Private Rented Sector Update

The Telegraph reports a decline in rental returns

According to the Telegraph, on April 15th, there has been a decline in rental returns for private landlords all over the country. Research by estate agents Chester and Humberts has revealed there has been a fall in the yield of property in 9 out of the 10 most popular regions. This includes properties in York, Sheffield, Manchester and London. Yields in London have only fallen from 4.3% to 4.2% on average, but properties in prime locations have fallen further.

A third of private rentals are not up to scratch

An extraordinary one third of private rental properties have failed to meet basic standards of decency, new research has found. The Chartered Institute of Housing (CIH) applied the Government guide for Decent Homes to private rentals, and found that 33% of those visited failed to meet the standards outlined. With the rental market increasing in size and more families and older, sometimes more vulnerable people renting from the private sector, this is the time for private landlords to improve their properties. This research has come from the CIH’s UK Housing Review 2014, which was launched on the 14th April.

Disputes with Tenants

Research by AA Home Insurance has found that one fifth of all landlords have had disputes with their tenant/s at least once during their time letting property. The widest cause for complaint was damage done to a property, with over half of landlords asked citing this as a complaint. Next was poor property maintenance, with 40% of landlords having had tenants leave without cleaning the property properly and a third had issue with garden maintenance.Other complaints include tenants paying rent late, keeping pets when they had been told they couldn’t and sometimes neighbour. Some of the stranger things on the list of landlord complaints included underpants that had been left in the fridge and a boiler going missing.

The best way to avoid this happening to you is to conduct a thorough tenant reference check (or ask Rentify to perform one for you) and to produce an inclusive and descriptive inventory (including pictures!).

 

Tip of the week

 If you are letting a property in an area you don’t know well, check with the council to see if you need a ‘selective license’ to do so. A London-based landlord with a property in Thanet, Kent has just been fined £12,000 for not being in possession of one such license. And to add insult to injury, he was charged an extra £120 towards the council’s prosecution costs!

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