Author: Theresa Woodall

It’s safe to say, 2022 has been a year full of change for landlords. The last 12 months have seen more buy-to-let landlords selling up than ever before despite the demand for rental properties surging.

With new laws in force impacting landlords across the UK, the media has described such changes as a ‘war on landlords’, whilst tenants’ rights groups have applauded reforms around health and safety and eviction rules.

So, what next? What can landlords look forward to (or not) in 2023?

In this quick read, we look at some areas that could influence landlords’ profits and portfolios.

Rent increases

Starting with the good news, it looks like monthly rents and demand for rentals is set to grow in the new year. Instability in the housing market and increases in interest rates may mean that people looking for new homes put off buying for the time being and could rent instead.

Landlords can look forward to a surge in interested tenants and rising rents. In many areas, letting agents are seeing potential renters making over-offer bids to bag themselves a property.

Rising interest rates

Unfortunately, with the good comes the bad, and as interest rates rise, so too will the monthly cost of both residential and buy-to-let mortgages. Higher mortgage rates will be off-putting for many residential buyers and may force them into the rental market. However, landlords looking to renew mortgages or invest in new property will be facing similar hikes in the cost of borrowing.

Landlords may want to consider cheaper properties if planning to increase or start a portfolio to save paying out large chunks of their monthly rental income. On a more positive note, tenants may want to stay in their rentals for longer creating a stable income stream.

Availability of buy-to-let mortgages

In the last quarter of 2022, many lenders pulled their fixed buy-to-let deals from the market as a reaction to interest rate increases. Whilst it’s expected that these products will return to the mortgage market eventually, it may make borrowing for investment properties more difficult in the short term.

Expect tighter lending criteria and higher monthly outgoings.

Energy efficiency standards

The drive to make rental properties more energy efficient will impact landlords across the UK and whilst the rules won’t come into force until 2025, landlords need to start preparing.

Making changes to improve a rental’s EPC rating in 2023 will minimise the mad rush to do it when the law takes effect. Small steps such as getting a boiler serviced, improving insulation and draught-proofing and installing LEDs and smart appliances can make a huge difference to a rental’s energy efficiency.

In conclusion, the buy-to-let market still has much to offer those who are looking for a solid long-term return on their investment.

If you’re a landlord looking for new tenants, get in touch with our lettings team at Chamberlains.  

As a landlord, you might have invested in property for additional income; maybe it’s a way to save for your future, or perhaps you’re an accidental landlord and had to rent your property out due to a change in circumstances.

Whatever the reason, it’s a safe bet that you want to make a good return on your investment.

But while you’re happy to use a letting agent to find tenants, when it comes down to it, you just can’t bring yourself to pay them to manage the property for you.

This might just be one of your biggest mistakes.

In this quick read, we look at why paying for property management might be the best decision for your pocket (and sanity).

How much does it cost for an agent to manage a property?

Let’s tackle the hard bit first. Agents can charge anywhere between 10% and 15% for full management. So, if your monthly rent is £1,500, you could be shelling out up to £225 a month. It’s definitely not cheap, but it does offer peace of mind in the event of problems occurring.

What does property management include?

Once an agent is managing your property, they can take care of aspects such as finding tenants, communicating with tenants (and you), rent collection, deposit protection, repairs and maintenance, inspections and deposit disputes. It’s best to speak to your chosen agent to find out exactly what their fee includes.

They have a black book full of contacts to get all your repairs done, including gas safety checks and boiler repairs.

When should you consider property management?

If you’re a full-time landlord managing several rentals, it may not be the right choice for you. However, rent collection services could save you time.

If you own a single rental and have a demanding job or other commitments, paying a monthly fee for management services may be the best thing you do.

Think of it as an extended insurance policy. Not only will they do all the admin required when finding tenants, but they’ll also manage the day-to-day elements of your property, saving you time and hassle. They’ll also carry out regular inspections, which many landlords fail to do. Speak to your agent to clarify what’s included in their service.

Similarly, if you live far away from your rental property, using a property management service just makes sense. They’re closer and can deal with issues as and when they arise.

What else does property management offer?

Rules and regulations around rentals are always changing, and it’s an agent’s job to know what the government is implementing and when. They can keep you up to date with your legal obligations and ensure the property is fully compliant with health and safety laws.

Letting agents are also regulated, so must adhere to codes of professionalism, and have a duty of care towards you as their client.

If you’re looking for a property management service or help to find new tenants, get in touch with Chamberlains today.

If you’re watching your pennies this Christmas, here are some festive decorating ideas that are simple, effective and plastic-free.

With six in ten squeezed Brits saying they have less cash to spend due to the cost of living crisis*, Christmas 2022 is shaping up to be a pared-back affair for many people.

If you’re tightening your belt, the good news is that there are many ways you can make your home look, smell and feel festive without breaking the bank.

This back-to-basics approach has an added bonus, too – it’s better for the environment. By re-using items you have at home and foraging in your garden, you can cut down on unnecessary plastic and packaging.

• Go foraging

Bring a bit of the outdoors in by decorating your mantelpiece or dining table with foraged greenery. Use holly, ivy, yew or fir cuttings to create a festive feel. Once you’ve arranged your foliage (there are plenty of pretty pictures on the internet if you’re looking for inspiration), add bundles of cinnamon sticks and pinecones for interest.

• Homemade Christmas crackers

Christmas lunch wouldn’t be the same without crackers – and the cheesy jokes and party hats (that flatter no one) you get inside. As shop-bought crackers can be expensive and always seem to include mini plastic toys that last all of five minutes, why not create your own? To make:

• Fill cardboard loo rolls or paper towel tubes with homemade party hats, handwritten jokes and a few sweeties.
• Wrap each tube with colourful paper, as if you were making a bonbon.
• Tie each end with ribbon.

• Paper chains

Give the classic paper chain a Christmas makeover and create strings of snowmen, gingerbread men or stars. To make:

• Take a long rectangular strip of paper and fold it concertina-style.
• Draw half of your creation on the top side of the paper.
• Cut carefully along the outline you’ve drawn, making sure not to cut along the folds.
• Then unfold the paper and – voila! – your festive paper chain is ready for decorating.

• Clementine time

Dry clementines don’t just look the part; they smell great, too. To make:

• Cut several evenly spaced incisions from top to bottom around each clementine.
• Leave the fruit to dry out.
• Add string or ribbon and hang.

• Paper baubles

For real impact, make several baubles in varying sizes and hang them together. You’ll need waxed tissue paper, cardboard, glue, scissors and string. There are several easy-to-follow tutorials on YouTube explaining how to make these pretty decorations.

* Deloitte

For most people, Christmas is a blissful time, a chance to unwind with family and friends and recharge the batteries.

But if you’re a landlord, you can’t ever completely relax, can you?

There’s always a possibility that something could go awry at your rental property. A pipe could burst, the boiler might pack up, or an uninvited guest (we’re talking about a burglar, not Santa) could pay a visit.

Whatever the scenario, landlords have a duty of care to act promptly in an emergency.

The good news is that you can reduce the risk of having to curtail your festivities by taking a few proactive steps now in the run-up to Christmas.

Here’s a checklist to help you prepare.   

Talk to your tenants

Contact your tenants and wish them a happy holiday (it’s a nice thing to do, and a good way to build rapport). If your tenants are going away, remind them to lock up carefully as burglars often strike at this time of year. Also, ask if there are any niggling issues at the property that need addressing. It’s better to find out now than when you’re snoozing on the sofa on Christmas Day or raising a toast on New Year’s Eve.

Maintenance check

No doubt you already have a regular maintenance routine, but it’s worth checking that:

• The boiler is in good working order and has recently been serviced.
• Pipes are well insulated (this will reduce the risk of a pipe freezing and ultimately bursting and causing a major leak).
• There are no cracks in the pipework or brickwork. Water can seep into these cracks and freeze, causing severe damage.
• Carbon monoxide and smoke alarms are working.
• Gutters are clear of leaves, so rainwater drains away rather than seeping into the brickwork.

Prepare an emergency contact list

It’s useful to have the contact details of an emergency plumber, electrician and locksmith in the event something goes wrong. Having to ring around on a public holiday to find someone who can help will only add to the stress and waste time.

But wait, there’s one other option!

Savvy landlords enjoy a trouble-free Christmas every year by having a letting agent manage their investment property. A good letting agent will step in if there’s an emergency. That means you can switch off your alerts and let your hair down, safe in the knowledge that an expert is in charge.

To learn more about our property management services, contact us here at Chamberlains.

Here are ten ways to prevent a minor mishap or major disaster at your rental property this winter.

For many people, winter really is the most wonderful time of the year, a chance to crunch through frosty fields, make the perfect snow angel or snuggle up by the fire.

But from a property perspective, winter can be hazardous, with snow, rain, ice, high winds and low temperatures all posing potential risks.

Landlords who fail to prepare for these risks could face a hefty repair bill and a disrupted holiday season (not to mention the distress your tenants may experience if something goes wrong).

To avoid a nightmare before Christmas, follow this ten-step guide to winter-proofing your rental property.

• Have a qualified Gas Safe engineer check your boiler is in good working order.
• When the temperature plummets, pipes can freeze and burst. Stave off this danger by insulating pipes and the hot water cylinder. Pipe lagging and hot water cylinder jackets are cheap to buy and easy to install.
• Show your tenant where the stopcock is so that if a pipe bursts or tap breaks, they can switch the mains water off until a plumber arrives. Swift action will reduce the damage and repair costs.
• Mend any wobbly fences so that they can withstand heavy gusts. Also, ask your tenants to fix trampolines and garden furniture to the ground or store them somewhere safe so they can’t blow away or become damaged.
• Damp and mould can be harmful to health and cause significant damage to your property. As many people are avoiding using their heating this year due to the energy crisis, it could be a serious problem. Check the kitchen and bathroom extractor fans are working and that the property is well ventilated.
• Confirm that your insurance policy is up to date and covers storm and flood damage.
• Clear the gutters so that water runs off efficiently. If your gutters are overflowing with dead leaves, water will flow down the sides of your walls, causing penetrating damp.
• As December is one of the worst months for burglaries (criminals often take advantage of the dark nights), check that all doors and window locks are secure.
• Take the time to build a good rapport with your tenants. Encourage them to report any issues swiftly. It’s always easier and cheaper to address small problems than wait until they develop into major headaches.
• Get a letting agent to manage the property. They’ll deal with regular maintenance and be on call 24/7 to resolve any problems.

For more information about our property management services, contact us here at Chamberlains.

A property portfolio is a great way to generate income and build yourself a tidy retirement nest egg. But there’s more to it than shaking hands with new tenants and waiting for the rent to roll in.

You need robust systems and a professional attitude to protect your investment and ensure you don’t wind up out of pocket or on the wrong side of the law.

To find out what it takes to manage several rental properties, read our guide, the Five Rs of Making the Most of Your Property Portfolio.

Responsibilities

As a landlord, it’s important to understand your legal and ethical responsibilities.

There are more than 175 rules and regulations that you need to follow, covering everything from gas and electrical checks to handling deposits. Get something wrong, and you could be fined, face a lettings ban or even wind up in jail.

Landlords also have a duty of care to their tenants. In our experience, landlords who do the right thing by their tenants fare much better in the long run. Treat your tenants well, and they’re more likely to treat your property with respect.

Role

Your role is to ensure your property is safe and in good condition, but that doesn’t mean you literally have to do everything yourself. The most effective way to manage a portfolio is to draw on the expertise of professionals. A good accountant will advise you on being tax compliant and efficient, while a top letting agent will manage the day-to-day running of your properties. Having reliable tradespeople in your contacts and a savvy mortgage adviser is also worthwhile.

Rent

The key to a successful tenancy is to set the rent at the right price; this means finding the sweet spot between making a good return and securing a reliable tenant who stays the distance. And remember, the highest price isn’t always the best option. If you get too greedy and your tenant feels ripped off, they’ll move on quickly enough, meaning you’ll have to find new tenants and possibly cover a void period.

Repairs

Don’t skimp when it comes to repairs and maintenance. The longer you take to fix a small problem, the greater the risk that it turns into a major one. Set aside funds to cover repairs and maintenance, so you don’t get caught short.

Review

Even when things are going well, take time to review your situation. Are you paying too much for insurance? Are you still on the best mortgage deal? Does one of your properties need a makeover? It’s essential to regularly check how things are going and identify any potential savings or areas where you can improve.

To find out how you can ensure your properties are compliant and free up your time,  contact Steve Hill at Chamberlains on 01626 365055 or steve@chamberlains.co and find out more about our full management service.

Having fun is important, no matter how old you are. But how can you enjoy yourself without breaking the bank?

Now the cold weather has set in, we’re all stuck at home after a blazing hot summer of being out and about. And if you’ve got kids, you’ll know the importance of keeping them busy and tiring them out.

In this two-minute read, we look at how you can beat the boredom without spending any money. 

Games night

Who doesn’t love a board game? And who doesn’t own at least one (with pieces missing, of course) that can still provide hours of entertainment? Great for families with older children or flat sharers with no money and lots of time, an organised games night can keep everyone laughing, bantering and getting competitive. And it’s totally free.

Luxury spa

Fancy a spa day but don’t fancy the extortionate prices? A DIY day of luxury is definitely called for. Grab your plushest dressing gown, wrap a towel around your head and you’re halfway there. Google ‘homemade facemask’ and use ingredients like honey, oatmeal, avocado and olive oil (providing you’re not allergic to any of these items) to get started. Stick on some relaxing music and spend a few hours lounging about.

Come dine with me

Remember lockdown? When we were all so desperate to see other people, we sat in the front garden or planned elaborate picnics. Well, now we’re allowed to see each other, why not take advantage of it and plan some TV-inspired dinner parties? You don’t have to be a top chef; you could even stick to themes like freezer food or canned food surprise. Don’t take it too seriously; keep it affordable and get your mates round.

Home cinema

You might not have a fancy cinema room, but we bet you’ve got a TV and at least one comfy chair. Make your cinema night a bit special with a bit of popcorn, dimmed lights and (if it’s cold) grab your duvet or a warm blanket. Cosy nights in are always a great idea.

Get crafty

This one’s for the kids in your life. Get them off their screens and away from the TV by enjoying a craft day. Make race cars or castles out of cardboard boxes, get those old paints and crayons out, make cards just in time for Xmas, there’s lots to do. And if you can’t think of anything, then good old Google will have plenty of ideas for those egg cartons and plastic milk bottles.

With the current cost of living crisis, there’s no better time to enjoy some good old-fashioned fun. At Chamberlains, we’d love to know your thoughts. What are the best ways to have fun for free? Comment below.

A significant shift in how landlords file tax returns is looming on the horizon. Here’s what landlords need to know about the changes.

If you’re a landlord with a taxable income of more than £10,000, now’s the time to start thinking about new tax reporting rules that are coming down the line.

In April 2024, all landlords with an income of over £10K will have to comply with a scheme called Making Tax Digital (MTD).

While that deadline is 18 months away, it will come around quickly enough. It’s worth making plans now so that you can transition to MTD without any last-minute panic or getting on the wrong side of our good friends at HMRC.

Here’s a rundown of what MTD is and what it means for landlords.

MTD explained

MTD is a digital tax filing system which HMRC claims will make things easier and more efficient.

Larger businesses that claim VAT already comply with MTD, and in 2024, self-employed business owners and landlords will also be required to come on board.

Under MTD, people who self-assess, such as landlords, will be required to keep digital records of all income and expenses. They’ll have to send HMRC quarterly income and expenditure updates and file an End of Period Statement using approved third-party software.

Who will be most affected?

If you already use software to keep track of all your property-related admin, the changes won’t be such a big leap for you as you’re already tech savvy.

But if you’re someone who typically scrambles at the last minute to meet your tax deadline, and relies heavily on old-fashioned paper copies of receipts, then you’ll have to adapt.

If you fall into the latter category, it’s worth doing your homework on MTD now. This will give you time to get the right software and familiarise yourself with how to use it.

Tips and important considerations

• HMRC has various educational resources on its website and runs free tax workshops for people who self-assess. Why not invest a bit of time in learning more about MTD?
• If an accountant handles your tax affairs, talk to them about MTD and ensure they use MTD-approved software.
• Landlords with several rental properties will still only need one digital account. You can file your income and expenditure for all your properties on one account.
• A good letting agent will be an asset when it comes to MTD. If your property is managed by a letting agent, you’ll already have quick and easy access to the bulk of your outgoings, and they’ll also send you a monthly rental income statement.

This article is intended to provide general advice only. Always consult an accountant for advice and guidance specific to your situation. For more information, contact us here at Chamberlains. 

The rental market is a tough place to be, especially in the current economic climate.

With the cost of living crisis leaving many tenants feeling squeezed, now could be the right time for landlords to invest in rent protection insurance. But is it really worth it, or just another expense?

In this two-minute read, we look at rent protection insurance in detail to help you decide whether you need it. 

What is it? 

Rent protection is also known as rent guarantee insurance or landlord rent insurance.

It protects landlords against loss of rental income if a tenant is unable to pay.

Where a tenant continually defaults, the eviction process can take a long time, meaning you’re without rental income until you can resolve the situation. Rent protection insurance covers losses for up to 12 months; it also includes legal expenses which you may incur during the eviction process.

As with any insurance policy, there are lots of conditions and restrictions on what and when you can claim, so make sure you know exactly what you’re paying for.

How much does it cost? 

This depends on factors such as size and location of the property, type of property, the tenants you’re renting to, rental amount and so on. It’s best to shop around, and most insurance comparison sites will provide multiple quotes.

Rent protection insurance is tax deductible.

Many letting agents offer rent protection insurance to their landlords as part of their fees, which saves you the time and hassle of looking for an individual policy.

Why is it a good idea? 

Many landlords need their monthly rent to cover mortgage payments, so not having cover could prove a big risk in the long run. Some policies also cover short periods of vacant possession.

If you have landlord insurance (buildings, contents and so on), you may be able to add rent protection to the policy. Make sure you speak to your provider to see what they offer. And, if you own multiple properties, you may be able to arrange a single policy to cover them all.

Are you a landlord in need of a trustworthy and reliable letting agent? At Chamberlains, we’ve got you covered. Give us a call on 01626 365055 to see how we can help.