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Do longer term lets work for both the tenant and the landlord?

Fri, 24 May 2013 10:29:28 +0000

Do longer term lets work for both the tenant and the landlord?

Since reading a recent survey by Shelter of 4,327 adults living in the private-rental sector in England, which revealed that 44% thought their children would have a better childhood if they had more stability in their housing arrangements, it got us thinking- should landlords be offering long-term tenancy? Most landlords typically only offer shorter rental contracts of a year.

Shelter wants to see the introduction of a "stable rental contract" to give renters a better deal. It would give renters five years in their home during which they could not be evicted without good reason and would have a guarantee the rent would rise by no more than inflation. It would also give renters the chance to decorate their homes and allow them to end the contract with two months' notice, while giving landlords the right to end the tenancy if they sold the property.

Will this actually help landlords build mutually lucrative links with the family market and steer us towards the European market model of longer term tenancies- or put off a generation of tenants who enjoy the flexibilty of a yearly contract?

If you could choose your HMO area again...

Fri, 24 May 2013 10:04:04 +0000

Which area would you choose? and Why?

It would be good to find out how many of the 'tribsters' are happy with there existing area of business

Thanks

Video highlights from the Guild of Letting & Management Conference

Fri, 24 May 2013 08:10:18 +0000

On 16th May, I was asked to speak on the topic of letting agents and the social web at the Guild of Letting & Management Conference 2013 at the Emirates Stadium in London.

Vanessa was also asked to be their in-house Presenter to present this short highlights report, which we are posting here with kind permission of the Guild of Letting.

It was an excellent day out with some hard-hitting presentations that gave delegates a lot to think about and implement in their businesses.

Property Tribes Landlords United! event on 22nd June is also using Emirates Stadium as our venue with 3 stadium tours to be raffled at the end. Find out more details >>> here.

Related content:

Austerity? You ain't seen nothing yet says Guild of Letting economist.

HMO finance

Fri, 24 May 2013 06:27:18 +0000

Hi,
I have a main residential house in Liverpool currently with a regular residential mortgage (£200K remaining) which I want to turn into a HMO with 7 double bedrooms ranging from 12m2 to 17m2. Approx £80 - 90 per week per room.

Please advise on the best method of finance for HMO??
Sole trader or Limited company

Any advice would be much appreciated.

Helena

Deposit protection up - along with deposit values

Thu, 23 May 2013 17:35:09 +0000

You may have seen some interesting stats published by the government last week showing the continued increase in the number of deposits protected, and of their value. This is a reflection on the continued growth of the market.

Here's a copy of the article which TDS CEO Steve Harriott posted earlier this week. (http://blog.tds.gb.com/blog/deposit-prot...it-values/ )

"Data just released by the Government shows the continuing success of tenancy deposit protection in England and Wales with the three approved schemes showing an increase in deposits protected to a total of 2,659,301 at 31 March 2013: an increase of 284,916 from a year earlier. This seems to reflect both the continuing growth in the number of homes privately rented in England and Wales and also the increasing attention being paid by the media and interest groups on tenancy deposits and other lettings issues. In addition the amendments to the legislation in the 2012 Localism Act closed some loopholes in the legislation and also raised the profile of deposit protection. However there are continuing reports that a small minority of landlords and agents are not fully complying with the requirement to protect deposits within 30 days of their receipt.

In terms of deposits themselves there is evidence that in 2012-13 the average value of deposits (both custodial and insurance backed) taken in England and Wales has increased with the average deposit now worth £992 (with deposits held by the Tenancy Deposit Scheme slightly higher at £1,149). In Scotland (where custodial deposit protection was introduced in July 2012) average deposit values are lower at £671 and in the first month of the new Tenancy Deposit Scheme in Northern Ireland the deposits taken by the Scheme (both custodial and insurance backed) have averaged £558. This disparity in deposit values across the UK reflects the differential rent levels across the UK with deposits typically being between 4-6 weeks rent.

TDS will continue to publish deposits data on an on-going basis to show how these values change. The chart below shows that following a big fall in average deposit values in April 2010 deposit values have increased with a further increase over the last 12 months from £979 to £992 over 12 months. Deposit values are clearly linked to rent levels and as rent levels increase new deposits will reflect this with the average deposit value set to increase further over 2013-14.

Steve Harriott, CEO, Tenancy Deposit Scheme"

Anyone used this website (Rentify) ?

Thu, 23 May 2013 15:32:13 +0000

Came across http://www.Rentify.com when I was looking for the likes of Upad.

Headline: They let you advertise your property on some of the big portals for free (or rather that's what I have understood from the website)

I would be interested to see if anyone else has used them so far and what you think of them?

I have put one of my properties on and wait to see what kind of service I get..

Landlords United! A new event powered by Property Tribes & Assetz Capital

Thu, 23 May 2013 14:45:31 +0000

Property Tribes in association with Assetz Capital is delighted to announce a new kind of event to support landlords in their property businesses.

Landlords United!

Date: Saturday 22nd June

Location: Emirates Stadium, London

Landlords and the private rented sector are facing huge challenges throughout 2013. We recognise that "none of us is as smart as all of us" and that Landlords are stronger together, so we're creating this meeting of like minds to share experiences and views on how to survive the coming challenges.

This unique event will bring together some of the top property minds in the U.K. – You! Everyone has something to contribute and share. The discussion will be hosted by Assetz and Property Tribes with the intention of delivering high quality opinion and networking where landlords support landlords, and everyone can have their say.

Our expert panel (names to be advised shortly) will be on hand to guide and input thought leadership to help equip you for the year ahead.

If you are a new investor, you're just as welcome and will get a real feel of the marketplace and where opportunity lies.

You'll leave the event refreshed, inspired, and energised because Landlords United! is a support network to take with you into your business and it's also the winning team.

All delegates will enter a draw to win a free stadium tour. There are 3 up for grabs!

Date : Saturday 22nd June 2013

Location: Emirates Stadium, North London (nearest tube: Holloway Road).

Price : £15

Further details of the programme >>> here.

Book your ticket >>> here.

We hope to welcome many Property Tribes members to this event, and to put a face to the avatars!

Motivated Seller Leads

Thu, 23 May 2013 14:09:42 +0000

Hi Guys,

I am looking for a buyer for my Scottish Property Leads.

Our site generates motivated seller leads for Scotland which is an area we do not cover.

Please let me know if you want more information.

Cheers,

Michael

Aldermore to lend in Scotland

Thu, 23 May 2013 12:05:06 +0000

Not sure if it was already discussed in the finance tribe already, so apologies if it was. A good news for many of landlords in Scotland - Aldermore is about to start lending for properties located here. I hope other big players will follow them soon and we will have much broader range of mortgages available!

Evening Standard investigation claims agents are favouring BTL investors!

Thu, 23 May 2013 11:41:37 +0000

The Evening Standard has today claimed that, as average rents in the capital reach a record high, an Evening Standard investigation reveals estate agents are targeting wealthy investors — leaving ordinary home buyers out in the cold.

The report centres about a whistleblower from Winkworths Estate Agents who claims that staff were advised to target investors above first time buyers, and offer them incentives such as reduced fees to let and manage the property.

The most useful service they provide for investors, though, was “off-the- record” calls to give them a head start when a property hadn’t yet been listed. Timing is everything in a market characterised by scarce supply and plenty of overseas interest with ready money and lawyers in tow.

The law states that “you must not discriminate, or threaten to discriminate, against a prospective buyer of the seller’s property because that person declines to accept that you will (directly or indirectly) provide related services to them”, and says discrimination includes “giving details of properties for sale first to those who have indicated they are prepared to let you provide services to them”.

This story highlights the strong demand for property in London and the fact that some agents claim to offer off-market deals, which in fact is illegal.

No doubt it will fuel another anti-landlord boom into the bargain.

Department of Work & Pensions launch Universal Credit Guide.

Thu, 23 May 2013 11:20:12 +0000

The guide is an introduction to Universal Credit to help partner organisations prepare future claimants for the changes that Universal Credit will bring.

Download the guide

Related discussions about Universal Credit:

Universal Credit - updates about direct payments

Universal Credit? I can't wait!

leasehold or share of freehold

Thu, 23 May 2013 08:02:20 +0000

Hi,

I've got a weird case (I think).

Just done an offer on a flat in central London, and has been accepted.

The Estate Agent come back to me saying that the owner doesnt know if the flat is a leasehold (125 from 1985 maybe!) or he took advantage of the "share of freehold" opportunity, so having 999years from 1985.

The weird thing (to me) is that neither the management company or the solicitor's seller can confirm is is leasehold or share of F.

Do you know ow is possible find this out?

Asked my solicitor via email last night, but cannot wait to know (and share this too!!).

thanks
Zio

DPS Driving Me Mad

Wed, 22 May 2013 17:29:02 +0000

Is anyone else having problems with the Deposit Protection Service (run by Computershare)? I am trying to protect a deposit in their new insured scheme but have been trying all afternoon to pay the fee, the payment system is just creating error messages and I have spoken to four (or is it five) separate call centre staff who appear clueless as to how to help me. Now they have all gone home and the call centre is closed!!

Landlord of 50 years shares his words of wisdom.

Wed, 22 May 2013 16:29:06 +0000

It was such a privilege to meet Harry Oatten recently.

Harry is 80 years young and has been a landlord for 50 years!

Despite that, he regularly attends events to keep his knowledge up to date.

What a wonderful example to us all!

8 signs you are about to become a victim of a property investment scam.

Wed, 22 May 2013 16:06:10 +0000

I am posting this after learning that some friends of mine have been conned after signing up for a product they learned about through a property webinar on FaceBook.

In a world where event hosts & webinar hosts do not feel the need to do due diligence on speakers or offerings, scams and con men thrive.

This means you need to be alert!

Here are 8 warning signs to watch for a scam:

1. You are invited to a webinar about an exciting business opportunity.

> Find out if the webinar host is investing in the opportunity themselves or if they are just on commission. Do intense due diligence on the people behind the offering to find out their track record. DueDil is a free tool to check companies and individual's names with.

2. Poor spelling and grammar and a tin-pot website.

> Self explanatory. No professional organisation would allow this.

3. Approaches through FACEbook to attend webinars/seminars/etc.

According to Hoax-Slayer, scammers are increasingly using Facebook as a means of connecting with potential victims.

It's easy to get lulled into a false sense of security, as Facebook often seems like a private and secure part of the Internet where one meets up with friends and family and mostly keeps tabs on their personal matters. But, it's not, and every user would do well to remember it. Others "liking" posts often gives a false sense of social proof & trust where it is not earned or warranted.

> Self explanatory.

4. Urgency

> Scammers often push victims to sign up there and then with threats that you will miss out or the limited offer will end.

5. No risk guarantee.

> Scammers will say anything to get your money. But try getting it back once they have it!

6. You are asked to pay large fees upfront to secure your product/service/course/seminar/deal/portfolio etc etc.

> You should only pay for results, not promises.

7. Claims of you are going to make a lot of money, quickly, for little effort.

The speaker will use images of his/her prestige cars, holidays, and big houses to make you believe that they are a huge success when in reality they may not even own their own home and the prestige car is leased.

> Do not be lulled into a false sense of security by "big talk". Use DueDil to investigate the claims being made before parting with any money.

8. If it looks too good to be true, it is, every time, without fail.

> This is a cliche for a reason. Don't go against reality.

Sorry to be the bearer of bad news, but there are no easy ways to make quick big money other than inheriting it, marrying into it, criminal activities, or winning the lottery.

If you believe you have been the victim of property investment fraud, you should contact Action Fraud.

Related discussions:

Tribes guide to avoid becoming property shark bait

Fear and greed in the context of property

Anti Due Diligence

Due diligence regime

Investor in a rush gets conned

working out the cost of buying back the freehold

Wed, 22 May 2013 14:04:06 +0000

There is a calculator online that works out the value of a freehold.

http://www.freeholdcalculator.com/calc.php

The property that I am interested in has a 992 year lease, the ground rents are £1 pa and the value of the property is £60k.

There are 2 flats in the block.

According to the calculator the freehold is worth £17.

Now how much will the legal fees be?

Distress Sale

Wed, 22 May 2013 11:12:02 +0000

Hi

I was wondering if I can do anything about a distressed sale my mother went through.
My step father and her had a £40000 repayment mortgage with the Abbey. He died and she couldn't keep up the payments she sold it to a chap who shall remain nameless. He paid off the £40000 pluse debt secured to the property around £60000. He told her once he had refurbished The property she could move back in and rent it but funnily enough he didn't let her and he sold the property. The property at the time was valued at £140000. My mother is vulnerable and there maybe no paper work I will be able to provide for this. This also happened about 8 year ago.

Does she have a case?

Thanks in advance

Danielle

disagreement over the utility bill split

Wed, 22 May 2013 10:54:07 +0000

Hi Guys
I am looking for a bit of advise on a bit of a sticky utility/ service charge issue.

My sister and I own 1 flat in a block of about 30 flats. These were converted from some sort of old peoples home a few years ago, and have individual leases now, and most if not all the units were re-furbished.

For the last 2 years, all seemed well, decent letting agent, management company seemed reasonably on the ball, so no need to be worried.....

BUT....

During those refurbishments, it would seem that the system that logs individual usages of gas, (not sure about electric) has been damaged, and is very expensive to repair/ replace. It is also unclear who actually damaged this system.

So recently the managing agent e mails the owners to inform us that the only way to split the bills is by sq ft, and has been issuing bills on that basis. These have been forwarded to the tenants. The tenants are generally refusing to pay as they contest that some people are there all day and some just at night etc. There are now very large bills outstanding, and threats of being cut off are being banded about.

The water bill has just arrived and though there are some meter readings for this, again collections from tenants has been slack and therefore some tenants are facing large bills.

I should mention these units rent for £550 per month, so not generally to people with large incomes, that can easily manage unforeseen, or at least rolled up utility bills.

The managing agent is also struggling to collect all the service charges, so their cash flow is almost exhausted, which is kind of annoying to me as I have paid in full for the year.

So this is indeed a bit of a mess, and my question is has anyone faced, dealt with such a problem and is there any precedent, or advise you can give us as to how to proceed.

All replies gratefully received.

James

Costs (Approx).

Wed, 22 May 2013 09:58:30 +0000

Having recently been made redundant I am looking to property development over the next ten years to build additional funds for retirement. I was wondering if anybody could give me some approximate figures for refurbishment of 2/3 bedroom bungalows for the following items. Plumbing, electrics, widows and doors (PVC), new walls, plastering,tiling and kitchens etc. Also legal costs involved in buying and selling along with any taxation involved. Any help would be greatly appreciated. Thanks in anticipation !

ITV "Tonight" programme looking for tenants moving into new home.

Wed, 22 May 2013 09:42:55 +0000

The ITV "Tonight" programme has contacted me to reach out to landlords who may be able to help find contributors to their new documentary to be broadcast this Summer.

They are are looking for people moving into new homes, who, with the help of their expert and a bit of imagination, can furnish their dream home on a shoestring.

'Someone’s trash is another person’s treasure' really is the motto here and as part of the programme they’ll be highlighting how effective reusing items can be - especially on our pockets!

So if you know anyone who might fit the bill, then please do get in touch on 0161 952 1082 or at Claire.Archer@ITV.com.