Pros and Cons of Different Types of Tenants in Ayrshire

Landlords! Finding the Right Tenant for Your Ayrshire Property is Half the Battle

In this three-minute read, we talk about three types of tenants and the pros and cons of each.

Currently, the UK rental market is booming, with landlords finding tenants quicker than ever according to Rightmove, and demand for rentals up 3% from last year. As a landlord, this is great news, so why not maximise the opportunity by finding the perfect tenant for your Ayrshire property.

Families

As the most common type of tenant in the UK market, is your rental family friendly?

Pros: Families tend to rent for the long term and once they’re settled, they often stay put. This is a massive plus, as a long lease requires minimal input. A typical family tenant will also be keen to furnish the property themselves, saving you costs and hassle.

Proximity to a school – especially one rated Good or Outstanding by Ofsted – can boost demand for your property and command a higher yield. Similarly, if your rental offers outside space and is close to shops, you’ll see a surge in interest from the family sector.

Cons: With families comes the potential for more wear and tear. This means you’ll want to make sure your property is finished to the highest quality to protect against damage. You’ll also want to ensure that any repairs are dealt with quickly.

If a family is on a long lease, they will make the home their own by hanging pictures, decorating children’s rooms and so on. So, at the end of a tenancy, you can be pretty sure your rental property will need a spruce up.

Professionals

Often regarded as the dream tenant, working professionals want proximity to transport links or their place of work.

Pros: With professionals comes the stability of a secure rental income and less chance of arrears – a huge bonus for private landlords. Less wear and tear and reduced potential for noise makes working professionals the crème de la crème of the rental market.

Cons: Just because they’ve got a good job when they move in, you can’t guarantee your monthly rent without some sort of rent protection. As the last 18 months have taught us, jobs can easily be lost, and financial situations can change quickly.

Students

Typically, students have a bad rental reputation, but is this a fair conclusion?

Pros: If a rental property is located near a university, you have the option of renting a property room by room – maximising your rental yield.

With most students receiving some sort of finance to support their studies, your rental income is safe with a reduced risk of arrears. You may also have the backup of the ‘bank of mum and dad’ just in case funds run low.

Cons: Unfortunately, lots of students means lots of partying and could lead to a higher risk of damage. There’s also a chance that maintenance issues may not be reported promptly. You can also expect a high turnover of tenants as the academic year is only around 10 months. This means more admin, advertising, and a need for end-of-tenancy problems to be resolved quickly.

For more advice about what type of tenants are attracted to rental properties in Ayrshire, contact me. My name is Janice Molloy from Parkview Property 01292 442888  

by Andy

What Rules and Regulations Are Ayrshire Landlords Falling Foul of the Most?

Being a landlord is a tricky business. There are nearly 200 different pieces of legislation covering the how, why, and when of managing a rental property. Here are just four that landlords are often not getting quite right.

Deposit protection

In England, Scotland, and Wales, the deposit must be registered with a deposit protection scheme. The 2021 UK Landlord Survey found that 81% of landlords find registering their deposit difficult.

The deposit must be registered within 30 days of receiving cleared funds. The schemes are government-approved and the tenant must be informed where the money is deposited.

Energy performance certificates

Every rental property in the UK has to have an Energy Performance Certificate (EPC). They are stored on an electronic register that is publicly available. However, they also have to be included in any advertising you do for your property.

Electrical safety regulations

In December 2015, strict rules about electrical testing for new tenancies in rental properties came into force. Inspections must be carried out by a qualified person on all fixed electrical installations.

Gas safety check regulations

If you have gas going in to your rental property, all appliances, pipework, and flues must be checked annually.

As for the electrical safety tests, ensure that you use a qualified engineer and don’t plump for the cheapest. The report must be given to the tenant within 28 days as well.

TOP TIP: As with any time you need to visit, or arrange a visit to the property, make sure you give the tenant at least 24 hours’ notice. Keep a record of having given notice. If the tenant refuses access, you’ve then got the evidence that you tried.

If you’re a landlord in Ayrshire and are not 100% sure on all the rules and regulations you need to abide by, get in touch with us at Parkview Property. A free, no-obligation chat will show you what you might need to tweak or if you’re on the right track.

by Andy

How To Avoid Bad Tenants

https://youtu.be/f8_B6D6DxWE

New landlords often flirt with the idea of ditching traditional tenant selection processes and taking a DIY approach instead.

After all, there are so many ways to source tenants these days – like Gumtree or social media – why bother with anything else?

Trust us, side-stepping a formal selection process may seem like it might save you time, but it can be so much costlier in the long run.

Wind up with a bad tenant and you can expect:

  • Sleepless nights.
  • Sky-high legal bills.
  • Lost income.
  • Property damage.

Let me explain more about the risks of skipping proper reference and credit checks.

If you use an online platform like Gumtree

The internet has made it easier for landlords to find tenants, but not easier to find good tenants. Post an ad online, and you’ll get lots of responses – but many of them will be from time-wasters and con artists, not genuine candidates. Professionals are more likely to use a traditional bricks and mortar letting agent because they’re wary of getting ripped off in an online scam.

Tenants aren’t the only ones to fall prey to online scammers; landlords can be targets, too. Online crooks often use ‘to let’ adverts as ‘phishing’ opportunities. They pose as tenants to get as much information as they can about you and your vacant property, before they get to work fleecing you.

If you let to a mate or relative after asking around on social media

You may be tempted to ask your contacts on WhatsApp or Facebook if they’re looking for a place to rent. But be warned: things can get very messy when you blur the lines between personal and professional. If things don’t work out, it could cause a major family fall-out or friendship rift.

Sometimes, when a landlord knows the tenant, they don’t bother with a contract. Please, never, ever do this. If you do get into a dispute later, your legal options will be limited.

Some buy-to-let mortgages prevent landlords from renting to a family member or friend. Always check the fine print before making a decision.

Insurance companies often get twitchy if the tenant is a relative. In some cases, your cover is invalidated if the tenant is a family member. In other circumstances, you won’t be covered if you haven’t conducted reference checks.

What’s the alternative?

Here at Parkview Property, we have a 5 star tenant selection process that offers you peace of mind and legal protection. It involves screening candidates by phone, in-person interviews, and rigorous reference, credit, and employment checks.

Remember, it’s never too late to screen your tenants – even if they’ve already moved in.

If you want to know more about our referencing procedures, please feel free to contact us here at Parkview Property Ltd  Tel; 01292 442888

Copyright 2021

by Andy

Landlords and Data Protection

For more information to protect both yourself and your tenants, watch the video or read more details below

https://www.youtube.com/watch?v=_wfjsi8L77U

The ICO is the Information Commissioner’s Office and covers the whole of the UK. The ICO website explains that they are ‘The UK’s independent authority set up to uphold information rights in the public interest, promoting openness by public bodies and data privacy for individuals.’

It doesn’t matter how many properties you have, how many tenants, nor how many people you work with or have working for you. It is the whole business that must be registered. As a landlord, you are considered to be a business, even if you’re a sole trader.

Some landlords think that their letting agent has to be registered and therefore, they themselves are exempt. This is not the case. Anyone who handles personal data and stores it electronically must register. This could be as little as a name or phone number for the tenant that was texted or emailed to you.

The ICO fee will be between £40 and £2,900 per annum. The fee is paid annually. It is worked out depending on the size of the business and turnover. There is a self-assessment you can carry out on the website. Have a look at it, ico.org.uk  This will show you what amount you will have to pay.

Tenants could raise complaints about you to the ICO if they believe you’re misusing their data. The ICO might then investigate. If you had a complaint about the tenant, like unpaid rent, the tenants could use your non-registration against you. If you don’t register with the ICO and get caught, the fines can range from £400 to £4,350.

It’s a simple 15-minute process to get registered. It’s not something an agent can do on your behalf.

Here’s what you’ll need to get started;

  • The name and address of the business that needs to be registered
  • Turnover and staff numbers
  • Business details
  • Credit/debit card details

The fee will be due again in 12 months’ time. It could be easier to give the ICO direct debit details. If you are a landlord and would like further advice about this or any other lettings issue, please don’t hesitate to get in touch for a free, no-obligation chat on 01292 442888

by Andy