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.

 

 

In this two-minute read, we look at some of the scams targeting Christmas shoppers in South Devon and how to avoid them.

Which classic festive song opens with the line, “It’s Christmas time, there’s no need to be afraid.”?

Easy, eh? It’s Band Aid’s “Do They Know it’s Christmas?”.

And while no one should be scared during the festive season, we should all be aware of one set of people hell-bent on cheating people out of Christmas cheer – scammers.

Scams are more prevalent now than ever due to the pandemic driving more people online to buy gifts and the relentless pace of modern life meaning we’re all often rushing.

And fraudsters thrive at this time of the year. So be wary of these tricks they’re pulling below.

• Unexpected e-cards

If an anonymous e-card pops up in your inbox, err on the side of caution and don’t open it. It’s a common tactic scammers use to infect your computer with viruses. Always use a good anti-virus product across your devices and check out www.cyberstreetwise.com for more helpful advice.

• Online bargains

Buying things online has become second nature to many of us. And there are some great deals to be had. But if a deal looks too good to be true, there’s usually a reason why. Many scammers entice shoppers into handing over financial information to buy cut-price items that don’t exist. Always buy from reputable online retailers, check for reviews, and trust your gut instinct.

• Ticketing fraud

As the UK eases out of the shackles of the lockdowns, many people want to get out and experience live events again. It’s a great way to treat a friend or family member. But be warned, scammers love ticketing scams – especially ones around supposedly sold-out events. So only buy tickets from reputable websites and always look for secure websites (showing a padlock at the start of their web address).

• Holiday horrors

According to Action Fraud, one of the UK’s leading websites offering advice to consumers, holiday fraud is rising. This is because overseas travel has been limited for so long and many of us are desperate to get away, especially over Christmas. Watch out for last-minute bargains from companies that won’t accept credit cards and aren’t ATOL or ABTA protected. You can check a travel company’s status with the Civil Aviation Authority.

Thanks for reading, and from all of us at Chamberlains, here’s to a happy, healthy, and safe Christmas.

 

 

In this two-minute read, we look at how new trends could change our homes next year and in the future.

If the past couple of years have taught us anything, it’s that no one really knows what’s going to happen in the future.

But we’ve dusted down our crystal ball (with the help of some Google searches) to discover the trends forecasted to shape the way our homes look, function, and feel.

Below are five trends that style and design experts are predicting will become a hit in our homes next year.

• Natural colours – We’ll all be going back to our roots – well, kind of. White, ivory, taupe, and grey will be must-have colours, along with the bounce-back of beige. Shades of green are being widely tipped as next year’s number one colour.
• Flexible spaces – As the pandemic highlighted, rooms in our homes now need to be multi-purpose. Home offices are still on the rise, and with a bit of careful planning, that space in the corner of your living room could be turned into a study/work/play area. This could spell the end for the man cave as it will be under pressure to become a family den.
• Good for the planet – As climate and sustainability feature more highly in people’s thinking, our thoughts are predicted to apply this mindset to our homes. Long-lasting materials such as stone, glass, onyx, marble, granite, and light wood will become more popular as furniture and features of home decoration. Indoor plants are also forecasted to experience a boom.
• Built to last – Has fast fashion hit its peak? Because fast furnishings seem doomed to being consigned to the past. Instead, interior design experts are predicting we will start buying better-made, longer-lasting furniture. It’s a bit like choosing a good estate agent to sell your home, it may cost more, but you won’t regret it in the long run.
• Going to extremes – In keeping with the theme of cutting down consumption, some experts are confident that extreme minimalism will become increasingly popular. The focus will be on functionality – if you haven’t used an item for a while, it’s time to lose it and create more space in your home.

Whatever happens in 2022, we’re confident that the home moving market in South Devon will continue to see a lot of activity and price growth.

How your home looks and feels helps you enjoy its full potential, and that’s something that’ll never go out of fashion.

If you have a property question you need an expert answer to, contact us today.

 

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.

 

In this two-minute read, we look at reasons why a property may be classified as unmortgageable.

Selling a property can be tricky at the best of times, but when a property is deemed unmortgageable things can get complicated.

‘Unmortgageable’ means lenders won’t allow a potential buyer to borrow the money they need to buy a property. For many sellers, this can be a knockout blow and can significantly reduce their options.

Here are five common reasons why lenders won’t finance a purchase.

• The property is uninhabitable

This applies to derelict properties, buildings that have been abandoned, that pose safety risks or are considered not weatherproof. In addition, properties without a kitchen or bathroom may also be classed as unmortgageable.

As a buyer, you may have big plans to restore a dilapidated property, but a lender may take a different view. If this is the case, always seek financial advice to learn how else you could finance the purchase.

• Structural problems

If a property resembles the Leaning Tower of Pisa, chances are it’s got a bad case of subsidence – another big no-no for lenders. Other structural issues affecting whether or not a property is mortgageable include severe damp, dry or wet rot.

• Short lease

If you spot a flat on the market for well below market value, it may have a short lease (under 70 years). A short lease knocks thousands off the value of a property as a buyer may struggle to get a mortgage (if they can get one at all). They’d also have to pay for a lease extension. This is costly (and can take ages) and there are often restrictions around how long you can own a property before applying for a longer lease.

• Proximity to commercial or industrial sites

Lots of people live above shops so obviously these properties aren’t unmortgageable, but they aren’t always given regular residential mortgages. Particularly if they are above shops such as dry cleaners or restaurants (where there’s a high risk of fire/smoke damage). Similarly, if you buy near a factory or industrial site, a lender may be more reluctant to provide a mortgage as it may be difficult to sell on.

• Doesn’t comply with building regulations

Sometimes extensions or building work is carried out without the necessary approval, or doesn’t meet strict building regulations. This can hamper a sale as a lender will need to see the necessary permissions/certificates to provide a mortgage.

Speak to us at Chamberlains to find out how we can help you sell an unmortgageable property.

 

 

In this three-minute read, we look at the growing calls for tougher action against rogue landlords.

Landlords who struggle with all the rules and regulations associated with renting out a property – be warned.

Councils are coming under increasing pressure to throw the book at landlords who flout the law.

Even if you’ve gotten away with a ‘near enough is good enough’ approach so far, winging it isn’t a sustainable long-term strategy.

Calls for a get-tough approach

The demand for stricter enforcement is coming from two sides: tenants’ rights groups (as you might expect) and the private rental sector itself.

The National Residential Landlords Association (NRLA) and Propertymark, which represents property agents, argue that unscrupulous landlords tarnish the industry’s image and make tenants’ lives hell.

They have both recently called on councils to enforce the laws that relate to the private rental sector with greater zeal. (Propertymark is also pressing for councils to receive more cash for enforcement operations.)

But I’m not a rogue landlord

Now we get to the philosophical part. What is a rogue landlord? Is it a cigar-sucking Fagin-like character who fleeces the most vulnerable by renting out rat-infested, unsafe dumps?

Or is it a landlord who means well enough but doesn’t have the time or inclination to get it right all the time?

Quite frankly, it doesn’t matter. Every landlord who flouts the rules will have an excuse; maybe they’re time-poor, busy at work, or think some of the rules are silly, so don’t follow them.

None of these excuses will get you off the hook in court – especially if a tenant is injured or killed because you didn’t do the right safety checks or fell behind on maintenance.

Being a good landlord makes good business sense

Moral arguments aside, sticking to the rules makes good financial sense. Here’s why:

• Tenants are more aware of their rights than ever and are willing to defend them. A lax attitude towards deposits, inventories, or paperwork could leave you exposed – and out of pocket – in a dispute.
• If there’s a fire, flood, or accident at your property, your insurance could be ruled invalid if you didn’t follow the law.
• Tenants are more likely to stay in a property if they know it’s safe and their concerns will be listened to. This will cut your tenant selection and reference checking costs.

Get a letting agent on the job

You don’t have to do it all yourself; an experienced letting agent can help you.

Cover your back by getting a professional who knows what they’re doing to take the burden off your shoulders.

For more information about our property management services, get in touch with us here at Chamberlains.

 

In this two-minute read, we explore issues in your home that could be making you feel unwell and how to cure them.

For most of us, our home is a haven. But what if it is making you ill?

Mould and damp

Mould and damp are caused by excess moisture in the home – perhaps due to leaking pipes, roof damage, or condensation build-up. They can cause respiratory issues, nausea and vomiting, and general illness, so it’s important to stay ahead of any fungal growths or damp patches.

Quick tips to prevent mould are:

• Air your bathroom when bathing to get rid of condensation
• Keep your home well ventilated to avoid excess moisture
• Where you notice mould, wipe it away with detergent or mould treatments (in more serious cases, call in the professionals to get rid of it)
• Hang your wet laundry outside or by an open window to prevent moisture build-up.

Excess dust

No matter how clean your house is, dust and dust mites can be found within most properties. They are a common allergen and can cause asthma symptoms. Ongoing exposure may result in allergic rhinitis (runny nose, watery eyes).

Reduce dust and mites by:

• Regularly vacuuming carpets and mopping floors
• Dusting with a damp cloth
• Change bedsheets weekly and wash in warm water
• Vacuum upholstered furniture, such as sofas.

Carbon monoxide

It’s important to have a working carbon monoxide monitor in all properties, as this gas is a silent killer. Some causes include poorly installed and/or badly ventilated appliances, such as cookers and boilers, blocked flues or chimneys, paint fumes, and smoking indoors.

Early signs of carbon monoxide poisoning include an ongoing headache, dizziness, sickness, and shortness of breath.

Cleaning products

While a clean home is important, limit your use of cleaning products such as oven cleaners, bleach, and aerosols. All of these contain chemicals that can cause irritation to the eyes and throat resulting in headaches and breathing issues.

Lead paint

Lead paint was banned in the UK in 1992 but can still affect older properties. Once lead paint starts to crack or peel, its dust can cause serious problems, especially for children and pregnant women.

If you suspect your older property has got areas of lead paint, speak to a building professional about how to get rid of it.

The good news is what we’ve outlined above is very rare but if you’re concerned about any problems in your home, speak to us at Chamberlains.

 

 

 

How South Devon Sellers Can Spot an Agent Who Means Business 

In this three-minute read, we look at how to gauge if an agent is giving you an honest property valuation.

The first question a seller always asks an estate agent is: “How much can you sell my property for?”. The second is: “What is your fee?”.

This focus on price and fees makes perfect sense; understandably every seller in South Devon wants to get the best possible property deal.

But before you jump in and choose an agent based solely on these two things, ask two more questions to determine if an agent is telling you the truth or a load of porkies.

Before you sign a contract, ask:

• If there is a tie-in clause in the contract? If so, how long is it?
• If you can terminate the agreement if you’re unhappy with the service?

Unfortunately, many sellers skip these questions, and it’s not until things go awry that they realise they’re locked into an unfavourable deal.

Tie-in periods

Some agents don’t do tie-ins at all (Chamberlains certainly doesn’t), while others will ask that you commit to allowing them a minimum period, usually a few weeks, to market the property.

Other agents go so far as to lock you in for 24 weeks (with a 28-day notice period on top of that).

It’s up to you to decide what length of tie-in is reasonable – but make sure you understand from the outset what you’re getting into.

Overvaluing a property

It’s also worth questioning why an agent wants a 24-week tie-in. If they genuinely believe in their pricing strategy, why do they need nearly half a year to shift the property?

Unless, of course, they’ve deliberately overvalued your home to secure your custom. They know that eventually you’ll have to drop the price, but they don’t care – they’ve got you cornered.

The whole thing is a ploy to get your business. It wastes time and can jeopardise your next purchase, especially if you’re in a chain.

Bad service

Also, be wary of long notice periods. Some contracts not only commit you to an extended tie-in but require that you serve notice if you want to terminate.

So, you get to the end of a long tie-in, and think ‘hallelujah, I’m ditching these cowboys’ only to discover you’re still locked in.

Often, the longer the tie-in and notice period, the worse the service because the agent knows you can’t go elsewhere.

Top tips

• Always do your research before choosing an agent.
• Never sign a contract you haven’t read.
• Remember, you can negotiate tie-in periods. They’re not set in stone, even if an agent tells you otherwise.
• Go with a local agent with a reputation for excellent service and delivering on their promises. Google Reviews are a great place to start!

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

 

How to Win at Playing Finders Keepers When It Comes to Great Tenants

In this three-minute read, we look at how landlords in South Devon can find and keep terrific tenants.

‘Finders keepers, losers weepers.’ It’s a timeless rhyme used every day in school playgrounds in South Devon and all over the UK.

It often applies to someone finding something that’s unowned or abandoned. But it also resonates with local landlords when it comes to having the second most important piece of the rental puzzle – great tenants.

Finding these excellent tenants is one thing. Keeping them is another. And some landlords lose these precious people because of basic, unnecessary errors. It’s enough to make a good landlord weep.

But put the tissues away because here are seven ways you can win at Rental Finders Keepers.

• Use a good letting agent. Earlier in this article, we mentioned that tenants were the second most crucial piece of completing a rental puzzle. The first? Well, in our opinion, it’s an excellent letting agent. That’s not because we are one, by the way. It’s because, over the years, we’ve seen countless landlords go down the DIY route to managing their properties and getting themselves in a stressful and expensive muddle. Look for agents with experience, testimonials, industry qualifications, and a clear plan on how they’ll market, manage, and maintain your tenancies.
• Know your target tenants. An experienced letting agent will be able to advise you on who your property will most appeal to. Is it a growing family, young professionals, or a retired couple? Knowing this will help with the next ultra-important step.
• Marketing matters. Perhaps the biggest error DIY landlords make is not taking the marketing of the property seriously enough. You are ‘selling’ an expensive product after all. This is why photography, property descriptions, and online advertising should be handled by professionals who do it day in, day out. The better your property’s marketing, the better calibre of tenants it will attract – giving you more choice when it comes to the next step.
• Setting the rent. By knowing your target tenant, marketing correctly, and listening to expert advice, you’ll be able to set your rent at the right amount. A correctly priced rental (not too cheap or expensive) will attract more interest and ultimately, more offers from quality tenants.
• Be prepared for questions. Good tenants tend not to just turn up at a property and say: ‘It’s great, where do I sign?’. It’s a big decision for them, and they’ll have questions such as ‘What council tax band is the home in?’, ‘What are the parking arrangements?’, ‘Are utilities included in the monthly rent?’. Remember, when it comes to the best tenants, this is a two-way selection process as they are savvy enough to research the rental market, so you’ll also need to make a good impression on them.
• Check them out. A tenant worth having will have no issue going through a referencing process. Here’s another area where a good letting agency reduces your risk of problems further down the line. Please don’t be shy about asking your letting agent for proof of the referencing process they’ve carried out, which should involve financial, employment, and past landlord checks. Skip this part at your peril.
• Keeping them. So, once you’ve found a great tenant, how do you go about keeping them? Well, this is an entire article in itself, but it would be along these lines: Be a good landlord by maintaining the property properly, dealing with issues quickly, charging rent fairly, and acting professionally.

At Chamberlains, our job is to help landlords find and keep great tenants. To ask us anything about the South Devon rental market, contact us today.