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.


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.


Are You a Landlord or a Property Investor in Ayr

Are you a Landlord or a Property Investor? What’s the difference? Aren’t they the same thing? Does one rent out properties and the other sell them on? If these questions have got you scratching your head, read on.

Keeping it simple, a landlord makes a regular income from renting properties to tenants. They are responsible for maintenance and managing the property. It’s also likely that they hold onto the property for the long term.

A property investor is trickier to define. It might be someone who buys buildings they can add value to before selling on, or someone that invests in other people’s property ventures, not getting involved in the actual build or refurb.

Hands-on vs hands-off

A private landlord has got a lot to do. Once they’ve bought, financed, and refurbished their rental property, they enter the wonderful world of lettings. And while many landlords use our agency to find tenants and manage their property (the easiest decision in my humble opinion), many choose a more hands-on approach. So, they manage the property, taking care of tenant enquiries, emergencies, or repairs.

Being a landlord can be a full-time job, depending on the number of properties and tenants they may have.

A property investor takes more of a back-seat role. For example, they may be part of a joint venture or involved in an equity partner agreement. This is where they put up the capital and other parties do the work.

Property investors with access to a large amount of money may take more indirect routes to their investments such as property funds or trusts, buying shares in large development companies or property ISAs. In each instance, they commit their cash, rather than their time.

Regular income vs one-off payments

A private landlord looks for a good rental yield as a stable and relatively low-risk property investment. They receive monthly rental payments that should cover mortgage costs and could (hopefully) supplement their income. Over time, if they sell their rental property, they may also benefit from price appreciation. Nowadays, many private landlords regard property as an alternative to a traditional pension.

Property investors buying buildings to ‘flip’ or develop look for a one-time payoff once they’ve sold the property.

I deal with both, therefore If you’re interested in becoming a landlord or investing in property, call me on 01292 442888


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


Common Ways Your Ayrshire Home Could Be Making You Ill

In this two-minute read, we explore issues in your home that could be making you feel unwell and how to cure them.

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.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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

https://www.youtube.com/watch?v=H4AoJm3Xwfc&t=3s

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?

  1. 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.

  1. Stay indoors. Don’t walk your dog in the evening during fireworks weekend.
  2. Draw the curtains. Unexpected flashes can cause dogs anxiety as much as random bangs, so close the curtains.
  3. 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.
  4. Distract them with treats. Long-lasting chews and bones are a great way to keep their minds off what’s happening outside.
  5. Stay calm. Instead of overly comforting an anxious cat, keep cool – your cat is more likely to feel relaxed if you are.
  6. 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.
  7. 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.


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.