Back to School, Back to Basics – Part 2

In Part 1 of Back to School, Back to Basics we covered the pre-tenancy certifications and legalities of rental properties. Now in Part 2, we’re moving forward in the process and once a tenant has been secured.

Other Things to Consider…

• Apart from a robust tenancy agreement applicable to the type of rental you have agreed and an inventory check-in report, copies of the EPC, EICR and GSC will need to be issued to any tenant before the tenant move in along with the government’s How to Rent Guide. If not, this may affect your ability to apply for an eviction order if necessary in future.

• Landlords are also required to protect a tenant’s security deposit in a government-approved scheme, such as the DPS and also check your tenant’s right to rent in the UK. Documents need to be checked in-person or online via the government’s verification service.

• If you would like the reassurance of a rent guarantee or legal protection cover policy in case your tenants don’t pay rent or need to be evicted, your tenant will need to have passed referencing with a third party referencing company.

•  If you’re normally resident overseas or the property is owned by an overseas company, you should always confirm your tax requirements with HMRC. They have specific guidelines for non-resident landlords.

Finally, international student tenants travelling to the UK for their course often have to rent properties on the basis of photos and video viewings without having actually stepped foot in the front door – or you having met them in-person. It can be worthwhile to have a video chat to assess their suitability for your property and also make sure that the tenancy agreement reflects that the property has been taken ‘sight unseen’ to avoid being let down at the last minute.

If you would prefer to use the services of a qualified and experienced agency, book a quick call with us to discuss your rental property. We’d be delighted to help.

Back to School, Back to Basics – Part 1

It’s September and that has meant back to school for not only millions of children across the UK, but all the ‘big kids’ too - the students who are back at university to take up their places on undergrad and postgraduate courses.

It’s the first year of a true ‘back to normal’ end-of-summer/start of the school year cycle since Covid and demand has been soaring. We’ve even let a few properties in the final stages of renovation such that they’ll be occupied from Day 1!

With so many new move-ins happening, it’s a great time to go back over the basics and ask: What exactly do you need to do in order to let your property?

Pre-Rental Certifications & Legalities Required On Move-In

It’s a given that you’ll have made sure your rental property is fit for habitation and is maintained in good condition, but do you have the correction certifications in place?

To let a rental property, you need to make sure you have at least valid energy performance, electrical installation and gas safety certifications in place:

• Energy Performance Certificate (EPC): These have been around for 15+ years since Home Information Packs and the regulations in 2007. You need one to market your property! Certificates remain valid for 10 years and the minimum rating is currently E. Many have been done and many have since expired! In any case, you can check for your EPC on the government’s register.

• Electrical Installation Condition Report (EICR): Valid for 5 years, these have been a legal requirement since April last year and are needed before a tenant moves into a rental property. Watch out, the initial inspection may uncover electrical faults that require further investigation or remedial works. Read more details here.

• Gas Safety Certification (GSC): Still in force and the longest standing certificate requirement – nearly 25 years for good reason. Conducted annually by a Gas Safe registered engineer (formerly CORGI), GSCs or CP12s are also a legal requirement if there is one or more gas appliance in the property.

You’ll also need to ensure smoke alarms & carbon monoxide detectors are in place and working and can read our recent post for more information on the recent changes to regulations.

If the rental property is a flat in a purpose-built building, there are additional fire safety regulations to consider and the most up-to-date information is always available on www.gov.uk.

You may also want to get a test for Legionnaires Disease and whilst PAT testing appliances isn’t legally required for private rentals, if a tenant is placed by a local housing association scheme, they may request this and both are good practice. 

Finally, always make sure to check if your rental property falls inside of a mandatory licensing area. These vary between boroughs in London, with differing costs and application processes.

Coming up next week - Back to Basics Part 2 with some other things to consider for tenants moving in… and if you would like to discuss any aspect of preparing your property for rental, book a quick call with us.

Smoke and Carbon Monoxide Alarms in Rental Properties

Fire Safety Regulation Updates

From 1st October 2022, the government’s newest round of fire safety legislation for rental properties comes into effect. With updates to the current laws having been in the works for some time, the updated regulations contain some subtle but significant changes for landlords with properties in the private rented sector.

The full legislation is available on the government’s website, though the guidance issued by the Department for Levelling Up, Housing and Communities covers the most common questions and situations.

The new regulations mean: 

• all landlords must ensure a carbon monoxide alarm is provided in any room used as living accommodation which contains a fixed combustion appliance (excluding gas cookers). 

• all landlords will be legally obligated to ensure smoke alarms and carbon monoxide alarms are repaired or replaced once they are informed and the alarms are found to be faulty. 

There is no transitional period after 1st October 2022 and any landlord found to be in breach could be fined up to £5,000.

If you have questions about what the new regulations mean for your rental property, feel free to book a quick call with us.

How to Win the Rental Game

How to Secure a Rental Property in a Competitive Market

Demand for rental properties in London has been through the roof over the past months with the market having more than recovering from the lockdown slump. We’re regularly listing new properties only to have them snapped up within days and often over asking price.

Because we also undertake property searches for clients, we know from both sides of the ‘equation’ how tricky securing a property can be. We’re lifting the lid to share our top tips on winning in a busy lettings market. Here’s how to best position yourself to secure that sought-after rental property.

Draw your search parameter map and set-up alerts

You probably know that property search websites like Zoopla enable you to view your search results in a list view or a map viewing, show where each property is located. But did you know that you also create a customised search area? By dropping perimeter pins to specify a boundary area, you can create a search area outlining exactly where you want to live and include areas that would otherwise be excluded from a standard search by postcode or circumference search (I.e. ‘search within x miles of y’). Your map searches will be saved within the Alerts and searches section of your My Zoopla account and you’ll receive notifications whenever new properties come up in your desired area.   

Creating a customised search area on zoopla.com

Set up a designated inbox and set reminders to check it periodically throughout the day

A recent property search for a client has been a great reminder of the volume of emails that can come your way when you’re property hunting. The rental market in London moves quickly and it’s easy to become inundated (and overwhelmed!) with new property notifications and appointment bookings. That’s why we suggest setting up a separate email account for your property search. You can keep your personal inbox clear of property clutter and if you’re searching at a more relaxed pace, you can even turn off the email notifications altogether and simply set reminders to check your property search account when it suits you.   

Be quick off the mark

Those new to the London rental market can be taken aback by just how quickly things move. In the current busy market, it wouldn’t be uncommon for a property listed on a Friday to be under offer by Monday. This means you’ve got to be ready to act quickly. Be proactive in phoning for viewing appointments and confirm your appointments with the agent to double check a property is still available before you travel to view it. If there’s something you like the look of, get as much information from the agent before the viewing so you’re clear on their offer process and can have any necessary paperwork lined up. You can even request an offer form from the agent in advance of the viewing and have it ready to send once you’re sure you want to make an offer.

Get clarification on when the property is reserved to you

At many estate agents, having had an offer accepted by the landlord may not fully secure it for you. You may need to pay a holding deposit to stop any further viewings and reserve the property whilst you undergo referencing checks (which is usually put towards your first month’s rent or security deposit). Holding deposits are generally non-refundable should you change your mind and withdraw your application, so seek confirmation if the conditions of a holding deposit aren’t clear.

Align yourself with the landlord

In putting forward your offer in a busy rental market, you need to make your offer as attractive as possible to the landlord. Do your requirements align with theirs? High street agents will typically push for long contracts without break clauses (as this can affect their commission) but a decent agent will let you know if a landlord has preferences regarding their ideal tenant. It can be useful to include a short blurb about yourself in your offer (a couple of sentences will do) so the landlord gets a better sense of you. Also be aware that making an offer that’s contingent on removal of furniture pieces or upgrades to the property can put you out of the running when there are multiple offers.

Be prepared to offer above the asking price

In a busy Central London rental market, properties often go for over the asking price. Up to 10% is common, though we’ve recently seen as much as 20%. You should never put forward an offer that you’re uncomfortable paying, but be aware that sometimes even £25 over the asking price can put your offer a notch ahead in the landlord’s mind. Offering to pay 6 or 12 months’ rent up-front can also position you favourably and will almost certainly be required if you’re a full-time student living on your own.

Have all your documents ready to go - and brief your current landlord, employer, guarantor or accountant

Once your offer is accepted, you’ll be asked to undergo referencing checks. An independent referencing company will ask you to provide information to confirm your identity, a reference from your current managing agent/landlord and check your financial position. If you’re a student, are self-employed or receive Universal Credit, you may also need a guarantor. For anyone whose details you provide in your referencing application, it’s worth letting them know that they will be contacted so the referencing process can run quickly and smoothly. Managing agents can be particularly slow to respond to landlord reference requests, so do what you can to push this along.

If you’re moving between jobs or are self-employed, speak to the letting agent and referencing company on the best way to provide proof of your income. Referencing companies are generally looking for confirmation that you will be employed for the duration of the contract and that you’re earning 2.5x the annual rent. You may need to show pay slips, a P60 or bank statements to prove this.

With all these tips in mind, we’re sure you’ll be far more prepared to hit the London property market running and secure that sought-after home with ease. And if you’d like further advice, book a call us with. We’re always happy to have a chat!

New Courts to Tackle Backlog of Evictions

Lord Chancellor Unveils Plans for Ten 'Nightingale Courts'

On 19 July the Lord Chancellor, Robert Buckland, announced that ten ‘Nightingale Courts’ would be set up rapidly to help deal with the backlog of evictions proceedings. With court services having been suspended from March for all ongoing housing possession action in England and Wales due to the coronavirus, the industry has been expressing increasing concern at the significant backlog in the Courts.

On 22 July, it was announced that possession proceedings would recommence from 23 August and MP Christopher Pincher, whilst recognising that the prioritisation of cases is the job of the judiciary, expressed his belief that it is important that serious and antisocial cases be heard as soon as possible.

Two of the new Courts will be located in London and other measures are also being put into place to ease the pressure on the court system, including longer opening hours in order to increase the number of cases that can be heard in a day and continuing to use video technology to hear cases where appropriate.

Through our considerate and professional dealing with our tenants, we have a great track record of keeping our landlords up-to-date with their rent payments.

To work with us - and help avoid the build-up of arrears that can lead to a lengthy eviction proceeding - contact us now.