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.

This week is SAFE agent awareness week.  We are a SAFE agent so you have the security of knowing your money is protected.  Why anyone would consider using an agent that is not willing to offer this security can only be due to a lack of awareness  - so help us spread the word and share this blog post!!

SAFE – Safe Agent Fully Endorsed – is a mark denoting firms that protect landlords and tenants money through client money protection schemes.

There are several schemes* in the sector operated by ARLA/NAEA, the Law Society, NALS and RICS to which agents voluntarily belong. The scope of these schemes varies and you should contact your agent for full details of the scheme of which they are a part.

Landlords and tenants often make decisions based on cost but it is important to ensure you ask your agent for details of the organisation they are regulated by and whether or not they are covered by a client money protection scheme. All agents who are part of ARLA/NAEA, the Law Society, NALS and RICS maintain and operate separate designated client accounts where your money is held completely separate from the operating funds of the firm. If the agent you are using cannot provide you with the assurance of knowing they are covered by a client money protection scheme the question you need to ask is why not?

Thought we would share this . .

ARLA: TOP TIPS FOR "GREENING" RENTED PROPERTIES

Landlords overseeing residential properties should consider measures to improve the energy efficiency of their properties, according to the Association of Residential Letting Agents (ARLA).

The Government'sGreen Deal will encourage landlords to take advantage of up-front financing to make their properties more energy efficient, where tenants request improvements be made.

For those landlords who don't comply however, the Government has stated that it may introduce regulations to force landlords to improve their properties by 2015.

The Government's aim is for all properties with an Energy Performance Certificate (EPC) rating of F or G to be improved beyond that grading, which may be a significant challenge for older properties.

So ARLA has come up with these simple tips to make your properties more efficient, thus saving money and further financial outlays in the future:

• Cavity wall and floor insulation: This can often be a disruptive process, but effective insulation will represent a significant step towards improving the energy efficiency of your property.
• Ensure you have effective loft insulation: Although many properties now have loft insulation installed, check the depth and quality. The recommended thickness is between 250-300mm for optimum energy efficiency.
• Insulate your water fittings: ARLA recommends that lagging should be installed around water pipes and boilers to minimise heat loss. As many will have experienced this winter, water pipes are also prone to freezing, so insulation should help to prevent this.
• Prevent draughts: Landlords should seek to block draughts in various parts of their properties, through draught proofing doors and windows, as well as reducing heat loss through floorboards.
• Install a thermostat on your boiler: Thermostats ensure that when a room reaches its optimum temperature of around 19?C, the heating is automatically switched off, thus reducing heating bills.
• Communicating with tenants: Effective communication between landlords and tenants can ensure that tenants are aware of the importance of energy efficiency, and take their own simple steps to reducing heating costs.

Ian Potter, Operations Manager of ARLA, commented: "Landlords can already take advantage of a tax allowance of up to £1,500 for these energy efficiency improvements through the Landlord's Energy Saving Allowance (LESA).

"It makes sense therefore for landlords to carry out these improvements straight away, as considerable cost savings can be made."

Landlords – Why choose Ark Residential?

We respect your property. We understand that every house, flat and maisonette is important. We will ensure that your property is marketed, managed and maintained to the highest possible standard.

1. Valuation of your property

We make sure that our experienced staff give you an accurate and honest valuation based on our knowledge of the local area and the current rental market. We will give you advice on rental value as well as recommendations on any additional actions that could ensure an optimum rental price.

2. Marketing

Marketing your property is the most important step when searching for suitable tenants. In the age of the internet, many applicants now use websites as their first port of call when looking for a new home. We market and advertise your property on all of the main internet sites, Rightmove.co.uk, Findaproperty.co.uk, Propertylive.co.uk and Primelocation.com as well as our own dedicated website Arkresidential.co.uk. We also advertise in the local Homes magazine to ensure those without internet access are not over looked. We have a large and prominent window display in our prime town centre location and use our list of registered applicants to make pro active outbound telephone calls as soon as a new property becomes available. We take numerous photographs of all of our properties and produce high quality colour particulars to give applicants clear and detailed information.

All viewings of the property are accompanied by one of our friendly and knowledgeable staff. This ensures the property is well represented and any questions can be answered quickly and efficiently. We strive to ensure applicants have a positive viewing experience and increase the chance of the property being let quickly.

3. Finding the right tenant

Getting the right tenant is key. We carry out rigorous referencing on all applicants. We take up both landlord and employer references. This ensures the applicants have been good tenants in their previous properties and verifies their income to ensure they can afford the rent. We also complete a credit check to ensure they do not have any bad credit, CCJs or bankruptcy judgements.

4. Sign up

Once the applicants have passed the referencing we will complete all paperwork that is required to ensure a smooth sign up. We can arrange for the property to be cleaned, and any checks that are required such as EPC and Gas Safety Certificate can be carried out by one of our qualified contractors. We can arrange for a full inventory of the property to be taken and presented in an easy to read format.

We produce a comprehensive tenancy agreement for the new tenants to sign to ensure they are fully aware of their obligations during their tenancy.

We will also contact all of the utility suppliers with ingoing meter readings and ensure that the council tax department is aware of the date the new tenants are moving in.

As members of the TDS (Tenancy Deposit Scheme) we will register the security deposit and ensure it stays safe until the tenants move out.

We will make an appointment for the applicants to sign all of the paperwork and collect the deposit and first months rent. Once the applicants have signed up we will call you and advise you that the sign up is complete and you have tenants! We will also provide you with copies of all the relevant paperwork should you require it.

5. Managment

If you have decided to manage the property yourself we will pass on your details to your tenants should they need to contact you. We are, however, available to offer advice if required and we can also offer to arrange an inspection or gas safety check for a small fee on an as needed basis should you require it.

If you decide to go with our premium management service we will collect the rent from your tenants every month and forward it on to you. We will be the first point of contact for the tenants and our dedicated Property Manager is there to over see any repairs or maintenance that is required. We will contact you when tenancy agreements are due for renewal and are happy to give advice regarding rental increases. We also undertake regular inspections at the property to check that it is being kept in good order and to catch any repair issues before they escalate. In conclusion, if a tenant has a question, query or problem we will do whatever we can to resolve it while balancing it with the interests of our landlords.