Love Your Let: Top Tips For a Happy Healthy Tenancy

How often does your tenant tell you they love you? If they pay their rent on time (or early!) every month and give you a big smile whenever you meet, then that’s pretty close and you must be doing something right! In this article I share our top tips for a happy healthy tenancy. First, though, let’s look at some heartening statistics.

According to the National Landlords Association (NLA), “an overwhelming majority” of landlords report great relationships with their tenants. 61% say the relationship is “very good” and an additional 34% describe their dealings as “good.” And just over a third (36%) of landlords cites regular communications as being one of the most important factors behind the relationship.

95% of landlords have good tenant relationships

NLA chairman, David Salusbury, comments: “It is pleasing to see that almost all landlords have a good relationship with their tenants and that both parties are content. The best way to ensure good relations between the tenant and landlord is to ensure the right tenant is selected for the property.”

He continues: “The NLA advises that all landlords should meet with the prospective tenant, view the property together, discuss the tenancy agreement in detail and explain how and when the rent should be paid.”

This is all well and good if you are a local landlord and perfectly happy to manage your buy-to-let hands-on. But what if you don’t have the time? What if you live in another town, or another country? This is where a managing agent comes into play. More on managing agents shortly.

Hands-on, hands-off

These tips are intended as a guide, as opposed to a definite check list per se and outlines landlord/managing agent responsibilities. After reading this article, I suspect you will be more inclined to choose an agent, but everyone is different.

Personally, I have managing agents for all my rental properties. My PR manager (a tenant), however, swears by her great relationship with her private landlord of over 6 years, whose own work studio is on the floor above her flat. No relationship is perfect 100% of the time, but all in all, everyone is happy in both our scenarios – and they are pretty much at opposite ends of the scale.

20 basic responsibilities

1. Locate tenant/s and ensure void periods are minimised.
2. Value property correctly for rental purposes.
3. Arrange an Energy Performance Certificate (EPC) every 10 years.
4. Arrange an annual gas safety certificate.
5. Take out tenancy references and run credit checks.
6. Ensure that both lender and insurer are aware your property is a rental.
7. Ensure you and your tenant have the appropriate insurances.
8. Take the tenant’s deposit and ensure it is protected in accordance with the law.
9. Arrange for the return of the deposit after negotiating any deductions for damage and/or cleaning.
10. Arrange new inventory when a new tenant moves in and ensure tenant signs it.
11. Arrange for check-out inspections, with the tenant present.
12. Collect the rent / ensure the specified procedure is adhered to.
13. Supply tenant with a legally-compliant tenancy agreement.
14. Re-negotiate rental increases with tenant.
15. Keep the property maintained and repaired and appliances serviced.
16. Arrange and carry out regular inspections, whilst respecting the tenant’s privacy.
17. Be available to deal with any emergencies, such as a boiler breakdown.
18. Deal with any unexpected problems, such as noise disruption/civil unrest issues, or additional parties moving into the property (i.e. a partner who is not on the tenancy agreement).
19. Serve notice to quit correctly.
20. Arrange eviction if necessary.

Personally, even writing this list leaves me feeing exhausted! So how do you go about finding the ideal agent? Axis clients receive recommendations for managing agents in the UK; and we have strategic partners in our USA locations who have experienced, professional, managing agents in place already.

If, however, you’d prefer to find an agent yourself, read on for the most crucial areas to include in your due diligence and the questions you need to ask.

Attitude to money and governing bodies

Is rent paid in advance by tenants immediately passed over to the landlord, or held back? Is client money kept separate? There is currently no legal requirement for letting agents to keep clients’ money separate. This ‘loophole’ is at the root of incidents whereby rogue agents have either bankrolled their own businesses with clients’ money and/or disappeared with it. However, agents who belong to recognised bodies such as NALS and ARLA, who are also signed up to the Property Ombudsman Scheme, should keep monies in separate accounts.

When to avoid a “second to none professional service”

I like this advice from Maz Adam Iqbal, barrister, mediator and award-winning lettings expert. Maz writes” “Any landlord looking to use an agent will be all too familiar with the usual language used, such as ‘second to none, professional service, we do what we say.’ Well, sit back and think: isn’t this what you should expect anyway, as a basic requirement? If an agent isn’t professional and doesn’t do their job well, then they’re not really up to the job in the first place.”

Fees please

Agency fees typically range from 8% - 15% of the gross rent. There are also often set-up fees on top. It is sometimes possible to get a better deal and, in the USA, we have agents with a special Axis client rate of just 6% (in some locations). However, in the UK, it pays to double check what you are actually getting if an agent offers you a fully-managed service for less than, say, 6% or 7%. Typically, landlords should be wary of agents offering fully-managed services for under 8%. 

Do it the Axis way

Of course, with all property opportunities, deals and ongoing management, the absolute number one thing to remember is this – due diligence. The more research you do, the lower your risk. Of course, working with a partner like Axis means you gain the benefit of our years of experience and network of professional, trustworthy, industry contacts.

Call our portfolio managers today to find out more!

David Ball: +(0)1273 447 307 or email david@axiscontact.com

Russell Bonner: +(0)1273 447 301 or email russell@axiscontact.com

Posted in Letting and Managing

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