Tag: Long Term Letting

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How To Attract Long-Term Tenants

long-term tenants

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.

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Long Term vs Short Term Lets: What’s the Difference?

As a buy-to-let landlord, one of the key decisions you’ll have to make is whether to let your property long-term or short-term. 

Profit, of course, is the factor that drives this decision. However, calculating which type of letting will be more profitable is a bit more complicated than just looking at the average earnings of long-term and short-term rentals.

The revenue a property will generate is dictated by unique factors such as location. Your own needs and capacities as a landlord will also factor into how you’ll lease out your property. Short-term and long-term lets both have pros and cons that will make each type more or less suitable for your investment portfolio.

To help you decide which one is right for you, let’s first break down the advantages between short, medium, and long term lets.

What Is A Short-Term Let?

A short-term let is a property that is rented out to tenants for a period of ninety nights or less. The period can vary based on local council regulations. The only area with a hard limit is London, which caps short-term lets at ninety calendar nights a year. These types of properties usually cater to holiday makers.

Advantages

Higher Profit

It’s not hard to see why more than 2.7 percent of the UK’s landlords have moved to the short-term letting market. The rapid growth of platforms like AirBnB and Booking.com is proof enough there’s serious money to be made in these lets. Properties can earn thrice as much when leased for the short-term.

Flexibility

Short let properties give you tighter control over who leases your property and void periods. This ability will be especially appealing for landlords who are letting holiday homes they plan to occupy themselves during certain parts of the year.

Faster Tenant Turnovers

Difficult tenants are a landlord’s worst nightmare. In London, rogue tenants can leave behind an average of £41,358 in damages. With short-term lets, getting stuck with a bad tenant is less of an issue. Even if you do find yourself with a difficult tenant, you’re won’t be legally bound to put up with them for more than a few weeks or days.

Disadvantages

Unpredictability

Short-term lets pay out more per day. However, the trade-off for such high yields is stability. You may find yourself in prolonged void periods, especially if your rental is in a holiday destination where demand is seasonal.

Higher Maintenance Costs

Holiday makers may not be the most conscientious tenants. As they’re only residing in a property for a few weeks–even days–they may not be as careful with your facilities as long-term tenants. Faster turnover also means your rental will need to be cleaned and checked for damages more frequently.

Requires More Effort To Manage

Landlords of short let properties will constantly be managing the flow of tenants. You’ll either find yourself fielding questions about the property, or assisting current guests. Landlords managing multiple properties or who buy-to-let for passive income while working a full job may struggle to give tenants the attention they require.

What Is A Medium-Term Let?

Medium-term lets are a happy middle ground for landlords. Like short lets, medium lets are fully furnished and have utility bills baked into the rates. These homes are ideal for professionals looking for accommodations while on temporary work assignments, or families who are renovating their homes and need a place to stay in the interim.

Advantage

Flexible Yet More Manageable

Medium lets are ideal for landlords who want to reap higher yields and while minimising maintenance duties from quick turnovers. The tenancy duration of a medium let can last anywhere from a month to 8 months.

Disadvantage

Smaller Demand

Short lets have holiday makers and weekend warriors, and long lets have families looking to settle down. Looking for tenants for a medium let is trickier. The variability of the tenancy periods and demand can make it difficult to effectively plan against vacancies.

What Is A Long-Term Let?

Long-term lets are properties that are rented out for longer than 6 months, although typically landlords set the minimum lease period to a year. Long-term letting is the traditional model in the buy-to-let industry, and attracts families and individuals looking to put down their roots.

Advantages

Steady Source Of Income

Stability has always been the main draw of long-term lets, making it ideal for landlords working full time elsewhere. On average, private renters live in homes for 4.3 years. Given a healthy portfolio of long-term lets, landlords can establish a very lucrative source of passive income. Landlords won’t have to chase after payment, as these are required to be taken by standing order at a set date every month.

Takes Less Effort

With long-term lets, much of the daily maintenance and upkeep falls to the tenant. Barring any major repairs for structural damage and wear and tear, it’s up to renters to keep the property clean and livable. Landlords also won’t have to communicate with a stream of changing guests.

Easier To Secure Financing

If you’re planning to take out a mortgage for a buy-to-let property, the only choice you may have will be to rent it out long-term. Because of their riskier and less stable nature, many lenders still hesitate to approve loans for short-term lets. Some banks consider listing a property on AirBnb a breach of contract for residential mortgages.

Disadvantages

Lower Yield

Once the i’s have been dotted and the t’s have been crossed, rates are locked in place for the rest of the lease period. You’ll be unable to increase rent even if market rates rise in your area. Rates are also simply lower for long-term lets, 

Risk Of Bad Tenants

Long-term contracts will be hard to break. The process of evicting a difficult client can also be a drawn out and expensive affair. Even tenants who refuse to pay rent can take months to legally remove from a property; you’ll be paying mortgage and utilities in the meantime.

More Paperwork

Individuals and entire families call long-term lets home for years. Landlords of these properties are bound by more regulations that were established to protect the safety of both tenants and landlords. Legally, landlords must pass inspections, secure certain safety certificates, and register a tenant’s deposit under one of the government’s approved schemes.

Across the UK, rental rates continue to rise for short-term and long-term lets alike. Landlords can further capitalise on the industry’s growth and maximise their profit by choosing the rental property that fits their needs and capabilities.

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Property Jargon Busters: Top 12 terms you should know!

Property

Are you looking to rent or become a landlord and are having difficulty understanding the property expert jargon? If you’re finding yourselves overwhelmed or confused by the terminology, and are struggling to move forward with your move or purchase, then take a look at our jargon breakdown for some helpful information on some keywords. 

HMO 

This initialism stands for ‘House in Multiple Occupation’ and is sometimes  referred to as a ‘House Share’. This is when three or more people, who are not from the same household, live in one property and share facilities such as kitchens, bathrooms and communal areas. 

HMOs are popular amongst University students and can also be regularly occupied by young professionals looking for somewhere cost-effective to live after leaving home or University.

PCM and PW

PCM stands for ‘Per Calendar Month’. This can be in reference to rent, which will be paid to the landlord or Letting agent monthly. This is the most standard practice when it comes to rent payments, bills and other contractual obligations. Similar to this, you may also have come across PW which means ‘Per Week’. 

STC 

While house hunting you may have come across STC, but what does this mean? Once the property owner has accepted an offer , the property will be moved to the sold ‘subject to contact’ status, meaning that the property owner is awaiting legally binding contracts to be signed and returned by the potential buyer. At this stage, the property will be close to being removed from the market. However, if for any reason the contracts cannot be completed, the sale will fall through and the property may go back to the market, allowing other potential buyers to view the property and make an offer. 

Assured shorthold tenancy

An Assured Shorthold Tenancy (or AST) is an agreement between a tenant and landlord in which the tenant is given security of tenure for an agreed length of time, usually 6-12 months. Since being introduced by the Housing Act in 1988, it is now a default and applies to most tenancy agreements in England and Wales used by Private Landlords and Letting Agents. 

A key feature of an AST agreement is that using sections 21 of the Housing Act 1988, Landlords can evict tenants without reason; However this may be changing soon due to government changes to the private rented sector. 

Short Lets 

You may have seen on our own website or through our social media, that we often use the term Short Lets. This is an abbreviation for ‘Short Term Lettings’ and can refer to any property we have available to rent for as little as one day, to one month. If you think of Airbnb, where you might go to search for weekend breaks or city escapes, these will most likely be Short Term Lets. 

Long Lets

Long Lets is an abbreviation for ‘Long Term Lettings’ and quite literally is for people who are looking to rent for a longer term. Our Long Term Lettings will be properties that we are offered on either 6 or 12-month AST contracts. If you are looking for somewhere to live permanently, then these are the properties you will want to search for. 

Mid Term 

Although other letting agents offer Medium Term Lettings which can be contracts of three to eight months, our ‘Mid Term’ Lets are a bit different here at Hopewell. With our Medium or ‘Mid Term’ Lettings, we offer fully furnished properties that are available to rent on a month-by-month basis, with all bills included in the price. 

These properties offer more flexible terms and are perfect for people who need temporary accommodation either between homes, for ongoing home renovations, or are visiting the area for a longer period and would prefer not to live out of a hotel. 

To Let 

When a new property comes onto the rental market, it will be listed with the ‘To Let’ status. This means the property is available for viewings and to accept offers. 

Let Agreed 

Once a property has an offer accepted, the agent will change the property listing to a ‘Let Agreed’ status. Similar to STC, the property is close to being removed from the market, but it hasn’t received all the necessary documents to finalise the tenancy. If the documents and contracts needed to finalise the tenancy aren’t received by the agent, then the property could be reverted back to the ‘To Let’ status, opening it up to new viewings and offers. 

If you see a property you like and it is under ‘Let Agreed’, it might still be worth saving the property. If the tenancy is finalised, the property will then become unavailable, as it will have been removed from the market. 

Property Manager 

Property Managers deal with the day to day of properties within our short or long term portfolios. Our team of expert property managers are here to help our tenants and landlords with whatever issues or questions the property may incur. When you stay in a ‘Managed Property’, all correspondence regarding the property will go through our Property Managers and they will be your first port of call. From listing the property, arranging viewings, and managing cleaning and repairs, our Property Managers are here to ensure both landlords and tenants have the best experience possible. 

Landlord 

A landlord is a person who owns the property and allows others to use it in exchange for payment. If you are looking to rent and are going through an agency, then the likelihood of you meeting your landlord during the renting process is slim. However, if your property is not managed by the agency you have rented through, then your landlord will be your first port of call when something needs addressing in or with your property. 

If your property is managed by your letting agent, then all communication between the landlord and tenant will go through the agency, meaning you will contact your Property Manager for any faults, fixes, or queries you may have. 

Tenant

A tenant is a person who rents and occupies a property that is owned by a landlord. 

Is there still some property jargon we haven’t quite cleared up for you? Feel free to tweet us @hopewellbristol and we’ll be happy to help! 



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13 Questions You Should Ask When Screening Tenants

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.

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Top 5 Things To Know About Bristol

View over Bristol Harbourside during balloon fest

Are you new to living in Bristol? Or are you looking to relocate to the city? There are many wonderful things to know about Bristol – which we’re sure even the born and bred Bristolians won’t know! All of which are great reasons to want to make the big move. See why people love living in this part of the South-West and why they end up staying for life. 

Location

Firstly, it’s undeniable that Bristol is in a great location. Close to Cardiff, Bath, Swindon and just 120 miles from London. Positioned on the M4 corridor, Bristol has terrific travel links by both car and train. Whether you’re a professional or a student, there are many benefits to being located in Bristol, and easy travel access can bring beneficial opportunities.

Being the largest city in the South West and home to two Universities – The University of Bristol and UWE – this often makes Bristol a hub for many events and activities, from festivals and parades, to corporate events. There is always something going on for everyone. 

Work 

Named one of the happiest places to work in the UK, Bristol is said to be a big city with a small-town community. The working culture in Bristol has been influenced by the modern hybrid working styles popular in London, which have grown nationwide in recent years. With multiple coworking spaces and many companies now offering hybrid opportunities, it offers more comfort and flexibility for employees, which can improve their overall wellbeing. 

Bristol is also a huge hub of creative industries, with them being one of the key building blocks of Bristol’s modern economy. This could play a big part in Bristol being such a happy place to work, as people in creative positions claim to be the happiest at work! 

Sustainable 

If you’re an eco-warrior and love all things green, then Bristol might just be the perfect fit for you! In recent years, Bristol has been crowned the greenest city in the UK, scoring the highest for recycling and air quality and awarded the Green Capital Award in 2015. Bristol has long been a centre of alternative living and was ranked as the vegan capital of the world, according to Chef’s Pencil. 

Bristol is a Fairtrade city, trading fairly with nearly five million workers in 58 developing countries. It was also the UK’s first cycling city, being the first to receive government funding, pledging to double the number of people biking on its streets over three years. 

Culture

Bristol is a bustling multicultural city, which embraces multiple different cultures, religions and values. In 2019, Bristol has named the best place to live for under 26’s outside of London, after being recognised for being ranked highly for many factors from mental health and wellbeing to music events, sports facilities, and even 4G strength. It has also been named the kindest city in the UK, and the most artistic city in the UK. 

History 

Bristol is an interesting place and always has something wonderful going on, which is well reflected in the city’s history! For example, did you know that from 2012 – to 2021, the city had its own currency? And until 1840 Bristol had its time zone which ran 10 minutes behind London. 

As well as these, the city holds many other wonderful historic facts. The dark fruity drink Ribena was invented in Bristol in 1933 by a University of Bristol scientist, which grew in popularity during the war as an alternative source of vitamin C. Bristol Zoo, which is due to move from its famous location, is the fifth oldest zoo in the world! And the first-ever bungee jump took place on the 1st of April in 1979, from the Clifton Suspension Bridge. 

Looking to make the move to the big city? Visit our website to see how we can help you find your perfect property. Or contact our team at hello@hopewell.co.uk for more info!