Browsing category: Lettings advice

  • October 1, 2024

    7 Things to Consider When Selling an Inherited Home

    Selling an inherited home can be an emotional and sometimes overwhelming experience. Whether the property brings fond memories or presents unexpected challenges, there are a few important things to keep in mind when deciding to sell. Here’s a guide to help you navigate the process.

    1. Give Yourself Time to Process

    First and foremost, take a moment to breathe. Inheriting a home often follows the passing of a loved one, and selling straight away might feel rushed. It’s okay to take your time to process everything before jumping into decisions. You don’t need to sell immediately—give yourself space to think about what’s best for you.

    2. Understand the Tax Implications

    One of the first things to check when you inherit a property is whether there are any tax obligations. In the UK, there may be inheritance tax to consider, and when you sell the home, you might also face capital gains tax depending on how much the property has appreciated in value. It’s a good idea to speak to an accountant or tax advisor to understand the financial side.

    3. Get the House Valued

    Before you make any decisions, it’s important to know what the house is worth. Get a few estate agents in to give you valuations so you have a clear idea of the property’s value in today’s market. This can help you figure out whether selling is the best option, or if you might want to rent the property out instead.

    4. Consider the Condition of the Property

    Inherited homes are often older or may have been lived in by elderly relatives, so they might need some work before going on the market. Take a close look at the condition of the house—does it need a fresh coat of paint, some repairs, or a bit of TLC to make it more appealing to buyers? You may need to budget for a few upgrades to get the best price.

    5. Sort Through Personal Belongings

    This can be one of the hardest parts of selling an inherited home. Sorting through personal belongings can bring up a lot of emotions. Take your time going through the items—keep what’s sentimental, donate what you can, and responsibly clear out the rest. If it feels too overwhelming, you can always hire a professional service to help.

    6. Decide Whether to Sell As-Is or Renovate

    You’ll need to decide whether to sell the property as-is or invest in some renovations before putting it on the market. While fixing up the house might help you get a higher selling price, it could also require time and money that you may not want to invest. Consider the pros and cons—if the house is in decent shape, selling as-is might be the simpler route.

    7. Work with an Estate Agent You Trust

    Lastly, choosing the right estate agent can make the whole process smoother. Look for an agent with experience in selling inherited homes and who understands the emotional side of the sale as well as the practical. They can help guide you through pricing, marketing, and closing the sale, making sure everything goes as smoothly as possible.

    Final Thoughts

    Selling an inherited home comes with its own set of challenges, but with the right approach, it doesn’t have to be overwhelming. Take your time, seek professional advice where needed, and focus on what feels right for you. Whether you decide to sell, rent, or hold onto the property for a while, the decision is yours to make.

    If you need help with your inherited property, reach out to us today at 01706 356633 or enquiries@reside.agency, and we’ll help you all the way.

  • June 22, 2024

    Becoming an Accidental Landlord: A Practical Guide

    Introduction
    Have you found yourself renting out a property due to unforeseen circumstances rather than a planned investment? You’re not alone. This guide covers 7 essential considerations to help you become a successful ‘accidental’ landlord.

    Understanding Accidental Landlords
    An ‘accidental landlord’ is someone who rents out a property due to circumstances rather than a deliberate investment decision. Common scenarios include:

    Moving in with a partner
    Inheriting a property
    Temporarily relocating for work
    Needing to move but struggling to sell a home

    If any of these situations apply to you, renting out your property can be a good source of extra income. However, there are important legal steps to follow. Here’s a 7-step guide to help you start your journey as a successful ‘accidental’ landlord.

    Step 1: Check the Mortgage

    First, determine if your property has a mortgage. If it’s a standard residential mortgage, inform your lender about your intention to rent it out. Failure to do so could breach your mortgage terms, leading to increased interest rates, back-payments, fines, or even a demand for full repayment.

    Your lender might:

    Grant ‘consent to let,’ allowing you to keep your residential mortgage temporarily, usually with higher interest rates and additional fees.
    Require you to switch to a buy-to-let mortgage, which has different criteria, including rental income levels and loan-to-value ratios.

    Consult a buy-to-let mortgage broker to explore your options and secure the best deal for your situation.

    Step 2: Review Lease Restrictions or Covenants

    If your property is leasehold, check the lease for any clauses that restrict letting or specify tenant types. Possible restrictions include:

    Only owner-occupiers can live in the property
    Only single individuals or family units can rent the property
    Prospective tenants must be approved by the freeholder

    Ensure you understand these restrictions and inform your prospective tenants accordingly.

    Step 3: Seek Tax and Legal Advice

    Rental income is subject to tax, and property tax laws can be complex. Consult a property legal expert and a tax consultant specialising in buy-to-let to manage your property and profits efficiently. Planning for future property decisions, such as selling or passing it on, can significantly impact your profitability.

    Step 4: Check the Energy Efficiency Rating (EPC)

    All rental properties must have a minimum ‘E’ rating on their Energy Performance Certificate (EPC). The government plans to raise this requirement to ‘C’ by 2025. Consider making energy efficiency improvements now, such as upgrading insulation, installing double glazing, or updating the boiler, to meet future standards.

    Step 5: Consult a Professional Letting Agent

    Even if you plan to manage the property yourself, a professional letting agent can help you navigate the complex legislation governing rentals. They can expedite the process of getting your property ready for rent and offer ongoing benefits such as:

    In-depth knowledge of the local rental market
    Reliable systems for advertising, referencing, and maintenance
    Membership in professional bodies, ensuring high standards
    Acting as a buffer between you and the tenant in case of disputes

    Step 6: Ensure Health and Safety Compliance

    As a landlord, you must prioritise the health and safety of your tenants. Key obligations include:

    Ensuring the property is fit for habitation
    Installing fire safety measures
    Conducting periodic gas and electrical safety checks
    Providing an effective heating system
    Addressing risks like damp, mould, and trip hazards
    Securing the property

    Understand all legal obligations and invest in necessary changes to ensure compliance, especially if the property is an HMO.

    Step 7: Consider Refurbishment

    Successful letting hinges on attracting quality tenants and securing good rent. If your property isn’t modern or recently refurbished, you may need to invest in updates or new furnishings. Research similar rentals or consult a local agent to understand what tenants seek and make your property as appealing as possible.

    Get In Touch

    Letting a property involves navigating various legal and practical challenges. If you’re an accidental landlord looking to rent out your property, contact us for guidance on the local market and help to ensure your rental is successful now and in the future.

    Reach out to us today at 01706 356633 or enquiries@reside.agency, and we’ll arrange a consultation to help you with your first steps to being a landlord.

  • February 18, 2024

    How to choose the right letting agent: 7 things you should consider.

    7 THINGS TO LOOK FOR

    Finding the perfect partner has never been easier with apps and social media. Searching for love you can download an app and with the swipe of a finger find your dream match.Unfortunately when it comes to finding a lettings agent there isn’t an app for that!

    In our previous discussion, we delved into the advantages of partnering with a letting agent, emphasizing how they can save you time, money, and provide peace of mind. With over 13,500 estate agents in the UK, most of whom manage lettings, the task of selecting the right one might seem daunting.

    Choosing the perfect letting agent is akin to finding ‘the one’ in a romantic relationship. They should be responsive, reliable, and genuinely interested in your best interests. Just as compatibility matters in personal relationships, it’s crucial to ensure your values align with your agent’s approach. While corporate agents may boast impressive branding, it’s the substance beneath the surface that truly counts.

    Before committing to a partnership, take the time to acquaint yourself with the agent. Corporate and independent agencies may offer similar services, but their methods and level of personalization can vary significantly. Corporate firms, with their structured processes, may struggle to accommodate individual needs, whereas independent agents often prioritize customer service and adaptability.

    When evaluating potential agents, consider their familiarity with the local area. A deep understanding of the neighborhood can help attract suitable tenants for your property. Moreover, consistency of service is paramount. While corporate agencies may dazzle with their professionalism, personal touch and dedicated service are often the hallmarks of independent agents.

    Being part of the local community can also be advantageous, as it enhances an agent’s network and tenant pool. Independent agents, embedded in the neighborhood fabric, tend to foster stronger connections and may already have ideal tenants in mind for your property.

    While cost is a factor, quality of service should take precedence. Look beyond price tags and assess an agent’s track record, turnaround time, and customer reviews. Independent research, including scrutinizing online reviews and conducting mystery shops, can provide valuable insights into an agent’s reputation and performance.

    Furthermore, endorsements and qualifications signal an agent’s commitment to professionalism and ethical standards. Seek out agents affiliated with reputable industry bodies, such as RICS or NAEA, for added assurance.

    Finally, consider the agent’s philosophy and values. A client-centric approach, grounded in honesty and integrity, is indicative of a trustworthy partner. Ultimately, finding the right letting agent is a crucial step in ensuring the long-term success of your property investment. With diligence and careful consideration, you can find an agent who not only meets your needs but also helps you achieve your property goals.

    Remember, there are thousands of letting agents out there, finding the best fit is the most important factor. Choosing the best letting agent can help ensure your property stays let for the long term.

    If you’re considering starting out in lettings or an existing landlord, we’re eager to assist you. We can explore the range of services we offer and help you discover the ideal letting and management solution aligned with your goals as a landlord.

    Reach out to us today at 01706 356633 or enquiries@reside.agency, and we’ll gladly arrange a discreet and confidential conversation.

  • February 7, 2024

    Time to switch?

    Is it time to consider switching letting agents? As a landlord, your rental property likely stands as one of your most significant financial assets. Thus, ensuring it’s effectively let and managed is paramount.

    If your current letting agent isn’t meeting your expectations and you’re contemplating a change but unsure where to begin, this comprehensive guide provides all the necessary insights to facilitate a smooth transition.

    1. What you need

    As a landlord, entrusting a letting agent involves a significant level of reliance, especially if you’ve opted for a ‘fully managed’ service where the agent oversees both the tenant and property throughout the tenancy on your behalf.

    You depend on your letting agent to:

    • Secure a ‘good’ tenant who can consistently pay the rent on time and maintain your property.
    • Ensure compliance with all relevant legislation regarding both the tenancy and the property.
    • Maintain effective communication with you, keeping you informed of any legal changes impacting your interests.
    • Handle inspections, maintenance, and repairs promptly and economically.
    • Manage any tenancy transitions to minimize vacancy periods and sustain fair market rental rates.
    • Provide guidance on potential rent increases and advise on worthwhile property upgrades or modifications.

    Your rental property stands as one of your most significant financial assets, emphasizing the importance of effective letting and management. Your agent’s primary role should involve ensuring consistent rental income, covering your expenses, and ideally generating a profit. Additionally, they should maintain the property’s condition, providing a safe and comfortable home for tenants while safeguarding its capital value.

    If your agent is falling short of these expectations, you might be considering a switch. But how can you navigate this transition smoothly? Here’s a helpful guide:

    • Review Your Agreement Terms:
    • If your agent is solely responsible for finding tenants, giving notice should be straightforward. However, with fully managed services, there might be an initial tie-in period, delaying an immediate switch. Unless there’s a breach of obligations (see point 3!), the agreement will outline termination procedures for both parties and the required notice period.
    • Note: Many agreements stipulate continued fee payment to the agent as long as their introduced tenant occupies the property. Discuss this with your new agent to avoid overlapping management fees.
    • Secure a New Agent Before Giving Notice:
    • Unlike changing estate agents for property sales, timing is crucial when switching letting agents, especially if your property is currently tenanted. Ensuring continuous and proper management of your property is paramount.
    • Successfully managing a tenancy involves numerous systems, processes, and legal knowledge. Having a new agent lined up before giving notice ensures a seamless handover, minimizing the risk of overlooked tasks.
    1. Key Considerations When Selecting a New Agent
    • Do they possess Client Money Protection insurance? (Legally required)
    • Are they members of a redress scheme? (Legally required)
    • Do they belong to a professional industry body with a Code of Conduct? (e.g., Propertymark or Safeagent)
    • How do they stay informed about legal changes in the industry?
    • What are their fees, particularly for tenancy renewals?
    • Do they have a track record of successfully letting and managing properties similar to yours?
    • Do they have an appealing website and effective marketing strategies?
    • What is their average time to let a property and average annual void period?
    • If possible, seek feedback from one or two of their current landlords.

    These considerations provide valuable insight into the professionalism of the company and their capability to manage your property and tenants effectively. However, the ultimate point on your checklist is whether you feel a rapport with them. Since these are the individuals you and your tenants will interact with for the foreseeable future, possibly for years, liking their approach is crucial.

    Once you’ve identified the agent you wish to transition to, it’s time to notify your current agent.

    • Communicate Your Reasons to Your Agent:
    • Open and amicable discussions often lead to the best resolutions. Clearly articulate your reasons for wanting to switch to your agent. Consider making a list of these reasons before initiating the conversation.
    • If your agent acknowledges the issues, they might be willing to negotiate regarding any contractual tie-ins, especially if their tenant remains in the property. For instance, you could propose a one-time ‘introduction’ fee instead of continuing monthly payments until the tenant vacates.

    Importantly, ensure the old agent agrees to transfer the tenancy file to your new agent. This file should include tenant referencing information, deposit protection details, and gas check certificates. Also, confirm that they will liaise with the tenant to facilitate a seamless handover of rent payments and other responsibilities.

    Ensure that any agreements reached with your agent are formally documented.

    It’s crucial to note that every letting agent must be a member of either The Property Ombudsman or The Property Redress Scheme, as mandated by law. Both provide independent third-party dispute resolution services. If you’ve already discussed your reasons for leaving with your agent and have documented them, but the issues remain unresolved to your satisfaction, you can escalate the matter to the relevant redress scheme to seek resolution.

    1. The Final Step

    Engage Your New Agent

    The last crucial step is to engage your new agent. Be transparent about why you’re choosing to switch to them and clearly outline your expectations for their service. From our experience, a successful landlord-agent relationship hinges on effective communication. It’s vital to establish this from the outset.

    If you’re considering transitioning from your current agent, we’re eager to assist you. We can explore the range of services we offer and help you discover the ideal letting and management solution aligned with your goals as a landlord. Reach out to us today at 01706 356633 or enquiries@reside.agency, and we’ll gladly arrange a discreet and confidential conversation.

  • September 30, 2016

    Three simple tips to quickly letting your property

    Letting your property can be a stressful business, especially if you are new to letting. This often leads to landlords rushing the process and taking on the first tenant who crosses their path. STOP!

    It’s not the only answer to getting your property let quickly and having reliable tenants. Picking the wrong tenant can cause many problems further down the line, which is why having a professional lettings company on your side can really help.

     

    Use a professional lettings agency

    Picking the right estate agency from the start can make all the difference to your lettings experience and save you heartache and possible legal action in the future. Getting Reside on board from the beginning means we can bring all our experience to bear on things such as vetting your tenants, making sure you are on the correct side of the law and that your property is up to current standards. If there are any problems we will highlight them before they become a problem and guide you to a successful and profitable let for your property.

    We are also the experts when it comes to marketing property. We can be open when ‘you’re not’ and are able to do guided viewings which also gives us a good chance to explore the tenants further. We market across all channels extensively which includes using social media to get the maximum amount of viewers for your property and achieving it’s market value.

    Don’t forget we are here to help with your let from day one so we can do inventories, collect rents, arrange maintenance – we do as much or as little as you wish, our lettings service is completely bespoke.

    With Reside you get a quick let, for the best yield and complete peace of mind.

     

    Maximise your property

    Letting a property in many ways is no different to selling one. It needs to have kerb appeal that means prospective tenants can ‘see themselves’ living there. It maybe worth having a look at our blog post on 5 Tips to selling your home – you can find it here.

    Most tenants won’t be able to modify the property so they need to see that it is just the place they want as soon as they walk up to it. The main thing you can do is make it tidy and presentable. Tidy the garden; a bit of strimming and hedge trimming and weeding the driveway or path can make a huge difference. Think of it as laying out a green carpet instead of a red one for the tenants.

    The same goes for the inside of the property, take some time to tidy, dress and stage the scene, we can help you with this if you aren’t sure or are letting from a distance. It’s not a big job to move clutter off work surfaces in the kitchen and bathroom. Tidy the lounge, make the beds, vacuum and dust – simple things which can make the difference between a let and not.

    If you need to fix things such as decorating then go for neutrals and if you are wallpapering avoid anything too trendy, brash and avoid ‘Anaglypta’ style wallpapers. Replace failed bulbs and don’t forget if you have any electrical equipment it will have to be tested show it is safe.

    These things will not only reflect on the price you get but also the quality of tenant.

     

    Why use Reside to manage your property?

    In a word, experience. Whatever level of service you require from an agency we can provide it and have provided it for hundreds of satisfied clients. We are able to provide a full and professional service whether you are a first time landlord or have a portfolio of properties.

    We can effectively market your property using a multi-channel approach, to make sure that no matter what the current market is like, you get a quick let at the best market rate, with no hassle.

    All our staff are professionals in letting and so can deal with all the paperwork, legal stuff and anything that arise during the tenancy.

    If you are thinking of letting a property please give us a call to discuss how we can help. Alternatively click here to find out a little more.

    Get the Reside effect working on your property now!