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Posts Tagged: National Landlords Association

Rental Deposits To Be Capped

If you are a landlord whether that be one who has been involved in the but-to-let market for a number of years, someone who has recently entered the market or you are considering purchasing your first investment property to let out to tenants then you may be interested to note that it was recently announced in the Queen’s Speech that there is to be a cap placed upon the level of deposit a landlord can insist on. Landlords will only be able to hold a deposit of one month’s rent. This decision may concern some landlords. In fact, it is estimated by the National Landlords Association that in the region of 40% of deposits are for in excess of 40% of one month’s rent. Some landlords may be concerned that this is not a big enough deposit. This could be because there will be a number of prospective tenants who landlords feel are more likely to not take care of the landlord’s property and that the deposit is no where near enough to cover the cost of any repair work. This may mean that some landlords will be reluctant to allow some people on lower incomes to become tenants in…

The Benefits Of Being An Accredited Landlord

Whether you are new to the lettings business or are a long established landlord you could consider going through the process of becoming an accredited landlord and registering on the National Register of Accredited Landlords that is operated by The National Landlords Association (NLA). There are a number of benefits of being able to evidence to prospective tenants that you are a responsible and good tenant by obtaining accreditation present. For instance, it could result in you receiving more enquiries from prospective tenants as well as letting agents that, in turn, could lead to you being more able to fill empty properties/rooms and thus increase your rental income. Becoming accredited is not an onerous task. You will be required to complete a foundation course as well as agreeing to the National Landlords Association’s scheme rules and code of practice. You will also be required to do continued professional development. If, in the last 5 years, you have already gone through a different accreditation scheme such as MLAS and LLAS then these can be used instead of the NLA Accreditation scheme. Some of the guidelines that you will have to comply with are issuing tenants with a suitable rental agreement, providing…

How Much Are Your Buy to Let Mortgage Repayments?

If you are a landlord, unless you are fortunate enough to have sufficient savings to be able to buy an investment property outright, it is likely that you will need to borrow some of the funds necessary to buy a property to rent out to tenants. The most popular way of doing this is by arranging a buy to let mortgage through one of the major banks or building societies. With interest rates so low it is often one of the most financially viable ways of raising some of the funds. When looking into arranging a buy to let mortgage you will need to consider various aspects of the package being offered by the lender such as the interest rate and the fees. However, did you realise just how much per annum landlords are spending on repayments for such mortgages? Well, according to research carried out by the National Landlords Association (NLA) the total amount of repayments in the last year on this sort of mortgage came to a hefty £21.9 billion. When you consider that it is estimated that in the region of 1.05 million landlords have buy to let borrowing that works out at an average of almost…

Concern Over Rent Arrears

There is no doubt that, for many, making the decision to enter the investment property marketplace for the first time is a big step to take. You will be involved in carrying out some number crunching to establish if it is going to be financially viable but those profit projections can be affected by a number of things. For instance, a big concern amongst some landlords is if they take on a tenant that proves to be somewhat uncaring when it coms to looking after the property whilst they are living in it. Yes, you will no doubt have landlord insurance but if a tenant trashes the place and destroys many of the fixtures and fittings and steals some of the furnishings it could eat into your profit. Recent research by the National Landlords Association (NLA) has revealed that 32%, almost a third, of landlords here in the UK have had tenants that have gone into arrears with their rent in the last year. That is around half a million tenants – a sizeable number. On average these landlords are faced with trying to retrieve rent arrears of £1,649 from each tenant. – that is over £800 million. Another interesting…

Some Landlords Finding It Difficult To Raise Finance

According to the National Landlords Association (NLA), 67% of landlords will arrange a buy-to-let mortgage towards the funding of an investment property that they are then going to let out. Presumably the rest will source the funds from the likes of savings or borrow the money from other sources such as family. However, it is concerning to read that about 300,000 landlords (approximately 20%) who had wanted to buy more properties to rent out in the past 12 months were unable to do so as they were struggling to raise finance. Apparently, over the following 3 months, 31% of landlords intend to seek borrowing by way of a buy-to-let mortgage or re-mortgaging. Interestingly, 56% of landlords taking part in the survey felt that the criteria for buy-to-let mortgages was shall we say rather conservative. Also, 59% of landlords expressed their concern in this survey that providers of such finance do not take into account their personal circumstances. This will concern many landlords, both existing and those wanting to venture into this sector for the first time. One would have thought that lenders would be more supportive of landlords in view of the fact that we appear to have an inadequate…

Damaged Tenanted Property Statistics Give Cause For Concern

It was only last week that we extolled the benefits of having periodic checks made to your investment property. Those visits could be made by yourself or someone from the letting agent that is responsible for managing the property. We felt that such inspections would help ensure the tenants are complying with the terms of the rental agreement and are maintaining the property, fixtures, fittings and its contents in a satisfactory condition. If it was discovered that they were not then action could be taken to protect your investment. Therefore, we are sure that you will find the following statistics produced by the National Landlords Association (NLA) interesting and, in our opinion, merely support our views expressed in last week’s blog post. The research revealed that over a period of one year, 28% of landlords had a property damaged by their tenants. When you consider that there are estimated to be in the region of 1.5 million landlords located in the UK that is a considerable number of properties. Interestingly, it is in the North East of England that landlords are more likely going to encounter damage to their investment properties. The research showed that around 46% of such properties…

Are You Trading Profitably?

When you purchase an investment property to let out, presumably you are doing so to make money. If you have bought the property with the assistance of a capital and interest buy-to-let mortgage you will, at very least, be looking for the rental monies to cover the mortgage repayments and any other related expenses. If you have bought an investment property outright from savings you will be looking for the rental income to provide a greater return than you were getting in your savings account and also cover the expenses involved in renting out a property. It is interesting to hear that, according to the National Landlords Association (NLA), there are 27% of landlords who own and rent out a single investment property who are either trading at a loss or are breaking even. Furthermore, 19% of landlords who own between two to four investment properties that they rent out are either loosing money or are just breaking even. These statistics are concerning and, in some cases, it begs the question as to how much research and planning some landlords have carried out when assessing the viability of a particular property as to its suitability for renting out. It would…

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