Lewis Jones, Author at Howsy

5 time-wasting mistakes expert landlords never make

by Lewis JonesPosted on 14 August 2019

Most landlords nowadays aren’t property magnates: they’re landlords ‘on the side’, and have another job they need to keep on top of. Between work, fun and family, there’s not much time going spare – so the last thing you want to waste your free time on is an inbox full of landlord problems!

Especially if you’re paying for the services of a lettings agent, your property should be fully optimised, from top to bottom, and delivering the most bang for your buck. So we’ve researched the 5 top areas where ‘part-time’ landlords are wasting time or money – just to check you’re making the most of your assets.

5 mistakes landlords are making

1. Settling on your choice of tenants

They might seem great on paper, but the credit check comes back looking a bit dodgy, or they can’t provide a guarantor. A few months down the line you might find they’re not taking good care of the property, or even subletting. Trust us – it pays to spend a little more time and effort finding the right people in the first place and do a comprehensive background check – this could save you weeks of legal nightmares and missed rent payments later on in the tenancy.

2. Lengthy communications with tenants

How many hours have you wasted just waiting for a response or some paperwork from your tenants? If you can’t get them to answer the phone, or they won’t reply to emails quickly, there could be a simple solution that saves you heaps of time.

Instead of getting frustrated at the radio silence, try staying in touch on different channels that work for your tenants. If they use Whatsapp, set up a group chat with them (this also allows you to see when they’ve received your message!). Try sending a text if they don’t pick up when you call – plenty of people (especially younger generations) just don’t like speaking on the phone. If they prefer email, try to subtly set deadlines each time you email them – then if they don’t reply, you’re more able to move forwards in whatever process you’re managing.

Simply put, communicating clearly and in channels that work for everyone can save you a ton of hassle, and you could end up with a much better relationship with your tenants overall – it’s a win-win.

3. Shoddy or last-minute repairs

It’s a common phrase for a reason: when you buy cheap, you really do end up buying twice, and deal with twice as much admin. This is called an ‘opportunity cost’. Being a great landlord means truly investing in your property – and investments are a long-term deal. So make sure you’re budgeting enough to deal with repairs properly when they inevitably come up.

Don’t just paint over the mould once a year, don’t buy the cheapest Argos furniture and expect it to last for decades, and always check the reviews on your handyman! You’ll spend less money and time in the long run, and your tenants will be more likely to take good care of a property that’s clearly been invested in.

4. Becoming a legal expert

As a landlord you need to be up to date on changes to legislation that affect you and your tenants. Take the new tenant fees ban – you could end up being prosecuted or fined if you charge tenants for things that would have been totally legitimate just a few months ago!

If property law really gets you excited, you could always keep on top of this yourself, by subscribing to a couple of newsletters like Landlord Today (and actually reading them!).

But for the rest of us, it’s crucial to know that your agent is 100% on top of the latest developments in property law, and keeping you informed of all updates. This saves you a lot of time spent googling, reading and worrying – but the question is, can you trust your agent to keep you in the loop?

5. Waiting for late rent

First of all, if your tenants are late paying rent, there’s the potential time-suck of emailing them and chasing payments. Then, if it continues to be a problem, there’s the potential to claim missed payments back on rent guarantee insurance. Yippee – not only are you out of pocket, you’re also saddled with a ton of paperwork and legal hassle.

There is a solution for missed rent payments (other than finding the right tenants in the first place – see number 1). Especially if you’re letting in an area with a high tenant turnover, or dealing with less financially stable renters like students, you could benefit from a guaranteed rent policy that offers upfront missed rent payments.

Ideally letting your property should be a more ‘passive’ source of income for you. So if it feels like your property or renters are taking up too much of your time, it’s worth looking into ways of optimising your process.

Hopefully the above will give you some ideas for optimising your property yourself. But if you consider the time and effort you could sink into self-managing your property, you might not be breaking even. After all, isn’t this all meant to give you more time to spend on yourself?

It could be even more efficient to let an expert take care of it for you, and you don’t have to pay a premium for the service either. In fact it could be cheaper than your current set-up! With newer online agents like Howsy, the above services and more can be covered for as little as £35/month.

Rent Guarantee Insurance : the facts

by Lewis JonesPosted on 8 August 2019

Sometimes even the best tenants fail to pay their rent. Landlords – protect your income and mortgage by getting specialist insurance cover. Here’s what you need to know.

Rent guarantee insurance is much like any other form of insurance. For a relatively small monthly or annual fee, it will pay out money in the event of a loss – in this case, rental income loss when a tenant can’t or won’t pay.

Landlords can make a claim to their insurance provider when the tenant has failed to pay a fixed minimum amount of rent – usually one month’s worth. However, the majority of policies stop you from making a claim within 90 days of purchase.

Naturally, the exact level of cover and any additional extras depend on the policy you buy. Most rent guarantee insurance policies have terms and limits, so it’s important to read the small print.

Do I need rent guarantee insurance?

In a 2018 Government survey of English private landlords, the most common reason for evicting, asking a tenant to leave or not renewing a tenancy was rent arrears (58%).

Redundancy or illness can hit even the most well-intentioned of us at any time. If your tenants suddenly struggled to pay their rent, would you be able to cover your outgoings? And would you be able to afford potential legal fees necessary for recovering what you’re owed?

If the answer’s ‘no’, getting rental guarantee insurance is likely a good idea. For even the most thorough of landlords it can prove a financial lifeline when problems happen.

It can also help resolve other potentially very stressful related issues, such as:

If your tenant deliberately damages your property.
A dispute arises with your tenants over renovations or repair works.
Your tenant won’t leave your property, even after an eviction notice.

How much does rent guarantee insurance cost?

Typically, a few conditions need to be met before you can buy rent guarantee insurance. For example, your tenants must have passed tenant referencing checks. If you need to make a claim it’s your responsibility to provide completed tenant referencing documents.

How much is the excess?

The insurance excess is the fixed amount you have to pay if you make a claim on your policy. An excess of one month’s rent is typical, but check with each provider when researching quotes as you may be able to lower it or get a no-excess policy.

Does it include legal protection?

Typically, landlord rent guarantee insurance is sold as a joint policy with legal assistance insurance, which means the landlord’s legal costs of recovering the rent and/or evicting a non-paying tenant are covered too. Some policies include additional 24 hour-legal support.

Is rent guarantee insurance tax-deductible?

Yes. The full cost of a policy is tax-deductible against your rental income.

To get the best deal possible, Howsy recommends comparing quotes from a range of insurance providers or calling us directly. We offer something even better.

One of Howsy’s services for landlords is called Howsy Protect, and gives you Rent Guaranteed. If a renter is late paying their rent, you’ll be paid in full, regardless. If an eviction is necessary, we’ll cover any missed rent, as well as the legal and eviction costs. If this sounds interesting, why not register and find out more?

Periodic Tenancy

by Lewis JonesPosted on 8 August 201910 March 2021

Whenever a residential property is rented out, there’s typically a written contract between landlord and tenant that sets out the period of time for which the tenancy will last – normally six months or a year. But what happens when this period of time ends? Is agreeing a new fixed term always the best way forward? Let’s look at the options.

What is a periodic tenancy?

Most private tenancies start with a fixed-term tenancy, so called because it stipulates an agreed fixed term of time. During this time both parties are legally bound – the tenant to pay rent for the full term, and the landlord to allow exclusive, safe possession of the property.

Once the fixed term of a tenancy has expired – and unless a new fixed term is agreed to – all tenancies automatically, by law, become periodic tenancies. Unlike a standard assured short hold tenancy, a periodic tenancy rolls on week by week or month by month, for example – with no end date. There’s no fixed term, in other words. The periodic tenancy simply continues ‘running’ until one party, landlord or tenant, gives notice.

If your tenant wants to stay in your property at the end of their contract and you are happy for them to stay, you have two options.

You can prepare a new assured shorthold tenancy contract for both parties to sign. Or you can simply allow the original tenancy to become ‘periodic’.

If – without giving notice – a tenant stays even one minute past midnight on the last day of the fixed term of your contract, the agreement between you automatically becomes a (statutory) periodic tenancy, and the tenant will have to give proper notice, unless you agree to them leaving.

There’s no legal obligation to give tenants a new fixed-term contract; some tenancies run on happily for years on a periodic basis.

Statutory periodic tenancy

Most periodic tenancies are by default statutory periodic tenancies because they were created by statute law.

The majority of private renters are contracted by assured shorthold tenancies, which were established and are regulated by the Housing Act 1988. Section 5 of the act states that if the tenant remains in the property after the end of the fixed term, then a new ‘periodic’ tenancy is automatically created.

It goes on to say that the periodic tenancy:

Starts immediately after the fixed term ends
Is between the same people who were the landlord and tenant at the time the fixed term ended
Relates to the same rental property

Be ‘periodic’, meaning it will run from period to period – normally monthly or weekly.

Under a periodic tenancy, all the terms and conditions of the original contract continue to apply, except that your tenant can end the contract at any point by giving you a minimum of one month’s notice.

Contractual periodic tenancies

You have a contractual periodic tenancy if your last agreement was either a:

rolling contract with no end date, or
fixed-term tenancy with a clause that says it would become a periodic contract when the fixed term ended.

One of the plus points of contractual periodic tenancies is that the landlord can specify what the period of the periodic tenancy will be. It allows for and creates some certainty for you.

How long can a periodic tenancy last?

In most cases, the period will be monthly or weekly, depending on what the payment terms are in the original tenancy agreement.

However, if the last payment of rent was different – for example, tenant paid three months in advance in one payment – then the period of the tenancy will reflect this last payment, in this case, three months.

Is a periodic tenancy a good thing?

It depends on what you need. It’s certainly not a bad thing.

If you or the tenant are uncertain of your plans – you may be thinking of renovating or selling your property, for example – it may be better to let the tenancy run on as a periodic because it gives you more flexibility.

It also suits landlords who are concerned about the behaviour of a tenant. A periodic tenancy allows tenants to stay on a month by month basis only if you consider them to be behaving well, month to month.

What are the dangers of a periodic tenancy?

It’s good to be aware of the risks associated with periodic tenancies. Here they are:

The tenant could leave at any time with only a month’s notice
The original contract might eventually become out of date because of new laws. A contract that doesn’t cover all legal requirements is effectively useless and could even lead to the tenant making a financial claim against you

Under a statutory periodic tenancy the landlord, not the tenant, is liable for paying council tax on the property if the tenant leaves during their notice period.

You can avoid this by creating a ‘contractual periodic tenancy’, either by stating in the original contract that the tenancy will become a ‘contractual periodic tenancy’ at the end of the original period, or by issuing a new contractual periodic agreement.

Can a landlord increase the rent on a periodic tenancy?

Yes, you can. A periodic tenancy offers the option of upping the rental fee at any point during any 12-month period. Of course, you need to give the tenant fair notice first.

Can a periodic tenancy start straightaway?

Yes, it does automatically by law.

What is the notice period for a periodic tenancy?

How much notice a tenant needs to give you on a periodic tenancy depends on what type it is. Do you have a statutory periodic tenancy? Then the tenant must give at least:

one month’s notice for a monthly tenancy
four weeks’ notice for a weekly tenancy.

Whereas with a contractual periodic tenancy the landlord has more control and flexibility. The tenant must adhere to the notice term decided by you and written in your tenancy agreement e.g. two months. In other words, the tenant’s notice period is stipulated by you.

How much notice does a landlord need to give on a periodic tenancy?

Once a tenancy has become periodic, a landlord must give the tenant at least two months’ written notice through a section 21 notice to leave the property, and terminate the tenancy.

Tenant Referencing – why it’s important

by Lewis JonesPosted on 12 July 2019

Tenant referencing is very important, even if you’re renting to people you know. It protects both parties and helps you be sure you’re making a wise decision. Why? Because it flags potential problems, such as historic missed rental payments or poor credit, before you’ve signed a tenancy agreement.

Until recently, the cost of referencing potential tenants was passed to the tenants themselves. Not any more.

Since the tenancy fee ban came into force 1 June 2019, landlords and estate agents now need to cover the cost of doing background checks on prospective tenants.

Because the ban is new, some landlords may inadvertently – or deliberately – skip this step. But frankly, this is asking for trouble!

‘Nightmare’ tenant stories

The internet offers up plenty of landlord horror stories, such as the landlady in Hull who was forced to pay £300 for her tenant to leave, despite them leaving the property in an awful state, with holes in the walls and floors and rotting food strewn all over.

The tenant said she had housing benefit that would pay the landlady, but it turns out she wasn’t entitled to it and the landlady wasn’t paid a penny throughout the entire tenancy.

Then there’s the chap who caused £12,000 worth of damage to the property after a dispute about an electric meter.

Not even celebrity landlords are exempt from terrible tenants. Two years ago, English footballer Frank Lampard rented his £2 million London property to a woman who openly began using his basement for unlawful activities.

What should you be checking?

Financial Reliability

This will check whether your property falls into the affordability bracket for the prospective tenant, and whether their outgoings each month are consistently more than their income.

Scanning credit reports and credit history for CCJs or payment defaults

If a prospective tenant hasn’t been able to keep up with credit, loan or bill repayments this would raise a red flag.

Employment status

Confirmation of your new tenant’s employment status with confirmation of their contract type and/or length.

Tenancy track record

If your tenant is moving from another rented property it is important to ask for landlord references. Landlords tend to look out for each other, so if a tenant is to be avoided, a previous landlord is likely to let you know!

All these checks and reports will help you make an informed decision about the suitability of your new tenant.

If your prospective tenant raises a red flag in any of these checks it may be an immediate ‘no thanks’. You could also consider a guarantor if your worries are on a strictly financial basis.

It’s also important to remember that if you are taking out Rent Guarantee Insurance the policy will include that a tenant has passed affordability, proof of earnings, credit score and CCJ checks.

Regular property inspections

As well as all the credit and referencing checks that you should do at the start of the tenancy you should make sure you do regular property inspections.

This will make sure everything is being kept clean and in good working order, and that the property is not being used for something outside the terms of the tenancy agreement such as running a business.

The Howsy tenant referencing service

The good news is, such stress (and money drains) can easily be avoided. Unlike some traditional letting agents that charge an additional fee to vet prospective tenants, it’s included in both Howsy’s Standard, and Protect Plans.

From just £35 a month (or £65 in London) we do industry-standard credit checks and references on your tenants.

Usually all of this is done fast – in under 72 hours. And our smart technology and experienced reference team will flag up fraudulent tenancy applications and misleading information within that time, too.

Always check the facts – or at least let us help you check them – and enjoy the benefits of having good tenants.

Smoke Alarms and Carbon Monoxide Detectors in Rental Properties

by Lewis JonesPosted on 25 June 2019

Putting solid safety measures in place is good for everyone. Both landlords and tenants can sleep well at night knowing there are working safety alarms in their property that will warn of any danger.

There’s no doubt about it; working alarms save lives. If there was a fire in your home, it’s said you’re at least four times more likely to die if there’s no working smoke alarm.

Since the Smoke and Carbon Monoxide Alarm (England) Regulations 2015 came into force on 1 October 2015, it’s a legal requirement for private landlords in England to fit smoke and carbon monoxide alarms. This means privately rented properties are now in line with building regulations that require newly-built homes to have hard-wired smoke alarms fitted.

Are smoke and carbon monoxide alarms the landlord’s responsibility?

Yes, and no. Yes, the landlord has to make sure the alarms are working on the first day of the tenancy (even if the tenant decides to move in after that date). After that, it’s the responsibility of the tenants to check – ideally every month – they’re working properly.

Is it illegal not to have a smoke and carbon monoxide alarms?

Yes, it is.

Are there penalties?

Fail to install smoke alarms and carbon monoxide detectors and landlords in England could face up to a £5,000 civil penalty, imposed by the local housing authority. If they disagree with the penalty charge notice, they can ask the relevant local authority to review it.

At worst, landlords may go to prison for breaking the law. A landmark British case in 2018 saw a landlord jailed for a year following the death of two young brothers from a fire in a Huddersfield home that his property company managed.

The West Yorkshire Police Detective Superintendent dealing with the tragedy said: “We hope that this case is a stark reminder to landlords and letting agents to treat their responsibilities seriously and they have an obligation to ensure that all properties are fully equipped with all adequate safety measures to ensure the safety of their tenants.”

Where should the alarms be placed?

The regulations don’t state where the alarms should be go, just that at least one smoke alarm should be on every storey, and a carbon monoxide alarm in every room with a solid fuel-burning appliance in it, such as an open fire. A purely decorative fireplace doesn’t count.

However, as gas appliances can emit carbon monoxide, we encourage landlords to ensure that working carbon monoxide alarms are installed in any room with a gas appliance in it.

In general, smoke alarms are best fixed to the ceiling in a hallway or a landing, and carbon monoxide alarms at head height, either on a wall or shelf, about one to three metres from a potential source of carbon monoxide.

London Fire Brigade strongly recommend an additional heat detector in the kitchen.Your local fire and rescue authority may be able to offer extra advice, or you can download fire safety information from www.gov.uk/firekills.

Do rental properties need hard-wired smoke alarms?

The regulations don’t specify what type of alarm should be fitted. That said, Howsy believes the best option would be a hard-wired type. If opting for stand-alone ones, we recommended getting the models with a 10-year battery life.

If the occupier shares the accommodation with the landlord or landlord’s family, the 2015 regulations don’t apply.

Tenancy Deposit Schemes – What Landlords need to know

by Lewis JonesPosted on 18 June 2019

Landlords and letting agents that rent a private property on an assured shorthold tenancy have to protect their tenants’ deposits in a government-backed tenancy deposit scheme. It’s the law, and it protects you too.

What is a tenancy deposit protection scheme (TDP)?

A tenancy deposit protection scheme has two main roles: to protect deposits in an authorised scheme, and to help resolve disputes about deposits.

What are the schemes I can use?

In England and Wales a deposit can be registered with one of these schemes:

They’re quick to join if you opt for what’s called custodial protection, where the deposit is held by the scheme provider for the duration of the tenancy. The other option is insured protection, where the landlord and the agent holds the deposit and the TDP scheme to protect it.

And while there are other schemes you could use, only the three above are protected in law. Other schemes won’t give the same level of protection for either landlords or tenants.

Does a landlord have to put deposit in a scheme?

Yes; as of 1 June 2019 it’s a legal requirement. You have to use a TDP even if a deposit is paid by someone other than the tenant, such as their parents. And you have to pay it in within 30 days of receiving it. Within that time, you must also tell your tenant:

the address of the rental property
how much deposit they’ve paid
how their deposit is protected
the name and contact details of the TDP scheme and its dispute resolution service
your (or the letting agency’s) name and contact details
the name and contact details of any third party that’s paid the deposit
why you would keep some or all of the deposit
how to apply to get the deposit back
what to do if they can’t get hold of you at the end of the tenancy
what to do if there’s a dispute over the deposit.

You don’t need an inventory to join a TDP but it can be helpful to have one anyway. It could help resolve any dispute that may arise at the end of a tenancy.

How can a tenant check if their deposit has been secured?

By visiting the website of the scheme their deposit is protected with and entering a few details, such as a code (provided by the landlord or letting agent), postcode, surname and/or the date the tenancy started. The details asked for differ from scheme to scheme but are all straightforward.

What are the benefits for landlords?

It allows them to have money as security should a tenant break the terms of the tenancy agreement.

What are the benefits for tenants?

They’ll get their deposit money back if, at the end of the tenancy, they:

meet the terms of their tenancy agreement
haven’t damaged the property
paid the rent and all bills in full.

Landlords must return a deposit within 10 days of agreeing with the tenant(s) how much they’ll get back.

How much deposit can a landlord ask for?

Landlords in England cannot legally ask for more than the equivalent of five weeks’ rent for new and renewed tenancies — or six weeks if the annual rent is at least £50,000.

What happens if you don’t protect a deposit?

A tenant can apply to the local county court if a landlord hasn’t used a TDP scheme when they should have.

Penalties include:

repaying the deposit in full to the tenant
paying it into a TDP scheme’s bank account within 14 days
a fine between one and three times the deposit amount, payable to the tenant
you may also lose the ability to get a court order to regain possession of the property (under a Section 21 notice of the Housing Act 1988). The landlord can only serve a Section 21 eviction notice after the deposit has been repaid, or after any court case about the deposit is over.

The court can decide that the tenant won’t have to leave the property when the tenancy ends.

What can a landlord deduct from a deposit?

The landlord or agent can take a payment from the deposit if:

both landlord and tenant have agreed
the court has ordered the deposit to be paid.

How are deposit disputes handled?

If there’s a disagreement about how much money should be given back, your tenancy deposit protection scheme offers a free dispute resolution service.

Your not obliged to use the service, but if you do, both tenant and landlord have to agree to it. You’ll both be asked to provide evidence, and the decision made about a deposit will be final. There’ll be no right to appeal. The entire process can be handled completely online. The alternative? Go through the courts.On a final note, the law requires your TDP scheme to guarantee only that the tenant receives the amount they’re entitled to. No more, no less.

Howsy uses MyDeposits.co.uk, a scheme authorised by the British Government that protects tenants’ money across England and Wales.

Tenant Fee Ban – What Does it Mean for Landlords?

by Lewis JonesPosted on 10 June 2019

The new Tenant Fee Ban now effects all residential landlords in England. Whether you know much about it or not, landlords can’t afford to ignore the new legislation. Those who do risk facing a big fine. Here’s what you need to know…

What is the Tenant Fee Ban?

The Tenants Fee Act 2019 came into effect 1 June, making it now illegal to charge unfair additional fees — such as an admin fee — to tenants when they take on a new property, or renew a contract.

The ban automatically applies to all new contracts signed after 1 June 2019. From 1 June 2020 it will apply to all other applicable tenancy contracts too.

Why has the Tenant Fee Ban been introduced?

To make renting fairer for private tenants who for too long were being charged unfair fees each time they went to rent a new property.

Private renters in England — including families with dependent children — have been paying £13 million a month in letting fees, says Citizens Advice. One in seven tenants paid over £700, while one shelled out over £2000 for the privilege of moving into one property!

The old ‘system’ was especially harsh on those forced to look for a new place because their landlord was selling up. In other words, it wasn’t their choice to move.

When landlords use a traditional letting agent to let out their property, the agent would charge to cover the purported costs of credit checks, referencing and drawing up the tenancy agreement, for example. Charges could also include a mandatory inventory fee, contract renewal fee, and an ‘admin fee’.

With so many people moving home every year, such fees could put a huge strain of families and individuals. Research by the Citizens’ Advice Bureau reveals that 42% of renters had to borrow money just to pay their tenant fees.

What does the tenant fee ban mean for landlords?

The government estimates that in its first year it could cost landlords up to £83m, and letting agents £157m.

What’s certain is that landlords cannot now lawfully charge:

Viewing fees
All fees associated with setting up a tenancy, including referencing, inventory and credit checks
Check-out fees
Third party fees
Gardening services.

You can, however, charge for:

Rent
A refundable tenancy deposit (maximum five weeks’ rent, or six if the annual is £50,000 or more)
A holding deposit (capped at one week’s rent)
Replacing lost keys
Any changes the tenant asks to be made to the contract (capped at £50)
Bills, such as council tax, water, broadband, TV licence
Ending the contract early
Late rent payments (after 14 days, and only if written in the contract)
Cleaning fees in extreme circumstances.

Tenant fees account for about 19% of a letting agent’s income, with some agencies reporting as much as 30% of their annual income from tenant fees alone. Agents will look to recover this by increasing the fees they charge the landlords.

While many have argued that the landlord will in turn increase the rent they charge, there’s evidence this may not happen. The ban was introduced in Scotland in 2012, yet only 2% of Scottish landlords were able to put up their rents because of the fee ban. Which means the hit is to be absorbed between landlords and letting agents.

Experts agree that the most likely outcomes for landlords now are:

Face longer void periods because they increased rents to cover costs
Cut back on making improvements, which will see them unable to raise the rent or attract better-quality tenants
Decide to ‘self-manage’ their properties rather than use an agent, which will see many landlords struggling to stay abreast of property rules.

In Wales, agents and landlords will be banned from charging for viewings, signing a contract or renewing a tenancy from September. Northern Ireland have yet to announce a ban on tenant fees.

What is the risk of non-compliance?

Landlords and lettings agents who ignore the ban face an initial fine of up to £5,000. Those committing another breach within five years may be fined a maximum of an extra £30,000, and may possibly be taken to court.

The changes aren’t retrospective, so landlords and agents will not be penalised for fees already paid. They do, however, apply to all landlords, even those who only own one property.

Howsy — the smarter solution

We started Howsy to provide a fairer, kinder lettings service for both landlords and tenants. This is why we don’t charge our landlords or our tenants for:

advertising the property on big property search websites
referencing and credit checks
arranging viewings, or
drafting and renewing contracts.

And we don’t take any ‘admin fees’ either. This was true before the new ban.

In fact, Howsy landlords don’t pay a thing until AFTER the tenants have moved in. And our tenants don’t pay anything besides their rent and deposit.

We offer a complete property management service for just £35 a month anywhere in England, and £55pm inside the M25. As a landlord, you’ll be completely covered for repairs, inspections and rent collections. And even for the eventuality that you’ll need new tenants.

For savvy landlords, this is the time to start looking around for better alternatives to your letting agent. Unlike Howsy’s model, getting out of a contract with a traditional letting agent can take up to six months.

So, waiting until the last moment to start shopping around could mean facing the double impact of increased letting agent fees and the next Section 24 increase. Act now and protect your profits.

To find out more about what we can do for landlords, email us or call us on 0330 999 1234 today.

8 Questions Every First-Time Buy-to-Let Buyer Needs to Ask

by Lewis JonesPosted on 28 May 2019

Like the idea of being a landlord? Owning a buy-to-let property can still be a great investment – if do your research. With new landlords facing more risks than ever, it’s vital to get clear on what’s going to work best for you.

Buy-to-let means buying a property for tenants, not you, to live in. As the landlord, you make money from the rent – as long as it’s higher than the monthly buy-to-let mortgage repayments, of course – and/or when you come to sell the place.

Here are the key questions we recommend you ask yourself when planning a successful rental property investment.

1, Where do I buy?

Location is every bit as important in a buy-to-let property search as it is when buying your own home. “Invest locally” is our advice to first-time buy-to-letters. You know the market well, and it will be easy to meet prospective tenants and keep an eye on your investment. All of which means more peace of mind.

That said, certain areas, especially in England, are dependably strong renters markets. University cities, for example, with thousands of students, like Edinburgh, Liverpool, Leeds, Swansea, and Manchester, promise some of the UK’s highest rental yields (see question no.7). The consistent influx of new students every year are a big draw for landlords.

When you’ve chosen an area to focus on, get on the phone to local letting agents. They’ll know what kind of properties are most in demand, the average house prices, and what they rent for.

2, New build or an older property?

Modernised homes typically rent out quicker than older ones. All new builds in the UK are covered by a 10-year home warranty and insurance guarantee that protects the owner against all sorts of issues, including construction problems.

In the first two years, any faults that don’t meet the warranty provider’s technical requirements have to be corrected by the builder. You won’t pay a penny. After that, the warranty covers you against certain structural defects and smaller issues, such as the double-glazing, internal plastering, and the staircase.

While older properties are likely to be cheaper, they may need money spent on them to get them into a rentable state. On the plus side, places that need improvement present you with an opportunity to renovate them cheaply and quickly boost the value of your investment.

3, Flat or house?

It depends on the level of stress you can handle. A house will probably have more potential maintenance and repair demands because it has external walls and a roof. But a flat will have ongoing service charges. Make sure you know what they are, and whether they’re likely to go up, and when. The most popular type of property in rental areas is a two-bed flat.

4, Who do I want as tenants?

Who you have in your property not only directly impacts how easy – or not – being a landlord is, but all of your plans. Many lenders, for example, put restrictions on mortgages for student properties.

Who do you see as your ideal tenants? What are their needs? If it’s students, they’ll want a good value, non-plush place close to their university, while young professionals tend to prefer somewhere modern, airy and stylish.

A family will typically need to be near a good school and have space and plenty of storage for their belongings, as well as the freedom to put their mark on the property and make it their home. The more at home they feel, the longer they’re likely to stay, which is good news for you.

It’s very important to do reference checks on all prospective tenants to avoid trouble down the line. Skip this step at your peril.

5, What are the transport links like?

If you’re planning to buy in or around London, or any city for that matter, research the local transport links. Easy access to public transport, especially the Tube in London, will be a big selling point. Like buyers, renters are willing to pay more to live near a public transport station.

Are there new transport infrastructure projects being discussed? They’re likely to spark a sharp upward trend in (sales and) rental prices for you. Get in as early as you can.

6, How low can I go?

As a buy-to-let investor know that you’re in a strong position to negotiate a discount on the property price. Just like a first-time buyer, you’re not in a chain, and that’s very attractive to a seller. So haggle hard on sale prices and don’t feel you need to love a property. You aren’t going to live there – it’s an investment.

7, What’s the rental yield and affordability?

Do the maths thoroughly before you start your search in earnest. Figure out what your monthly rental yield will be – that’s the income you’d make on a property expressed as a percentage on the building’s value. As a benchmark, 5% a year is considered a good rental yield.

Your mortgage application will also consider affordability. In other words, whether you can keep up with mortgage payments while the property is empty. As a rule of thumb, it’s smart to budget for a place being empty for at least two months in any 12. Consider all costs, such as agent fees, stamp duty, repairs, etc., when working out the affordability.

8, What capital gains might I get?

Although you’re initially looking at rental income as your key return on investment, long term capital gains and property price increases can be very nice too. So invest in up and coming areas.

Word of warning: buy-to-let properties are not exempt from capital gains tax (CGT), due on any increase in value when you come to sell. CGT is paid at 18% or 28%, depending on your tax bracket. Other profit-eating costs you’ll face include insurance premium tax, and an extra 3% on stamp duty.

Property investing still makes people money. Sometimes a lot.Talk to those who’ve done well and ask them for tips, and which pitfalls to avoid.

Going in with your eyes wide open like this will boost your chances of securing a successful buy-to-let investment. Good luck!

Boiler Cover insurance saves landlords money and hassle

by Lewis JonesPosted on 26 March 2019

Studies suggest that landlord stress is growing year on year. Whether it’s dealing with difficult tenants or late rent payments, landlords face a number of worries.
However, it’s large costs for unexpected urgent repairs that can cause the biggest headaches. A call from a tenant saying they have no hot water and a possible boiler breakdown has to rank amongst high amongst the types of calls landlords do not want to receive!
Being prepared for such an emergency can be a lifeline at a difficult time. Our advice? If you are a smart landlord, get a Landlord Boiler Cover insurance and save yourself the stress.
Boiler cover is there to help the landlord if the boiler in any one their properties packs up. It ensures renters are not left without heating for longer than is absolutely necessary, saves the landlord money and, just as importantly, removes a whole lot of stress.
As a landlord, it is your responsibility to ensure your tenants are not left without heating, but repairs to a boiler can be expensive. Costs can be as high as £2,000 which is why a good landlord boiler insurance policy can be vital.

Choosing the best landlord boiler cover

As with any other insurance product, ‘you get what you pay for.’ Basic options will leave you with only limited cover, but will cost less per month, while the most expensive premiums will ensure all your bases are covered.
In general, you’ll have two options:

Boiler cover only: This is a relatively affordable option and will only cover you for the cost of repair to your boiler. Other costs, such as repairs to your pipes, will not be included.
Boiler and central heating cover: This insures your entire central heating system including your boiler, pipes, radiator and central heating pumps. It costs more each month but offers the most extensive cover.

You might also choose home emergency cover. This is cheaper than the other options and provides cover for various emergency repairs for your property, including your boiler. This, though, only covers to a limit of £500 which will only insure you for the most basic repairs.

Deciding on the best policy

Boiler cover insurance is often included as part of your wider landlord insurance products. This can be a little cheaper, but it doesn’t always ensure you get the best policy for your situation. Taking out a separate policy will give you a chance to tailor it to your needs. Your energy supplier may also offer boiler cover as part of the service. Again, this takes away some of the stress, but you may not get the best deal for you as a landlord.
You can choose the level of excess you pay – namely the amount of money beyond which you will pay for repairs. This can save day to day costs, although you will need to be certain that you can afford to pay the excess in an emergency.
Many services also include landlord boiler cover with CP12 excess. This policy includes the annual inspection for a gas safety certificate and an annual boiler service, and can be a good way to reduce the burden of fulfilling your obligations. Some insurers, though, may require you to check your boiler with a Gas Safety engineer before they will give you boiler cover.

Things to think about

The costs of boiler cover can vary from around £5 to £20 per month so it’s worth shopping around to find the best deals. Some insurers may not be willing to cover you if your boiler is older than seven years. There are various schemes to encourage you to replace an old boiler with a more energy efficient new boiler which cost less to run and reduce your carbon footprint.
Most of all, this is a low stress way to meet your obligations as a landlord. You have to make all reasonable efforts to provide a good environment for your tenants. Landlord insurance isn’t mandatory, but it will provide peace of mind, save you from call out charges and that can be worth the money alone.