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Monthly Archives: October 2014

How Often Do You Inspect Your Rented Out Property?

If you rent out a property to one or more tenants you will no doubt wish to make periodic inspections of the property to make sure that it is being well-maintained and that the tenant(s) are not breaking any of the tenancy conditions. For instance, if you do not allow pets in the property, you may wish to make sure that there aren’t any. As the landlord, you do have the right to gain reasonable access to the property to inspect it. In order to do so you should always ask the tenant’s permission having given a minimum of 24 hours notice. It may be that if you use the services of a letting agent that he or she carries out periodic inspections on your behalf but there is nothing to stop you doing so yourself as well. If you do not use a letting agent then you should consider carrying out inspections every so often. How frequently is up to you. If you have a long-standing tenant who has been in the property for years you may choose to visit the property very infrequently. However, just because someone has been paying the rent for years does not mean to…

Buy-to-Let Mortgages Celebrate 18 Years

Hasn’t the buy-to-let sector come a long way in the 18 years since specific mortgages started to be offered by the major lenders to help landlords fund the purchase of an investment property? Back in 1996, there were 2.4 million residential properties within the private rented sector. Today, there are 4.9 million homes. There can be no doubt that the ability for a landlord to arrange a buy-to-let mortgage has had a bearing on this increase. Previously, it would have proved difficult for someone to start to get on the buy-to-let property ladder by investing in his or her first rental property. They would either have had to fund the purchase outright from savings or borrow the money from a bank on a business loan involving them having to find a larger deposit than they have to do these days with a conventional buy-to-let mortgage and pay a higher rate of interest and fees. There are numerous lenders currently offering buy-to-let mortgages. This makes it a very competitive marketplace resulting in the customer being able to benefit from some excellent deals. To find the most suitable buy-to-let mortgage can involve some research on the part of the landlord. You could…

Which Type Of Residential Investment Property Provides The Best Rental Income Yield?

As a landlord, when you are considering buying a residential investment property to let out you may be making the purchase for a couple of reasons. Firstly, you hope that should you ever come to sell the property in 10 to 30 years time that it has increased substantially in value and secondly you are looking to achieve a good rental income from it. The type of property that you buy could have an impact on both of the above things but let’s focus on the latter – the rental income yield. Mortgages for Business produce a Complex Buy to Let Index each quarter that looks at details of mortgage transactions on Vanilla Buy to Let properties (i.e. standard 2 to 4 bed houses and flats), Multi-unit Freehold Blocks (i.e. purpose built flats), Houses in Multiple Occupation (i.e. private houses for students to let with their own locked bedroom doors and shared kitchen/bathroom) and Semi-Commercial Property (i.e. shops with flats above). You may be interested to know that the index also provides information about the gross average rental income yield the above types of property produce. Obviously, the figures can change going forward but we thought that you may find…

What Action Do You Take If A Tenant Misses A Rental Payment?

Before discussing the above, it is perhaps a good idea to remind you of the legal situation should a tenant miss their rental payments. You are no doubt aware that you are not legally allowed to repossess your investment property just because your tenant has missed a month’s rent. It requires a court to finish a tenancy agreement due to non-payment. In fact, usually your tenant must be at least 2 month’s behind with their rent before a court will consider giving a warrant for possession. However, there are a number of things that you can do to reduce the possibility of having to take legal action. Let’s have a look at some of them: – Vetting of prospective tenants To reduce the possibility of problems with non-payment of rent, you could ask to see bank statements and salary slips. You could get a reference from a previous landlord and one from the employer. You could also have a credit reference search carried out to help assess the creditworthiness of the prospective tenant. Guarantor You may ask the tenant to provide the name of a reputable individual who would be prepared to act as a guarantor should the tenant not…

Drop In Rent Rises Forecast

The result of a survey by Your Move and Reeds Rains in respect of forecast rent rises during the next year is a little concerning. Presently, rental income on residential properties is rising by an average of 2.4% per annum. We don’t think many people can complain about that bearing in mind that the UK inflation rate dropped to 1.5% in August and the Bank of England have a target of 2%. However, this survey is predicting that the average annual rise in residential rental income over the next year will only be 1.8%. This does rather put a different perspective on things. It is also interesting to note that a large percentage (57%) of the 1,100 private landlords taking part in the survey do not intend to raise the rent that they will be charging their tenants over the next year. A lot of landlords that intend to raise rents are doing so with inflation in mind being the main reason with the second most popular reason for increasing rent being to cover the cost of maintaining the property. On a more positive note, the survey revealed that 41% of landlords have seen an increase in interest from potential…

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