Landlords at times shy away from hiring letting agents to manage rental properties, assuming they can look after it themselves and save money.
However, despite what some landlords feel, property management is more than just an insurance policy, the occasional phone call to or from a tenant, and a quick lick of paint every so often. Many landlords often realise at a later stage just how much is involved.
It is a popular misconception among Landlords who own unfurnished properties that there is no need to have an inventory.
How wrong they are.
A property consists of more than furniture or what is known as loose contents, without stating the obvious, there as walls, ceilings, doors, windows, carpets, curtains, kitchen units, worktops. All of these have a condition when the tenancy commences.
Failure to have a comprehensive form of condition, can leave the landlord with expenses he did not expect, due to damage to doors, walls, carpets and worktops etc. Landlords can avoid these costs by having a professional check-in and check out.
So your walls were magnolia when the tenant moved in and now they are mauve. The carpets were new and now they look like a car engine has been dismantled in the middle of the lounge.
It’s easy to just take it from the deposit right? WRONG….. Long gone are those days, when it was up to the outgoing tenant to argue. These days the boot is firmly on the other foot.
It is no good just having a sheet of A4 paper just saying Magnolia Walls, beige carpets, without any form of condition or description. Many landlords loose the arbitration case, due to lack of firm evidence of the original condition, leaving the Landlord having to cover all of the costs himself. It requires no imagination as to the cost of extensive cleaning, repairs and redecoration that is often needed.
According to the Association of Independant inventory clerks, the most common damage found in unfurnished properties includes the following:
On average a check in and checkout costs little more than £50 on each occasion with the Landlord either paying for the check in or checkout. Which has to be a bargain when you consider how much the costs could be otherwise
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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
One of the biggest expenses in any rented property is furniture.
Having been a letting agent in Bristol for numerous years, and having spent a good few years with one of the largest student providers of accommodation. I have seen the good and bad in all types of student houses.
One of the issues one had to constantly face is seeing a house full of furniture, that quite frankly, for the most part, was fit for the skip. The old adage ‘well their only students, so it doesn’t matter’. Quite frankly that is the opposite these days, with the boom in Buy-to-Let a lot of Landlords got onto the student band wagon, and now Landlord face much more stiff competition when it comes to letting out there property.
If you have a house of 4-5 students Sofa’s are one the things in a student property that get some of the hardest wear.
It’s all very well going out and getting a replacement from the local charity shop, but bearing in mind, people don’t always just get rid of things because they are tired of the style, they get rid of them because they are past their best.
So which ones to choose?
You need something that is a reasonable cost, hardwearing and is comfortable.
Independently I asked two Landlords on my twitter stream, who I know have reasonable sized portfolios of both student and room only shared properties, for their recommendations.
Something which came of no personal surprise to me at all, was they both recommended IKEA.
Now we have all heard of the horror stories of getting lost in IKEA and that the furniture falls apart just as quick as you look at it. But in my opinion, IKEA furniture assembled well does stand the test of time.
The Klippan range from IKEA has a basic style but comes in a range of colours at a reasonable cost and has interchangeable covers. Prices range from £180-409 depending on finish, one advantage
of this range is that they do come with removal covers, which can washed or changed for a newer style. My advice with this type of sofa is to buy a few sets of covers, so they can be washed on a regular basis, make sure you buy a practical colour which doesn’t show the dirt.
The other recommendation was again from IKEA and was the Ektorp which is a leather look alike sofa which can be purchased for as little as £359 for a two seater, this was recommended on the basis of durability and style, easy to clean, and the fact that after 3 years and 5 tenants using it still looks good as new.
It is always good to get a second practical opinion, and having seen both of these recommendations in situ and being used. I would have to say I agree each one is a good choice.
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When it comes to letting out property, and I have let out 100’s over the last 30 years both as a Letting Agent and Landlord, it never ceases to amaze me that when you go to let out a property on a Let only basis, and ask for a current Gas certificate from the Landlord you either get a stony silence or the proverbial “AH!”
Putting aside all the other legislation that a professional agent has to remember, GAS SAFETY should come right at the top of the list.
Rent arrears can be often solved, along with damage. However, it is very difficult to resurrect a corpse!
According to the HSE, four people died and 117 fell ill as a result of carbon monoxide poisoning at home in the year to June 2010.
In real terms I guess you might not feel that is many. UNTIL, it happens in YOUR tenanted property, and the full weight of the law comes crashing down on you.
Ha! it will never happen…………..well it happened in 117 of cases.
Follow these simply rules to avoid it happening to you.
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
One of the top ten questions I am asked by a prospective Landlord when I go to look at a property, is “If I am going to let out my property unfurnished Why do I need an inventory? Quite simply the answer is always yes.
Even when the property is going to be let unfurnished, you will still be providing some things that
can potentially be damaged such as a fitted kitchen, a bathroom, and even such things as walls and carpets.
An inventory or schedule of condition is increasingly fundamentally important, now that deposits are protected. When a tenancy comes to an end and there is a rather noticeable mark on the light cream carpet, no doubt as a landlord you will expect some form of compensation. Without an inventory, you chances of success are limited, as often the tenant will say “But it was like it when we moved in”
Statistics have read that over 80% of deposits are returned to tenants and not landlords because they fail to have a professional inventory prepared at the commencement of the tenancy. In the past a Landlord has been able to deduct money from a deposit and the tenants has to fight their case not to have deductions made, with the changes in the deposit rules, this has now changed and the onus is on the Landlord to prove a case for deposit deductions.
What was then is past what is now is the present, still often many landlords feel it is a false economy to have a professional inventory prepared., or simply they didn’t know how to do one. Sadly just making a list of items present without pictures or descriptions is no longer good enough.
Even if as a Landlord you still choose to do your own inventory, here are a few basic steps to consider
List the rooms in your property in a logical order
List the contents and everything you can see from top to bottom
Remember things such as curtains, curtain poles and alarm sensors
Make a note of any marks/stains as you go
Take a series of photographs of each room and any large or noticeable stains/marks
Photo the inside of ovens, toilets, baths and washing machines etc.
Have the tenant check and sign the inventory to say they agree with it, before they move in
These tips are not exhaustive, but taking them into consideration will certain benefit you in the longer term
At igloolets.com we are able to provide the full services of qualified and accredited inventory clerks as part of our Managed and Letting only services. So you can be assured and confident that this has been taken care of before the commencement of the tenancy.
For more information why not call us today on 0117 230 5056 or email us at admin@igloolets.com
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.
Photographs which are no larger than thumbnails creates problems when it comes to damage disagreement at the end of the tenancies
According to Pat Barber, of the Association of Independent Inventory Clerks, inappropriate and often inadequate sized photographs are regularly used in both the inventory check-in and check-out.
The practice leaves the owners subject to potentially costly litigation and time consuming disputes over wear and tear, with tenants winning their case if it goes to arbitration, because of the use of thumbnail undated pictures, where it is extremely difficult to see the details of the alleged damages
It is not just a small low-resolution photos, which cause problems.
Recently a case was lost, because the Landlord felt that all that was needed was to take a few photographs (sadly all undated) and provide no other written evidence as to the condition of the property at the commencement of the tenancy. Unfortunately the landlord had to finance some expensive replacements
Barber, president of CNA, said: “The inventory reports must contain a complete description of a building and its contents, with details of each bit of damage and its exact location at the beginning of the lease. This can be supported by photographs – but they must be of high quality printing up to A4 or A3, so that damage can be clearly seen, or supplied on a disc
“The photographs can not replace an accurate statement and properly detailed inventory . A landlord has no evidence to prove that the property has been damaged in any way during the tenancy if he / she must rely on the thumbnail images of poor quality, and therefore may find it almost impossible to retain any of the deposit from tenants. ”
Barber points out that the evidence presented to the arbitrators to resolve disputes with damage must include both “before” and “after” pictures, with a clear narrative of what the image is displayed, for example, colour, description of ‘ object, marks on the surface.
Photographs must include something to show the scale of the image, and should clearly show the condition of the property at the time.
Although the images are to be included in the inventory as a further mark of reference, they should be a decent size.
The photographs must be dated, most modern camera can be set to automatically do this
If the photographs to be printed, the printer needs to be good quality. Too often, inexpensive printers distort the colours. Even good quality printers distort the colours when they are starting to run out
A new guide ‘Guide to Tenancy Deposits, Disputes and Damages’ has been jointly published by all three government authorised tenancy deposit protection schemes.
Since 2007 some 47,000 disputes have been settled by the schemes alternative dispute resolution processes. The pooling or information on these disputes and their eventual outcomes has allowed the schemes to indenitfy common issues and work together to publish collectively guidelines.
The new guide covers items, such as the collation of evidence and what an adjudicator looks for when considering a dispute, and outlines the principles on which scheme adjudicators make
decisions so that the process is consistent and transparent for letting agent, landlord and tenant alike.
The guide can be seen here
http://www.depositprotection.com/documents/a-guide-to-tenancy-deposits-disputes-and-damages.pdf
I have worked in Letting’s and Property Management for 15 years and I love the industry. I am totally passionate about Property and believe that the only way to do business is basing a relationship with clients on integrity and trust. I would be delighted to be of assistance to you. Please contact me either by email admin@igloolets.com or telephone 0845 652 1428
Unless you live in a cave somewhere, or never leave you small dark room, you will be aware of rising costs. Petrol costs, food, and utilities to name just a few.
Now is as good a time as any to analysis your costs as a Landlord, and make sure that what you are spending is giving you value for money or a return on investment.
Landlords need to make sure they are running a lean and tight machine at all times, however, in these times this is even more important.
Be pro-active in maintenance issues. £100 spent now could well save you £1000′s in the longer term
Make sure that what you are spending is essential, never forgetting that each pound you spend is off your bottomline.
