PROPERTY BLOG

Arrears - a dreaded word among landlords and, for anyone with even a mildly British temperament, an often uncomfortable situation to discuss and resolve. We’re fortunate enough to have very few tenants behind with their rent, but we also know the current economic climate could throw anyone’s finances off course. As the cost of living crisis bites, household budgets are getting squeezed, and rent arrears are more of a threat. It may never affect you, but if your tenants do stop paying their rent, you need to act quickly to prevent the situation from spiralling out of control. With that in mind, this week’s blog contains everything you need to protect yourself from the start, find solutions to financial hiccups, and recover what you’re owed. START BY PROTECTING YOURSELF The best way to prevent rent arrears from building up and causing you financial woe is to set your tenancies up correctly and securely. This includes: ● Proper referencing – we can’t stress how important this is, yet we still meet plenty of landlords who accepted a tenant without checking their status. Not to make light of it, but in the words of Julia Roberts in Pretty Woman: “Big mistake. Huge.” ● Face-to-face viewings – never rent to anyone you haven’t met in person or who hasn’t been inside your property. ● Rent guarantee insurance – this offers invaluable security right now for a relatively small monthly cost. Typical policies cover lost rent for 6 to 12 months, together with the legal fees involved in regaining possession. As long as you have satisfactory tenant references, cover is available for new and existing tenancies. For a deeper dive into keeping your income and rental property protected, take a look at our previous blog on what kinds of insurance a landlord should have . GETTING YOUR LATE RENT PAID It’s good practice to check your bank statements religiously on the first working day after the rent is due. A missed payment doesn’t automatically mean your tenant has gone rogue: it could be nothing more than a personal oversight, bank error, or short-term financial glitch. Nonetheless, it’s essential to act immediately and stop one month’s late rent from turning into two or more. Follow this simple three-step process to get your rent up to date asap: 1 Start with a gentle-but-firm reminder text or email asking your tenant to check with their bank if the payment has gone out, or if they know why the rent wasn’t paid. 2 Follow up with a phone call if you receive no response or rent within 24 hours, then with a formal letter if you’ve not heard back after several days. Usually, this works. 3 Make a plan – ideally, your tenant will get their rent up to date right away, but if they don’t have the funds right now, can you settle on a payment plan over a few months? Whether it’s a one-off thing or your tenant is prone to paying a few days late, knowing that you’re on the case can be all they need to pay on time and avoid the embarrassment of being chased up. DEALING WITH UNPAID ARREARS Tenants can fall into arrears for any number of reasons. A relationship break-up, losing their job, becoming ill or simply having trouble with the increased cost of living can quickly put anyone into financial difficulty. Although these conversations can be uncomfortable (a big reason why landlords use managing agents), the first step is to get total clarity on your tenant’s situation. A compassionate nudge around their finances could lead to a solution they may not see on their own. ● Ask your tenant if they’ve considered using a budget planner to identify any short-term cost savings (things like Netflix, gym memberships, coffees, and takeaways can all mount up, but they can also free up useful cash when suspended). ● Explore whether a member of your tenant’s family could step in with financial assistance (or even become a guarantor) if your tenant wants to stay. ● Encourage your tenant to speak to the Citizens Advice Bureau to see if they're entitled to financial support from the Government. If your tenant says they can’t afford to live at your property anymore, remember that you can use their security deposit to make up some or all of the unpaid rent. For tenants who don’t respond to your attempts to get in touch, it’s time to move on to the next step. GETTING YOUR PROPERTY BACK Sometimes you have no choice but to take back possession of your rental property. Perhaps your tenants need you to evict them so they can get local authority housing, or they could simply be refusing to pay what they owe. Depending on the circumstances, letting your tenants out of their contract might be the easiest route, so you can re-let your property and start earning income again. You’ll also create a path for your tenants to pay you back by moving somewhere cheaper or with family. Otherwise, if your property is in England, Wales or Northern Ireland, you could serve the following: ● a Section 8 notice after the arrears hit two months for rent paid monthly (or eight weeks for rent paid weekly), bearing in mind that the process can be over a year with the current court backlog; ● a Section 21 ‘no fault’ notice if the tenancy is beyond its original term, then seek accelerated possession (which doesn’t need a court hearing) if your tenants refuse to leave after the two-month notice period. In Scotland, there’s currently a limited ban on evictions , but you can still apply for an eviction order to enforce after the ban subsides. However, the ban doesn’t apply if: ● your tenant is six months or more in arrears ● you intend to move into or sell your rental property to alleviate financial hardship ● your tenant is no longer living there. Remember: if you do need to start legal proceedings, it’s vital to serve notice in the correct way to avoid being dismissed by the court and having to start again. RECOVERING UNPAID RENT FROM TENANTS WHO’VE LEFT Regaining possession of your rental property is one thing, but recouping any unpaid rent is a different process. Ideally, your tenants will start paying you back after they leave, but if that’s not the case and you wish to claim through the County Court, here are some things to note: ● You need your tenant’s new address to include on the claim form . If you don’t have it, you can apply to the court to serve papers at their work. ● At this point, the threat of a County Court Judgement (CCJ) can push tenants to pay you back and avoid a poor credit rating that will damage their chances of renting or buying a home for years. ● If you go to court and win, it doesn’t necessarily mean your tenant will have the money to pay you what they owe. ● You could then apply for an Attachment of Earnings Order to take the money out of their income, but the courts tend to set very low monthly payments. Given this lengthy legal obstacle course, it’ll probably come as no surprise that many landlords choose to simply move on without chasing unpaid rent. It’s far from ideal, but at least they have their property back and producing income. WHAT'S YOUR NEXT STEP? If you’d like some advice on getting your tenants back on track with their rent, or if you’re looking for a managing agent in Birmingham to take care of this sort of thing (and more!) for you, why not get in touch? Call us on 0121 427 4777 or email us at info@truemanestates.co.uk for some landlord love.

Winter is the time when most problems arise in rental properties. Emergency callouts abound, and insurance claims rocket, mostly from water or weather damage. While your policy might cover the costs, the inconvenience of midnight phone calls, stressed-out tenants and urgent repairs is something every landlord wants to avoid. Autumn is the perfect time to plan for the colder months, get ahead of the elements and give your property a seasonal MOT and fix any minor repairs before they become a major headache. Covering everything from your legal obligations, the checks to make at your property, and the conversations to have with your tenants, this week’s blog is a complete landlord’s guide to getting your rental property prepared and protected for winter. VISIT YOUR RENTAL PROPERTY The first step in making sure your rental property is ready for the rigours of winter is to go and see it. To get the most out of your visit, here are some guidelines for arranging, carrying out and following up on your inspection. ● Make an appointment with your tenants (they don’t necessarily need to be present). ● Ensure all safety certificates and service contracts are up to date. ● Check the inside and outside of your property thoroughly (more on that later). ● Identify any winter comfort measures and safety precautions your tenants need to be aware of. ● Confirm any advice in writing. Performing a pre-winter check-up now can save you a whole lot of drama later on. More than that, it’ll give you and your tenants peace of mind, knowing that your rental property will stay warm and dry, whatever the weather may bring. PROTECT AGAINST THE ELEMENTS Unsurprisingly given the British climate, most home insurance claims over winter are down to water finding its way in, either from weather damage at the time or simply that the property is another year older. Prevention is always cheaper and far less hassle than cure, so check the following vulnerable spots: ● gutters, down pipes, and drains for blockages from rubbish or fallen leaves (water needs to run freely to avoid overflowing and seeping into walls) ● roof coverings (including slipped tiles and slates, loose flashings and seals on asphalt) ● cracks or holes in render, bricks or mortar (from climbing plants or general ageing) ● window frames and woodwork (are the seals water and airtight, and is any wood or paintwork in need of repair?) ● boundary walls and fences for any rotting or loose posts and panels that might collapse in high winds ● chimneys (open fireplaces are about to get some serious use, so make sure the chimney is cleared and cleaned, and the cap is in place to stop rain coming down the stack) Having all this sorted now will boost the resilience of your rental property from the elements and minimise the potential for water damage and costly repairs. CHECK THE HOT WATER AND HEATING Getting a call from your tenants at an unearthly hour that there’s no hot water or the heating doesn’t work, or turning up for your spring inspection to find condensation dripping from mouldy ceilings, is hardly a landlord’s dream! The good news is that you can minimise the risk with a few pre-emptive checks. ● Ensure the boiler is serviced and has enough pressure (1 to 1.5 bar is normal, but refer to the manufacturer's handbook). ● Turn on the heating and feel the radiators to see if they're warm all over, or whether they need bleeding (get a key from somewhere like B&Q and show your tenants how to use it). ● Look at pipes under sinks, boilers and hot water tanks for signs of leaks or rust, and include the dishwasher and washing machine connections while you're there. ● Inspect bathroom extractor fans and ventilation sources, then speak to your tenants about preventing condensation (you can’t make them use the heating, but you can help them ventilate correctly, so they don’t end up with a repair bill). Fortunately, the days of frozen pipes are mostly behind us with modern insulation and installation methods. But, if your rental property has any exposed pipework that could be at risk of freezing (is any mounted on an outside wall?), wrap them in foam tubes or heat tape. LOOK AT SAFETY & SECURITY Whether your rental property is empty or occupied, it's most at risk from intruders during the winter months. Longer nights give burglars more opportunities to strike, both at vacant homes and from tenants being at work while it's dark. Even if your rental property is unfurnished, intruders still damage door locks, windows and permanent fittings when breaking in, or steal things like copper pipes. So it’s well worth carrying out some checks to ensure your property is safe and secure. ● Double-check that all window locks work and make sure your tenants know how to use them. ● Test the locks on sheds and garages - these are particularly vulnerable, so remind your tenants to be mindful of what they store there. ● Try the alarm, including the keypad and any movement sensors. ● Cut back any hedges that provide a hiding place. If you want to install some extra deterrents, consider motion-sensor lighting at the front, back and any side entrances, or a path of stone chippings that crunch underfoot to prevent a silent approach. FOLLOW THE LETTER OF THE LAW Landlords have a lot of legal obligations, and failing to meet them can have huge ramifications for your tenancy, from handling disputes to getting your property back. You are responsible for providing a home that is safe, secure and habitable, so now is the perfect time to ensure your rental property makes the grade before winter kicks in. Among your main look-out points are: ● gas and electrical safety with up-to-date certificates from qualified engineers ● having smoke alarms on every floor of living accommodation and testing at the start of each tenancy ● hot and cold water supply and adequate sanitation ● the structural integrity of the building ● ensuring sufficient natural light and ventilation ● maintaining and repairing the property, including appliances and fittings. As a managing agent, we need to stay on top of the ever-changing legislation to protect our landlord clients from falling foul of the law. If you’d like us to do the same for you, drop us a line at info@truemanestates.co.uk or call us on 0121 427 4777 to see how we can help. HOW WELL PREPARED IS YOUR RENTAL PROPERTY FOR WINTER? Autumn really is the best time of year to get your rental property ready for a smooth and event-free journey through the colder months. If you’re a landlord in Birmingham we'd love to show you how we take care of everything for you. Call us on 0121 427 4777 or email us at info@truemanestates.co.uk to tell us all about your property.

Nothing is more important than getting the right tenants for your rental property – because the choice you make will have a profound impact on your peace of mind and finances. Whenever we’re contacted by a landlord who’s been having problems at their property, there’s very often something that was missed or skipped before the tenancy started. A typical story is that things started well, everyone got along, and the landlord was pleased with their choice of new tenants. Then, at some point, something went wrong, and the landlord was left frustrated, disillusioned and out of pocket. So how can you tell if you’ll get respectful, responsible and reliable tenants before you hand over the keys? More than anything, it’s all about the setup, and this week we’ll take you through our tried and tested process, to avoid problem tenancies and create stable and long-term lettings. RUN A COMPATIBILITY CHECK FIRST The first step in creating the perfect letting is to minimise wasted viewings by checking that your property and whoever is enquiring about it are the right fit for each other. Some of the factfinding we undertake before booking a viewing includes asking potential tenants about: ● what they need in terms of space, rooms, garden, location, parking, and transport; ● their household setup (couples, singles, families, sharers) to be sure your property fits the bill; ● whether they have any children or pets (look at our previous blog for top tips on this); ● why they are moving, how long they plan to rent for, and whether they have a longer-term plan; ● where they work and who they work for (some employers have notoriously high staff turnover, while others have an excellent reputation for stability). You might feel uncomfortable asking so many questions, or pushing further if an answer is vague, but we speak from experience when we say it removes so many unnecessary appointments. In fact, the best tenants love having their time and property search taken so seriously. INSIST ON FACE-TO-FACE VIEWINGS Never rent your property to someone you haven't met. Regardless of anyone’s urgent timescale, and even if they’re moving from abroad, a face-to-face viewing is a priceless insight into someone's character and whether they actually like your property. Video viewings can be a useful first step for someone who can’t get there in person just yet, but don’t take your property off the market until you’ve personally shown them around. Here are some things to look out for on viewings: ● Do potential tenants offer to take their shoes off and ask before opening cupboards, particularly if your property is currently occupied? ● If you have family viewers, do they let their children run riot or manage them well? ● If someone gets delayed, do they let you know in advance, after they’re late, or only when you call them? Finally, listen to your sixth sense. After carrying out thousands of viewings, we know how to spot the really good tenants. If we have any doubts, we keep looking until we find the perfect match. DON’T SKIMP ON THE REFERENCING Once you've found a tenant you're happy with, don't ignore the referencing process. No matter how great you feel about someone, it's not the same as actually knowing that they can afford to rent your property and are financially stable. Here's our checklist of the references we take up and what we look for to identify the very best tenants. ● Landlord references are even more valuable if you can follow them up on the phone – an okay reference, rather than a glowing one, may hide a deeper story. ● Employer's references (or accounts for self-employed people) are essential to check income and work status. ● Bank statements not only confirm salaries; they also reveal spending habits and financial management. This helps you gauge whether renting your property will be comfortable for a tenant, or push them to their limit. ● Credit checks can deliver the odd surprise. Some tenants are genuinely unaware they have a CCJ (County Court Judgement), usually because they forgot to inform everyone when they moved. CCJs are often for small amounts related to phone bills or online shopping accounts, but they can give you an idea of someone's financial awareness. Just as you'd do your research when choosing a letting agent, thorough referencing for every tenant is time and money well spent. PREPARE A DETAILED INVENTORY A detailed inventory signed by the landlord and tenant is not only your protection in the event of a dispute, it also shows respect for your tenants by giving them an accurate record of your property’s condition when they move in. You can read all about creating watertight inventories in our previous blog, but as an absolute minimum, you should: ● prepare the inventory for signing at check-in, or put a condition in the tenancy agreement that your tenants have 7 days to question anything before the inventory is deemed as accepted; ● include EVERYTHING at your property, from the condition of kitchen and bathroom fittings to the state of the décor and right down to power sockets, light switches and doorknobs; ● take supporting photographs or videos for absolute clarity; ● use a third party like a letting agent or inventory clerk as impartial inventories carry more weight in the event of a dispute. Remember: it's a landlord's responsibility to prove any fault on the part of the tenants. Without clear before-and-after evidence you're likely to lose any dispute, so an inventory is a must-have for every tenancy. INSPECT YOUR PROPERTY REGULARLY Writing into your tenancy agreement that you’ll be carrying out mid-tenancy inspections shows that you’re serious about your property being looked after, and allows you or your agent to see that all is going well. Things to consider around mid-tenancy inspections include: ● an inspection in the first month with your tenants present to discuss any teething issues and uncertainties around how things work; ● carrying out future inspections at least once every six months (if your tenants are out, an inspection generally only takes between 15 and 30 minutes); ● checking for water stains, mildew, limescale and broken hinges and handles, along with testing smoke alarms and looking inside any appliances you supply. If you’d like to know more about how we carry out effective mid-tenancy inspections, take a look at our Rental Check-Ups blog for tons of expert tips. WHAT’S NEXT FOR YOU? Finding the very best tenants who are the perfect fit for your rental property is the special sauce in avoiding problem tenancies and creating stable lettings. It's also our speciality! If you're a landlord in Birmingham, we'd love to show you how we keep tenancies running smoothly at the rental properties we manage. Call us on 0121 427 4777 or email us at info@truemanestates.co.uk to see how we help our clients enjoy a profitable lettings business.

Despite changes to tax policy, buy-to-let remains a hugely popular life goal for many people as one of the safest long-term investment strategies. Property feels real with tangible, visible and stable assets that shares, crypto and foreign exchange simply can't match. Nonetheless, the upfront costs of buying an investment property are some of the biggest barriers for landlords. Buy-to-let finance requires higher deposits than standard mortgages, and the second-home Stamp Duty supplement adds another large sum. So the big question is: can you reduce your upfront buying costs for starting or expanding your lettings portfolio? Fortunately, the answer is yes, and in this week's blog, we'll show you how. DON’T GET MARRIED (YET) Did you know that if you're married or in a registered civil partnership, you're penalised over couples who haven't yet tied the knot? So if your plans include marriage as well as becoming a landlord, you could be thousands of pounds better off by buying a rental home before your wedding day. ● Married couples and registered civil partnerships count as one person for Stamp Duty purposes. ● Even if only one of you owns a home, when your spouse buys a property - even as a first-time buyer - you'll be liable for the second-home supplement of 3% of the entire purchase price. ● By holding off getting hitched until after you complete your purchase, you can spend the Stamp Duty savings on your wedding or honeymoon! If one of you doesn't earn enough to get a mortgage on their own, look into Joint Borrower Sole Proprietor mortgages. These allow you to pool your joint incomes for greater buying power, with only one of you listed as the registered owner, thereby avoiding the extra Stamp Duty for second homes. FIND A FIXER-UPPER Despite all the makeover shows on TV, most buyers don't want to live in a building site, particularly families and busy professionals. This often makes the market for unmodernised property sightly less frantic than for homes that are ready to move into. Fixer-uppers cost less, which means lower Stamp Duty when you buy. They also give you the chance for potential extra equity if the combined purchase price and refurbishment costs are less than the value of the property after you've renovated. ● Inefficient homes will lose value as bills go through the roof, so pick up a bargain and make energy improvements to increase your equity and achieve a higher rent. ● Make sure you have the cash for refurbishment costs - don't take on a project unless you've got ALL the money to finish the job! ● You can save on labour costs (often more than the materials) by completing simple jobs yourself like decorating, upgrading door handles and fitting blinds or curtains poles. ● If you're a bit handy and have the time and inclination, you can find tutorials on YouTube for larger jobs like laying floors, plastering, tiling and basic plumbing for even more cost-cutting. Caution: employ an expert for works like wiring, installing a boiler, knocking down walls or anything that needs a safety certificate or building regulations. The DIY saving could cost you dearly if things go wrong later on. FORGET WHAT’S IN VOGUE While most buyers are chasing Victorian, Edwardian, 1930s or brand-new homes in the poshest streets, the smart and thrifty landlord can look at other options. ● Choose accommodation over architecture and find homes from periods like the 1950s, 1980s and 1990s with a smaller fanbase. ● Remember that 'location location location' isn’t necessarily everything in lettings. Cheaper streets and neighbourhoods with lower purchase prices and Stamp Duty can very often produce higher yields. ● Use the tips from our Pretty Vacant blog on styling unfurnished homes to add designer elements to a plain interior. Tenants are usually far more flexible than buyers on exterior style and precise location, so why not use that to your advantage? TURN YOUR HOME INTO A BUY-TO-LET If you're already a homeowner, the cheapest way to own your first rental property is to turn your home into a buy-to-let. And if you're freelancing or permanently working from home, you could use your freedom to experience new lifestyles and locations as a digital nomad. Fancy swapping the big city for country life, saying farewell to mountains and hello to the sea, or even a stint abroad? It's all possible with a laptop and wi-fi. ● Ask local letting agents (like us!) for an idea of the potential rental value. ● Approach your lender to see if you can simply switch to a buy-to-let mortgage with them. ● Speak to an independent financial adviser to see if better deals exist. ● Decide if you want to include your furniture, store it, or sell it. Remember that buy-to-let mortgages come with lower loan-to-value ratios that generally top out at 80%. They're also mostly based on the monthly rental income being at least 125% of the mortgage payments. BUY AN EXISTING LIMITED COMPANY One of the main obstacles for landlords in starting or expanding their portfolio is the level of purchase tax. As well as the standard Stamp Duty rate, landlords pay a second-home supplement that adds an extra 3% to the purchase price - a significant upfront sum. However, things change dramatically when you buy a limited company that owns investment property among its assets. Stamp Duty on shares is just 0.5%, with no second-home tax Further ongoing benefits of owning your rental homes as a limited include: ● paying corporation tax on profits, currently just 19%, even if you're a higher rate taxpayer ● being able to claim the entire monthly mortgage payment as an allowable tax expense. ● no capital gains tax liability when you sell if you keep the profits in the company for improving or expanding your portfolio. While finance for limited companies isn't as widely available as regular buy-to-let mortgages, more and more high street names offer products alongside specialist lenders. Speak to a financial adviser to get the full picture of what's available to you. WHAT’S YOUR NEXT STEP? There's nothing we love more than working with local landlords who want to create and grow a profitable and popular buy-to-let business. Give us a call on 0121 427 4777 or drop us a line at info@truemanestates.co.uk to talk about the lettings market in Birmingham and how we can help you achieve even more success.

"Never work with children or animals" has been a showbiz saying since the 1930s, but many landlords also live by the same advice. Landlords are three times more likely than agents to refuse tenants with children or pets, but they're less likely than agents to deduct the cost of repairs from the security deposit. Do they want to dodge conflict, or could their tenancy agreements be insufficient to claim? Interestingly, multiple surveys of landlords have revealed how properly vetted families and pet owners are equally as good as - if not better than - any other tenants, and they come with the added incentive to stay longer to avoid disrupting their children or furry friends. With that in mind, and in light of the Government's proposals to remove blanket bans on families and pets, this week’s blog has all you need to minimise the risk and maximise the benefits of this growing and stable market. UNDERSTANDING THE MARKET FOR TENANTS WITH CHILDREN AND PETS Various studies contain valuable facts and figures about family tenants and pet owners. We've pulled together some of the most useful points here: ● 50% of the UK’s population owns a pet, yet only 7% of landlords advertise their homes as pet friendly ● In 2017-18, 35% of households in the private rented sector included dependent children ● 50% of new babies in 2019 were born into rented accommodation ● In a survey of 537 landlords, adults beat pets by a whisker for causing damage (85% to 84%), with children dawdling behind in third place on 54% ● A third of millennials are predicted to remain as tenants for their whole lives ● Parents with children tend to be older, have better-paid, steadier jobs, and want a long-term home for their family ● Research by the National Landlords Association suggests homes rented to families are less time-consuming to manage. As well as busting a few myths around tenants with children or pets, it's crystal clear that this part of the rental market is here to stay and only getting bigger. PLANNING FOR FAMILY TENANTS While the makeup of every household is different, modern family life has some fairly universal requirements. By meeting them, your buy-to-let will take them all in its stride: ● Easy parking for one, and ideally two, cars (either on or off-street) ● Full-size dishwasher and fridge/freezer; large capacity washing machine; powerful oven, hob and extractor ● Lawned gardens with sturdy fencing ● Washable paint and durable fittings - handles, locks, doorknobs, taps, toilet seats, switches and sockets ● Hardwood floors to living areas and bedrooms, and tiles for bathrooms and kitchens to withstand little accidents ● For stairs, choose a thick carpet and underlay to deaden the sound of children running up and down ● Storage space, and lots of it! As a final point, allowing families to decorate their children's rooms gives them a real sense of having a long-term home. So it's worth being open to suggestion, and to include any permissions and terms in the tenancy agreement. CHILD SAFETY MEASURES If your buy-to-let is designed for families, check that stair banisters are no more than 10cm apart, and that upstairs windows have restrictors to prevent young children from falling out. Your tenants may also wish to install additional child safety measures of their own, so arm yourself with a few options that combine peace of mind for parents with a reduced risk of damage to your property. ● Protective wall pads for use with baby gates to rooms or at the top and bottom of the stairs ● Drill-free child-proof catches on low kitchen cupboards ● Cleats to wrap any cords for blinds or curtains to prevent children or pets from getting tangled up in them. By offering some simple and clever tips, you'll show your tenants that you not only care about their safety but also want to safeguard their security deposit - a great start to the relationship! PETS WITHOUT PEEVES Many landlords are pet owners, so why would they refuse tenants with pets? It's a classic case of a few rotten apples spoiling the whole barrel, either through extreme scare stories in the press or a landlord's unfortunate personal experience. While the security deposit will usually cover the cost of repairs, it doesn't remove the work and disruption involved, which is the real concern for landlords (particularly self-managing ones). So, what's the answer? For greater peace of mind, and before accepting a tenant, try this checklist to see whether a pet is a good fit for your buy-to-let: ● Get a CV for any requested pets, including age, breed, behaviour, training, vaccinations, flea treatments and length of ownership ● Include a pet question when you write to their previous landlord for a reference ● Meet the pet in person or by video to see its behaviour ● Ask how much companionship the pet will have: particularly important for dogs who become distressed when left alone for long periods. Remember that most pets are not wild animals. They go a long way to making homes happy and are treasured family members for many people - sometimes more so than their relatives! CHILD AND PET-PROOF PAPERWORK Regardless of whether tenants are all adults or include children and pets, end-of-tenancy disputes usually arise from a lack of clarity at the beginning. By taking the time to get all the paperwork right from the start, you'll save yourself hassle later on. ● Make it clear in the tenancy agreement that your buy-to-let will be returned in its original state with any damage from pets and children repaired and decoration restored (unless your next tenants want to keep it) ● Include a clause that all pet smells will be eradicated with professional treatment or cleaning ● Have your tenants sign a comprehensive inventory of your property, including photos of all the fittings, walls, doors and floor coverings. In the future, depending on whether the Government's existing proposals around tenants with pets become law, you could also be able to require your tenants to take out a pet insurance policy. WHAT'S YOUR NEXT STEP? If you're unsure whether your buy-to-let in Birmingham is suitable for tenants with children or pets, or you'd like to talk about any aspect of being a landlord, why not get in touch? Call us on 0121 427 4777 or email us at info@truemanestates.co.uk for a friendly chat and expert advice.

Have you wondered about becoming a landlord but aren't sure whether it's still worth it or even your kind of thing? Well, you're in the right place! For anyone with a genuine passion for property, being a landlord is a very natural fit to supplement your income, build financial freedom and nurture your inner designer and entrepreneur. Providing comfortable and stylish homes that people enjoy living in is a genuine source of satisfaction and accomplishment for many of our landlord clients - they take real pride in what they do and find the experience truly rewarding, personally and professionally. It's also true that the buy-to-let landscape has shifted significantly in recent years. Changes in taxation, stamp duty, tenancy legislation and energy efficiency standards have put more responsibility on landlords, but buying to let remains a sound long-term investment strategy. With that in mind, this week's blog covers all you need to know about starting and growing your own lettings portfolio. BRUSH UP ON BUY-TO-LET FINANCE AND TAX Budgeting correctly is essential for any successful business, so here’s a quick rundown of lending criteria, stamp duty costs and tax allowances for landlords. ● Buy-to-let mortgages are primarily calculated on the sales value of a property along with the projected rental income, rather than on your personal income (although you'll generally need to earn around £25,000 per year to qualify). ● You can usually borrow a maximum of 75% of a property's value, subject to the monthly rental income being at least 125% of the monthly mortgage payments. ● As a rule, buy-to-let mortgages are interest-only, which means you only pay off the interest (and not the capital) but have lower monthly payments. ● Lenders tend to charge higher arrangement fees for buy-to-let mortgages than standard residential loans. ● As well as the usual Stamp Duty liability, investment property is subject to the second homes Stamp Duty supplement on the total purchase price (3% in England, 4% in Scotland and Wales). ● New tax rules mean you pay tax on the entire rental income with a tax credit available of 20% of your annual mortgage interest payments (this change affects higher rate taxpayers the most, and also puts some lower rate taxpayers into the higher bracket). ● You can also claim back the cost of letting agent and management fees, insurance, repairs, maintenance, accountants fees, utility bills, council tax and certain legal fees. Knowing the basics of buy-to-let mortgages, buying costs, and tax will help you assess the viability of any investment property accurately and swiftly. LEARN ABOUT LANDLORD LEGISLATION The rules and regulations covering lettings are famously ever-changing, with around 150 pieces of legislation to get to grips with. There are also some best practices you should follow to minimise the potential for disputes. Here's a small taster of things to remember: ● ID checks to confirm your tenants are legally allowed to rent your property, along with professional referencing ● Take out buildings, public liability and landlords contents insurance as a minimum ● A proper tenancy agreement signed by everyone who'll be living at the property ● A detailed inventory, including photographs, to be signed by your tenants ● Protecting security deposits in a government-approved scheme and registered on time ● Regular mid-tenancy inspections to monitor the way your property is cared for and to spot any problems ● Keeping certificates for gas, electricity and energy efficiency up to date. ● Checking the government's website for policy changes to stay on the right side of the law. This might seem like a lot - ok, it is a lot! - but with an experienced managing agent by your side, you can leave all that to them while you concentrate on the fun stuff, like growing your portfolio. THINK ABOUT YOUR BUY-TO-LET STRATEGY There are various ways to be a landlord, but the number one rule to keep your buy-to-lets occupied and in demand for years is to tailor them to your market. Start by asking local letting agents which homes they need more of, then consider the following: ● Singles, couples, students, professional sharers and families with children have different requirements and expectations around location, accommodation and specification. ● Landlords with older homes and low EPC (Energy Performance Certificate) ratings could sell up to avoid the costs of improvements, creating opportunities for new business models. ● Renovating means you'll need extra cash upfront, but you could increase your yield and equity fast, like James Baker and Dan Anson-Hart, who The Telegraph recently featured. ● Buying new might mean paying a higher purchase price, but you'll get better insulation, modern fittings, lower running costs and less maintenance in return. ● HMOs (houses in multiple occupation), serviced accommodation and holiday lets can be significantly more profitable, but they're also more work, and lenders usually require landlords to have previous experience. If you'd like to know what tenants want from a rental home in Birmingham, drop us a line at info@truemanestates.co.uk or call us on 0121 427 4777. CONSIDER SETTING UP A COMPANY FIRST When you set up a limited company before purchasing any property, every buy-to-let you add to your portfolio can benefit from the different - and often more favourable - tax policy. ● All mortgage interest can be claimed back against tax as an allowable expense. ● No Capital Gains Tax is payable on profits left in the company – making it cheaper to sell one of your buy-to-lets and reinvest the money to expand or upgrade your portfolio. ● You don't pay any stamp duty when you purchase a limited company that owns buy-to-let property. ● Mortgage lending to limited companies isn’t so widely available, but more lenders are entering the market. ● Each director of a limited company can take tax-free dividends up to £2000 per year, with anything over that amount subject to income tax. ● You can make family members directors to pass on assets more easily and minimise their inheritance tax liability. While there are clear benefits to owning your buy-to-lets through a company, it isn't necessarily the best route for everyone, so speak to a tax adviser first to make sure you pick the right strategy for you. BECOME A LOCAL LEGEND As a landlord, you're free to invest in property anywhere, but there are many advantages to growing a portfolio close to where you live, including: ● swooping on properties the minute they hit the market ● creating lasting relationships with local estate agents and being first in line when new properties become available ● having your ear to the ground about upcoming properties from your neighbours or local businesses ● building an expert knowledge of the local rental market and knowing which streets rent best to which type of tenant ● feeling connected to your portfolio and being able to visit tenants, meet contractors or inspect your property more easily Perhaps the biggest day-to-day advantage of keeping your portfolio close together is that, even if you buy every property through a different estate agent, you can keep all your rental homes with the same local managing agent. ARE YOU THINKING OF BECOMING A LANDLORD IN BIRMINGHAM? For some expert advice on the rental market in Birmingham and the best type of property to invest in, give us a call on 0121 427 4777 or drop us a line at info@truemanestates.co.uk - We'd love to help you find your first buy-to-let and to be part of your landlord journey.

The end of a tenancy is often filled with uncertainty. Landlords worry over the state of their property when it's returned, while tenants fret about how much of their security deposit will be refunded. Fortunately, there are many ways for landlords to design out the potential for damage, reduce the impact of wear and tear and alleviate the nail-biting as the check-out date approaches. Three of the most fundamental factors include: · the way the contract and relationship with your tenants are set up from the start · the liveability and durability of your buy-to-let when your tenants move in · how your tenants and property are managed during the tenancy. A shared goal of every landlord and tenant should be a home that's easy to live in, easy to love and easy to hand back in good condition. With that in mind, this week's blog has everything you need to help your buy-to-let stay in great shape during a tenancy, and to minimise gaps in your income between lets. THE DIFFERENCE BETWEEN DAMAGE AND WEAR & TEAR One of the challenges of lettings is that people have differing opinions over what counts as damage and what's classed as wear and tear. Despite the occasional grey area, they can be broadly defined as follows: ● Wear and tear are the natural consequence of everyday life that leads to things like frayed carpets; minor scuffs, chips and scratches on walls, woodwork or floors; fading by sunlight; plaster cracks; flaking paint on exterior woodwork; loose handles and locks. ● Damage results from accidents or negligence by tenants, their pets or visitors, from spilt wine glasses, toppled irons on carpets, and hot pans on worktops to ripped curtains, holes in walls and broken window panes. From a money perspective, gradual wear and tear is part of the routine maintenance expenses that any landlord should expect. But if a tenant causes damage, even accidentally, the cost is down to them. SET YOUR TENANCY UP FOR SUCCESS Every landlord wants their buy-to-let to be well cared for by their tenants. Never underestimate the influence you can have, and so much comes down to starting things off on the right foot, beginning with the initial viewing. Some of the measures we take include: ● talking to people about their lives and current home when we're with them on viewings to ensure they're a good match ● looking for a responsible character, part of which is the gut feeling from doing this for years ● proper vetting, including a credit check and references from landlords, employers and, if applicable, guarantors (you could also hold a video call with candidates from their homes for a visual insight into how they live) ● creating a detailed inventory with photographs and getting it signed by the tenant ● preparing a proper tenancy agreement that's signed by everyone who'll be living at the property ● protecting the security deposit in a government-approved scheme and in the required timeframe, then letting the tenants know it's done ● giving tenants a number and name to call for any questions or reporting issues, plus an out-of-hours contact for emergencies. Successful tenancies come from a combination of protecting your property and selecting the perfect people to live in it. But it's about giving them everything they need to independent and happy from day one, as well as clarifying their responsibilities and your expectations. DESIGN OUT DAMAGE AND PROBLEMS Making your rental property more durable will help it shrug off the rigours of daily life, meaning less work for you in replacing worn-out fixtures and fittings. How does your buy-to-let stand up against our checklist? ● Use good quality, washable paint (warm or off-white) for walls and woodwork that can be wiped clean during and between tenancies. ● Fix loose handles, hinges, hooks and locks; repair leaky taps and shower fittings; rectify ill-fitting doors and windows. ● Avoid budget carpets as they wear out fast and make homes look unloved. Replace them with engineered or hardwood flooring. ● Ensure wet areas like kitchens, bathrooms and shower rooms have tiles across the floor and up the walls to stop water leaking through your home or into neighbouring ones. ● Although timber worktops are lovely, they need looking after. Alternatives like high-quality laminate or composite stone are more resistant to damage and stains. ● Invest in mid-range appliances from brands like AEG, Bosch, Neff and Siemens. As well as being more energy efficient, user-friendly and longer lasting, they give your buy-to-let a dash of prestige. Remember that buying cheap generally means buying at least twice, and anything where there's a knack for using it, is a problem waiting to happen! REMOVE THE NEED FOR DRILLING HOLES Almost every tenant has things like art, photos and everyday essentials to hang that make their life easier, add their personality to a home, and help them feel truly settled. This usually means drilling holes, sometimes more successfully than others. Those holes will need filling when the tenancy ends, meaning new ones being drilled when the next tenant moves in. All of this can take its toll on your walls and tiles, but you can minimise the need for it by fitting hooks, racks and rails for: ● jackets, coats and bags by the front door ● pictures and mirrors in bedrooms and living rooms ● tea towels, aprons and oven gloves in the kitchen ● towels, robes and shower products in bathrooms For a small cost, you can add an extra touch of style and liveability to your buy-to-let while reducing the potential for damages and making repairs. MANAGE YOUR PROPERTY WELL Forgive us for saying it, but the most effective way to manage your rental property is to have a managing agent handling everything for you. We can call on a bank of trusted contractors at any moment, we've dealt with almost every problem you can imagine, and we know the law inside out. However, if you're unsure of the work that goes into managing a buy-to-let, or you're thinking of handling everything yourself, here's our tried and tested formula of service standards, wise precautions and staying legal. ● Carry out inspections at least every six months during the tenancy to review its upkeep, spot potential problems and check on your tenant's enjoyment. Take notes to avoid forgetting anything, and remember to look up at ceilings and then under baths, wash basins, toilets and kitchen sinks for any signs of leaks. ● Check the lettings industry press and government updates to keep abreast of the ever-changing buy-to-let legislation and be ready when changes take effect. ● Keep certificates for gas, electricity and energy performance up to date, making sure to book the inspections early to avoid any gaps in cover (and breaking the law!) ● Confirm that the rent has been paid on time each month, and give tenants a nudge where necessary. ● Respond quickly to any reported problems and keep tenants in the loop over contractor appointments, expected repair times and delays in getting parts. When you're actively engaged in your buy-to-let, it shows your tenants that you're taking an interest in them and your property. It's a really powerful message to send, and, in our experience, the behaviour is generally reciprocated. WHAT'S YOUR NEXT STEP? Are you a landlord in Birmingham? We'd love to show you how we can help you set your rental property up for maximum success and minimum hassle. If you're thinking about switching managing agents or stepping away from doing everything yourself, call us on 0121 427 4777 or email us at info@truemanestates.co.uk – we could be working together soon!

There’s been a flurry of news and commentary since the Government announced its Renters Reform Bill. Representing the biggest changes to the private rental sector in 30 years, the Bill is set for introduction to Parliament before March 2023, with a view to becoming law by early 2024. Despite dramatic headlines, the Bill isn’t only about the rights of tenants. In fact, Nick Beadle, Chief Executive of the National Residential Landlords Association, has said the “commitments to strengthening possession grounds, speedier court processes and mediation are helpful”. Nonetheless, Michael Gove’s rhetoric on June 16 th promised to protect tenants from “landlords who fail to repair homes and let families live in damp, unsafe and cold properties, with the threat of unfair ‘no fault’ eviction orders hanging over them.” Eliminating substandard homes from the rental market is obviously a welcome step forward, but what if you’re already a professional and responsible landlord? Our blog this week explores the proposals and what they actually mean for anyone owning a buy-to-let property. THE MAIN CHANGES FOR LANDLORDS & TENANTS One universally welcome intention of the Renters Reform Bill is swifter consequences for landlords and tenants who fail to keep up with their responsibilities. The proposed measures include: ● creating a new Private Renters’ Ombudsman to enable fast settlement of disputes through low-cost mediation ● speeding up the court process for evicting deliberately non-paying or disruptive tenants ● giving councils more powers to tackle unscrupulous landlords, with increased fines for serious offences ● requiring landlords to provide a good reason to refuse a tenancy to families with children (e.g. homes that are clearly too small or have no space for children to play) ● outlawing blanket bans on tenants who rely on benefits (although private market rents are generally far higher than local housing allowances) There’s some good news in here for everyone, and buy-to-let remains a sound investment for any responsible landlord with a long-term strategy. You can discover more about building a legacy with your own sustainable and profitable portfolio in our recent article, Doing It For The Kids . HIGHER LIVING STANDARDS FOR EVERY BUY-TO-LET Our landlord clients take pride in offering warm and comfortable homes, but it’s estimated that one fifth of privately rented properties are cold, draughty, damp or neglected. To combat this, the Decent Homes Standard that governs social housing will be expanded to include the private rented sector, requiring all buy-to-lets to be properly maintained, modernised and energy efficient. Here’s a rundown of the main proposals: ● The threshold rating for an EPC (Energy Performance Certificate) will be raised to C, up from the current D level. ● Adequate heating, noise insulation, kitchen and bathroom facilities will be compulsory in every rental home. ● Tenants will be able to claim back rent if their homes are substandard or fail to meet health & safety standards. The amount of work required will depend on the age and current condition of each individual property, so do get in touch if you're unsure which upgrades may apply at your buy-to-let. MAKING LETTINGS MORE PET-FRIENDLY Brits love pets so much that they’re now the most common reason for tenants moving home, according to the latest research from The Deposit Protection Service . While many landlords are open to pets, others are wary, and the Renters Reform Bill seeks to give both sides comfort and security by: ● requiring landlords to have a good reason for refusing pets, and giving tenants the right to challenge the decision ● giving landlords the power to insist on pet insurance to cover any pet-related damages ● amending the Tenant Fees Act 2019 to include pet insurance as a permitted payment (this could mean landlords taking out policies themselves to be sure of coverage, then passing on the cost to their tenants). It should be said that many tenants with pets take great care of their homes, and they prefer to stay in them for longer to retain a familiar environment. Although the Bill will remove blanket bans on pets, it should also give landlords greater confidence that they won’t be out of pocket. GOODBYE TO SECTION 21 The headline-grabber of the Renters Reform Bill is the abolition of Section 21 notices, also known as no fault evictions . Landlords have been portrayed as removing perfectly good tenants for no reason at all, but the term “no fault” doesn’t tell the whole story. What doesn’t get reported is that landlords are often forced to serve a Section 21 notice when serious rent arrears build up, because local authorities will only house tenants who are evicted, not those who voluntarily leave a home. In fact, many landlords never chase previous tenants for the money owed – they just move on and start again. The plans to replace Section 21 notices include: ● improving the grounds for gaining possession, particularly for landlords wishing to sell or move into their rental property ● overhauling the court process to make it easier and faster to evict tenants who are either wilfully not paying rent, or repeatedly engaging in anti-social behaviour ● providing more security for tenants by requiring landlords to have a good reason for ending a tenancy if the tenants haven’t breached their agreement. If the bill achieves all these aims, it could finally bridge the gap between confidence for landlords and the sense of stability for tenants – welcome reassurance for all. THE END OF ASSURED SHORTHOLD TENANCIES The Renters Reform Bill will move all tenants onto a single system of periodic tenancies, meaning they can leave poor-quality housing or move more easily when their circumstances change. Affecting new tenancies first, then existing tenancies twelve months later, the phasing out of assured shorthold tenancies will mean the following for rent increases and notice periods: ● Rent review clauses in tenancy agreements will be abolished, but rent increases will still be allowed no more than once per calendar year ● Landlords will need to give two months’ notice of any rent increase, and tenants will be able to challenge the new figure if they feel it is unjustified ● Tenants will need to give two months’ notice when leaving a tenancy to help landlords avoid lengthy void periods. If you’re concerned that tenants will keep leaving early and you’ll have constant changeovers, remember that tenants are actually staying longer and longer. This comes partly down to the time it takes to save up to buy a home, and also to people delaying milestones like marriage and children in favour of discovering what they want from life first. WHAT'S YOUR NEXT STEP? Landlords and tenants have been calling for changes in legislation for a long time, and while the new proposals certainly have positive aspects for both, they also raise questions. A new online portal is intended to provide greater clarity, but landlords will need to keep checking for updates to ensure they stay within the law. If you’re wondering what actions you’ll need to take under the new Bill becomes law, or you’d like a managing agent in Birmingham to take care of everything for you, call us on 0121 427 4777 or email info@truemanestates.co.uk – We're here to make your life as a landlord as easy and enjoyable as possible.