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Seven ways to prepare for renting out your property

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The removal of mortgage tax reliefs for landlords means that renting out a property profitably has increasingly become the preserve of the equity rich.

This is certainly the case for those who have chosen to become a landlord with the aim of making a successful investment.

However, you may find yourself in a position where you are a so-called ‘accidental landlord’. This is where people become a landlord through necessity rather than choice.

It may be because you need to move location due to work or personal circumstances and cannot facilitate the sale of your home for whatever reason.

It leaves you faced with renting out a property and if this is something you have never done before, it can be quite a daunting process.

We take a look at the steps you need to take as part of your preparation for renting out your property

We take a look at the steps you need to take as part of your preparation for renting out your property

Renting your home is a big decision so it's key that you do your research and consider how best to market your property

Renting your home is a big decision so it’s key that you do your research and consider how best to market your property

Lettings body ARLA Propertymark has issued some top tips to help you prepare for renting out your home.

Angela Davey, of ARLA Propertymark said: ‘Letting out your home is a big decision so it’s key that you do your research and consider how best to market your property.

‘It might seem like a lot to consider, but working through these steps, considering the type of prospective tenant you’re looking for, and seeking help from a professional will ultimately make the process as smooth as possible and ensure that you don’t end up in a vulnerable position.’

1. Check you can rent out your property

The decision to rent your home will mean that you go from being a homeowner and occupier to a landlord. This new status will come with great responsibility, ARLA Property warns.

You will need to check that your mortgage allows you to let out your property, as some agreements contain caveats to prevent homes from being rented.

If you are unsure, speak to your mortgage lender and they will be able to advise you accordingly.

2. Do your research

It is important to get to know your rental market. Take a look at similar homes to yours in the same area and find out how much they are being let for per month.

Be flexible with your expectations and use your research to inform your rental price. If your rent is set too high, or too low, prospective tenants will steer clear. A letting agent will also be able to help guide you.

Think about your target demographic and consider who your property would be suitable for – for example, young families, students or single professionals.

Once you’ve done your homework, set a competitive price and aim to keep the property filled at all times to minimise empty periods that will leave you without a rental income.

Before you put your property on the market, you'll need to decide whether to let the house furnished or not

Before you put your property on the market, you’ll need to decide whether to let the house furnished or not

3. Furnished or unfurnished?

Before you put your property on the market, you’ll need to decide whether to let the house furnished or not.

Consider if it is best to offer an emptier property, which is often the case as a blank canvas is usually more appealing.

Neutral wall colours will allow tenants to picture themselves living in the space and will also make a property easy to maintain at each check-in and check-out.

However, it’s also worth considering how your tenants may want to use the space. Many people now envision themselves working from home long-term, so offering to remove one bed from a two-bed property will give flexibility to those who want to use a room as a home office.

Personal belongings and anything of value should be removed from the property, and if you do decide to let it furnished, then be sure to clear out furniture that is old and tired, not fit for purpose or an ‘acquired taste’ to maximise prospective tenants.

Any furniture you leave in the property needs to be compliant to the Fire and Furnishings regulations.

4. Keep it clean

You should make sure that your property is clean and in good condition when you let it out.

If you hand it over in good condition, there’s a higher chance future tenants will take better care of the property.

Think about hiring professionals to give your home a deep clean. Professional cleaners will scrub everything from the windows to the oven, and they’ll even get down behind radiators.

And don’t forget the exterior of the house – often the exterior will be the first picture a tenant sees on internet marketing and will form an all-important first impression.

Consider how clean the windows are, how the paintwork looks and if there is one, maximise the front garden.

5. Electrics and appliances

There are likely lots of things in your property that you’ve gotten used to using, or may be replacing, that might not be straightforward for future tenants, so it’s a good idea to consider this in advance.

Dig out instruction manuals for the boiler, alarm system, cooker and any white goods, so the tenant has them to hand as soon as they move in and can safely and easily operate them.

By law there are certain checks you must carry out on the electrics in your property, a reputable letting agent will help to organise these checks, but it’s just a good idea to make sure all electrical appliances and wiring are tested regularly.

A rental property should be fitted with smoke alarms on every floor and carbon monoxide detectors where necessary.

If there is gas in the property you will need a Landlord Gas safety check carried out and a certificate provided prior to your tenant moving in. This check then becomes an annual one going forward.

You should also make copies of any keys that a tenant may need for windows and doors, or for gas and electricity meters.

6. Sort out the insurance

It is important that your current buildings and contents insurer is made aware of your intention to let your property, as your policy may need to be amended.

Consider also arranging landlord insurance, which will cover some potential financial losses connected with your rental property. This isn’t a legal requirement, but it could help to protect the building, your tenants and your investment as a whole – and some policies will also pay out if your tenant misses their rent payments. It is also worth considering pets when comparing policies.

7. Make finding a tenant easier

If you’re looking for a tenant and you’re not sure where to start, speak to a local lettings agent who will undertake the reference and credit checks (and right to rent checks if you’re property is in England) on potential tenants to secure the best option for you. 

If you choose not to use an agent, it is important you carry out these checks yourself.

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Experience of pandemic in Dublin and London worlds apart

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I have spent almost the entirety of the pandemic in London. And though the vertiginous changes in Irish and UK Covid policy over the past 18 months are easy to track through the news, a recent trip back to Dublin offered a fresh perspective.

The atmosphere on the streets is markedly different. And the day-to-day experience of life amid a pandemic worlds apart.

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The rent race! Return to office means tenants are fighting for homes

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Roseanna Lane has found it almost impossible get a two-bedroom property in her price range

Roseanna Lane has found it almost impossible get a two-bedroom property in her price range

Roseanna Lane thought she had plenty of time to find a new flat to rent when she gave notice to her landlord two months ago. 

But despite registering with eight estate agents in Richmond, South-West London, Roseanna and her partner Nick have found it almost impossible to nail down a two-bedroom property in their price range.

Even after raising their budget from £1,500 to £2,000 a month and considering properties farther afield, the couple, both 24, were repeatedly outbid by tenants willing to pay more. 

And they are not alone. Experts warn that the rental market is in chaos following a spike in demand after lockdown — particularly in big cities where workers are returning to the office, and student towns now that universities have reopened.

Agents say properties are being snatched up in as little as 24 hours — in which time applicants are registered, vetted, shown the flat and have their paperwork processed — before tenants move in a few days later. 

Renters also complain of being gazumped by others offering more money at the last minute.

Nervous landlords are desperate for financial security after the Covid-crisis ban on evictions, which only ended in May. 

As a result, many are increasing rents, carrying out stricter income checks and demanding that tenants commit to longer contracts. 

So even those who manage to find somewhere to live now face paying hundreds of pounds more per month, forking out a year’s rent upfront and locking into three-year tenancies for a property that likely doesn’t tick all their boxes.

Supply has also been hit by reforms to the buy-to-let sector, which has left landlords struggling to make a profit after losing lucrative tax breaks. 

Many have sold up to take advantage of the stamp duty holiday and rising house prices. Others have converted their properties to holiday lets.

Picky landlords and huge fee hikes 

Roseanna, who works in technology PR, says: ‘We’d look at a property that was not quite right but before we could make an offer, it was gone. We were refreshing websites such as Rightmove constantly.

‘Some of the prices were ridiculous — I found it sickening. Before lockdown, I was renting a two-bed flat in Richmond with a friend for £1,500 a month, but we were seeing some for as much as £2,250 a month that were just not worth the money.’

The couple were warned about a shortage of properties but thought the agents were just trying to get them to move quickly. 

They were also told that landlords wanted more security and were becoming far fussier about tenants.

Hot property: Agents say properties are being snatched up in as little as 24 hours -  in which time applicants are registered, vetted, shown the flat and have their paperwork processed

Hot property: Agents say properties are being snatched up in as little as 24 hours –  in which time applicants are registered, vetted, shown the flat and have their paperwork processed

Roseanna says: ‘We made sure to emphasise that we are a tidy, professional couple with stable jobs.’

She also found that landlords were unwilling to negotiate on rent. For one flat, the couple offered £1,800 — £100 below the asking price — and it was rejected straight away.

The pair later learnt that the person who secured the tenancy offered more than the price advertised.

They eventually settled on a two-bed flat outside Richmond because they were running out of time. They offered £1,600 a month — £25 more than what was asked.

They had to pay a holding deposit of a week’s rent to secure the property and agree to a three-year contract with a one-year break clause.

Pounce first thing or there’s no hope 

Ida Amegbey, who works for an investment platform, is struggling to find somewhere to live in Bristol.

She says the first hurdle is price. Over the past few years she has seen rent soar. Before the pandemic, a room in a shared house cost between £300 and £500 a month. Now, the starting price is £500. Meanwhile, the cost of a one-bed flat has risen from £600 to about £900.

And with a small pool of eligible properties, securing a viewing, let alone the chance to put your name on a list, is difficult.

Ida, 30, says estate agents are no longer taking your details to let you know when something suitable crops up. 

‘You now need to check the various websites first thing in the morning when new accommodation is listed, accept the earliest available viewing, then hope that by the time you view the flat, someone else hasn’t been for a viewing and requested to take up the listing,’ she says.

‘It’s not a case of finding a place you can afford or you like, or making sure the people you’ll be living with are compatible. You just take what you can get. It is frantic and stressful.’ 

Ida says she has heard of people sleeping on friends’ couches because they haven’t found a place to live after hunting for months on end.

She adds that tenants are also so worried about the rental market, they are putting up with more unfair treatment by landlords.

‘People I know are less likely to contest unfair charges or report too many repairs,’ says Ida. 

‘We feel we are tiptoeing around our landlords. Ours put the rent up by £100 a month at the start of the pandemic when two of my housemates had been furloughed and elsewhere people were losing their jobs. We just paid it.’

Stuck in limbo with time running out 

Bethan Howe has been looking for a four-bed house in Bristol with three other young professionals since June, when their landlord told them he wanted to sell their flat. 

He gave them until the end of September to find something but they have had no luck.

Bethan Howe has been looking for a four-bed house in Bristol with three other young professionals since June

Bethan Howe has been looking for a four-bed house in Bristol with three other young professionals since June 

Bethan, 23, says: ‘There are so few houses available for sharers — and when one does appear, we hardly even get the chance to arrange a viewing before they are booked up or people put in an offer without seeing the house. 

‘Also, one of the people I’m trying to rent with is doing a PhD and although she is salaried, landlords often consider her a student and reject us on that basis.’

Their landlord has now given them until November to move out, but Bethan says she is still not confident they will find somewhere.

Another tenant, who wishes to remain anonymous, told Money Mail she is currently battling her landlord’s demand for an extra £150 a month for a new tenancy once her existing one ends.

The 29-year-old pays £800 a month for a one-bed flat in Manchester, but has been told this will rise to £950. She says: ‘The justification has simply been ‘the market’. It’s crazy this is happening just before Christmas.’

Some pay a year’s rent up front 

There were nearly half (46 per cent) as many homes available to rent across Britain in August compared with the same month last year, according to estate agents Hamptons. 

At the same time, the firm saw an 8 per cent increase in people looking to rent.

The average monthly rent on a new let increased by 7.4 per cent across the country, from £1,010 to £1,085. 

Tenants in the South West of England saw the biggest hikes, with the average rent rising by 13.9 per cent, from £868 to £989, while those in the South East faced rises of 12.8 per cent — £138 more a month.

Along with Wales, Scotland has seen the sharpest drop in rental properties in Britain. As a result, the average rent in Wales has risen by 12.9 per cent while in Scotland it has gone up by 10.8 per cent, according to HomeLet.

Trade body ARLA Propertymark, which represents lettings agents, says the number of tenants being hit by rent increases jumped significantly for the second month in a row in August, with 79 per cent of agents saying landlords were raising rents, compared with 71 per cent in July.

It also reported record high numbers of new prospective tenants, with 107 per branch.

The house-share site Spareroom currently has more ‘room wanted’ adverts than it has postings for rooms available. This is only the third time this has happened in the UK in the past six years (the last was in 2019).

Lucy Devine, lettings consultant at Hamptons in Haywards Heath, West Sussex, says 27 per cent of properties have gone for over the asking price in the past year.

This means an extra £194 a month for landlords, on average.

Tenants hoping to make themselves more appealing to landlords have been offering as much as six months’ rent upfront.

Ms Devine says: ‘I had to block out a whole day for viewings of a four-bed home because the interest poured in. We usually spread viewings over a few weeks.

‘That day we had six offers, with tenants offering above the asking price, longer tenancy agreements and advance rent.’

Tenants who earn average salaries spend almost a quarter of their income on rent, according to the Office for National Statistics — in hotspot London you would have to spend 37.7 per cent of a typical income on rent.

Adam Stone, lettings manager at Winkworth’s Clerkenwell and City office, says: ‘We have been getting dozens of enquiries for all our properties and generally receive up to five or six offers, some well over the asking price.’

Joseph Cooper, from The Keel, a development of 240 apartments in Liverpool, says flats are being snapped up unviewed within an hour of being listed online.

Enquiries were up 1,650 per cent last month compared with the year before, he adds, as young people returned to the city after moving in with their parents during lockdown.

Amelia Greene, director in the prime lettings team at Savills, says the return of international travel, combined with full easing of lockdown restrictions, has sent the market into a frenzy.

She adds: ‘Demand is up across the board, but hotspots in North and East London have been particularly popular. 

In some instances, tenants are ensuring that they are the most appealing candidate by paying for a full year upfront, or by committing to properties unseen.’

Sarah Coles, from investment firm Hargreaves Lansdown, says: ‘Generation rent has been hit hard during the crisis. They were more likely to have borrowed money to make ends meet, and those already in debt were more likely to have borrowed more.

‘The pandemic pushed the finances of many of them to breaking point, so a hike in rental costs is the last thing they need.’

a.murray@dailymail.co.uk

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State’s population breaks five-millon mark for first time since Famine era

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Ireland’s population has broken the five-million barrier, while the level of smoking among the Irish has fallen to just 9 per cent.

Those are just two of the diverse facts published this morning by the CSO as part of the Ireland Yearbook 2021.

Publication of the yearbook, an annual snapshot of life in Ireland based on statistics compiled by the CSO, this year begins today with chapters on people and society.

It will continue on Thursday with chapters on business and the economy and will be followed on Friday with the chapters on tourism, agriculture, the environment and Covid-19.

According to the CSO Yearbook 2021, Ireland’s population breached the five million mark for the first time since the 1851 census. The population was estimated to be 5.01 million in April 2021, while the comparable population in 1851 was 5.11 million.

The increase in Ireland’s population was estimated to be 34,000 in the year to April 2021, the smallest increase since 2014 . Intuitively, this may have been due to Covid -19 restricting the movements of international workers, but students of this demographic may have to wait until Friday to fine out definitively.

In terms of regional breakdown Dublin’s population increased by 8,300 in the year to April 2021, bringing the population of the capital to almost 1.43 million, amounting to 28.5 per cent of the State total.

The Midlands, with just over 307,000 people (6.1 per cent), was the region with the smallest population in April 2021.

Smoking is more prevalent in the non-Irish national community than for Irish nationals, the CSO said. Some 17 per cent of non-Irish nationals reported daily smoking compared to just 9 per cent of Irish nationals.

Alcohol consumption and smoking was highest in the 25-34 age group (87per cent of this age group drank alcohol, and 14per cent reported they smoke daily), while the age group 75 years and over reported the lowest levels of alcohol consumption (56 per cent ) and smoking (4 per cent daily).

In other areas of Irish life:

* There were 1,101 breaches of Covid-19 regulations that were classified as crime incidents by An Garda Síochána in 2020, and these included breaches of regulations relating to domestic travel restrictions, licensed premises, wearing of face coverings and international travel.

* Rural households were more likely to report having some or great difficulty accessing a bank (44.2 per cent ) or post office (33.1 per cent) in 2019, compared with urban households at almost 17 per cent and almost 9 per cent, respectively.

*Of those young people who moved back with both parents since the onset of the Covid-19 pandemic, 22 per cent said their relationship with their father has improved. Some 31 per cent said their relationship with their mother had improved.

“When it comes to life events, births to teenage mothers continues to decrease with 830 births to women under 20 recorded in 2020, compared to 1,199 in 2015.

*Grace pipped Fiadh to the most popular baby name spot for girls. Jack retained the top spot as the most popular boy’s name, while the top three surnames for babies were Murphy at 602 (1.1per cent), Kelly at 523 (0.9 per cent ) and O’Brien at 467 (0.8 per cent).

“Marriage rates more than halved in 2020 most likely as a result of the pandemic. December proved the most popular month for opposite-sex couples to tie the knot as restrictions eased. February was the most popular month for same-sex couples.

The yearbook noted that in 2019 CSO surveys found the South-West reports the highest levels of some form of depression (mild to severe) at 18per cent of people aged 15 years and over. The West region reports the lowest levels of some form of depression at 10per cent.

The pandemic also had an impact on crime, as the total number of recorded crimes in 2020 fell sharply in the categories of burglary and related offences (down by 5,810, or 34.7per cent ) and theft and related offences (down by 16,684, or 24.5per cent ).

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