23rd Nov2011

Tenants don’t let with ease, as they feel the squeeze.

by admin

Residential investment landlords may be benefiting from rent rises but many tenants are now beginning to feel the economic squeeze.

Rent rises over the last 6-10 have been record breaking, despite the economic downturn and instability.

Many renters still unable to enter into the housing market as mortgages for first time buyers are for most still a pipe dream, and many anticipating renting for the foreseeable future.  However, this does offer greater flexibility for employment as the market changes into a more flexible environment. It has been suggested that by 2020 the number of people renting could rise to 20 percent.

The forecast for the coming months causes further concern, as we anticipating a cold winter, with many of the major utility companies already announcing higher fuel bill costs. This quite frankly is not good news for tenants who are already struggling, with the costs of running a home already escalating.

For many with stagnant wages and higher costs all round, many tenants are struggling just to make ends meet on a daily basis.  This is a recipe for many tenants to fall into arrears.

However, on the flip side of things landlords may well also be struggling, and may well need to income from property to live on, so will be less tolerant of tenants not paying their rent on time.

My advice to both parties is, enter into immediate dialogue as soon as a rent arrears problem arises.  Whilst it may well be a pain initially, agree to collect the rent each week or once every two weeks if it is a cash flow problem. Often the Landlord will be much more focused on redressing the issue of rental arrears than the tenant. Both parties need to be honest with each other, and work out a realistic plan. Too allow a tenant to fall into arrears of only one month will make it an even more uphill climb to redress the problem. Rather than undertaking legal proceedings it is always better to see if you can mediate things first.

Albeit, in the final analysis, Whilst it may well appear to be mean, to serve a section 21 notice on your tenant seeking repossession, it is a matter of being cruel to be kind.

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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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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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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