Rental Insurance?

Rental Insurance? The sheer title sounds too good to be true. However it is difficult to predict whether your tenants circumstance will change at any point in the tenancy, and whether these changes will leave them unable to pay their rent in the future - even more so in the current economic climate.

Despite tenants passing referencing - and at SurreyLets we use Endsleigh Credit Referencing - where we have A1 references from the previous Landlord or Agent, reliable employment references, no adverse credit and the affordability check comes back fine - this to all intent an purpose is a snap shot of "here and now"
But circumstances change, sometimes without the tenant being at fault and hard times come. Not many tenants will want to lose their job and home in one month, they have to keep alive and as costs mount up with no income - the rent is the first to go.

As understanding as we may be. Letting out a property is a business. Most Landlords are dependent on the rental income for one reason or another. Whilst the agent or Landlord can start court proceedings on the grounds of no rent or persistently late rent, this takes time, and money.

This is why I am so amazed that Landlords turn down the opportunity of getting a good Rent Guarantee Insurance. For example, If I reference a single occupant through Endsleigh Insurance, and providing they fully pass the reference criteria, a Landlord could, through SurreyLets, take out a policy for 12 months from just £60 pa, or for more than one person from £99pa going direct to Ensleigh with satisfactory Endsleigh references. The policy covers Landlords for the rental payments (there is one month as the excess, but you can claim this from the deposit) until vacant possession or up to 8m on a 12m policy - and includes legal and expenses of up to 25K for repossession and rent recovery proceedings.

It certainly takes the sting (not to mention cost) out a problematic tenancy. For more information visit Surreylets or call us on 01483 282470

Twittering on!

SurreyLets is on Twitter - you can follow me, tweet me and get updates to your phone or PC about properties on the market or new tenant demands. Twitter is the best social media platform for business use to be put online so far - its benefits are endless. Its easy to use, its "Instant and real time" and what more you can pick it up on your phone or computer.

You may be wondering how Twitter is benefiting SurreyLets, because when I was told about twitter, I have to say I was rather skeptical. So I started to Tweet (That's what you do when you send out a message of 140 characters) I tweeted about the new properties I had on the market, about interesting property news and about what I was looking for to support my business. So far, I have had tenants through Twitter and contractors offer me their services too. Its early days - I have been twittering for only 14 days, but its a medium that is one of the fastest growing sites I have ever seen.

On twitter, I can send direct messages - these fall under the www. radar and are private to the sender, or I can tell the world about something! Its that simple. I can communicate with potential Landlords and Tenants at the click of a button.

Time will tell if this is the new medium for a Lettings Agency in Surrey! In the meantime - if you want to get regular updates about the lettings market then be sure to follow me on Twitter. @SurreyLets

SurreyLets discuss Letting a Room in your home.

Making the decision to rent out a room in your home is quite a big one, and one all occupants in the home should talk through. However, with more and more families feeling the pinch as the economy tightens, more and more people are looking at taking in a lodger. There are certain incentives too, you can earn up to £4250per year tax free from the income your room generates.

The price of the room vary from area to area. Typically the room will be furnished, minimally with bed, desk and wardrobe space. A double room may have a single or a double bed. The room should be let inclusive of the council tax, water rates, TV licence, gas and electric bills. Rents in Surrey are normally IRO 65 - 100 per week and varies from area to area and its facilities in a given locality. It is normal for the lodger to share your kitchen and space should be provided on shelves and in the fridge for their things. Bathrooms can be shared and an ensuite will command a higher rental. Use of other rooms is an agreement between you.

Whilst many homeowners advertise the room in the private ads, some letting agents will charge a small fixed fee for introducing a tenant, though viewing's are normally conducted by the property owners as its important that you like the prospective lodger and you get a good gut feeling. Once you are happy with your prospective lodger you should look at taking references. A previous Landlord to call is reasonable and an employment reference. Its important to build a picture of who your lodger is. An agent can carry out credit checks, employment checks and affordability checks through referencing agents to ensure the person is employed and can afford the rent and have no adverse credit history. After all, you don't want a lodger registering bad debt at your home address, or not paying the rent because they have numerous obligations eating into their income. Its certainly worth getting an Agent to conduct the tenant referencing.

If you have children in your home or vulnerable adults, you may want to go one step further and have a CRB check, but regretfully these are harder to have carried out. I spoke at length today with the CRB on why Letting Agents are not allowed to apply for these on the Landlords behalf as when you are letting a lodger stay in your home (where all your personal data is stored),especially if you have children, you want to ensure the person has not previous convictions. Fortunately, Surrey County Council have assured me today that in the forthcoming months, this may change and whilst the cost of such a check will be £50-70 - it may give added piece of mind. Surrey County Council are at least showing a proactive reaction to the dilemma and are offering assistance, though it may still take a few weeks to get a check through. Watch this space as I will update with news of this, but for many this may be very welcome.

Homeowners often make the mistake of not getting a solid and water tight agreement in place. The Tenancy Agreement should be a common law agreement, and it falls outside of the Housing Act. Basically, both parties need to mutually agree its contents and sign. A period should be agreed as should notice periods and rent due date and how rent should be paid. However, that's the basics, and a good agent will advise you on essential contents. Food for thought - you may have excluded dogs and cats - but what about fish? If the fish tank bursts and the carpet is destroyed, does you tenants room insurance cover this, or will it be down to you to claim? Avoid the problem by ensuring your agreement excludes anything that may be a risk.

For more information on how to go about Letting a Room in your home, please contact SurreyLets. Our advice is free and there is no obligation.

Investing in Spain?

I am so proud to be able to represent Dream Spain who was created by two very professional, very dedicated people from the UK. Despite or may be because of the doom and gloom filled media many people are wondering if they can still fulfil their dream of moving to Spain. With savings in the bank now bringing a minimum return they are attracted to the opportunities in the Spanish property market and the potential to rejuvenate their lifestyle.

A fear which is preventing people from making the move is the “no going back” syndrome. If you sell your property in the UK it can be difficult to return – especially with the current mortgage situation. What if your Spanish dream doesn’t work out? What if you don’t like living in Spain? What if you need to return to your family in the UK?

On looking at invensting in Spain, Dream Spain comment "Spain does not work out for everyone so it is always sensible to have a Plan B. Rather than selling up in the UK more and more people are looking to rent out their original home whilst they trial a new life in Spain. It has a number of advantages – you retain your asset and the rent covers your mortgage or provides an income. Most importantly you do not have to start all over again should you decide to leave Spain. However it also brings its own set of challenges, not least being an overseas landlord with an emotional attachment to your UK property. Finding a good UK based letting agency is vital to ensuring you can enjoy your life in Spain without worrying about what is happening to your property in Blighty. Communication is key for overseas landlords and you need a letting agency that acknowledges this and is prepared to keep you informed and take real responsibility for your property"

Director of SurreyLets, Sally Asling, has this advice for potential overseas landlords “Letting your home in the UK whilst you move abroad is a sensible option as if things don’t work out you still have your home to return to. Once you are overseas and are content it was the right move, you can either sell your home and reinvest in more conventional buy to let properties to maximise your returns on your investments whilst keeping a foothold on the UK property Ladder or sell up. It is however to work in with a Letting Agent that you trust and find out who will be dealing with your home on a daily basis. Too many larger companies pass you over to call centres and the personal touch disappears. Here at SurreyLets we pride ourselves on offering clients a personal and professional service that is tailor made to suit you. The professional staff can advise you on all aspects of letting you home and assist you with every step along the way, ensuring your best interests are put first”

So if you are thinking of buying a holiday home or looking to settle down in Spain, please dont hesitate to contact SurreyLets.

Letting your home can be too much of a growth Industry

No pun intended, but one distinctive growth in the Lettings market is the number of tenants using rented property as a Cannabis farm. Landlords need to take be aware that cannabis growing has become one of the few British agricultural success stories, and it normally take place in a rented space.

Do NOT think it will not happen to you, the owner of a nice 3 bed semi in suburbia, because you are precisely the target would be tenants would choose. The residential neighbourhood where net curtains are common place, an area full of professional's, often shift workers, where curtains may be drawn in the day and people may come and go.

Its hard to spot, and you cant be too stereotypical about a "type" and they certainly are not going to tell you! So how do you, the novice Landlord, spot your tenant is farming Cannabis? More importantly, how can you prevent it?

SurreyLets' Top Ten Tips on spotting Cannabis in a rented property

1 Tenants may inspect the electric meters on a viewing - test water flow and look at the fabric of the house build, this is very unusual on a first viewing. Tenants may be looking to see if they can bypass the electric meter, see what the water supply is like to set up complex irrigation and look to see how easy it will to drill through walls and ceilings. Most tenants on a first viewing will look at how the accommodation will work for them , discuss the locality or condition, trust me, the electric meter is not top on the agenda!

2 Tenants who want to pay cash, or try to push cash on you as a deposit, often expressing they will pay rent in advance but may not want to undergo reference checks further than proof of ID. A lead tenant may not live in the property but say it is for family or employees. There is a certain vagueness that is demonstrated which may be covered up by a language difficulty.

3 Tenants may come via the private ads to avoid check and avoid agents. A "newbie" Landlord (moving away from the area) is a preference and sought after. The lure of upfront payments is used to sway Landlords as is a pleasant persona. However, this is not the time for niceties, this is a business for you, your income, so remain detached and impersonal, see how they shape up with proper checks.

4 Once moved in, tenants may seemingly have chemistry equipment or lots of tubing, looking like tumble dryer tubing (often made from reflective material). This may hand out from windows. The vagueness of the occupants may still remain, extended family, parents etc are all used to distract from a "lead" tenant. It will be hard to identify who is accountable.

5. Curtains will be drawn shut in a bid to disguise blacked out windows or windows lined in plastic. Drawn curtains explained as shift workers sleeping. The windows may suffer lots of condensation. Windows remaining closed.

6 The tenants may request additional security. They may ask for permission to install interior bolts or changing the locks once moved in. They may set security lighting to make the property appear normal from the outside.

7 Strange smells and an increase in external venting - particularly noticeable in cold weather. Pungent smells.

8 Bright internal lights, sometimes only notices in the night through gaps in blinds.

9 Bin bags full of vegetable material being thrown away. The stalks and roots of cannabis plants are discarded when the plants are cropped. Plant pot shaped root balls may be dumped in the garden.

10 Difficulty contacting tenants - a certain vagueness in the contact and response from a tenant. Whilst the rent may be being paid and the front lawn kept tidy, not being able to contact your tenant and build a relationship may signal a problem. Its always hard to say what is "normal" but a family home owuld have a family and they would follow most normal trends, so if they are not, question why. Its hard when you are not local to do this, a friendly neighbour may be able to give more insight, but its important to remember that the tenants will not want to draw attention to what they are doing, so they will try to ensure the front exterior looks normal.

SuureyLets - How to avoid having a problem tenant?

1. Always take full, comprehensive references / tenant checks and ensure this is a full check including credit checks, employment, fraud and affordability. Ensure every occupant on the tenancy agreement is fully referenced.

2 Look at taking Landlords Insurance for loss of rent and legal costs. If the references are not good enough for them to offer you insurance and they will not take the risk, why should you?

3 To a certain extent, follow your gut feeling. Are they who they say they are and why are they wanting to rent? Certain things will start alarm bells ringing, for example, why are thy in rented accommodation? Who will be living there, and if so why are they not viewing? Are they a family or sharers? Can you reference them all? Where do they work and what do they do? What are there plans? Are they on the voters roll where they are? These are just some questions that will help you build a picture of who you are letting to.

If your gut feeling is not right and you cant reference the prospective tenants, then do not let them rent your property. As mentioned, if an insurance company won't take the risk, why should you? The fact is, 6 weeks deposit does not go very far when Landlord victims of this crime normally look at costs in excess of 20K to put their home back to the condition it was in.

SurreyLets are available to discuss this with you and assist on letting you home in Surrey. For an informal chat or if you are thinking of letting you home in Surrey, we would be delighted to hear from you. 01483 282470

Investing in Spain? SurreyLets can help

Thinking of Investing in a Spanish holiday home? SurreyLets recognise the growing trend for people to have a second home overseas. Whether you are thinking of buying a property to let for holiday lettings or you are looking to move to Spain and Let out your property in the UK, SurreyLets can help you.

SurreyLets are proud to have an association with Dream Spain. Set up in 2004 by Bill and Martine Cherry, in response to the clear need for an independent, locally based agency, focused on providing a first class customer service and a safe, straightforward buying experience. They have a solid base of satisfied clients and have built up a strong network of contacts within the Costa Calida area.

If you would like to talk to SurreyLets regarding Letting out your home in the UK, please contact us on 01483 282470.

SurreyLets - Advice for Tenants. What happens when your Landlord does not pay the mortgage?

SurreyLets - Advice for tenants.How to spot if your Landlord may be defaulting on his morgage and what to do.

Throughout the history or renting property, every Landlord I have ever met has asked me "What happens if my tenant does not pay the rent?" However, more frequently tenants are now asking "What if my Landlord does not pay his mortgage"

A Somber thought as the national press this week have several articles on just such cases where good, rent paying tenants are left homeless as an unsympathetic lender actions a repossession.

Adam Sampson, chief executive of shelter comments " There is no way for tenants to know that the Landlord is behind with the mortgage payments - we have had cases where tenants find out only when the bailiffs arrive"

Its a growing problem in the current economic climate. Ian Potter, Operations Manager for ARLA explains. “Tenants, through no fault of the lender, often receive no notification of repossession proceedings as lenders are unaware of the existence of tenants in a property or who the tenants may be" ARLA are currently advising the government on how to tackle this.

Tenants - Signs that may indicate your Landlord is in arrears and what to do next.

1) If letters are frequently delivered addressed to your Landlord market urgent - don't ignore them. Open them. A good Landlord who has notified the lender he is letting will have notified them of their alternative address so there should be no need for a Lender to contact your Landlord in your rented home.

2)If Letters arrive addressed to the Occupier - open them - they may be from a lender trying to find out who is living in the property.

3) Respond to the Lender directly, detailing your tenancy agreement. They may request a copy. Oblige. Ask the lender if you should pay rent to them or a special nominated reciever going forward.

4) Contact your Letting Agent and make them aware of the situation, especially if they are collecting rent / managing the property. Continue to pay your rental, but request it is not passed to the Landlord until you have spoken to the mortgage lender.

5) Try to speak to your Landlord directly. If you cannot reach your Landlord and the lender will not discuss the case with you, Shelter offers advice to tenants and can be contacted on 0808 8004444