Letting agent or DIY?

Landlords who use a letting agent could shave 20% of their costs if they choose to manage their properties themselves.

Some London letting agents charge as much as 20% the gross rent for a full management service. To me this seems exorbitant for collecting the rent, managing the tenancy and sorting out the odd maintenance issue. Some letting agents will also charge a landlord additional fees for the use of a tenancy agreement.

The essential thing for any landlord when dealing with a letting agent is to negotiate the best deal. It important to remember there is no standard contract between landlord and tenant and especially where you are dealing with an independent that want your business then it down to you to get the best deal. Lets face it at the moment with rental demand in places like London, letting property must be like getting money for old rope. Tips for a landlord would be ensure that any charge include: the inventory, the checkin, referencing, tenancy agreement, mid term inspection and check out. Look for any hidden charges and fees. Ensure that you get an agency agreement that sets out exact responsibilities and costs.

To read more about whether to use a letting agent.

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UK Mortgage Market Recovery?

At What Rate will the UK Mortgage Market Recover?

All eyes and ears of the UK residential property market are firmly attuned to every movement surrounding mortgage lending. This is hardly surprising after a year when the levels of property transactions have fallen. At the end of October, the Council of Mortgage Lenders reported the sixth straight month of decreased lending volumes, largely driven by the reduced levels of lending and also consumer scepticism about whether it is the ‘right’ time to move, change mortgage or indeed get on to the property ladder if that it is actually possible for some first time buyers who may need a high loan-to-value (LTV) mortgage, even on luxury homes.

Although not all buyers are directly affected by the lending restrictions for a LTV mortgage as it tends to have the most effect those at the lower end of the property ladder, it does cause overall slower transactions and stagnation. For example, take the average chain of five houses; it is often the first time buyers who start the chain off and may well need a LTV product in order to purchase. Therefore if there is an absence of this type of buyer it tends to slow down all activity regardless of where vendors sit in the chain.

It would be plausible to think that an increase in high LTV products would help this problem. Moneyfacts, the leading financial comparison website claims that there has actually been a 76 percent increase in LTV products which offer a 90 percent loan value. But before first time buyers get too excited, this rise is only such a significant number as it started from a low base.
Despite the rise in these types of mortgage products, it could also be the uncertainty surrounding interest rates that contribute to why the market has decreased in 2010. At the end of September 2010 the floating rate was on average 3.3% and the fixed rate was 4.4%. One would think that these low rates would boost the market, but in fact, the low floating rate does not tempt the majority of new home owners. Countrywide have stated that 75 percent of new home owners opt for the fixed rate product.

It is expected that the Bank of England will raise move the base rate in 2011 and many major lenders will move their own rates in anticipation of this. After existing home owners have enjoyed such low rates for the last year or two it could result in a surge of customers looking to hunt out the next best deal. For example, 40 percent of Nationwide’s customer base is currently on the floating rate.

Tips On Tenancy Deposit Disputes 26: Be Clear

Tip 26: Be clear

These blog posts are all about helping you to avoid some of the many pitfalls that cause landlords to lose a disproportionate number of deposit protection disputes. Some of the things most likely to cause your claim to fail can seem to be the most obvious mistakes.

As an adjudicator, one of the most disappointing sights is a muddled claim. Adjudicators, like most office workers, are under pressure to achieve targets, and files that require reading multiple times just to work out what the heads of claim are can be really frustrating. If the ADR department just cannot work out what you are claiming for and why, your claim may ultimately be dismissed.

It is very unlikely that you will be contacted to resolve any confusion, so the onus is on you to clearly state your case the first time. If you are in any doubt about whether you have been clear enough, get someone without any knowledge of your claim to read through your statement before you submit it. If they get all the finer points, you should be absolutely fine.

Tom Derrett is the Principal of Deposit Claim, an experienced deposit protection adjudicator and an expert on the Deposit Protection Schemes. Tom helps landlords to claim money through the deposit protection schemes.

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Rents met by credit cards

Research from YouGov and Shelter report that more than two million Britons have paid their mortgage or rent using a credit card in the last 12 months.

This is an increase of almost 50 per cent since a similar survey from the year before an is a further indication of the pressure on personal finances.

It points to more and more tenants struggling to meet rents as the economy continues to struggle under Government austerity measures.

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Reluctant landlord tips

The Express re-visits 'help for reluctant landlords'.

Only of interest if you are a 'reluctant landlord'.......please help, don't make me, anything but that..............aaaaaaaaggghhhhhhhhhh

Midlands rental property needed

A Midlands Housing Co-operative (BCHS) is looking for a range of good quality private rental properties in Sandwell, Birmingham, Walsall and Wolverhampton under a private sector leasing scheme.

The properties will be rented from landlords with rents guaranteed for up to 3 years along with repairs and lettings of the property to be taken care of by BCHS.

BCHS is part of the Accord group of Housing Associations.

To find out more.

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