News
Almost a quarter of UK landlords entered the business accidentally
Some 24% of UK landlords, that’s around 360,000, came into the residential private rental market accidentally or unintentionally, new research has found. The National Landlords Association (NLA) survey asked landlords why they first entered the buy to let market and found that 11% were by chance such as inheriting property. It also found that 5% acquired an extra property such as when they met a spouse or partner, 5% intended to sell a property but experienced difficulties and 3% had to relocate for work, either home or abroad. Central London was found to have the highest proportion of accidental landlords at 31%, followed by Wales at 29% and then the East of England and Yorkshire, both with 27%. The North West had the least with just 15% claiming to have got into the business unintentionally. The research also found that 30% of 10 landlords with a single property only break even or make a loss. ‘The figures show that there are a significant number of people who find themselves as landlords without ever having really planned to enter the market,’ said Carolyn Uphill, NLA chairman. ‘It may be surprising to find that so many single property landlords struggle to make it work, but we often find that this is because so many simply don’t realise what they’re getting themselves into. While a buy to let property can provide a steady return, you’re in business to provide a home for someone else so you need to know your obligations and make sure that you have a plan to make a success of it all,’ she explained. She pointed out that all landlords can sign up to the NLA for free to see how the organisation can help make a success of their business. The NLA offers free best practice tenancy agreements and other sample forms and letters which may be needed during the life cycle of a tenancy. Alternatively, enlisting the help of a letting agent is an option if you prefer a more hands off approach but just make sure they are a member of a reputable trade organisation such as the Association of Lettings Agents,’ added Uphill. Continue reading
Cleaning disputes between landlords and tenants in UK increasing
Landlords and letting agents in the UK are increasingly faced with dirty properties at the check-out stage and this has led to cleaning now accounting for 53% of deposit disputes. Over the last three years cleaning disputes have leapt by 13% whilst damage has dropped by from 60% to 46% in the same period, according to research by inventory software firm Imfuna Let. According to Jax Kneppers, the firm’s chief executive officer many tenants fail to leave their property in the same condition at check-out and are often very surprised when they are told that professional cleaning is required. As a result deductions made by landlords in relation to cleaning charges are regularly disputed by tenants. Many tenants claim that the cleanliness of the property at the start of the tenancy was not clear, or that the tenancy agreement did not make clear what was expected of them ‘If agents and landlords wish to make deductions for cleaning costs, they need to be careful to record the cleanliness of the property in sufficient detail, at the start and end of the tenancy. They will also need to ensure any charges they claim are a fair reflection of the property’s condition at the start of the tenancy,’ added Kneppers. One agent, Simon Smith, managing director of KS Property Rentals, said he has seen a decrease in cleaning disputes since using the firm. ‘I believe this is down to the very detailed inventory we carry out using the Imfuna Let software. We are able to record the cleanliness of the property with commentary and photographs and the digital inventory is shared with tenants at the start of the tenancy,’ he explained. ‘Cleanliness and rubbish removal are responsible for at least 90% of our deposit claims, less and less of those claims are reaching ADR due to the fact that once a tenant moves out, we email them a copy of their check-in and check-out reports, showing the clear evidence gathered with the Imfuna App, which speaks for itself,’ he pointed out. ‘As a result of seeing a thorough analysis of the property’s condition, more and more tenants are aware of the state of their fridges, ovens and the property in general, during the tenancy. Tenants are aware of cleaning issues and generally make more of an effort to keep the property clean during their tenancy,’ he added. Continue reading
UAE property prices and rental values dip
The residential property market in Dubai saw a minor downturn in February with prices and rents falling slightly but still up year on year. There is some variation between apartments and villas with apartment prices falling 1.86% month on month but still up 6.7% compared to a year ago, according to the latest index from REIDIN. Meanwhile villa prices were up slightly by 1.68% month on month and are up 6.2% year on year, the data also shows. Overall the REIDIN Dubai sales price index for all residential properties decreased by 1.18% but it still up 6.6% on a year ago. Residential rents also fell, down 0.76% month on month but this sector is still some 7.7% up on a year ago. Apartment rental prices fell 0.98% but are 8.8% up year on year and villa rental prices were up 0.08% month on month and 2% year on year. There was a similar pattern in neighbouring Abu Dhabi. Prices overall were down 0.83% in February 2015 but up 1.3% year on year. Apartment prices fell 0.89% and are just 0.1% above a year ago while villa prices fell 0.75% compared to the previous month and are up 1.1% year on year. Rents in Abu Dhabi fell 1.04% in February but are up 2.2% year on year. Apartment rents increased 0.45% month on month and 4% year on year while villa rents fell by 2.32% compared to the previous month and were up 6.5% year on year. Continue reading
