PropertyExpert
Author Archives: PropertyExpert

Property Management 101: The things all Landlords should Do

Property Management

Every landlord, no matter at what stage of his career juggles with a lot of tasks at hand to work efficiently. However, it is never easy to complete all of them in time. The setbacks in the field happen mostly because of the lack of homework and research. Yet, due to the tough real estate market, it is very important for the landlords to keep their approach professional and reliable. 

So here are some tried and tested tips for all the landlords out there who want to make their real estate game stronger and faster!

Tips to Increase and Manage Your Property Business!

The following tips will evaluate your dealings and make your work manageable and efficient!

1.      Keep a record of all Your Tenants

The first rule to do any rental project is to keep a proper record of all your tenants with necessary information. Never do any verbal agreement neither accept any application or request from your clients that are not in writing. Without, providing proper information of previous payments, property references and biodata, do not hand over the property. The best thing to do would be hiring one of the property management companies to do all these tasks for you. It will keep you updated and will help you run the business smoothly.

2.      When you Choose a Tenant, Choose Wisely

It is very important to satisfy your business standards while dealing with property. Choose your tenant well. When you receive a request for rental, ask for the referrals from previous landlords. So you could be sure about your property will be in safe hands and you will receive regular payments.

3.      Evaluate your Service System

The simple your system and procedure will be, the more amount of people will be interested to deal with you. People always compare one landlord to another and whether their system is smooth or not. Keep your dealings communicatively effective and all your data sorted out. Remember property maintenance is chaotic. If you won’t keep things in order, they will definitely mess up!

4.      Keep a Timeline Check on You Rental’s Deadline

You will miss a lot of important payment deadlines if you failed to keep a check on your rentals every now and then. It is better to put reminders and a list of deadlines. Again, by availing any property management services, this can be easy. Also, visit the properties you have rented as well. In case, there is property damage or something that is needed to be fixed from your side, you must cater it immediately to keep your tenants under a good impression. This will help you expand your name in the market.

Conclusion

To cut the long story short, you must fix all your dealing through proper conduct of code. Also, keep your presence visible in the real estate circle and social media to connect with people who can be possible tenants.

So that is all, tell us if you can think of anything else a landlord must do!

What Do Property Management Companies Do?

WHAT DO PROPERTY MANAGEMENT COMPANIES DO

What Do Property Management Companies Do?

List of Responsibilities of Residential Property Companies.

MARKETING OF PROPERTY
  • Take Processional Photos
  • Write Compelling Ad Copy
  • Post Adverts on Popular Portals
  • Respond to Enquires & Arrange Viewings
LEGAL COMPLIANCE
PROPERTY MAINTENANCE
  • 1st Line Contact Centre for Tenants
  • Appoint Contractor for Repairs
  • Manage Repairs
  • Routine Inspections
  • Bookkeeping
TENANT EXIT (PLANNED & UNPLANNED)
  • Check Inventory
  • Negotiate Deport Return
  • Check Out Move Out
  • Evict a Tenant
  • Arrange End Of Tenancy Cleaning

Landlords: Vetting your tenants amidst new rules

besmove

As a landlord, your property is one of your greatest asset and your tenants are temporary custodians of this asset. It’s important that you ​have peace of mind with the confidence that your tenants looking after your ​property as well as you would. 

New rules

Recent changes in the buy-to-let (BTL) landscape are making tenant referencing even more important than in the past. New right-to-rent rules are one of the most significant. Under the legislation, you—as the landlord—need to have seen your tenant’s actual passport and permanent residency and right to stay documents before handing over the keys. The UK government site has guidance on the following aspects of right-to-rent rules.

Use expert agencies

It has become essential to use third party tenant referencing agencies either yourself or via your letting agent. This is especially important in this time of increasing fraud which can mask illegal residents, criminals, and tenants with poor records.

Fake documents, such as bank statements, utility bills, and employment history are easily available online so it is wise for you to discuss your service agreement with the letting agency or directly with the referencing agency to confirm that they will provide verification of identity, credit history, mortgage statements, a Cifas fraud prevention check, county court judgments, employment references, and a renting track record—important verification that a prospective tenant is worthy of the value of the asset being placed in their care.

It is important to make sure agencies are complying with their tenant referencing obligations and agree to bill you only when your tenant’s first payment of rent has been made, not before.

Guarantors

If you wish to make an agreement with a potential tenant who checks all the boxes but has an insufficient credit history, consider having a guarantor in place to cover in the event of default.

Insurance protection

Some letting agencies provide insurance for protection against rent arrears and also to cover costs of an eviction for references they have passed. Rent guarantee insurance is approximately £100 per year and is tax deductible.

The case for caution

While vetting tenants may seem an intensive and overly-complex aspect of the landlord’s burden, the cost and aggravation—should things go wrong—can be devastating. Talk to your letting agent or referencing agency to ensure your protection is iron clad.

To ensure your further peace of mind, Besmove has the property management experience and resources to deliver the greatest possible return on your rental properties with the following promises:

  • We know London’s BTL territory 
  • Our services can be deducted from your tax bill
  • We track your receipts and expenses so you don’t have to
  • We offer up-to-date information on the BTL marketplace
  • We stage and market your property for maximum return
  • We contract only with experienced and trusted tradespeople

Call the property management specialists at Besmove today to learn how you can survive AND PROSPER in today’s property marketplace.

​For more information on the topic you can check out th​e reference articles;

FT report shines light for BLT investors

In 2015, the UK government launched a campaign of measures giving priority to the interests of first-time buyers over that of buy-to-let (BTL) investors. Since that time, BTL investors have weathered a sea change in the market that has introduced the following constraints: 

  • Higher costs, greater complexity, and more stringent regulations
  • More strict underwriting criteria
  • A 3 per cent stamp duty increase

In May 2017, the Financial Times Advisor published a comprehensive special report designed to give the UK’s BTL investors a range of expert opinions—in the areas of law, finance, and brokering—on the full impact of the changes.

Sharing our notes

​There is consensus that the tax and legislation changes have implications for buy-to-let investors at all levels of complexity, Besmove has identified the top implications for the houses of multiple occupation (HMO)* investor:

  • Tax and interest:  Landlords are now restricted from offsetting finance interest against rental income.
  • Wear and tear: Since April 6, 2016, landlords no longer claim 10 per cent of the net rent as ‘wear and tear’ allowance for furniture and equipment provided with a furnished residential letting. Now, they can only deduct the actual costs they incur replacing furnishings in that property.
  • Price of security: Changes to BTL lenders’ assessments and stress test rates could set deposit thresholds higher.
  • Bulk benefit: HMO operators will do better than single occupancy operators because the forecasted and inevitable rise in rents can be shouldered across tenants rather than absorbed by single tenants.
  • Limited company option: Multiple property homeowners may mitigate penalties by incorporating properties into a special purpose vehicle (SPV), a form of incorporation (note: this requires careful consultation with mortgage and tax professionals)
  • Shifting down: Some experts suggest the changes have unduly affected higher-value properties and suggest investors diversify their property portfolios to a combination of types.
  • A little help: Increasing underwriting standards means investors will need to rely more on brokers and other professionals to get them through the process quickly and without complication.

*Link here for a detailed breakdown of HMOs and complex buy-to-let scenarios.

Where from here?

With the buy-to-let environment now having to operate more like a business than a lucrative hobby, investors are compelled to run increasingly lean, efficient operations. Besmove has the property management experience and resources to deliver the greatest possible return on your rental properties with the following promises:   

  • We know London’s BTL territory
  • Our services can be deducted from your tax bill
  • We track your receipts and expenses so you don’t have to
  • We offer up-to-date information on the BTL marketplace
  • We stage and market your property for maximum return
  • We contract only experienced and trusted tradespeople

​No one should have to pay the cost of an amateur’s learning curve in London’s increasingly complex BTL environment. Bring it to us instead, we are the experts​. Call the property management specialists at Besmove today to learn how you can survive AND PROSPER in today’s property marketplace.

Why landlords should use a dedicated Property Management Company

Property Management Companies

1. Are you a professional bookkeeper and excellent in record keeping of your rental property details?

Some homeowners are experts in this field; these people will not experience difficulties in this aspect. In the case of other homeowners who are not professional bookkeepers, recruitment of an accountant may be a fantastic choice. A property management company can also take off the stress from you if you are willing to hire their services. Best of all, these services can be tax deductible, so you could get this done without  losing your profit margin. In Fact, you may increase your profit margin through increased rent and lower vacancy rates.

2. Can you regularly visit if you live close or far from the rental property?

property repair

Living close to the leased property will offer you the chance to visit the place for inspections, maintenance, and collection of levies. Moreover, if you live far from the property, you have to consider the time utilized in traveling and the costs associated with the trip. However, if the space of the property is a large one, you may be tempted to visit often, and that could be catastrophic. It is essential to have a schedule for monthly visitation to check the property.

property roofing repair

3. Do you have trusted traders you can call on the phone for help when you cannot do it on your own?

The process of finding reputable and trustworthy contractors may be tough and time-consuming. You are likely to engage the services of employees who are not committed to your vision; these people will cheat you and perform ridiculous tasks and offer you a wrong quote. You need to understand that you cannot shy away from the issue of repairs and maintenance in property management. Engaging the services of a reliable property management company will ensure the task in your property is carried out at a fast pace without compromising quality.

4. Would be OK to receive a call from a tenant complaining about a fault in  her bathroom at 2 AM?

property maintenance

This question is complicated, and it is crucial to provide adequate honest answers in this regard. As a homeowner, you are responsible and answerable to calls from your tenants, and you must understand that your holiday, special moments, vacation and other times in your life must not prevent you from taking care of the urgent needs of your tenants when there is any need. It is essential to note that you will not get called to fix one or the other more often, but if there is a call for you to set it, be fast about the process. 

Property Cleaning

5. As a homeowner, are you willing to confront tenants who have not fulfilled their financial obligations and  refuse to pay?

 You must ensure tenants pay as soon as possible by making use of gentle reminders of their indebtedness. If the application of friendly reminder does not work, you may have to employ legal means. A property management company will help you implement the principles laid out in the agreement with the tenant.