Rest Assured with Rent Assured

Times are tough for tenants and sometimes they stretch themselves to take on a property which in reality they will struggle to afford. While on paper they earn enough to pass referencing, the cost of living is ever increasing and they can find themselves stretched too thin.

As a landlord this is the last thing you want to hear, you rent your property in good faith on the understanding that the tenants will pay in full and on time every month and in most cases this is what happens. However how can you ensure that if the tenants run in to difficulties you are not financially affected.

With a Rent Assured management package, the rent will get paid as normal even if the tenants fail to pay. It pays for the court costs involved in evicting the tenant, it even covers court costs for evicting for other breaches of tenancy such as anti social behaviour.

This gives you the peace of mind to know that your rent will be paid every month and if you have to take the unfortunate steps of applying to the courts for an eviction you wont have to cover the costs. With court costs likely to be anywhere from £1000 to £2000 this really is a policy worth having.

Alongside the security of knowing your rent will be paid, you also get all the usual benefits of  a standard management package.

• Regular inspections of the property
• Full repair management
• Arrangement of gas safety certificate every year
• Renewal of tenancy paperwork
• Helpful and friendly staff on hand to advise you

We would be happy to discuss these options with you, either as a new landlord or an existing landlord who would like to swap to the Rent Assured option. Call the office on 01424 731731 or pop in to the office and see us.

Times are tough for estate agents...why it seems like every estate agent is now doing lettings.

Look around a small town like Bexhill and you'll notice just how many estate agents there are, 14 at the last count! With a population of approximately 41,173 and only 9.3% of the population living in rented accommodation, why are all estate agents turning to Lettings.

The sales market is stalling, Brexit uncertainty has crushed confidence in the property market, according to the official surveyors’ body, with buyers evaporating, prices falling and sales taking a record amount of time to complete. The Royal Institution of Chartered Surveyors (RICS) said the time taken to complete a property sale has widened to 19 weeks, the longest duration since it began collecting data.

It seems that estate agents up and down the country, unable to sell property, are pouring into the lettings business instead. Like rental properties themselves, the market for letting agents is now saturated. 

Of the 14 agents in Bexhill only one estate agent does not do Lettings alongside their sales. So this must be good news for landlords? More competition means better deals and reduced  fees surely? Not so, the influx has been so great that the Association of Residential Letting Agents (ARLA) has warned about a flood of "unqualified" agents without professional qualifications or standards hitting our high streets.

So yes, you might get a great deal, but will your letting agent be up to speed on all the relevant legislation, know what notices need to be served and when and have in-dept knowledge of the lettings market? Or will they simply be an unqualified sales agent trying to boost their income at the expense of landlords and tenants.

Choose a letting agent who is well established, knows the business and the town and most importantly is qualified in Lettings.

Section 21 case study - let this be a lesson!

In a recent court case,  Assured Property Services Ltd v Ooo, the landlord had attended court seeking an accelerated possession after having served a Section 21. He was in no way concerned as the Section 21 had been hand delivered, the two months had expired and the tenants were still in-situ. He was not seeking payment of any rent arrears, simply to regain possession of his property.

At court the tenant advised the judge that he felt the landlord was not able to serve a Section 21 as he had not been issued with a gas safety certificate at the start of the tenancy. The landlord admitted that is was simply an administrative slip up and the tenant was given a copy of the certificate at a later date.

The court decided that because the gas safety certificate had not been provided at the outset and because the landlord admitted his mistake, the landlord could not then serve a Section 21 to claim possession of his property. This meant that as long as the tenant paid their rent and did not breach any of the terms of the tenancy, the landlord would be unable to evict them.

It is well known that landlords have a legal obligation to provide a gas safety certificate every year but not all landlords understand that it needs to be given 'before that tenant occupies those premises'

This case makes it clear how important it is that landlords and agents need to be able to prove when and how documents were given to tenants. It would be suggested that the tenants sign or initial to say that the relevant paperwork has been received before the keys are handed over. 

So, what happens if you are in this situation now? Maybe you handed over the keys and know the gas certificate was provided at a later date or for some reason the tenants were never given a copy. In short, it puts you in a difficult position. If the tenants have make indications that they wish to move out, this could be encouraged! If this isn't the case you may want to let sleeping dogs lie. However if you need the property back and know you may hit problems in court it may be worth negotiating a tenancy surrender with a financial sweetener for the tenants - this is still most likely to be cheaper that the potential court costs. If the tenant is in arrears you can still use the Section 8 as this is not affected by the legislation, just make sure it is served correctly!

Not all letting agents are created equal!

Times are tough in the lettings sector at the moment, many landlords are feeling the pinch with recent legislation changes, increase in stamp duty costs and selective licensing. They need to know that they are getting good value for money and good support from their letting agents.

For such a small town there are an awful lot of letting agents in Bexhill. Many of them started out as estate agents and decided to dip their toe in the letting agent pool when the sales market slumped some years ago.

We feel that we are the right agent to let your property in Bexhill or the surrounding area, have a read of the points below and see what you think.....

Price - We feel that our prices are fair and reasonable for the work that we carry out. We offer a high quality service at a competitive price. While some agents will offer very low prices, you need to ask yourself, what corners will they be cutting to enable them to offer such a low price. Negotiating a good deal is one thing but don't fall for a too good to be true offer, as the saying goes "if it sounds too good to be true, it usually is".

Customer Service - We pride ourselves on our high standards of customer service, not only to landlords but also to tenants. A landlords main aim is to find a good tenant who stays long term and pays the rent, if that tenant is well looked after by the agent they are more likely to be happy to stay. We also make sure we have up to date knowledge on all the latest legislation and will keep landlords informed of any changes they need to make to ensure they are covered. We are a small team and landlords will get to know all of us, we offer personal service and are always on hand with help and advice.

Ethics - We strongly believe in a fair service for all. We don't charge hugely over inflated admin fees to tenants, we charge just £84 per person including VAT. This reflects the costs involved in carrying out the referencing fees, we don't feel that an admin fee of sometimes over £200 per person can be justified. We don't poach clients from other agents, we respect other agents that have worked hard for their leads and do not directly target landlords who have chosen to give their business to another agent.

Expertise - We don't do sales! We specialise in lettings, this means all of our knowledge and expertise is solely focused on letting and managing property. The staff you speak to in the office are the same people who will deal with all aspects of the process, from finding a tenant to dealing with repairs or issues with the rent. We know our stuff and can advise you accordingly to ensure your property is well looked after and that your tenants are kept happy.

Qualified and Registered - We are members of ARLA (Association of Registered landlords). This means we adhere to the high standards and levels of professionalism set out by the industry governing body. We have also carried out recognised training courses and exams to obtain ARLA  qualifications. We are also members of the Property Ombudsman which shows we are confident in our abilities to resolve any issues but that we are also committed to give our customers another route to find resolution in the unlikely event that they are unhappy with the way we have dealt with their issue.

We want your business, we want to let your property - its what we do. However, we also want to give good customer service, be fair and transparent in our practices and offer great property management at a great price.

If you have read this far and think our agency might be the one for you, give us a call. Chat with us and see what you think. We offer free no obligation valuations and advice and if you decide to go ahead and let your property through us, we will offer you three months free management if you place your property with us as sole agent.

Lettings isn't just part of our business, it is our business.

Getting your property ready to rent out

So, your property is empty and you are getting it ready to re-let or to let it for the first time. What things do you need to consider to attract the right tenants.

Firstly, is the property safe? If it has a gas supply you must have a valid gas safety certificate, this must be renewed every 12 months and it is illegal to let out a property without one. You must also make sure you have a working smoke detector on every floor of the property and a carbon monoxide detector if there is a solid fuel (coal, wood etc) burning appliance in the property. Make sure the electrics are safe, its recommended that you have an electrical certificate carried out every 10 years.

Does everything work? The last thing you want is a tenant moving in and finding things don't work as they should. Check the boiler works, that they can get hot water and heating and that the thermostat and timer work as they should. If you have provided white goods, check that they work, the oven gets hot and the washing machine is plumbed in correctly. Check the little things too, do all the taps work without leaking, the kitchen drawers open and close and the toilet flushes.

What about cleaning? Moving is a stressful time and the last thing tenants want is to move in to a dirty home. The kitchen should be thoroughly cleaned, this includes the oven and hob, inside the kitchen cupboards and floors and surfaces. The bathroom should also be spotless, if the seal around the bath or shower is black or mouldy consider having it re-sealed. The whole property should be dusted and hoovered and ready for someone to move in to.

Those extra touches...Think about having the instruction manuals available for the new tenants so they know how to work everything. Make a note of what day is bin collection day or where the bins are kept. You could even leave them a card to welcome them to their new home.

Make sure you have an inventory! You've worked hard to make the property safe, clean and tidy and have tenants ready to move in. Now is the time to make a detailed account of everything in the property and its condition. That's everything from the walls - newly painted magnolia walls - excellent condition, no marks or walls painted magnolia, good condition, two scuff marks next to plug socket, to the carpets - grey carpet, good condition, small burn mark under window etc. This is your protection so that if the tenants vacate and have damaged something you have proof of the original condition to enable you to deduct the money from their deposit.

Its hard work but by putting the work in now, you will have happy tenants who are more likely to look after the property,  you shouldn't have any unexpected repair bills when they move in and you have the peace of mind of knowing you are adhering to all of the relevant landlord legislation.

Arranging access to your rental property

When a tenant rents a property, most landlords want them to treat it as their home, this means respecting their right to have notice for inspections or repairs and not turning up unannounced. While you may own the bricks and mortar as soon as your rent it to a tenant, they have the right to refuse access if they see fit.

Some tenants are very easy going and laid back about access and you may fall in to the trap of presuming they wont mind you popping round or giving the contractor the door key. However by doing this you could find yourself in hot water. If you enter a property without permission or without notice you could be sued from trespass and for breaching the tenants right to quiet enjoyment.

The Housing Act 1988 states that a tenant must give 'reasonable access for repairs to be carried out', despite this, the landlord or agent still cannot access the property is the tenant refuses. Most tenants who refuse access mention their right to 'quiet enjoyment' which allows a tenant the right to uninterrupted use of the property and gives protection from interruptions or harassment.

To prevent problems gaining access to your property when repairs are required or for annual inspections, it is worth getting to know the tenants and what their reasons may be for refusing access.

• Security - tenants may have been burgled in the past or may be generally fearful of security. They could be fleeing domestic violence.
• Illness - people who are ill generally don't wish to be disturbed. This may be an issue if the illness is long term. 
• Mental Health Issues - they may have paranoid fears or be reclusive or hoarders.
• Young Families - People with babies may not want to disturb their routine or be unavailable during school runs.
• Issues with a member of staff - this may be because of their gender or a previous disagreement

Once you have ascertained why the tenant doesn't want to allow access, you can work with them to find a solution. This may be visiting in pairs, changing the time of a visit or working with the tenants support network to make them feel more at ease.

While it can be frustrating, by working with your tenant to make them feel comfortable about visits and allowing access, you will build a better relationship with them and ensure that you can access your property to carry out repairs and check the condition of the property.

Landlords - is your property fit for human habitation?

In the first part of 2018 there was a lot of talk around the HOMES (fitness for human habitation) Bill. It had originally be rejected by the government but in the wake of the Grenfell disaster and the way in which the tenants safety had been compromised, the bill has been brought back up for discussion.

It will be discussed in the house of commons on 26th October and it is likely to be passed.

If it becomes law it will ensure:

• That all landlords (both social and private sector) are required to ensure their property is fit for human habitation at the beginning of the tenancy and throughout the duration of the tenancy.
• That if this is not done, the tenant will have the right to take legal action in the courts for breach of contract on the grounds that the property is unfit for human habitation.

The main point to note here is the wording "throughout the duration of the tenancy" this means even if the property was in good condition when it was rented out, if issues occur during the period of the tenancy a landlord must be able to show they responded in a timely manner.

This would include a clear (ideally photo-based) check-in inventory, evidence of swift and effective repairs when something such as the breakage of a sole toilet in a property occurs, regular inspection reports, noting any issues and what is being done to resolve them and a clear (ideally photo-based) check-out inventory.

If your property is managed by an agent, they should arrange regular inspections and respond quickly to reports of any repair issues. If you manage the property yourself you must ensure you are contactable and that you respond quickly to any reports your tenants make. You should also carry out regular inspections to ensure the property is in good condition.

Do you feel like managing your own property is taking up too much of your time? Unsure if you are adhering to all the new legislation coming in at the moment? Call us today on 01424 731731 and we will be happy to go over the management options with you.

Are you happy managing your own property but would like someone to go in and do an inspection every six months? We can carry out a one off inspection visit and report for £54 including VAT.

Dealing with the death of a tenant

We have unfortunately had the sad experience of dealing with the death of two of our tenants this year. It is a rare occurrence but one an agent needs to know how to deal with. Would you know what to do if a tenant died?

One thing to consider is that the tenancy does not end just because the tenant has died.  For example, if a couple live in a house and one partner dies, the remaining tenant will become a sole tenant and continue to assume the rights and obligations of the tenancy agreement.

If the death of a sole tenant occurs part way through a fixed term tenancy, the remaining period of the tenancy becomes part of the estate. The estate or their representative can retain possession of the property - but will obviously be liable for rent and bills. If the landlord wanted to bring the tenancy to a close he would need to serve a Section 8 notice applying ground 7.

If the tenant dies and has a periodic tenancy, the tenancy will continue until it is surrendered by the personal representative. The landlord however may want to serve a Section 21 to bring the tenancy to a close.

In reality, most relatives or personal representatives want to get the property cleared and handed back to the agent or landlord as soon as possible. Most landlords are happy to accept a property back even if it is part way through a fixed term rather than pursuing the estate for the rent for the remaining fixed term.

If the tenancy also has a guarantor, the guarantors liability continues after the death of the tenant and would still be liable for any outstanding rent arrears or damage to the property if they could not be covered by the deposit.

If a relative does not have the ability to arrange clearance of the property or does not want to, the landlord may feel it is in their interests to have it cleared so they can arrange re-letting of the property as soon as possible. You must obtain written permission for the relative or personal representative before you remove any items from the property. The costs incurred when clearing the property would then be taken from the deposit. The remainder of any deposit would then be returned to the estate.

Also, remember, just because the tenant has died, this does not give the landlord or agent automatic rights to enter the property and attempting to regain possession without permission would be classed as an illegal eviction.

Generally if an agent or landlord deals with the relatives sensitively, an agreement can be reached to get the property back quickly with as little stress as possible, however if this isn't the case there is a legal back up should it be required.

What do tenants really want? Considerations when looking for a Buy to Let property.

As landlords your main aim is to find a good tenant who pays on time, looks after the property and stays long term. What can you do as a landlord to attract that kind of tenant?

When looking for a property to rent, Knight Frank asked tenants what do they look for?

The most important factor was affordability. Its worth considering that if you have a tenant that pays on time and stays long term, this is worth more than an extra few pounds every month from a tenant that is going to cause you a headache! A lot of tenants are "reluctant renters" and would prefer to buy if they had the choice, they will appreciate a well priced property which makes them feel they have value for money.

Look at the yield a property is going to achieve, this is the annual return on your investment. You must also take in to consideration service charges, does the property have a lift? This will increase the cost of the service charge. Are there lots of maintenance charges? What is the ground rent? Remember to factor in void periods when the property is empty, this is another reason to look for a long term tenant so that your void period is low.

In a recent survey carried out by LSL Property Service over 16% of renters also said that they would pay a premium for a property with a garden, this is something to consider when looking for a buy to let property. However be wary of getting a property with a large garden as not all tenants are as green fingered as they would like you to believe and a low maintenance garden will be more popular.


Knight Frank also asked tenants what they look for in a rental home.

Tenants want a clean, comfortable property decorated with neutral colours in a nice neighbourhood. Choose a property with a a straight forward layout which will appeal to the most amount of people.

They also asked tenants what makes them what to stay long term.

It seems that if as a landlord, you are willing to maintain the property and react swiftly to repairs then your tenants will want to stay longer and are more likely to look after your property. This is something that you will need to consider when becoming a landlord. We recommend that you keep a % of the rent aside each money in case of repair issues. 

Finally, Over 45%  of tenants said they would like to be able to have a pet and would we willing to pay an additional £24 a month to have one. Generally landlords are not keen to allow pets, citing the potential damage and noise problems. However its certainly something to consider when looking for a long term tenant and allowing them to have a pet may encourage them to stay longer term.

When viewing properties and considering a buy to let purchase keep all of these things in mind. Here at Ark Residential we would be pleased to discuss this in more detail or give a free valuation on any properties you are considering purchasing. Just pop in to the office or give us a call 01424 731731.

Does your tenant have the right to rent?

As a landlord you are now obliged to check that your tenant has the right to rent your property. You must check every person over the age of 18 living at the property, even if they are not listed on the tenancy agreement.

You must ask to see their original documents which prove they can rent a property in the UK. These documents are:

• UK passport
• EEA national passport
• EEA identity card
• EEA permanent residency card
• Biometric residence permit with unlimited leave to remain / reasonable time remaining
• UK immigration document with unlimited leave to remain / reasonable time remaining
• Passport endorsed with unlimited leave to remain / reasonable time remaining
• Certificate of naturalisation as a British citizen

You must keep copies of these documents and note when they expire if the tenant does not have indefinite leave to remain. If the tenant cannot produce new documents to show their stay has been extended then they will no longer have the right to rent and you must inform the home office.

If it is proven that you have not checked your tenants right to rent or that that you didn't follow up the checks when the permission was due to expire, you could be fined or even go to prison.

Changes to minimum energy efficiency standards

Did you know that next month the legislation is changing with regard to Minimum Energy Efficiency Standards (MEES) on rented properties. From April 2018 landlords will face civil penalties if granting new, or renewing existing leases on residential properties which do not meet the minimum energy efficiency standards.

Each time a residential property is rented out it requires an Energy Performance Certificate (EPC). This is the government’s way of collecting data on how energy efficient a property is.  EPC’s are rated between A – G, A being the highest level of energy efficiency and G being the lowest. By April 2018 any landlords renting out a property which currently has an energy rating of F or G will need to have carried out works to improve the energy efficiency of their property to E or higher. It is expected that by 2025 the rating should be a D or above and by 2030 the rating.

MEES apply to all houses and self contained flats, non self contained bedsits do not require an individual EPC. Listed buildings, stand alone buildings with a floor area of less that 50 square meters and residences intended to be occupied for less than four months of the year are also exempt. landlords can be granted a five year respite from complying with minimum standards if they under take improvements but they still leave the property with a rating of E or below or if the changes required to bring it up to standard would devalue the property by more than 5%.

We have made sure all of our landlords are aware of these changes and advise of any works that are required. However the government have a timeline set out to further raise the required standards which could have much more of an impact and by 2025 the lowest permissible EPC rating will jump from an E to a D and from a D to a C by 2030.

The benefits of having an inventory

Getting a property ready to let can be a costly business and landlords sometimes look for areas where they can cut costs. Often when we suggest an inventory we get the response that the property is empty, there is nothing to list. However, whilst there might not be any furniture in the property, an inventory will list the colour and condition of the walls, the carpet and all the fixtures and fittings.

By having an inventory which is detailed and clear and asking the tenant to sign that they agree with it when they move in offers you protection at the end of the tenancy. When the tenant checks out of the property we can compare the condition of the property when they moved in, to the condition of the property now using the inventory. If, for instance, there is an iron burn on the carpet on checkout but it is not listed on the inventory, it is fair to assume the damage was done during the tenancy.

When deducting money from a tenants deposit you must be able to prove that it is a fair deduction. By having the inventory, especially if it has photographs of the property, as proof of the condition means a claim for compensation is far more likely to be successful.

Inventories must be clear and detailed;

Carpet - Brown,

is not enough, it should say something more specific such as;

Carpet - Dark Brown, Good condition, small stain in right hand corner next to radiator

This gives a clear indication of the colour, condition and any defects. We would then suggest a date stamped photograph of the stain for reference.

It can be a daunting prospect to compile a full inventory of your property and we are happy to carry out the inventory on your behalf, our inventory clerk has many years of experience and a real eye for detail. Make sure your property is protected by ensuring you have an up to date, clear detailed inventory.