Reasons Why You Should Invest In A Holiday Rental
In this two-minute read, we look at the advantages of buying a holiday rental property.
Planning a foreign holiday over the last two years has taken a lot of patience, caused a lot of frustration, and has seen lots of Brits opting for a staycation.
With amber and green lists changing frequently, mandatory PCR tests, and the dreaded threat of hotel quarantine, the demand for UK holiday rentals has gone through the roof. But are they really worth the investment?
Here are five reasons why buying a holiday rental property may work for you.
- Expect a higher rental yield
In peak holiday season, holiday rentals can earn more in a week than a buy-to-let can in a month.
A decent holiday property can earn as much as an 11% rental yield (according to which.co.uk) compared to a buy-to-let which normally earns around 4 – 8% per annum. Be sure to do your sums before investing and subtract any agency or mortgage fees before working out your potential yield. It’s also worth remembering that more expensive destinations offer lower yields.
- Holiday home for you
One of the most obvious benefits of a holiday rental property is a ready-made staycation home for you and your loved ones. Keep in mind, to earn the highest income from your rental property during peak seasons, you’ll want it rented out rather than staying there yourself.
- Higher capital appreciation
If you’ve got your eye on a holiday rental that requires some TLC, you could enjoy an increase in property value over time and as the destination becomes more sought after. However, if you’re buying in a popular location, you might be paying a premium where prices have already peaked.
- Less wear and tear
Buy-to-let landlords often have to pay out for maintenance and repairs at the end of a long tenancy. However, holiday rental properties are typically occupied for one to two weeks – so there’s less time for day-to-day damage.
The downside of lots of short-term guests is the need for a management agency to take care of housekeeping and general maintenance. Alternatively, you can manage the holiday let yourself and help guests with any issues during their stay.
- Tax advantage
HMRC considers holiday rentals to be a business rather than an investment, so a landlord can enjoy more tax benefits than a buy-to-let owner. If the property is a Furnished Holiday Let (FHL), you might also be able to claim (limited) mortgage relief.
Always speak to a property/finance professional to find out about other tax advantages such as inheritance and capital gains tax and business rates instead of council tax.
For more information about buying a holiday rental property, contact us at Parkview Property 01292 442888
Tenant Eviction Process
When Evictions Are the Only Option
Getting to the stage where you have to evict your tenants is difficult for everyone involved and should always be considered as a last resort. It might be deemed necessary when:
- The tenant isn’t paying the rent
- The tenant has abandoned the property
- The tenant has broken a term of the tenancy
Due to the pandemic, the rules have changed as to when you can start eviction proceedings and also how much notice you need to give.
There is a very specific process you must follow in order to carry out an eviction. If you don’t, you can be found guilty of harassing or even illegally evicting the tenants.
If you are owed rent but the tenant claims Universal Credit or Housing Benefit, you may not have to evict them. Instead, you can speak to DWP or the local council, respectively, to have the rent paid straight to you. This is called ‘managed payments’.
In Scotland, if your tenants have a Private Residential Tenancy, the following steps are necessary:
- To end a tenancy, you have to give the tenants a Notice to Leave. This must also have supporting evidence as to the reason why you’re asking them to leave.
- If the tenants don’t leave by the specified date, you can then apply to the First-tier Tribunal for Scotland (Housing and Property Chamber). This is often referred to as ‘The Tribunal’.
- You must also advise the local housing authorities’ homelessness team that you have serviced notice.
In normal (pre-pandemic) times, the amount of notice you must give the tenant can be 28 days’ notice or 84 days’ notice, this depends on the length of the tenancy.
It can be easy to get one or more steps wrong throughout these processes. It’s very important that you seek the correct legal advice from appropriate professionals. The cost implications of getting it wrong can be significant, so it’s worth doing it correctly in the first instance.
In England and Wales, if your tenants have an assured shorthold tenancy, the following steps are necessary.
- First, you have to issue a Section 21 notice if you want the property back after a fixed term ends. If the terms of the tenancy have been broken, you must issue a Section 8 notice.
- After the correct paperwork has been issued, you can apply to the court for a standard possession order. This is only appropriate if your tenants haven’t left by the specified date on the notice and they owe you rent. If you’re not claiming for unpaid rent, you can apply instead for an accelerated possession order.
- If the tenants still won’t leave, you can apply for a warrant for possession. This allows bailiffs to get involved to remove the tenants from the property.
If you’re a landlord or a tenant in Ayrshire and are concerned about possible eviction, please don’t hesitate to get in touch on 01292 442888
IS YOUR LETTING AGENT LEGIT?
The lettings sector used to be the Wild West of the property market, with a small group of unscrupulous agents giving the industry a bad name.
Thankfully, the introduction of stricter regulations in recent years has sent many cowboy agents riding off into the sunset.
But no industry is perfect, and landlords and tenants still need to be wary of rogue operators.
If you’re looking to do business with a letting agent, one of the first things you should check is that they are a member of a client money protection scheme (CMPS).
By law, all letting agents in Scotland who handle ‘client money’ – in other words, hold rent, maintenance funds or holding deposits on behalf of customers – must be a member of a CMPS. (Note: this is different to a tenant deposit scheme, which agents should also utilise.)
A CMPS is basically an insurance policy. It means that if an agent goes bust or does a runner while holding funds on behalf of clients, the landlords and tenants affected receive compensation. (This didn’t always happen in the old days.)
How can I tell if an agent is a member of a CMPS?
There are six approved CMPSs: Client Money Protect, Money Shield, Propertymark, RICS, Safeagent (previously NALS), and UKALA Client Money Protection.
For the record, here at Parkview Property Ltd, we’re members of Client Money Protection.
Agents must display details of their CMPS membership on their website and in their office.
Always verify an agent’s membership claim by cross-checking with the relevant CMPS (you can do this online in minutes).
It’s good practice
If an agent gives you a blank look or the run-around when you ask about their CMPS membership, alarm bells should ring.
A good letting agent will have no trouble answering the question (and be impressed by your industry knowledge).
An agent who isn’t a member of a CMPS can be fined up to £30,000. Local authorities, through their Trading Standards operations, enforce these rules.
From all of us here at Parkview Property, stay safe and thanks for reading
Could the Next Olympic Champ Come from Ayrshire? Let’s Nurture Local Talent
Where Are Olympic Heroes Made? Look No Further Than Your Local Sports Clubs
In this three-minute read, we look at where three GB Olympic stars started their sporting journey.
Eleven thousand elite athletes will converge in Tokyo next week for the 32nd Summer Olympic Games.
Each of them will have put in tens of thousands of hours in practice and shed blood, sweat, and tears to get there.
But as you marvel at the rippling abs and razor-sharp mental strength of these sporting Titans, pause to consider where their careers started.
Most will trace their success back to a local sporting club that introduced them to the joys of competition and fostered their prodigious talent.
In the UK, there are 151,000 sports clubs. The majority get by on shoestring budgets and the goodwill of volunteers; many are the lifeblood of communities.
In Ayrshire, we’re lucky to have Ayrshire Athletics Arena in Kilmarnock. and Newmilns Snow and Sports Complex where I spent many a winters night with my fanatical snowboarding son! It was worth it though, he was selected for the British Snowboard Cross Home Nations Academy. 'proud mum moment'.
So, as we cheer on Team GB, let’s also pay credit to the grassroots clubs nurturing the Olympians of tomorrow.
Here are three Olympic stars who got their start at a local club.
Jade Jones
At the age of eight, Jade attended a Taekwondo taster session at the Flint Pavilion Leisure Centre in her North Wales hometown. She was quickly hooked on the sport and became a star performer at Flint Taekwondo Club.
Jade has gone on to win national and European titles and took gold in London and Rio. Look out for her at Tokyo, where she’s pushing for her third title.
And if you ever visit Flint, you’ll notice that the leisure centre has a new name: the Jade Jones Pavilion.
Shirley Robertson
Scottish sailor Shirley Robertson won gold in Sydney and Athens. These victories made her the first woman to win consecutive gold medals in different Olympic sailing events.
Shirley learned to sail in a homemade dinghy at the Loch Ard Sailing Club, located in the Loch Lomond and Trossachs National Park. (Surely, one of the most picturesque sailing venues in the UK.)
After several years away from competition, Shirley recently hinted at a return. She’s eyeing up Paris 2024.
Sir Bradley Wiggins
Sir Bradley was 12 when he joined the Archer Road Club – so named because its original members met above a cycle shop in Archer Road, Westbourne Grove, London. Heavy traffic in West London later saw the club move its road racing activities to Hillingdon Cycle Circuit.
During his career, Sir Bradley won five gold, one silver and two bronze Olympic medals.
From all of us here at Parkview Property, stay safe, stay active and support your local community.
What's Going On In Ayrshire
Local Activities and Days out
Theres so much to do here in Ayrshire. If your kids are whinging that they are bored this summer, visit Culzean Country Park. Take a picnic and tire them out with a long walk through the woods. There’s also Heads of Ayr Farm Park, or Craufurland Tree Top Trails for an exciting obstacle course in the trees. For the enthusiasts, a trip over to Arran and a hike up Goat Fell is an absolute must for the spectacular views alone.
For a less expensive day out, pack your bucket and spade and don’t forget about our beaches, Ayr, Prestwick, Troon, Croy, Maidens.
Click onto ‘what’s on!’ Ayrshire for a full list of local events.
Housing and Property Market
Internet searches for property must be our favourite pastime. Apart from football and love island obviously.
Great News! Todays’ property market in Ayrshire is certainly in favour of the seller. Folk from all over are relocating to our lovely seaside towns. And why not?
Bad News! This has had a knock-on effect with the Rental Market, and as such the supply of rental properties far outweighs the demand of prospective tenants. As a local Estate and Letting Agent, we are seeing the desperation of those who have sold their properties and at closing dates, have nowhere to go! It’s becoming increasingly difficult to find their next home.
If you are a landlord and have a vacant property, find out why it hasn’t yet attracted the right tenant.
Here at Parkview Property, we have at least half a dozen excellent prospective tenants to choose from each one of our advertised properties. Unfortunately, this means we need to let several ideal tenants down. Let us know if you can help.
Shop Local
Don’t forget to support our local businesses too. Eat out at an independent café, bar or restaurant. These guys have struggled and will appreciate your custom and support. We are spoiled for choice. Balgarth Pines, Fox and Willow, The Urbanist…too many to choose from.
While you are shopping locally, why not visit the Farmers Market at The Cross, Kilmarnock. The produce is fresher than anywhere else, and what you spend goes directly to the farmer.
- It is important to remember that by using these venues, you are supporting the local economy and sustaining local jobs.
You can find details of local events / activity days and local businesses on Facebook and What’s on! Ayrshire.
You can also find us on FB and more property information on our YouTube Channel https://www.youtube.com/channel/UCYqKXM_WiK5qXZNVL3X90fQ
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.
How To Avoid Bad Tenants
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
Staycations in Scotland
In this three-minute read, we share top tips for successful camping trips in Scotland or closer to home in Ayrshire.
Friday 2 July sees the start of the UK’s National BBQ Week – one of the Great British public’s favourite pastimes as well and checking out properties on Rightmove! Whether it’s bangers, halloumi burgers or spicy cauliflower steaks on the menu, BBQs are the number one meal option when it comes to camping trips.
We’ve put together a list of essential items for a successful camping trip.
Prepare for all kinds of weather
We all are very well aware or how unpredictable our Scottish weather can be. However, there’s no such thing as bad weather if you’re appropriately dressed. But a lightweight rain coat and an extra sweatshirt are a good idea if the weather is unkind.
A travel-size games compendium might come in handy if rain forces you to retreat inside your tent.
Portable power bank
In an ideal world, camping trips should be full of wholesome fun; muddy knees, swinging on tree ropes and marshmallows by the campfire.
In reality, the kids still need their Peppa Pig fix or Instagram updates and you might need to keep an eye on work too.
So, to keep you connected, a portable charger is an absolute must-have
First-aid kit
Be prepared for all manner of first-aid needs – nettles, insect bites, BBQ or sun-related burns, and don’t forget about the famous Scottish midges.
Kit yourself out with plasters, antibacterial cleansing wipes, healing cream, and maybe some paracetamol for the morning after. Better to be safe than sorry.
An extra loo roll (or two)
Not that we’re endorsing buying more than you need (we still remember the Covid-19 loo roll fiasco), but a couple in reserve is always sensible.
A gadget for everything
Don’t forget the corkscrew, imagine a camping trip with no wine!! Or better still, invest in a Swiss army knife – opening tins is near on impossible without a can opener. And you never know when you might need that emergency nail file.
If you’ve got any camping tips to share, or even better, recommend your favourite campsite in Ayrshire or Scotland in general, get in touch with us here at Parkview Property Ltd.
Have a great weekend and Happy Fathers Day
Buy To Let Calculator
Here's a quick and simple calculation to help you figure out if your Buy To Let Property will offer you a healthy return. If in doubt, do the math! Don't buy blind, always consider the 're sale' value for long term capital gains.
Here are a couple of things to take into consideration when looking for a really good investment.
- How much is the property and will you achieve enough rent to make it worth your while
- How long has the property been on the market. Too long? - Find out why
- Is it in a good Rental area, i.e. close to travel links, shops, university.
- Has it been rented before. If so, ask for legislative certificates and why are there no tenants in situ?
- What Capital Gains might I get. Although you’re initially looking at rental income as your key return, long term capital gains and property price increases can be very nice too. So invest in up and coming areas.
If you're unsure of where, what or how to purchase a Buy To Let, feel free to call us on 01292 442888
Our advice is always free with no strings attached.
6 Reasons Why Property Inspections Are a Must for Landlords
In this three-minute read, we look at why regular inspections should be central to your property management strategy.
When you’re a busy landlord juggling a multitude of responsibilities, it’s easy to let a crucial part of managing a property – regular inspections – slide.
Landlords usually carry out inspections with clockwork regularity at the start of a tenancy, but things can get a little lax over time.
Perhaps the tenant presents as a model citizen, and the landlord develops a false sense of security. (To which we say, remember Walter White, the unassuming science teacher turned crystal meth baron in the TV series Breaking Bad.)
Or maybe, the tenant pays their rent on time and never says a peep, so the landlord assumes that everything is ticking along nicely (silence is golden, right?).
No matter how much you like your tenant or how busy you are with other commitments, never skip or delay a property inspection. They are one of the best ways to protect your investment – and head off disaster.
Here are six reasons why Ayrshirelandlords should carry out regular inspections.
- Maintenance
It’s easier (and cheaper) to rectify a minor maintenance issue than a major one. A tenant may not mention a leaky tap or a little bit of damp, but these problems can morph into expensive repair jobs if left unresolved. It’s also essential that you check that carbon monoxide monitors and smoke alarms are working.
- Paper trail
The photographs and notes you take during each inspection (yes, you should be doing this) create a valuable paper trail. If there is a dispute at a later date, you’ll have evidence to support your side of the story.
- Build rapport
If your tenants find you approachable, they’ll be more likely to let you know when there is an issue and treat your property respectfully.
- Contractual obligations
It’s important to know that your tenants are complying with their contract and haven’t sublet the property or sneakily adopted a pack of Great Danes.
- Spot illegal activities
With regular inspections, you can ensure your property isn’t being misused by a criminal gang. We know this sounds far-fetched, but gangs – particularly those involved in cannabis production – are becoming increasingly brazen. Trust us, the last thing you want is a police cordon and Sky News reporter outside your property.
- Insurance disputes
Many insurers won’t pay out on a major claim if the landlord hasn’t conducted regular inspections. They argue that by neglecting to visit the property, the landlord has not been vigilant and has therefore invalidated the policy. Whatever you make of this justification, cover yourself, so you don’t wind up out of pocket.
For advice about our property management services, please contact us here at Parkview Property 01292 442888.