Month: April 2014

landlord mistakesWhen it comes to being a landlord, a lot of responsibility rests on your shoulders – not only do you need to keep good tenants in your property, you need to ensure the house is maintained well and make sure you put measures in place to prevent the tenants from damaging your property. In short, you need to protect your investment. With that in mind, here are some tips for common mistakes you should be careful not to make as a landlord:

1) Not taking out insurance for your rentals

This might seem like one way to cut costs, but if your tenants default on their rent or you need to seek legal advice to arrange an eviction, you will really feel the pinch if you don’t have rent guarantee and landlord’s legal protection in place. Additionally, you will have the option to take out landlord’s home emergency insurance if a boiler goes or even if you are faced with a pest infestation.

2) Not getting the correct paperwork in place and holding a deposit

It is going to be much more difficult to take your tenants to court to obtain compensation for damage they have made to your property. It is a much wiser decision to hold a deposit from which you can deduct the cost of making repairs (excluding reasonable wear and tear). Similarly, check references and make sure you have the correct tenancy agreement in place.

3) Not taking immediate action if the rent is late

Ensure it is clear in the tenancy agreement when the rental is due and if the tenants miss this deadline, take immediate action. Read our article on what to do if your tenants aren’t paying the rent.

4) Cutting corners when selecting tenants

Good tenants make being a landlord a pleasure cruise while bad tenants (or even a bad letting agent) can be an absolute nightmare. Ensure you have a strict selection process in place and if your property stands empty for a few months don’t rush to fill it with the “wrong tenants”; use the time to do necessary repairs and maintenance.

5) Not keeping good tenants happy

It is worth letting “good tenants” paint the walls a colour they like and not pushing up their rent sometimes because by keeping a good tenant happy, they will stay longer which will also indirectly save you money and time.

locked outIf you need to gain access to your rented property for any given reason, for example, to do a gas certificate or to show potential new tenants the property, but your tenant does not grant you permission to enter, you first need to get permission from the tenant and until given you are not legally permitted to gain entry without their express permission.

This may seem strange logic; after all, you are the owner, and they are simply renting, but a tenant has very strong occupancy rights and has the same rights to “quiet enjoyment” as they would if they owned the property on which they live. In other words, if you force them to grant you entry you may face a harassment charge even though the Landlord and Tenant act section 11 states that the tenant must allow you entry to the property for necessary repairs and maintenance.

What you should do

The long and short of it is that if they do not grant you access, you need to threaten to get a court order for “access” and then apply to the courts to do just that. Normally, your tenant will then grant you access to do the necessary inspection or repairs.

What you should not do

If you want to stay legally above board, under no circumstances do any of the following:

  1. Gain entry by force as you risk harassment or worse, an assault charge
  2. Have their services suspended such as gas or electricity because you will be infringing on their rights to “quiet enjoyment”
  3. Enter the property while your tenants are away without permission – if you do this you could be charged with trespassing.

If your tenants are not paying their rent and you need to evict them, read our advice on what to do if your tenant won’t pay the rent.

Normally you will request a deposit before your tenant moves in. This is to cover damage to any part of your property. This could include damage through negligence such as burns on the carpets. Another example is painting the walls bright colours and then not restoring them to their original colour before they leave. However, your tenants are not required to make repairs for wear and tear, such as carpets becoming worn over time or walls becoming scuffed and needing repainting. This is the landlord’s responsibility to maintain. In fact, the responsibility of keeping the property in a good condition falls largely on the landlords’ shoulders and deductions can only be made from a tenant’s deposit if they wilfully trashed the property. Or they broke or damaged a part of the property due to improper use or negligence.

Where the Landlords’ Responsibilities Begin and End

In addition to requesting a security deposit, it is the landlord’s responsibility (or indeed the letting agent’s responsibility) to go through the property with a detailed checklist. The purpose of this is to keep a record of existing damage before a new tenant moves in. The owner (or the letting agent) and the tenant can then agree on how and when repairs will be made. If the property is furnished, the landlord needs to provide the tenant with a detailed itinerary. Items such as a washing machine provided on the premises can pose a grey area because if the appliance breaks down from normal use, it will be the landlord’s responsibility to replace the appliance.

Making Deductions

You are perfectly entitled to make deductions for damage to your property that is not related to wear and tear. You could also charge for a cleaning service if the tenant has not upheld their side of the deal by leaving the place clean upon their departure. However, the tenant always has the right to request to see receipts for the cost of repairs. You are required to return the balance of the deposit including any interest earned.

If the tenant’s damage exceeds the security deposit, you will need to go to the small claims court to attempt to recover the additional damage.

pay rentWhen you buy to let, the benefits seem obvious: the rental income will pay off the mortgage, and after a given time frame you will receive a healthy supplement to your income from your additional property or properties.

However, letting out a property can equally be a nightmarish experience which results in you losing money and possibly defaulting on your mortgage. One idea is to take out Landlord’s insurance to cover for unforeseen circumstances such as your tenant failing to pay the rent and for legal fees associated with debt recovery.

If you are already in a situation where your tenants are living in one of your properties and not paying the rent, the obvious solution is to first communicate with your tenants, and if all else fails to evict them and get other tenants into your property, but you need to follow the correct procedures first. And always remember the golden rule: keep a record of payments and a paper trail of correspondence.

Won’t pay? Contact your Tenant to Request the Payment of Rent Owed

Follow these steps:

  1. Send your tenant a formal demand by first class mail – wait two weeks and then proceed to step 2 if you still haven’t received payment
  2. Contact the guarantor if your tenant has provided one, advising them that rent is in arrears
  3. Still no luck? Inform your tenant via writing once again that they are in arrears and let the guarantor know via writing that you will be taking legal action if the rent is not paid.

Tenants won’t pay rent: Eviction and Legal Action

Follow these steps:

  1. If you still have not received the rent owing to you, you need to give your tenant notice to quit to inform them that they must vacate your property.
  2. If they have not vacated your property within the time frame given on your notice to quit, you now need to give them notice to seek possession – now you do need to take legal action by applying for permission to take possession.
  3. The last step in getting your tenants evicted is to apply for a warranty for eviction where bailiffs will remove the tenants from the property at which point you can have your locks changed and request that the court makes a judgement for the rent in arrears and reasonable costs incurred.

Remember that legal costs can also put a dent in your pocket, so the best way to protect yourself financially if you have rental properties is to take out landlord’s insurance which includes legal protection.

Follow the above steps if your tenants won’t pay the rent owed to you.

Hail damage

Storm damage has been a regular topic in the news in the UK over the past few months, particularly in the south of England. As a result insurance claims have been multiplying, mostly through water damage. However although it’s been mostly the foundations of homes and furniture that’s been damaged by the storms that cause nearby rivers to overflow, roofs haven’t escaped from the calamity caused by high winds either. So how do you stand with regard to making a claim for damage to your roof in the event of a severe storm?

Most roofs are covered by general buildings insurance

Roofs should be covered by your house insurer but they can be a bit of a grey area when it comes to insurance claims, particularly as it’s often necessary to prove that it was the storm that caused tiles etc to come off, rather than it being just the case that the roof that had been neglected. If the latter was the case you’ll often find your insurer rules that you are liable for not looking after the roof and refuses to pay out. This can prove quite a blow considering most roof repairs can turn out very costly.

In order to prove that the damage wasn’t caused by storm damage but rather poor maintenance, the assessor would be looking at the mortar. If it had worn away then he’d be satisfied the high winds weren’t to blame. He or she may even ask to see reports showing the roof had received regular inspections.

House owners can be liable for falling roof tiles

If your roof tiles come off and damaged a car sitting nearby or even another property then you would be liable for this although, again, this should be covered by your buildings insurance under third party liability. The chances of this type of claim are slim however since the car owners insurance should cover the damage and, in the case of the nearby property, the owners own buildings insurance.

House owners with flat roofs can be particularly vulnerable

Flat roofs, unlike the typical upside down sloping V shape, require regular maintenance and are usually replaced every decade or so.

Not all insurance companies are equal

Some insurers are happy to give those claiming for a roof repair the benefit of the doubt, particularly the reputable companies. But that doesn’t apply across the board. Your best bet is to speak to your insurer’s claims department to find out what rights you have.

Find out more about our Home insurance here