×

Tag: Renting

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

© 2024 RHJB Ltd trading as CR Real Estate | Reg No: 10918586 | Registered Address: 18-20 High Street, Gillingham, Kent, ME7 1BB | Website Built and Powered by BoostOnline UK Group Ltd.
Boostonline Local Marketing
Book A Valuation