Five Priorities Ayrshire Landlords Need to Know
As a landlord in 2023, it’s fair to say there are a lot of challenges on the horizon. From changes to rental rules, tax upheaval, mortgage mayhem… it’s all going on.
But the first thing to remember is your tenants and their experience of your property. It’s all too easy to move new people into your vacant rental and forget about them until a problem arises. So why not try and make the tenancy run as smoothly as possible from the outset?
In this three-minute read, we look at five priorities Ayrshire landlords need to know and should consider.
1) Create a property welcome pack
It costs virtually nothing apart from time and a little bit of patience, but so many landlords don’t bother to provide the basic information a tenant needs to improve their tenancy period.
A welcome pack could contain the following:
· Landlord and agent contact details
· Where to find instruction manuals
· Location of electric/gas meters
· How to work the thermostat
· Tenant’s responsibilities
· What to do in the event of an emergency
You may have the information already, but putting it in one place positions you as a mindful and helpful landlord. Type it out, laminate it and make sure it’s in a place where the tenant can find it. Once done, it will also benefit future tenants.
2) Improve energy efficiency
For most landlords, getting a vacant property let is the main priority. But why not use short vacant periods to start some energy efficiency improvements? Get the boiler serviced, make sure all the lightbulbs are energy-saving ones and check the condition of floor/loft insulation.
3) Get informed
There are numerous legal reforms happening which will affect private rentals – tax changes, eviction notice reforms, pet-friendly tenancies and so on. Make sure you’re up to date and know what’s going on so it doesn’t come as a surprise later. Being informed and prepared should be a priority for all landlords.
4) Mortgage check
When does your mortgage deal end? Are you on a fixed or variable buy-to-let deal? It’s essential you know the answers to these questions so you can prepare yourself for getting a new deal when the time comes. Get in touch with a mortgage broker if you’re nearing the end of a mortgage deal so you can see what’s available.
5) Communicate
Whether it’s with your tenant or your managing agent, clear communication should be a priority for all landlords. While you don’t have to engage in weekly chats with your tenants, checking in with them periodically is a great way to keep on top of things such as repairs and maintenance and to avoid any unexpected issues or call-outs out of hours.
A short text or email to ask how it’s all going is non-intrusive yet shows willingness to set things right if needed.
Are you looking to let a vacant property? Get in touch with our team at Parkview Property 01292 442888
Are You A Landlord?
Why Renting Your Ayr Property to Family Could Be Problematic
If you are a Landlord, here are some questions you should ask yourself before you rent your property to family or friends.
Do they need to sign a tenancy agreement?
Yes, yes, and yes again! They might be family, but they’re also your tenants and both parties need to know what is expected of them. For example, a financial transaction will take place each month, and you need to make the rules clear from the start. Otherwise, you may be putting your income at risk.
Should I take a deposit?
This is a personal decision that you need to make, as there’s no legal requirement for a landlord to take a deposit. However, it is a good way to protect your property and any contents from damage.
Similarly, by having a professional inventory carried out before they move in, both parties know the exact condition of the property and how it should be left.
Should I do a tenant reference check?
Asking family for personal finance details? It might make you feel awkward just thinking about it, but it’s an essential step of the rental process.
While you may think you know your family/friends’ financial background, it’s still worth making extra checks. Referencing will ensure that your potential tenant can pay the rent and highlight any issues with previous landlords.
Are there any legal issues I should be aware of if I rent to family/friends?
Not exactly, but renting to family/friends could cause problems if you have a mortgage. In fact, a lot of lenders are quite strict about this issue, and you may need to ask their permission before you move family in.
This is because the lender could be concerned that you’d charge family members less rent, or be more lenient if they didn’t pay – both of which could impact loan repayments.
Renting to friends or family can often be a great option, but it’s one you need to consider carefully and go into with your eyes wide open.
Good relationships with family and friends is priceless! My advice would be to avoid renting to them. Unless you use the services of a good letting agent, we can act as a ‘go-between’ if things get awkward.
For more advice on anything and everything related to rental property in Ayr, call our lettings team today.
What Tax Expenses Can Ayr Landlords claim against?
A guide for Ayr landlords to declaring their rental income in the best way possible and what you can claim against.
If you rent out a property and receive a rental income from that, you must declare it. You have to pay tax on any profit. It doesn’t change your employment status to ‘self-employed’ though, as it’s considered an investment.
Of course, HMRC can be more complicated than a day at Hogwarts. The best advice will be to seek professional advice from an accountant but we’ve picked out some key points to start you off.
Start hoarding
HMRC unimaginatively call this ‘record keeping’. Be disciplined and keep receipts, bank statements, invoices, rent books, even mileage logs, so you (or your accountant) can easily make the deductions against your tax bill. This means you get to keep more of the profit away from ‘the tax man’ in a legal and ethical way, of course.
Expenses claims
There are a range of other allowable expenses. They are deductible only if they’re exclusively for renting out a property and if you pay for them yourself. This could include:
- Water, council tax, electricity, and gas
- Insurances
- Services of, for example, cleaners or gardeners
- Accountancy fees
- Ground rents
- Service charges
Maintenance and repairs
The definition from the gov.uk website is: ‘A repair restores an asset to its original condition, sometimes by replacing parts of it’.
If the property requires new guttering after a storm, this would be considered a repair and therefore, a deductible expense.
However, if you wanted to improve the guttering for another reason, like changing the colour, this would not be allowable.
Improvements are not an allowable expense, like replacing a laminate kitchen work surface for granite. The exception to this is updating things to their ‘nearest modern equivalent’. This could be things like changing single-glazing to modern, double-glazed windows.
If you replace an item with an upgrade, then you can claim the cost as if you had replaced like-for-like. Take the work surface example: a 2m length of laminate would be £150. The same size granite work surface could be £600. You could claim the £150, not the £600.
Domestic item replacement
Furnishings like carpets and curtains are likely to be able to be deducted, as long as you’re replacing like-for-like. Beds and free-standing wardrobes, or other items that can be considered ‘movable furniture’ are also deductible. Appliances, such as TVs or fridge/freezers, and even smaller items, like cutlery and crockery can be offset against your income.
Partial expenses
If you’re letting a property that you have a mortgage on, you can’t deduct the full amount of the mortgage payment. You can only offset the interest element of the mortgage repayment against the income. Similarly, if you use your car for a purpose related to the rental property, you can only deduct the vehicle running costs for that particular purpose. This includes mileage rate deductions.
For rental opportunities in Ayrshire, get in touch with us on 01292 442888. I specialise in Lettings and Lettings Legislation and can help you consider the market and the best options out there for you.
COPYRIGHT Parkview Property 2022
Buy To Let Property, should you use a Ltd Company?
Should you set up a Ltd Company for Your Buy To Let Property? Before becoming a landlord, you need to consider how you want to buy your rental property. There’s lots of tricky tax stuff to consider and changes to tax relief over the last few years mean that becoming a landlord might not be as profitable as you first think.
So, what should you do? Should you buy a rental property in your personal name or via a limited company?
Setting up a limited company
Since 2016, more private companies than ever before have been set up to hold buy-to-let properties (primarily because of tax changes) and it’s relatively easy to do. Whether you’re starting a company on your own or with others, it’s a matter of choosing a name, deciding who does what, having a company address, and registering online with Companies House.
Keeping the accounts and records for a limited company can be a lot more complicated than personal tax, so it’s always advisable to hire an accountant. In addition, proper accounts are a legal requirement when running a limited company, so by hiring a professional you can have peace of mind that things will be done the right way.
Taxing stuff
Tax. Ugh. A word that makes everyone feel slightly sick. And when you’re a landlord, it’s an area you need to get your head round.
Over the last few years, the government has brought in several tax changes that impact private landlords with property in their own names and their level of tax relief. In simple terms, this means less profit and more tax.
Limited companies now hold more tax advantages for landlords. For example, a limited company can still treat mortgage costs as an expense along with other related costs of managing a rental property. In addition, limited companies are subject to corporation tax which is currently set at 19% (although this is set to increase), instead of income tax, which changes depending on your rate of pay.
Other tax areas to investigate if thinking about setting up a limited company include:
- No capital gains tax
- Inheritance tax issues (if you plan to pass your property on)
Always speak to an accountant or financial advisor when it comes to tax matters.
If you’re thinking about buying a rental property, please speak to us at Parkview Property.
Common Ways Your Ayrshire Home Could Be Making You Ill
For most of us, our home is a haven. But what if it is making you ill?
Mould and damp
Mould and damp are caused by excess moisture in the home – perhaps due to leaking pipes, roof damage, or condensation build-up. They can cause respiratory issues, nausea and vomiting, and general illness, so it’s important to stay ahead of any fungal growths or damp patches.
Quick tips to prevent mould are:
- Air your bathroom when bathing to get rid of condensation
- Keep your home well ventilated to avoid excess moisture
- Where you notice mould, wipe it away with detergent or mould treatments (in more serious cases, call in the professionals to get rid of it)
- Hang your wet laundry outside or by an open window to prevent moisture build-up.
Excess dust
No matter how clean your house is, dust and dust mites can be found within most properties. They are a common allergen and can cause asthma symptoms. Ongoing exposure may result in allergic rhinitis (runny nose, watery eyes).
Reduce dust and mites by:
- Regularly vacuuming carpets and mopping floors
- Dusting with a damp cloth
- Change bedsheets weekly and wash in warm water
- Vacuum upholstered furniture, such as sofas.
Carbon monoxide
It’s important to have a working carbon monoxide monitor in all properties, as this gas is a silent killer. Some causes include poorly installed and/or badly ventilated appliances, such as cookers and boilers, blocked flues or chimneys, paint fumes, and smoking indoors.
Early signs of carbon monoxide poisoning include an ongoing headache, dizziness, sickness, and shortness of breath.
Cleaning products
While a clean home is important, limit your use of cleaning products such as oven cleaners, bleach, and aerosols. All of these contain chemicals that can cause irritation to the eyes and throat resulting in headaches and breathing issues.
Lead paint
Lead paint was banned in the UK in 1992 but can still affect older properties. Once lead paint starts to crack or peel, its dust can cause serious problems, especially for children and pregnant women.
If you suspect your older property has got areas of lead paint, speak to a building professional about how to get rid of it.
The good news is, what we’ve outlined above is very rare but if you’re concerned about any problems in your home, speak to us at Parkview Property.
How Ayrshire Landlords Are Finding and Keeping Dream Tenants
‘Finders keepers, losers weepers.’ It’s a timeless rhyme used every day in school playgrounds in Ayrshire and all over the UK.
It often applies to someone finding something that’s unowned or abandoned. But it also resonates with local landlords when it comes to having the second most important piece of the rental puzzle – great tenants.
Finding these excellent tenants is one thing. Keeping them is another. And some landlords lose these precious people because of basic, unnecessary errors. It’s enough to make a good landlord weep.
But put the tissues away because here are seven ways you can win at Rental Finders Keepers.
- Use a good letting agent. Earlier in this article, we mentioned that tenants were the second most crucial piece of completing a rental puzzle. The first? Well, in our opinion, it’s an excellent letting agent. That’s not because we are one, by the way. It’s because, over the years, we’ve seen countless landlords go down the DIY route to managing their properties and getting themselves in a stressful and expensive muddle. Look for agents with experience, testimonials, industry qualifications, and a clear plan on how they’ll market, manage, and maintain your tenancies.
- Know your target tenants. An experienced letting agent will be able to advise you on who your property will most appeal to. Is it a growing family, young professionals, or a retired couple? Knowing this will help with the next ultra-important step.
- Marketing matters. Perhaps the biggest error DIY landlords make is not taking the marketing of the property seriously enough. You are ‘selling’ an expensive product after all. This is why photography, property descriptions, and online advertising should be handled by professionals who do it day in, day out. The better your property’s marketing, the better calibre of tenants it will attract – giving you more choice when it comes to the next step.
- Setting the rent. By knowing your target tenant, marketing correctly, and listening to expert advice, you’ll be able to set your rent at the right amount. A correctly priced rental (not too cheap or expensive) will attract more interest and ultimately, more offers from quality tenants.
- Be prepared for questions. Good tenants tend not to just turn up at a property and say: ‘It’s great, where do I sign?’. It’s a big decision for them, and they’ll have questions such as ‘What council tax band is the home in?’, ‘What are the parking arrangements?’, ‘Are utilities included in the monthly rent?’. Remember, when it comes to the best tenants, this is a two-way selection process as they are savvy enough to research the rental market, so you’ll also need to make a good impression on them.
- Check them out. A tenant worth having will have no issue going through a referencing process. Here’s another area where a good letting agency reduces your risk of problems further down the line. Please don’t be shy about asking your letting agent for proof of the referencing process they’ve carried out, which should involve financial, employment, and past landlord checks. Skip this part at your peril.
- Keeping them. So, once you’ve found a great tenant, how do you go about keeping them? Well, this is an entire article in itself, but it would be along these lines: Be a good landlord by maintaining the property properly, dealing with issues quickly, charging rent fairly, and acting professionally.
At Parkview Property, our job is to help landlords find and keep great tenants. To ask us anything about the Ayrshire rental market, contact us today.
How To Switch Letting Agent
If your letting agent is delivering sloppy service or hitting you up for extra fees, then it’s time to think about switching.
Many Ayrshire landlords mistakenly think changing agents is a messy and complicated process, but it’s relatively simple.
Why change?
Most landlords switch because they’re unhappy with the level of service they’re getting from their agent.
It’s time to consider switching if:
- You find yourself doing more and more of the legwork when it comes to maintenance, repairs, and safety checks because the agent is disorganised or lazy – or both.
- The tenant is calling you because the agent’s not returning their messages.
- The agent adds a commission to contractors’ fees.
- Regular inspections are not taking place.
Finding the right agent
Before you switch, do your research and look for an agent who is:
- Local. Many corporate chains outsource their property management services to out-of-town contractors (although they don’t tell you this when pitching for your custom). Choose a local, independent letting agent instead – they’re best placed to keep a close eye on your property and, if there’s an issue, can be on-site in a jiffy.
- Accessible. Go with an agent who is hands-on and easy to get in touch with – they’ll be far more accountable than a third-party contractor who you’ve never met face to face.
- Committed to using local tradespeople. Local plumbers, electricians, and gas engineers will be more likely to work to a high standard as they have a reputation in the area to protect. Avoid agents who use contractors from further afield and charge commission on contractors’ fees.
What does switching involve?
- Read through the contract you have with your agent and understand your notice period and any other restrictions you need to be aware of. Many landlords find it easiest to switch when a tenancy is ending or up for renewal.
- Serve notice in writing to your letting agent. Instruct your agent to release all tenancy documents – such as electrical and gas safety certificates – to your new agent.
- Instruct your existing letting agent to release the deposit to the new agent.
- Notify your tenant about the change and give them the details of the new agent.
And that’s it! A few simple emails and you can be on the road to a less stressful, more successful landlord/letting agent relationship. Your new letting agent will keep a check to ensure all the right documentation arrives, and you can rest easy.
For more information about our property management services, get in touch with me Janice Molloy, at Parkview Property.
Pet Owners in AYRSHIRE – Keep Them Calm and Carry on This Fireworks Season
We share seven tips from national pet charities to keep pets from suffering stress this fireworks season in this two-minute read.
At PARKVIEW PROPERTY, we love pets.
And we get to meet plenty of our clients’ furry friends during our daily work across Ayrshire
According to a 2018 survey by builders, McCarthy Stone, pets made people a lot happier about their everyday lives.
45% of the people they polled said their pet is the main reason they exercise, and a whopping 31% said having a pet gives them a purpose in life.
So, now that fireworks season is back with a bang and a whoosh and frequent flashes, we thought we’d share seven simple steps you can take to help your beloved pets avoid anxiety this weekend.
Below are four tips from the world-renowned Battersea Dogs Home, followed by three more ideas from the CATS Protection charity.
- Stay indoors. Don’t walk your dog in the evening during fireworks weekend.
- Draw the curtains. Unexpected flashes can cause dogs anxiety as much as random bangs, so close the curtains.
- Give your dog space. Confining your dog in one room during the evening can cause extra anxiety for them. Instead, let them wander indoors as much as they want.
- Distract them with treats. Long-lasting chews and bones are a great way to keep their minds off what’s happening outside.
- Stay calm. Instead of overly comforting an anxious cat, keep cool – your cat is more likely to feel relaxed if you are.
- Create a safe space for your cat. A cardboard box lined with blankets is ideal. However, cats feel safer higher up – so place the box on a sturdy shelf if possible.
- Play music. Cats and loud noises don’t necessarily mix. Try keeping a radio or TV on. This distraction can lessen outside noise and help if your cat gets scared from the sudden sounds of fireworks. Nina Simone’s Feline Good is a cat classic (sorry, we couldn’t resist).
More helpful information about keeping pets safe and sound can be accessed via www.cats.org.uk and www.battersea.org.uk.
Although this article features advice for dogs and cats, the basic care principles are the same for many of our beloved pets.
We hope you enjoy the fireworks this weekend and that your pets don’t even notice them.
Thanks for reading.
Carbon Monoxide Poisoning: A Shocking Statistic That Ayrshire Landlords Should Know
In this three-minute read, we examine the dangers posed by carbon monoxide.
I recently read a statistic about private landlords that left me speechless
A massive 56% of private renters say they live in a property that doesn’t have a carbon monoxide alarm*.
Can such a high percentage of landlords really be ignoring safety advice and flouting regulations on carbon monoxide alarms?
By law, any room in a rental property with a solid fuel-burning device or a gas appliance (such as a boiler) should have a working carbon monoxide alarm.
These rules are there for a good reason – carbon monoxide poisoning can cause severe illness and even death. There’s no excuse for complacency.
How is it made?
Carbon monoxide is a by-product of burning fossil fuels. When fuels like gas, oil, charcoal, wood, or coal fail to burn properly (a process called incomplete combustion, caused by a lack of oxygen), carbon monoxide is produced.
Exposure to it is hazardous to humans and animals.
Detecting it
You can’t see, smell or taste it; hence its nickname, the Silent Killer. To keep safe, you need to ensure carbon monoxide alarms and fuel-burning appliances are in good working order.
Good ventilation is crucial, too. Blocked flues and chimneys are problematic, as are poorly fitted flues.
Other warning signs include:
- Black or brown stain marks around heaters and fireplaces.
- Pilot lights on gas appliances that extinguish regularly or burn yellow (they should burn blue).
- Flames that burn yellow or orange.
- Excessive condensation in a room where there is a device that burns fossil fuels.
- Excessive soot.
Symptoms
Signs of carbon monoxide exposure include vertigo, tiredness, nausea, headaches, chest pains, and blurred vision. The affected person may slip into a coma and then die. The NHS says 60 people die from carbon monoxide exposure every year.
Keeping your tenants and property safe
Landlords should:
- Brush up on the regulations and install carbon monoxide alarms where required.
- Ensure working fireplaces are serviced and swept by a competent person.
- Have gas appliances regularly serviced by a qualified engineer.
- Check any carbon monoxide alarms in the property are working when the tenant moves in (note this in the check-in inventory).
- Ask tenants to test carbon monoxide alarms regularly.
- Test carbon monoxide alarms during mid-tenancy inspections.
- Endeavour to avoid cowboy builders who could bodge boiler and flue installations.
For more advice about keeping your tenants safe and staying on the right side of the law, contact us here at:
Parkview Property 01292 442888
*According to a survey by property software company Plentific.
Why Ayrshire Landlords Could Be Taking Expensive Shortcuts
In this two-minute read, we look at the false economies many landlords in Ayrshire are making regarding their rental properties.
Many of us realise doing a bit of DIY can save you money. But it comes with a caveat that you must know what you’re doing first.
For every successful bit of hallway decorating, there are dozens of tales of lopsided shelves, incorrectly fitted taps, and a whole host of other DIY disasters and fails.
And this risky approach doesn’t just apply to home DIY – we often see it when a landlord tries to do everything themselves.
Here are five of the most common mistakes landlords make when they think about the pennies but take their eyes off the pounds.
- Marketing matters – There’s much more to marketing a rental than simply slapping it on Facebook or Gumtree and hoping for the best. It’s nigh on impossible to achieve a property’s optimum rent by using this approach.
- Poorly referenced tenants – An excellent letting agent will carry out all the proper referencing needed to ensure you get a good, reliable tenant. Skipping this process and ‘going with your gut instinct’ can be hugely expensive further down the line if the tenancy turns troublesome.
- Maintenance mistakes – The most significant error landlords make when it comes to maintenance is not having money set aside in their budget to keep their property in good condition. A general rule of thumb is to put away £100-150 per month towards maintenance and general upkeep.
- Cheap is not cheerful – Many landlords make false economies by scrimping on things like flooring, windows, and taps and fittings, only to have to replace them more quickly than they would have if they invested a little more in the first place.
- Temperamental tradespeople – The nightmare scenario for many landlords. A call comes in on a Sunday evening (usually when you’re on holiday) from a tenant telling you the boiler has packed up. DIY landlords often rely on their own trade contacts in this situation, which can be great but is often not. However, a good letting agency has access to a pool of tried and trusted tradespeople who fix things fast and professionally.
Of course, we understand that you want to get the best possible returns from your rental investment. But experience has taught us that using a letting agent to find tenants and manage your property is money well spent.
We’d be delighted to offer a free review of your rental property/properties and highlight where you can save money but also protect your assets.
Call us on 01292 442888 or email info@parkview-property.co.uk