As all landlords are aware, producing a detailed inventory when a tenant checks in and checks out of a property is the best way to avoid exposure to a costly dispute over alleged damage and/or wear and tear.

In the good old days, landlords would write a detailed and descriptive list of existing damage plus the entire contents of the property, but in these modern times of fancy technology, a detailed written inventory has in many cases been superseded by the use of video film footage and photographs, with many landlords feeling that this is more than enough to protect them if tenants cause damage and they need to make a claim for repairs.

Why are videos and photographs not enough to protect a landlord from financial loss?

The vast majority of the time, whilst video film footage and photographs can be useful for highlighting extensive areas of damage such as stains on carpets or broken kitchen units, they not enough on their own because they usually fail to show the small detail such as cuts to worktops and cracks to porcelain sinks. And without sufficient evidence to back up claims made in a dispute, the case will be lost.

However, photographs and films are still very useful as long as you follow certain guidelines:

• Always date stamp photos and film footage.
• Take before and after shots and include a written narrative to provide extra detail .
• Make sure the scale of the picture is clearly shown.
• Use a good quality printer and print large photos.

Rogue landlords give the rest of us a bad name. They harass their tenants, illegally evict them, and generally do the opposite of everything a good landlord would do. But unfortunately, there are an awful lot of rogue landlords operating in this country, and after reading an interesting article in yesterday’s Guardian, I am beginning to think that perhaps a lack of action from local authorities is not necessarily to blame.

Many people, in particular the housing charity, Shelter, are firmly convinced that local authorities are at fault for not prosecuting enough rogue landlords, and therefore doing little to discourage disreputable landlords from exploiting their tenants for profit. The charity cites figures from a recent report indicating that there were only 270 successful prosecutions against rogue landlords in the last twelve months, despite the fact there were more than 11,000 complaints.

However, when you look at the bigger picture, it becomes clear that local authorities are more than willing to act against rogue landlords who abuse their tenants, but thanks to wholesale budget cuts and the sheer size of the problem, most of the time they do not have sufficient resources to do anything other than suggest dispute resolution services.

So apart from providing extra resources to help local authorities deal with the problem, what else can be done?

Regulating the private rented sector would definitely help, as would making sure the police have a greater understanding of a tenant’s rights instead of helping rogue landlords illegally evict tenants—which is often what happens. But in the meantime, with increasing numbers of families forced into the rental sector, the problem of rogue landlords is unlikely to disappear any time soon.

If you have not already taken advantage of the great low cost buy-to-let mortgage deals banks have been offering over the last few months, you might just be too late.

As I have been saying for ages, with interest rates so low and the rental market so buoyant, it is an excellent time to invest in rental property, so it is therefore not surprising that millions of people have also come to that conclusion. As a result, the lenders have been inundated with applications for new buy-to-let loans.

There have been some incredibly cheap mortgage deals on offer of late, which in part has helped fuel the buy-to-let boom. So it is rather a shame that the best of these cheap deals are no longer available to prospective landlords—big lenders such as the Skipton Building Society and buy-to-let specialist, Kensington, have all withdrawn their cheapest rates after reaching their lending limit on the cheapest (and most popular) buy-to-let mortgage deals.

Unfortunately, this means that any landlords who have not already acted and secured a low fixed rate or tracker deal are going to be stuck with much higher repayments on their loan.

However, even at higher rates, investing in a rental property is still a wise decision if you have the available funds. The number of tenants continues to rise, as does the average rental income, but if you ARE considering cashing in on the boom, do not delay or you could miss out on some of the best deals once again!

In the current economic climate, it can be very tempting as a landlord to save money by not being as fastidious with property upkeep as you might once have been. After all, when money is tight, the last thing you want to have to do is spend some of your rental income maintaining your properties on a regular basis. However, no matter how tight your property maintenance budget might be, ignoring such matters is likely to be a false economy with winter approaching.

I consider property maintenance very important, but according to figures released from one of the UK’s largest insurance brokers, claims made by landlords for incidents such as burst pipes and frost damage have increased by 5% in the last three years, and water damage is the biggest area of claims. This trend would strongly suggest that many landlords are ignoring the need for reinvestment in their rental properties in order to save money.

But such an approach will not help you form happy relationships with your existing tenants and it might even put off future tenants. So instead of trying to save some money in the short term, look at the bigger picture and make sure your properties are suitably watertight and ready for another winter, because if the sub-zero temperatures of last winter are anything to go by, neglecting essential property maintenance could see you landed with a hefty (and entirely avoidable) repair bill. And with heavy snow forecast for mid October, burst pipes and water damage insurance claims will not make for a very merry Christmas!

Like many, I have been in the property rental business for many years and I can clearly recall when the boom times went bust back in 2007. Thankfully, my buy to let business successfully weathered the storm (unlike many other landlords), and my property portfolio is now more fruitful than ever, so I was interested to read that the number of new property investors is now on the increase for the first time since 2007.

According to figures released from one of the biggest house builders, Barratt, the number of sales to investors is 25% up on the same period last year. The company is also reporting that increasing numbers of investors are buyers with a substantial cash deposit. Another notable trend is that any new housing development near transport links in the greater London area is selling like hot cakes. Of course this sudden upsurge in the property investor market is hardly a great surprise when you consider how much rental yields are rising, particularly in the London area, but if you have yet to buy any suitable properties, you might want to give it some serious consideration!

Overall, the property market continues to be held back by the restrictions still in place from many of the big high street mortgage lenders, so until the banks relax their lending criteria, houses prices are fairly low. But with interest rates also at a historic low, this is definitely an excellent opportunity for those with substantial savings to buy an investment property and secure a good income from the rental market.
 

As we are all very much aware, the cost of living continues to rise almost on a daily basis, and with the price hikes in food and energy showing no signs of abating, more and more people are choosing to jump off the property ladder and move into the rental market.

The situation is of course no different in London, and according to recent figures, rental prices in London are now at an all time high, despite the fact that the average salary is not rising at the same rate.

Tenants living in London can now expect to pay £1,202 per month. This figure is 12.2 percent more than the same period last year and the average rent in London is now higher than it has ever been. The lack of availability of rental accommodation is feeding the rise of rents in London, and as more and more people struggle to get mortgages and are forced into the rental sector, it is highly likely that demand will continue to rise.

But although the gap between rental prices and salaries is widening and placing pressure on tenants, landlords in London are benefiting from the situation. With the average rental property being snapped up within hours of being placed on the rental market, London landlords have never had it so good.

Interestingly though, the average length of tenancy has fallen in line with the rise in rents, so even though landlords are gaining from the extra income, they are seeing a higher turnover of tenants in their properties as people are choosing to move more frequently.

Going “green” is always in the news for one reason or another and with energy prices at an all-time high, there are many advantages to consumers if homes are more energy efficient. But as a landlord, are there any advantages to having “greener” rental properties?

The government is currently trying to encourage property owners to consider the benefits of going green, and with this in mind it has developed the Green Deal Scheme to help improve energy efficiency in homes and rental properties. At present, the scheme is still in the early stages, but if it does go ahead, loans would be made available to property owners, including landlords, from October 2012.

How would the Green Deal Scheme work?

The government intends to offer financial incentives in the form of grants towards green energy efficiency home improvements, including cavity wall and loft insulation. The repayments would be deducted via a levy added on to utility bills, but over time the increased energy efficiency of the property would ensure that energy bills would be lower anyway.

Are landlords likely to be interested?

When questioned as part of a survey by the National Landlords Association (NLA), more than two thirds of landlords expressed a serious interest in signing up for the Green Deal Scheme. Personally speaking, the thought of incentives towards adding energy efficiency features such as loft and cavity wall insulation makes sound economic sense. Not only do the tenants stand to benefit from the cost savings made on energy bills, I also stand to benefit by making my properties more marketable to new tenants, so everyone’s a winner!

According to new figures released by the Deposit Protection Service (DPS), most disputes between landlords and tenants during June and July of this year were as a result of alleged damage to the rental property. However, unless landlords ensure that they have their paperwork in order and are well prepared for any potential dispute, they are unlikely to win their case against the tenant!

Experienced landlords know the ropes and are usually well versed at dealing with potential disputes over issues such as property damage. We understand the importance of establishing the correct procedures from the beginning of the tenancy and are less likely to end up out of pocket should a dispute occur. But what are the procedures you need to follow to ensure you stand a chance of winning should a dispute end up in court?

Make sure your tenant is given a fair contract along with a detailed inventory. Use dated photographs and videos to illustrate what condition the property was in prior to the tenancy agreement—this will help you prove that a tenant has damaged the property.

What happens if a dispute arises?

 Always ensure you have evidence to support your claim. The more evidence you have, the more likely you are to win in court.

 Be present when the tenant moves in and out of the property. This will help you iron out any issues that may arise.

 Keep receipts for any repairs and provide detailed accounts if the dispute is over unpaid rent.

And finally, accept that normal wear and tear on a property is to be expected. As much as you would like the property to still be in pristine condition after two years, it is probably wishful thinking on your part!

As the buy-to-let mortgage market becomes increasingly competitive, the bewildering choice of finance products on offer to would-be landlords and existing landlords has recently expanded to include loans from the Yorkshire Building Society. Initial mortgage products will only be available to properties in London and some postcodes in the southeast, but over time, should the products prove successful, it is very likely that the Yorkshire Building Society will expand its geographical area to include other counties.

What are the lending criteria?

If a buy to let mortgage from the Yorkshire Building Society sounds good to you, be aware that the building society is fairly strict in its lending criteria. In order to qualify for a buy to let mortgage, you must be aged 30 or older if you are an existing landlord, or 35+ if this is your first time. You must also earn a minimum of £35k per year and the rental property must be no more than 40 miles from your home.

Other financial institutions are also waking up to the thriving market in buy to let mortgage products. The British bank, Aldermore, has also changed its buy to let mortgage product lending criteria. First time landlords are now welcome and you can now be 85 and still qualify for a buy to let mortgage—which is great news if you are looking to maximise your pension income!

It appears that the future is looking bright for anyone hoping to invest in a buy to let property, but as I always recommend in my posts, make sure you shop around for the best deals!

Credit checks on tenants are the most effective weapon a landlord has against tenants who are at risk of defaulting on their rent payments. Most of the time, my tenants pass credit checks and all is well—they move in to one of my properties and everyone is happy.

However, with the ever-increasing rise in average monthly rents, the numbers of people who are failing to pass the credit reference checks is also rising. This is a particular problem in London where the average rent has soared in recent months. According to recent figures, as many as 1 in 5 tenants are failing credit checks, which is a sharp rise from a few years ago when it was only 1 in 20.

As the recession continues to bite further, credit reference agencies are insisting that would-be tenants have a salary that is three times the monthly rent, or two and a half times the annual rent, which is quite a hefty figure if you live and work in London. And, somewhat surprisingly, even tenants with lots of cash are being caught out by the rigorous credit referencing checks if they have no UK assets, or are not currently employed.

How can landlords work with a tenant who fails a credit referencing check?

Obviously you can turn them away, but if nobody else is queuing up to move into your property, this might not be the right decision. An alternative course of action is to ask for a much larger deposit, or request that the tenant use a guarantor for their tenancy agreement, so if they do subsequently default on the rent, the guarantor is responsible for rent arrears and/or damages/losses.