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Is A Leasehold Property A Good Buy-To-Let Investment?

Posted on by Tim Hill

[Image source: Deposit photos]

When investing in a buy-to-let, there are countless considerations to make, but one that often gets overlooked in discussions is whether looking at leasehold properties is a good use of an investor’s time. When you buy a freehold building, you own the building and the land it’s on until the time comes to sell it, but leasehold means you only own the building for a set period. So, what does this mean for landlords, and are leasehold properties a good investment?

What is a leasehold property?

A leasehold property means you own the property in question for a specific length of time, which is the term of the lease. When the lease expires, the ownership transfers to the person or entity that owns the land. For a landlord, the idea of the investment simply being lost can be a frightening prospect and can put people off wanting to invest in a leasehold home.

Leases can range from 99 or 125 years all the way to 999 years, the latter of which is as good as a freehold. Theoretically, the closer the lease expiry date is, the less valuable it becomes and it can be harder to recoup your investment if you’re looking to sell. If the remaining term falls to 80 years or less, it can be hard to obtain a mortgage on the property, which is something potential investors need to bear in mind when looking for buy-to-lets.

The key differences with a leasehold property

Most leasehold properties are flats, though a leasehold can apply to any property. Properties purchased through the shared ownership scheme may also be leasehold. Because a leasehold means you don’t own the land the property sits on, you don’t have any ownership of communal areas in the case of a flat, meaning stairs, hallways and gardens are not your sole responsibility.

However, while leaseholders usually pay a set fee to the freeholder which goes towards the maintenance of these areas, from June 2022, new legislation on ground rent charges means these rents will be banned on new residential leases to avoid future rent increases, which makes leasehold properties more affordable.

What to consider before investing

The first question an interested landlord needs to ask is ‘does the lease permit letting?’. Not all leases will allow you to sublet the property, so if your intention is to purchase the home as a buy-to-let, this is a critical question to ask. If you go ahead with your buy-to-let without checking this first, you could find yourself in breach of your lease and that can come with fines and complications later on, so it’s important to check first.

Landlords also need to ensure they take into account the cost of maintenance and repairs for the property, as with any buy-to-let, which some leases enforce via a sinking fund to cover any unexpected repairs. Investing in a property as a buy-to-let means landlords need to think about the saleability of the property for the future, as it’s not their primary residence. Problems can occur, as previously stated, if the lease is less than 80 years, so extending a lease may be beneficial when purchasing the property but this can be a costly endeavour.

The benefits of leasehold buy-to-lets

It’s not all bad news when it comes to a leasehold property, especially when it comes to finances. Because of the challenges that you need to face when you buy a leasehold property, you can often find great bargains on the property market as they’re less appealing for many investors. If you’re willing to overcome these hurdles, you could find yourself getting a great deal upfront compared to a freehold.

There are some restrictions with this type of property, because you’re effectively renting space from another landlord who is the freeholder, so you’re at their mercy in terms of what you can do to the property. However, from a landlord’s point of view, the likelihood is you only want to make the property presentable and won’t be investing in any large-scale renovations, so this may not be an issue at all.

It may be possible to extend your lease if you’ve owned the property for at least two years, or if it only has 80 years or less left. Extending sooner rather than later is the best option, as the shorter the remaining lease is, the more expensive it will be to extend. Lease extensions are usually for 90 years, and the cost is typically 50% of the ‘marriage value’ of the property, or the extra value the property would gain from the longer lease, as well as legal fees, Land Registry updates and property valuations.

Is investing in a leasehold the right decision?

The process of investing in any property is complex and time-consuming, and it requires in-depth research to ensure you’re making the right choice. A leasehold may seem more complicated than buying a freehold to rent out, but it can still be a highly valuable investment depending on the buyer’s circumstances. Of course, this might not be the case if it is sat on the market with a short lease and you need to sell it fast.

The trick to investing in a leasehold is finding an agreement that suits the needs of the investor. If it’s an affordable property with agreeable lease terms and you aren’t in any rush to sell the property on, it can be a great way to save money upfront and grab a bargain. There’s certainly nothing wrong with investing in a leasehold property, if it meets the criteria you need from it – you simply need to be aware of the differences that a leasehold property has to a freehold.

There are also some unique perks, such as not needing to worry about the upkeep of communal areas, which frees up your time when you’re managing your buy-to-let portfolio. The best advice for landlords looking to buy a leasehold to rent out is to seek professional advice and speak to local buy-to-let agents who can offer advice based on the potential yields for the surrounding area. This will ensure the best returns, whatever the type of property bought.

Helping Viewers See The Full Picture: How Agents Can Highlight Potential

Posted on by Dakota Murphey

[Image source: Deposit photos]

When your agency or property management company is tasked with selling a home, it often goes one of two ways; the property is in great condition, has been renovated and practically sells itself or it’s time to get creative as there’s not much to shout about. In scenario two, the best way to sell the property is to highlight its potential, but sometimes it can be difficult to see where that potential lies.

If you’re struggling to see it, then there’s a good chance that viewers are going to encounter the same problem. To help viewers see the full picture of your property portfolio, here are some helpful tips to share as you show people around.

Increasing the property’s footprint

Most people want as much space from their new home as possible, perhaps because they are looking to move to something bigger or they are simply trying to move up the property ladder. Building outwards is one of the easiest and most common ways to improve the footprint of any property, with rear extensions being favoured as most people are happy to lose some of their gardens to improve their indoor living space.

According to CheckATrade, the average cost of a 20m2 extension is £44,000 while expanding a home can add between 10 – 20% to its value. So not only can you use adding an extension as a way to improve potential buyers’ lives and living spaces but also it can be a way to improve their returns when they come to sell.

Adding extra storeys

If the outdoor space is already limited or there isn’t much scope for a rear extension, consider whether an additional storey is a viable option. This could be a loft conversion which can be a quick way of increasing space and adding value, or perhaps a basement with lower floor conversions, which can be a great way to improve the energy efficiency of a home as there are fewer directly exposed external walls.

Of course, there is also the potential for a double-storey extension which will greatly increase its capacity but will require substantial funds. As an agency or property company, you can check whether a house is suitable for extension or additional storeys by asking for pre-planning advice from the relevant council.

Having an informal discussion can give you enough scope to know whether an extension is viable and if it’s a smart marketing strategy as you show viewers around. It requires some additional groundwork on your part but can be worth it to paint a better picture of the property’s potential to viewers who may otherwise be unsure about an extension.

Decluttering and cleaning

House viewers want to be able to imagine themselves living in the property they are being shown around but one filled with clutter and that needs cleaning can be a distraction from those thoughts. For starters, a decluttered home allows viewers to better understand how much space there is in the property they are viewing.

It is also much harder for them to envision how they would live their lives in a house if someone else’s clutter is everywhere to be seen. Sure, it’s not possible to remove the vendor from the home but encouraging them to make their home as aesthetically appealing as possible is a great boost to their chances of selling.

Similarly, a viewer who goes into a home and is met with visible dirt or dust, or perhaps some unsavoury smells, is going to have to work hard to overcome those issues to imagine themselves living there. It might be fine for a buy-to-let buyer but if you are selling the property as a home rather than an investment then it must be set up to succeed, rather than fail.

Acquiring nearby land

Sometimes an opportunity presents itself that allows a buyer to invest in more than they initially think. Consider whether there is any adjacent land available, whether it’s from a neighbour or even just a bit of extra land a freeholder is willing to part with.

This can greatly improve the prospects for potential buyers as they can expand their home, add an outbuilding, add electric car charging or look for further investment opportunities. A quick enquiry with the Land Registry can let you know who owns the land and whether it’s possible to approach a sale.

Updating doors and windows

Doors and windows can be an important selling factor when it comes to buying a home. With old doors and windows, the buyer knows the time they have until they need replacing is limited but again this is an opportunity to highlight the value of upgrading.

Whether it’s the front door, side door, or garage door, security shouldn’t be overlooked and the same goes for insulation levels, where you can show the EPC potential can enjoy a sharp rise with some new doors and windows.

Reconfiguring the layout

Open-plan living is very popular at the moment and while you won’t be able to reconfigure the layout yourself, exploring the options ahead of showing people around can help put the home’s potential into perspective.

Homes with dated kitchens are a great opportunity to showcase the potential in an open-plan layout as people will already be feeling as though they want to update it. Similarly, outdated bathrooms are a great selling point and shouldn’t immediately be something to try and gloss over.

Spending time layout out and describing what improvements are possible and how they could be easily implemented is useful information that viewers can take with them as they think about their options. Updating both rooms will not only represent a great investment but provide real value to the people who live there.

Other layout considerations to point out to potential buyers include installing a downstairs loo, adding a room in the garden as an office or creating a kitchen diner to free up another room in the house.

Are Top Floor Flats Harder For Estate Agents To Sell?

Posted on by Dakota Murphey

The sale of flats and apartments makes up around 1 in 5 homes in the UK (and about half of all property transactions in London). Recent price inflation has lagged behind the growth enjoyed by houses and many factors have contributed to slower capital growth for leasehold flats, among them the leasehold and cladding scandals of 2017 and the COVID-19 pandemic.

However, in 2023, the demand for flats and apartments in the UK is expected to strengthen. Urban living is gaining traction again post-covid, while budget-squeezed households and high mortgage rates mean property buyers are looking for affordability and value for money.

Of course, it’s easy to make sweeping statements and predictions, but don’t forget that demand is also majorly affected by property specifics. Flats come in all shapes and sizes and can be found in a wide range of locations, sited on different floors in purpose-built blocks or converted buildings. Some are new-builds and are assumed to be in pristine condition, while others are charming period flats with original features. And that’s before their leasehold status is taken into account…

In this article, we’ll take a look at the desirability of top floor flats. Is it easier or harder to sell a property on the highest floor of the building? What are the advantages of living on the top floor? Are there any perceived drawbacks of this type of property and how can estate agents address potential buyer concerns and allay any fears?

What are the key selling points of top floor apartments?

Top floor flats have several obvious advantages over properties on lower floors, and these selling points provide excellent opportunities for marketing the sale:

Great views

One of the main attractions of living in a flat on the top floor is the views over the neighbourhood. Depending on location, this could be a panoramic sea view, a sweep of the eye across the city’s rooftops or a glimpse of greenery in a public park on the opposite side of the road. Urban property buyers, in particular, will be looking for great views, with London’s iconic cityscape being top of the list of desirable vistas.

Natural light

Abundant natural light is high on homebuyers’ wish lists, especially in smaller properties where it can add a sense of space. In a recent survey, nearly 85% considered this the most important criterion when buying a property. Compared to ground floor or mid floor accommodation, top floor apartments have a natural advantage when it comes to light. Maximise the effect by opening curtains and window dressings to let the light flood in and show off the bright and airy feel that buyers love.

Greater privacy

Privacy and seclusion are also highly prized, particularly among city dwellers who tend to be looking for a peaceful sanctuary to retreat from the urban hustle and bustle. Moving to the top of the building means less traffic noise from the streets below, less commotion on stairways and lifts and generally fewer disturbances. With nobody living above and the windows ideally not overlooked by nearby buildings, a top floor flat combines the convenience of urban living with the ultimate in privacy.

Good security

Being the least accessible property in the building has definite advantages when it comes to home security. Most burglaries are initiated by thieves spotting an opportunity such as valuables left in plain sight, an open window or unlocked door to gain entry. It is the reason why ground floor and basement flats are at greater risk of break-ins. None of this applies with a top floor flat, which is inherently the safest place to be.

Adding value

While it is much more difficult to add capital value to a leasehold flat compared to a freehold property, there may be an opportunity with a top floor flat. It may be possible to develop the unused loft space above, subject to the lease and the necessary consents being obtained. If the attic does not form part of the demise, could the freeholder be approached with an offer to buy the space in the loft? It’s worth pointing out the possibilities to any interested buyer.

What are the potential drawbacks of top floor properties?

Top floor apartments can be an excellent purchase, and the best properties should have no difficulty achieving the optimum price. In some cases, people prefer a low-rise flat because they are scared of heights or are worried about the re-sale value. Flats on a short lease might be even tougher to sell if they are on an unpopular floor in a building. That said, agents need to be prepared to address some of the downsides potential buyers may identify and counter any negative perceptions.

Too many stairs

A flat at the top of the building means many flights of stairs to climb, unless of course there’s a lift. Older properties and period conversions may not have one, which could be a real problem for young families with babies in prams, elderly people and those with mobility issues. Even fit and healthy buyers may feel uncomfortable having to go beyond the second floor to carry the shopping up or the bins down, and bulky deliveries such as furniture could also be an issue.

Roof leaks

It goes without saying that properties on the top floor, with no one living above, will be most vulnerable to any damage caused by roof defects and water leaks. Most top floor flats will be absolutely fine and unless there’s any evidence to the contrary when buyers come to view, there’s no reason to draw attention to issues that don’t exist. In any event, should water start leaking through the ceiling, the freeholder is typically responsible for any roof repairs.

Lack of outdoor space

Ground floor apartments and basement flats may have the benefit of a patio or private garden, which constitutes a valuable asset that top floor accommodation simply cannot provide. In fact, outdoor space is much harder to come by in apartments at the top of the building, but usually, the abundance of natural daylight and great views make up for it. Top floor flats with a balcony, a roof terrace or even a roof garden, and luxury penthouse apartments, are clearly premium properties and need to be marketed as such.

Conclusion

In the end, there’s unlikely to a simple answer and most often it will come down to the individual apartment you are trying to sell. Whilst many of the negatives to top floor flats are self evident to potential buyers, it’s important to check for all the positives as well, know the positives as some might be more easily missed. This should help you to achieve maximum value for your clients.

What Will Really Matter In The 2023 Property Market?

Posted on by Dakota Murphey

Buying a home is a huge decision, and one that is obviously going to be influenced by the prevailing economic climate and personal financial situation. That said, while the housing market, along with the rest of the economy, may be experiencing a period of uncertainty at the moment, this doesn’t mean that people won’t be moving home.

When it comes to choosing the right new home, every buyer has a list of must-haves and need-to-haves that will be used to assess properties listed for sale. So, what is it that buyers are looking for in 2023? According to a recent survey, 54% of potential buyers were looking for a garden as their top asset, 50% wanted a nice kitchen, 44% prioritised parking or garage space, and 36% were looking for a nice bathroom. Add to that the rising importance of having an energy efficient home, and a picture appears to be emerging. Let’s take a closer look.

Energy-saving features

According to Rightmove, buyers are now increasingly searching for sustainable properties or homes that have at least some eco-friendly features. Not that long ago, green home features were seen as nice to have by homebuyers keen to make a positive contribution to the environment. However, the current cost of living crisis, skyrocketing energy bills and the global oil and gas crisis have put energy-saving features firmly into the ‘must have’ camp.

Searches for properties for sale that have solar panels or heat pumps fitted have increased significantly over the last few years, and the trend is set to continue. Even without any new technologies, buyers are now more concerned than ever before about energy efficiency.

From double-glazed or even triple-glazed windows to loft insulation and cavity wall insulation, high-efficiency boilers and LED lighting and more, there are many ways that a property can achieve a favourable EPC rating and add value.

Private outdoor spaces

Ever since the recent pandemic-induced lockdowns have shown us the importance of having access to a garden, a patio or even just a balcony, properties with outdoor space have become much more sought after.

A simple, lawned garden space may be all that’s required for buyers to be interested, as long as it’s well-maintained and easy to look after, or presents an opportunity to get creative. Wooden decking or paved patios are also high on the list, either as a no-maintenance urban garden option or for dining, socialising and entertaining and as a peaceful space to relax.

Creating a seamless connection between outdoor and indoor living spaces is another major trend, epitomised by the ubiquitous bifold doors adorning kitchen/diners and living rooms. And it’s not just about ‘bringing the outside in either. These days, ‘taking the inside out’ means creating living spaces in the garden, be it outdoor kitchens, alfresco dining rooms, or lounging and chillout areas. The latest pergola designs come with retractable roofs and side panels for shade and shelter as you can see here, fully able to withstand the elements and ensure year-round use.

Large family kitchens

The kitchen has long since been hailed as the heart of the home, and this trend isn’t going anywhere fast. This is the room where family and friends congregate, and not just at mealtimes.

Some would argue that the kitchen is the most important room in the house and it’s a well-known fact among estate agents that kitchens sell houses. A generously proportioned, welcoming and convivial space with a kitchen island is what most buyers will want to see.

Kitchen redesigns can be expensive and disruptive. A recently updated kitchen with modern cabinetry and plenty of storage, and in a style that complements the rest of the property, is one home improvement that is sure to pay big dividends.

Open plan kitchens/diners are still the gold standard for interior layouts, however people are also rediscovering the advantages of having separate living spaces. Perhaps the lockdowns are also responsible for this shift in perspective. After all, when the entire family is spending time at home, it’s useful to have doors you can close to provide peace and privacy. Even a separate snug, den or box room can make all the difference – plus it has the potential to be transformed into a home office for working from home.

Indulgent bathrooms

Kitchens may sell homes but bathrooms are also receiving a lot of attention. As the concept of self-care is becoming more widespread, buyers are looking for recently updated bathrooms that have separate showers and baths to accommodate different needs: function and rest. A traditional shower over the bath can be seen as old-fashioned and not up to speed with current lifestyles.

Bathrooms are also a prime contender for underfloor heating, which adds a luxury feel. There’s nothing like stepping out of the bath or shower onto warm floors below, especially during colder months, and especially in our temperate climate. Indeed, luxury and indulgence are the main watchwords for bathroom features.

Finally, it is interesting to note that the absence of a downstairs WC can be a dealbreaker for many potential buyers. Whether there’s space under the stairs to fit a small washroom, or it can be added (along with a utility room) with a house extension, it’s an investment well worth making when it comes to sell.

Home security system

Having a modern home security system to protect the property against intruders is proving to become a popular feature that home buyers are looking for. From smart doorbells to security cameras or intruder alarms, there are many ways to add extra security features to keep the occupants safe.

Then there’s the automatic control of electronic devices in the home, such as lighting or heating but also including Internet-of-Things devices such as smart fridges and home security devices, via internet technology that can be controlled remotely to make life more convenient and save on bills. Whether you’re a property manager looking after a property for sale or rent, or you’re a homeowner looking for your next home, smart home automation is the gold standard.

5 Steps to Easier End-Of-Tenancies

Posted on by Dakota Murphey
[Image source: Deposit photos]

It is in everyone’s interests to ensure the end of a tenancy is handled as smoothly as possible. While there is a lot to think about, making preparations early on means it doesn’t need to be a headache.

Read on for five steps to easier end-of-tenancies.

1. Give the appropriate notice period

The end of a tenancy starts with your tenants giving you notice or you terminating their tenancy. The exact amount of notice required will depend on the terms of the contract but a minimum of four weeks is usually required from either party.

This period allows time for a tenant to find a new property and remove their belongings from their current one. It also provides you with some time to seek new tenants or list the property for sale if you plan to reduce your letting portfolio.

Before the deadline for ending the tenancy comes around, it’s wise to be prepared for what you will need to do as a landlord. There are various things to consider including your legal responsibilities, such as:

  • requesting the release of your tenants’ deposit from the tenancy deposit scheme
  • inspecting the property and
  • making any necessary repairs and renovations.

2. Inspect the property

Before you return your tenant’s deposit it’s essential to visit the property and conduct a thorough inspection of the furnishings, fittings and goods. It’s good practice to draw up a property inventory at the start of a tenancy as it’s this document that you can refer to when it’s time for your tenants to leave.

A property inventory details the contents and condition of the property at the start of a tenancy. It should include a full list of fixed features, from walls and ceilings to cupboards and doors, as well as any appliances and fittings. It’s important to remember any external buildings such as sheds or greenhouses and make a note of their condition and contents too.

Having an inventory means that when you inspect the property at the end of a tenancy you can compare its current condition with the way it was at the start. You can then make any relevant deductions for damage or missing items from the deposit. This reduces the chance of any disputes over deposits.

3. Return your tenant’s deposit

Once you have thoroughly inspected the property and agreed upon the cost of any damage or missing items with your tenants, you must return your tenants’ remaining deposit within ten days. Since 2007 it has been a legal requirement that landlords must put deposits in a government-approved tenancy deposit scheme for any property rented on an assured shorthold tenancy.

It is simple to return a deposit via the online account you will hold for the tenancy deposit scheme. But bear in mind that if you plan to make deductions from the deposit you should be able to provide evidence for your reasons in the case of a dispute.

As long as your tenants agree with your repayment instruction or claim the deposit will usually be released in a couple of days.

4. Enlist professional help with cleaning

Your tenants have responsibility for leaving the property as clean as possible when they move out. But this doesn’t mean it’s going to be ready for the next tenants to move straight in.

In order to benefit most from rising rental yields and attract reliable new tenants it’s important to show off the property in its best light. Depending on the length of the previous tenancy that could mean a thorough deep clean is recommended.

You could do this yourself, of course, but it’s usually better left to professional cleaners. Agencies that specialise in end-of-tenancy cleaning services are used to carrying out the many tasks required to leave a property looking (almost) like new

The specifics of what is needed will depend on the state in which the property has been left. But you should expect a clean to include jobs such as cleaning of internal and external windows, all carpets and upholstery cleaned; the kitchen and bathroom de-greased and deep-cleaned and the oven, hob and extractor thoroughly cleaned.

5. Carry out repairs and renovations

With any luck, you won’t need to undertake any significant work when your tenants move out. If the property is well-maintained and generally sound, the most that will probably be required is giving walls and woodwork a fresh coat of paint.

However, it is your responsibility as a landlord to make any necessary repairs to basins, sinks, baths and other sanitary fittings, maintain heating and hot water systems and ensure the building is in a good condition structurally. The longer you spend on these tasks, the more time you will lose out on rent or leave your property vacant and vulnerable to break ins. So it often pays to enlist professional services for security support or property maintenance. Whether it’s clearing gutters, supplying new appliances, safeguarding empty homes or changing the locks, these specialist teams have the experience and capacity to get the job done quickly and efficiently.

By bringing in professional support – and putting processes in place in good time – you’ll cut down on lost income and be ready for another successful tenancy.

6 Ways Landlords Can Keep Properties Secure With A Minimum Spend

Posted on by Dakota Murphey

Your landlords, have a responsibility to keep your rental properties as safe and secure as possible. Tenants want to know that they can live comfortably and safely in their home, and it can help to minimise tenant turnover as people who feel safe are more likely to remain in the property for longer periods. But, security can often be an expense that they don’t want to shell out for.

The good news is that there are ways to make a home more secure without it costing a fortune, reducing the risk of vandalism and theft. Here are a few ways that landlords can create a secure property with minimum expense.

1. Install a security system

A high-tech security system isn’t just a benefit for landlords, but it also provides peace of mind for tenants too. It could spell the difference between the best tenant choosing one property over another. Security systems don’t need to be complex to be effective. In fact, technology has evolved enough that you don’t need to spend a fortune to feel as though you’re securing the property effectively.

From smart alarm systems to alert unauthorised access or attempted entry, to motion sensors to detect movement and CCTV cameras. You can create a master code for security systems and enable tenants to have their own personal access codes for privacy.

2. Light up the home

An easy but highly effective way to make your tenants feel safe, while also preventing criminal activity, is to add outdoor lighting. Would-be criminals tend to be deterred by well-lit areas as it makes them vulnerable to witnesses, so it’s always a good idea to have lights fitted to the exterior of the property to keep it safe and avoid a break-in.

Solar or LED lights are an effective solution that provide a great source of lighting and are very affordable, as well as being low maintenance as you won’t need to worry about replacing batteries or an increase to your tenants’ electricity bills. Fit these lights near entry points to the property but also near driveways and gardens where criminals may try to gain access from.

3. Automate the garage door

If the property comes with an adjoining garage, it’s vital that it’s kept secure because not only is it likely to store valuable, expensive items that could be stolen but it could also serve as another entry point for burglars. One way to increase security is to make sure your garage door is automated. Automation isn’t just a convenient feature for tenants, but it also makes it much harder for vandals and criminals to do damage or gain access to the property. Garage doors are common targets for entry to properties, and they’re also often overlooked by property owners, so don’t neglect this area when securing your rental property.

4. Secure windows and doors

Windows are a vulnerable area of any home, and are a common target for opportunist thieves. Even if the windows of your rental property have a mechanism to prevent them from being opened from the outside, they can still be broken into. And if the windows don’t have a lock, it’s even easier for your property to be accessed by someone other than your tenants.

Installing locks is the first step to making the property more secure, but it’s also important to remind tenants to lock up if they’re leaving the house. Window sensors can also be installed for a relatively low cost that will sound an alarm if the windows are ever meddled with, with alerts sent to your smartphone so you know precisely when the property is at risk. For added peace of mind, encourage tenants to use a door jammer for additional protection.

5. Find the right insurance

Landlords may be thinking of the physical changes they can make to your rental property, but have they considered the unforeseen costs that will come your way if the home is broken into? Landlords need to have the right insurance policy in place to protect the assets of the property and any furnishings. Liability insurance is a worthwhile addition to property maintenance, making sure that the home is protected, for only a small amount of money every month. The right insurance will give landlords the confidence that the home is protected from a financial perspective as well as physically. It is worth remembering that securing your garage to prevent easy access for would-be thieves will also keep your insurance company happy.

5. Conduct regular inspections

In the property market, prevention is always cheaper than the cure, so you want to do all you can to avoid costly repairs. By dropping by a few times a year, you can check on the health of the property and spot any issues that tenants may not have seen as a problem. For example, a lock might be broken on a window, there might be a blind spot on the security cameras or the smart doorbell might not be working properly.

These faults could cost you and your tenants if they lead to a break-in, so make sure that you’re scheduling in visits periodically to give the property a scan and check for these issues before they cause problems.

A rental property is an investment so it stands to reason that you want to protect it from damage. Keep your buy-to-let home secure to protect it from break-ins while also giving tenants the confidence that they can live in the home safely.

Property Law Updates Estate Agents Need to Know

Posted on by Dakota Murphey

Every year that passes comes with new updates and amendments to property legislation and guidance. 2021 is no different and with the tumultuous past year that the world has experienced, it’s unsurprising that the property market has been affected in several ways. As we start to navigate the new normal as the pandemic slowly starts to ease, these are some of the changes and updates to the housing market that estate agents should stay aware of.

Changes to pet ruling

About our guest blogger:
Dakota Murphey has experience in property management with her portfolio of properties expanding in the South of England. Her passion for renovation and home improvement projects is shared through her writing to help educate and inspire others.

Earlier this year, the government updated the Model Tenancy Agreement which includes a clause that landlords are no longer able to reject a tenant’s request to keep pets in the property unless there’s a valid reason for doing so, such as the size of the property. However, something that estate agents need to be aware of when responding to client requests is that the law does not state that landlords are legally required to permit pets in their properties.

There’s a distinction between the terms guidance and law, and the agreement falls under guidance. This means that there are no legal obligations for landlords to allow pets – landlords and letting agents are only entitled to operate a no pet policy providing there’s no increase to the deposit past the five week’s rent maximum and that, in regards to service dogs, there’s no breach to the equality laws.

Updates to the leasehold reform

One of the biggest changes that was announced in 2021 was the Leasehold Reform, which the Secretary of State for Housing, Communities and Local Government announced in early January. Under the new legislation, house and flat leaseholders can extend their lease to a new standard of 990 years without any ground rent. The new rules offer a great opportunity for significant savings for clients, of thousands of pounds in some cases, and it’s a huge change to the sector that was first raised back in 2017.

Right to rent

Since mid-June, the regulations have changed for proving a tenant’s right to rent in the UK. It’s now required that you meet anyone taking on a property face to face, while they are having their documents checked. And tenants need to provide evidence that they have the right to rent in the UK, given that we’re no longer part of the EU. Letting agencies can’t grant a tenancy to anyone who cannot provide evidence that they are legally allowed to stay in the UK.

There are two categories of tenants who have the right to rent – unlimited rights and those with time-limited rights. Unlimited right to rent includes British citizens, people who have the right to live in the UK and those who have been given indefinite leave to remain or have no time limit on their stay. However, this doesn’t include EU citizens, EEA nationals or Swiss nationals anymore. Time-limited right to rent applies to anyone falling outside the previously mentioned categories who can stay in the UK for a set period of time, such as people who are permitted to remain in the UK as a result of Acts of Parliament, EU treaties and immigration regulation.

Distancing guidelines remain

With each phase of the easing of COVID restrictions comes a wave of relief and feeling like life is returning to normal, but we’ve not passed the finish line just yet, so there are still guidelines to bear in mind when carrying out viewings and property inspections. The changes for agents, therefore, will be minimal and professionals in this sector should continue to adhere to safety guidelines for the protection of themselves, their colleagues and clients.

Agents should ensure that people visiting office sites have made an appointment, to avoid overcrowding and to ensure distancing is maintained as much as possible, and that Test and Trace codes are in place to track contact with others. Masks should still be worn to keep everyone safe and, where possible, offering virtual viewings will help to maintain social distancing. In instances where in-person viewings are required or preferred, opening windows and doors to allow ventilation and providing hand sanitiser can help to minimise the spread of the virus.

In summary

Property law is always changing and with the pandemic, Brexit and governmental updates to consider, there are plenty of amendments to how estate agents need to operate throughout the remainder of 2021 and beyond. Staying up to date with the trends and demands of the market, as well as the legalities for compliance, will ensure that you’re always equipped with the latest knowledge to answer client queries and provide the best advice to tenants and property purchasers.

Managing Keys: Is this your Worst Nightmare?

Posted on by Tim Hill

Imagine the scenario. Your client arrives to collect their keys. You go to the cabinet, and they aren’t there. Who has them? Where are they? Who had them last? At best you look disorganised – at worst you look unprofessional and a risk to your client’s security.

How did this happen?! The answer is quite surprising. Most letting agents don’t consider the release and return of keys as a ‘process’ which needs attention.  And… if that process isn’t cared for, it is easy for it to go wrong. However, if it is properly managed, it not only stops you looking like a risk, but also saves the team time and can even impress your clients.

So do YOU have a key management process?

Basically, if you hold keys that you issue to different people throughout the day or week, then yes, you do.  But have you ever given any thought to what that process really is? Perhaps surprisingly, a lot of people haven’t.

Whether you’re a letting agent, accommodation manager, facilities manager or receptionist, it can really help to have a clear process for looking after your keys and help make sure that things are done consistently and efficiently.

In this blog, I’ll explain what Key Management is, why it’s important and outline some of the things you might want to think about when designing yours.  Don’t worry- it won’t take long to put right!!

What is key management?

Key management is the active process (or, really a set of processes) that businesses use to keep track of their physical keys.

These keys may be owned by the business itself (for example, they may unlock storerooms, lockers, offices, meeting rooms or classrooms) or they might be keys you hold so that you can grant access to the property of others (e.g. in a real estate agency, property management or service companies such as cleaning and security).

Although the way you manage key will probably be unique to your company, the 4 basic processes that you’ll need to take care of are more-or-less the same for everyone. These processes are

  1. Taking charge and tagging of keys.
  2. Issuing and returning keys.
  3. Monitoring key use
  4. Archiving

Let’s have a look at these in a bit more detail.

1.Taking charge

When you receive a set of keys for the first time, you usually need a process for capturing the details of that key and making sure that you can find it when you next need it.

If you’re a building manager or concierge, you may only need to do this once while setting up your process as the keys that you manage will rarely change.

If you’re growing a property portfolio of rentals, lettings, or serviced accommodation, then you will likely be taking charge of new keys all the time. The way you do this process might be different, but the things you do will likely be very similar.

  1. Record what the key is for, property address, room number or car registration.
  2. Give the key a reference number. It’s almost always a very bad idea to write what the key is for directly on the keys, so you’ll need to give a reference number or some other identifier so you can find it again.
  3. Give it a storage location. This may or may not be included in the reference number that you just gave it.
  4. Record the key ring details. What specific keys are on the key ring? Are there any other things like electronic fobs associated? Are there any other aspects of the key that should be recorded? State how it should be used.

2. Issuing and Returning

Once you have charge of a key, you’re likely to occasionally give it out to different people and you’ll need a process for tracking who you’ve given it to.

This is typically done with pen and paper (not something I’d recommend in the 21st century) or an electronic system of some kind.  When capturing who has taken a key, we recommend you always do the following:

  1. Record the key reference
  2. Record who is taking the key (and is now responsible for it)
  3. Record when it’s due back

You may want to capture a signature or provide some sort of receipt for keys given out. Many people find this is less necessary if you have a good electronic audit system in place.

When returning keys, you’ll need to track those keys back in and state where they’ve been stored.

3. Monitoring

Monitoring is critically important. This is the process that is most often overlooked and where things usually start to go wrong.

It’s rarely enough to simply have a process for issuing and returning keys – it’s the active monitoring of which keys are out which are due back that prevents the hassle of chasing around for a key at the last minute.

Even the best of us forget things every now and again and when we’re busy, it’s very easy to forget that we’ve still got the key.

The most common cause of key-loss is when someone forgets to sign them back in and the problem isn’t noticed immediately.  It might be weeks before the key is needed again and the problem is uncovered, by which time it’s often too late.

It’s therefore crucial that you have a regular process to check which keys are still out and which should be back by now, making sure you chase any late keys home before they have time to become lost.

You’ll need regular activities to:

  1. Check key status
  2. Chase overdue keys

4. Archiving

At some stage you may stop managing a set of keys. Perhaps you’ve stopped working with the property that the keys are protecting, or for some reason you’ve changed over a lock.

It’s crucial ensure you take action at this stage and that you record what you’ve done. Having keys you no longer need lying around only adds clutter and increases the chances of future mistakes and security risks.

The process here will probably vary depending on your industry.  Do you need to return the keys to the owner or dispose of them securely? What records do you need to keep? Does anyone else need to be informed?

What does your Key Management process look like?

Hopefully you agree that having a fully thought-out process is not an option, but is 100% necessary to keep your keys safe and prevent wasted time in the office. If you don’t have one, why not get get it in place right now?  If you’ve got a process- have you got all the bases covered?

Is your process written down?

Putting your process in writing is really important.  In many industries, it’s now a necessity, where legislation and codes of conduct require evidence that you are working in a compliant manner (for example the Letting Industry in Scotland).

Writing your process out also helps you to clarify the areas that may not be working efficiently.  What I often see is that most people give most attention to the first two processes (Tagging, Issuing and Returning) but the crucial monitoring and archiving are often less well defined.

Would you like some help with documenting your process?  We’re working on some templates to help.  Why not register your interest here? Or get in touch to discuss further.

Combating the August Myth: It’s ANYTHING BUT a quiet month

Posted on by Tim Hill

August is a time for holiday and relaxing, right?  Then why is it that everyone I speak to at the moment is stressed?  There’s a “received wisdom” out there that businesses in the Northern Hemisphere generally shut down over August, and it simply isn’t true in a lot of cases.  The problem with received wisdom like this is that it can often mean that we subconsciously relax, and drift into August, only to find it’s a super busy month.

Here are some thoughts on what makes August a unique month in the business calendar, and what that means for the way we approach the summer. Continue reading “Combating the August Myth: It’s ANYTHING BUT a quiet month”