Whether you are looking to rent a flat or you have a flat for rent, this article sums up most of what you need to know today. 

The Current Market

Home owners that couldn’t sell their properties in recent market ended up putting them up for rental, thus flooding the market particularly at the end of September 2008. This is when rental demand normally slows down. Good news for tenants, landlords are forced to offer more, or discount their rents. Well presented and maintained properties in desired locations perform above the average, as always.

Letting Agents

Their job is to hook up prospect tenants with available property, getting a commission from the landlord. For short term letting London tenants should expect to pay 50-60% more than long term rates, and that is usually inclusive of utility bills. Agents will charge tenants for credit searches around £100 plus an eventual contract fee. Landlords should expect to pay agents for finding them a tenant around 8-15% of the contracted rent; roughly a whole month’s rent typically on six month contract. This is negotiable, especially if you bring in regular business.

Management, which is optional, comes at a similar rate, and is charged monthly. Management means you will be emailed an invoice when the tenants report that the washing machine broke down or a light bulb needed changing. The youngest generation in this world considers emailing the same as managing, whilst the elder one was more industrious and actually fixed things.

 
To find your local rental estate agents just walk along the high street in the area, and look for lettings, or click here for Rental Property Agencies if it’s raining again.

To Advertise for reduce price and to rent privately in London:

www.Gumtree.com

www.Moveflat.co.uk

Residential Landlords Association

The Residential Landlords Association charges landlords £75 a year to be a member, and for the privilege of receiving a newsletter warning of changes in the law and selling all sorts of insurance policies, which are all tax deductible, by the way.

The law and common sense say that landlords are to instruct electrical and gas checks yearly. To find local professionals to fix it: www.Ratedpeople.co.uk or www.iphe.org.uk/iphememdb.html

Private landlords

These knights come to the aid of people who for various reasons fail the credit checks or never heard of such a thing. Like someone who just came from abroad. Everybody thinks landlords are very rich people, and sometimes they are right.

If I want to let my property and disappear into the sunset and go meditate in India for a while or save the limp butterflies in some remote region of the globe there are many alternatives, but private landlords will be required to be licensed at some point in 2009.

NEW Landlord Licensing- The Rugg Review

In the same fashion as driving licenses, landlords will be required to go on a four day course* and pay a fee to be able to keep their title as landlords, instead of cowboys. No landlord was ever asked which title he preferred, but now they have no choice. This process was nicknamed the Rugg review funny enough in a time when wooden floors are being preferred to the use of rugs. But politicians seem to always be a couple of hundred years behind everybody else, so it’s no surprise. (*this is a joke, landlords don’t need to go on a course, but some ought to, in my opinion)

Deposit Protection Scheme DPS

Since 2007 landlords can no longer hold deposits. Security deposits must be held by the Deposit Protection Scheme DPS that deals with eventual disputes in the end of the tenancy. It was found that landlords were often found gambling in Las Vegas with the deposit money, so they put an end to all that good fun. One wise 107 year old landlord that rents property Bayswater thought this to be cause of the whole current financial crisis…but let’s stay focused.

Assured Tenancy Agreements AST

AST normally runs for 6 months, 12 months or whatever large enough number of months you can think off, like 2,000,000,000 for example. This contract is automatically renewed after that period, and runs smoothly until one of the parts, tenant or landlord, decides to serve notice in writing to the other. This contract guarantees both parties a firm tenancy for the period stated. After that it is more or less optional. It’s a bit like dating someone. It includes silly things such as that you can’t have pets and that you must look after the garden, even though the studio flat on the 18th floor doesn’t one. Quite entertaining and written in legal language that nobody can really understand. But it seems to have worked after all these centuries since the Romans created it for us all. Click here for a free AST form. And click here to Credit check your tenants.

Tenant’s Rights and Obligations

Generally speaking a tenant is entitled to enjoy the property in exchange for rent, and needs to keep the music down after diner time. The landlord or his representatives are to give notice before showing up, unless he comes to attend to an emergency. Using common sense and being co-operative fosters a good relationship that will go a long way for both tenant and landlord, who used to be seen drinking together at times. The previous version of the AST used to mention that the tenant was to make the landlord a cup of tea if he’d come to visit…This clause has been removed from the last revision.

Detailed list of rights and obligations for tenants here

Utility Bills

If the property doesn’t have double glazing yet, the landlord ought to at least install sealing tape around windows, saving the world in this cost efficient way. This also greatly improves noise comfort. The result is less grumpy tenant next time the landlord visits.

The only way to save on your utility bills is to switch the lights off and the tv too, when you go out. That’s what my ancestors did and they saved enough money to own a castle and a pony and nobody cared about the carbon footprint then. If you don’t believe me, read what the government recommends.

You STILL ought to switch providers if it saves you money.

Renting a Parking Space or Garage

You can rent out a parking space, even at your own property. Below is the best website to assist you getting results. It charges on a commission basis only! You win- they win.

Online Searches

We researched the top most sought after words on search engines, you are bound to find what you want if you search for these. Estate agents will aim at these words:

Homes of Multiple Occupancy HMOs

That’s very big houses with a lot of rooms, let out to a lot of different people; also know as households. HMOs are required to be licensed by their landlords since around 2005.

Refurbishments and Repairs

It is best practice and cost efficient to maintain elements in a property, rather than replacing them. A few thoughts:

• Repaint the exterior walls every five years
• Clean the carpets or replace them altogether for wooden flooring or cheaper tiles, but try to show some taste
• Add a loft extension and make more rent
• Maintain a nicer home and you’ll get and keep better paying tenants

You ought to know these things anyway…

Online fast quotes for work:

www.Myhammer.co.uk

To find local rated tradesmen:

www.Ratedpeople.co.uk

House Shares and Flat shares

House sharing is common practice in big cities in the UK, including the small town of London. As a landlord you can also rent out your property in this low cost manner. It may increase revenue and reduce the risk of having a property empty by spreading that risk over more than one tenant. It takes some effort to take all the phone calls and answer the same questions all of the times, so we recommend you publish an email address when you advertise.

Top free websites to find and to advertise house share in London are:

Gumtree.com

www.moveflat.co.uk

These are user friendly, reliable, straight forward and without wind ups or hidden costs. Since 2007 Gumtree has become dominated by Australian and South African audience. I suppose due to their common affinity to television sports and fizzy drinks. Moveflat moved in to complement the niche for all other nationalities.

You will need to manually renew your adverts daily to bring them up on the listings or pay a small fee to feature your ads continuously otherwise. There is little point in tenants advertising when they’re looking. It pays to line up several places to view and move in on the one you like quickly. The turnover in central London is alarming. Good rooms in good locations go fast. Busy young professionals tend to leave their house hunt last minute and have to snatch any good rooms on the spot. I suggest you do the same when looking.

To charge top rent and get good tenants, landlords ought to post appealing pictures and accurate detailed yet concise information. Using email to filter prospects and then taking phone calls to organize viewings. Always arrange for a call reminder before the time of the viewing to avoid disappointment. Insist on a securing deposit, providing a receipt for it. You should avoid taking people’s word, or you will risk having your property empty and sending away other more serious prospects.

Watch out for money transfer internet scams, they aren’t obvious but Gumtree offers advice on it.

Make sure you meet and reference your tenants in the same way an estate agent would. Ask for two references and even run a credit check on each person. Use formal contracts, and the official Deposit Protection Scheme DPS, but by all means use your judgment and take your time finding the right tenants. Professionals with stable occupations make good tenants, especially married couples with children and furniture.

Long term lets (from 6 months) go by normal market rates, and short term (1 to 4 months) go around 50-60% above the market rate. They are hard work, scarce but profitable. They also serve someone just staying in town for a short while, like expats. Keeping a property in good condition reduces turnover and allows charging higher rent.

It is the way things work; serious landlords and serious tenants exchange money, receipts and contracts. Attention though because any securing deposit needs to go into the new Deposit Protection Scheme DPS.

Sample successful advert from Gumtree that generated 150 leads in one month.