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Category: Letting Your Property

Actions landlords should take when their tenant falls into rent arrears

Posted on by Sophie Winter

Are you familiar with the appropriate steps to take when a tenant falls behind on rent payments? This can pose a challenge for landlords, as it is crucial to ensure compliance with relevant legislation throughout the process. Additionally, many landlords lack a systematic approach for addressing such situations, which can leave them feeling unprepared. Today, we will outline some essential guidelines for pursuing rent arrears, including dos and don’ts. We will also delve into the recommended process for handling these complex scenarios, including the selection of appropriate legal notices to serve.

A tale of two tenants

CR Real Estate has identified two distinct types of tenants who experience rent arrears. The first group consists of tenants who, due to unfortunate circumstances, find themselves unable to pay at present despite their willingness to do so. The second group comprises tenants who have the financial capability to pay but deliberately choose not to fulfill their rent obligations. Dealing with tenants in the latter category can be particularly challenging. Therefore, it is crucial to establish a well-defined process that guides your actions, ensuring you are prepared to handle either situation effectively.

Guidelines for pursuing rent arrears: what to do and what to avoid

As you develop your process, we will provide our recommendations on the dos and don’ts in handling such situations. Effective communication is paramount. Once you become aware of missing payments, promptly reach out to the tenant to understand if there is an underlying issue causing the problem.

Through these communications, you can determine which category the tenant falls into and work towards finding a mutually satisfactory solution. The initial step, when a tenant fails to pay rent for seven days, is to send a formal letter requesting payment. Follow-up letters should be sent every seven days throughout the process. Simultaneously, attempt to contact them via phone or email to seek an explanation and negotiate a payment plan.

It is crucial not to harass the tenant. Continuous, excessive contact throughout the day is legally defined as harassment and should be avoided. Instead, establish scheduled times for communication.

If the tenant is genuinely unable to pay, it may be worthwhile to apply for direct payment from Universal Credit. The advantage of this step is that there is no harm in making the application, regardless of whether the tenant eventually receives payments from Universal Credit. It can potentially relieve the tenant from the responsibility of making rent payments themselves.

What to do when they just won’t pay

Responding promptly is crucial when dealing with tenants who are capable of paying rent but refuse to do so. In such cases, we recommend taking swift action to regain possession of your property. It is important to send rent demand letters promptly every 7 days, and on the 28th day, serve a notice of possession as soon as possible. Once legally permissible, initiate court proceedings without delay.

Now, you may be wondering about the appropriate notice to serve tenants in arrears. Our recommendation is to serve a Section 8 notice, specifying the grounds you wish to rely upon (typically grounds 8, 10, and 11). This notice is appropriate when the tenant is two or more months behind on rent. We suggest this notice because it comes with a 14-day notice period in England, allowing for the quickest path to regain possession of your property in such cases.

You may have heard of serving a Section 21 notice to tenants in arrears, which is also a valid option. However, it is worth noting that the notice period for Section 21 is 2 months long, resulting in a delay in effectively addressing the situation.

Final Thoughts

Ultimately, effective communication plays a vital role in responding to tenants who have fallen into rent arrears. For tenants experiencing financial difficulties, engaging in dialogue can help understand their challenges and work towards a mutually agreeable payment plan. However, when tenants willingly refuse to pay, they are often unresponsive, necessitating legal action. Familiarising yourself with relevant legislation is crucial, and a valuable resource we recommend is GOV.UK, which provides up-to-date guidance and information on the legal notices discussed today.

We hope this has provided you with valuable insights on how to handle tenants in arrears. At CR Real Estate, we are committed to assisting landlords in effectively managing their rental properties. We have developed a wealth of content offering practical, step-by-step guidance on the pertinent legislation that landlords need to navigate. Contact our expert lettings team today to discuss your property and how we can help you.

This article is intended as a guide only and does not constitute legal advice. For more information, visit gov.uk.

Recent Articles

Property management insights: key facts every landlord needs to know

Posted on by Sophie Winter

Managing a rental property can be rewarding, but it’s also time-consuming. On average, landlords spend up to 15 hours per month handling various tasks related to their rental properties. From tenant communication to maintenance coordination, these responsibilities can quickly add up, eating into your valuable time. Now, imagine what you could do with those 15 hours instead—whether it’s focusing on your career, spending quality time with family, or simply enjoying a hobby. The truth is, property management doesn’t have to consume your life.

Legal support and regulations

One of the most challenging aspects of being a landlord is navigating the complex web of legal requirements. Did you know that 1 in 5 landlords accidentally breach regulations? These mistakes can lead to hefty fines and legal complications, turning your investment into a potential liability.

Landlords responsibilities and property laws and regulations are constantly changing, and keeping up with them can be overwhelming. A property manager is always up-to-date with the latest legal developments, ensuring that your investment remains compliant and protected.

Fewer vacancies and higher income

Landlords who partner with professional property management companies typically experience fewer vacancies and higher income. Studies show that professionally managed properties can earn up to 10% more annually compared to those that are self-managed. This increase in income is not just from better tenant retention but also from expert marketing and strategic rent adjustments.

Property maintenance

Maintenance and repairs are another significant concern for landlords. Keeping a property in top shape is crucial, but it can be time-consuming and stressful, especially if you’re not handy yourself. Our property managers handle all maintenance and repairs, so you don’t have to lift a finger. They have a network of trusted contractors who can address issues quickly and efficiently, ensuring your property remains in excellent condition.

Tenant registration

Another major advantage of working with a property management company is our ability to screen tenants effectively. Bad tenants can cause endless headaches, from late payments to property damage. Our professional tenant screening ensures that your property is occupied by reliable, responsible tenants, reducing the risk of these issues.

So, are you ready to enjoy a stress-free landlord life?

Partnering with a professional property management company like CR Real Estate offers peace of mind, reliable income, and expert support. It’s time to take the next step towards maximising your investment while reclaiming your time. Contact us today and experience the benefits of professional property management!

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Why do I need a property inventory as a landlord?

Posted on by Sophie Winter

Why is a property inventory essential?

Before the introduction of deposit protection laws in 2007, many landlords overlooked the importance of having a detailed property inventory. Those who did create one often produced a basic list of items included in the property, lacking in detail. However, in today’s rental market, having a comprehensive property inventory at the start and end of every tenancy is crucial. It serves as the only concrete evidence a landlord can use to prove that any damage to the property was caused by the tenant.

In the event of a deposit dispute, it’s important to understand that deposit scheme adjudicators operate on the principle that the deposit belongs to the tenant. Landlords can only make deductions if they meet the following criteria:

  • The tenancy agreement contains the proper clauses
  • They can show, on the ‘balance of probabilities’ that the tenant is liable, and
  • The sum claimed is reasonable.

Without clear evidence showing the condition of the property at the start and end of the tenancy, your claim is unlikely to be upheld. Therefore, a detailed inventory protects you from bearing the full cost of repairs, while also ensuring that the tenant is not unfairly charged.

If you choose to let or fully manage your property through us, we’ll take care of the entire inventory process, so you won’t have to worry about arranging it yourself. If you’re not using our full management service, we can still conduct a thorough inventory for you.

What should a property inventory include?

A thorough check-in inventory should include the following:

  • A detailed list of every room and area in the property, including all fittings and contents.
  • A description of the condition of each item, from ceilings and carpets to light switches and bathroom fixtures, with a rating system. This could range from ‘brand new’ to ‘poor’ or use a ‘traffic light’ system (green/amber/red).
  • An assessment of the property’s overall cleanliness.
  • The condition of outdoor spaces like the garden, driveway, gates, and fencing.
  • Documentation of any garden furniture or fixtures, and confirmation that garages and sheds are empty and tidy.
  • Dated and time-stamped photographs or videos showing the general condition of each room, with close-ups of any existing wear or damage.
  • Verification that electrical appliances, fixtures, and lights are functioning.
  • Results from smoke and CO2 alarm tests.
  • Meter readings.
  • A list of keys provided to the tenant.

The more detailed the inventory, the easier it will be to identify any changes in the property’s condition over time. When the tenant moves out, the original inventory should be updated to reflect any changes in contents, condition, and cleanliness.

Can I do the property inventory myself?

Although it is possible to carry out the property inventory yourself, we recommend using a professional. They have the expertise to complete the report efficiently and impartially, offering reassurance to both you and the tenant.

At CR Real Estate, we offer inventories as an optional extra within our Fully Managed service. If you have any questions about inventories or are interested in our property management services, please get in touch with our office, and one of our team members will be happy to help.

Recent Articles

The challenges of managing rent collection on your own

Posted on by Sophie Winter

Making sure that rent collection payments are on time and paid in full each month is an important task for any landlord managing a rental property. Rental income is the lifeblood of your investment, covering mortgage payments and regular maintenance, and providing a profit margin.

Many landlords face financial strain if rent is missed even briefly, as they may rely on rental income for personal expenses or need to cover mortgage payments themselves. This highlights the importance of:

  1. Conducting thorough referencing and credit checks before accepting a tenant to confirm they can afford the rent.
  2. Monitoring rent collection payments on the due date.
  3. Contacting the tenant immediately if payment is missed to determine the cause and take appropriate steps:
    • Resolve bank issues or forgotten payments promptly.
    • Arrange a payment plan if the tenant has short-term financial difficulties.
    • Consider eviction if the tenant cannot afford the rent or is deliberately not paying.

Challenges for DIY Landlords

DIY landlords often face specific challenges in rent collection:

  • Forgetting to check the rent due date, especially when busy or on holiday.
  • Handling repeated non-payment legally and appropriately to enable potential eviction.
  • Avoiding harassment and knowing legal limits in rent collection.
  • Risking legal claims if tenant rights are violated or the collection process is mishandled.

Benefits of working with professional rent collection services

Working with a property management company like CR Real Estate can alleviate these issues:

  • We ensure timely and full rent payments with established procedures.
  • We will notify and follow up with tenants on late payments.
  • We have expert property managers who effectively communicate and negotiate with tenants, detecting any issues early.
  • We assist in evictions if necessary, ensuring the process is legally sound and efficient.
  • We help end tenancies quickly to bring in new paying tenants.

While most tenants pay rent on time, the odd occasional issue requires immediate attention to avoid financial loss.

How to make sure tenants rental payments are on time

To help tenants make timely payments:

  • Provide your bank details and request tenants set up a standing order for rent.
  • Mark the due date to check payments with your bank.
  • If rent is missed, contact the tenant and confirm the conversation in writing.
  • For short-term affordability issues, consider a written and signed payment plan with the tenant.
  • If persistent non-payment occurs, consider starting the eviction process:
    • Serve a section 8 notice for rent arrears after two months and pursue a possession order if necessary.
    • Alternatively, issue a section 21 notice with two months’ notice, potentially using an accelerated possession order.

After eviction, you may pursue overdue rent, though it might be more practical to focus on finding a new tenant quickly.

Contact us for professional property management

Managing property rentals, especially rent collection, can be challenging. Let our team at CR Real Estate handle it for you. We work hard to ensure timely rent collection payments and hassle-free property management, giving you peace of mind.

Call us today on 01634 570057 and experience stress-free property management.

Looking to rent out a property as a holiday let?

If you want to know more information about holiday lets please contact our local lettings experts on 01634 570057 or book a free online property valuation.

Recent Articles

Everything you need to know about renting your home as a holiday let

Posted on by Sophie Winter

Renting out your home as a holiday let can significantly boost your income. However, it’s important to understand the relevant rules and regulations before diving in. This guide will help you navigate the process of renting out your home as a short-term holiday let, and how having the right agent can simplify it.

What is a holiday let?

A holiday let is a property rented out for short-term stays, ranging from a single night to several weeks. These properties are fully furnished and equipped with all the essentials to ensure a comfortable stay. Holiday lets are often located in popular tourist destinations, cities, or other desirable locations.

How much could you earn from a holiday let?

As a holiday let owner, you can set a nightly rate for your property, adjusting it based on seasonal demand. Researching similar properties in your area can help you determine competitive pricing. Consider offering discounted rates for longer stays and increasing prices during high-demand periods like weekends.

Preparing your home for a holiday let

To stand out in the competitive holiday let market, your property must meet certain standards and requirements. A unique theme or décor can attract more guests. Higher-quality properties tend to perform better, as guests are willing to pay more for a premium experience. Whether it’s a cozy log cabin, a modern city apartment, or a charming seaside cottage, properties with distinct personalities are more appealing to guests.

What are the running costs for a holiday let?

Understanding the costs involved in running a holiday let is essential, especially if you’re new to the market.

  • Mortgage Costs: Factor in monthly repayments if the property is mortgaged.
  • Advertising: Continuous advertising across various platforms is necessary to maintain a steady flow of guests.
  • Cleaning: Each turnover requires a thorough cleaning, which means ongoing expenses for cleaning services.
  • Maintenance: Regular maintenance and repairs are needed due to higher wear and tear from frequent guests.
  • Utilities: Gas, electricity, water, and Wi-Fi are ongoing expenses.
  • Insurance: Building and content insurance are required, along with additional coverage for emergencies, accidental damage, and legal issues.
  • Property Management Fees: Working with a letting agent can provide a hands-off approach, managing the property for a fee.

Rules and regulations for holiday lets

Running a holiday let requires adhering to various legal and non-legal requirements. If you have a mortgage, check with your lender or a mortgage broker to ensure short-term rentals are permitted. As a landlord, you are responsible for maintaining the property and ensuring it meets safety standards.

Legal requirements include:

  • Fully furnishing the property
  • Renting it out for at least 105 days per year
  • Performing fire risk assessments and installing necessary fire safety equipment
  • Installing smoke and carbon monoxide alarms
  • Obtaining a gas safety certificate

Non-legal requirements include:

  • PAT testing for electrical appliances
  • Obtaining an electrical safety certificate
  • Conducting hazard assessments for pools and hot tubs

As a local letting agent, we can handle these requirements for you, reducing stress and ensuring compliance.

The importance of managing a holiday let

Managing a holiday let can be time-consuming, depending on its popularity. High-quality customer service is essential for repeat business and positive reviews, which boost the property’s appeal. An external management service can handle guest queries, maintenance, and other tasks, allowing you to focus on providing the property and enjoying the profits.

Looking to rent out a property as a holiday let?

If you want to know more information about holiday lets please contact our local lettings experts on 01634 570057 or book a free online property valuation.

Recent Articles

The advantages of renting out your property as an HMO

Posted on by Sophie Winter

Most landlords rent out their properties as a whole, but leasing your rental property as a House in Multiple Occupation (HMO) provides an alternative approach.

An HMO is a property rented to multiple households who share common facilities. A household can consist of an individual or members of the same family, which includes:

  • Married or cohabiting partners
  • Relatives or half-relatives
  • Step-parents and step-children

An HMO is considered small if it has at least three tenants from more than one household and large if it has at least five tenants from more than one household.

In an HMO, each household rents individual bedrooms and shares communal areas such as the kitchen or bathroom. Despite increasing rental demand, the number of HMOs in the UK has declined in recent years, making it an opportune time to invest.

So, what are the advantages of renting your property as an HMO?

Increased rental yield

Entering into multiple tenancy agreements with different households can result in a higher rental yield compared to renting out a property to a single household. Additionally, you can adjust the rental rates for different rooms to further increase your rental yield. For example, a master bedroom with an en suite can be rented for more than the smallest bedroom in the same property.

Strong demand in popular areas

HMOs offer a new rental option for young professionals and students seeking accommodation without the need for a long-term commitment. They provide tenants with a more affordable and flexible solution in popular areas.

Traditionally, individuals looking to rent would need to find roommates to afford an entire property, which can be challenging when relocating to a new city for work or education. In recent years, there has been a significant shortage of student accommodation in the UK. Consequently, HMOs have become increasingly popular in university cities to address this shortfall.

Converting an existing rental property into a HMO

Converting your existing rental property into an HMO requires time, effort, and careful attention to detail to ensure it meets HMO standards.

There are minimum room size requirements based on the number of occupants sharing each bedroom. Your property must also comply with safety regulations, such as installing fire doors.

You will need an HMO license if your property has at least four tenants forming two or more households. Some local councils require an HMO license for smaller properties as well, so you should contact your local council for more information.

Reduced void periods

A void period is the time between tenancies when your rental property is unoccupied. As a landlord, you will want to avoid extended void periods, as they can diminish your rental income, especially if you rely on rent to pay your mortgage.

Renting your property as an HMO can help minimise the duration and impact of void periods. Since an HMO is rented out by individual bedrooms rather than the entire property, it is less likely that the property will be completely empty at any given time. Additionally, you can include a clause in your tenancy agreement requiring the remaining tenants to cover the rent shortfall if one or more bedrooms become vacant.

How can we help you?

Interested in discovering the potential rental income of your property as an HMO? Book a complimentary rental valuation to explore your options with our knowledgeable team today by calling 01634 570057 or booking online.

Recent Articles

Landlords: why going fully managed could help you

Posted on by Sophie Winter

We recognise that handling a property can become both time-consuming and costly. That’s why we suggest entrusting your property to a professional agent with a fully managed service.

Whether you’re a new landlord or a seasoned property investor of one week or ten years, there’s one thing we can all agree on: managing your property can be challenging. When renting out a property, the need to be accessible to tenants becomes priority. Many landlords and property investors find it challenging to manage multiple properties on their own, especially during busy seasons and holidays, which only adds pressure to these responsibilities.

How can we help you?

This is where a reliable letting agent can play a vital role. Our skilled experts at CR Real Estate can assist in saving you time by overseeing your rental property, handling financial paperwork, and dealing with tenant management.

We understand the significance of time, particularly during busy periods. Our lettings team are here to assist with tenant enquiries, maintenance issues, and much more with our fully managed service. Our expertise will allow you to enjoy holidays and day-to-day living without interruptions from tenants and issues. We offer regular check-ins on your property to ensure it stays well-maintained, which reduces the chances of unexpected expenses that might add extra stress.

From a financial standpoint, the benefits of opting for a fully managed property agent are clear. We can guide you through the complex landscape of property management and enhance your investment for optimal returns. By efficiently managing tasks such as rent collection and property inspections, we ensure your investment is optimised.

Compliancy made simple

The legal responsibilities facing landlords today have significantly increased compared to just a few years ago. Ensuring you’re well-versed in these matters is crucial to avoid hefty fines that could transform your buy-to-let aspirations into a nightmare.

Legislation is notorious for its constant changes, making it challenging to stay updated on all the details. Having a team of experts by your side is invaluable in today’s dynamic environment. As a reputable letting agent we stay informed about any regulatory changes impacting your property investment and present your options in a clear and understandable manner.

Finding tenants isn’t as easy as it once was

There have been significant changes in the rental market, including shifts in tenant expectations. While the demand for quality homes remains high in many areas, tenants are no longer willing to settle for subpar properties or inadequate landlord services. With rental costs consuming a considerable portion of people’s incomes, it’s understandable that they expect nothing less than what they deserve.

Additionally, the challenges in the property buying market have contributed to a ripple effect in the rental sector. Tenancy durations are extending, with many lasting four years or more nowadays. This increased commitment from tenants emphasises the importance of professionalism in attracting the best renters.

Opting for full management services ensures representation by a trusted name that tenants can rely on. This instills confidence in potential renters and significantly improves the chances of finding the right tenant for your property. Additionally, with experienced valuers and negotiators working on your behalf, you stand to secure the best rental price—a clear win-win situation.

Want to discuss your rental property and becoming fully managed?

Don’t hesitate any longer! Give yourself the luxury of time, savings, and a stress-free 2024 — all made achievable through the expert care of our property management agents!

Got a property or portfolio you’d like managed in Medway or any of the surrounding areas in Kent? We’re here to help! Simply get in touch with our dedicated lettings team to find out more about how we can help you become more hands-off with your investment.

Recent Articles

Our top tips to finding new tenants quickly

Posted on by Sophie Winter

The surge in rental home demand has created an unprecedented situation where every home listed on the market experiences high demand. Consequently, landlords are faced with an elevated volume of rental applications to sift through in order to choose a suitable tenant. In this blog post, we will explore five effective strategies that landlords can use to speed up the tenant selection process. These tips will help increase the chances of finding the perfect tenant, and reduce the time and effort needed to do so.

Detailed property listings

Creating thorough property listings is one of the most important aspects when renting out your property. Dedicate some time to investigate the frequently asked questions about similar rental properties in Kent, and incorporate the responses into your property description. By proactively providing all the information upfront, including details like the number of bedrooms, available amenities, and proximity to local transportation options; you can assist potential tenants in assessing whether the property aligns with their requirements even before they express interest. This approach ensures that prospective tenants come prepared for viewings, saving valuable time for both parties involved.

Pre-qualify potential tenants

You can simplify the tenant selection process by pre-screening applicants. Prior to arranging viewings, request potential tenants to complete a pre-qualification form. This enables you to assess their eligibility for the property and understand their readiness to undergo reference checks.

This method reduces the risk of investing time in applicants who may not meet your criteria and allows you to focus your attention on those who have a genuine interest and a higher likelihood of successfully passing the reference checks.

Organise block viewings

Conducting separate viewings for every applicant can become a time-consuming and less efficient process, particularly when a property generates high interest. Instead, consider organising group viewings, wherein multiple prospective tenants are shown around the property in intervals of 10-15 minutes. This approach not only saves time for everyone but also creates a competitive atmosphere among applicants. Therefore encouraging them to make quicker decisions and submit their applications promptly.

Confirming attendance

Focus your efforts on confirmed viewings to reduce the likelihood of no-shows and to optimise your time. Prior to the scheduled viewing, send a reminder to the applicants and request their confirmation of attendance. By taking this approach, you can diminish the chances of last-minute cancellations and ensure that you are making the most efficient use of your time during each viewing.

Prepare your tenants for check-in

After you’ve narrowed down your pool of prospective tenants, assist your selected applicants in preparing for the next phase of the rental process by offering them detailed guidance, such as a step-by-step guide. This will help them grasp the requirements for a seamless check-in. This proactive approach not only minimises the need for extensive back-and-forth communication, but also demonstrates your dedication to delivering a positive rental experience.

Want to discuss your property?

We understand that as a landlord the surge in tenant demand can present opportunities and potential difficulties. If you’re feeling daunted by the prospect of securing a new tenant or if you’re interested in learning more about our comprehensive property management solutions in Kent, don’t hesitate to reach out to us by calling 01634 570057 or submit an online enquiry to our lettings experts.

Recent Articles

What’s happening with minimum energy efficiency standards and EPC ratings?

Posted on by Sophie Winter

In 2020, the government revealed its intentions to raise the Minimum Energy Efficiency Standards (MEES) for the Private Rented Sector. The plans specified that private rented properties would be required to achieve an Energy Performance Certificate (EPC) rating of C or higher by 2025 for new tenancies, and by 2028 for existing tenancies.

Are landlords ready for changing Minimum Energy Efficiency Standards?

Recent data indicates a gradual enhancement in the energy efficiency of properties available for rent. As the number of properties with an EPC rating of C or higher has increased by 16% since January 2019.

Meanwhile, the number of rental properties with EPC ratings D to G dipped by 11%. These figures suggest that landlords are taking steps to either improve the energy efficiency of their properties; or becoming more selective with their investment choices.

A notable 61% of landlords say that they would not consider investing in a property with a rating below C. This shift in mindset demonstrates a change in priorities and an acknowledgement of tenants’ preference for higher-rated properties.

Will the new minimum standards be included in the Decent Homes Standard?

The A Decent Homes Standard in the private rented sector consultation outlined the suggested measures to implement the Decent Homes Standard in the private rented sector.

This standard is anticipated to be implemented in conjunction with the Renters (Reform) Bill. According to the consultation proposals, one of the criteria, criterion D, requires homes to offer “a reasonable degree of thermal comfort.”

In the House of Commons Committee report on Reforming the Private Rented Sector, a recommendation was made to incorporate the Minimum Energy Efficiency Standards (MEES) into criterion D of the Decent Homes Standard. This suggestion is regarded as a simple and modest simplification of the complex regulatory framework.

Currently, the Minimum Energy Efficiency Standard is not applicable to the social housing sector. Thus there is no necessity for it to be aligned within the Decent Homes Standard.

When will the increased standards be formalised?

The industry is still anticipating the outcome of the 2020 Energy Performance consultation. This will provide additional information regarding the requirements. Energy minister Andrew Bowie recently mentioned that the initial update for this year will merely consist of a summary of the responses received.

Earlier, the Telegraph reported that landlords would be granted until 2028 to comply with the updated energy efficiency requirements. However, there has been no official announcement to confirm this specific date.

What should landlords and agents be doing to prepare?

The present government guidelines for complying with the current MeeS regulations provide a list of recommended upgrades for landlords, along with their average costs. These upgrades encompass options such as internal or external wall insulation, draught proofing, solar panels, among others.

It is anticipated that the government will officially establish a cap of £10,000 on upgrade expenses. Allowing landlords to seek exemptions if the costs exceed this limit. Various sources of funding are available for these types of upgrades.

How can we help?

Contact our expert lettings team today to discuss your property and how we can help you with these changes.

This article is intended as a guide only and does not constitute legal advice. For more information, visit gov.uk.

Recent Articles

How a lettings agent can make investment properties more profitable

Posted on by Sophie Winter

Many landlords perceive that the cost of using a lettings agent might impact their profitability; however, it is quite the opposite.

Presenting a well-managed property with comprehensive professional oversight can directly improve your bottom line. There are numerous advantages to using an experienced agent, not least avoiding vacant periods.

How to boost your rental property return

We adopt several strategies as a leading independent Kent lettings agent to proactively increase landlord earnings.

Defined rental property marketing

Property in Kent is in huge demand, particularly with professionals and families.

The outstanding schooling and career opportunities; along with travel links and living standards continue to attract tenants relocating from across London and southeast; as well as prospective tenants from the nearby areas.

CR Real Estate are one of the leading and independently established Kent lettings agents, and we recognise that how we market a high-value rental property is vital.

With a central base in Medway our lettings team applies targeted marketing techniques to attract excellent tenants. This ensures that you receive a premium rental value for your property.

Comprehensive inspections and inventories

We endeavour to maintain a positive rapport with every tenant; and schedule inspections regularly, at your tenant’s convenience. This is to ensure that they enjoy every aspect of renting your residence.

This service means we can respond and act quickly when we need to organise work. Obtaining comparable quotations from respected local tradespeople; and identifying when there are possible issues that need to be addressed.

Attention to detail is an important factor in tenant satisfaction. This means that the vast majority of our managed properties benefit from long-term, sustainable tenancies.

Accurate rental price assessments

Rental properties that have been available for some time are often priced at a static rental figure; increased perhaps marginally over time. Many landlords undervalue their assets and could be earning a far greater value. This depends on each property’s location, quality, sizing, position, and unique features.

Our lettings agents will review your rent; determine whether this should be adjusted; and provide local insights to rationalise any recommended changes in the rental charge.

Securing tenancies faster, and for longer

Private tenants are more likely to rent a property from an agent. As they have the assurance that they will have a nearby point of contact to ask questions; and deal with an accredited, regulated organisation. This preference allows us to develop relationships to support tenants moving to the area from further afield; and pass these benefits onto our landlord clients.

We regularly have waiting lists of pre-vetted tenants looking for local properties. We can accelerate the process by matching tenants with newly available properties in a very short timeframe.

Reducing landlord’s ancillary costs

Over the years, we have cultivated a strong network of contacts, from insurance providers to maintenance companies.

When a property requires repair work or a landlord is looking for a competitive buildings insurance quotation, we can often recommend a provider that will offer a superior price point, thereby saving on property management costs.

Three common reasons that Landlords lose money

There are three primary ways that profits from a rental asset can begin to dwindle.

1. Tenant Liaison

Negotiation is essential; if you have a difficult decision to make, or disagree with a tenant about any element of your property or their tenancy. Disputes, late payments, conflicts and rental arrears are the prevalent cause of landlord losses.

2. Regulatory Mistakes

Over the last two years, there have been many legislative changes. This includes eviction bans, which you must comply with as a landlord. Tenants should be well informed about the regulations surrounding private tenancies; and making an error (even innocently) can be extremely costly.

3. Excessive Maintenance Expenses

All rental properties require general upkeep; but falling behind with gas and electrical safety checks or not inspecting a property until extensive damage has been done can incur large reparatory costs.

A lettings agent is responsible for finding high-quality tenants; but can also assist with managing legal obligations, keeping in regular contact with existing tenants; and acting to preserve the value and integrity of your rental home.

Risks of self-managing a rental property

Independent rental property management is certainly possible; but requires continual communications, assessments, and commitment to upholding property standards to retain the best tenants.

As every landlord will know, there are multiple business considerations to be aware of:

  • Setting up an appropriately compliant deposit retention scheme.
  • Following the correct processes to end a tenancy if required.
  • Conducting thorough inventory checks.
  • Organising end-of-tenancy property inspections.
  • Dealing with maintenance work.
  • Managing tenant queries, requests and potentially complaints.

There are now over 400 rules and regulations related to managing private residential rental properties. All in which include fines for non-compliance or breaches, even when unintentional.

The fundamental risk of self-management is that any one of these requirements is missed or lapses; resulting in financial losses and reputational damage.

Advantages of using an established local Kent lettings agent

Our lettings services depend on the support you require; and are always customisable. We have a management package to suit you; whether you’re looking to improve your rental property profitability or deal with specific challenges. We deal with everything from tenant searches, background checks and deposit management; to full ongoing control over collecting rent, liaising with tenants and ensuring your property runs smoothly.

CR Real Estate focuses on exceptional quality at every turn; commanding favourable rental returns for high-quality Kent properties. As well as providing a fantastic service for tenants looking for a beautiful new home. When correctly managed, we believe that many rental residences have the potential to be more profitable than they are.

For further information about analysing your rental rates, improving returns, and elevating the quality of your Kent rental assets; please get in touch with our Lettings Team for advice from the local specialists.

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How landlords can keep their properties occupied

Posted on by Sophie Winter

Congratulations, you’ve decided to rent out your property! We know that this might be obvious but all landlords should try to keep it occupied at all times if possible. If you don’t, the mortgage, council tax and any other bills will be coming straight out of your own pocket and can mount up quickly.

In true Great British weather tradition it seems that the summer may have ended all too soon; with autumn and winter starting to creep in… It’s know in the property market that the colder months can be a hard time for landlords to find new tenants; but hopefully if you follow these tips you will never find your property unoccupied.

Use long term contracts

We’d advise to try and avoid six month contracts where you can. Having people come and go more regularly can be quite disruptive and one year contracts work much better for both landlords and tenants.

Once the contract is up, think about asking your tenants whether they would be interested in signing another contract. You don’t want to get into a rolling contract if possible; as it gives you less peace of mind, knowing they could up and leave at any time.

Think forward

Once you know that your current tenants are planning on moving out, try and visit your property as soon as possible to find out if anything needs fixing or replacing. Put the motions into place and get quotes for any new furniture or appliances; and book in contractors to carry out any work needed as soon as possible.

The best time to do up your property and give it a quick lick of paint is during the first week after tenants have moved out. This means the house will be available for viewings quickly, hopefully resulting in brand new tenants.

Look after your tenants

The easiest way to avoid an empty house is to look after your tenants as well as you can; after all a little kindness never killed nobody. This may sound obvious, but as a landlord it is easy to just ask tenants to sign a few contracts, hand over the keys and walk away.

However taking the time to build a relationship with tenants can go a very long way. It’s also important to try and solve any problems they may have as quickly as possible. That way if your tenants do move out, having a good relationship with them means you can ask them what the reasons behind their move are. If it’s something that can be changed you can do so before any new tenants move into the property.

Advertise

If you do happen to find yourself with an empty house, good marketing and adverts can make a world of difference when it comes to finding new tenants. It’s key to choose an estate agent that you trust and that lists their properties on major property portals such as Zoopla and Rightmove.

At Century Residential, our lettings team take pride in finding the most suitable tenant for your property in the shortest time possible. We understand how much your property means to you, so you can be assured that your letting will be handled professionally, efficiently and effectively. A large majority of our clients come to us through recommendations and that’s why client satisfaction and our reputation are immensely important to us.

Make it easy

The best way to get new tenants is to make it as easy as possible for people to find out about your property. We always try to work smart when booking viewings for our landlords; and always consider block viewing days, where we arrange for as many people as possible can come and look at it.

Need any help? Here’s our number 01634 570057

If you’re looking for help to not just list, rent out or manage your property, please come and speak to a member of our lettings team.

Recent Articles

A Guide to Letting Your Property

Posted on by Sophie Winter

Becoming a landlord is not as easy as it may seem; there are several factors that need to be kept in check when you are letting a property. Letting a home involves a lot of preparation and requirements that as a landlord you must fulfil. At Century Residential, we like to give you the best information we can to prepare you for your future plans; so we have created an easy guide to help you.

Check with the lender if you’re on a mortgage

If your property is on a mortgage, you are legally bound to inform your lender about your plans to let the property. Some mortgages do not allow you to let your property; and other mortgages would require you to obtain a consent form before letting it out.

There are some instances where your lender may levy a fee or alter your interest rate when you want to let your property. So, the first and most important thing you must do as a landlord if your property is mortgaged, is to check with your lender about the rules and regulations that apply to your mortgage.

Decide on how long you want to let

Usually, corporate tenants tend to rent for two to three years; with the option to end the tenancy before the mentioned period if they wanted to. If you are looking to let your property for a shorter span, say about six months to a year; then you need to consider coming up with a competitive rent. This will ensure that the property is not left without tenants for too long. You will also need to consider your mortgage if you have one; as some only allow a tenancy for up to 12 months at a time.

Calculate your tax

If you decide to let your property, you are legally bound to inform HM Revenue & Customs as you will be liable to pay taxes. You will have to do a self-assessment tax return; and it may also affect the Capital Gains Tax when you decide to sell your property. You can take the help of a professional accountant, or speak to our lettings team who can connect you to the right people to help you.

Do the necessary renovations

First impressions matter. When you decide to let, make the property look attractive to impress any potential tenants. At the bare minimum, it is essential to declutter, repaint and clean the property before you let it. You can also do decorative and purposeful renovations if you are looking for a higher rental income. With over 200+ properties in our portfolio, we can advise you on redecorating your property for a quick let if you need any guidance.

Rental insurance

Finding the right rental insurance for your property is vital to cover any damage caused to the property or its possessions during the tenancy. While your tenant will be required to take contents insurance; as a landlord, you will have to invest in suitable rental insurance. This will be to cover the cost of the damages caused to the property, possessions in property, accidents or injury to the tenant, or any visitor to the property. It’s important to mention all the high-value items that you leave on the property; and pay the appropriate cover in order to claim any damages. It will also protect you from any loss of rent or breach of tenancy.

Safety checks 

It is mandatory to ensure your property is safe and secure before you let. The mandatory safety checks include a gas safety test, electrical safety test, and appliances safety tests. Smoke alarms must be fitted on every floor for the fire safety test. Only after fulfilling these tests can the property be listed to let.

Inventory list

We always recommend doing a complete inventory listing for all the items kept within the property to avoid any disputes when tenancies end. Appliances, furnishings and other items are mentioned in the tenancy agreement to keep track of your belongings while letting and at the end of the tenancy. 

Should you need any assistance, speak to our lettings team. They will be more than happy to talk you though how we can help you with this.

Finding the right tenant

We understand that being a landlord can sometimes be daunting; as it is quite challenging to find the perfect tenant. When the background checks are skipped, you might end up with unreliable tenants who skip or delay rent, cause damage to property, and more. It is essential to keep a solid background verification in place to select the right tenant who suits your requirements.

With so much to consider, landlords have quite a task when they decide to let their property. Proper documentation and finding the right tenant is the key to have a smooth tenancy. Remember, you can always get in touch with us to ease the process and help you through the relevant paperwork, whilst finding prospective tenants from our large database.

Contact us today

Looking to let your property? We’re on hand to help make the process as stress-free as possible. Call our team on 01634 570057 today to get started. 

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