Tag Archives: Property Advice

10Jul 2010

Property Landlord Advice: When is an HMO not an HMO?

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By Steve Roulstone
 
Never! 

 There has been a lot of confusion caused by the Housing Act of 2004, where HMO property is concerned as introduced in April 2006 surrounding licensed buildings, but the changes are actually simpler than they first appear.

 To license or not to license?

 This is the real question for Landlords and the real crux behind the changes. It is also where a clear definition of what represents a House of Multiple Occupation. Conversely, it is also this area that has given rise to the biggest area of confusion amongst Landlords and the mistaken belief that if there house does not match these criteria, that HMO regulations can be ignored.

 Two families and the Council decide.

What all Landlords need to be aware of and appreciate is that any property that has more than two families living at the property (More than two families represented who are not co-habiting) as their permanent address, then as far as the Council are concerned, it is an HMO! Maybe not one that needs a license, but as far as safety is concerned and this can mean Fire doors and surrounds, Fire walls and escape windows, then the Council will in all probability order that such safety measures are installed for the safety of the Tenants.

The Council decides, or not!

And here is the next problem facing all Landlords. Not all Councils take the same view or level of safety when considering identical styles of property! Prior to its introduction I spoke to and worked with my Council, who independently of other areas, decided to take a review of all property that they believed was operating as an HMO through there register of student homes in the Town. This gave me both an insight and early approach to both the knowledge needed and ensuring my Landlords, existing and new, were well informed.

Confident letting.

 So what my advice to all Landlords is, if you are renting to more than two family units, then your local Council will definitely consider it to be a House of Multiple Occupation. Unless it requires licensing by number of stories or people residing, then you could be forced to take appropriate changes to the safety of the building as your Council sees fit, so take advice first and speak to the Council before you find out the hard way!

Steve Roulstone

30Jun 2010

Property Landlord Advice: The argument for Insurance.

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By Steve Roulstone

Landlords Legal Expenses and Rent Guarantee (LERG)Insurance is a vehicle that has been available for many years to protect Landlords from loss of rent and the cost of taking action against Tenants not fulfilling their obligations. The knowledge their income is protected has to be a serious consideration for all Landlords.

Only one way do it – the right way.

As both a Landlord and a professional Letting Agent holding LERG cover is a position I always recommend. Almost all LERG policies as a prime benefit of full management carry professional referencing as a prerequisite to being able to take the insurance so further credence is given to the Tenant wishing to rent your property when a pass is achieved. In fact, it could be said Landlords without LERG are taking unnecessary risks if, when presented with the option, the Insurance is not taken out.

Security in the System.

Yet amazingly, I have this week been advised of a situation where an agent acting on behalf of a Landlord, instead of offering referencing services to their client, simply requested ‘Referees’ from the prospective Tenant and then asked for a Guarantor, presumably because they did not like the look of the Tenant!

Renting your House or Home

I wish here to give as much credence to the ‘Agent’ as possible, but as a Landlord, I would not be happy committing the security of my property to somebody who decided themselves if the person in front of them was a good Tenant or not. We all think we can take such decisions because we have the necessary experience and after the years I have spent in this industry I would consider myself to be a good judge, but I would never put myself in the position of taking a risk with somebody else’s investment! This is simply not a good idea where referencing is concerned.

Follow the professional recommendation

If industry bodies such as ARLA recommend referencing and or simple credit checks to ensure security through agents, then surely all agents should make such arrangements to protect their clients. Sounds like I’m beating the same old drum – you bet I am!!

22Jun 2010

Property Landlord Advice: Furnished or Unfurnished, That is the dilemma!

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By Steve Roulstone

 

The Golden touch of Magnolia.

Surprisingly, or maybe not when you understand why, it is still the simple touch that gets the approval from Tenants. Unfurnished and plain walls with plain carpet in good order and no matter what you feel, Magnolia fits the bill. The first Golden Rule of rentals.

Flat or House to Rent.

The choice is still the same. Tenants need to be able to see their own Furniture and belongings in the property they wish to rent and if the walls and floors are in neutral colours, then there is an increased chance they will pick your property.

Avoid the Regulations.

There are two points about why a Landlord should avoid Furniture, firstly the whole question of what is allowed and what is not can be avoided if no soft furnishings are included and secondly, no matter what furniture is included, experience tells me that something will come under question, either the lack of what the Tenant perceives as items that should be included or the wish to be able to bring their own bed or three piece, making said item you have provided extra to requirements and leaving you with the problem of storage.

Unfurnished Home to Rent.

So maximise your options in this ever growing market and making it easier for your Tenant to choice your home, is the next best thing. To prove the point, consider this: In all of my time at Castle Estates I have always received agreement when I point out that Tenants look after their own property better than the Landlords! This is only natural and I believe we would all be the same the upside is that they will also look after the house better when populated by the Tenants furniture.

Unfurnished, not Unimpressive.

But do not forget the power of impression. Imagine yourself Cooking in the Kitchen and Bathing in the Bathroom of your property. Now if you would be happy so would your Tenant. Quality Kitchens and Bathrooms in a neutrally decorated and carpeted house will put you at the top of the property rental selection tree!