£2,000 PCM

 

£925 PCM

 

 

 

 

 

 

In today’s technology-driven world, many landlords might ask the question: Why should I use a letting agent when a search engine can write my tenancy agreements for free?

While it might be tempting to construct your own tenancy agreements using an online template or to simply ask an AI engine to do it, there are several key reasons why this is not a suitable option for modern landlords.

Inadequate protection
Tenancy agreements are just as important for protecting landlord rights as they are for tenants. A tenancy agreement which hasn’t been crafted according to local and up-to-date legislation may lack crucial clauses which provide both landlords and tenants with necessary safeguards. These clauses may cover things like property maintenance, rent increases, or handling tenant violations.

When a professional puts together a tenancy agreement for you, they can include provisions which will empower you to take appropriate actions if your tenants breach the terms of the agreement. Agreements crafted without expertise may lack the comprehensive language and the knowledge required to address various disputes which may arise during a tenancy.

Legal compliance issues
Your tenancy agreement is a legally binding document, so it must adhere to the laws of the local jurisdiction. This may sound straightforward, but laws surrounding tenancy agreements can be extremely complex and vary significantly from one place to the next.

A DIY tenancy agreement may not account for the specific legalities of your location, especially if a generalised template has been used. This can leave you vulnerable to both legal and financial repercussions.

Potential for ambiguity and confusion
Poorly written tenancy agreements open up opportunities for miscommunication and ambiguity between landlords and tenants. It’s crucial to use clear and precise language to avoid confusion, as a lack of understanding can lead to disputes over payment schedules, responsibilities, and other important terms. Once disagreements between the landlord and tenant arise, this creates room for legal implications which could have been easily avoided with a professionally drafted document.

Notice periods
If you aren’t well-versed in the complexities of tenancy agreements, writing your own could mean that you fail to get the paperwork right regarding notice periods. This could subsequently invalidate any notice you need to serve.

Letting agents have their fingers on the pulse for all recent rule changes and updates to notice periods, allowing you the peace of mind of infallible legal compliance.

Possible financial implications
Using an online template or an AI bot to construct a tenancy agreement may seem like a cost-saving measure in the short term, but this can have long-term financial implications. Failure to draft a legally compliant and clear tenancy agreement can expose you to legal battles, fines, or even having to compensate tenants for damages or violations. Whether you’re a first-time landlord or you have an extensive portfolio of properties, it’s essential to opt for a professionally crafted agreement from the outset to safeguard your investment.

 

House sharing is a good solution to finding your independence at more affordable levels. But if the idea conjures up memories of your student days when the sink was always full or you couldn’t sleep because of a house party, then think again. Things have moved on.

Have a cleaning strategy
There are some awesome properties available to rent and to make the most of them, it’s best to keep them clean. Whether you live with family or your partner, you will need to clean, even if you use a professional cleaning company or hire a cleaner. Taking turns or using a roster will help everything fall into place if some housemates are not proactive.

Remember your headphones
Parties or other social events should be discussed; the chances are you will be joining the celebrations. But for those times when you need to blast out some tunes, maybe late at night after a hard day's work, your headphones will help keep the peace. When planning forthcoming social events or times when you may be planning a special meal or gathering, it’s always best to give plenty of notice.

Talk about finances
It’s always best to split bills evenly. By agreeing to this in advance, you reduce the potential for any arguments. If you are saving to rent or buy your own place or are planning on moving in with your partner, this will help you save more quickly. Communication is the key to being a good housemate. If you know where the boundaries are, then it’s easier to live within them.

Be nice
If you find yourself living with a good bunch of people, a few kind gestures, go a long way. It is all about keeping everyone happy, and living with people who are upset or who become moody due to tensions in the home is not healthy and will increase your stress levels. Respecting each other's space, knocking before you enter, and generally being courteous will encourage the household to feel happier, which should result in more fun.

Remember the little things
From setting the thermostat, and taking out the bins, to using the washing machine, a flexible approach is the right way to go. Compromise is also key to preventing any fallout or tension. And with all the little things taken care of, you will find that they should not become bigger problems. The same goes for the maintenance of the property. If you use a letting agent, maintenance issues can be taken care of for you.

Get your own place
House sharing is a cost-effective solution to enjoying a great place to live. You can benefit from companionship, fun, and the safety that comes in numbers if the alternative is living alone. However, if house sharing is not for you, a fully managed property will mean you will have a dedicated maintenance team, which promises to improve your renting experience. From finding great homes to obtaining references and protecting your deposit, the entire process can be fast and straightforward with the right letting agent.

 

Whether you’re an experienced landlord looking for new investment opportunities or looking to take your first steps to becoming a landlord, the market is looking promising as we settle into 2024. Let’s look at how the rental market is shaping up and how you can benefit from it as a landlord.

Rental prices are on the rise
One of the main reasons you should be feeling optimistic as a landlord is that rent prices are predicted to continue rising. According to Zoopla’s rental index, average rental prices increased by 9.7% across 2023, increasing income for landlords.* It is predicted that average rent prices will increase by a further 5% this year*, further maximising return on investment for landlords, who could use this added income to expand their portfolio or make improvements to their existing properties.

Mortgage rates have decreased
More positive news for landlords is the recent announcement that mortgage rates have decreased, making property investment more affordable. These days, it’s possible to get a 5-year fixed-rate mortgage below 4%, meaning you can obtain a better deal when investing. As banks fight for business, increasingly attractive deals are becoming available.

Better deals on buy-to-let mortgages will also appear, which will help you expand your portfolio and increase your rental income. With lower interest payments, a larger proportion of your rental income can be distributed towards property maintenance and upgrades to increase the value of your existing properties and enhance the overall profitability of your portfolio. You also have the option of refinancing your existing mortgages at the new interest rates, reducing your overall borrowing costs for the entire duration of the mortgage.

There is plenty of choice
Now is an opportune time to search for new properties to invest in, as there is currently a high volume of properties on the market. On Boxing Day 2023, over 10,000 new properties were listed on the market, which is the largest number of new listings in a single day since 2011.** With an abundance of properties to choose from, you can select those that align with your investment goals, budget, and target market.

 

This high supply of properties will allow you to diversify your portfolio and spread your investments across several types of properties. For example, you may decide to buy a larger property and convert it into a Home for Multiple Occupancy (HMO), which often produces higher rental yields than regular lettings.

How an estate agent can help you
If you’re looking for properties to invest in, an experienced estate agent will conduct a thorough market analysis to understand the trends and dynamics affecting property prices in your area. This knowledge will allow you to set the right rental price, maximising your rental income while remaining competitive in the market.

Additionally, an estate agent will identify strong investment opportunities and negotiate a competitive price for any properties you may be interested in, maximising your return on investment.

 

With changes afoot in the 2024 rental market, it is important to know how you can continue your success as a landlord while evolving with the times. This guide will give you some tips on how to ensure a smooth and successful letting experience.

Expand your property portfolio
With more opportunities for landlords than ever before, now is the perfect time to expand and diversify your property portfolio. One of the key benefits of increasing your property portfolio is the potential for increased cash flow, as owning multiple properties helps you maximise rental income and capitalise on the rising demand for housing.

It can also help to think outside the box when it comes to expanding your portfolio, as there are many options for you to consider that all have their own unique benefits. For example, you could consider letting houses for multiple occupants (HMOs), which often produce higher yields.

With the help of a trusted letting agent’s skills and knowledge, you can diversify your portfolio and experiment with different projects to see what works best for you.

Don’t fear the Renters’ Reform Bill
When the Renters’ Reform Bill was first announced, there was a negative reaction from landlords, who feared that there would be a shift in power in favour of tenants. However, this is not the case. As a landlord, you will still be able to conduct referencing checks and have the final say regarding who you are letting your property to.

In fact, there are even some aspects that favour landlords, such as the fact that you will now be able to recover your properties much more easily from poorly behaved tenants who breach the tenancy agreement. An experienced letting agent will be able to write an agreement that prioritises you and your properties, ensuring a stress-free letting process.

As long as you are a fair and professional landlord, there is no need to be concerned by the Renters’ Reform Bill.

Improve the energy efficiency of your properties
It’s more important than ever to make your properties as energy efficient as possible for a variety of different reasons. Investing in energy-saving measures such as insulation, upgraded heating systems, and energy-efficient appliances can help you reduce utility bills and increase your rental yields.

Improved energy efficiency may also improve tenants' overall comfort and well-being, increasing the likelihood that they will be pleased with the property and stay for a longer period of time, thereby reducing vacancy periods. With a more pleasant and energy-efficient property, you may be able to demand slightly higher rents.

Additionally, if you ever decide to sell your property, its improved energy efficiency will increase its market value.

Make sure you’re protected
Making sure you’re well covered legally and financially is crucial to protecting your investments as a landlord. It is important to stay up-to-date with any changes in legislation with the help of your letting agent. Their experience in the industry gives them the knowledge and expertise required to guide you through the rental process in a safe and legally sound manner.

The best way to protect yourself is by making sure you have all the necessary insurance coverage that you need as a landlord. It is crucial to make sure you have coverage against property damage and tenant rent payment default, as well as taking out liability insurance to protect you from any potential legal challenges.

You should contact your letting agent for advice regarding what landlord insurance you require.

 

Ready to expand your property portfolio? Get in touch today