Avoiding Common Mistakes as a #Property Landlord - #Spencer. #Sheffield

Property Management Avoiding Common Mistakes.

Owning a property and renting it out is a challenge in itself, with the amount of time and effort that needs to go into advertising, viewings and then there’s the management side once a tenant moves in, not to mention all of the additional legal and regulatory processes that need to be followed.  Landlords have a lot to think about.

A good Managing Agent should take care of all of the legal obligations on the landlord’s behalf.  However, landlords should also make sure that they maintain a good relationship with their tenants, as happy tenants will generally pay their rent on time and look after the property.

A few common mistakes that landlords make which can upset their tenants, leading to future unnecessary problems are,

Ignoring property maintenance issues, as a landlord, it is your responsibility to ensure that the fundamental utilities of the property are maintained to a good standard. For example faulty heating or water leaks etc. are up to a landlord to repair and it can be annoying for tenants if landlords take too long to fix these problems.  Not only can this cause friction in the  relationship with the tenant, it can also cause the property to deteriorate, by not repairing the leak can cause bigger problems in the long run, leading to greater costs and at worst can even make the property uninhabitable for a period of time, potentially resulting in a loss of rental income.   If the property management issue is an emergency i.e. it relates to heating, plumbing, gas or electric it is useful to have some type of Home Emergency Cover in place to help with the cost of repairs. 

Not allowing tenants a bit of flexibility, whilst landlords should ensure that the relationship with their tenant remains professional at all times, it is also good to remember that they are also people who are using your property as their home.  As such, offering a bit of flexibility when it comes to decorating etc. This can go a long way in making tenants happy.  It can also add value to your property by increasing the rents if it is modern/desirable for future tenants.

Having the wrong insurance, Standard home insurance is not designed for landlords or rental properties, landlords will need to take out specific landlord insurances that cover their needs.  Specialist buy-to-let insurances can cover buildings and contents policies, as well as public liability insurance is needed as well, which allows a landlord to be covered against all possibilities of claims.  Landlords can also take out rent guarantee insurance, which can cover unpaid rent if a tenant fails to make their rent payments and remains in the property, along with the cost of issuing notices and court costs etc.

Not familiar with property management & legal requirements, Many landlords choose not to use a managing agent, which can save money in the short term, but often leads to greater costs in the long run, in terms of time and resources as well as financial. By having a good managing agent dealing with the administration and legal obligations the landlord can take a back seat focusing on enjoying the monthly rent coming in.

To speak to Spencer about renting your property, please call us on 0114 268 3682 or have a look through our website: Spencer

Thank you! Spencers Agents #Sheffield - #spencer #wearespencer #estateagentblog

THANK YOU!

Estate agents get a bad reputation. We know that we are not a loved profession but at Spencer, we work hard as a team to change that perception and give people the experience that they deserve from day one to completion and beyond. Be that as a seller, buyer, landlord, tenant, contractor or solicitor, we want you to want to speak to us and to work with us again!

As an established, focused, family run business we pride ourselves on our personal service and that’s reflected by the number of thank you cards & presents that we receive and the reviews that are posted on Facebook and Google.

So many clients come back to us again & again or recommend us to their friends and family, and for that we THANK YOU for supporting us.

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Does your #investment comply with #EPC changes in time for your next void period? Ask #Spencer #Sheffield

Energy Efficiency Regulation Changes

The government has decided that tenants in low energy-rated rental properties spend significantly more on energy bills than those in high energy-rated properties. According to figures, over 33% of tenants are reportedly unable to afford their fuel costs, this rises to 45% for tenants in F/G rated properties. 

If your rental property already has an energy efficiency rating of E or above, then you are already compliant and can relax FOR NOW.   If not then you need to start to think about what changes you need to make to improve your properties energy efficiency rating.

From 1^st April this year ALL rental properties with new tenancy agreements signed MUST have an EPC rating of at least an E, if you already have a tenant living in your property before this time who is happy to continue without signing a new tenancy agreement then you are safe FOR NOW.    These regulations will be extended to landlords of existing tenancies whether a new tenancy agreement is signed or not by 2020.

Things to do if you have a low rated EPC

1.       Check the recommendation section on your current EPC, this will advise you on what changes can be made to increase the rating. Some may be small others may be more expensive.  

2.       Speak to the assessor who did your original EPC as they may have more in depth advice without spending too much money.

3.       Make the changes in plenty of time of your next void time and have a new EPC generated

4.       BE COMPLIANT to avoid fines of up to £5,000 PER property.

If you need help or advice please contact our team at Spencer so that we can help you make sure you comply before the next void period so that we help to mitigate any losses. 

Call Lynn, Emily, or Ash now on 0114 2683682 

www.spencersestateagents.co.uk 

Tenant Fee Ban - #Blog by Lynn Braha of Spencer's Estate Agents #Sheffield S11

Agency fee ban!

Lynn Braha talks about the tenant reference fee ban that has been suggested. Lynn is a Senior Lettings Manager at Spencer, here on Ecclesall Road, Sheffield.

"How are things going to change you ask? I say for the worse. I’m not convinced this is going to help anyone. 

"The ban is meant to help people afford to rent in the private sector, or so they say but this is debatable. In my opinion part of the problem comes from local councils selling off the bulk of their housing stock and leaving them with less social housing stock for people on a low income. 

"The main suggestion to counter the fee ban is higher agency fees being charged to landlords for tenant finding and property management, in effect the landlords will pay the tenants agency fees instead, but this will no doubt encourage landlords to increase rents to cover this and so in the end it will be tenants who ultimately pay, as rents will go up overall and tenants could be having to pay what they cannot realistically afford.

"Landlords may also stop accepting people on housing benefit, as the rates will not cover the increased rents.  This will cause an increase in homelessness and so defeating the objective.

"Another suggestion is tenants will be expected to pay the whole tenancy rent in advance to reduce the risk to landlords again making it more difficult for people on a low income.

"How is this helping people in the long term, yes it will get them into a rented property initially but will they be able to afford to sustain it?

"In my opinion the fee ban is not the answer, a cap on these fees would have been a better solution.

"Maybe if the government had a register where agents can register bad tenants minimising the checks that agents need to do to reference potential tenants.

"Only time will tell if this idea is going to work, watch this space!"

If landlords want to talk to us about their investment property or properties we are happy to help. Call us on 0114 268 3682 or email rent@spencersestateagents.co.uk to arrange to meet up on Ecclesall Road. 

The Sheffield Property Market and Final Offers - how high do you go? #Blog by Philippa Peasegood at Spencer The Estate Agent

You've found it, your dream home, your forever home - exciting!!!!

So you ring the estate agent full of confidence to place your offer. Then come the dreaded words "we currently have 5 other offers on this property". Suddenly you realise your dream home is also someone else's dream too. How can you detach from this property when your emotions are so invested in it? Questions fly around your head, "what do we do to ensure we get it?" - and so the process begins....

Best and Final Offers

This may seem a harsh system when your heart is set on a property - but is it really that unfair?

Prior to reaching this stage the Negotiator will speak with each offeree informing them of the latest amounts and frequently applicants want to increase on their offer. This process can be lengthy with small increments causing the price to escalate bit by bit. It can be agony or irritating for you when the Negotiator calls back with the latest offer, particularly if it's the amount you would have also offered, and then you might feel the urge to increase, hence repeating the cycle. 

So, when is it right to call time on this pain and go to sealed bids? Typically when there are numerous offers, the Negotiator discusses them with the Vendor and then a date and time for final offers is agreed. At that point the top offer becomes the 'Highest Disclosable Offer' and all future bids are then confidential.

At Spencer. The Estate Agent all offerees are equal. We feel a level playing field can only be achieved if we don't divulge the positions of all parties, just the Highest Disclosable Offer, and this sits in line with regulations and advice. We are frequently asked by those in the running what the position of the other parties is, are they in rented, do they have a property to sell etc, but this information will only go to the Vendor. That way you can put an offer forward without gambling on the fact that you are in a better position than your rivals, and we stay within our responsibilities for protection of other people’s data.

The question begs - how high do you go? There is no crystal ball to give you that answer, but our advice is to decide on an amount you're happy with, be confident that that's the value you would place on the property, and put that forward. It's easy to get caught up in the heat of the moment and put a bid in to eliminate others, but would that give you peace of mind knowing that you paid more than you wanted to and eating into any future resale value? Take a step back, evaluate the situation and keep level headed. 

When the Vendor accepts an offer, all applicants are immediately informed. This can be devastating when your heart is set on a property, but there can only be one buyer.

There is a dream home for everyone, you may just have to offer on a few frogs to find your true love. 

Come and meet us at Spencer at 469 Ecclesall Road, or call us on 0114 268 3682 to have a chat or email us, if you prefer, at sales@spencersestateagents.co.uk and we will offer friendly advice. 

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