SAFE announces industry wide support for its new consumer focussed campaign, which promotes a simple mark denoting letting firms that protect landlords’ and tenants’ money through client money protection schemes, newly launched ‘by the industry* for the industry’.
Ron Gainsford, Chief Executive of the Trading Standards Institute: “The Trading Standards Institute welcomes the introduction and promotion of a single mark to identify letting agents who are in Client Money Protection insurance schemes. Raising the money for a deposit and rent places a great financial strain on many people who wish to rent property and it will be invaluable to have one mark that can be promoted as the sign on the door that their money will be safe with that letting agent. Having just one mark will increase recall levels of the scheme and enable consumers to make sensible and safe choices of letting agents based on a raised awareness of the Client Protection Insurance scheme. In turn this will help trading standards services in the fight to reduce the number of rogue and ‘uninsured’ letting agents who disappear with consumer money.”
Nick Cooper, Chair of the SAFE Steering Group said: “We are delighted to have already got such positive support for the SAFE concept, which will really help to get this off the ground. We believe this is a very positive move for the sector and having the backing of industry bodies will help enormously to galvanise the sector into demonstrating its commitment to best practice and protect consumers and landlords from those unscrupulous agents. We also anticipate that ultimately we will get Government recognition for this new mark.”
Firms will be asked to meet the Terms and Conditions of the SAFE mark. The SAFE mark will be available for use by all agents in CMP Schemes.
SAFE opened for registrations on 27 May 2011, Belvoir Lettings Guildford is already a member (registration no. S1292)
The scheme will launch to consumers later in the year following the campaign to attract letting agents to adopt the SAFE mark.
Support for SAFE has already been extremely encouraging with positive comments from the industry and wider:
The Council of Mortgage Lenders:
“The CML is pleased to support efforts to raise awareness of schemes designed to protect landlord client monies held by letting agents. We therefore welcome the campaign, co-ordinated by NALS, to offer a single mark to identify agents in Client Money Protection insurance schemes to raise awareness of the risks of using an “uninsured” agent.”
The Residential Landlords Association: Alan Ward, chairman
“A clear and recognisable brand will help build confidence with landlords as well as tenants who place large sums of money on trust with professional letting and management agents. It will place the onus on agents operating without CMP to answer the question “why not?”
British Property Federation
“This campaign brings home to landlords that their money is a lot safer with some agents than others. We want professional agents to prosper at the expense of rogues and therefore have no hesitation in supporting the campaign. We would encourage agents to join in their throngs and landlords to remember the old adage ‘you are better SAFE than sorry’.”
Specialist Letting agency based in Guildford. Offering Landlords free advice on property sourcing, mortgages, wealth management, tenant placement and property management
Tuesday, 28 June 2011
Saturday, 18 June 2011
Student Lets and the guarantor's role
As we start to reach the second busiest spell for students lets for the next academic year, I thought it might be helpful to go through a few things that might help parents and students alike regarding the process.
Perhaps the most important aspect to understand is that the group are "joint and severally liable" if they rent the house on one tenancy agreement. This is not relevant if you have one tenancy per room but most student lets will be under one agreement for the whole house.
This means that if Tom, Dick and Harry move in together each individual is responsible for the whole rent.
Example - 3 bed house at £1200pcm. Tom doesn't pay the rent due to financial problems or dropping out of the course. Dick and Harry are liable for Tom's share as well as their own. If you are acting as Dick or Harry's guarantor this means that you too are liable for Tom's share.
A quality agent or landlord will always chase Tom for the rent in the first instance and then go to his guarantor - 95% of rent arrears are solved at this stage and the other tenant and guarantors have nothing to fear.
If the issue still isn't solved then usually the group find a new 3rd person to fill the room and arrears don't build up.
It may seem a scary commitment as a guarantor but I am yet to know a case of one guarantor paying for the rent of a tenant they weren't originally guaranteeing.
The alternative way to find accommodation for students is as briefly mentioned above, rent a room on a tenancy solely for yourself. This will give you complete control but generally will require a bigger outlay as house sharing is the most economical, roughly speaking house sharing results in c£400pcm per tenant plus £10pppw for bills.
If you do wish to rent a room or studio on a sole tenant basis, generally speaking they will be starting at £500. We will have a number of rooms available from August in an excellent town centre location that start from £550 incl bills.
So what happens once you find somewhere to live?
Firstly you will be asked to pay a holding fee, usually around £500 which will go towards the first month's rent (so - not an extra cost). This payment secures the property for you.
You will then need to fill in application forms for each tenant AND guarantor. The guarantor will need to be credit checked and supply an employer's reference / proof of income.The student will be credit checked and where relevant need to produce a previous landlord's reference.
Both the tenants and guarantors will also need to show proof of ID and address.
Once the referencing is complete all parties will sign the tenancy agreeement and the total move in costs will need to be paid in cleared funds prior to move in.
Move in costs will include a referencing / admin fee for the agent, the first month's rent plus any deposit (usually 1.5 month's rent).
ACM student that doesn't know anyone in Guildford?
This is always a hard situation if you want to house share. Can you trust your new propsective house mates, will you even get on with them?
We can often put groups together, but it is much easier if you use ACM message board to communicate your need to form a group and then come to us as a group. We might have a 5 bed house and 2 groups of 2+3 which we can put together.
Please note that prices in the town centre, close to ACM, will be higher and you may need to stretch your budget.
Perhaps the most important aspect to understand is that the group are "joint and severally liable" if they rent the house on one tenancy agreement. This is not relevant if you have one tenancy per room but most student lets will be under one agreement for the whole house.
This means that if Tom, Dick and Harry move in together each individual is responsible for the whole rent.
Example - 3 bed house at £1200pcm. Tom doesn't pay the rent due to financial problems or dropping out of the course. Dick and Harry are liable for Tom's share as well as their own. If you are acting as Dick or Harry's guarantor this means that you too are liable for Tom's share.
A quality agent or landlord will always chase Tom for the rent in the first instance and then go to his guarantor - 95% of rent arrears are solved at this stage and the other tenant and guarantors have nothing to fear.
If the issue still isn't solved then usually the group find a new 3rd person to fill the room and arrears don't build up.
It may seem a scary commitment as a guarantor but I am yet to know a case of one guarantor paying for the rent of a tenant they weren't originally guaranteeing.
The alternative way to find accommodation for students is as briefly mentioned above, rent a room on a tenancy solely for yourself. This will give you complete control but generally will require a bigger outlay as house sharing is the most economical, roughly speaking house sharing results in c£400pcm per tenant plus £10pppw for bills.
If you do wish to rent a room or studio on a sole tenant basis, generally speaking they will be starting at £500. We will have a number of rooms available from August in an excellent town centre location that start from £550 incl bills.
So what happens once you find somewhere to live?
Firstly you will be asked to pay a holding fee, usually around £500 which will go towards the first month's rent (so - not an extra cost). This payment secures the property for you.
You will then need to fill in application forms for each tenant AND guarantor. The guarantor will need to be credit checked and supply an employer's reference / proof of income.The student will be credit checked and where relevant need to produce a previous landlord's reference.
Both the tenants and guarantors will also need to show proof of ID and address.
Once the referencing is complete all parties will sign the tenancy agreeement and the total move in costs will need to be paid in cleared funds prior to move in.
Move in costs will include a referencing / admin fee for the agent, the first month's rent plus any deposit (usually 1.5 month's rent).
ACM student that doesn't know anyone in Guildford?
This is always a hard situation if you want to house share. Can you trust your new propsective house mates, will you even get on with them?
We can often put groups together, but it is much easier if you use ACM message board to communicate your need to form a group and then come to us as a group. We might have a 5 bed house and 2 groups of 2+3 which we can put together.
Please note that prices in the town centre, close to ACM, will be higher and you may need to stretch your budget.
Tuesday, 14 June 2011
Houses in Multiple Occupancy
Had an interesting day today.
Guildford obviously has high rents compared to the national average, but in turn does attract higher earners due to the job market and local economy.
However, we still find that a high number of properties are let out to sharers. I went to a nice 3 bed semi in North Guildford today to conduct a market appraisal for the owner.
He currently lets it out to 3 sharers all on 1 tenancy, we were discussing which type of service would best suit him ( tenant find only or management) and I started to tell him our service levels and how due to our close working relationship with the local Housing officer we would be confident of giving him the best possible mangement service in line with local policies if it was re-let to 3 sharers on the new tenancy.
I also noticed certain safety requirements weren't quite right in the house at the moment, don't get me wrong, this was not a death trap but just needed a heat sensor in the kitchen, an extra smoke detector and fire blanket etc.
It transpired he wasn't even aware of what an HMO is. Now, I am not writing here in order to cast scorn on the landlord, the property is well maintained and beautifully presented. I suppose my point is that many properties in Guildford are let to sharers with landlords self-managing and many will be very knowledgeable, probably more than myself, however if you have a slight doubt or want any free advice please call me.
In the long run installing a few extra safety precautions can save you so much time, money and grief in the long run.
I am here to help if anyone wants some free advice on HMO safety!
Glenn Wakeham
Belvoir
01483 537200
Guildford obviously has high rents compared to the national average, but in turn does attract higher earners due to the job market and local economy.
However, we still find that a high number of properties are let out to sharers. I went to a nice 3 bed semi in North Guildford today to conduct a market appraisal for the owner.
He currently lets it out to 3 sharers all on 1 tenancy, we were discussing which type of service would best suit him ( tenant find only or management) and I started to tell him our service levels and how due to our close working relationship with the local Housing officer we would be confident of giving him the best possible mangement service in line with local policies if it was re-let to 3 sharers on the new tenancy.
I also noticed certain safety requirements weren't quite right in the house at the moment, don't get me wrong, this was not a death trap but just needed a heat sensor in the kitchen, an extra smoke detector and fire blanket etc.
It transpired he wasn't even aware of what an HMO is. Now, I am not writing here in order to cast scorn on the landlord, the property is well maintained and beautifully presented. I suppose my point is that many properties in Guildford are let to sharers with landlords self-managing and many will be very knowledgeable, probably more than myself, however if you have a slight doubt or want any free advice please call me.
In the long run installing a few extra safety precautions can save you so much time, money and grief in the long run.
I am here to help if anyone wants some free advice on HMO safety!
Glenn Wakeham
Belvoir
01483 537200
Saturday, 11 June 2011
Property Sourcing in Guildford
Having run our seminar on Thursday 9th June, I thought I would summarise the main points we spoke about when looking to buy a good buy-to-let investment.
1- Think about your objectives, what is your goal? To get both capital growth and a good yield at the moment can be tricky.
2- The best yields will be 2-3 bed properties.
3- Student properties continue to offer potential yield of 7% if you buy in the right place with the right size bedrooms.
4- Capital growth investments can be either properties with the opportunity to make improvements or buy something the over 60s would like. An ageing population that has equity in their larger homes will be looking to downsize in 15 years time, Bungalows, 2 bed ground floor flats near hospitals, surgeries and mainline stations will grow at a quicker rate than average increases.
5- Speak to an impartial letting agent NOT an estate agent when seeking advise. An estate agent might point you in the direction of a property they are trying to sell not one that is right for you.
6- Use a specialist to manage your property, their fees are tax deductible.
7- Stay up to date with local housing regulations and plans. Speak to a local expert or the housing officer
8- Use a specialist conveyancing solicitor, don't do this on the cheap!
9- Speak to a wealth management expert to make sure you structure the ownership of your investment in the most tax efficient way.
1- Think about your objectives, what is your goal? To get both capital growth and a good yield at the moment can be tricky.
2- The best yields will be 2-3 bed properties.
3- Student properties continue to offer potential yield of 7% if you buy in the right place with the right size bedrooms.
4- Capital growth investments can be either properties with the opportunity to make improvements or buy something the over 60s would like. An ageing population that has equity in their larger homes will be looking to downsize in 15 years time, Bungalows, 2 bed ground floor flats near hospitals, surgeries and mainline stations will grow at a quicker rate than average increases.
5- Speak to an impartial letting agent NOT an estate agent when seeking advise. An estate agent might point you in the direction of a property they are trying to sell not one that is right for you.
6- Use a specialist to manage your property, their fees are tax deductible.
7- Stay up to date with local housing regulations and plans. Speak to a local expert or the housing officer
8- Use a specialist conveyancing solicitor, don't do this on the cheap!
9- Speak to a wealth management expert to make sure you structure the ownership of your investment in the most tax efficient way.
Thursday, 2 June 2011
Accepting rent in advance - is it as easy as it should be?
It has come to my attention that the Housing Act has thrown up another potential issues for landlords that it was never intended to.
It can be every landlords dream when a prospective tenant might not be a UK citizen or have an appropriate guarantor, the cash rich tenant offers to pay the full rental amount for the fixed term. Most landlords, quite rightly would happily accept this but there are potential pitfalls one must be careful about.
Firstly, The Housing Act 2004 states that a deposit is:
..."any money intended to be held (by the landlord or otherwise) as security for -
a) the performance of any obligations of the tenant; or
b) the discharge of any liability of his;
arising under or in connection with the tenancy'."
So, in theory this could be mean that by taking the rent in advance, this money is taken against the tenants obligations and should therefore be registered with a relevant scheme!! There have been court cases where judges have interpreted it as just this, so be careful.
The obvious way to prevent this interpretation is adjust the period from monthly rent of let's say £1000 to annual rent of £12000. Great, so now the rent paid in advance can't but seen as a deposit....BUT
What about serving notice? Notice must be 1 period and not less than 2 months. What if after 10 months you needed possession of the property, remember the tenant wouldn't have passed normal referencing criteria so will they pay the rent come month13??
The solution is to serve notice at the start of the tenancy, plus stating that the period is annual not monthly.This way the rent can only be seen as rent and the notice period complies with legislation.
I urge any landlords that have received rent in advance to have a look at the wording of their tenancy and if it is a monthly period and/or they haven't served notice at the start of the tenancy - pray! Then think about whether they are using the right agent.
Belvoir Lettings Guildford will continue to protect their landlords as court cases set precedences. If you are looking for expert advice from a specialist agent in the Guildford area please call and we will see how we can help.
It can be every landlords dream when a prospective tenant might not be a UK citizen or have an appropriate guarantor, the cash rich tenant offers to pay the full rental amount for the fixed term. Most landlords, quite rightly would happily accept this but there are potential pitfalls one must be careful about.
Firstly, The Housing Act 2004 states that a deposit is:
..."any money intended to be held (by the landlord or otherwise) as security for -
a) the performance of any obligations of the tenant; or
b) the discharge of any liability of his;
arising under or in connection with the tenancy'."
So, in theory this could be mean that by taking the rent in advance, this money is taken against the tenants obligations and should therefore be registered with a relevant scheme!! There have been court cases where judges have interpreted it as just this, so be careful.
The obvious way to prevent this interpretation is adjust the period from monthly rent of let's say £1000 to annual rent of £12000. Great, so now the rent paid in advance can't but seen as a deposit....BUT
What about serving notice? Notice must be 1 period and not less than 2 months. What if after 10 months you needed possession of the property, remember the tenant wouldn't have passed normal referencing criteria so will they pay the rent come month13??
The solution is to serve notice at the start of the tenancy, plus stating that the period is annual not monthly.This way the rent can only be seen as rent and the notice period complies with legislation.
I urge any landlords that have received rent in advance to have a look at the wording of their tenancy and if it is a monthly period and/or they haven't served notice at the start of the tenancy - pray! Then think about whether they are using the right agent.
Belvoir Lettings Guildford will continue to protect their landlords as court cases set precedences. If you are looking for expert advice from a specialist agent in the Guildford area please call and we will see how we can help.
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