Tag Archives: Property Letting

18Apr 2013

Property News: Council Tax Charges Changing for Empty Properties

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By Craig Smith

It is that time of year again when we find out whether or not our council tax has gone up and what we need to pay in the coming financial tax year. You may remember back in August we found out that the majority of local councils voted in favour of charging extra on empty properties and now we know more!

Local Councils

Based in Staffordshire we deal with a number of different councils, the main one beingStaffordwhich is our main area but also various other councils within the region. It seems that each council is doing something different now that they can charge extra for empty properties.

Stafford Council have informed us that they will still be giving a 6 month exemption for properties that are classed as unoccupied and unfurnished.  This is no different to the exemption that was given before which gives rental property Landlords time to carry out any repair work etc and find a new tenant. It appears that the only change is that there is no longer a 50% reduction after the 6 month period and the full amount will then need to be paid.

On the other hand, Tamworth Borough Council have reduced the complete exemption to a period no longer than 2 months, with the full amount then being payable after that period. Both of these councils will now charge 150% of the tax on any property that has been empty for more than 2 years. (Yes, one hundred and fifty per cent!)

Hearing from other offices around the country, it appears that most councils are going along this route of only offering a shorter exemption period or in some cases, none at all!

How Will it Affect Rental Figures?

The demand for housing is very high and the government is keen to develop more land to supply the extra stock. So it isn’t surprising that councils want to penalise those who leave properties empty when they could be used to accommodate more tenants.

Some people have suggested that Landlords will increase the rent on their properties to compensate for the extra council tax charges but put yourself in the position of a Landlord for a moment. If your property is empty, would you risk charging a higher rent to cover the charges, or would you prefer to accept a slightly lower rent for someone to move in more quickly? Suddenly, things don’t sound so rosy for Landlords.

What to do Next?

It is always best to check with your local council exactly when the charges are due before a property comes empty to avoid any nasty surprises. Also, it is advisable to ensure that the local council knows as soon as possible whenever a set of circumstances has changed, regardless of whether it is a rental property or not. As an agent, this is something that we always do which not only helps the smooth running of the files as they pass through but also ensures that our Landlords don’t end up with unnecessary charges.

17Sep 2012

Not All Rental Properties Are Suitable for Students!

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By Craig Smith

Over the summer and early in September we always have a number of enquiries for student properties. Once the university acceptance has come through the next hurdle on the way to further education is finding suitable accommodation. The key thing to remember is not how many bedrooms the property needs to have (a 2 bed terrace will probably be no good for 4 sharing people!) or even how close it is to a university but rather if it is suitable for the tenancy.

Some Landlord Prefer No Sharers

Most Landlords, certainly from our experience, prefer not to accept sharers in general. Perhaps two friends or colleagues looking to share to save on living costs would be OK but not usually more than that. The problem is so many bad experiences that Landlords have had where properties haven’t been kept in the best condition by sharing tenants.

We have had some instances where the ‘blame game’ is played. Maybe a rota has been set up to tell who should do which job and when but not everybody sticks to it. Tenants sometimes forget that if they are all named on one tenancy agreement then they are all jointly liable for any damages or outstanding rent. This means that all of the tenants are able to use all of the property.

Specifically Designed Sharing Properties

The same problem can occur when each tenant has an individual tenancy agreement but still has use of some communal areas. For example, renting a single room with a shared kitchen and bathroom. Each room is the responsibility of the individual tenant but the shared areas can remain a grey subject.

We had one instance recently where a particular tenant denied leaving the shared kitchen in a mess after use. Quite a coincidence then that as soon as this particular tenant vacated the condition of the property has improved!

Students Renting Issues

The main issue that some Landlords have with students is not the lack of rent payment. Most rents are paid in advance with thanks to student loans or the bank of Mum & Dad. There is a common stereotype of a student being a wild, partying lout who will trash the property without a care in the world. Of course, this isn’t the case but looking at other situations before, it only takes one bad experience for a Landlord to be put off.

Student Specific Properties

Most properties are subject to HMO Regulations (Homes in Multiple Occupancy) which means that it needs to have up to date safety equipment, signs etc if it is to be let to sharers. There are other properties that are designed just for student accommodation which may already meet the necessary requirements. This is also something that you should look out for if you are looking for a rental property and yet another reason why sometimes going through an agency is best!

 

31Aug 2012

Viewers Put Off By Poorly Presented Properties

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By Craig Smith

As one of the largest agents in Staffordshire, we get to see a wide range of properties in different areas around the county. It is always nice to see something different and how different owners have designed their homes to suit their needs and, particularly in smaller homes, how they have made best use of the space they have. But one of the issues we have is marketing a property that is not presented at its best.

General Cleanliness

One property that I showed to a couple earlier this week is a prime example. The current occupiers were still in the process of moving out so there were a few dismantled beds and pieces of furniture still to be taken away. Usually this wouldn’t put any viewers off as people who are about to moves themselves can appreciate the amount of work it entails.

The main issue for this property was the amount of cleaning that was needed. There were bags of rubbish piled in the back garden and the house really just needed a good going over with a damp cloth. If a viewer sees a property in this kind of condition it is hard for them to imagine how it will look when they are ready to move in. It also puts doubt into their minds about whether the Landlord would be proactive with any future issues during the tenancy.

Does the Paintwork Need Touching Up?

Another issue the viewers had with this particular property was the condition of the walls and paintwork throughout the house. Again, most people can look past a wall or two that is yet to be made good but when the majority of the walls need filling in and completely repainting, it can be hard to visualise the end product.

It is easy to tell someone what work is going to be carried out before they move in but it is hard for them to actually believe you without any actual evidence. For example, if one room had been started and the viewers could see tools or paintbrushes etc then they might have believed me a little more!

Keen to Get the Property Let

We understand from a Landlord’s point of view that it is best to get the property let as soon as possible to avoid any prolonged empty periods for their property. But when a property is poorly presented it can sometimes make us agents feel like we are wasting our time. Sometimes it is best to hold off on any marketing and wait until the majority of any work is completed.

Needless to say we have spoken with our Landlord since who has welcomed our advice, even if it is sometimes a little hard to put it across in a polite way!

01Aug 2012

Property News: Full Council Tax Charges May Apply to Vacant Properties

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By Craig Smith

If you have had a property empty for whatever reason, you may know that a property can be exempt from council tax charges for up to 6 months, provided that it is unoccupied and unfurnished. This is known as a Class C exemption.

Under the Localism Act (which has also changed the way in which tenancy deposits are dealt with recently) the Government is planning to allow local authorities to charge almost whatever they like whilst the property is empty. In theory, the council could still allow an empty property to be exempt from the charges but, on the other hand, they could charge the full amount of council during that period.

Bad News for Landlords

Lets just put one thing into perspective here. Yes, sure, the local authorities could earn a little extra cash with the budgets being tighter than ever, but have they thought how this would actually affect homeowners?

It is not always possible for tenants to move out and in on the same day and it is not usually advisable especially if any work was needed between tenancies. A Landlord could find themselves not only out of pocket but in a financial mess if their property was empty for a month or two. Not only would they have no rent coming in to cover the mortgage, insurance etc but they would also have the expense of paying the council tax for a property they don’t even use!

The Knock-On Effect

If your not a Landlord yourself then you might think I’m being biased here but what about the knock-on effect on regular homeowners? For example, an elderly person moving into a care home might leave their home empty whilst they sell it, another expense to prevent them moving forward with their lives. Or how about someone relocating for work and needs to move away quickly?

And this is a Government that is trying to get the housing market back on an even keel?

Looking at this from the other side, most rental properties would hope to be empty for only a few days between tenancies which would mean that only a small amount of council tax would be due. Now, it is isn’t always easy to contact Landlords, particularly if the Council haven’t got the Landlords home address to address any billing. This would create a whole load of extra work for the Councils to chase outstanding amounts so all that money that could earn from empty properties could all be lost in chasing the debt!

Is This Really a Possibility or Just Scaremongering?

A consultation has already been held and 169 councils voted in favour of the extra charges and only 25 against so it is clearly obvious what the majority want. Unsurprisingly, the majority of Landlords are against the idea and quite rightly too!

I’m sure that this is by no means the last we will hear of this as we trundle towards the inevitability of the ever increasing costs of being a Landlord!

19Jul 2012

Rental Property Advertising: Energy Performance Certificates to be Shown with Particulars

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By Craig Smith

Just over a year ago I wrote about some changes that were planned with regards to including Energy Performance Certificates as part of the details shown to prospective tenants. Well the changes are now in place and, despite quite a lot of confusion, we finally have the answers to some of the questions that have been asked repeatedly over the last couple of weeks!

New Style EPC’s Now Available.

There is now a new style Energy Performance Certificate which still shows the same details as the ‘old’ ones but just in a different format, a bit like a newer model of a car! Some experts have been worried that any older format certificates would need to be replaced by the newer ones each time a property is re-let, even if the certificate has not yet expired. We can now confirm that this is not the case and that older format certificates are still valid, provided they are not out of date.

Should EPC’s be Available when Marketing?

The certificates should be included with printed details if they are being given to a prospective tenant and indeed available at viewings. They should also be provided to a tenant when they move in to a property whether they request one or not. The other change is that the first page of the document should be visible on any electronic advertising such as websites.

However, they do not need to be provided in window displays (imagine the amount of extra windows agents would need just to show them!) or in printed advertisements, for example newspaper adverts.

Should a New EPC be Obtained for Every Letting?

The short answer to this is no! An EPC that has been carried out for the purpose of letting a property is valid for 10 years and the only time it needs to be renewed before this is if any changes have been made to the property that might affect the rating. For example, having new double glazed windows installed or insulation put in.

Further Advice: Saving Energy in the Home

The certificate gives an estimated amount of how much it would cost to run the home over 1 year, based on assumptions of how long the heating will be turned on etc. This won’t be an exact amount that the occupier could expect to pay but does give some idea of how much they would be looking to pay at the property.

Just this Saturday at a viewing, a gentleman asked to look at the EPC as he wanted to compare the energy rating to his current property. He was going to look at the pro’s and con’s of paying extra rent for a new property compared with how the energy bills would stack up. I have to say, I can still count on one hand how many people have actually asked to look at the certificate in the last 5 years!

 

19Apr 2012

Property Landlord Advice: Choosing a Tenant – Landlords needs first – by law!

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By Steve Roulstone

One of the areas that crop up again and again when we are going about our job, is the relationship between ourselves as Agents of the Landlord and our prospective and actual Tenants. It is and always has been in our interests to have good relationships with our Tenants and we continue to promote that at all times, but when it comes to our position legally we have to consider the Landlord above the needs of the Tenant and it is this stance which is often mis-understood!

Tenant’s rights.

 We do of course give the Tenants duty of care, but two situations have arisen this morning which yet again could and possibly does leave us looking like ‘bad boys’ if we proceeded and made what we believe to be the best decisions in the interests of the Landlord. The first issue surrounds another Tenant viewing and proceeding with a property before a second prospective Tenant had viewed. There was a statement made about who was due to see the property first which we could not agree with as we do not give preferential rights of viewing as a Company Policy.  

I saw it first!

This is simple enough to understand, if the first person to phone cannot view for a week, do we stop others who can view today? No because it would not be in the interest of the Landlord and our decision is an easy one! In this case what has clouded the issue for the prospective Tenant, is that they felt they had been promised to be shown first but as we never do give such promises, because it is never in the interests of our Landlords, this would simply never be the case. It is more likely that there was a misunderstanding of what was being asked and promised, but it ended with a nasty phone call to myself and my staff which of course is not acceptable for either party.

Best Tenant.

The second problem was one where in asking for information to assist finding a property for a potential Tenant, nothing has been forthcoming since we asked from the Tenant. Now when they ask to view a property again, which we know will be impossible without the information, do we tell them no without delay? We are of course always charged to find the best Tenant at all times for our Landlords and that inevitably means making decisions. We have to otherwise we would not be doing our job.  But it is highly likely this situation will again end up with a disappointed party, but we are not bound to find property for all who contact us, just those we believe will be good Tenants.

Overriding facts.

In every situation we are bound to make the decision that is in the best interests of our clients and that is our Landlords. This means disappointing some who contact us. But until Tenants understand that we have a legal commitment to serve our Landlords and that overrides any duty of care towards Tenants  (unless that neglect of duty includes an illegal act or stance) such issues will continue to occur. What of course we can hope is that not every time someone does not get what they want it does not end up in aggressive phone calls. 

13Jul 2011

Advertising a Rental Property: Where and How?

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By Craig Smith

Each advertising platform may try to tell you that they are the best to market your property, whether it be online or in your local newsagents. But which really is the best way of advertising a property?

Internet Property Advertising

Well, I guess there can’t really be a right or wrong answer to this as there are so many factors to take into account. Perhaps the most wide reaching method is the Internet with, according to the Office of National Statistics, more than 30 million adults having Internet. In turn, some of the more widely recognised property advertising sites advertise using television and radio campaigns, which then generate more users for the agents using the sites.

It is a fact that most enquiries we take are from Internet sources. The majority seem to be either from our own website, Zoopla or Rightmove just to name a few. Some of these sites are particularly useful to working professionals who might not always be at home to read the local newspapers or they can perhaps even look whilst they are at work or travelling with the aid of modern mobile phones or a laptop.

As an ARLA regulated agent, Castle Estates also display available properties on Property Live (refer to our previous blog on agent regulating).

Your Local Newspapers

If you are looking to stay in your local area, most local newspapers have sections for property for sale and to let. The disadvantage to this is that it will only reach a local audience and won’t appeal to the national audience. We see a large number of professionals who move from various places around the country and even abroad for work or to be closer to family. However, newspapers might only be published once or twice a week, whereas Internet advertising can be changed as and when properties come available.

Of course, there are still a number of people who don’t have Internet access or prefer not to use it, which is where the local newspaper will reach more prospective clients. Most areas have a weekly free newspaper which will be distributed throughout the area and should reach a large number of people.

The Good Old Advertising Boards!

Some people will see boards displayed at a property as a nuisance, particularly if a number of properties are available in a small road. However, on busy roads and popular housing estates, these boards can generate a lot of interest in a property. A lot of people will see a board and then go onto the Internet to find out further information. They also come in very handy if your not sure whereabouts the property actually is!

So Then, Which is Best?

Unfortunately, there is no definitive conclusion on this. Each way of advertising has is benefits and disadvantages, which might suggest that the best way is to use all of them. The best would be whichever suits the clients that are being targeted, in our area there are rural villages where many people prefer a local paper than using the Internet, but also people relocating who find it easier to look at the up to the minute details on the web. 

23May 2011

Property Letting Advice: The Importance of Good Communication

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By Craig Smith

In a recent ARLA publication, the property ombudsman (Christopher Hamer) has written an article relating to a tenant decorating a property. The story goes that, following the tenants request prior to signing the tenancy agreement, the Landlord would not decorate the property. The agent had then given permission for the tenant to carry out the works themselves. However, the Landlord had no knowledge of this and as such tried to claim for the costs of returning the property to its original condition from the deposit.

Tenants Decorating Permission

In this case, it appears that the Landlords agent had given permission for the tenant to redecorate, which could have cost the tenant a substantial amount of money, without first gaining the permission of the Landlord.  There really can be no excuse for this, even if the Landlord was away or unable to be contacted the agents should not have given the permission to the tenants.

Payback Time

As the Landlord had claimed for recompense from the deposit, the tenant then complained to the property ombudsman due to the distress caused by the lapse in communication. If an agent is a member of the ombudsman, it will deal with any complaints made in the most suitable manner.

The article states that the ombudsman awarded £200 in compensation to the tenant for the stress.

Lessons to be Learned

Although the tenant had quite rightly sought permission from the agent to carry out the decorating, the agent had not contacted the Landlord for their advice. Ultimately, it should have been the Landlords decision whether or not to allow the decorating to be carried out.

Best practice dictates that permissions should be in writing and a record kept of and do’s and don’t given to the tenant by the Landlord. The agent in question was at fault for not fulfilling their obligations to their Landlord, which goes to show the importance of having trust in your agent. 

13Apr 2011

Lettings Update: Change in EPC Rules to be Implemented

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By Craig Smith

From 1st October 2008, most residential properties need to have an EPC (Energy Performance Certificate) in place before they are able to be marketed. However, this looks set to change from 1st July 2011 due to new government rulings which have been announced to the energy assessors.

Current Regulations

At the moment, an EPC graph should be provided to prospective Tenants at a viewing and most certainly before they take tenure of a property. An EPC will last for 10 years for a rental property unless there are significant changes made to a property, such as the fitting of a new heating system, insulation being put in or new double glazed windows fitted.

Are EPC’s Useful?

If you asked us how many times a prospective Tenant has asked to view an EPC at a viewing since October 2008, you could probably count them on just one hand! This seems to be the general feedback from many Landlords and Agents. So that must mean that not many people even bother to look at them!

The certificates do good information on how to reduce the amount of energy used and improve efficiency. But again, if no-one looks at them what use are they?

The New Rulings

A government memo has been seen by one of the industry’s biggest publications which suggests that from July 2011, a full EPC report should be provided with ANY written details for a property. At the moment, the first page of the report is sufficient as this shows the performance graphs. So lets just get this straight, we should have to provide a complete document, usually around 7 pages, for most people to throw away. Why?!

Full EPC’s are available on request anyway (not that we ever seem to have requests for them) and if anybody does happen to be interested in the energy usage, it is usually only a quick glance at the graphs. Being perfectly honest, we cant remember having a single viewer say no to a property because of the results of the EPC!

Your Opinion?

We would like to hear your opinions on the subject, whether you are a Landlord or a Tenant. Maybe you have found an EPC to be useful when refurbishing a property or when choosing a property to move in to, please feel free to add a comment using the button below! 

17Feb 2011

The New Castle Estates (Staffordshire) Blog

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By Craig Smith

Welcome to our new blog which will be focusing on the issues of property lettings and management in and around the Stafford area. We aim to update our blog as often as possible to keep all Landlords (and Tenants) informed of the latest news and legislation with regards to the rental market.

Why publish a Lettings blog?

The best way to ensure everyone has the latest news and information is to make it readily available and easy to access. We hope to keep you as informed as possible and updated with any major discussions or changes relating to the property rental market. Although our Franchisor focuses more on the national issues we hope to tackle some of the more local issues.

Who can read this, Landlord or Tenants?

The simple answer is everybody! We hope that the majority of information will apply to our Landlords but also to some of our Tenants as well. Another reason for this blog is to advise our Landlords of current market trends and to make letting a property that little bit easier! Any changes in property law or legislation can have an effect on everybody, so we hope that you will find this useful.

What are the upcoming issues in Rentals?

There are always a number of interesting points to be discussed when letting out and managing a property. Legislation is constantly changing and agent practices have to change to reflect these. The last 5 years have seen a number of big changes including Tenancy Deposit Protection and the introduction of Energy Performance Certificates for rental properties. We also anticipate a number of changes following the budget cuts this year and will be able to publish more information shortly.

 To summarise…

We do hope that you will find our posts both useful and informative. We aim to make the headings for each post clear on each subject, so that you can easily find the posts more relevant to you. Hopefully, you will able to be kept ‘in the loop’ with our page and enjoy reading our latest posts!