten independent judges, comprising industry experts and local luminaries, summarised Reside as a “smart company with highly-detailed local knowledge which cleverly balances landlords’ and tenants’ needs.”

Three hundred eager property professionals descended on the Apex Hotel for the inaugural awards hosted by MediaClash, proprietors of the prestigious Bath and Bristol Life Awards.

Collecting the best lettings agent award from Homes under the Hammer’s Martin Roberts, Managing Director Ben Bower paid tribute to the Reside team’s tireless work and commitment.

 

Alarm Bells For Landlords: new legislation just a week away

Posted on by prateek

New regulations enforcing the provision of smoke and carbon monoxide alarms in privately rented properties are now just one week away. After several months of speculation and debate, the Smoke and Carbon Monoxide Alarm (England) Act 2015 was finally passed by Parliament on the 14th of September – leaving landlords just two and a half weeks to ensure their properties meet the new requirements.

From the 1st of October 2015, landlords will be required to supply and fit at least one smoke alarm on every storey of their property which is used as living accommodation, even if that storey only includes a bathroom or lavatory. Carbon monoxide alarms must also be present in any room containing a solid fuel burning appliance, such as a coal or wood burning fire. These alarms must be tested by the landlord at the start of each new tenancy to ensure they are still in working order.

As the legislation currently stands, Landlords are not obliged to fit carbon monoxide alarms in rooms with gas or oil appliances. We at Reside, however, have advised our landlords to supply CO alarms where gas appliances are present; whilst the legislation does not make this mandatory, it does state that ‘reputable landlords’ are expected to supply carbon monoxide alarms in these circumstances.

The Department for Communities’ guidelines make it very clear that no grace period will be permitted for landlords who have not acted to ensure their property is compliant, and hefty fines of up to £5,000 will be levied against those who do not take the necessary steps.

An explanatory handbook written by the Department for Communities explains exactly what landlords must do to ensure compliance, and can be found here.

The General Election & The Private Rented Sector

Posted on by prateek

When the United Kingdom goes to the ballot box on the 7th of May, the electorate will cast their votes with a host of prominent issues in mind, but how will your choice of political party impact on Tenants and Landlords in England?

The key parties’ manifestos don’t make for the most thrilling reading, so we made a strong pot of coffee and scrutinised them for you.Conservatives

The Conservative Party‘s manifesto actually makes no explicit reference to the private rented sector, but focuses intently on helping more people onto the housing ladder by extending the Help to Buy scheme. Their Help to Buy ISA will aid renters trying to save up for a deposit, and they aim to build 200,000 ‘Starter Homes’ exclusively aimed at first-time buyers under 40.

As far as the lettings industry goes, the Conservatives are taking an ‘if it ain’t broke, don’t fix it’ approach. Over the past five years, the coalition has made minor adjustments to legislation to make letting agents’ fees more transparent and to increase living standards and security within privately rented properties, and they seem to feel that this has left the industry in a good position.

Labour Party 3

In this area, the Labour Party has taken a drastically different approach to their rivals. Ed Miliband is proposing a shake-up to the industry which will involve a ban on ‘unfair letting agent fees [which] will save renters over £600’. The Labour manifesto does not stipulate what constitutes ‘unfair’, but it is not clear whether this will be the blanket ban on fees that some had expected, such as the one implemented in Scotland in 2012.

Other Labour initiatives include legislating to make three-year tenancies the norm, and imposing a ceiling on ‘excessive rent rises’. As with the above policy, ‘excessive’ will presumably not be defined until after the election, but it is bound to be linked to inflation rates. Finally, Labour has pledged to ‘drive standards up’ by introducing a national register of private landlords, doubtless designed to weed out ‘rogue’ Landlords.Lib Dems

The Liberal Democrats‘ manifesto covers similar ground to that of Labour, in that it proposes standard ‘multi-year’ tenancies with rent increases linked to inflation. They also moot a ban on letting agent fees, although this would not be implemented until 2017 and would be on the condition that fees have not dropped to an ‘affordable level by the end of 2016’ following transparency requirements brought in by the coalition.

Nick Clegg has also pledged to introduce a new initiative called ‘Help to Rent’. With other parties placing sole emphasis on helping first-time buyers onto the property ladder, the Liberal Democrats would also aim to assist those struggling to save a deposit for a rented property. This would be aimed at first-time renters under 30, and would take the form of a government-backed tenancy deposit loan.

UKIP

UKIP‘s manifesto is another that focuses solely on home ownership and does not set out any major changes for Tenants or Landlords. They wish to build more affordable housing aimed at first-time buyers, and aim to bring some of England’s ‘279,000 privately-owned long-term empty homes’ back into use through increasing taxation on properties that remain empty for more than 2 years.Green

The Green Party manifesto usurps Labour’s proposals and sets out its own plans for what would be a highly regulated private rented sector. Natalie Bennett’s party would introduce a ‘living rent’ tenancy which would include five-year fixed tenancy agreements, as well as ‘smart rent control’ that caps annual rent increases to the Consumer Price Index.

Local not-for-profit letting agencies would be set up, and fees for tenants would be abolished across all agencies. A mandatory license for Landlords would be established, and alterations would be made to make buy-to-let mortgages less attractive, including removing tax incentives such as mortgage interest relief.

In Summary…

The Conservatives and UKIP seem content with the current condition of the lettings industry, and do not address private renters or landlords in their manifestos. The Liberal Democrats and Labour both outline alterations to the sector, with both parties agreeing on rent control, standard multi-year tenancies and regulation of agency fees. The most radical policies are those of the Green Party, whose plans would drastically change how renting works for tenants, landlords and agents.

On May the 7th, Britain’s political landscape may well change; it remains to be seen whether the private rented sector will also be affected.

Reside is OnTheMarket (.com)

Posted on by prateek

OnTheMarket

The launch of OnTheMarket.com on January 26th heralded an important day for the property industry; it saw the arrival of the first genuine rival to the two established property portals, Rightmove and Zoopla.

OnTheMarket.com provides the consumer with a cleaner and fresher browsing experience, free from the advertisements, promoted properties and unnecessary information which burden other websites. It is designed to automatically adjust to all manner of screens, so whether you’re browsing on a smartphone, tablet or a PC, you will always be given the most optimised version of OnTheMarket.com. iPhone and iPad users can now also download the OnTheMarket app, which has a similarly user friendly interface.

Here at Reside, we are delighted and excited to announce that all of our properties are now displayed on OnTheMarket.com, as well as across Rightmove and our own website. We have already started to receive leads through OnTheMarket.com and feel that it is on the way to quickly establishing itself as an essential tool for property hunters.

Despite only being a few weeks old, you may already be familiar with OnTheMarket.com; a major advertising campaign has started across a variety of national television channels, as well as on the pages of the UK’s major daily newspapers.

Click here to view all of our properties on OnTheMarket.com, and to have a look around their new website. We think you’ll be seeing a lot more of it for years to come.

Landlords & Tenants Endorse Bath’s Modern Makeovers

Posted on by prateek

An increasing number of contemporary new developments are being surreptitiously smuggled into Bath’s renowned Georgian architecture. Whilst a staggering 14% of buildings in Bath have listed status, well above the national average of 6%, developers have pinpointed certain areas of the city as ripe for a contemporary makeover – something that has gone down very well with both tenants and investors.

The latest addition to the city has seen Red Earth Developments rejuvenate twenty four studio, one and two bedroom apartments with allocated parking in the Lansdown area of Bath. Whilst these apartments do not reflect the traditional period splendour that one has come to expect from property in Bath, their modern and practical finishes have proved popular with tenants, especially with young professionals. At the time of writing, Reside has let six of these apartments for investment landlords, taking an average of just nine days to find each new tenant.

Reside has let apartments in several of Bath’s most recent developments such as Norfolk Court and Ladymead House, and a distinct pattern has emerged. For all the stunning architecture, high ceilings and period features that exist in Bath, there are a wealth of house hunters who are happy to eschew Georgian splendour. Some tenants, it seems, prefer contemporary comforts over classical cornices. Despite the differences between these two developments – one is a Bath Stone-clad new build with a stylish metallic upper tier, the other a Georgian building formerly used as sheltered accommodation for the elderly – they both boast stunning contemporary interiors with integrated appliances under warranty, granite work surfaces and wiring for satellite television and high-speed broadband. All of these factors make moving such an easy transition for new tenants, who have to act quickly to secure such a property. Our most recent Ladymead House apartment was bagged by a tenant before we could even begin to market it.

These new developments have also proved to be a popular way into the market for first time investors. Typically consisting of practical, stylish and high spec apartments, they are targeted towards the more affordable end of the investment property ladder, and come with long warranties which would provide any landlord, no matter how experienced, with peace of mind. At The Coachworks on London Road, Bath’s newest development, as little as £99,000 buys an investor an exclusive and modern apartment with instant access to the city centre. Based on our previous experiences with similar developments, such an apartment would come with strong tenant appeal and would be likely to let very quickly.

Bath is a city renowned worldwide for its stunning Georgian architecture, something for which many tenants specifically move to the city. For investors and certain tenants, however, contemporary and practical properties are becoming increasingly appealing.

If you are a landlord and wish to speak to us concerning your property, new or old, please do not hesitate to contact us.