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There is no shortage of long-term tenants looking for a home. In fact, there’s not enough property to house the influx of renters easing back into school and work. Ads receive hundreds of responses as desperate office workers and university students race to land a room.

But for landlords, the issue isn’t attracting tenants. The real work lies in drawing in the right kind of tenant to your property.

While the average rental duration is on the rise, many major cities such as Cardiff and Leeds still see a relatively quick turnover of tenants. It takes around 22 days to fill a vacancy. Collectively, landlords lose an estimate of £547 every year to void periods.

Benefits Of Long-Term Tenancies

A steady stream of short-term tenants can seem appealing at a glance. And for some properties – like holiday homes designed for platforms like AirBnB – it’s the most lucrative business model. But unless you’re letting a summer cottage out in Swanage or West Bay for vacationers, offering your property to long-term tenants offers more stability. 

That’s currently in short supply if you’re a landlord. High inflation rates have slashed into a once lucrative rental market. Reforms that will ban “no fault” evictions threaten to saddle landlords with difficult renters and tedious tussles in court.

Short-term lets also aren’t for landlords who let as a side business. Frequent turnovers mean more handling, dealing with tenants, and maintenance in between. If you have little time, managing a short-term let can quickly become a pain.

Your Guide To Drawing In Long-Term Lets

If you’re looking to let long-term, how do you attract tenants that can give you a steady, low maintenance source of income for years?

Don’t Rush the Screening Process

Hundreds of applications and eager tenants are jostling for space. People will naturally want to put their best foot – and offer – forward in hopes of locking down a property. Unfortunately, a keenness to dot i’s and cross t’s doesn’t automatically make someone a good candidate. How sure are you about a tenant’s ability to pay rent on time? Can you really trust these people to care for your property?

There’s no direct test that will give you answers. But you can infer using data from a few sources. For instance, payslips and proof of employment will tell you about a tenant’s financial capacity. Criminal checks can increase confidence in trustworthiness. If a tenant isn’t a first time renter, you can reach out to their previous landlords for valuable insight you can only get from experience.

Renovate and Repair

While people may settle for shoddy and poorly kept rooms in the interim, they’ll be thinking of searching for new lets even before they completely unpack their belongings. The first step in keeping tenants around for the long haul starts with making a home they’ll hate to leave. 

Nobody wants to go home to peeling paint. Sprucing up your property can work wonders for encouraging tenants to stay longer. Preventive maintenance will make everyone happier. Landlords won’t have to deal with fixes for longer, and tenants won’t have to deal with the disruption caused by a leaky pipe or mouldy walls.

Supply Useful Utilities

Homeownership is the lowest it’s been in years. Faced with rising mortgages and a scant number of low to moderately affordable housing, people are putting off buying homes in favour of renting.

Coupled with many still trying to financially rebuild after the pandemic, anything that can help save a few pounds is a welcome boon. Furnishing your property with essential yet pricey household appliances–also known as “white goods”–can make it an attractive option for first time renters who have yet to purchase their own.

Allow Some Redecorating…

Fully-furnished homes may be nice to look at, but they don’t actually encourage long-term renting. While renters technically don’t own your home, it will be theirs for the next couple of years. People want places that feel like their own.

So give tenants a little more leeway in terms of decorating. Most tenants won’t take a hammer to your walls, and simply want a few touches that make the space theirs. If storage is the problem, pre-installing hooks and other mounting systems will save your tenants time and keep new holes from peppering your drywall.

…And Pets

Few perks are as divisive among landlords as pets. On the other hand, an ill-behaved pet can cause a lot of damage. It can also be a nuisance and cause of complaint from neighbours or your apartment’s management.

But pet ownership is also a sign of a good tenant. Pets take real work, and healthy-looking animals can mean a tenant knows how to be responsible for something in their care. Plus, with 62 percent of households owning some sort of pet, allowing pet ownership is a competitive advantage. Tenants will be less likely to move out after they find a quality let that allows pets.

Offer Maintenance Help

The larger a property is, the more intimidating its upkeep. While amenities like pools and gardens can seem like fantastic perks, looking after them can weigh down on a tenant after a while, prompting them to search for something more low maintenance.

Keep tenants enamoured with your property by providing help. Fill the garden with plants that’ll be easy to look after. Leave shears–or even better, a lawnmower–on the premises for use. If the property has a pool, offer to share the responsibilities–just remember to outline everyone’s duties clearly in your contract.

Above All, Prompt and Clear Communication

Even the most attractive amenities and perks can be soured by a poor relationship between landlords and tenants. Decorating limits, pet permissions, maintenance duties–everything can be talked about and negotiated. If a tenant finds you difficult to talk to or contact for concerns, you may find them leaving even a perfectly well-kept property.

Immaculate floors, clean walls, and furniture sitting where it’s supposed to be – returning to a spotless let after a tenancy ends is the dream for most landlords. 

Yet reality is often far from ideal, with strange stains on the walls, damaged furniture, and tons of rubbish not uncommon. These are the kinds of disagreements that cause major arguments at home–between tenant and landlord, disputes that can escalate to a court.

Here’s a guide to help save both parties the headache, as well as ensure the property’s as close to ready as it can be for its next tenant.

Set Expectations At The Start Of Tenancy

The best way to avoid messy disputes and a messy property, is to make sure everyone’s on the same page right from the beginning. An inventory or check-in report will be indispensable for quantifying cleanliness which should be the landlords responsibility. Tenants are often told that the property has to be as clean as they found it, and check-in reports will give both parties a clear and objective measure of what that means.

The list should include the condition of appliances and furniture. You’ll also want to spend a little more effort into detailing areas that see heavy use, such as the kitchen or bathroom. We also recommend taking pictures to further eliminate guesswork when the time comes to compare the state of fixtures and items.

Conduct A Thorough Final Walkthrough

Final inspections are your last chance to catch violations that you should deduct from the deposit. Landlords won’t want to rush this process. After the deposit is returned, it’ll be very difficult to make claims. In some cases, you may no longer be able to contact former tenants.

So make sure to scrutinise every nook or cranny. While marks and gunk on floors and walls are much more noticeable, the mess might be hiding in places that are easily overlooked. Water and electric utilities such as faucets, flushes, outlets, and light switches should also be tested to ensure everything is in working condition.

Kitchens are notorious for harbouring nasty surprises. Don’t forget to pop the oven open to check if drip trays are clean. Rangehood filters are also typically overlooked by tenants when doing general cleaning, and so accumulate a fair amount of grease. Check if refrigerators have been defrosted properly and haven’t been overrun by mould.

Make Fair Deductions

Charging a cleaning fee at the end of residencies has been illegal since 2019. However, it is within a landlords rights to deduct from the deposit to cover cleaning and repair costs. 

These deductions are typically the main source of disputes at the end of a residency. As a landlord, it’s important to be able to distinguish what is and what isn’t fair wear and tear. For instance, worn carpeting is to be expected, especially for long-term tenants. However, wine or coffee stains on the carpet are completely avoidable with proper care.

Many landlords also falsely believe that it’s acceptable to swap old for new. Also known as “betterment”, this happens when landlords gain a landlord gains more materially at the expense of the tenant. If the carpet was already stained before tenants move in, they can’t and shouldn’t be expected to pay to replace it by the end of their contract.

Settle Disputes Professionally

Disputes can still arise between tenants and landlords even after terms have been negotiated and agreed upon. Between 2021 to 2022, 31,276 claims were made against deposit schemes across England and Wales. Exactly half of these involved cleaning, according to a report by The Dispute Service.

While resolving disputes isn’t anyone’s idea of a fun afternoon, there’s no reason you can’t be amicable. If you can’t come to a resolution on your own, it’s best to hire an attorney to facilitate the process. 

In the UK, you can hire a dispute service for free if you’ve registered the tenant’s deposit with a government-backed tenancy deposit scheme provider. In fact, landlords are required–with a few exceptions–to register deposits under these schemes for protection at the start of a tenancy. Landlords who fail to do so could be penalised with a hefty fine.

Evidence will be crucial. Gather receipts from repairs, statements from contractors, and take comparison photos of the contested area or appliance–anything that supports your claim. Adjudicators will use these to make their decision after both parties have made their cases.

Make sure to file a claim no longer than three months after a tenant moves out. Any longer and dispute services will no longer accept the case.

They’ve Finally Moved Out, What’s Next?

By law, you can’t force a tenant who’s on their way out to hire a professional cleaning service. You can get lucky with a tenant who’ll do that on their own, but in most cases people try to clean a property by themselves to save money.

While the property may be left clean enough to satisfy lease agreements and release the deposit, there’s no substitute for professional work. Hiring a service ensures that you can set the highest standard for cleanliness for your next tenants.

If you already have a tenant scheduled to move in at a specific date, make sure to leave enough time for post-tenancy clean up. You may find issues that take a little more time to fix, such as nicotine stains on walls or mould growth. 

As a landlord, you’ll encounter a mixed bag of tenants. While some will make post-tenancy clean up a breeze, many more can leave your property in disarray. Expect disagreements, but with careful documentation and inspection, you can make fair claims that will minimise the cost you have to pay to restore your property and get it ready for the next occupants.

If you’re interested in listing your property with us, please head to our website or get in touch on 0117 911 8663.

19% of all households in the UK rent private property. That’s a little over 4.4 million renters. The size of the private renting sector can make it challenging for landlords to sift through applicants. How can you make sure that the people you are letting your property to can be trusted to maintain it and pay rent on time?

A key step in the process of property letting is to have an in-person interview with applicants. You will gain much insight from potential tenants and weed out those that might prove troublesome. To help you with this process, here are 13 questions that you should ask applicants during the screening session.

1. Why Choose to Rent?

The best place to start is to ask why the applicant is renting. It’s a simple question to answer that cuts straight to the heart of the matter, and will allow them to feel more at ease by opening up about themselves.

Usually, their response will be that they’re either finally moving out from their parents’ home to live independently, they need a place that’s closer to work, or they’re currently saving up in the hope of eventually buying their own home.

2. When Do You Plan to Move?

A more practical question, this immediately lets you know if you and the applicant’s schedules align. Having a lengthy void period can be detrimental to your finances, so if the applicant doesn’t actually plan on moving into the property within a reasonable date, you can end the screening now and save each other time. 

3. Have You Ever Rented Before?

Experience in renting can be a big difference maker for how well an applicant will treat your property, while also giving you an idea as to how long they might rent your property.

A first-time renter is unlikely to know what their responsibilities are as a tenant. In that case, you will have to take the time to inform them to ensure your property is well taken care of. 

For those who do have previous experience, you can probe a little deeper into their history of renting to scope out how they might be as a tenant. 

4. If You Have Rented or Are Currently Renting, How’s Your Relationship With Your Latest Landlord?

This follow-up question for experienced renters can hint strongly at how your relationship with them could play out. 

Whatever positives and negatives they bring up should key you in on what they find important as a tenant. If they air out grievances about valid issues like their previous landlord neglecting repairs or being hard to reach, take the opportunity to reassure them that you have processes in place to address such issues.

5. Have You Ever Been Evicted?

While there may be reasonable answers to this question, any other answer than “no” should give you pause. At the very least, asking this during the interview process will give applicants the time and space to explain themselves. Extenuating circumstances must be considered in order to treat applicants fairly. 

6. Do You Have References?

A formal application process will check for references, but it doesn’t hurt to ask the question up front during the interview. This is another way to find out early on if the applicant is prepared for tenancy or not. An applicant that either can’t or won’t provide a reference is likely not a good candidate for letting your property.

7. How Long Do You Plan On Renting?

Conventional wisdom would have it that you only get tenants that can rent for, at the very least, six months. Having to repeat the arduous process of getting a new tenant any sooner than that is not worth the time and effort. However, you may be in the rare situation where you plan on renovating the property you’re letting sometime soon, but you still want to have a tenant in the meantime. In that case, allowing for even shorter contracts may be an option.

8. Are You Looking for Improvements to the Property?

You want to make sure that the tenant is okay with renting the property as it is. Closing the deal without either party acknowledging this particular issue may result in an unhappy, demanding tenant. You do not want your relationship to start off on the wrong foot, with the tenant complaining immediately about the furniture or the heating. 

9. Will You Have Other People Living With You?

The person you’re screening or the people coming in to view your property may not be the only ones who will actually be living in the property. The place may not have enough space for the number of people that the applicant plans on moving in with. More tenants may also increase the wear and tear on the property.

Most importantly, there are legal requirements that need to be met for multiple people renting the same property. All tenants need to be named in the tenancy agreement. If it’s a joint tenancy, any one or all of the tenants can be held liable for paying the whole rent. Insurance terms may also put a hard limit on how many people can live in a property. Ask for the ages of the other occupants and how they might be related to the applicant.

10. Do You Have Pets?

51% of adults in the UK own a pet. With that figure in mind, there’s a fair chance that some of your applicants will have a pet. You do have the right to refuse applicants with pets for a good reason. If you are only letting a small flat, it’s reasonable to decline applicants that have a big dog. This is why it’s also important to ask what kind of pet an applicant may have, if you’re open to having pets in your property.

11. Do You Smoke?

Smoking can cause property damage and may even pose as a safety hazard depending on your property. It’s understandable to have a strict no-smoking policy because of these concerns. Around 5.5 million adults in the UK are smokers, so it’s a fair question to ask and address as soon as possible. There is no law that outright bans smoking in rented properties, but you can include a clause in the tenancy agreement that establishes terms on smoking in your property.

12. What Do You Do for Work?

The more obvious reason for asking about the applicant’s job is to gain some insight on how reliable they will be at paying rent. A tenant with a full-time, high-paying job ideally shouldn’t have trouble settling bills, but there may be some cause for concern if the tenant is a freelancer.

The less apparent reason is to help you figure out the potential behaviour of the applicant. If they are normally working the graveyard shift, it could be difficult to contact them. Someone who works from home may put your property through its paces much faster than someone who has to go to the office throughout the work week.

13. Do You Have Any Questions?

It’s good to remember that this process isn’t supposed to be an interrogation. It’s a conversation where both parties would like to come to an agreement and benefit from one another. By opening yourself up to their questions, you’re showing them that it won’t be a lopsided relationship and that you can be trusted to be transparent.

You’ve done the work – you’ve got the property. All that’s left to do now is fix it up and find your tenants.

Maybe you’re looking to improve the aesthetic appeal, increase the valuation, or just spruce up a space that wasn’t kept too tidy by previous owners.

In any case, renovations can easily add up if they’re not planned out efficiently. These projects are crucial to any landlord looking to maximise the value of their property, and can make all the difference when it comes to attracting prospective tenants.

We’ve broken down all the best ways to tackle renovating in a cost-effective, quality manner.

Plan, Plan, Plan

First things first – plan your steps. Set yourself a budget with a comprehensive plan of all the work you want to address to ensure nothing is forgotten or unaccounted for, and you won’t be tripped up by unexpected costs along the way.

With so many steps to proper renovations, it’s easy to start feeling overwhelmed. Having a to-do in front of you where you can check off tasks will help to break the process down and ease any potential stressors.

Take advantage of people in the know – reach out to a builder who can have a look over the property for you. Get your electronics and plumbing inspected so you can be sure there won’t be any problems once your tenants move in. Speak to an environmental housing officer to ensure the property complies with the proper regulations and standards.

Make sure to use tradespeople registered with the relevant trade body. It’ll make all the difference and prevent any angry calls from future tenants when they suddenly realise the hot water doesn’t work.

Having the property looked over will also give you the chance to make sure the fabric of the building is sound prior to decorating or adding any extra fittings.

Floors

When it comes to flooring, consistency is key.

Make sure your flooring is uniform throughout to create a seamless feel to the property. Matching the floors will bring everything together and bring a flow to the interior that prospective tenants will instantly notice.

Darker-coloured carpets have the benefit of longevity, as they won’t show dirt or stains easily. When it comes to the bathroom and kitchen, laminate flooring is a failsafe option that won’t break the bank, plus it’s easy to clean and often comes with a 10 year guarantee.

Walls

A lick of paint goes a long way – fresh-looking walls are cheap, cheerful, and will do wonders for a property’s valuation.

As with flooring, ensuring you use the same colour throughout each room will tie everything together and instantly up the appeal.

It can be tempting to put your stamp on a room and splash out with your favourite colour schemes, but it’s actually much more advisable to use a nice neutral tone that can complement a range of tastes. Resist the urge to personalise – leave the tenants to put their own (figurative) mark on the place.

Bathroom-wise, many landlords recommend using moisture-resistant paint to avoid mould and other issues caused by humidity and condensation. The English Housing Survey found mould to be one of the biggest issues tenants face with rental properties, so it’s important to keep moisture in mind when you’re renovating.

Bathroom

If you’re working with a lower budget, now is the time to invest. Scrimping on the bathroom will significantly impact your valuation, and potentially turn off tenants.

Keep the colour palette light and airy. Fresh tones and gleaming surfaces will never go out of fashion, but that doesn’t mean you can’t experiment – have a go at upcycling old furniture to create bespoke storage space, or try tiling the lower half of the walls to add some character.

White tiling with black grout is a simple and cost-effective way to add some edge to the room, and will set your property apart from the competition without sacrificing neutrality. Black grout also has the added bonus of being less susceptible to dirt and grime, so it’s a win-win for you and your tenants.

Kitchen

Similarly, the kitchen should be high on your list of priorities when it comes to budgeting. This is the space where your tenants will likely be spending substantial amounts of their time, so it’s important to create a nice environment – not to mention the impact it will make on the property’s market value.

Rentals often see cabinets and cupboards face significant wear and tear, so it’s worth assessing these areas when you’re getting ready for your next tenants.

If you’re replacing any units, or even doors, make sure to invest in good hinges – these are the parts that will see the most action, so it will be money well spent in the long term.

In terms of white goods, there are plenty of great second-hand deals to take advantage of on auction sites. Many are listed in near-new nick due to our upgrade-hungry culture.

When fitting in any new appliances, make sure the mechanics are well within reach. If anything goes wrong in the future, you’ll be grateful for the easy access.

Kerb Appeal

It can be easy to laser all your focus on the interior, but the exterior is just as important. First impressions are crucial – the outside is what tenants will be met with when they turn up for a viewing, so you want to be able to wow them before they even walk through the door.

A touch of nature is a simple and budget-friendly way to spruce up any entrance. Add some greenery with pots or hanging plants, or try planting flowers for a pop of colour.

Whatever you go for, there are plenty of low-maintenance options out there that will instantly breathe some life into the property and create a fresh, inviting look.

Another effort-free way to update the exterior is with a new coat of paint, both on the walls and the doors. The front door is especially important, as dirt or damage here can instantly create a feeling of unsafety in the minds of prospective tenants. Just give the surfaces a good clean and source some paint that can withstand any weather. 

If you’re lucky enough to have a back garden, installing a light or two can instantly boost your valuation. A few solar-panelled spotlights or even fairy lights can be fitted anywhere that receives sun without adding any ongoing costs to the tenants, which makes for a handy selling point.

Many solar lights also come equipped with a PIR sensor, adding some extra security at no additional cost.

Clean

Last step: clean. It might sound obvious, but ensuring your property is spotless is key to attracting tenants and securing a sale. A good scrub costs nothing – show off your revamp and make it sparkle.

Property investment has become a rapidly popular market, and ensuring you maximise on your investment by giving your home a decent renovation is crucial to standing out from the competition and reaping the proper rental rewards. Don’t be afraid to go for it – you’ll be grateful in the long run.

Being a landlord comes with its fair share of responsibilities – and one area that can feel especially daunting is property tax. Whether you’re just starting out with your first rental or managing a growing portfolio, navigating the UK’s tax system can be tricky. And with regulations evolving year to year, it’s essential to stay on top of your obligations to avoid penalties – and make the most of your investments.

This updated 2025 guide breaks down the key types of taxes landlords need to be aware of, highlights recent changes in legislation, and offers practical ways to manage your tax responsibilities more efficiently. If you’ve ever found yourself scratching your head over income tax or wondering whether you can claim that new boiler as an expense, you’re in the right place.

Understanding Your Tax Obligations as a Landlord

Let’s start with the basics. If you earn income from renting out property in the UK, you’re expected to declare that income and pay tax on any profits. For most landlords, the main taxes to be aware of include:

Income Tax: This is the tax you pay on rental profits – your rental income minus any allowable expenses. Your profits are added to your total income for the year, which means the tax rate you pay depends on which tax band you fall into. Many landlords, especially those with mortgages, benefit from understanding exactly what qualifies as an allowable expense – from letting agent fees to property repairs and even some travel costs.

Stamp Duty Land Tax (SDLT): If you’re purchasing a buy-to-let property in England or Northern Ireland, SDLT applies. In most cases, landlords will pay an extra 3% surcharge on top of the standard rates. The rules differ slightly in Scotland and Wales, where you’ll encounter LBTT (Land and Buildings Transaction Tax) and LTT (Land Transaction Tax), respectively.

Capital Gains Tax (CGT): This comes into play when you sell a rental property that’s increased in value. In 2025, the annual CGT exemption has been reduced further to £3,000, which means more landlords are likely to face a bill when they sell. Knowing how to factor in allowable costs – like solicitor fees, estate agent costs, and capital improvements – can help reduce the amount of tax due.

What’s Changed in 2025?

The property tax landscape has seen several key updates this year. Most notably, the annual CGT allowance has dropped again as part of broader efforts to rebalance personal tax reliefs. This means even modest capital gains could now push you into the tax net. It’s more important than ever to plan ahead if you’re considering selling a property.

Another shift that continues to affect landlords is the phased reduction of mortgage interest relief. Since the changes introduced in previous years, landlords can now only claim a 20% tax credit on mortgage interest, rather than deducting the full amount as an expense. This continues to impact higher-rate taxpayers most significantly, and it’s something many landlords are still adjusting to.

While there haven’t been major overhauls to SDLT or income tax thresholds in 2025, landlords should be aware that the government is reviewing tax incentives in the private rental sector, with potential changes on the horizon in future budgets. Staying informed and flexible is key.

Managing Your Tax More Efficiently

Tax doesn’t have to be a headache. With the right approach, there are plenty of ways to manage your obligations while making sure you’re not paying more than necessary.

Start by keeping clear and accurate records. This might sound obvious, but many landlords fall short when it comes to tracking expenses, logging repairs, or keeping digital copies of invoices. These small admin tasks can make a big difference when it comes to submitting your tax return and claiming allowable costs.

Understanding what you can claim as an expense is another valuable step. Common allowable expenses include general maintenance and repairs, council tax (if you pay it), insurance, letting agent fees, and certain utility bills. Capital improvements – like extensions or new kitchens – aren’t deductible against income tax, but they could reduce your CGT liability when you sell.

For landlords with multiple properties or more complex portfolios, tax planning becomes even more important. Some look at transferring ownership into a limited company, which can offer different tax advantages (though it’s not suitable for everyone). Others explore strategies like joint ownership with a spouse to take advantage of both partners’ tax allowances. These approaches can get technical quickly, which is where a good advisor comes in.

The Role of Accountants and Advisors

Tax is one area where expert support is often worth the investment. A qualified accountant or property tax advisor can help you stay compliant while making sure you’re not missing out on any reliefs or deductions.

If you’re unsure how to handle your rental accounts, or you’ve recently acquired a new property, reaching out to a professional can bring peace of mind. They’ll also be able to guide you through Making Tax Digital requirements, ensure your returns are submitted on time, and help with more strategic planning if you’re thinking of selling, expanding, or restructuring your portfolio.

How Hopewell Supports Landlords

At Hopewell, we understand the pressures landlords face – not just in managing tenancies and maintenance, but in keeping up with the ever-changing financial and legal landscape. That’s why we take a holistic approach to property management, helping landlords run their properties as efficiently – and profitably – as possible.

Our expert team can advise on best practices for managing tax-efficient properties, from identifying allowable costs to recommending when it might be worth consulting a specialist. We work closely with local accountants and advisors to ensure our landlords get the right guidance and stay ahead of any legislative changes. Whether you’re letting a single flat or managing a growing portfolio, we’re here to support you at every step.

Final Thoughts

Property tax may not be the most glamorous side of being a landlord, but it’s undoubtedly one of the most important. Staying informed, getting organised, and seeking the right advice can help you avoid costly mistakes – and make smarter decisions for your future.

If you’re looking for a partner who understands both the Bristol market and the needs of today’s landlords, get in touch with Hopewell. We’re here to help you maximise the return on your investment and take the stress out of property management.

The past decade has been rough for most sectors. But despite an EU exit, soaring inflation, and a pandemic, the UK’s Buy-To-Let property market continues to endure. The sector has grown by £215 billion over the past five years. Its total value now stands at £1.7 trillion.

Even with new Stamp Duty surcharges and decreased tax relief increasing the barrier to entry, a third of landlords are looking to acquire new assets within the next 12 months. The public sector has been pouring money into the space, investing £4.1bn in Build-To-Rent (BTR) ventures.

Those eager to get into the sector will find it lucrative. Yet many pitfalls still await first-time investors. To maximise long and short term returns, prospective landlords need an extensive knowledge of location, renting trends, and the legal responsibilities of owning a buy-to-let property.

Rental Preferences Are Shifting

One bedroom properties used to see the highest demand. However, rising property costs and soaring inflation are forcing prospective renters to adapt to save more. People are looking to split the bill, driving demand for properties with multiple bedrooms and Houses of Multiple Occupancy (HMOs).

Co-living is on the rise, especially amongst young professionals in dense and high-cost locations like London. “Compared to what else is on the market, it is affordable”, says one 25-year-old man who moved to London for work. 

Families are also struggling to get onto the property ladder, choosing to rent while waiting for more favourable housing conditions. These people want to raise families in larger spaces with a garden, a stand-in for their own dream home. Single-family houses rented 30 percent faster in 2020 than the previous year. In comparison, flats only leased 2 percent faster within the same period. “Houses in major cities are now being rented out more quickly than a year ago. In more cases flats are now taking longer to rent out,” says Gráinne Gilmore, head of research at listing platform Zoopla.

When looking for a property, consider these emerging preferences. Analysts predict that the majority of individuals will continue to face difficulties in purchasing property, their spending power capped by record-breaking petrol prices and high inflation.

Research Your Location

In the buy-to-let market, some areas are more lucrative than others. Ideally, prospective investors will want to buy in a region that shows strong long term growth in house pricing and short term profitability through rent rates.

It’s a balance that you’ll need to look into carefully. Liverpool has areas where rental yield can go as high as 8 percent, while some districts rate at lower than 3 percent. According to data from Aldmore Bank, Bristol is currently the most stable buy-to-let market, with less than 0.6 percent long-term property vacancies and over a quarter of its residents renting privately.

Bustling locales like London and Manchester are no longer the most viable locations at the top. Renters have set their sights further out into the suburbs and towns, the result of permanent changes to your average work week. Prospective landlords who follow price hikes will find places like Bolton, whose rising property costs, growing population, and relative distance to a major city is making an appealing investment alternative.

Beyond the growth statistics, prospective landlords should also take note of developments within an area. Are there any major businesses planning to open offices? Does the demographic consist mostly of young, single professionals who tend to move around, or families looking to settle down in the long-term? These factors will affect tenancy rates and let you anticipate and plan around potential void periods.

Corporate vs Personal Ownership

In recent years, the government has slowly been scaling back tax relief for landlords. Previously, landlords were able to expense mortgage interest. Now that that’s no longer the case, they can see their payables rise as relief is cut. Some are also looking at a higher tax bracket status, as they’ll need to declare income before mortgage payments.

Prospective landlords can circumvent these changes by registering as a limited company, as they only apply to privately owned properties. Landlords can still deduct mortgage interest from rental income as a business expense.

However, which setup will be more advantageous still depends on your overall rental yield. Mortgage interest is typically higher for buy-to-let properties registered under companies. Corporation tax is set at 19 percent, which can end up costing you more if you’re in a lower tax band. Running the business will also be more complex, as you’ll have to keep Company Accounts and deal with extra legal and accounting fees.

Climate Goals Push Stricter Energy Efficiency

Energy Performance Certificates (EPCs) assess a property’s energy efficiency. Properties are rated on a scale of A to G, with A being Very Energy Efficient and G being Not Energy Efficient.

In 2018, the introduction of the Minimum Energy Efficiency Requirements forced landlords of privately rented domestic properties to maintain a rating of E. Those who fail to meet the standard are restricted from letting.

In the beginning, the requirement only applied to new and renewal tenancies. Now the law applies to all existing tenancies. More importantly, the bar is set to be raised on acceptable efficiency levels. Starting 2025, new properties need to score a C, with all properties required to be a C or higher from 2028.

Most properties on the market come with an EPC. Prospective buyers will also be happy to find that a majority of modern homes are already compliant. Around 84 percent of all EPC ratings for new builds are A and B. As certifications are valid for ten years, landlords of newly built properties will have little to fret over beyond yearly maintenance to ensure the property stays efficient.

Older properties will require more due diligence. Before signing that deed, inspect the condition of electrical and heating systems. Costs can add up quickly between upgrading or adding insulation and replacing old boilers. Bringing a property up to spec may end up costing more than your budget allows.

Your Safety Responsibilities As A Landlord

As a landlord, it is your obligation to provide a safe home for tenants. And it’s not one to be taken lightly. Failure to comply can result in hefty fines, imprisonment, and loss of human life. 

Compliance means ensuring systems like fire alarms and gas appliances are regularly maintained. Gas Safety Certifications need to be renewed every 12 months. Fire alarm inspections need to be conducted every time a new tenancy begins. Landlords are also required to provide the alarms as well as fixtures such as fire extinguishers.

These measures aren’t free. Gas Safety Certifications can cost up to £150, depending on the number of gas appliances in a home. The law also mandates that electrical appliances can be used safely. Regulations don’t explicitly state how landlords should carry out these checks, so it will fall onto property owners to arrange checks by electricians. Prospecting buyers should factor in these costs and responsibilities when considering purchasing buy-to-let property.

Looking to expand your portfolio or purchase a property for the first time? At Hopewell, our expert letting agents can help you find properties that meet your requirements. Get in touch with us today to get started.

Letting property can be a very lucrative business. Landlords in the UK earn £15,000 on average. However, that’s before taxes and operating costs. Expenses from major repairs and sudden void periods can also cleave into your profit.

Maximising the income you take home from your rental property requires a bit of digging and meticulous planning. There are a few areas where enterprising landlords can cut costs and mitigate unexpected expenses.

Be Selective Of Tenants

For eager, first time buy-to-let owners or landlords looking to fill vacant properties, accepting tenants after the bare minimum background check can be tempting. But the folks you find may turn out to be more trouble than they’re worth.

Irresponsible tenants can cause damages beyond normal wear-and-tear, depreciating the value of a property and making it harder–and costlier–to fix the property for the next tenant. Tenants who also have a habit of paying rent late makes balancing your books more difficult.

Good tenants will take care of your property as if it were their own home. They’re also easier to communicate with about the status of the property, giving landlords visibility into issues that need attention before they cause major damage.

Don’t Skimp On Paintwork

Paint will cost you. Between the painter’s fee and the materials you can find yourself footing a £900 bill for a 40sqm flat. Some landlords try to knock a few pounds off by going for cheap paint by the bulk.

In the long run, that will actually cost you more. Paint isn’t just about aesthetics. Durable emulsion protects against mould. In the kitchen and bathroom, paint needs to contend with a daily onslaught of grease and steam. Cheap paint flakes and peels faster, so you’ll have to repaint more often.

You’ll also want to mix up the variety of paint you’ll use. Surfaces react differently to paint. Matching the material to the appropriate paint will improve the longevity of the paintwork.

As does the finish of the paint. Matte makes colours look thick and saturated, because the finish reflects little light. No gloss also makes it ideal for hiding little imperfections. However, matte is harder to clean, which means you’ll want to use it in low traffic rooms like bedrooms. A glossy finish is more durable and basically wipes clean–perfect for busy and messy rooms like kitchens and bathrooms. Varying the finish based on how much traffic a room gets will help you maximise every paint job.

Design for Energy Efficiency

Record high fuel costs are putting the pressure on tenants. Rent has also risen by 9.9 percent since last year, the fastest increase on record.  Around 65 percent worry about not being able to pay their energy bills. Yet while you can’t control fuel prices, landlords can still significantly ease the burden–and lower costs long term. 

Many rental properties aren’t designed for energy efficiency. Upgrades like additional insulation, smart metres, and modern boilers are expensive. It’s tempting to settle for the bare minimum. And many do, with 28 percent of renters saying they feel landlords don’t help manage energy use.

When tenants struggle to pay utilities, that means they also struggle to pay rent. Lower energy bills means a better ability to make rent. Plus, a cosy flat means happy tenants who’ll gladly renew the lease. Upgrading to an A grade boiler from old, lower-tier units can also help save money on repair and maintenance, a top cost for landlords in the UK.

Conduct Regular Property Inspections

In real estate, prevention is significantly cheaper than the cure. Leaking pipes and broken boilers can cost a lot to fix. 

Dropping by once or twice a year to check on the health of the property helps landlords spot issues before they become major repairs. Seemingly small problems like a chipped tile leaves the property vulnerable to rising damp. Leaky pipes cause penetrating damp from the outside. 

Both cause the growth of mould and mildew–and are totally preventable. Routine inspections catch these problems before they endanger the lives of tenants and cause significant damage to your walls and floors.

Keep A Detailed Inventory

Renters stay on a property for an average of 4.3 years. That’s a long time. It’s inevitable that some damage will happen to the property. But not all of those damages will fall under normal wear-and-tear.

Without records, charging these damages from the security deposit can be very difficult. Has that stain always been there? Was there always a rip in the carpet? Gaping holes in the wall and cigarette burns are hard to miss, but there are many little things that can go unnoticed–that’s money out of your own pocket for repairs that should be shouldered by tenants.

Taking inventory before tenancy gives landlords an accurate record of all the changes and damages that occur to the property. Make sure to be fastidious: list everything including light fixtures, appliances, and any existing marks or damages. A detailed inventory will be key for settling any disputes at the end of tenancy.

Maximise Void Periods

As the nation completely lifts all pandemic restrictions, a number of people are embracing their restored freedom with a change of location. Void periods in the South West rose from 18 to 26 days, the highest in any region. In other places like Greater London, the void period is also rising, albeit modestly at one day on average.

Empty properties can cost landlords around £800 per month. That’s a hefty sum that could go towards maintenance, refurbishing your property, or your bottomline instead. 

To minimise losses and keep overall costs down, landlords can look into monetising void properties. One way to do that is through short term letting. In London, which houses a considerable number of short-term lets, property owners switch between long term tenancies and short term stays to maximise profit.

Negotiate With Your Insurer

Insurance is a critical protection for landlords. Disasters like floods and fires can deal a huge, potentially fatal blow to your business. Paying for injuries and legal disputes out of pocket can also be devastating without coverage.

Yet just because insurance is a necessary evil doesn’t mean landlords can’t take steps to reduce premiums. While discounts vary from insurer to insurer, landlords can try negotiating for better deals.

Low vacancy rates and adding security devices to the property are just some ways to knock a few pounds off your premiums. Insurers are naturally risk-averse, and demonstrating due diligence when it comes to making sure a property is secure and profitable makes them more predisposed to grant discounts.

Take Advantage Of Tax Breaks

Even in the world of letting, only taxes are permanent. Many landlords dutifully file the paperwork, pay, and call it a day.

However, what some owners may not know is that they may be leaving money on the table by not taking a closer look. There are a handful of loopholes that let landlords claw back a significant chunk of their income.

One way to do that is by expensing upkeep costs against your taxes. Landlords are eligible to claim expenses spent on insurance, legal and accounting fees, and maintenance-related services like cleaners. You can also deduct money spent on advertising, including texts and calls made in relation to the property. If you own multiple properties, you can expense the cost of travelling between them.

Rental properties can generate considerable income. But they also come with a bevy of costs. Many, like insurance and routine maintenance, are unavoidable. However, with careful planning and diligence when it comes to maintenance, landlords can minimise their expenditures.

A fire in the home is a devastating event that can happen surprisingly easily. House fires claim the lives of over 200 people in the UK every year, with the majority of these fatalities taking place between 10pm and 6am, when people are asleep. During sleep, your sense of smell decreases to being almost non-existent, which is why people don’t realise they are in danger. 

According to Home Office statistics, there were 35,016 fires in homes in the UK during 2019/20. There are around 37,000 domestic fires every year, the majority of which – over 12,000 are caused by misuse of cooking appliances, for example cookers and toasters. Around 67% of accidental fires were caused by human error, such as out of control bonfires, careless cooking, negligent use of appliances and playing with fire, such as matches or lighters. A further 25% were caused by non-human factors like chimney fires, faulty electrical appliances, or faulty fuel supplies. In 2019/20 the daily rate of house fires was highest in April and lowest in August. 

If you are a residential landlord it’s vital that you are up to date on fire safety regulations to ensure that your tenants are safe and you are complying with the law. For example, do you know the rules around smoke alarms in rented properties? In September 2018, 38% of battery operated smoke alarms did not sound during a fire. The biggest cause? Disconnected, missing or flat batteries. It’s crucial to know what is your responsibility and what is the responsibility of your tenant. Read on to find out the fire safety regulations that every residential landlord needs to know.

What are a landlord’s fire safety responsibilities?

There are laws in place that are designed to ensure that you as a landlord are doing everything you can to prevent fires and protect your tenants. The specific responsibilities of a landlord include:

• Installing a smoke alarm in each storey of a property, as well as a carbon monoxide alarm in any room with a solid fuel burning appliance (for example, a wood burning stove)
• Ensuring there is access to escape routes at all times, and checking your tenants are doing the same
• Ensuring that all furniture and furnishings are fire safe
• Providing fire alarms and fire extinguishers in houses of multiple occupation (HMO)
• Ensuring there are no fire hazards near areas where fires may start (for example combustible materials should not be stored near boilers or other heat sources)
• Make sure all appliances have an annual Portable Appliance Test (PAT)
• Check all appliances have a British or European safety mark
• Check for labels on appliances and furnitures that manufacturers are legally required to supply stating they are fire safe

What are the fire safety laws for rented properties?

The fire safety laws for rented properties are laid out in various Acts that every landlord needs to be familiar with. These are the key laws you must follow:

1. The Housing Act 2004, including Housing Health and Safety Rating System (HHSRS)

This Housing Act 2004 and HHSRS lay out the main requirements of fire safety in a rented home. The rules include ensuring that tenants are able to escape the property in the event of a fire, and making sure that repairs to the fabric of the property, such as walls and ceilings, are done in a timely manner so that fire is unable to easily spread to other rooms.

2. Furniture and Furnishings (Fire Safety) Regulations 1988/1989, 1993 and 2000

If you have a furnished property or intend to furnish one before renting it out, you need to ensure that the furnishings are safe and follow these specific regulations. They apply to all items that are upholstered or contain upholstery, including sofa, armchairs, mattresses, sofa beds, curtains and cushions. Read the Act in full for specific information on how to ensure your furniture and furnishings are fire-safe.

3. The Regulatory Reform (Fire Safety) Order (2005)

This act covers fire safety in buildings that have communal areas, such as blocks of flats and HMOs. Hallways, stairwells or shared spaces such as kitchens and living rooms provide specific fire risks.

4. The Smoke and Carbon Monoxide Alarm (England) Regulations 2015

These regulations set out the requirements for landlords to ensure that warning systems are in place to warn tenants in the event of a fire. They outline what is expected in terms of smoke alarms and carbon monoxide alarms, and set out the hefty fines you could receive if you are in breach of the rules. The rules vary between different countries in the UK, so be sure to check with your local authority if you are unsure.

5. Building Regulations

Building regulations impact on fire safety. This is especially important if you are refurbishing a property before letting it out, as it must follow the latest rules and regulations. The work must meet the standards for letting a property, which are different to those of a property you live in yourself. Houses of Multiple Occupancy have different rules from regular tenanted properties, even if they are unlicensed. You should check with your local authority to find out the exact rules, as they can vary from one area to another.

Once you know the rules, they need to be enforced. The best way to do this is to carry out regular inspections, either yourself as a landlord or via a trusted letting agent, to make sure that your tenants are sticking to the rules and haven’t moved furniture around and blocked safety exits.  

You should also make sure you have a comprehensive inventory that notes all of the furniture you put in the building. During inspections you can check that your tenant hasn’t removed fire safety labels or replaced items for non-fire safe ones without you knowing. As well as ensuring that you are legally covered when it comes to the rules and regulations, this will also allow you to make sure that your tenants are safe and happy in their home.