Property Blog

Rental survey reveals missed opportunity

Letting a Property — Tue, 23 Feb 2010 22:44:26 +0000

A recent survey conducted by rental website lettingaproperty.com, showed that 14% of enquiries received were from tenants that are unemployed and that 8% of these tenants were claiming Local Housing Allowance (LHA).

The survey, conducted in response to the current economic climate, was to assess the quality of enquiries received by the website based on the tenants disclosed employment status.

A snapshot of the last 168 tenants that made contact through the website, showed 77% as being in full-time employment, 4% were part-time employed, 4% self-employed, 1% students and 14% were unemployed.

Jonathan Daines, founder of the website commented, “I am pleased that the site generates quality leads for Landlords and Agents from employed tenants, however I am concerned that landlords may be missing a opportunity if they do not at least consider tenants claiming income support or LHA.

The most common reason given by landlords is due to a poor experience that they have had in the past with their local councils and rent payments.”

Daines adds “The landscape has changed over the last 18 months and the majority of local councils are aware of this. Having spoken to a number of Housing Representatives myself, I have been impressed with their proactive approach to handling tenant applications.

J Harris of Stonham Housing Association, an organisation that works in partnership with local authorities, commented that “In certain circumstances, Stonham Housing will work with the council to raise the tenant’s deposit plus the first month’s rent.”

It has been discussed in various reports that since the changes to LHA, where rent payments are now being made directly to the tenant, private landlords have been experiencing an increase in non-payment and late payment as a result.

Harris leads on to say that “most local authorities will allow for requests to be made for the rent to be sent directly to the landlord and the majority will also be able to provide a written reference for the tenant and will confirm the support the tenant is entitled to.”

Mr W Jarman, a private landlord in Runcorn has recently advertised a property on the website.

It was noted that he was keen to secure a tenant on Housing Benefit. When questioned about his advertisement, Mr Jarman commented:

“I have been a Landlord for many years and I find that tenants on LHA usually stay much longer in the property as they do find it difficult to move from one rented property to the next. This ultimately reduces my void periods and I have never had any problems.”

There are pros and cons to letting property to tenants on LHA and the advice given by lettingaproperty.com is to encourage tenants to seek support from their council representative and find out what services they may be able to offer in terms of securing a property.

Landlords are encouraged to consider LHA and should only make a decision once they have met the tenant and had a chance to discuss their circumstances.

There are certainly a number of tenants on HB that could turn out to be the “perfect tenant” where the rent is paid on time and in full – every month.

Lettingaproperty.com is a rental property website with properties advertised by private landlords and letting agents across the UK.

Tenants struggling to pay rent

Letting a Property — Fri, 12 Feb 2010 12:41:34 +0000

Most letting agents have seen an increase in tenants struggling to pay their rent, research has found.

A survey by Arla found 55 per cent of letting agents said tenants were finding it harder to find the money to make their rent payments.

Ian Potter, operations manager of Arla, said unemployment was the main reason people were not being able to pay rent to letting agents.

He said: “The housing market looks increasingly buoyant with demand for rental properties having risen strongly since October. The problem of rental arrears will therefore persist and potentially grow in seriousness.”

Mr Potter added that tenants were at risk of being caught in a web of debt unless they were able to find a solution to their financial problems.

Landlords may find that being sympathetic to tenants who are struggling to pay their rent will be rewarded in the future.

Tessa Shepperson, solicitor at LandlordLaw.co.uk, said landlords should be lenient with good tenants as they would then look after the property better.

This article was brought to you by Rentman the premium property management system.

British Gas slash energy prices by 7%

Letting a Property — Thu, 04 Feb 2010 09:21:16 +0000

Did you know that the average household spend on energy is around £1200 per year. According to Martin Lewis, the Money Saving Expert, by comparing energy suppliers, Energyhelpline could reduce that to around £900 per year.

After a series of recent price cuts and now with the news that British Gas prices have reduced by 7%, online energy prices have hit the lowest levels they have been for 18 months. Not since last June have prices been lower.

The cheapest deals currently come from big suppliers and some small new UK suppliers who are shaking up the market. Fixed or capped rates tariffs are at the lowest rates they have been since July last year.

An average home that has never switched before can now save £378 a year; not a small amount of money particularly in these credit crunched times.

Maybe 2010 is the year that you can really cut your energy bills?

Compare prices with EnergyHelpline and see if you can save by switching today!

Demand for rental properties continues to rise

Letting a Property — Tue, 02 Feb 2010 16:03:41 +0000

The UK housing market is experiencing a trend of ‘reluctant tenants’, following a shift in supply and demand for properties, according to the Association of Residential Letting Agents (ARLA). ARLA’s research, conducted across UK letting agents and landlords, reveals that the surplus of rental property is reducing, while demand for properties rises.

According to ARLA, this shift has generated a wave of reluctant tenants. During Q4 2009 an average 41% of members surveyed reported more tenants than properties - compared with just 24% last quarter. In addition, ARLA research among landlords revealed that 54% of those asked felt that consumers were being forced to rent rather than buy.

“New tenants include those homeowners who were forced to sell their home during the last year either due to financial instability or a job-move. And many people now in a position to buy are struggling to find the right property, as there is also a shortage of both properties for sale and realistic mortgages,” explained Ian Potter, operations manager at ARLA.

“This rise in tenants is a positive sign for the industry, as it indicates increased market movement,” continued Mr Potter. “It also shows that many more people will learn the benefits of living in rental accommodation.

“However, as demand exceeds supply we are faced with a new challenge - how to provide enough good-quality rental properties to meet this demand. These figures confirm our long-held view that a strong Private Rented Sector (PRS) will be fundamental in meeting the accommodation needs of future generations. But without significant government support, the sector will likely struggle.”

In August 2007 53% of ARLA members surveyed felt that there were more tenants than properties - but this figure then dropped, reaching a low of 10 per cent in February 2009. The number of available properties began increasing again last quarter.

ARLA research for the fourth quarter also shows that the period for which properties are unoccupied has fallen once again, with the average void period for the UK down from four weeks to 3.9 weeks, as tenants snap up available properties quickly.

source: http://www.arla.co.uk

TDS fees - how could this affect tenants?

Letting a Property — Mon, 25 Jan 2010 14:53:44 +0000

The TDS is one of the largest government backed deposit schemes in the UK. They are responsible for over £1b of tenant’s deposits. Recently, they hiked up Letting Agent member fees to counter-act the cost of handling disputes they receive each day.

As with most business operating costs - these are normally passed or absorbed by the consumer - and in this case, the Tenants.

lettingaproperty.com warns that some Letting Agents are already charging astronimical application fees to tenants (up to £400 per couple) and with the added presures that Agents have been under over the last year we could see agents increaing their application fees further.

Mr P Endacott, a Letting Agent himself has today commented on estateagenttoday.co.uk:

“We will be introducing a fee of £100 to both tenant and landlord in order to deal with any dispute. This may rise if the TDS insist on pulling their price increases out of a tombola.”

A typical application fee is around £100 for the first tenant and then £50 thereafter. The price varies significantly.

Talking to two midlands Letting Agents, the first confirmed a fee of £285 + vat for two tenants and the second Letting Agent was £100 for a couple.

These two agents are no more than 10 miles apart in neighbouring villages so it is advisable for tenants to be clear on the fees before they proceed with an application.

Private Landlords rarely charge fees to tenants and if they do, it is usually the cost of a single credit check (about £30). This is a massive incentive for tenants and why they seek out private landlords on the internet.

lettingaproperty.com is an online letting agent and property website dedicated to UK residential lettings and homes more than 70,000 properties to rent from letting agents and private landlords.

TDS price hike for Letting Agents

Letting a Property — Wed, 20 Jan 2010 13:15:01 +0000

Letting agents will find out the full extent of a price increase in their subscriptions to the Tenancy Deposit Scheme (TDS) this week.

Eddie Hooker, chief executive of pay-as-you-go deposit protection scheme mydeposits.co.uk, said the 23 per cent price increase had raised eyebrows among letting agents.

He said: “I believe this new two-fee instalment model, with the second instalment linked to the number of agent protections requiring Alternative Dispute Resolution (ADR), should be approached with care.”

If letting agents are unfortunate enough to experience disputes with tenants they can expect more price increases, he added.

TDS chairman John Hornsey defended the price increase, saying it was a fairer system of charging letting agents, based on how much they use the system, and claimed the price remained competitive.

Mr Hooker said the price increase showed the decision made last year by the TDS to only accept accredited agents was not working.

This article was brought to you by Rentman the premium rent management software.

Landlords can expect more renters to come into market

Letting a Property — Fri, 15 Jan 2010 13:29:10 +0000

Landlords can expect to see increasing demand for rented accommodation in the next few years, a new government report indicates.

This article was brought to you by Rentman the premium rent management software.

The Department for Communities and Local Government’s Survey of English Housing says there has been nearly a three per cent drop in owner-occupied homes since 2003, reports the Financial Times.

Housing minister John Healey said there could be a shift in attitudes with Britons happier to rent rather than buy.

Mr Healey said, in a speech to the Fabian Society: “Some [people] point to the recession having shaken people’s desire to invest in bricks and mortar. But in reality home ownership has been dropping since 2005. And I’m not sure that’s such a bad thing.”

The UK could move to a more European model of housing with renting more common than ownership in the future, Mr Healey added.
One in ten tenants no longer seek the status symbol of owning their own home, research by professional services advice website Unbiased.co.uk said last week.

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Watch out for verbal tenancy agreements

Letting a Property — Thu, 14 Jan 2010 12:25:08 +0000

Did you know that a tenancy agreement can be formed verbally as well as in writing?

For example, if you and the Tenant were to agree how much rent is to be charged, a move in date and for how long you will let the property, a tenancy agreement could come into force.

This means that both parties would be bound by the terms of the agreement just as if a written agreement had been drawn up!

If you are discussing a potential let or renewal of a tenancy, you should always take care that you do not create an oral agreement by mistake.

Use ‘Subject to Contract‘ in all correspondence!

Always use the words ’subject to contract’ on any correspondence relating to the potential let - this includes when leaving messages on voicemail or speaking directly with a Tenant.

Also - don’t sign the tenancy agreement unless you are absolutely certain you want to let the property to the Tenant. You will not normally be entitled to any ‘cooling off’ period.

Make sure your tenant has been fully credit referenced and a full background check has been made on any previous Landlords and employers.

Rooms to Rent near Crawley, Short and Long Term Lets

Letting a Property — Mon, 11 Jan 2010 08:41:24 +0000

Short and Long stay Rooms to Rent in Horsham, near Crawley from only £150pw. Ideal for transport links to Gatwick Airport.

Carylls Country House, a 15th Century Manor House, offers short and long stay rooms to rent and is centrally located in the peaceful village of Faygate which is only 3 miles from the Towns of Crawley and Horsham, Just 7 miles from Gatwick Airport.

Short Stay Rooms to Rent in Crawley (per week)

Clients stay at Carylls instead of Hotels as we are better priced and offer the extra self-catering fully furnished En-Suite Rooms. You just book the room per week from just £195.00 single & £249.00 double occupancy all inclusive and move in straight away. Just pay for your room, everything else is free:

Free 24hr Unlimited Wired Broadband.
Free On-Site Secure Car-parking.
Free Flat Screen Television With Free-view and DVD.
Free Weekly Maid Service and Linen Change.
Free Television Licence Fee.
Free On-Site Management.
Five Acre Gardens and Picnic areas.
No References.
No Contracts.
No Hidden Extras
No bills or utility accounts
All is included, Heating, Water rates, Council Tax, Heating, Lighting, Communal Charges, Hot & Cold Water.
In room kitchenette.
On-Site Launderette.
Stay for as long as you need.
NO HIDDEN EXTRAS – AND A LOT MORE.

Long Stay Rooms to Rent in Crawley (En-suite, minimum 2 months)

Carylls has a number of en-suite rooms to rent allocated for long stay. These have:

Kitchenette
En-suite bathroom
Unlimited wired broadband internet access
Satellite/freeview television
Central heating
and a lot more.

They are available at an All Inclusive rate starting from as little as £150.00 per week.

Our Guest House (Nightly Stay)

If you are looking for a refreshing break in the Arun Valley, then why not.

The Country House has recently been refurbished to the highest standard, providing you with luxury en-suite rooms and studios to rent in the perfect setting within a five acre landscaped garden with picnic area and beautiful views of the Horsham countryside.

To arrange a viewing for either room type, please call 0844 567 0578 or email info@lettingaproperty.com and quote LAP6130944.

Seasons Greetings from lettingaproperty.com

Letting a Property — Fri, 18 Dec 2009 14:26:28 +0000

Dear Reader

May I take this opportunity to wish you a very Merry Christmas and a prosperous New Year in 2010.

Looking back on 2009, it has been a very exciting time for the team at lettingaproperty.com and I would like to share with you some of the milestones that we are extremely proud of and a few exciting programmes we have lined up in 2010.

Since our launch of the new website on the 17th August 2009 we have experienced a tremendous response from the public and our industry peers. Our website itself, having been nominated for “Best Website 2009” by the prestigious Landlord Buy-to-Let Awards, has received a promising level of traffic.

In the last three months we have received just over 18,000 property searches conducted on the site and just shy of 10,000 individual property details requested.

What is more important is the feedback we have received from Private Landlords that have marketed their properties with us over the last few months. From our recent customer survey an amazing 100% of our Landlords would “recommend us to a friend or family member”. We strive to ensure that our service levels remain high and that our customers are continuously delighted.

We are also pleased to have launched our Property Management Service where we are offering Landlords a valuable full management service across the UK at very competitive rates. We have received accreditation as Members of the Ombudsman for Letting Agents which has confirmed our professionalism and given our Landlords a high level of confidence when dealing with us.

Looking forward to next year, we will be launching a few exciting programmes such as:

A UK wide Professional Inventory Service
A UK wide Network of Gas Engineers
We will be developing the website to make it even easier for landlords to publish properties and for tenants to search our database.
An out of hours answering service so that we may take tenant calls 24 hours/ 7 days a week – ensuring we never miss a potential property enquiry.
Building on our network of Portal Partners – our aim is to have a network of over 100 websites to send our property data to.
Video guides on how to let a property and helpful hints and tips.

So in summary, thank you to those customers that have supported us during our first few months and we look forward to assisting you in the future and I would like to extend a warm invitation to those whom have not had an opportunity to use our services as yet to contact us on 0844 567 0578 to discuss your property requirements.

Yours Sincerely,
Jonathan Daines
Co-Founder and Director