Rental Guarantors and Ayrshire Landlords
This three-minute read explains the role of rent guarantors.
When a landlord has a niggle of anxiety over whether a prospective tenant will pay their rent, there is a way they can help protect their investment.
A landlord can ask a tenant to provide a guarantor to ‘guarantee the tenancy’.
Guarantors are often family members or close friends – and a little bit like a human safety net.
If the tenant can’t (or won’t) pay what they owe the landlord, the guarantor has to stump up the cash – or face the landlord at a Tribunal.
Extent of liability
As with so much in the lettings game, it all depends on the terms of the contract.
While some agreements only cover unpaid rent, others will also cover things like damage to the property.
An agreement should clearly state what is covered and outline the circumstances under which the contract will end.
This is important. If the guarantor has a change of heart mid-tenancy, they can’t simply walk away from their commitment. The agreement is legally binding.
When to use a guarantor
It comes down to the landlord’s discretion, but often a guarantor is used when a tenant:
- Is new to renting.
- Has gaps in their employment history or has recently started a new job.
- Is a student.
- Has a credit rating that is lacking in some way. That doesn’t necessarily mean the tenant has had financial problems; they may be young and have never had a credit card or other loans.
Important points
- A landlord must check a guarantor’s credit and employment records closely (just as you would with a tenant). Guarantors are often required to own a property and have a gross annual income three times the rent of the rental property they are acting as a guarantor for.
- Most landlords prefer the guarantor to be UK-based as it’s easier to run credit checks on them and take legal action if required.
- Issues can occur when people agree to be the sole guarantor on a rent agreement without realising this makes them liable for all outstanding rent and damage costs. For example, a mother agrees to be a guarantor when her daughter moves in with her boyfriend. However, the couple split, the ex-boyfriend disappears, and Mum is livid that she has to cover his payments.
- Landlords must ensure that a guarantor understands what they’re signing, or they could claim that they were misled or pressured into an agreement.
For more information on any aspect of renting out a property, contact me, Janice Molloy, Tel: 01292 442888
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.
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.
How to Winter-Proof Your Rental Property
We look at how landlords in Ayrshire can make sure their rental investments stand up to the challenges of winter weather.
With winter officially only a few weeks away, the time is now ideal for landlords to take steps to ensure their properties are prepared for whatever December to February serves up.
By putting a winter property maintenance plan in place, you’re setting yourself and your tenants up for a trouble-free winter period.
Begin with boilers – The best time to service a boiler is in September, ahead of it being plunged into constant action in the months that follow. The second-best time to service a boiler is right NOW. By keeping on top of boiler and heating maintenance, you’ll save a lot of money and avoid hassle in the long run.
Remember your radiators – Bleeding your radiators is a simple, yet effective way of ensuring they are working as well as they should be.
Look at lagging – Frozen pipes that burst are the stuff of nightmares for any serious landlord. So, take the time to ensure pipes are wrapped in lagging to reduce the risks of freezing and potentially bursting.
Go to guttering – Don’t wait until the weather turns before you clean out your gutters. Blockages can build up over time and slowly cause unseen damage.
Insulate everywhere – Insulating a loft is an excellent way of keeping the warmth in and the heating bills lower. But don’t forget that even insulating against draughts can be a small way of making a big difference to how warm a property feels.
Fix that fence – The stronger seasonal winds love claiming a poorly maintained fence as one of its victims. So, act now to ensure any weak spots in your fencing are ready to stand up to whatever the winter winds throw at it.
Check it out – If your property is vacant for any sustained period over the winter months, diarise weekly or fortnightly visits to it to keep an eye on things. If you can’t do this, then it’s the kind of thing a good, local letting agent can do for you.
Your rental property is an asset, and having happy tenants is a key part of making the most of it, so take the time and spend the money on creating a safe, comfortable home for them this winter.
And don’t worry if you’re not a Handy Andy or a DIY Diana. At Parkview Property, we have good working relationships with maintenance people who can do all the work for you.
HOME MOVERS - HAVING SECOND THOUGHTS?
Whether You’re Buying Or Renting in Ayr, You’ll Regret Not Reading This … Probably
In this two-minute read, we look at avoiding regret when it comes to buying or renting a new home.
We’ve all had it – that gnawing sense of buyer’s remorse when we’ve made a purchase.
It could be the make of that new car you’ve ordered. Or the colour of that dress that looked good online, but will it have a wow factor when the delivery driver drops it off?
Or something as simple as ordering a dish in a restaurant that you suddenly wish you hadn’t as your friend’s requested meal sounds infinitely more appetising.
On a more serious (and expensive note), according to research by insurance company Aviva, over a quarter of people who bought a home during the pandemic now have some regret linked to it.
It was either the cost, location, or the property itself that created the nagging feelings of doubt.
The good news is the risk of buyer’s or renter’s remorse can be reduced by following these nine simple steps.
- Have a realistic budget and stick to it.
- Work out what you want from a home and what you actually need.
- Think ahead, will this home be providing what you need in five years’ time?
- Consider all the moving costs like removals, storage, legal fees etc.
- Consider any commute time, transport links, and even broadband speeds.
- Research the area if it’s new to you. The steps below are worth following.
- Consider speaking with people who already live in the area you’re looking at. If you’re brave enough, knocking on doors in the neighbourhood and asking direct questions can be priceless and very revealing.
- Jump on social media and ask in Facebook (other social networks are available) community groups what the area is like to live in.
- Speak to me. As a local property expert, I’ll give you an honest opinion on areas and the types of property you’re interested in.
And remember, it’s natural to have second thoughts about something as big as moving home – so don’t beat yourself up about it. But by taking a little more time and applying some more research, you’ll be more confident and comfortable about moving.
I’ve been helping people in Ayrshiremove home for more than 17 years and having a chat with me is something you won’t regret.
Call me on 01292 442888
Tenants Guide To A Stress Free Move
Step-by-Step Stress Free Moving Guide for Renters
In this two-minute read, we look at how renters in Ayrshire can take the hassle out of finding a place to live.
Are you looking to move into a new rental property? Here’s a guide to finding a new home.
- Research
Identify where you would like to live and what kind of property you’re looking for. For example, if you work from home, you might need office space. If you have children, you may want a garden. Having a clear idea of your needs means you won’t waste time looking at totally unsuitable properties. Once you’ve made up your mind, make a list of local letting agents.
- Budget
Itemise monthly expenses such as rent, council tax, and utility bills so that you understand what your outgoings will be (and to clarify if your choice of property type is within budget). Make sure you also factor in moving costs and set aside money for a deposit.
- Viewings
Finding a rental property is a bit like dating – sometimes it can take a while to find ‘the One’. It can be helpful to make notes (during viewings, that is, not dates – that would be weird, obviously).
- Be decisive
If you see a property that ticks all your boxes and is within budget, don’t mess about. Good properties are always in hot demand, let the agent know you are interested and ask for an application.
- References
Before you get the okay to move in, you’ll need to complete the application process by providing several important pieces of information. Expect to be asked for photo ID and your National Insurance number, along with bank statements and payslips (covering the past three months). The landlord will also seek references from your employer and previous landlord.
- Contract
Once the reference checking process is complete, you’re on the home stretch. All you need to do now is sign your contract. Always read any agreement thoroughly, and if you don’t understand something, ask for further explanation. At this point, you’ll also receive details about the electricity, and gas suppliers at the property. Note: You’ll also have to cover the TV licence and council tax.
And finally
Confirm your moving date and get packing!
For information about renting, or putting a property on the rental market, contact us here at Parkview Property
My name is Janice and I am always here to help 01292 442888.
Landlords Insurance
Landlord Insurance: Do You Really Need It?
In this two-minute read, we look at the ins and outs of landlord insurance and consider how it might just save you money in the long run.
As a private landlord, you’ve got to stay on top of repairs, damage, and unexpected costs. So how do you safeguard your property and income? Do you cross your fingers and hope for the best? Or have you taken the necessary steps to protect yourself?
What is landlord insurance?
First off, there’s no legal obligation to have landlord insurance – unless your buy-to-let mortgage offer specifically requires it. But be warned, if you’re relying on a standard home insurance policy to cover your rental investment, this may not protect you when the property is occupied by tenants.
Landlord insurance is designed to cover various aspects of your property/rental agreement. Think of it as an umbrella policy, protecting you against different risks. It normally includes buildings and contents protection as standard, and you can choose to add different types of cover such as:
- Rent guarantee protection
- Tenant or accidental damage cover
- Boiler or plumbing issues
- Legal expenses
Remember, the more you add to your policy, the more it costs.
What if I’m a leaseholder?
If you own a leasehold flat, the freeholder covers the cost of buildings insurance. However, this doesn’t protect you if there are issues within your rental property such as the boiler breaking down or someone injuring themselves on a loose floorboard (for example).
If you’re a freeholder, landlord insurance is advisable. The buildings insurance cover means you don’t have to worry about big outgoings in case of physical damage to the property, such as damp, cracks, and so on.
How much does it cost?
As with any insurance plan, the price varies depending on what your policy covers, so it’s difficult to predict. However, you can expect prices to start from around £200 per year. Use comparison websites to find the best deal and most suitable cover for your needs.
What happens if I don’t take out landlord insurance?
While it’s not the end of the world and not legally necessary, you may have to pay out a large sum if something goes wrong with the property or if a tenant or tradesperson makes a claim against you.
Many landlords choose not to take out this type of policy, especially those who own a leasehold property. As a bare minimum, freeholders need landlord buildings insurance to protect themselves and their tenants.
Talk to us at Parkview Property to discuss whether you need landlord insurance or about how we can help look after your Ayrshire rental.