08th Sep2011

Dealing with tenants in arrears of rent

by admin

Unless you’re a really hardnosed Landlord, dealing with tenants in arrears in often not an easy position to be in. Often this is the reason a Landlord will appoint a letting agent, that should the situation arise they don’t have to communicate with the tenant on such matters.

What can make the situation extremely difficult is if in the past the tenant has been reliable. The main principle is to communicate and then communicate some more. Often Landlords and Lettings agents alike let the situation get out of hand and then, sadly that is when the acrimony sets in.

If the tenant has truly up to that point been reliable, I would always recommend giving some leeway you might even consider giving them a rent reduction for a couple of months on the basis that they make it up in the future. Truly good tenants are priceless. You need however, to get the proposal in writing and agreed a good payment plan helps.

When it comes to tenants who fail to communicate their situation and just stop paying rent without explaining their situation you have to take a much firmer stance. They should be served with a possession notice (often a section 21 or section  8 ) if this does not amend the situation at least you these in place, and once these have been served the clock is ticking in the landlord favour.
I have always been recognized as both a fair Letting agent and Landlord, however, I have never been an advocate that Landlords should be expected to house tenants free of charge. I often say to the tenants if you go the grocery store and when at the checkout ask to pay in a month’s time for the groceries, I think we will all know the response.

It does not do your tenant any favours if you let the arrears build up, it is better for all concerned parties to take action fast.

If a tenant has money troubles, for some reason the first thing they stop paying is the rent! Few curtail their social activities. Rental arrears unless nipped in the bud will just escalate out of control. If a Landlord you remain silent hoping the tenant will sort it all out, the tenants will just pay their more vocal creditors and allow the arrears to rise.

However nice the tenant is, if they cannot rectify the arrears at the end of the following month, that is when you have to serve notices, even if you explain in a courtesy manner, the reasons for your actions. Because failure to act could mean that if all things turn sour and the arrears level continues not only will you have lost money but also time in getting back possession of the property.

If a landlord contacts the tenants immediately the rent falls into arrears, the tenant will no doubt make more of an effort to pay. Long term this will be to his advantage, as his problems will only be made worse if he is homeless.

If you are considering investing in Bristol or need assistance with your existing portfolio, I have over 15 years experience in Letting and Property Management in Bristol, letting properties from studios to Penthouses. Feel free to call me today on 0845 652 1428 or contact me at www.igloolets.com

Category : landlords, tenants, Uncategorized
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06th Sep2011

Why deposits are importance

by admin

No doubt you have heard the old adage ‘Something is better than nothing’ having been called a fair letting agent and also Landlord. I have always been an advocate of the deposit scheme. However, I know that not all Landlords and lettings agents have been.

Occasionally I am told by landlords that they don’t take a deposit, it’s not worth the hassle. This kind of comment always amazes me. Even if your only just renting out rooms, to replace a well soiled carpet would cost you £150-200 pounds. Whilst you have to prove that the tenant damaged the property, prior to any deduction being made, if adequate preparation is made at the commencement of the tenancy, most disputes can be avoided.

With many tenancies these days’ deposits can amount to thousands of pounds. Often a clean and rectification of damage might only require spending a few hundred pounds. If you have no deposit to even start with your on a looser before you start! I would like to think that you are by now realizing where I am coming from.

To set the benchmark with properties that we manage, it is important to check the property completely before new tenants move in. Making sure that little niggly things are rectified. If your property is presented right at the start of the tenancy, more often than not the property is returned in a reasonable condition.

In my previous post “Why do I need an Inventory?”, if at the end of the tenancy you have a disagreement with your outgoing tenant about the condition of the property or ‘that inevitable red wine stain’ there is little point in beating yourself up over the best course of action you might just as well have it settled through the arbitration service which was set up as part of the Deposit Protection Scheme(s)

In the Housing Act 2004, a new law was introduced that meant any monies received by Landlords as a deposit must be protected within 14 days with one of the aforementioned tenancy deposit schemes. There are plenty of options for Landlords when it comes to choosing one, and the process is fairly straightforward, with the deposit normally being protected by the scheme until the end of the tenancy where it is returned to the relevant party.

As a leading lettings and property management agent in Bristol, we include protecting deposits as standard with both our Fully Managed and Let Only Service. We believe in having our Landlords covered.

If you are looking for further FREE information or assistance on renting out your property in Bristol, I have over 15 years experience in Letting and Property Management in Bristol, letting all various properties from studios to Penthouses. Call me today on 0845 652 1428 or contact me via our site  www.igloolets.com

Category : landlords, tenants
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30th Aug2011

How long will it take to rent out my property?

by admin

When valuing a property for letting I am often asked during conversation with Prospective Landlords, “How long will it take to let out my property” Each landlords circumstances are different, some want to hit the ground running so like to be prepared and think ahead. For some others they need to schedule maintenance works or remodeling improvements, in line with availability dates.

I would always say that the earlier you market the property, is better in the longer term.

If you wait until a property is vacant before you beginning marketing, you then have to allow the time it takes for suitable tenants to be found, referenced, safety checks and paperwork to be completed. In some cases the prospective tenant may even have to serve a month’s notice on their existing Landlord, before they can move in.

The problem with this is that there can be a lengthy delay between, periods, when someone actually expresses interest in a property and when actually funds actually begin to get to the landlord. Marketing a property earlier can reduce void periods between tenancies to a few days, even hours in some cases.

One secret to success in letting out your property, is to have it professionally managed by a letting agent specialist such as Igloolets.com. It is a common trait of Landlords to focus on the initial let, but it is more important to focus on what happens during the tenancy and in between lets. If you decide to have your property managed, ask how your agents plans ahead , will they communicate with the tenants or expect the tenant to communicate beyond the fixed term of the tenancy, to find out their intentions.

Also ask to see the agents terms and conditions to see if there are any hidden charges, regarding renewal fees, Will the tenants be charged at the end of the first 6 months, this is often a big turn off to tenants when they are considering what to do at the end of the fixed term. Even for the Landlord paying an additional remarketing fee along with a void period may well mean you end up paying in more ways than one.

At igloolets.com we like to have regular communication with tenants and Landlords we feel I makes for a longer and better relationships. You can also be assured that at Igloolets.com were feel that charging a tenant and Landlord renewal or re=lettings fees on our managed properties is unfair. So you can feel confident that you will not be stung by any small print hidden charges.

Why not check out our website www.igloolets.com for more information, or call us on 0117 230 5056 you can also email us at admin@igloolets.com.

Category : landlords, move in, tenants, tenants incentives, Uncategorized
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19th Jan2011

Why bother to reference tenants?

by admin

As we enter 2011, never have most people felt more squeezed financially than they do now, none of us know quite what the future holds, well especially for this year at least. But we can be sure of some things, costs will certainly rise, salaries with be stagnant, and sadly some people will lose their jobs and income.

In these uncertain times never has it been more important to fully reference your tenants. Ok you can’t guarantee someone is not going to lose their job however much you reference them. But it is a good benchmark in which to start to have a successful tenancy for both you and the tenant.

Finding the right tenant is a fundamental part of a Letting Agencies service. When you have referenced as many people as I have, it’s not all about do they tick the financial boxes, often it is also about do they tick the personality boxes.  If I am managing a property on behalf of a client, I need to get along with the tenant on a day to day basis, if situations arrive during the tenancy. Likewise I feel the same if I am only offering a Tenant Find only service for a Landlord. If you have two parties with conflicting personalities, I have to consider that just because the prospective tenant can pay the rent, will I or the Landlord get along, leading to a stress free tenancy for all concerned parties.

In my opinion, the first impression when you first meet someone, that gut feeling, that feeling in the back of the neck situation, is absolutely critical.

Often when you let out your house, the person who comes and takes the initial instruction will not be the same person who shows the prospective tenants around. Often the corporate companies, operate with one branch manager, a couple of Negotiators and an administrator come receptionist. In a cost cutting exercise most of the property Management and Prospective tenant progress is either out source or dealt with elsewhere.  Well you maybe asking, what has this got to do with referencing?  Well in many cases the reassuring chat you had with the person you first gave the business to, will not have fully communicated all your requirements, and since the negotiators salary is mostly built up out of commission, the person conducting the viewing is primarily interested in one thing only, getting his commission.

As the main principle of Igloolets, I want you to return your business and recommend me to your friends.  So it’s not just about ticking those boxes.

Most agents now outsource referencing, and Igloolets includes itself in that. Why? because the likes of Experian who we use to reference prospective tenants have access to information not available to the public domain.  Often they dig up some information not offered by the tenant.

A good reference should include the following information.

Credit Score/Any adverse credit history

Employers’ reference

Previous Landlord

Personal reference

Affordability calculator/check

Fraud score indicator

Since no one can really predict the next 12-18 months, a Landlord may want to consider taking out a Rental Guarantee Insurance policy, currently our provider who is Endsleigh insurance offer a policy for a small premium of £70 per person per annum.  This type of policy can prevent your tenants’ financial problems becoming yours. This policy also covers legal expenses should the need arise.

However, rental guarantee insurance is not available to tenants that have not been fully referenced, so make sure your agency has done just that.

If you looking for further FREE information or advice on renting out your property in Bristol, I have over 15 years experience in Letting and Property Management in Bristol, letting all various properties from studios to Penthouses. Call me today on  0845 652 1428  or contact me via our site  www.igloolets.com

Category : landlords
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05th Aug2010

Why you should employ a Property Management Agency

by admin

With the often volatility of the Stock market, many people have turned to property ownership as a more sound investment, and even with the changes in Capital Gains Tax, property ownership is still one of the best investments you can make, as many thousands of Landlords can testify to. Whether you’re a long time investor with one property for retirement income or perhaps you have multiple properties, or even if you’re just starting out, you will find that property management is a full time job.

Selecting the right tenants who will cause you the least concern is a specialised skill. It cannot be learnt in the blink of an eye, it is something that is honed over the years of selecting tenants who are right for the property and right for the landlord, it is not just about tenant referencing and credit checks, you have no doubt heard the saying about gut feeling or the feeling in the back of the neck. It’s a skill that you do not want to learn the hard way. Did you know that Landlords have many legal responsibilities and obligations which are increasing year by year? For your protection and to reduce your risk, these responsibilities have to be managed professionally. This is where a property management company like www.igloolets.com can help.

Our property management service leads to less stress for you and the maintaining of steady income streams.

We, the igloolets property management team, invite you to take a look at our complete residential property management service. You’ll find more details on our Landlords page on www.igloolets.com and if you go to the downloads and useful links page of our site you can download our complete company brochure giving indepth company information and 15 reasons for choosing Igloolets as your Property management agents in Bristol, or if you are ready for help now, please contact us by calling 0845 652 1428

Advertising
When we handle your property management, we pay for the advertising of your property. All of our listings are uploaded to a minimum of three major portal websites. We also utilise various other publications where possible as well as promoting your property via our in-house tenant database. The local trade press will on average cost a private landlord £40-50 for a single ‘For Rent’ listing which for a property renting under £500 per month is the equivalent to a months property management fees.

Selecting Tenants
Matching the right tenant to your property is vital for long term trouble-free ownership. Our property management experience especially in the Bristol area means we know how to minimise the many pitfalls of tenant selection. What you could find a time consuming and difficult process is handled promptly and efficiently. For your security we require both landlord and employment references be provided by tenants. We also carry out credit checks for all tenants to help ensure their financial stability and suitability for the property. It’s all part of our management service.

Watertight Lawful documentation
It is essential that complete documentation be taken care of at the beginning of any tenancy for robust property management. We ensure that the Tenancy Agreement fully protects your rights and obligations under the Landlord and Tenant Acts. We ensure that rent is paid in advance of the tenancy start date, we collect Bond monies and lodge them and the required documentation, with the appropriate Deposit Protection Scheme.

Monitoring and Collecting Rents
Our computer system provides for checking the paid-to dates of all tenants on a daily basis. If a tenant falls into arrears we take action to enforce payment. Our rent management system is very effective.

Inspecting and Reporting
Property management services include our computerised inspection cycle ensures that your property is inspected regularly as required by you. A written report is sent to you after each inspection.

Maintenance, Repairs and Outgoings
Our Tenancy Agreement clearly states both the landlord’s and the tenant’s main responsibilities. Most day-to-day maintenance (electricity, telephone, light bulbs) is the responsibility of the tenant. We arrange necessary repairs and maintenance using qualified contractors, at competitive rates. We can also pay on your behalf, items such as rates and water rates, and insurance.

The Landlord and Tenant Act(s)
This legislation is complex and a comprehensive understanding of it is needed to provide worry-free ownership. Other statutes are also starting to impact residential property ownership. Igloolets is qualified and has the management strength and the property management experience to ensure your interests are protected at all times.

Disputes and Mediation
Wherever possible we negotiate with the tenant to resolve disputes to both parties’ satisfaction. Occasionally there is a need to use the alternative dispute resolution service scheme rather than taking court action for a final binding ruling. In these instances we prepare and present the case to the ADR service on your behalf.

Monthly Statements
Our fully computerised system provides easy to understand monthly statements of rent and outgoings. Annual management statements are also available and this documentation will greatly assist your personal record keeping. All statements are available by email.

Updating Market Rents
During our regular inspections, as part of our customised property management service, we make re-evaluate the current market rent. This review ensures that your property is let for the maximum return, given market conditions.

On going Service
Property Management is an ongoing, day-to-day process. We manage your valuable assets making them as worry free as possible, on your behalf.

60 Day Money Back Guarantee
We back our service and have dealt and continue to deal with countless delighted landlord clients. If you are not completely satisfied with our service within the first 60 days, we will refund all property management fees paid to us during that period.

To take the first step and talk to us about how our property management service can help you, please call me on 0845652 1428.

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