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During the coronavirus pandemic, housing has become something of an issue. Not for everyone, of course. Those who own properties and live in those properties may well have asked for a mortgage holiday, but otherwise things will have continued in pretty much the same way as it always has.

For landlords and tenants, however, COVID-19 has potentially meant something else entirely. Normally, if a tenant cannot or will not pay their rent, the landlord has the means to serve them a section 21 notice of eviction and start proceedings to remove the non-paying tenant from the property.

This all changed during the pandemic. Since work became scarce for some people, rent also became more and more difficult to deal with. However, evictions were put on hold for six months. This was to allow those who were in difficulty to hopefully get back on their feet or to find somewhere cheaper to live. It clearly helped the tenant. But what about the landlord? It would depend. If the landlord relied on the money that came in through rent to pay the mortgage on the rental property, they might have been able to apply for the mortgage holiday as mentioned above. This seems fair.

However, if the money was their income and they suddenly lost it, there wasn’t much recourse.

So it must have been with some relief that the ban came to an end.

Only now, with the pandemic far from over and the government’s furlough scheme winding down, clearly there is going to be more trouble ahead.

The Eviction Truce

The government have stated that there will be an eviction truce between 11^th December 2020 and 11^th January 2021. Essentially, no one will be made to move out between Christmas and new year.

Other housing announcements have stated that:

From 28 August 2020:

• Landlords who already had possession claims in the system – and who would have given a three months’ notice of these – must:

1. Serve a ‘reactivation notice’, informing both their tenant and the court that they wish to resume the action.
2. Provide relevant information about the tenant’s circumstances before the repossession is brought to court including any relevant information about the tenant’s situation with regard to COVID-19, including how their health and finances have been affected.

• Landlords who wish to bring a new possessions claim must:

1. Give their tenants at least 6 months’ notice before they seek to gain possession of their rental property through the courts. This includes section 21 evictions and rent arrears under 6 months. Only in exceptional circumstances i.e. such as cases involving anti-social behaviour or domestic abuse, is this notice period to be decreased as detailed on the government website.

All measures are to be in place until at least the end of March 2021.

If you need to find out more about how this might impact you as a landlord, or tenant, there is more information on the government’s website here. For more advice, contact Looksy.

From : https://news.sky.com/story/thousands-of-private-renters-at-risk-as-evictions-ban-comes-to-an-end-12077652

Tens of thousands of private renters in England and Wales could be at risk of losing their homes as a ban on evictions ends today.

Renters have been protected from eviction during the pandemic by a ban announced in March that was then extended, meaning anyone served with an eviction notice since 29 August has been given a six-month notice period.

But according to campaign group Generation Rent, up to 55,000 households which were served notices between March and August do not enjoy this protection.

The National Residential Landlord Association said it has encouraged landlords to “work with their tenants to sustain tenancies wherever possible”.

But it added it was important to begin tackling the “most serious cases” including tenants committing anti-social behaviour and domestic abuse, or with rent arrears which “have nothing to do with COVID-19”.

Labour has called for protective measures to be extended and has warned of a winter homelessness crisis, while the Local Government Association has said councils are “concerned that the ending of the ban could see a rise in homelessness”.

A spokeswoman for the Ministry of Housing, Communities and Local Government said: “We’ve taken unprecedented action to support renters by banning evictions for six months, preventing people getting into financial hardship and helping businesses to pay salaries.

“To help keep people in their homes over the winter months, we’ve changed the law to increase notice periods to six months and introduced a ‘winter truce’ on the enforcement of evictions for the first time.

“In addition we have put in place a welfare safety net of nearly £9.3bn and increased Local Housing Allowance rates to cover the lowest 30% of market rents.”

Picture the scenario: you let a tenant lease out your beloved home which was once, perhaps, your family home. Maybe you know the tenant already, or perhaps you just have a feeling they’re trustworthy people, so you don’t think an inventory is necessary… Fast forward to six months or a year down the road and those tenants have decided to move on. So far so good.

Before their moving day comes, you go to them and you see the wallpaper is ripped, there are marks on the paintwork, footprints on the mats, an enormous scratch on a worktop. You’re not best pleased at the very least, and you point out the issues.

You gently ask the tenants to resolve these problems before they move out but, to your horror, they let you know that it was that way when they moved in! You had taken a deposit but you have absolutely no evidence to claim that this damage was done during the tenancy because you have no inventory. And the tenants are denying all responsibility. What can be done? The answer is, pretty much nothing.

Regrettably, this will generally need to be chalked up as a lesson learnt and in the meantime, you have to devote your rental income to the maintenance and aren’t able to get a brand new tenant straight into the property.

An inventory is a binding legal document which provides a precise written record of the condition and contents of a home at the start of a tenancy.
It’s never ever been the law that you have to get an inventory, but if you do have one, one that is preferably prepared by an independent business, it will make life easier for you to be able to deduct monies from a tenant’s deposit to make good any damage done.

The Importance Of An Inventory

The inventory is only good if it’s accurate, so all defects have to be observed. Some landlords don’t realise that, although descriptions can appear uncomplimentary, it’s these descriptions that will enable them to confirm whether a tenant caused harm. Therefore, they need to be known.

Photographs are usually invaluable to go along with explanations. The images are going to immediately show the difference between a property on moving in compared to moving out. It’s an easy guide, but there should also be a written description of what has changed.

It’s suggested that a home is cleaned to a professional standard for the beginning of a tenancy, paying specific care to carpets, upholstery, curtains, bathrooms and kitchens. If something is soiled at the beginning of a tenancy a tenant can’t be charged to clean it at the conclusion. Landlords may also be encouraged to remember all receipts.

When a tenant is prepared to transfer right into a property, they need to proceed through the inventory carefully and also sign to accept the problem inside the article is as stated. If they have some discrepancies, they should be rectified or mentioned on the listing and initialled.

If you’re a landlord, precisely how can you tell which letting agent to work with? At Looksy, we’ve worked with many different agents, and we can let you in on some of the secrets of what you should be looking for when you are ready to engage one to help you rent your property.

Marketing

When you pick a letting agent, they should have good knowledge of the area in which your property is located. They should also be able to market your property effectively with a powerful online presence and a user-friendly website (the property portals are certainly useful, but they shouldn’t be relied on; a website is also absolutely crucial).

Images

The images used on that website or portal are also extremely important. Check them out to make sure they are of high quality, that they look appealing. In other words, when you look at the images of the properties that are already up for rent with this agent, are you put off by the photos, or are they attractive? Plus, have they taken the time to complete a floor plan? Floor plans are something that many prospective tenants are keen to see as it helps them to visualise the property better, and saves them, you, and the agent a wasted viewing if it’s not laid out as they would like, or it’s too small (or even too large) for their needs.

Letting Agent Paperwork

A great letting agent will help to make sure that you, a landlord, fulfil all of the legal requirements you need in order to rent your property. This includes EPCs, gas safety certificates, and deposit protection. They have to keep updated with all of the new laws to help you stay compliant.

Moving In

Does the agent have a separate move in team such as an unbiased inventory clerk? Is your agent considering each step of the system from offer acceptance to move in? The latter is a crucial area usually forgotten by agents and screwing up in this specific area might end up in the let falling through.

Call Looksy Inventories today if you need help in ensuring that your tenants are moved in safety and securely, and that your property is protected throughout their tenancy.

Inventories and check-ins… aren’t they pretty much the same thing? Do you really need to have both? Well, yes and no. They are similar, but they’re not the same and they do different jobs. As for whether or not you have to have one, that’s your choice – but we always recommend you do. It keeps your investment safe, and helps your tenant feel comfortable too. Let’s look a little closer at each of these reports and determine what the differences are.

The Inventory

When a new tenancy begins it is crucial to have a new inventory report carried out too. At Looksy Inventories we thoroughly and carefully inventory the condition and cleanliness of the property before the next tenants move in, giving you – and them – complete peace of mind.

Our inventory reports contain information on the condition of the walls, floors, and ceilings. We count the plug sockets. We note colours and patterns. We spot issues that you may not have noticed. We make sure you’re aware of it all. This accurate and detailed account on the condition of your property makes being a landlord or managing agent that much easier.

The Check-In

Whereas the inventory is ideally carried out by the inventory clerk by themselves, the check-in is carried out when the tenant is moving in. The inventory clerk will walk through the property with the tenant, pointing out anything that was noted on the inventory. This way, the tenant is made aware of any issues.

When the check-in is done, the tenant will sign the inventory to say they agree with it, or they will request changes.

Why It Matters

If there was to be any kind of dispute when the tenant moves out, the original inventory, agreed by both landlord and tenant, can be used to determine the condition of the property at the beginning of the tenancy. Without these reports, the tenant would not be able to be held responsible for any damage – who’s to say it wasn’t there before they moved in? Without the report, there is no proof either way.

Although most landlords will agree to having an inventory carried out, not as many choose to have a check-in done for the same property. Ideally, you would choose both to ensure that everything is as it should be.

For more information, please don’t hesitate to contact Looksy Inventories today – we can help you get the job done.

Looksy Inventories is a family run, independent, small business. A husband and wife team who want to enjoy their work, have more time for their family, but work hard in the process. We’re not a large corporation, we’re not a franchise with a huge back office behind us. We’re just us, just Looksy Inventories, just here for you.

Contact us today to find out more.

Nearly two out of every five tenants might be mistakenly losing their deposit money for claims on what is really fair wear and tear, a study indicates.

A survey of 2,000 tenants by Nationwide requesting explanations as to why renters have lost their deposit money found that thirty-nine percent had gotten deductions at the conclusion of the tenancy for basic wear and tear.

The research did not delve into the amount of the damage, but comes despite assistance from the deposit safeguards systems declaring that landlords must allow for “fair wear and tear” when considering deductions.

Assistance from the Tenancy Deposit Scheme (TDS) stated this ‘fair’ usage is among the primary disputes.

The TDS stated an adjudicator would permit fair usage based upon the duration of the tenancy, the number and age of the occupiers, and also the quality and state of the property when they first moved in. So clearly, having a thorough inventory is going to clear up at least that last point – if the previous tenants left the property in a bad state, why should the current ones be penalised?

This was not the sole reason behind deductions, with forty-one percent losing money due to lack of cleaning (and this number rose to sixty-eight percent for 18 to 24-year-olds).

One in seven had at least part of their despoit debited for redecorating expenses and twelve percent had been charged for damage to contents. Another five percent needed to cover damage to the building itself, and four percent had cash taken from their deposit for rent arrears.

When tenants did get their deposit returned, the typical time it took was 1.8 weeks.

Nearly half (forty-six percent) of private renters surveyed received the deposit back within 30 days of leaving, and almost one in five (eighteen percent) have been created waiting even more than three weeks along with an additional one in twenty five (four percent) waiting for over six months.

Paul Wootton, director of specialist lending for Nationwide, said: “While our investigation indicates that the majority of landlords return tenancy deposits fairly and quickly, it spotlights areas of confusion over what can or can’t be debited from the deposit.

“Both landlords and tenants are able to take steps that are simple at the beginning and end of every tenancy to guard against discrepancies and also understand their personal duties – causing a much better experience for everyone.”

Now, it’s clear that Looksy Inventories is going to suggest that a good inventory is one of these safeguards against fair wear and tear or anything else – but it’s true. So get in touch today to find out how we can help you.

We are all saying it, aren’t we: these are the strangest of times. And because of that, there are a number of things that are happening in all sectors that would never have happened before. In the rental sector, landlords might be finding that their tenants – tenants they’ve never had issues with in the past – are asking for a rent payment holiday due to lockdown and coronavirus.

In normal circumstances, most landlords wouldn’t need to be asked, and most wouldn’t agree even if they were. But right now, the government has put measures in place that mean landlords should be giving rent payment holidays when they can. It’s just a temporary thing; the rent would still need to be paid, it would just be delayed.

Yet not all landlords can afford to do this – they’ve got their own bills to pay too, and if they’ve not been able to negotiate a mortgage holiday on the property, there could be problems for them that seriously impact their future.

The Landlord’s Dilemma

Understanding, flexibility, and communication are going in order to be crucial in order to work through this, as well as to devising realistic repayment plans. For instance, you cannot look for double rent for the subsequent three months as this is simply not going to be possible.

It is a hard harmony to achieve, but if you’re considering what to do, here are some questions you might want to ask your tenants before you decide whether to allow a rent payment holiday or not.

Ask The Right Rent Payment Holiday Questions

1. Ask the tenant if they have been made redundant or been furloughed. There is a difference – made redundant and they might have a small payment but no income. Furloughed, and they should be getting at least 80 percent of their salary from the government’s scheme (and the other 20 percent is meant to be topped up by their employer). Do they really need a rent payment holiday in that case?
2. Can they supply proof of their current situation from their employer? This could be useful if you need to ask your mortgage provider for a mortgage holiday as you can explain that your tenant is having issues.
3. Have they developed an expenses spreadsheet to show their monthly budget?
4. Are there any loans or credit cards that payment holidays can be taken out on rather than causing issues with your rent?
5. Do they have savings? Tenants might be unwilling to make use of savings, but they may have to – we’re all having to use money we would rather use elsewhere if the furlough issue has been handed to us.
6. Is there anybody else residing in the home who can help? Or is there a family member who can assist in any way?
7. Make sure they know their rent remains legally due and will be a debt if they don’t pay – ask them if they are away of this, as it might be the catalyst they need to look at their savings or ask for family’s help.
8. How do they propose to pay back the rent payment holiday amount?
9. Would a rent reduction be better?

Finding out as much as possible about the situation, the reason for asking for a rent payment holiday, and what the tenants hope to do in the future regarding the debt is crucial – only then can landlords make an informed decision.

Vetting tenants is crucial. If you’re a landlord, locating the perfect tenant can make your life a lot more straightforward. The difference between getting a dependable tenant in your rented accommodation and an unreliable tenant is huge – it could even be the difference between getting a rent payment and not getting one at all. Plus, a good tenant will take care of the property, stay in contact if there is a problem (and respond to you if you contact them) and, when they leave, they’ll leave the place in exactly the condition you want them too – as evidenced by your inventory report.

Yet vetting tenants isn’t something that all landlords do. A letting agent will, of course, take on this task, but if you’re renting without using an agent, it really is so very important to carry out the right checks before allowing someone to live in your property. Of course, it’s true they might pass all the checks and still be terrible tenants, but if you don’t even try, you’ll really never know.

Vetting Tenants’ Affordability

Ensuring a tenant is going to be able to pay their rent is one of the most fundamental checks that you are going to need to carry out. If tenants do not pay promptly, landlords will struggle – it’s that simple. This is a business, and without an income that business will fail. If you have a mortgage to pay, then it becomes even more difficult when tenants don’t pay. Confirming a tenant is able to afford to spend their rent is a sensible step, and ideally you want to be looking at an income that is around 2.5 times the rent.

Payslips are the best way to gauge just want income is coming in, and asking for a reference from an employer shouldn’t be a problem either. A bank statement is going to give you plenty of information, as will knowing what rent they are currently paying. Taking all of this into account, you can work out how well a tenant can afford your rent.

Credit Checks

Landlords can often balk when they think about getting credit checks done. However, it is viral when vetting tenants. If a tenant has endured financial issues, it might influence a landlord’s decision about them. It might be that the economic challenges are actually in the past, with the applicant currently being in a stronger economic position now, in which case there will be proof of that. Either way, it’s important to know.

References

Contacting the tenant’s last landlord and asking for a reference about them is yet another sensible approach for landlords. If a tenant has triggered other landlord’s troubles, you might not want to risk them doing the same to you. There might be reasons the applicant had trouble with a particular landlord, and of course, you can dig deeper and find out the whole story, but again, the more information you can gather when vetting tenants the better. Yes, it will take you longer, yes it will cost you more, but the cost and the time and energy it will take if you don’t carry out these checks and something does go wrong will be much worse.

If you are a landlord looking for assistance in locating and vetting tenants and you don’t want to do it yourself, your best option is to find a good letting agent to help you. For peace of mind, it’s worth it.

Renting is more popular in the UK now than in the previous ten years. In 2017, 4.5 million households were living in rented accommodation, in contrast to 2.8 million a decade prior. It’s obvious from that leap that there tend to be more of us favouring the simplicity of renting a house instead of saving for a hefty deposit in order to own one. So, even though many have aspirations to get on the property ladder, it is evident that for some being a tenant is actually a far more appealing option.

In the event that you are presently renting and would like to know why this might be better for you than purchasing, below are several top reasons why it can make good sense to stay put.

Freedom and Flexibility to Move

Whether you are a first time buyer or you are buying your next property, dealing with the property market can easily be a long, hectic process. Keeping the freedom to move around without needing to be concerned about being a part of a chain or even being gazumped at the final second is actually a significant draw for renters.

Don’t Limit Your Life

As a tenant, you have a specific idea of just how long you are able to remain at the property, and that means you are able to simply begin searching for alternative accommodation if you don’t wish to renew the tenancy at your current place. This can be particularly advantageous as you are able to relocate to a completely different area, city, or perhaps country when your agreement comes to an end with no hassle (apart from the general hassle of moving house, that is!).

Sometimes, you may be in a position to end your contract early which adds yet another degree of flexibility. Should your circumstances change and also you have to move on fast, this is especially helpful; if you were tied into a mortgage it might be impossible.

No Mortgage to Pay

A mortgage is an enormous debt. Actually, it is probably the biggest debt you’ll ever take out and it takes decades to pay off in most cases. If a homeowner has to miss a payment, their credit will be negatively affected, and they might even lose their homes.

While there are repercussions to think about if you stop paying your rent, like the risk of eviction, you’ve much more chance to search for rental properties at a price tag that fits your income should your circumstances change. An understanding landlord will be helpful too, but either way, if you lose your job or have to take time off, it’s much simpler to keep going when you rent.

Mortgage Payments

As a tenant, your rent is set by the landlord. If they want to increase it, you can choose to stay and pay or leave. It’s simple. If you have a mortgage, the repayments are affected by interest rates and if the interest rates rise and the payment increases, you are tied into paying the more expensive mortgage. You can look around for a better deal, but this can be costly due to arrangement fees, and you might even have to deal with an early repayment fee too.

Less Work For Renters

Being a homeowner would mean you’ve responsibilities towards the property you own and these can be costly. Everything from ensuring the roof is in good repair to checking out the boiler is in working order are issues you need consider.

Renters, on the other hand, are not accountable for the upkeep of the property in the same way. You do still need to be careful with the property – remember, it’s your home but it’s the landlord’s house – but any major repairs should be dealt with by the landlord, unless your tenancy says otherwise.

Renting Is Lower Cost

The price of moving home as a homebuyer is pricey. With estate agents costs, legal costs, stamp duty as well as removal expenses you can very easily be taking a look at a good few thousand on top of the deposit you had to save up for.

When you start a new tenancy, there will be a five week deposit plus the first month’s rent, and that’s about it apart from hiring a removal company too. Much, much cheaper.