Author: Theresa Woodall

When they run smoothly, joint tenancies can be a good source of income for landlords. This three-minute read explains how to get the best out of them.

Joint tenancies are a great way for friends or couples to live together and share the rental burden. (Think about best buddies and flatmates Joey and Chandler in Friends, they had a ball, right?)

And joint tenancies can also be good news for landlords, providing steady long-term income and low tenant turnover. (If your tenants are happy and get along like Joey and Chandler, they’ll stay for years.)

But sometimes, the relationship between tenants turns sour and things can get complicated. Before we look at managing tenant relationships, here’s a quick recap on joint tenancies.

• As a general rule*, all tenants in a joint tenancy are liable for the rent. This means that if one tenant falls into arrears, the landlord can ask any or all the other tenants to cover the shortfall.
• The same goes for damage to the property – all tenants are liable. Even if only one tenant (or their guest) caused the damage, any or all tenants could be required to pay for the repairs.
• One person can’t pull the plug on a joint tenancy; the landlord and all tenants must agree to end the tenancy.
• If end-of-tenancy deductions are agreed upon, they’re taken from the overall deposit.

Getting the best out of a joint tenancy

• Never rely on one tenant to share important information with other tenants for you (they may fail to do so or may get it wrong).
• If there’s an issue with arrears, notify all the tenants and explain that they’re all liable. Tenants who have paid their share of the rent can be valuable allies and help persuade the tenant who is behind to get back on track.
• Remain professional and don’t get caught up in a melodrama between friends or lovers who have fallen out (they may want you to take sides). Remind all parties of their joint liability and encourage them to sort it out amongst themselves.
• Always notify people who sign up to be the sole guarantor on a joint tenancy that they’re liable for all rent and damages. Often a parent thinks they’re just covering their own child – not all the tenants.

To find out how Chamberlains can help manage your property and avoid tenancy troubles, get in touch.

*Always check the terms of your rental agreement and, if in doubt, seek expert advice.

This two-minute read includes some handy tax advice for landlords.

Our tax system is often criticised for being complicated and unwieldy, but by following two simple rules you can take the stress and hassle out of filing a return.

Rule Number 1: Do your homework

Raise your hand if you find the subject of tax dull? You’re not alone, many people cite tax as a conversation killer (right up there with religion and politics).

And because they find it boring, they don’t bother to learn much about it or keep abreast of rule changes.

The problem is when you’re a landlord, ignorance isn’t bliss – it costs you money. If you don’t understand the system, you can’t minimise your tax bill.

So do your homework and make sure that:

• You understand exactly what you can claim as tax deductible expenses. Many landlords grasp the big picture stuff but overlook the smaller items that, when added together, can significantly reduce their bill.
• You’ve investigated whether it’s worth setting up as a limited company. This option won’t be advantageous for everyone (it tends to be more beneficial if you own a lot of properties).
• You’ve looked into the possible benefits of putting your property portfolio into joint ownership. This is worthwhile if, for example, you’re a high-rate taxpayer and your co-owner is on a low income.

Rule Number 2: Get organised

Once you understand the tax rules, be disciplined with your record-keeping.

This means keeping receipts for repairs, maintenance work, safety checks, and insurance. The same goes for service providers such as cleaners, gardeners, and letting agents, and things like phone calls, stamps, and travel to and from the property.

We would advise that you tally up your expenses every month, instead of throwing all your paperwork in a drawer and having a panic later. If you’re disorganised, you’re much more likely to lose important documents or forget to claim something.

Don’t be an ostrich

Don’t be like one of the 1,790,368 people who missed their 2021 filing deadline and had to pay an HMRC fine.

As a landlord, you can’t dodge your tax responsibilities, so don’t bury your head in the sand. Educate yourself and be proactive.

We always advise our landlords to contact an accountant who has experience in dealing with property tax matters.

Contact us to find out how we help local landlords make the most of their rental investments.

This three-minute read looks at the benefits of cultivating houseplants and how to get started.

Houseplants add colour and freshness to work and living spaces – and deliver a host of health benefits.

As this week is Houseplant Week UK, let’s look at the do’s and don’ts of cultivating indoor plants.

Reasons to green your scene

• If you take good care of your houseplants, they’ll look great all year round. Even in the depths of winter – when the trees are depressingly bare outside – you’ll be surrounded by greenery indoors.
• Houseplants improve air quality because they absorb carbon dioxide and toxins and produce oxygen.
• As humans, we have an in-built connection with the natural world. Being surrounded by plants can boost our mood and lower anxiety.

Getting started

Before you rush out and buy a host of plants that you’ve seen on Instagram, do some research so that you select species that will thrive in your home or office.

Some plants need more sun than others, so assess the light quality in your chosen space (light intensity meter apps are available to help you do this).

Other issues to consider include heating (avoid placing plants near radiators) and ventilation (plants like well-ventilated spaces).

Pets

If you have a cat or dog, choose non-toxic species. Charities such as Blue Cross, Cats Protection, and The Dogs Trust all have helpful lists of poisonous plants on their websites.

Easy to grow

If you’re not green-fingered, go for what some in the gardening world call ‘unkillables’. Look for snake plants, spider plants, monsteras, sansevieria, aspidistra, or Devil’s Ivy (pothos).

If you discover a passion for indoor gardening, you can graduate to more high-maintenance plants like orchids, weeping figs, and Venus flytraps.

Watering

Your plant should come with clear watering instructions. Bear in mind that over-watering is a common problem. Signs you’ve overdone it with the H2O include slow growth, soft, yellowing leaves and mouldy soil.

If you’re unsure if your plant needs a drink, dip your finger in the first few centimetres of the soil. If it feels dry, then go ahead and water.

Drainage

Use plant pots that have a hole in the base so that excess water can drain away. Set the pot on a saucer to catch this water.

Dust

Dust can gather on leaves and block the light that plants need to thrive. Give dusty leaves a gentle dab with a wet cloth.

From all of us here at Chamberlains, thanks for reading.

We share how landlords can avoid feeling down on the year’s most depressing day in this two-minute read.

If you’re feeling a little flat, low, or down in the dumps next Monday, you won’t be alone.

The 17th of January is Blue Monday – according to some psychologists (and clever marketers), it’s the most depressing day on the calendar.

It’s a perfect storm of wintery weather taking its toll, the Christmas break becoming a distant memory, resolutions falling by the wayside, and credit card bills coming in.

All of this adds up to a formula for feeling, well, a little rubbish.

And our experience serving landlords in South Devon has taught us the four main things that get them feeling down.

The good news is we have the antidote to these that will bring the smiles back.

Here goes:

• Void periods – When your property is empty, it costs you money and can make you miserable. Good marketing, looking after existing tenants, and setting reasonable rents for well-maintained homes reduces the risks of voids.
• Troublesome tenants – This can cause landlords a lot of stress. But you can drastically lower the chances of a tenancy turning bad by doing things right from the start. Rigorous referencing and checks that weed out the good from the bad tenants are essential for a positive experience.
• Rules, laws, and regulations – The rental property industry in the UK has more than 300 different and constantly changing rules that affect landlords. Falling foul of these rules is costly and stressful and causes nagging anxiety for some landlords trying to ‘blag it’. Use an experienced letting agent to manage your property and keep you on the right side of the law.
• Property damage – All landlords should expect fair wear and tear to happen during a tenancy. But many get down in the dumps when their property ends up looking like the local tip. But it doesn’t have to be this way. The right tenants who are well treated reduce this reason to be anxious. As does having a good letting agent who carries out a thorough incoming and outgoing inventory as well as regular property inspections on your behalf.

For a happier, more successful rental property experience, call us today.

In this two-minute read, we look at four New Year’s resolutions landlords in South Devon can make to earn more money, have less hassle, and maximise their rental investments.

It’s 2022. A new year, new hopes, and a new focus on getting rid of old ways of doing things that are holding us back.

And landlords are not immune to wanting a fresh start. January always sees us have plenty of enquiries from landlords keen to improve the way they do things.

Below are four resolutions we can help landlords make, but more importantly, keep.

To make more money

This one is a balancing act. You want to be profitable without being mercenary. A popular way to improve your bottom line is to review your buy-to-let mortgage rates (when was the last time you did this?). You can also look at all your other costs, including insurance and maintenance plans and see if any savings can be made.

To have less stress

Being a landlord is a fantastic way to build a passive income and lay solid financial foundations for your future. But it can be stressful if certain things aren’t in place. You have plenty of responsibilities, and these can all add up over time. Working with an experienced letting agent can help you overcome any challenges and make your life easier.

To get better tenants

This goes hand in hand with our thoughts on having less stress. A bad tenancy is a nightmare. The good news is when you work with an experienced letting agency, the risks of these are massively reduced. Rigorous referencing and cross-checking of prospective tenants are perhaps the most crucial tasks that need to be done, professionally, if you’re to get a better standard of tenant.

To stay safe and legal

We’ve mentioned that mountain of rules and responsibilities all landlords face. Falling foul of these are costly, stressful, and in worst-case scenarios, can put you behind bars. Unfortunately, ignorance isn’t a defence when it comes to rental property law. By working with a letting agency that knows their stuff regarding the legal side of things, you are protecting yourself, your tenants, and your investment.

If improving the way your rental properties perform in 2022 is a resolution you’re making, get in contact with us today, and we’ll help you stick to it.

This two-minute read explains the benefits of having a letting agent on duty over the festive season.

Being a landlord is not a nine-to-five job. You can’t just switch on your out-of-office and mute your WhatsApp messages because you fancy a break.

Well actually, you can – if you have a good letting agent working for you.

Here are four ways an agent can help you through the silly season.

• Stress-free holidays

As a landlord, you have a duty of care to your tenant. This means you never know if a trip away to see family or friends or to catch some sun will be interrupted by an urgent call from your tenant.

With a letting agent, you can go away safe in the knowledge that you’re meeting your legal obligations and that any crisis will be dealt with by an experienced professional.

• Good contacts

Even the most laid-back tenant can be short of patience during the festive season.

If, say, the boiler stops working while the mother-in-law is in town, don’t expect to rest until it’s sorted.

Thankfully, a good agent has an extensive collection of electricians, plumbers, and gas engineers in their contacts list.

If something goes wrong, an agent can get someone out to your property – even on public holidays.

• Deal with tenant disputes

Sadly, long-standing issues between couples often come to a head during the holiday period, as people spend more time cooped up together.

As a result, landlords can find themselves dealing with two people who are in a joint tenancy but are very much at odds with each other.

This kind of situation can be tough to navigate and requires careful handling. Many landlords are relieved to leave it to an expert.

• Handle neighbourhood complaints

Neighbourhood rows about loud music, parking, and who put what in the recycling bin can flare up during the festive season.

You may have the skills to deal with these kinds of issues, the question is: do you want to spend your precious time brokering neighbourhood peace? If you don’t, get a letting agent.

To learn more about how we can make your life a lot easier, get in touch with Chamberlains.

This two-minute tale takes inspiration from a classic Christmas poem.

‘Twas the night before Christmas, when all through the house, not a creature was stirring, not even a mouse.

That was until Mum and Dad, joint owners of a rental property, received a panicked phone call from their tenant. 

What was the matter?

In a highly charged conversation, the tenant explained that a pipe had burst and was causing severe water damage.

The problem needs to be sorted – ASAP!

Dad, who had been hoping to settle his brain for a long winter’s nap, springs from his bed and hotfoots it over to the property.

Meanwhile, Mum desperately tries to find a plumber who can help (their usual one must be enjoying a few well-earned festive pints as he’s not answering his phone).

After several stressful hours, the leak is fixed, and the tenant is comfortable in a hotel.

Mum and Dad collapse into bed. They grab a few hours of sleep before their children excitedly shake them awake. It’s Christmas Day. But neither of them feels very merry.

It was just bad timing

The whole episode hangs heavy over Christmas Day. But is there anything else Mum and Dad could have done?

They keep their investment flat in good condition. The leak was just bad luck, wasn’t it?

What about a letting agent?

Oh yes. If Mum and Dad had used the services of a letting agent, things would have been different.

The panicked call from the tenant wouldn’t have come through to them at all. The mad search for a plumber and alternative digs for the tenant would have been the agent’s responsibility.

Mum and Dad would have slumbered all snug in their beds through the whole episode.

What happened next?

As they both have busy jobs, and family time is so important to them, Mum and Dad decide to use a letting agent.

That way, they can focus on what they do best professionally and leave the day-to-day realities of property management to an expert.

Best of all, they know that next Christmas – and at any special time of the year – they can completely relax. Now that’s a happily ever after we can raise a glass to.

From the team at Chamberlains, Happy Christmas to all, and to all a good night!

In this two-minute read, we look at the implications of selling a buy-to-let property.

If you’re a landlord looking to downsize your property portfolio, you may be thinking about selling one or more of your buy-to-let properties. This process isn’t always as straightforward as a regular property sale, so we’ve pulled together some FAQs to think about.

Who should I sell my property to?

To sell to another landlord, keep it simple. Make sure the property is clean, clutter-free, and liveable – just as you would before renting it out yourself. This helps the buyer see its rental value and that it can be occupied quickly.

Increase your market by selling to potential residents. Again, make sure the property is clean and clutter-free, but make it feel more homely rather than just an investment opportunity.

In both cases, take care of any repairs prior to selling and get it deep cleaned before viewings begin.

What if my buy-to-let is tenanted?

In most cases, it’s easier to sell a vacant buy-to-let. However, if you do plan to sell while your tenants are in contract, you’re limiting your market to other landlords.

Be warned, selling while tenanted will mean more admin. You’ll need to provide the tenancy agreement, gas safety certificates, and other associated rental documents. You’ll also need to arrange for the tenancy deposit to be transferred to the new landlord.

Avoid the hassle of extra paperwork and plan your buy-to-let sale towards the end of a tenant’s contract. Provide a Section 21 notice to your tenants. This gives them two months to find a new home and makes your sale easier.

What are the tax implications of selling a buy-to-let?

Buy-to-let properties are subject to capital gains tax (every landlord’s least favourite few words!). Your tax bill is calculated by looking at how much the value of the property has increased since you’ve owned it. So, if you bought a rental for £100,000 and it’s now worth £150,000, you’ll be liable for CGT on the £50,000 (less allowable expenses).

Make sure you speak to an accountant to understand what expenses can be offset and your personal tax rate.

What about my mortgage?

If you took out a long-term fixed rate buy-to-let mortgage, you may need to prepare for a hefty early repayment charge once the property sells.

Speak to us at Chamberlains if you’re thinking about selling a buy-to-let.

This two-minute read looks at how landlords can keep their property safe from criminals and dodgy dealers.

Every landlord has lost sleep worrying about what goes on in their rental property when they’re not around.

There’s always a flicker of fear that a tenant – no matter how trustworthy they seem – might turn out to be a nightmare and cause damage to the property.

But carpet stains and chipped paint could be the least of a landlord’s worries in the scheme of things.

If criminals use your property for illegal activity, you could wind up with an expensive repair bill and a starring role in a court case. (And if the property is designated a crime scene, it could be off-limits for weeks while police investigate.)

While most tenants are law-abiding citizens, with criminals employing ever more sophisticated tactics, it’s worth being on your guard.

Rental properties are sometimes used for:

• Drug production. Over the past 20 years, there’s been a steady increase in the use of domestic properties for cannabis farms or meth labs.
• Drug dealing.
• People trafficking.
• Gambling dens or the sale of illicit cigarettes and alcohol.

What to do if you’re suspicious

Don’t bury your head in the sand. If the authorities can prove you were aware of the illegal activity taking place at your property but took no action, there could be severe repercussions

Contact the relevant authority and keep a note of what you’ve seen or heard (but don’t play detective, leave that to the experts).

Look out for

• Tenants with long, convoluted stories as to why they can’t show you the appropriate ID.
• Tenants who install their own deadbolts, CCTV or alarms, and are dead against you arranging a planned property inspection.
• Blacked-out windows and unusual smells. Meth labs can smell like cat’s wee, while cannabis farms have a distinctive, sweet odour.
• Changes to the wiring (cannabis farmers often rejig it to bypass the electricity meter).

Proactive steps

• Have a rigorous tenant screening process.
• Run a mile from tenants offering to pay several months’ rent in advance in cash.
• Carry out regular inspections.
• Do things by the book. Criminals are looking for landlords who are lax or absent.
• Build good relations with the neighbours. They could be the first to notify you if something fishy is going on.
• Trust your instincts.

If this all feels like a tall order, you could get an experienced letting agent to manage your property.

That way, you can sleep easy knowing that your investment is safe.

From all of us here at Chamberlains, don’t have nightmares and thanks for reading.

This three-minute read explains the role of rent guarantors.

When a landlord has a niggle of anxiety over whether a prospective tenant will pay their rent, there is a way they can help protect their investment.

A landlord can ask a tenant to provide a guarantor to ‘guarantee the tenancy’.

Guarantors are often family members or close friends – and a little bit like a human safety net.

If the tenant can’t (or won’t) pay what they owe the landlord, the guarantor has to stump up the cash – or face the landlord in court.

Extent of liability

As with so much in the lettings game, it all depends on the terms of the contract.

While some agreements only cover unpaid rent, others will also cover things like damage to the property.

An agreement should clearly state what is covered and outline the circumstances under which the contract will end.

This is important. If the guarantor has a change of heart mid-tenancy, they can’t simply walk away from their commitment. The agreement is legally binding.

When to use a guarantor

It comes down to the landlord’s discretion, but often a guarantor is used when a tenant:

• Is new to renting.
• Has gaps in their employment history or has recently started a new job.
• Is a student.
• Has a credit rating that is lacking in some way. That doesn’t necessarily mean the tenant has had financial problems; they may be young and have never had a credit card or other loans.

Important points

• A landlord must check a guarantor’s credit and employment records closely (just as you would with a tenant). Guarantors are often required to own a property and have a gross annual income three times the rent of the rental property they are acting as a guarantor for.
• Most landlords prefer the guarantor to be UK-based as it’s easier to run credit checks on them and take legal action if required.
• Issues can occur when people agree to be the sole guarantor on a rent agreement without realising this makes them liable for all outstanding rent and damage costs. For example, a mother agrees to be a guarantor when her daughter moves in with her boyfriend. However, the couple split, the ex-boyfriend disappears, and Mum is livid that she has to cover his payments.
• Landlords must ensure that a guarantor understands what they’re signing, or they could claim that they were misled or pressured into an agreement.

For more information on any aspect of renting out a property, contact us here at Chamberlains.