TSI
Only a minority of UK landlords experience disputes with damage top of the list
Over the last 12 months under 10% of UK landlords have experienced a tenant dispute but when it does happen it usually concerns damage, new research has found. Of the minority who had problems some 66% opted to settle the dispute in court, while 34% managed to resolve issues without the help of the legal system, according to the study by inventory service provider My Property Inventories. Damage to property was the number one dispute, accounting for 58% of problems, followed by redecoration at 51% and cleaning and rent arrears at 42%. ‘It is so important that agents and landlords ensure they have all the right documentation and evidence to improve their chances of resolving or winning a dispute,’ said Danny Zane, director of My Property Inventories. ‘Unfortunately, landlords are losing disputes because they can’t provide the right evidence to show that a tenant has damaged the property. For example, some landlords are failing to put a letting contract in place, or they have very unfair clauses in the contact. Other landlords don’t conduct an adequate check-in and check-out, or don’t keep copies of correspondence with the tenant which could be evidence in a dispute,’ he explained. ‘Normal wear and tear is a fact of life with rental properties, but if landlords and agents wish to avoid the hassle of arguments over who is responsible for damage, they need to prepare a thorough inventory of the condition of the property, that details the condition of everything in it,’ he added. He pointed out that usually tenants are aware that they have caused actual damage to a property and will try to hide it. ‘Hence it is vital that landlords and agents ensure that there is a thorough examination of the property and its contents to identify any damage at the check-out,’ said Zane. ‘If landlords have a thorough and detailed inventory, it will enable both parties to be treated fairly and reasonably. By opening a dialogue with tenants and using an independent inventory clerk, disputes can be resolved quicker and without the hassle that is often experienced at the end of a tenancy period,’ he added. The firm says that the more detailed the inventory the better. There should be dated photographs of the garden, the interior of the shed or garage, inside of the oven and keys handed over to tenants as these are the main areas of problems that occur and are often down to misinterpretation at the end of a tenancy. ‘Remember, you don’t need photos of every single corner of the property. Stick to the important things. Don’t try to produce a completely photographic or filmed inventory without a complete written accompanying inventory,’ the firm says. Landlords should also make sure their property is fit for letting. On check-in day the place should be completely clean and any garden areas… Continue reading
City apartments set to remain popular buys in Australia in 2015
Investor appetite for city apartments in Sydney and Melbourne will remain strong in 2015, as low interest rates attract first home buyers and investors, according to a new analysis. The outlook for interest rates is mixed but headline indicators such as unemployment, construction activity and GDP point to a period of weaker overall economic growth which will result in interest rates remaining steady in the short to medium term, says the latest property outlook report from Colliers International. ‘This is good news for the residential sector and points to continuing demand side momentum. The low interest rate environment is a key driver of residential activity in the current market, and we anticipate it will provide supportive conditions for strong investment activity in 2015,’ it explains. It predicts that Sydney, Melbourne and Brisbane residential markets will have the strongest residential growth, as weaker economic conditions in Western Australia will lead to a slowdown in development and investment activity in 2015. It also points out that developments in central locations with close proximity to public transport, work and retail amenities will be in higher demand. Consequently, this demand will see the number of apartment developments grow in Melbourne, Sydney and Brisbane throughout 2015. The Melbourne and Sydney CBDs have been the strongest performing markets, with the volume of apartments under construction in the next five years to reach and 18,000 and 6,000 respectively, buoyed by strong offshore demand, and a rapidly rising inner city population, a trend we anticipate will continue in 2015. Next year is set to see Australian property experience a continued increase in investment volumes, improved tenant demand and structural change across various sectors. The analysis also suggests there are two key themes for the year ahead that will see technology continue to change the property industry and investors continue to diversify from core assets to other markets and sectors. According to John Kenny, chief executive of Colliers International Australia and New Zealand, 2014 was the year that investment in property continued to accelerate, New South Wales returned as a growth economy and the market saw signs that leasing demand was on the return. ‘Ownership of Australian property continued to become concentrated amongst fewer owners. Strong flows of capital continued to enter the Australian property market both from offshore and overseas,’ he said. He pointed out that by the middle of November transaction volumes were well up on 2013 levels and although total volumes are still some way off the 2007 peak, some sectors such as the national industrial market and the Melbourne CBD office market have now exceeded volumes in that year. ‘The majority of sales are now to Australian investors. This is not surprising given that Australian investors are now recognised as the most confident in the world, according to our most recent Global Investor Sentiment Survey,’ he added. Offshore investors also continued to enter the market with new groups emerging, particularly from… Continue reading
Intermediaries remain the most popular choice for buy to let investors
UK landlords sourcing buy to let finance from intermediaries has increased as they regard it as the best way to secure a good deal, new research suggests. There has been a 6% increase in landlords who prefer get property finance from intermediaries and large scale landlords more likely to make exclusive use of intermediaries, according to the latest report from specialist buy to let firm Paragon Mortgages. The Private Rented Sector Trends survey, which has been tracking landlord confidence and views on the buy to let market for 20 years, also shows that 60% of landlords agree intermediaries are valuable in finding the best buy to let deals. More than a third, 36%, of landlords in the fourth quarter of the year preferred to source buy to let finance exclusively via intermediaries, a 6% increase over the past three months, up from 30% of landlords in the third quarter. In comparison, 23% of landlords in the last quarter of 2014 preferred to source buy to let finance directly from lenders, and 23% sourced through a mix of intermediaries and lenders, which reduced from 28% in the third quarter. Large scale landlords, those with five or more properties, were more likely to prefer to source all their buy to let finance via intermediaries at 40% compared with 23% of small scale landlords. Small scale landlords on the other hand were almost twice as likely to source buy to let finance directly through a lender at 35% compared with 19% of large scale landlords. Some 60% of landlords agreed that intermediaries provide a valuable service in finding the best buy to let deals, in comparison with only 6% who disagreed. Additionally, 42% of landlords surveyed said that sourcing directly though a lender is only suitable for the simpler buy to let propositions. ‘Although the market has seen strong growth this year, many landlords remain cautious, particularly in view of interest rate expectations, the weaker conditions that we have seen in the housing market and the disruption we are likely to see around the general election in 2015,’ said John Heron, managing director of Paragon Mortgages. ‘When combined with the positive benefits that professional mortgage advice can bring, it is no surprise to see landlords turning more to the intermediary sector in less certain times,’ he pointed out. ‘Landlords, especially those newer to the market, recognise the benefits of using a trusted, experienced and knowledgeable broker to help source their finance. Brokers have always been key to the buy to let mortgage market and will continue to be, going by this research, for as far ahead as we can see,’ he added. Continue reading
