Category: Chamberlains Blog

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Landlords Don’t Be Fooled, Why Guaranteed Rent Isn’t Always the Answer

Landlords Don’t Be Fooled, Why Guaranteed Rent Isn’t Always the Answer

As a busy landlord juggling a portfolio of multiple properties, you might be thinking about ways to reduce your workload or secure a regular income. Have you been enticed by promises of guaranteed rent?

Guaranteed rental schemes or rent-to-rent (R2R, not R2D2) schemes are growing in popularity. But hold on for a minute, what do they actually mean?

In a nutshell, it’s where you rent your property to a rent guarantee specialist who promises to pay you a certain amount every month and takes on the burden of managing your property.

Sounds great, doesn’t it? But is it too good to be true?

In this two-minute read, we look at why you should be cautious of rent-to-rent schemes and how they could be less profitable in the long run.

 

Less rental income

While you might be tempted to enter one of these contracts, often, the way the business offering you the R2R option can be profitable is to offer you less than the typical market rate.

By offering you a lower rate for a fixed term, the R2R business model will only work if the person managing your property charges tenants a higher rate. Therefore, you could be earning significantly less than if you were to rent through a regular letting agent.

 

The unknown agent

Once you sign up, you’re basically losing control of your rental property for a fixed term. How many tenants will be living in your property? Who will ensure that all the correct procedures are followed? What happens if significant repairs are required? What’s the tenant turnover like?

While a lot of these details can be included in a rent-to-rent contract, as a landlord, you may be putting your reputation at risk by offering up your rental to a third party.

 

Fast cash

The attraction of the guaranteed rental model is quick profit and few overheads. Little to no experience is required before setting up this type of business. This means your rental investment may be put at risk by agreeing to work with people who have little, or no cash at stake. Can you really afford to hand over your hard-earned investment to someone with no proven track record?

 

Using a local agent

When you use a reputable local agent, they are regulated and experienced in letting out properties and often have a strong team behind them. They know what certifications are required, what makes a good tenant, and have access to tenancy deposit schemes and such like. So, you can feel confident in the knowledge that your property and tenants are looked after.

At Chamberlains, our lettings team has been working in the local community for many years.

We can achieve market rate rents and we keep our fees as competitive as possible. Call us on 01626 365055 for more information.

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Four Things You Must Do If You’re an Accidental Landlord

Four Things You Must Do If You’re an Accidental Landlord

If you’ve become a landlord due to unexpected circumstances such as bereavement or a new relationship, here’s some helpful advice. A two-minute read.

 

It’s surprising how many people become landlords more by chance than design – or in other words, ‘accidental landlords’.

Whether through inheritance, a change in a relationship or a new job, sometimes people find themselves in the (rather fortunate) position of owning a property that they don’t want or need to live in. And instead of selling up, the owner decides to rent the property out.

While this usually works out well in the long run, accidental landlords can slip up if they underestimate what the job involves – it’s not as easy as it looks.

Here are four tips for accidental landlords.

 

  • Talk to your lender

If you have an owner-occupier mortgage on the property, you must notify your lender if you intend to rent it out (otherwise you could be penalised). Sometimes, the lender will grant ‘consent to let’, which is permission to rent the property under your existing mortgage. But this is usually a short-term solution, and you’ll probably be expected to get a buy-to-let mortgage eventually.

 

  • Get landlord insurance

A bog-standard home and contents policy won’t suffice – you’ll need specific landlord insurance. Do your research on this because the policies on offer can vary significantly. On top of buildings and liability cover, some policies allow you to opt in to cover legal costs, loss of rent, or accidental damage.

 

  • Understand the rules on deposits

There are strict laws regarding tenant deposits. When a tenant pays you a deposit, you must register it within 30 days with a government-approved scheme. (This is a third-party scheme that protects tenant deposits.)

 

  • Get to grips with red tape

There are all sorts of laws – at least 175 – that apply to UK landlords covering everything from evictions and gas safety to electrical checks. It can be overwhelming trying to get your head around these, but most successful landlords develop systems to make sure they stay on top of things. And if you really wanted to sit back and let someone else take the strain, employ the services of a professional letting agent to do it for you.

 

To learn more about our property management services, contact us here at Chamberlains.

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Energy Bills: How to Avoid Disputes and Help Your Teignbridge Tenants

Energy Bills: How to Avoid Disputes and Help Your Teignbridge Tenants

This eight-point plan outlines the best way landlords can manage the issue of energy bills. A two-minute read.

This year’s colossal hike in energy costs has left millions of households reeling. And with no relief in sight, the problem is likely to stay at the top of the agenda throughout 2022.

 

Here’s an eight-point plan to help landlords deal with the issue as best they can.

 

  • Make sure your tenancy agreement clearly states who is responsible for paying energy bills (most typically, it is the tenant).

 

  • Even though your tenant will most likely pay the bills, do your bit to keep costs down by staying on top of maintenance and draught-proofing. Repair any rickety windows that might allow heat to escape and install energy-saving light bulbs.

 

  • Take a meter reading when a new tenant moves in and record it in the inventory. (That way, there can be no confusion or dispute with the previous tenant.)

 

  • Explain to your tenant (if the bill is in their name) that they are entitled to shop around for the best energy deal. Also, discuss the benefits of having a smart meter. These provide detailed energy usage information to allow tenants to understand what’s driving their fuel costs.

 

  • Some energy suppliers require a few days’ notice to end a contract. It’s the bill payer’s job to notify the fuel supplier. Your tenant may not be aware of this, so give them a gentle reminder a week or so before their tenancy ends.

 

  • When your tenant moves out, take a meter reading and pass it on to the relevant energy supplier along with the tenant’s forwarding address.

 

  • As the landlord, you’re responsible for the energy bills during void periods. Ensure that most of the lights are switched off (you might want to leave a few on for security purposes). In the warmer months, turn the boiler off, too. In winter, you might want the heating on intermittently to ensure the pipes don’t freeze and protect against dampness.

 

  • Consider investing in big-ticket energy-efficient measures such as solar panels, insulation, and triple glazing. These will bring down fuel bills and add value to your property.

 

Much of the above can be handled by an experienced letting agency – making your life a whole lot easier.

For more advice on our property management services, contact us here at Chamberlains.

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Quick Tips for First-Time Buyers in South Devon

Quick Tips for First-Time Buyers in South Devon

Taking that first step on the property ladder is simultaneously exciting and terrifying. No matter how old you are, buying your first property will make you feel like a proper grown-up.

Before you even find the right property, there’s lots to learn, so in this quick read, we’ve pulled together our top five tips for first-time buyers.

Be mortgage savvy

There are so many different options when buying a first home – whether you’re getting a loan from the bank of mum and dad, wading through Help to Buy admin, or going it alone. In every case, a mortgage is the first step you need to take.

For a rough estimate of how much you’ll need to borrow, there are plenty of online tools that can help. You could also speak directly to your bank or high-street lender about their mortgage deals. If you need some extra help, speak to us about a financial adviser or mortgage broker. We work with plenty of first-time buyers and have all the info you need.

Be real

When you first start looking, it’s important to be realistic about your budget. By looking at properties way outside your price range, you could find it harder to see the potential in those that suit your current financial situation. Get yourself a vision board and focus on the things you really need from a new home.

Be in the know

Newsflash: not all properties are on Rightmove or Zoopla. While these sites give you a good idea of what’s available and for how much, by registering with agents such as ourselves, we keep you in mind (and updated) before something even goes online.

There’s nearly always competition for a property, so it’s best to speak to experienced agents and register what you’re looking for instead of just relying on the internet.

Be open

You might have a very specific list of requirements, such as area, parking, outside space, and so on. However, it’s important to be flexible when you view a property. It might not tick every item on your list, but it may also have tonnes of potential. Always view a property before you rule it out.

Be calm

Once you’ve found a property, stay calm. If you’ve got your mortgage sorted, you’ve got a conveyancer, and you’re regularly in touch with your agent, there’s no need to worry. We understand there’s a lot to get done before you exchange; our job is to help you take any stress away.

We have served many first-time buyers at Chamberlains over the years, and we’re ready to help you get your feet on the property ladder. Contact us on 01626 365055 today.

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Calling all businesses and individual local school children need you!

Calling all businesses and individual local school children need you!
Through no fault of their own, or their schools, local children may be missing out on learning due to lack of devices.
 
To help, we’ve purchased £7,500 worth of new tablet computers and are in the process of delivering them to 21 schools across Teignbridge. 💙 There is a HUGE need from schools and so we’d really like to encourage other local businesses to do the same and donate equipment if they can.✨💻✨
 
We need to invest in our future generations, especially during this pandemic. Just one device that gives a child a chance to keep learning during lockdown is invaluable.
 
If businesses or individuals would like to donate new laptops or tablets to local community please do get in touch by emailing mail@chamberlains.co – we’d be happy to give tips and advice.
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Good Tenants + Great Letting Agents = Happy Landlords

Good Tenants + Great Letting Agents = Happy Landlords

In this three-minute read, we look at the two biggest decisions landlords make when renting out their property. 

Life is a daily merry-go-round of decision making.

What to eat for breakfast?

Which coat to put on?

Which queue to stand in at the supermarket (socially distanced, of course)?

Some decisions are a lot more impactful than others.

Especially when you are a landlord with a rental property.

The two biggest choices for you as a landlord, which we are about to reveal, can have substantial knock-on effects on your health, wealth, and happiness.

The choice is yours

It’s no exaggeration to say that if a landlord chooses the wrong letting agent and compounds that error by going with a tenant who has not been appropriately vetted, one thing is usually guaranteed – a big headache.

And often one that’s not easily cured by a couple of aspirin.

Poorly vetted tenants cause the most problems and letting agencies that don’t have stringent policies, procedures, and checks in place, leave their landlords wide open for future issues.

At Chamberlains, we’ve always believed the most critical aspect of our role is to ensure the right tenants are placed in suitable properties with the right landlords.

How do we do that?

Well, years of letting experience has taught us what to keep an eye out for.

The first stage of the vetting process is the initial enquiry. Be it a phone call, email or someone popping in to our office, we’re looking for signs to show us whether they might be a perfect or problematic tenant.

That experience we mentioned counts a great deal at this point.

What does a good tenant look like?

Simply someone who pays their rent on time, looks after the property like it’s their own, is courteous to deal with, and causes no problems with the neighbours.

These are all factors which can create the foundations for a successful long-term let (unless of course, the landlord is seeking a short-term tenancy).

The next part of the process is where less adept or inexperienced agencies often fall short.

Referencing responsibly

Good quality referencing is vital for doing the background checks, which can flag up issues before they become problems.

Referencing covers the applicant’s employment, credit scores, and previous rental history.

It’s not an exact science, but when done correctly, it’s usually an excellent indication of the calibre of the person applying to rent your property.

Once a tenant has been selected, the property needs to be professionally and ethically managed.

Keeping a tenant waiting a long time for a boiler repair or regular maintenance could lead to issues in the future, which leads us onto…

It works both ways

We also apply a vetting process to our landlords as well as our tenants.

If you are not willing to repair or maintain your property properly, we are probably not the letting agents for you.

In the same way that we always look to find the best tenants, we also want to work with the most responsible landlords.

If, having read this article, you’ve decided you need a letting agent who takes their responsibilities to you seriously in 2021, give us a call.

We’d love to help you make the correct choices for you, your tenants, and your rental investments.

Thanks for reading.

 

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Will You Be Enjoying a Big Bubble or a Little Bublé this Christmas?

Will You Be Enjoying a Big Bubble or a Little Bublé this Christmas?

In this two-minute read, we look at what the Christmas announcements mean to households.

This year has been filled with anguish and anxiety for many of us.

But the news that coming out around successful vaccines and the announcement of the temporary relaxation around social distancing rules over Christmas has cheered up many of us.

And in true Christmas miracle fashion, it’s got the four national governments of the UK to take a united approach.

For five days, people have the option to celebrate the festive period with selected families and friends.

Here is some of the Government’s guidance for England around the rules for 23 to December 27 as reported by the BBC.

  • Up to three households will be allowed to stay together and form a “Christmas bubble.”
  • You can form a different Christmas bubble from the people you live with usually – so you can choose to stay with different people for the five days.
  • You can meet people outside your Christmas bubble. But only outside the home and in line with the rules for the tier in which you are staying. Places you can meet those people include parks, beaches, open countryside, public gardens, allotments and playgrounds
  • Children under 18 years-old whose parents do not live together may be part of both parents’ Christmas bubbles.
  • Existing support bubbles count as one household towards the three-household limit.
  • Students are considered to be part of the household to which they have returned.

According to the BBC, the decision will be based on several factors, including case numbers, the reproduction rate – or R number – and the amount of pressure on local NHS services.

For some families, it will be a difficult choice around who to share Christmas with.

There’s always the option to stay within your established bubble (AKA your immediate family).  This way, you won’t fall out with the in-laws, and you’ll be keeping seriously safe.

So, what will you be doing?

Will you be planning a three-family bubble with all the traditional works?

Or are you going for a lower-key approach, with a smaller turkey and Michael Bublé’s Christmas songs providing the backdrop?

Whatever you plan, we hope you have a safe, memorable, and happy time.

From all at Chamberlains.

PS: Here is the link to the Government’s Advice. (England Only)

https://tinyurl.com/y5czwlkc

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Advice for Landlords on Tenants with Pets

Advice for Landlords on Tenants with Pets

In this three-minute read, we look at the pros and cons of letting a property to a tenant with a pet.

Should tenants be allowed to keep pets in rental properties? It’s a thorny subject that is back in the spotlight after an MP called for landlords to be more flexible on the issue.

Conservative MP Andrew Rosindell argues that preventing tenants from being with their beloved pet companion is cruel and discriminatory.

“For most people, being separated from your dog is really no different than being separated from your brother or your sister,” he says.

Mr Rosindell has put forward a bill that would give tenants the right to live with their pet, providing that they can show they are responsible and caring.

Changing attitudes

While the bill is still some way off becoming law – it’s not clear yet whether enough MPs will back it – it does indicate a growing interest in the issue.

A study by YouGov and Mars Petcare found that two-thirds of private tenants would like to have a pet.

However, only around 7% of landlords advertise homes as suitable for pets, meaning there’s a yawning chasm between the number of renters who yearn to have a four-legged friend of their own, and properties where this is possible.

Decisions for landlords

Landlords have an ultimate say over whether pets are allowed in a property, although the Consumer Rights Act 2015 prohibits blanket pet bans.

Instead, landlords  can include a clause in the contract requiring tenants to request permission to keep a pet. Landlords can refuse a request but need to provide a good reason for doing so.

If you receive such a request, here are a few key issues to consider.

Cons

1 Introducing a pet into a property can increase the risk of costly damage. Some landlords have horror stories about dogs digging up gardens, and cats clawing furniture and leaving carpets flea-ridden.

2 If the property is leasehold, some leasehold agreements do not allow pets.

3 Barking dogs can upset the neighbours and be a source of ongoing dispute.

Pros

4 Allowing a reliable tenant to keep a pet could encourage them to stay long term, meaning you don’t have to bother finding new tenants and running more reference checks.

5 Allowing pets could make your property more marketable and therefore you can raise the rent.

6 Rodent reduction – Cats kill rats and mice, so provide an element of pest protection.

Other points of consideration

7 Not all pets are equal. The impact of having a 90kg Great Dane living in a property differs greatly from a caged hamster or a cat. Talk in detail to your tenant about the pet they would like to have, and how they intend to look after it.

8 If the tenant owns the pet already, ask to set vet records to ensure it is vaccinated and microchipped.

9 If the tenant kept a pet at their previous property, ask for a reference from the landlord in question.

10 Make specific provision in the contract for the pet in question so that your tenant can’t take advantage of your generosity and acquire a menagerie of animals.

If you’d like more advice about dealing with tenants with pets, get in touch. Here at Chamberlains, we can provide a detailed briefing about how to stay on the right side of the law and protect your property.

 

 

 

 

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Things Teignbridge Sellers and Buyers Should Do Now If They Plan to Move Next Year

Things Teignbridge Sellers and Buyers Should Do Now If They Plan to Move Next Year

Things Teignbridge Sellers and Buyers Should Do Now If They Plan to Move Next Year

In this three-minute read, we share our five-point plan for a smooth move in six months’ time.

Moving can be stressful ­– some people rate it right up there with divorce in the aggravation stakes – but there are ways you can take the drama and disruption out of the process.

The first step is to acknowledge that buying a new home is likely to be one of the biggest purchases you make in your lifetime.

And if you plan to sell a property to fund your next move, you’re effectively carrying out two incredibly important transactions in one hit. (No pressure then.)

Given the magnitude of the task, if you want to move in 2021, we advise you to start working towards that goal now.

The process always takes longer than you expect, so use your time wisely now so that you can move when the time is right next year.

Here are five tips to pave the way for a successful move.

Research prospective areas

You probably have an inkling already of where you would like to live, but until you get into the nitty-gritty, you won’t know if your dreams are realistic. Review local property prices, pinpoint favourite streets, revise school catchment boundaries and check if there are any major residential or transport projects in the pipeline that will impact the area.

Sort out your budget 

Scrutinise your finances to get a clear picture of your income and spending. Be honest about what you can afford. Consider how your responsibilities might change in future if, for example, you plan to have children or change careers. Identify the size of the deposit you will need, along with costs such as Stamp Duty, legal bills, surveying fees, mortgage insurance, and removals. A free financial review will help. 

Research mortgages

The good news is that interest rates are currently low. However, uncertainty in the market means those looking for a high loan-to-value mortgage may struggle to secure one as many lenders have pulled them altogether. Analyse a wide range of deals to get the best product for your situation. Find out about the best deals for you.

Basic maintenance and refurbishment

Once you know what you’re aiming for, it’s time to get your house, quite literally, in order. Give tired rooms a lick of paint, and mend broken windows, doors, and cupboards. Plant spring bulbs in the garden so that your yard is brimming with colour by March. If you’re considering complex renovations, such as installing a new kitchen or bathroom, get a second opinion. Will you recoup the costs of a major refurb when you sell? Ask an estate agent for their expert opinion.

Declutter

Working on a room-by-room basis, get rid of unwanted items. If an item has some value, sell it online. If not, take it to the tip. Sorting out all your belongings now will mean you won’t have to do it closer to moving when you have other things on your plate. It will also make marketing your property much easier and help you achieve maximum selling price.

If the events of 2020 have made you consider moving, come and talk to us here at Chamberlains. We can give you friendly, expert advice about where the market is heading and the outlook for 2021.

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What Teignbridge Landlords Need to Know About Evictions During Lockdown 2

What Teignbridge Landlords Need to Know About Evictions During Lockdown 2

What Teignbridge Landlords Need to Know About Evictions During Lockdown 2

In this two-minute read, we look at the new rules on eviction enforcement during the latest lockdown.

 

Housing Secretary Robert Jenrick has announced a ban on bailiffs carrying out eviction enforcement during the lockdown in all but the most serious of cases.

 

While the courts are continuing to hear eviction cases, under the new rules announced last week as England returned to lockdown, bailiff enforcement action cannot be implemented until January 11, 2021, “at the earliest”. 

 

Mr Jenrick says the move protects those who have found themselves in financial difficulty through no fault of their own “while ensuring landlords have access to justice in the most serious cases”.

 

He adds: “We are now going further by protecting renters from eviction during the new national restrictions and throughout the Christmas period – with a pause on bailiff activity other than in the most serious circumstances, such as anti-social behaviour or fraud.”

 

There are a few exceptions to the enforcement ban. The bailiffs can act on cases of illegal occupation, fraud, anti-social behaviour, eviction of domestic abuse perpetrators in social housing and where a property is unoccupied following the death of a tenant. 

 

The government says it also intends to introduce an exemption for extreme pre-Covid rent arrears.

 

Uncertainty and case backlog

The latest announcement from the government adds another layer of complexity to the legal landscape when it comes to evictions.

 

This year landlords have had to contend with an eviction ban and an extension to the eviction notice period.

 

To further complicate matters, courts in England are currently working through an unprecedented backlog of cases caused by the first lockdown and eviction ban.

 

As a result, any landlord considering eviction proceedings should prepare for nightmarish delays (and bear in mind that even in the pre-COVID-19 era, the process took months).

 

That’s why here at Chamberlains we advise landlords to view eviction as the absolute last resort. 

There are several ways to avoid the tenant-landlord relationship breaking down to the extent that eviction is the only answer. 

 

By investing time and effort into managing your tenant relationship, and by being thorough with reference checks, record-keeping and inspections, many issues can be resolved without legal action.

 

And if a dispute does occur, expert negotiation and communication can mean a finding a solution without the lawyers getting involved.

 

Investing in a professional letting agent can save you as a landlord time, money, and stress. As the nation continues to navigate its way through the uncertainties of the pandemic, having an expert on your side who can look out for your best interests will help you sleep well at night.

 

If you’d like to know more about how to avoid getting tangled up in the messy eviction process, then get in touch with us here at Chamberlains. We’re happy to provide expert advice on how to manage property investments while staying on the right side of the law.