Subletting is surprisingly common and can offer benefits for both landlords and tenants. But what counts as subletting? And what do landlords need to know about the risks?
We explore what subletting is and what you can do as a landlord to mitigate the risks.
What is Considered Subletting?
Subletting is when a tenant decides to rent out either a room or whole property to a third party. For example, if a tenant decides to go travelling for an extended period, they might try to let their room out to another tenant to pay their rent. Other reasons could include;
- Change in income
- If they need to relocate before the end of a contract
- If another tenant decides to move out before the end of the tenancy and they need to fill the space
To be a sublet, the original, existing tenant needs to give exclusive access of at least one area of the property to the subtenant. The subtenant will not pay rent directly to the landlord but to the original tenant.
Is Subletting Illegal?
In most cases, subletting is legal if the tenant obtains the landlords permission to let out the rental property.
However, if the tenant sublets without written permission, they could come into legal difficulties.
Can A Landlord Refuse A Sublet?
This all depends on what it says in the tenancy agreement. If there is a section in the agreement that says a tenant can ask the landlord to sublet, landlords will need to have a valid reason for refusal.
However, if there is no mention of subletting in the tenancy agreement, as a landlord, you can refuse more easily.
It’s worth noting that in the case of fixed term tenancies, the tenant may still be able to sublet without consent if there is no mention in the agreement. That’s why it’s important to be clear on the terms of your agreement from the get-go.
Not keen on the idea of allowing a tenant to sublet? There are a few steps you can take to ensure it doesn’t happen;
- Include a section in the tenancy agreement prohibiting subletting
- Arrange regular property inspections to help prevent unwanted subletting. The professional carrying out the inspection will usually be able to tell if something is awry. It will also indicate to your tenants that you aren’t complacent as a landlord.
- Try to develop strong relationships with your tenants so they come to you first if they are having any difficulties making the rent.
Illegal Subletting
If a tenant decides to go ahead and sublet without permission, there are two main circumstances that most commonly occur;
The tenant rents out a room in the property whilst still living at the address.
This is the most common situation, and often happens when flatmates move out unexpectedly.
In this situation, think carefully about how you want to proceed. If the new subtenant has caused no issues and the rent is paid on time, it can sometimes be advantageous to allow them to continue living at the property. If this is the case, draw up an agreement to stay protected. Don’t accept any payment until you have a proper tenancy agreement in place.
The tenant rents out several or all the rooms in the rental property whilst living at a different address.
This could have serious consequences for you as the landlord. If these subletting tenants report issues to the original tenant who they assume is the landlord, property maintenance issues may go unresolved and you start to lose control of your property.
What Happens If Your Tenant Sublets Without Permission?
If you discover your tenant is subletting without your permission, there are a few steps you can take;
- Talk to your original tenant first to find a solution
- If the tenant persists subletting, sub-tenants should be informed, and either be asked to vacate the property or draw up a new tenancy agreement for them
- If all else fails and the subtenant refuses to vacate, you may need to begin the eviction process
What Are The Risks Of Subletting?
If a tenant decides to sublet their room, there are a number of risks you need to be aware of;
Insurance and Mortgage
Some insurance and mortgage providers don’t allow subletting and ignoring this could lead to voiding your contract. It’s vital you avoid this at all costs by checking your agreement before allowing a sublet.
End of The Tenancy
If your original tenant decides to move out, but their subtenant is still living in your rental property, you may come up against issues. Evicting a tenant without a tenancy agreement can get complicated.
How Do You Sublet Safely? Tips for Landlords
Subletting doesn’t always spell disaster. In fact, it can be profitable for both landlord and tenant, solving common issues such as change of circumstance.
If you do decide to grant your tenant permission to sublet, here’s a few steps you can take to ensure your investment stays protected;
- Ensure you are clear on the contents of the tenancy agreement and what it says about subletting. If there is no mention, you may want to add a clause to be on the safe side.
- Spend time on tenant referencing to ensure you end up with reliable, trustworthy tenants.
- Spend time getting to know your tenants and making a good impression. This way, they are more likely to come to you first if their circumstances change.
- Carry out regular property inspections.
Protect Your Investment with No Letting Go
If you need a helping hand protecting your investment, we have teams of experienced inventory clerks across the country ready to support you.
We can provide regular property visits, every 3-4 months to ensure your property is being well maintained and tenants are fulfilling their contractual obligations.
In addition, a comprehensive inventory report is one of the best ways to protect your investment in the long term.
Interested in hearing more? Get in touch or visit our services page to find our property inventory packages.
From where to advertise, to creating an engaging listing, getting your marketing right is essential for making your property stand out from the crowd.
Effective advertising generates greater interest in your property, attracting the right target tenants and providing you with a wider tenant pool to choose from.
Here, we share our advice on how to advertise rental property so you can speed up the rental process, find the right tenants and secure maximum returns on your investment.
Where To Advertise My Rental Property?
Let’s start with where to advertise. With the internet becoming the preferred source for property searches, it makes sense for your property to have a strong online presence.
Here are your options;
Online Property Portals
Online property portals such as Rightmove and Zoopla are very popular as they allow prospective tenants to narrow their search by location, size, price and much more.
Even high street lettings agents are turning to these sites to help get the properties on their books seen by a wider range of tenants.
Here’s a list of some popular property portals;
- RightMove
- Zoopla
- Prime Location
- On the Market
Most of these property portal sites don’t deal with private landlords directly. Instead you have two options;
- Enlist the services of a high street lettings agent to post the listing for you
- Use an online estate agent such as OpenRent or Upad
High Street Letting Agent
The benefit of advertising your property through a quality high street letting agent is that they will have the expertise and experience to market your property professionally and will take away the hassle of finding a tenant.
A letting agent will also conduct tenant referencing, property viewings and tenant checks which will save you a lot of time. However, this is often the more expensive option.
Online Letting Agent
When enlisting the services of an online letting agent, they will list your property for you on the relevant property websites and generate enquiries. You will still be able to meet potential tenants, conduct tenant referencing and choose the best fit yourself.
This is often cheaper than using a high street estate agent as there is just one fixed cost.
Social Media Platforms
Social media platforms such as Facebook are becoming a popular way of advertising and searching for rental properties, especially when it comes to finding rooms in shared houses.
The benefit of listing your property on social sites is that it is likely to reach wide audiences, as people can share with friends and comment directly on photos.
Lots of letting agents use social media to advertise the properties in their portfolio, or if you operate as a private landlord, you can create your own account. Join local online community groups to get your property seen by people looking for housing in the area and always reply to comments and enquiries.
How Do I Market My Rental Property Effectively?
Now we’ve looked at where to advertise, we now need to find out how. We’ve compiled a list of essential tips and advice to help rent your property to the right tenants, and fast;
Establish Your Target Tenant
The first step in the process is to establish your target tenant. Identifying a tenant profile will help tailor your marketing efforts to appeal to the right people.
For example, if you’re renting to students, make sure you advertise your property as furnished, or if you are targeting families, focus on space and the prevalence of schools in the area.
Calculate Your Rental Price
Next, you need to calculate a price bracket according to similar properties in the area and your target tenant’s income. Make sure you factor in maintenance costs, and any other outgoings.
Tip: When advertising on online property portals, take note of the price brackets of each site, and which price bracket your property will appear in. If you increase or decrease the rental price you could appear in a whole different price bracket and not be searchable to your target tenant.
Identify Your USPs
Your property’s USP or unique selling point is what makes it stand out from the competition, and what makes it attractive to your target tenant. It could be anything from a private garden or parking space to its proximity to local amenities such as schools and shops.
Whatever it is, make sure you highlight it in the description fields.
Include a Detailed Description
When it comes to writing a description for your property, you need to strike the right balance between engaging and informative.
Provide as much detail as you can about the property, including key features, the local area and USPs.
It’s best to start with a short, engaging paragraph describing the property as a whole, focusing on lifestyle aspects and the properties best bits. Then follow this up with a more detailed account of features, rooms and outside areas.
Always include the availability date and any other important details such as if bills are included.
Tip: If the property is furnished with quality furnishings and appliances, it may be worth incorporating some well-known brand names into the description. E.g, The modern kitchen features an LG fridge and Samsung washing machine.
Use Quality Photographs
Professional, good quality photographs are perhaps the most important factor when it comes to advertising your property. Be sure to include photos of each room, the exterior and any outdoor areas, paying particular attention to special features.
Try to take the photos on a sunny day to show your property in the best light and ensure everything is clean and tidy.
To maximise your properties potential, it’s worth investing in 360° property photography. 360° degree photography provides interactive, panoramic images that place the viewer in the footsteps of the photographer, bringing your property to life. These images can even be transformed into a virtual tour for remote property viewings!
The main thing to bear in mind is that first impressions count, and the images you provide will be make or break for many tenants.
Provide Details About Your Desired Tenant
As well as providing details for your tenants, it’s also a good idea to indicate what type of tenant you are looking for from the get-go. For example, state whether you allow pets or whether you are willing to rent to students. This will speed up the rental process by ensuring everyone is on the same page.
Respond Quickly
One you get an enquiry from a potential tenant, act fast. A swift reply will give a good impression and help secure a tenant as quickly as possible.
Ask For Help
Busy landlords have a lot to think about. That’s why it can pay to enlist professional services when advertising your property for rent.
We offer a range of property management services, all designed to help landlords, lettings agents and property professionals save time, streamline their processes and comply with regulations.
From 360° photography to help get your property noticed, to property viewings and comprehensive inventory reports, our teams across the UK are ready to help. Get in touch or browse our full list of property inventory services to find out more.
Usually, landlords don’t have to worry about council tax. However, when it comes to HMO properties and vacant periods, things can start to get confusing.
It’s important to understand your landlord council tax responsibilities so as not to get caught out by any unexpected bills or legal issues. So, who pays council tax? What happens when your property is empty? And what about unpaid tenant debts?
From who is responsible to available discounts and exemptions, our council tax guide covers everything responsible landlords need to know.
Should I Be Paying Council Tax?
All residential properties in England and Wales are liable for council tax. If you fail to pay on time, there could be serious financial and legal consequences.
How does it work? The council tax system works according to a hierarchy of liability. The first on the list to pay is any adult over the age of 18 who is an occupant of the property. The landlord or property owner comes much further down this list.
How Is Council Tax Calculated?
Properties are assessed by the Valuation Office Agency (VOA) and placed within bands A-H according to the location and type of housing. The banding is based on the amount the property could be sold for and the cost for each band varies by council.
Who Pays Council Tax: Tenant Or Landlord?
This depends on the sort of tenancy agreement you have in place. Usually, if you rent the entire property to one or several joint tenants, it is their responsibility to pay. (This includes single occupants, families and shared tenancies) In this case, the bills will be sent directly from the local council to your tenants, leaving you out of the equation.
However, if you rent to several tenants with individual tenancy agreements, you will become responsible for paying council tax. Therefore, if you rent out an HMO property, you will be liable to pay.
Do Landlords Pay Council Tax On Empty Properties?
Yes. During void periods, the landlord is responsible for paying council tax.
The size of the bill depends on your local council. You could be given a discount of up to 50% while the property remains unoccupied. However, this is becoming more unlikely as the number of unoccupied properties grow.
If your property is unfurnished, you may be exempt from council tax for up to 6 months.
Is A Landlord Liable For Unpaid Council Tax?
Not usually. As long as the tenancy agreement stipulated that council tax payments were the responsibility of the tenants, then landlords should be safe if tenants leave with unpaid debts.
If your property is vacant for any time, as the landlord, you will be responsible for paying tax during this period. However, you should not be responsible for repaying leftover bills that should have been paid by tenants while they were living in the property.
Without proof of a signed tenancy agreement, it will be harder to convince the council of your exemption if your tenant moves out early without notifying you.
See our blog on who is responsible for unpaid utility bills for more answers to common questions regarding bills.
Landlord Council Tax Exemption
Some properties and tenants are either exempt from paying council tax or are eligible for a discounted rate.
If you’re a landlord of an HMO property, make sure you check your tenant’s status to find out if you are eligible for any discounts. For example, if there is a mix of full-time students and one adult, you may receive a 25% discount.
Who Is Exempt From Council Tax?
There are certain groups of people who are exempt or eligible for a discounted council tax bill;
- Single occupants of a property receive a 25% discount
- Full time students are exempt
- Live in carers are exempt
- Tenants below the age of 18 are exempt
What Properties Are Exempt From Council Tax?
There are also a number of properties that are exempt from paying council tax;
- Unfurnished properties may be exempt for six months
- Recently repaired properties may be exempt for six months
- Properties occupied by full time students only
- Properties solely inhabited by tenants under the age of 18 receive a 50% discount
Landlord Council Tax Advice
To ensure you stay on top of your council tax responsibilities and avoid any unexpected bills, follow these simple tips;
- Always determine who is responsible for paying council tax in the tenancy agreement
- Keep a signed copy of this agreement on file
- Notify your local authority at each change of tenancy and give the names of new tenants
- For HMO properties where you are liable to pay council tax, ensure you factor this cost into the rent price
- Plan for any void periods in which you may have to pay council tax
- Check for any council tax discounts or exemptions you may be eligible for
- Try to minimise void periods to avoid paying council tax in between tenants
Property Inventory Management From No Letting Go
If you’re a busy landlord looking for help managing your portfolio, we could help. Our wide range of professional property services includes comprehensive inventory reports, vacant property inspections and right to rent checks.
Here’s what else we offer;
- Floor plans
- Smoke and CO reports
- 360-degree property photography
- Property appraisals
- HHSRS
- Legionella risk assessments
- Digi Sign
- Check in/check out
- Mid-term reports
For all your property management needs, browse our full list of property services to find out how our friendly team could help streamline your business and protect your investment.
What if your tenant moves out without paying their utility bills or council tax? Does it fall on you as the landlord to pick up the pieces?
This is a common question among both landlords and tenants, and it needs clearing up. So, who is responsible for unpaid utility bills? Let’s find out.
Are Landlords Responsible For Unpaid Utility Bills?
Not usually. As long as it is the tenant’s name on the bill, and it is stated in the tenancy agreement that tenants are responsible for utilities, landlords are not liable for unpaid bills left over by tenants.
However, as a landlord, there are some steps you will need to take to protect yourself if you find yourself in this tricky situation;
- Always tell the local council when a new tenant moves in. You will need to provide the names of the new tenants and the contact details of the previous tenants so they can get in touch if needs be.
- Inform the energy suppliers of the property of any change in tenancy (this includes gas, electricity and water)
- Encourage new tenants to change the name on the utility bills as soon as possible.
- Make a note of the meter readings at the start and end of each tenancy so you have a record for the utility companies.
- Ensure your tenancy agreement clearly states that utility payments are the responsibility of the tenant.
- Keep a signed copy of the tenancy agreement in a safe, easily accessible place.
What Bills Are Tenants Responsible For?
This depends on the tenancy agreement you have in place.
Commonly, tenants are responsible for the following bills;
- Water
- Electricity
- Gas
- Council tax
- Internet
However, this is not always the case. Let’s look at two different situations;
Utilities Registered In The Tenant’s Name
When bills are registered in the tenant’s name, the tenant is responsible for paying them from the date they move into the property. However, they are not responsible for any debts left behind from previous tenants. It’s important for tenants to check the meter readings on move-in day so they can supply their energy providers with the correct readings at the start of their tenancy.
In this case, landlords are not required to pay any remaining payments after their tenant has left. The utility companies will have to chase the tenant themselves, meaning the issue is out of your hands.
Utilities Registered In The Landlord’s Name
You can choose to register bills in the landlord’s name and ask the tenant to pay you for their usage. This can be helpful for short lets, or if you rent out a room in your own house. However, if the tenant leaves without paying, you may be responsible for paying the outstanding sum.
To avoid this situation, always follow the steps outlines above.
End Of Tenancy Utility Bills
To end a contract, most utility suppliers require a few days notice before the end of a tenancy. As long as the bills are in the tenant’s name, this is entirely their responsibility to organise.
If there is outstanding debt left over and…
- The utilities are in the landlord’s name
- Or the tenant failed to register for utilities whilst living at the property
You may be able to prove the tenants were living at the property if you supply a copy of the tenancy agreement. However, this will depend on the individual policies of the utility companies.
Who Is Responsible For Bills During Void Periods?
If your property is empty for any period of time, the owner of the property is responsible for utility payments.
This is why it’s best to keep energy usage to a minimum in between tenants. However, during the winter, we recommend keeping the heat consistent to protect against mould and damp and avoid further maintenance costs in the long run.
If your property is left vacant for an extended period, you will need to organise regular vacant property inspections to check for leaks or mould.
Who Is Responsible For Utilities In Multiple Occupancy Properties?
If there are several tenants living at a property, disputes can often arise regarding bills. The main thing to remember is that whoever’s name is on the bill is ultimately responsible.
This means, if all tenants in a house share or HMO rental property have their name registered to a utility bill, they are all equally liable to repay debts, even if it’s only one tenant who hasn’t paid.
Property Management Help From No Letting Go
One of the simplest ways to avoid disputes and protect your investment at the end of a tenancy is to have all of your property reports in one easily accessible place.
All of our check in reports come with utility checks and meter readings included to help landlords and property professionals keep on top of their responsibilities.
Keen to learn more about how our flexible reporting could help? Find our full list of property inventory services here.
Budgets can be tough to manage for landlord and letting agents alike. Sometimes, property maintenance costs can eat into your finances dramatically.
From what’s involved to how to save, we offer insights and guidance on how to best manage budgets when undergoing maintenance on your property portfolio.
What Is Included In Maintenance Costs?
Before we go into budget management, we need to be clear on what maintenance costs are involved in renting a residential property.
Here’s a list of all the things to consider when it comes to maintenance;
Repair Costs
As a landlord, it’s your responsibility to fix any repairs needed resulting from normal wear and tear. This can include;
- Repairing or replacing white goods and appliances
- Fixing boiler issues
- Repairing any electrical faults
Refurbishment & Decoration
Keeping your property looking fresh for new tenants is an important part of being a good landlord and attracting the right target tenants. It’s recommended that carpets are replaced every 5-7 years, and properties are fully redecorated every 3 years.
However, if your property is looking particularly lived in after a tenancy or you come across some questionable stains, you might need to redecorate more often.
Here’s what else is included in refurbishment and decoration;
- Painting throughout
- Replacing carpets or flooring
- Replacing curtains
- Replacing old, tired furniture items every 10-15 years
- Replacing kitchen and bathroom fittings every 10-15 years
Exterior Maintenance
It’s not just the inside that needs attention. Staying on top of the exterior of your property can help ward off future structural issues and save money in the long run.
Here’s what it could include;
- Replacing missing roof tiles
- Clearing guttering
- Garden fence maintenance
- Window cleaning and repair
Interior Cleaning
Thorough cleaning is essential between tenancies, and you may also need to arrange for cleaning to be done during a tenancy. If the windows need cleaning for example, or if the property has suffered water damage.
Property Inspections
Particularly important during void periods, regular property inspections are an important part of maintenance for buy to let properties.
Inspections protect your property from theft, vandalism or damage from unnoticed leaks, preventing the need for extensive future repairs. We offer a professional vacant property inspection service to give you peace of mind that your investment is protected.
Gas Safety Certificates & Safety Checks
UK landlords have a legal requirement to arrange regular safety checks, including;
- An annual gas safety inspection from a Gas Safe registered engineer
- Electrical safety checks
- PAT tests for white goods
- Energy Performance Certificate
- Ensure smoke detectors are present and working
Your Time
This cost is usually overlooked by most landlords, but the time you put into the maintenance of your portfolio really adds up. Particularly if you are balancing your duties as a landlord with another paid job, extra time spent on maintenance may mean losing out on wages.
If this is the case, it may be worth investing in a full management service from a property management company so you can swap a management fee for more time for other ventures.
How Much Does It Cost To Maintain A Rental Property?
Maintenance costs will vary depending on several factors;
- Size of the property
- Age of the property- older homes require more upkeep
- Location of the property- service charges vary dependant on area
- Type and number of tenants
For example, if you rent to students or large families, you may have to fork out more for accidental damage repair costs.
Landlord Maintenance Costs: How to Save Money
Now we’ve discussed what’s involved, it’s time to look at ways to save.
Choose Your Target Tenant Wisely
While finding tenants may not be the first thing you think of when it comes to maintenance, the tenant you choose could have an effect on your maintenance costs.
For example, as mentioned above, renting to students can result in more accidental damage as there tends to be more people living in one property, and tenants have a reputation for partying! Similarly, renting to tenants with pets is likely to involve more refurbishment at the end of the tenancy.
Deciding on your target tenant from the get-go is an important part of the process.
Act Fast When It Comes to Repairs
The quicker you act on repairs and maintenance tasks, the more popular you’ll be with tenants and the less likely they are to develop into serious issues. Usually, dealing with problems as soon as they arise means you can save money in the long run as you have time to think about the best possible solution.
Paying for maintenance costs early will also help you to manage your monthly budgets and keep on top of your spend.
Buy Quality Furnishings
Opting for the cheapest furnishings available isn’t always wise. The cost of replacing flimsy furniture every year is likely to add up to more than investing in quality in the first place. This is particularly true for mattresses, sofas and dining tables. Our blog on furnishing your rental property will help you with some handy tips.
Keep It Simple
When it comes to decorating your properties, more is less. You don’t need to go overboard to provide a comfortable home for tenants. Simple, modern furniture without too many frills will appeal to most and will be kinder on the budget.
Tip: Avoid painting everything white as it will require more upkeep. Neutral, mid-tones are much more forgiving.
Don’t Skimp on Landlord Insurance
Landlord insurance is essential when renting a property. Finding the right deal can help you save when things go wrong. Quality contents or accidental damage insurance will protect you in the case of weather damage or accidental spills.
Make sure you shop around for the best deals.
Check Council Tax Exceptions
If one of your rental properties is vacant for a period, or you are performing refurbishment that renders your property inhabitable, you may be eligible for Council Tax redemption. This will leave you with some extra cash to spend on essential repairs and decoration.
Landlord’s Energy Saving Allowance
By increasing the energy-saving potential of your property, you could save money that can be injected back into the maintenance budget.
By reinforcing insulation in your rental property, you could save a significant amount in tax.
Know When To Ask For Help
While rolling up your sleeves and getting stuck in can save on service fees, it’s not always the best option.
Botched DIY can end up costing more than the original problem, and when it comes to electrical or plumbing issues, professional is always best.
Get More Than One Quote
When you need to pick up the phone to a plumber or tradesperson, make sure you do your research.
Particularly important when it comes to bigger jobs, getting several quotes will help you find the most competitive price.
Invest In A Comprehensive Inventory Service
Compiling a comprehensive written and photographic list of all of the items and furnishings and their condition within your property is one of the best ways to recuperate maintenance costs at the end of a tenancy.
If there is any damage beyond normal wear and tear, it will be much easier to deduct the appropriate costs from the deposit.
A professional property inventory service provides an impartial account of your property and is delivered using high quality photography in a handy, easily accessible digital report.
Landlord Maintenance Responsibilities: Help From No Letting Go
The costs of being a landlord are wide ranging. From agent fees to mortgage interest, balancing your rental income with outgoing costs can be tough.
That’s why sometimes it pays to get some help. Whether it’s repairs and maintenance reports or inventory services, our teams of experienced clerks could help streamline your business so you can take control of your budget.
Browse our full list of property management services to find out how we can help.
It’s a common question among new or soon-to-be landlords – do I need landlord insurance?
The short answer is yes. In addition to healthy investment returns, being a landlord comes with a lot of added risks and responsibility. To minimise this risk, investing in reliable insurance is essential.
Protecting your investment is paramount, but the jargon around landlord insurance can make it tricky to keep your facts straight.
We’ve curated a simple, yet comprehensive guide for landlords to help you get your head around landlord insurance and work out which type is best for you.
Here’s what it is, how it works and how to get it.
What is Landlord Insurance Cover?
Landlord insurance is a type of home insurance, specifically designed for rental properties. This broad term can include anything from contents insurance to rental protection.
Your policy could cover;
- Damage to the property
- Loss of rent
- Damage to or loss of contents
- Legal claims made against you by tenants
Is Landlord Insurance a Legal Requirement?
While landlord insurance isn’t a legal requirement, standard home insurance will not cover you for rental properties and going without could cost you dearly in terms of money, time and hassle.
Do You Really Need Landlord Insurance?
Often, you will need permission from your mortgage provider in order to let your property to tenants who will most likely require specialist insurance.
Legal issues aside, it’s always a good idea to protect your property as comprehensively as possible to protect both yourself and your investment.
What’s the Difference Between Home Insurance and Landlord Insurance?
Home insurance is designed to protect private homes from damage and loss. A rental property comes with a whole host of different issues. For example, as a landlord, you are less able to keep an eye on the day to day happenings in the property and have to rely on tenants to update you on any problems that occur.
Here’s a few of the differences between home and landlord insurance;
- Home insurance only covers the owner/occupier if they are in need of alternative accommodation. Landlord insurance covers tenants in this situation.
- Landlord insurance can cover you for loss of rent.
- Landlord insurance can cover any legal costs needed as a result of your actions as a landlord.
Types of Landlord Insurance
Here, we provide a brief overview of the different types of landlord insurance available;
Landlord Buildings Insurance
Buildings insurance covers any damage caused to the building itself. This could mean damage from fire, flooding or even malicious damage caused by the occupants. Every insurance provider is different, so you’ll have to check which type of damage this covers.
We highly recommend getting buildings insurance, especially if you are the freeholder.
Landlord Contents Insurance
Contents insurance protects against loss or damage of goods and furniture within a property. So, if you are renting a furnished property, it could be a good idea. However, this type of insurance does not protect against normal wear and tear.
Different insurance plans offer various cover and allow you to insure different parts of your property. For example, communal areas in flats or shared accommodation. It won’t protect items belonging to tenants.
Accidental Damage Insurance
Accidental damage insurance comes under contents insurance and can cover the cost of anything from spills and stains to broken windows.
Landlord Rent Guarantee Insurance
Otherwise known as rental protection insurance or loss of rent insurance, this type of cover protects you if you are unable to rent out your property as a result of an insured event like a fire or flood.
Tenant Default Insurance
Tenant default insurance covers you if your tenant fails to pay rent for two months, covering the cost for up to eight months. You will need to conduct the proper credit checks at the start of the tenancy to be eligible.
Commercial Landlord Insurance
If you let to a third-party business, you will need commercial landlord insurance. Commercial buildings have different designs and purposes, meaning there are different risks attached.
Commercial landlord insurance can cover accidental damage, vandalism and rental income protection.
Landlord Liability Insurance
Also referred to as property owner’s liability cover, this type of insurance covers legal defence costs and expenses in the event your tenant has an accident and considers it your fault.
With this type of insurance, you’re looking at high limits, usually upwards of £1 million.
Legal Expenses Insurance
This covers legal expenses such as court costs when chasing up late tenant payments and gives you access to legal expertise.
Employers’ Liability Insurance
If you employ anyone else to work at one of your rental properties, say as a gardener or cleaner, you are required by law to have this insurance. Employers’ liability covers legal defence costs and awards made for any injuries, accidents or illness as a result of your negligence.
HMO Landlord Insurance
If you rent out an HMO property, the terms of your insurance cover will differ slightly from single occupancy homes.
Finding an insurance plan tailored to HMO properties could help you get the protection you need.
Alternative Accommodation Insurance
If your property becomes uninhabitable due to an insured event and the tenancy agreement requires you to provide alternative accommodation for your tenants, this type of insurance is a good idea.
Unoccupied Property Insurance
Unoccupied property cover can help during void periods or if you need to make renovations to your property. To qualify as unoccupied, a property usually has to be vacant for 30 days.
You will also need to arrange for regular vacant property inspections.
Multi-House Landlord Insurance
If you have several properties in your portfolio, it is probably worth taking out multi-property landlord insurance.
By including all of your properties on one policy, you could save money and time on paperwork and other processes.
Landlord Home Emergency Insurance
Boiler breakdown or serious leaks are a surprisingly common occurrence. Landlord home emergency insurance provides you with 24/7 access to emergency cover for plumbing, heating, power and security issues.
What Kind of Insurance do I Need for a Rental Property?
The type of insurance you’ll need depends on the type of property you rent and your specific needs as a landlord. We answer some common questions;
Do I Need Landlord Insurance If I Have Buildings Insurance?
In most cases, you will need to take out a specific insurance when renting out a property in addition to your home buildings insurance.
Some policies may allow you to amend your existing home buildings insurance to cover your activities as a landlord, however you may also want to take out extra insurance to cover all bases.
Do I Need Landlord Insurance if Renting to Family?
Yes. It is just as important to have insurance when renting to family members. You will need to draw up a tenancy agreement for legal purposes, even if it’s just a casual arrangement.
Renting to offspring or siblings may feel informal, but if they are paying you rent, you are legally regarded as their landlord and standard home insurance won’t cover you.
Do I Need Landlord Insurance If I Live in the Property?
Even if you live in the property, standard home insurance won’t protect you. Make sure you tell your lender that you live in the rental property when you take out the insurance. Again, you will need a tenancy agreement in place.
Do I Need Landlord Insurance for a Flat?
Renting out a flat is the same as renting a house when it comes to insurance.
The only difference with renting a flat is that you may not need buildings insurance if there is a freeholder arranging this. Be sure to inform them that you are renting out your flat so they can make any adjustments to their insurance policy.
Do I Need Landlord Insurance if Renting a Room?
Again, standard home insurance is unlikely to be valid when renting out a room in the same property you live in.
If you have a lodger, you will need a tenancy agreement in place for your landlord insurance policy.
What Does Landlord Insurance Cover?
Landlord insurance can cover a variety of different risks and situations, depending on your needs. The basics are buildings and contents cover, but you can add extra policies as you see fit.
We answer some common questions about landlord insurance cover;
Does Landlord Insurance Cover Accidental Damage?
Yes. If you want your insurance policy to cover accidental damage such as dodgy DIY or carpet stains, opt for accidental damage insurance to protect your property.
Does Landlord Insurance Cover Appliances?
Yes. Contents insurance covers white goods and appliances provided by you in the rental property.
Does Landlord Insurance Cover Tenant Injury?
Yes. To protect yourself against legal claims made by tenants, landlord liability insurance will provide legal defence costs and expenses.
Does Landlord Insurance Cover Unpaid Rent?
Yes. Tenant default insurance covers you if your tenant fails to pay rent for two consecutive months.
How Does Landlord Insurance Work?
Your first step in purchasing landlord insurance is to decide what type of cover you need. It’s possible to find a tailored policy suited to your individual needs and requirements. Whether you opt for basic cover (building, contents and liability) or go for comprehensive cover, make sure you read the fine print to find out exactly what’s included.
What is Sum Insured?
The sum insured is the amount an insurer will pay out for a claim. The higher the value of your rental property, the larger this amount will be. Make sure the sum insured is enough to rebuild your property, rather than focusing on its market value.
Calculating your rebuild cost accurately will ensure you don’t overpay for your insurance. There are online rebuilding cost calculators to help, although keep in mind, this will only provide you with an estimate rather than exact values.
Levels of Excess
You will also need to think about the amount of excess you are able to pay if you need to make a claim. Higher excess reduces the cost of your insurance and different claims can come with different levels of excess.
Be Prepared
Before you buy you will need to know;
- Your rental property’s rebuild value
- The level of excess you can pay
- What type of cover you need
How to Claim Landlord Insurance
If you ever need to make a claim, make sure you do so as soon as possible. You will need to provide as much evidence as you can to get the best pay-out. This could include receipts, invoices and photographic evidence.
How Much Does Landlord Insurance Cost?
The cost of your landlord insurance will be dependent on a variety of different factors;
- Location – Local crime rates and the probability of severe weather in a certain area will affect the cost of your insurance.
- Type of tenants – Students, tenants with pets and those on housing benefits are deemed more of a risk by some insurers, meaning higher insurance costs.
- Size of property – More tenants means higher costs.
- Number of properties – Naturally, more properties mean more costs. Look for an insurer who offers portfolio property discounts.
- Sums insured – Your insurance will cost more the larger your sums insured
Which is the Best Landlord Insurance?
To compare landlord insurance and get a landlord insurance quote, there are plenty of price comparison sites to reference.
Here are some popular landlord insurance providers;
- AXA Landlord Insurance
- Aviva Landlord Insurance
- CIA Landlord Insurance
- SAGA Landlord Insurance
- Direct Line Landlord Insurance
- Hamilton Fraser Total Landlord Insurance
Makes sure you shop around and do your research to get the best deal for you.
Protect Your Investment with No Letting Go
We understand the importance of protecting your rental property for the long-term success of your business.
A detailed property inventory is one of the best ways to secure your property by providing the critical evidence you need to recuperate costs. Find out more about our professional, unbiased property inventory service to get started.
If you’re weighing up the pros and cons of providing a furnished or partly furnished property for prospective tenants, you’ve come to the right place.
Letting a furnished property has plenty of benefits, including quality tenants and longer tenancies. However, furnishing your property can get expensive and cause issues down the line if not done properly.
Here, we discuss how to furnish a rental property with tips and tricks on making the most of your portfolio.
What’s the Difference Between Fully Furnished and Partly Furnished?
Let’s clear this up before we get started.
Furnished
Usually, a furnished property will come with essential electrical appliances, white goods and basic furniture. In short, everything a tenant needs to move in straight away.
Partly Furnished
A partly furnished property will only include white goods, lighting and essentials such as curtains and kitchen cabinets. It may also include some other furniture items at the discretion of the landlord or letting agent.
Unfurnished
An unfurnished property will come with only the very basics- light fittings, carpets and essential appliances such as an oven.
Should you Furnish Your Rental Property?
Furnished or unfurnished? It’s a tricky question. While renting unfurnished properties may seem like the easy option, providing a furnished property comes with attractive benefits;
You Can Charge Higher Rent
A well-furnished property may affect the amount of rent you can charge.
With a lack of quality, furnished properties on the rental market, tenants searching for a ready-made home are prepared to pay a little more for the convenience.
Good quality furnishings that make your property look welcoming will attract tenants and help your property stand out.
Attract the Right Tenants
A well-furnished property will attract a wider pool of renters, allowing you to pick and choose to find the right tenant for you– whatever that might look like.
Secure Longer Tenancies
A home that feels well cared for and inviting will encourage tenants to stay longer term.
Who is Your Target Tenant?
The tenant group you’re targeting should be the biggest consideration when deciding whether to furnish your property. Well established families or older professionals are likely to have their own furniture they want to bring with them.
Whereas students or young professionals may be looking for convenience and a place they can move in straight away.
What Does a Landlord Have to Provide in a Furnished Flat?
When providing tenants with a furnished home, there are certain items they will expect to be included;
What to Include
A furnished property should include;
- White goods (oven, washing machine, fridge freezer etc.)
- Dining table and chairs
- Beds
- Sofas and chairs
- Wardrobes, chest of drawers and cupboards
- Light fittings
- Curtains
- Carpets
What Not to Include
However, there are a few items landlords are not expected to provide;
- Bed linen, duvets and pillows
- Cleaning supplies
Furnishing a Buy to Let Property: Top Tips
To make things easier for yourself at the end of the tenancy agreement, we have some tips and advice on how to furnish your rental property;
Choose Easy to Clean Furniture
Wear and tear is inevitable, but to keep your property in good condition, easy to clean appliances will encourage your tenants to keep things well maintained.
Avoid Decorations
When it comes to personal taste, we’re all different. Let your tenants choose the little details so they can feel at home. Similarly- neutral colours work best.
Choose Easy to Replace Items
This way, if things get broken, they can be replaced with a ‘like for like’ item without too much bother.
Replace Furnishings as Needed
Old, stained carpets will do nothing for your properties appeal. The Tenancy Deposit Scheme recommends replacing most items of furniture after 7 years.
Provide Basic Tools
Providing basic tools will encourage tenants to take care of minor issues themselves, taking one more thing off your plate.
Follow Safety Regulations
As a responsible landlord, you need to follow fire safety laws when it comes to soft furnishings.
Choosing the Right Furnishings
Let’s take a closer look at some of the types of furniture to include in your rental property, room by room.
Living Room Furniture
Basics to include:
- Sofa(s) or armchairs
- Coffee table
- Bookcase
- Carpet
- Lights
Best Sofas for Rental Properties
Here’s a few of our top picks of the best sofas to buy for your rental property:
This modern 2-seater sofa in a neutral grey will work well in slick apartments for young professionals and is pretty easy on the budget too!
A sofa bed is a big plus among tenants, and this one is great value for money. This simple, classic style will work well in most interiors and families will love the extra storage space.
The Quality 3-Seater
If you’re trying to attract professionals willing to pay high prices for the right home, a quality sofa is essential. This one comes from an esteemed brand and the elegant style will have mass appeal.
Kitchen/Dining Room Furniture
Basics to include:
- Kitchen cabinets
- Essential appliances (oven, washing machine, fridge freezer, toaster, kettle etc.)
- Table and chairs
Best Dining Tables for Rental Properties
A dining table is the hub of any home and getting the right one is important.
This handy piece of furniture features built in storage and a fold-out table design. Perfect when letting properties with small kitchens.
The Extendable Table
The simple, modern design of this table will fit neatly into any interior, and the extendable section can accommodate extra guests. It’s also budget-friendly!
Bedroom Furniture
Basics to include:
- Bed
- Mattress
- Wardrobe
- Chest of drawers
- Bedside table
- Carpet
- Lighting
Best Mattress for Rental Properties
A mattress is perhaps the most important piece of furniture for your rental property. A considerate investment, you need it to be durable and long lasting. Here’s our top picks;
The Affordable Memory Foam Mattress
This mattress from the Memory Foam Warehouse makes quality memory foam affordable. Starting at under £100, you’re unlikely to find anything cheaper.
Buying a mattress for your rental property is only half the battle. The next job is delivery. Opting for a bed in a box mattress means the mattress can be delivered straight to the property in a convenient sized box.
Once you’ve invested in a mattress, it makes sense to protect it. A mattress topper can prolong the life of a mattress and guard against stains to keep it looking fresh at the end of the tenancy. This memory foam mattress topper is a cheap but comfortable option.
Protecting Your Furnished Rental Property: Inventory Management
Once you’ve gone to the effort of furnishing your rental property, you need to ensure it’s protected.
The easiest way to do this is by investing in a comprehensive inventory report delivered by unbiased professionals. A property inventory helps guard your property and its contents against damage by providing full details of its condition at the start and end of a tenancy.
At No Letting Go, we provide landlords and property professionals with comprehensive services and reports to protect their investment and streamline processes. Browse our full list of inventory management services to find out how we can help.
Mould. The scourge of the rental property market. No matter how much effort you put into ventilating a property and keeping things dry, it somehow seems to find its way back again and again.
But whose responsibility is it to deal with mould in a rental property? And are tenants able to demand rent reductions for lingering mould?
We’re exploring this common problem to help landlords and tenants alike come to a happy solution. From prevention to deposit deductions, let’s look at landlords mould responsibility to get to the bottom of who is culpable and prevent disputes before they arise.
What is Damp and Mould?
Before we delve into who is responsible for dealing with mould in rented properties, let’s look at the different types of mould and its causes.
Rising Damp
Rising damp is the name given to the process of water rising up and into a building from the ground through bricks and mortar. All houses should have a layer of waterproof material called a ‘damp proof’ to prevent rising damp. However, when this fails, problems occur.
If this issue isn’t solved promptly, it can lead to mould forming that’s difficult to remove for good.
Penetrating Damp
Penetrating damp is caused by leaks that allow water into the property, causing surface mould growth. These leaks could come from broken roof tiles, blocked guttering or faulty plumbing.
The main thing to remember about penetrating damp is that it comes from outside the property and is usually a structural issue.
Condensation
Condensation happens when moisture in the air comes into contact with cold surfaces, leading to water droplets and mould growth. If a building is poorly insulated or the ventilation or heating system is faulty, then the condensation is considered a structural issue. However, condensation can also be caused by tenant’s lifestyle habits.
The Health Risks of Living with Mould
The Housing Health and Safety Rating (HHSR) dictates that damp is an essential repair as it can cause health issues for tenants.
Mould is a fungus which can trigger or exacerbate the following health problems;
- Difficulty breathing
- Irritation
- Allergic reactions
- Skin rashes
- Asthma attacks
Not only is mould detrimental to physical health, it can also have an impact on tenant’s sense of wellbeing. This is why it’s so important for landlords to deal with mould swiftly and efficiently.
Is Mould the Landlord’s Responsibility?
With regards to mould, when fingers are pointed, things can get complicated.
Legally, rising damp or penetrative damp caused by structural leakage is the landlord’s responsibility to put right. Under section 11 of the Landlord and Tenant Act 1985, it is the landlord’s responsibility to resolve mould issues caused by structural faults.
However, when interior condensation is caused by the tenant, this shifts the responsibility.
Condensation can be caused by;
- Drying clothes indoors
- Showering and not opening the window
- Cooking without opening the window
- Not heating the property sufficiently
Determining whether mould in a property is due to the tenant’s lifestyle habits or the poor ventilation of the property can be tricky.
First Steps When Mould Is Spotted
If you’re a tenant whose spotted mould anywhere within your rental property, you need to alert your landlord straight away. Describe where the mould is and any damage to furniture or belongings. Once the problem has been reported, the landlord has to respond within 14 days.
For landlords, when a tenant reports mould in the property, arrange an inspection to determine the cause of the mould and, where necessary, ensure repairs are made.
Once a damp problem has been resolved, you may also need to repair any damaged plaster or flooring and redecorate affected areas.
If you don’t respond within the two-week timeframe the tenant could contact the local authority who could force the issue through. That’s why it’s vital to arrange an inspection and repairs as soon as possible.
Can I Withhold Rent for Mould?
If your landlord refuses to make repairs, withholding rent can be risky. Technically, tenants do not have the right to withhold rent and could be subject to repossession or even eviction.
However, tenants do have the right to make the repairs themselves and make up the cost in future rent. If you decide to go down this route, you need to be certain that the repairs needed are the responsibility of the landlord. Be sure to seek legal advice before making this stance and follow the correct procedures.
Can a Landlord Deduct Deposit for Mould?
If there is mould in a property at the end of a tenancy which was not there at the start, landlords have a right to deduct money from the deposit only if the mould was caused by the actions of the tenant.
The amount deducted is at the discretion of the landlord, and will take into consideration any repairs or redecoration needed above the level of fair wear and tear.
Is Mould Considered Normal Wear and Tear?
Whether mould is considered to be fair wear and tear depends on the cause. If there is evidence to show that the mould has been caused by the negligence of the tenants and advice and regular maintenance has been supplied by the landlord or letting agent, then compensation can be claimed.
Can I End My Tenancy Early Due to Mould?
If you’re a tenant who has found themselves in a mouldy property with an inefficient landlord, there are steps you can take.
If your tenancy agreement has a break clause, then you may be able to end the tenancy early. However, if not, contact your local authority who will perform an inspection to determine whether the landlord is culpable of negligence. If so, they will issue a notice to the landlord demanding repairs.
From a landlord’s perspective, if you attempt to evict your tenant without fixing a reported mould problem within six months of it being reported, this could invalidate a Section 21 notice.
Condensation and Mould: Advice for Tenants
If you’re a tenant living in a rental property, there are some simple ways to prevent mould;
- Dry clothes outside when possible or keep them in the bathroom with the doors closed and windows open
- Cover pans with lids when cooking to prevent excess steam escaping
- Close the kitchen and bathroom door when in use
- Use a bath mat to soak up excess water
- Turn on the extractor fan when cooking or bathing
- Leave a gap between furniture and external walls
- Air out cupboards and wardrobes regularly
- Turn on the heating regularly and try to keep the house a consistent temperature
Preventing Mould: Advice for Landlords
Minimising the chances of mould growing at the start of a tenancy agreement could save you money on maintenance in the long run.
Here are some ways to prevent mould in your property;
- Ensure the property is well ventilated
- Maintain gutters and roofs to prevent leaks
- Ensure all plumbing is in good working order
- Repair any rotten window frames
- Improve the insulation of the property
- Install extractor fans in the bathrooms
- Repair or replace faulty damp proof course
Avoid Disputes with a Comprehensive Property Inventory
In cases where it’s difficult to determine the responsibility for mould, a detailed property inventory could help.
Prevent disputes before they can occur by investing in a professional, unbiased inventory report. By providing detailed written and photographic evidence of the state of the property, this report helps landlords and tenants alike by proving responsibility and supporting claims.
At No Letting Go, our team of experienced inventory clerks are well versed in helping landlords and property professionals streamline their workload and comply with regulations.
Whether you’re a landlord looking to recover costs against mould damage, or a tenant leaving a rental property, browse our full list of property services to find out how we can help.
The Equalities and Human Rights Commission have recently revealed that 93% out of 8.5 million rental homes in the UK are not fit for disabled access, leaving at least 365,000 disabled people in unsuitable accommodation.
There is a pressing need for more accessible rental properties across the UK and the government is cracking down on landlords who do not make the necessary changes. However, this does mean that there is a large number of disabled tenants looking for appropriate housing.
From entry ramps to chair lifts, there are many ways to adapt a property for disabled access. Adapting a home and renting to disabled tenants could even open your property up to a wider range of potential renters.
Here, we look at ways to adapt your rental property so you can welcome a new target tenant group to your portfolio.
UK Rights for Disabled Tenants
Before you start thinking about adapting your property, it’s important to be aware of disabled people’s rights in the UK.
The Equality Act 2010 set out ways to protect people in society, including the rental sector.
According to the Act, a person has a disability if;
- The person has a physical or mental impairment, and
- This impairment has a substantial, long-term effect on their ability to carry out day-to-day activities.
Now, let’s look at your responsibilities as a property professional.
Laws for Private Landlords and Letting Agents
It is against the law for a landlord to discriminate against a disabled tenant. For example, as a landlord, letting or estate agent it is illegal to;
- Refuse to rent to a disabled person because of their disability
- Refuse to allow a guide dog or assistance dog under the no pets rule
- Charge higher rent or deposit to disabled tenants
- Refuse access to additional facilities that are available to other tenants (e.g. laundry room or parking space)
- Evict a tenant due to disability or illness
- Give tenants a less secure tenancy agreement
If a tenant feels they are being discriminated against, they could talk to Citizens advice or the EHRC and you could experience serious repercussions.
Landlord Responsibilities when Renting to Disabled Tenants
When renting to a disabled tenant, you are responsible for providing necessary, reasonable adaptations to make your property accessible and suitable to their individual needs. This can include additional services or equipment known as ‘auxiliary aids’.
Auxiliary aids can include;
- Wheelchair ramps
- Written documents and signs in Braille
- Accessible door handles
- Accessible taps
- Special furnishings (e.g. raised toilet seat)
Refusing these changes could mean you’re breaking the law.
How to Adapt Your Property for Disabled Tenants
When renting to a disabled tenant, it’s likely you will need to make some changes to your property in order to make it accessible. These changes very much depend on the individual needs and requirements of the tenant.
Here are some of the ways you may be required to alter your rental property;
Installing Access Ramps
If your tenant uses a wheelchair or mobility scooter and your property has steps up to the entrance or between rooms, you may need to install access ramps at entrances.
Installing Chair Lifts and Railings
For multi-story homes, chair lifts and railings may be required for less able tenants. Railings may also be needed in bathrooms.
Fitting Accessible Kitchen and Bathroom Facilities
Wheelchair users may need lower kitchen and bathroom facilities which are accessible at chair height. Bathrooms may require a wet room and accessible toilets.
Widening Doors
Doors and entrance ways may need to be widened to allow for safe wheelchair access. (Usually 750mm)
Raised Plugs and Features
Features such as plugs and light fixtures will need to be accessible to your tenant(s).
Ground Floor Level Access
Some disabled tenants will require ground floor level access. You will need to provide a bathroom, bedroom and kitchen at ground level.
Unrestricted Parking
Your tenant may need access to a parking space which is easily accessible from the property.
Written Signs and Documents in Braille
Visually impaired tenants may require all tenancy documents and signs throughout the home to be provided in Braille. This includes features such as fire safety notices. Tenants with learning disabilities may ask for documents provided in alternative formats.
Covering the Costs of Adapting a Property
You may be thinking about the cost of these changes and how you’re going to cover them.
It’s true that some of these adaptations involve significant work, costing around £20,000 to adapt a standard property.
However, there are ways to help cover the costs;
Disabled Facilities Grants (DFG)
Landlords and tenant alike can apply for a disabled facilities grant which provides funds for adaptations. This grant is supplied by the local council and is subject to an eligibility test where an occupational therapist will assess the property and the adaptations needed before making a decision.
The amount you receive depends on the changes needed, but sums of up to £25,000 can be granted.
To apply, contact your local council.
Remember, if you fail to make the necessary changes, it could cost you a whole lot more in legal costs if the case goes to court!
A Helping Hand from No Letting Go
While this information may appear daunting at first, No Letting Go are on hand to help;
- For example, our 360 Virtual Tour and Photography service allows potential tenants to view your property from any location- solving accessibility issues for many disabled tenants.
- Providing a safe, comfortable and accessible home is particularly important when renting to disabled tenants. All of our property services are designed to streamline your workload and ensure your property is fully compliant with current health, safety and legal regulations.
- Once you’ve made these adaptations to your rental property, it’s important to protect your investment. Our professional inventory service helps to safeguard your property by providing evidence of the condition of your property at the start and end of the tenancy.
Discover the rest of our property management services to find out how we could help.
Ending a tenancy can be awkward for both tenants and property professionals. Dealing with tenancy deposit returns, outstanding rent and resolving disputes can take time and a lot of effort. So, how can tenants and landlords alike ensure the end of tenancy goes smoothly?
No Letting Go’s chief operations officer, Lisa Williamson recently joined Richard Blanco on his podcast ‘Inside Property’ to discuss the types of issues that can arise and how to resolve them through unbiased, end of tenancy services.
Lisa was joined by Suzy Hershman, head of dispute resolution at My Deposits, and Al McClenahan, the director of Justice4Tenants to get a full picture from all sides of the story.
Here is a roundup of the key insights that came out of the programme;
Start as You Mean to End
Lisa’s top tip on ending a tenancy well is to determine a clear position from the start. The way to do this is through a well thought out inventory including detailed but concise information, clear photographs and a comprehensive list of contents and condition.
Creating a tenancy format which is easy to read by both parties is essential for avoiding confusion at the end of the tenancy.
Another tip for landlords from Lisa is to ensure that tenants sign the inventory report to avoid deduction disputes during check out.
An Unbiased Outlook is Key
One question that arose in the podcast was whether landlords should create their own inventory reports.
While it’s completely fair for a landlord to perform their own survey, they run the risk of using emotional language which can be interpreted in different ways.
This is where an independent inventory service can resolve issues. No Letting Go inventory reports include a glossary of terms to determine the condition and cleanliness of items in the property. For example, rather than a landlord using the word ‘immaculate’ to describe a piece of furniture which could come across as biased or open to interpretation, instead ‘professionally clean’ is a clearly explained term in the NLG glossary.
Another benefit of using a professional, unbiased property inventory service is that in the case of a dispute over deposit returns, judicators can clearly understand the benchmarks.
Are Pre-Check Out Meetings A Good Idea?
As an active landlord himself, Richard highlighted the benefit of arranging pre-check out meetings with tenants to go over what is expected of them during the moving out process.
This all sounds well and good, but the question is, who will pay for it? Landlords and tenants may be reluctant to fork out this extra cost, but it could save money further down the line.
Alternatively, providing tenants with an end of tenancy letter detailing all the tasks that need to be completed before moving out is a great way to prevent confusion over where responsibilities lie. This can include the date and time of the key handover and what needs to be cleaned.
End of Tenancy Property Cleaning
As the head of dispute resolution at My Deposit, Suzie Hershman has a lot of experience dealing with the common issues affecting landlords and tenants during the checkout process.
According to Suzie, cleaning comes top of the list when it comes to end of tenancy disputes.
The resolution is simple. Start with an inventory report which plainly states the condition of the property and how it is expected to be maintained. For example, if the property has a garden, the inventory needs to clearly state that the grass needs to be cut or the paving de-weeded and power washed before leaving the property.
Other issues that can arise include whose responsibility it is for window cleaning and whether professional carpet cleaning needs to be undertaken.
The main rule of thumb for tenants, is that the property needs to be returned in the original state as at the start of the tenancy. This may involve hiring an end of tenancy cleaning service (make sure you keep the receipt as evidence) or giving the property a thorough clean yourself. Either way, ensure you leave on the last day of your tenancy confident everything looks the same as it did when you moved in!
Fair wear and tear can be a bit of a grey area when it comes to cleaning. Suzie recommends that landlords should think of the items in their property as having a lifespan. A carpet or decor has an average lifespan of 5 years, which needs to be taken into consideration during the checkout report.
Managing the Landlord-Tenant Relationship
According to Al from Justice4Tenants, the main reason for the breakdown of the landlord- tenant relationship at the end of a tenancy is disputes over deposit deductions.
Al attributed this to poor inventories which leave too much room for interpretation and miscommunication, which is more common when landlords create their own.
Another common reason for strained relationships is when tenants are in arrears at the end of the tenancy agreement. To minimise conflict, Al recommends that tenants are as open and communicative with their landlord about their financial difficulties to help landlords remain understanding until the issue can be resolved.
However, when landlords view their role purely from an investment perspective and ignore the human side of the relationship, this is when disputes are likely to arise. The lesson? Landlords who are more understanding and willing to negotiate are likely to have better relationships with their tenants, resulting in a smoother parting.
How Will the Letting Agency Fee Ban Effect End of Tenancy?
There has been much discussion over what changes the letting agency fee ban will bring to the industry. However, for now, Lisa doesn’t see much change to the way check out reports will be processed.
Currently, landlords usually pay for the inventory, and for either check-in or check-out services while the tenant pays for the other. This means there is only one cost that needs to be recuperated by landlords.
According to Lisa, most landlords and tenants can see the advantages of having these services managed by independent professionals.
Unbiased End of Tenancy Services from No Letting Go
To ensure the end of a tenancy goes as smoothly as possible and you retain a positive relationship throughout, using an independent property service can help resolve issues and disputes before they arise.
No Letting Go provides all the documentation needed at the start and end of a tenancy to determine how much money is deducted from the deposit. Using the latest technology, No Letting Go can advise against fair wear and tear and create reports to ensure you are fully compliant with regulations.
To see the full list of services on offer, head to the No Letting Go services page.