Maximising your rental property income

Many landlords and property investors are wondering reluctantly if it's now the time to sell their rented property.  What with

• increasing tax on rental income since April 2017,
• the end of the furnished property tax allowance,
• and recent low rent increases

a property sale is something that property owners are beginning to *consider.

However, if you have any financial reserves to invest in enhancements to your rental property, this should help your property to

• let much more quickly,
• sustain the capital value,
• and increase the rental value too.

For example, we have a landlord who has just arranged to have their property redecorated, and to have new flooring fitted as well – at a total cost of £2100.  Once completed, and by using new photographs, we would expect to attract a new tenant much more quickly.  In addition, the rental can now be returned to the market level of £895 per month (previously appraised at £750 per month) and the landlord’s refurbishment costs will soon be recuperated with the additional £145 gained every month.

Property enhancements will also assist with improving your re-mortgage calculations.  With current low interest rates on buy-to-let mortgages, this is a great opportunity to think about whether re-mortgaging will make you considerable savings. 

Another one of our landlords recently re-mortgaged a buy-to-let property with a 2 year fixed rate, at 1.89% interest rate – saving £356.07 each month (previously £617.37, new mortgage £261.30). This adds up to over £8500 saved in the 2 years!

The Letting People’s refurbishment service can be used to bring your property up to a higher standard.  

*And, if you think it probably is time to sell, we can also help you too ….

If you just need

• a sales appraisal,
• professional property description and photographs,
• advertising on Rightmove, Zoopla, and Prime Location,

and if you know you can do the other work yourself (viewings, buyer negotiation, sales progression, etc) we can get you marketing your property online for just £399! …. or alternatively, we can also help you with optional additional add-on services such as

• a professional floor plan
• an openhouse event,
• and/or an eye-catching For Sale signboard

Also, it is important to remember that in order to ensure that you receive the best financial advice for your circumstances, it is always advisable to use a recommended independent financial advisor.

If you’d like to know more about rental property refurbishments, a property sale, or finding local financial advisors, please just ask.

What happened to all that well-deserved and stress-free time you promised yourself?

When you got into the property business – as an investor or as an accidental landlord – did you see it as a way to make a nice income without too much stress and hassle?

Was it going to be a great way to have a side job or your primary source of income?

Did it work out like that?  Or do you spend your time …

• Dealing with tenants’ requests and problems, repairing and maintaining buildings, or fixing and replacing appliances?
• Keeping up to date with new legislation, tenancy renewals, deposit registrations, and rent increases?
• Upgrading, cleaning, and redecorating between tenancies – then sorting out the ‘paperwork’ returning deposits and deposit claims?

And what about those dreaded void periods when you still have to pay the mortgage, the council tax, and utility bills?

As a rental property landlord, when was the last time you switched off properly? When was the last time you had real peace of mind?

With legislation changing constantly, are you considering – reluctantly perhaps – that it may be better to sell your property and be done with it once and for all?

Well, you’re not alone!

Many landlords like you are thinking that rental income tax increases and reduced tax allowances are making them wonder whether it’s worthwhile! 

What with:

• increasing taxes due on rental income since April 2017 – and they’ll continue to go up every year until 2020.
• the end of the furnished property tax allowance since 2016.
• and recent low rent increases, if any.

You may be one of the 20%* of landlords and property investors (selling over 4000 properties per month**) who think it's now finally the time to start to enjoy the capital they’ve made.  

Has the time come to “let go” and enjoy the fruits of your labour? You probably deserve it.

We’ve recently sold properties owned by landlords like you who wanted to realise a dream, to retire, to move abroad, do something new with their lives.

Some wanted to have better holidays or a new car. Others wanted to put the money towards improving their own property, helping their children through university or with their deposit and the first step on the property ladder.

Some of the buyers we worked with were also keen to earn from their new property straight after completing the sale.

• They installed new kitchens and bathrooms or refurbished throughout to increase the rental value considerably.
• They moved in themselves, did it up and sold at a profit.
• They moved a student daughter in (rather than renting for 3 or 4 years).
• They let it out for a while and plan to retire to it one day.                                                                                            

In addition, we’re often asked “But what about my tenants, when I sell the property?”

If you want to hold on to your tenant, we’ll work with them to help them make your property “viewing ready” at reasonable times of the day. The tenancy agreement could “transfer” to the new owner on completion, and your tenant could continue to enjoy living there and – as a regular payer of rent – they could even become part of promoting it.

To offer your property for sale without your current tenant, we can serve the correct notice for you to regain vacant possession, help you return the security deposit, and help you carry out any necessary repairs and maintenance.

If you’d like to know more about our no-stress, simple online way to sell your property, please call now on 01926 825041 to book your 10-minute initial conversation and start making plans!

We offer a low fixed fee and a no worry process, and you’ll find there are no hidden extras,                                     no sneaky add-ons, and the VAT is even included.

*This is Money   **Ministry of Housing report

It is important to remember that in order to ensure you receive the best financial advice for your circumstances, it is always advisable to use a recommended independent financial advisor.

Could you be missing out on a good tenant, by not allowing a cat at your rental property?

Perhaps you are a cat owner yourself, or alternatively a landlord who won’t consider allowing any ‘pet’ in their rented property. It often comes down to a either a positive past experience, or one of those scary ‘urban tales’ from the landlord’s family and friends…

Obviously, every cat – from pure pedigrees to moggies – has its own personality or behaviours that are probably worth looking into, and considering carefully, if you’re going to allow your tenants to rent with their favourite feline friend.

Here are some things to consider about lettings and cats:

Older and wiser …

Older cats are used to living with their owners and are often calmer – especially with a cat-flap in the door that allows them to come and go at will. They may also be a bonus in an area that may be prone to rodents – even the Prime Minister has an adopted cat from Battersea Dogs & Cats Home, Larry the Chief Mouser, at 10 Downing Street!

Cute kittens …

Kittens can be great fun (for the tenant) until they come home one day to find that the property has been turned into a playground and the kitten is halfway through destroying the landlord’s vertical blinds – or even the sofa! It’s probably best to only agree to a kitten in a fairly robust and unfurnished property, where the tenant provides their own blinds, curtains, and soft furnishings.

It’s also worth asking the tenants to put a detailed request in writing. For example: details of the cat’s size and age, and if this is likely to be a temporary or permanent arrangement.

Responsible pet owners expect extra costs to allow for additional wear and tear, and it may be reasonable to ask for some additional rent – say about £20–25 per month.

This will mean that you will be able to build up a small ‘repairs’ fund in order to quickly cover any additional work at the end of the tenancy (such as scratches to the doors).

If you agree to the tenants keeping a cat at the property, consider adding a pet clause to your tenancy agreement (signed by both parties).

Not all cats always have to mean a “no” …

Many tenants will have well-behaved cats due to good training and ownership skills. However, it is always advisable to put in writing what you both agree to be acceptable and to make it clear that you understand that a pet is an important part of your tenant’s life. In *2016 it was estimated that 11 million (40%) of UK households have pets, with 17% having a cat, so it can be a common request from tenants.

If you’d like to know more about lets with pets, please just ask.

This is a question we are asked by many landlords in so many different ways!

What with landlords facing increased costs through removal of tax allowances, changes in calculating your tax due on your property investments and the additional stamp duty, now is a good time to think strategically about your rental property and the demand in your local rental market. Many landlords say to us "even a small rental increase would be welcome"

This property in Marton had been let through The Letting People for some years and was in need of some updating work to attract professional tenants for a further 7-10 years.

Following a new kitchen, flooring, installation of gas fire and other refurbishment works this property was ready to go. The rental value increased by £250 per calendar month giving a return on the investment in just under 2 years.

Click here to view images of this property both before, and after! https://www.thelettingpeople.co.uk/userFiles/property_refurbishment_marton.pdf

On launching back on to the rental market, the property attracted immediate attention from professional tenants looking for an updated village property that was ready to move into – and was let in 1 day.

A win win for both the Landlord and Tenant!

Please note that all tenancies agreed on or after the 1st June 2019 will be in accordance with the Tenant Fees Act 2019.

Tenant fee and protection information

Effective from 01/06/2019         

As well as paying the rent, you may also be required to make the following payments

Permitted Payments

Before the tenancy starts payable to the Agent, Coverworld Management Services Ltd, T/AS The Letting People:

Holding Deposit: 1 weeks rent payable on application

Tenancy Deposit: 5 Weeks rent

During the tenancy

Payment of £50 if you wish to change the terms of the tenancy agreement in agreement with your landlord.

Payment of interest for the late payment of rent at the rate of 3% above the Bank of England annual percentage rate for each day that the payment is outstanding.

Payment of the reasonable incurred costs to replace the loss of keys or security devices.

Payment of any unpaid rent or other reasonable costs incurred associated with your early termination of tenancy in agreement with your landlord.

Payable to the provider, if applicable, as follows:

• Gas electric and water charges
• Communications including telephone and broadband
• Subscriptions including cable and satellite provider
• Television license
• Council tax

Other permitted payment

Any other permitted payments, not included above, under the relevant legislation including contractual damages.

Tenant Protection

Coverworld Management Services Ltd T/AS The Letting People is a member of UKALA Total Loss CMP. No 073584

Coverworld Management Services Ltd T/AS The Letting People is a member of the Property Redress Scheme

You can find out more details of Tenant Protection by visiting the scheme(s) website.

For tenancies not covered by the Tenant Fees Act 2019, such as company lettings, please enquire about fees payable.

We wish all our clients and customers a Merry Christmas and a Happy New Year. Please visit each branch page for details of their opening hours over the festive period. Thank you

Introducing Your ‘Good Tenant Guarantee’…

Landlords, are you:

1. Fed up with applications from unsuitable tenants?
2. Paying back refundable holding deposits and incurring Agent fees where applications have ‘fallen-through?
3. Concerned about empty periods and lost rent whilst looking for another suitable tenant?

Will your Tenant be a ‘good’ tenant?

Due to our extensive experience, our application and professional referencing service has been proven to reduce the possibility of a ‘bad’ tenant through our robust Tenant Application Progression service.

So here are the benefits:

1. In the last 12 months The Letting People’s ongoing services have achieved more than 99% of rent payments being paid on time (and with this meaning less than 1% average rent arrears
2. In the last 12 months no Tenant applications have failed references and fallen through. Meaning all applicants we progress have gone on to become tenants.
3. Unless the property is not available we can turn round the application process to handover in 7 days minimising your loss of rent for empty properties

What do we look for in your tenant’s references?

In the first instance we pre-qualify Tenant applicants to meet selection criteria and subsequent we will arrange to take up references including your tenant’s current:

1. Employment situation and gross earnings
2. Rental history and/or previous addresses (especially if they own a property)
3. Credit worthiness

In order to gain as clear a picture as possible of the expected tenancy.
Getting to know your new tenant …

Your Tenant Application Progression service (TAP) is an essential part of your necessary due diligence …

Find out more by contacting us on 01926 882555

Landlords is your property not letting? 

Wondered why other similar properrties are letting and not yours?

Maybe now is the time to consider the benefits to having additional marketing support from a letting expert?

Marketing support is all about getting more interest in your property from prospective renters to help let your property quickly with the support of a letting expert!

Ok, so all our letting services feature advertising on the main portals of Rightmove and Zoopla together with a host of other websites. 

However, the following specialist services are also available through your letting expert as part of your Letting and Property Management service, and can include:

1.    Proactive marketing to relocation agents and corporate home movers

2.    Targeted market options and referrals which may include 3rd party businesses such as Rent to Rent or Serviced Accommodation operators etc. 

3.    Changes to property advertising

4.    Changes or new photos or 3rd party photos upload for advertising

5.    Bespoke split testing or lead bait testing for Rightmove and Zoopla

6.    In depth marketing comparator assessment and report

7.    Uplift advertising options and marketing recommendations for landlord additional payment 

8.    Uplift options in our goodwill such as premium listing, social media etc

Call us on 01926 882555 to find out how we can help get your property let quickly!

Terms and conditions will apply

Ps We also offer range of  letting solutions such as a No Deposit option!

Making sure your property to let is rented out for the majority of the time is obviously the target for any landlord. But there will inevitably be times when tenants move out, and you need to re-let and get your property ready for a quick turn around for a new tenant.

Just as you would when you sell, it’s a good idea to get your property in the best condition possible.

When you’ve had someone renting your property for some time there will probably be the odd few things that might need some attention.

But what about cleaning? How clean should your property be when you’re trying to attract the most suitable tenants?

Give it your best shot

Our advice would be to make sure you give your property the best chance to shine (literally) when it’s being viewed by a prospective tenant. Just like when you sell a house or second hand car, you stand more chance of selling if it looks in tip top condition.

Research shows that the most common tenant ‘turn-offs’ were: 43% – dirty bathroom, 40% – dirty kitchen, 30% – dirty internal decoration, and 29% – poor condition of external decoration.

The better the standard of the property, the easier and quicker it will be to get those next tenants in and have it earning your money for you.

Attract the best type of tenant

A clean and well-kept property will also help you to attract the right best type of tenant. You’ll want someone with high standards and someone who takes care of the property; it makes your life easier when they eventually move on. So attracting the best tenant in the first place with a shiny hob and sparkling bathroom is a must.
 

Set the right tone

By letting your property in a clean state you’re setting the tone for your expectations of how the tenants will leave it in future. “This is how you found it, now leave it like this!” It’s far easier for them to keep-on-top of the cleanliness than have to organise a deep clean.

In addition to this, a clear inventory with a detailed schedule of the condition – including any marks, chips, or scratches – will also demonstrate how the property has been prepared before handover and how it should be returned at the end of the tenancy too.

A really simple way to approach all this is to get a professional cleaner in. At The Letting People we can recommend a reliable local company to do this for our landlords. Anything to make your life easier!

Let’s face it, most of these are very common:

• Not having hoovered up to the edge of  your carpets
• Cobwebs in corners which are thick with dust (they’re easy to overlook)
• Dreaded limescale on your grouting, taps and shower screen
• Grimy ovens as people don’t think to look inside. These are a big turn-off but easily sorted with the right chemicals and some elbow grease!
• Dirt and dust behind the sofa/bed/cooker/wardrobe and other hard-to-reach places.

That reminds us… here's a funny, but true story…

When going through our check-out inventory, a cleaning specialist found a large assortment of adult 'playthings' left in an ex-tenant's bedroom wardrobe!

We sent a carefully worded email to the ex-tenant asking them to collect their ‘items’ but surprisingly the email was never replied to and the items had to be carefully disposed of.

#Awkward! We’ve seen many things at The Letting People.

It’s always a good plan to set the standards high from the start…

If you’d like us to help with arranging deep cleaning for your property please do get in touch as we’d be happy to offer a recommendation of a local company to do this for you.