Archive for December, 2009

How much attention do you pay to the energy efficiency of the properties you’re letting out? According to a new poll, this is something that many tenants are now paying attention to and would even be willing to pay more for energy efficient rental properties.

UK energy supplier E.ON, in conjunction with the National Landlord Association, recently surveyed tenants and landlords and found that 75% of UK tenants regard energy efficiency as a key factor when choosing where to live. Almost half of those – 48% – also said they’d be prepared to pay a higher rent for a more efficient home.

Of those interested in energy efficient homes, 60% were in the 25 to 34 year old age group and two thirds (66%) had higher budgets and were looking for properties at the top end of the market.

However, despite this interest in paying more for energy efficient rental properties, 43% of respondents said that they didn’t feel their landlord cared about this issue and didn’t seem to want to spend money on improving energy efficiency.

With energy efficiency clearly becoming a new selling point for rental properties, there’s scope for landlords to get more savvy and include this in their marketing. It doesn’t have to mean lots of extra expense – you can start with simple measures, such as using energy saving light bulbs and putting in extra insulation.

“Collectively, buildings are responsible for almost half of the UK’s carbon emissions, so home improvements benefit not only tenants, but also help all of us reduce our impact on the environment,” commented John Fawcitt, Energy Efficiency Manager at E.ON.

If you want to explore energy issues more, then E.ON have produced a new Landlord Information Pack – http://www.eonenergy.com/NR/rdonlyres/8ADF860A-EB4C-496A-8DBE-68C605793B39/0/Landlordpack_Layout1.pdf

As our previous post discussed, landlords never know when problems will occur with their rental properties. The cold, wet and snowy winter weather can trigger off problems though and some of them can be avoided by making time of maintenance.

Blocked gutters

It’s easy for gutters to become blocked, with leaves, moss and other debris and, whilst they may be fine left like this for a while, if the weather turns and brings sudden heavy rain or snow showers, it can pose a problem.

If there’s nowhere for the rain water to drain, then it will end up overflowing. As well as being an initial inconvenience to have water flowing where it shouldn’t, it can cause serious long-term damage to your property too, causing fascias, soffits and windows to rot and encouraging dampness.

The problem isn’t always helped by tenants not immediately noticing the issue, for example, if the gutters are overflowing at the back of the house.

Of course, the chances of this happening can be reduced by regularly having the gutters cleared out. It’s a good idea to do it in the autumn or early winter, after leaves have fallen and before the weather turns and to give them another clearout in the spring. 

Loose tiles

In heavy rain, snow and wind, it’s not unusual for tiles to become loose on the roof or even blow off. No landlord wants to be left with tiles that have blown off their properties, but it’s sadly not always something that tenants notice.

To check no tiles are loose, or have disappeared, an annual or twice annual maintenance check could help notice tile issues before they become too much of a problem. So get your maintenance check booked in before the weather turns and such services are in even more demand.

If you do experience problems at any of your properties, then your tenants will appreciate it if you help sort out the problem quickly. One of the benefits of using a property management company is that they should have a list of reliable maintenance engineers handy and should deal with problems promptly.

Problems with rental properties can occur at any time of year, but during the cold, wet or snowy winter months, they’re particularly common. Although some maintenance problems will always occur randomly and when you least expect them, some of the issues can be pre-empted and reduced by a bit of forward thinking.

Broken boilers

Boilers have a tendency to break down when you least expect them, but it usually seems to happen when the weather is cold and your tenants need heat.  If the heating hasn’t been on for a while, when it’s turned back on, problems can surface, or the boiler can breakdown if its old, being overused and is coming to the end of its life.

Not all boiler issues can be predicted, but if you schedule in an annual boiler service at the beginning of the winter, then some problems could be avoided. In case boiler engineers can’t come out immediately, or have to order parts, then it’s a good idea to have some emergency heaters available for your tenants, so they’re not left without any heat, especially during the coldest months of the winter.

Frozen pipes

With below zero temperatures and decidedly chilly weather, it’s not unusual for pipes to freeze. This isn’t a good scenario for property owners, as when water freezes it expands – and if pipes freeze, this can result in them bursting and causing all sorts of damage to your property.

During the winter months, frozen pipes are a risk, but there are things you can do to minimise the risk. All vulnerable pipes, especially those in the loft or any areas liable to freezing, should be adequately lagged – the thicker the better – as this can help prevent the pipes from freezing.

Problems can often occur when tenants go away, for example for Christmas or on holiday, and turn the heating off. In severe weather conditions, it can be helpful to leave the heating on to help prevent pipes from freezing. Alternatively, you could suggest they leave the loft hatch open, as this can help warmer air from other parts of the house circulate.

If you know your tenants are going to be away for a while and the weather is bad, then you could always schedule in a property visit to check that the pipes are okay in their absence and that nothing untoward has occurred.

The Chancellor, Alistair Darling, recently gave his pre-budget report, but are landlords and property investors going to be any better off? 

Sadly he dealt the news that the stamp duty holiday (http://www.investment-properties-for-sale.co.uk/2009/11/20/last-chance-to-take-advantage-of-stamp-duty-holiday/) would officially be coming to an end on 1^st January 2010. It’s helped so many people to save money with the purchase of properties, and helped prevent the property market from becoming stagnated during 2009, so it’s a great shame to see it go. It will return to the usual level, of buyers having to page 1% stamp duty fees on all properties priced at £125,000 or over. 

On a more positive note, the Chancellor announced details of a new boiler scrappage scheme – similar to the popular car scrappage scheme – that will be introduced early in 2010. Although details are sketchy at the moment, it will enable people who have old boilers with a G rating (the lowest efficiency level) to trade them in for £400 towards the cost of a new boiler or renewable heat unit.  

As boilers account for up to 60 per cent of emissions in the UK, it will not only give homes a more efficient boiler, but also help the environment too. It could also help landlords cope with the hefty cost of installing new boilers. It sounds promising, so we’re looking forward to hearing more details in due course about this scheme. 

For more details about the pre-budget report, see http://prebudget.treasury.gov.uk/

We previously looked at whether or not you’d consider letting a property to pet owners. If you’ve weighed up the pros and cons and decided that you’d like to give it a go, then here are five top tips for helping a tenancy to a pet owner go smoothly.

1. Check what pet it is

Before you agree to the tenancy, make sure you know exactly what pet, or pets, the tenants have. All pets have different needs and, ideally, you should decide on whether you’ll agree to the pet on a case by case basis. For example, small pets like goldfish or hamsters have very different needs and effects on a property than dogs or cats.

If a tenant has a particularly large type of dog or several pets, then it’s not out of the ordinary to ask to see the pets in advance so you can judge the situation properly.

2. Obtain a pet reference

It may sound a bit strange, but it’s honestly not that odd to ask for a reference for the pets. For example, the reference could come from a previous landlord who’s rented a property to the owners and pets, or from a vet.

As well as giving you reassurance that the pets will be well behaved, it’s also good to know that the pet owner is responsible and willing to cooperate to reassure you.

3. Get a pet policy clause

If you have tenants with pets, then you should insert a pet policy clause into your standard tenancy agreement. It needs to refer to keeping pets and should cover what pets are allowed or not.

4. Charge a pet deposit payment

All tenants should pay a damage deposit and, if there are pets involved and you’re worried that they could cause damage to a property, then you could add an extra deposit charge to cover this.

5. Do regular checks

If you’re still a bit nervous about letting your pride and joy to a pet owner and, especially if it’s an animal that could potentially cause damage, then you can check on the situation by doing regular landlord checks.

Just remember to keep your tenant fully informed as to when the checks will be and don’t turn up unannounced.

Every landlord hopes their property will be in safe hands, but sometimes things don’t always go to plan and emergencies occur. In order to help tenants act promptly in an emergency, it helps if they know a few key pieces of information regarding water, electricity and gas.

1. The location of the stopcock

In case of emergencies involving water, such as unexpected flooding or leaks in the property, or if the pipes burst during a cold winter, it’s essential to know where the stopcock is located so the water can be turned off.

It’s one of the first questions a plumber will ask if they come around to help sort out a problem and being able to turn the water off could prevent serious damage to your property. Common places where a stopcock may be located include under the sink, in the airing cupboard or even in the garage.

2. The location of the mains electricity switch

It’s important to know the location of the mains electricity switch in case there’s a problem with the electricity and it needs to be turned off. It’s also handy to know where the circuit breaker is located and how to reset it, in case the electrics trip at any time.

3. How to turn the gas off

In the case of a gas leak occurring, one of the first pieces of information given to anyone phoning a gas service helpline is to turn the gas off at the mains. To avoid any confusion with tenants about where the gas switch is, giving them the information could help prevent the situation getting worse.

Even if you’re using an agency who’ll respond to emergency calls, equipping your tenants with the details of where they can find these switches can save valuable time – as well as lives.

As tenants are not likely to need the information all that often, and may forget the locations if informed verbally, it’s useful to leave written details somewhere in the property so they can be accessed if required.

Pets or no pets? That’s the question facing many landlords these days as they decide whether or not they want to let their properties to tenants who have pets.

It’s not uncommon for landlords to specify that they don’t allow tenants to have pets. Some of the key reasons for not allowing animals are concerns about the property or furnishings being damaged, or worries about pets being noisy for neighbours. There’s also the issue that, where flats are concerned, pets such as dogs or cats are often impractical.

But many people do own pets and, according to research conducted by The Dogs Trust, 54% of pet owners are unable to find suitable rented accommodation due to landlords being wary of renting to them.

In the worst case scenario for landlords, tenants may ignore your wishes and smuggle pets in anyway. Not all pets are troublesome though and, if you’re finding it slow to let a property, then is it worth considering the potential benefits of a pet owner renting your property?

Benefits for landlords of letting property to pet owners

Although they may not seem obvious initially, there are some benefits to be had for landlords who allow tenants to have pets.

From a business and financial point of view, good properties that allow pets are often in demand and, as tenants have less of a choice available to them, they may be more likely to pay a higher rent for the right property.

It’s not just the inside of the property that matters to pet owners, but also the outside too. If there’s a garden, or the property is away from busy main roads, then it may be particularly suited for dog or cat owners.

Plus, as properties that allow pets are thin on the ground, existing tenants may be more likely to renew their tenancy, rather than having to worry about finding somewhere else suitable for their needs and their animals.

Before you take the plunge and decide pets are fine for your rental properties, don’t forget to double-check that it will be okay. For example, if you have a leasehold property, then you’ll need to ensure the lease does allow pets.