Tag: Property Landlord

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The Benefits of Tenants Insurance

Tenants insurance

When renting a property the last thing tenants think of is taking out tenants insurance.

For many tenants, when they think about issues that may arise at their rental property they assume that resolving and/or fixing these issues is solely the landlord’s responsibility. However, this is a myth. 

It is a landlord’s responsibility to insure their property and take care of the bricks and mortar, but they aren’t responsible for insuring your belongings. Therefore, it is a tenant’s duty, if they wish, to ensure their possessions are protected against loss, damage, or theft.

Below we explain what tenants insurance is and the benefits of taking out this type of coverage.

Do you need insurance?

It isn’t often a requirement but you may find that your tenancy agreement states that having this type of cover is mandatory. Make sure you read through your agreement thoroughly and comply with your landlord or lettings agency. Failure to do so could result in you being in breach of your tenancy agreement.

Having insurance can also give you peace of mind. Losing your possessions to fire, flooding, or burglary can be devastating. By taking out contents insurance you can rest assured that if you were to lose anything it can be replaced and it isn’t you that has to take the full financial blow.

The cost of having to replace even a few items can quickly add up. By paying a small monthly fee for insurance, you could end up saving yourself a lot of money should the unforeseen happen.

So, what’s covered in tenants insurance?

Tenants insurance will cover the majority of your belongings in the event of flooding, fire, theft, or accidental damage. However, many policies also cover the following:

  • Furnishings and appliances that belong to the tenant
  • The loss or theft of keys to the property and the cost of having an alarm system fitted and locks changed
  • Any cash of credit cards stolen from the property
  • A set amount to cover spoilt frozen food as a result of an incident such as a powercut
  • Accidental damages to electrical items, such as TVs, tablets, and phones
  • Alternative accommodation if an incident such as a flood or fire causes the tenant to move out for a period of time

It could also be worth getting accidental damage insurance if you are renting, which can also be called tenants liability cover or tenants’ contents policies. This covers accidental damages to your landlord’s property/its funishings, for example spilling wine on the carpet.

Liability cover can also pay out for some of the most common reasons a landlord may deduct money from your deposit. Your landlord will expect the property and what is within the property to remain in good condition, however, accidents happen and this is when having liability insurance can come in handy.

It is worth noting that liability insurance will not cover damages that are caused by wear and tear or anything that has been damaged on purpose by you, your housemates, or guests.

Can I get insurance as a student?

If you’re heading off to university, you may want to protect your belongings, which you can do through students’ contents insurance. There are many policies out there but before you decide on one there are a few things you should check. For example, you may be covered by your parent’s home insurance, or if you are living in student halls, contents insurance may be included in your accommodation costs.

In summary

It is important to remember that even though you are renting from a landlord or lettings agency, it is not their responsibility to insure your belongings. Protecting them against unforeseen events such as flooding, fire, or theft is up to you. And if you are already considering taking out tenants’ insurance, it may be worth adding on liability insurance to cover the cost of any accidental damages that may occur throughout your tenancy. Top tip; remember to report or note down any damages that occur, whether caused by you or someone else, as soon as possible.

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Keeping Rentals Energy Efficient

energy efficient

As the cost of living rises and the current climate crisis becomes increasingly apparent, energy efficiency finds itself at the forefront of many conversations. Following a dramatic increase in energy bills up and down the country, homeowners, landlords and tenants are tightening their purses and keeping their eyes peeled for viable solutions.

That said, an ear to the ground isn’t always enough and a proactive approach to energy management is often most effective. In the following article, we’ll explore the ins and outs of energy efficiency, discussing why it matters and explaining how to stay one step ahead as a landlord.

What Do We Mean By Energy Efficient?

Before we jump into the specifics of energy management, it’s worth understanding what we mean by ‘efficiency’. In Layman’s terms, energy efficiency refers to an appliance or property’s ability to achieve a desired result without using unnecessary power or waste. For example, a well-insulated home will maintain a comfortable temperature without the need for excessive heating or cooling devices.

In order to quantify a property’s efficiency, Energy Performance Certificates (EPCs) are used. By grading a building from A to G, EPCs allow landlords and tenants to better understand the efficiency of their property. Properties with an EPC rating of ‘A’ are likely to attract far more tenants than those with lower ratings, implying that both bills and carbon footprints will be lower.

Why Does Energy Efficiency Matter?

So, why is energy efficiency so important? As mentioned above, inefficient energy usage leads to greater carbon emissions, higher bills and environmental damage. This is bad news for the natural world as well as your wallet. The good news, however, is that ensuring residential homes are operating efficiently can work to negate these effects; even the smallest changes can have a significant impact when implemented on a global scale.

Improving the energy efficiency of a rental property may seem like an impossible task but, with the right knowledge, homeowners, tenants and landlords could save themselves hundreds of pounds every year.

Improving Your Property’s Energy Efficiency

From long term lets to HMOs and student tenancies, managing property can feel a little like navigating a minefield at times. As a landlord, however, it is well-worth taking the time to make sure your premises are as energy efficient as possible. This will help to attract prospective tenants and reduce unnecessary outgoings.

Below, we’ll run through a few tried and tested ways to keep your rental property energy efficient.

Lower Your Boiler’s Flow Temperature

As it stands, heating bills place a real strain on landlords and tenants’ wallets. That said, a comfortable home and low heating bills needn’t be mutually exclusive. By lowering the flow temperature of your boiler by just one or two degrees, tenants could experience savings of around 10% on their heating bills, without sacrificing warmth during the colder months.

Let It Breathe

To maximise airflow and ensure that you’re getting the most out of your radiators and heating systems, it’s important to check that they’re not covered or blocked. Placing sofas or large furniture in front of a radiator may keep your back warm, but it means that your system will be working twice as hard to heat the rest of your home. By keeping radiators clutter-free, a property will circulate heat far more efficiently.

Upgrade Your Insulation

It is worth noting that lowering the thermostat and unblocking radiators is only as effective as your home’s insulation. If heat is escaping through poorly insulated walls, roofing or windows, your heating bills will certainly reflect this.

Loft, wall and window insulation should be the first ports of call, but there are plenty of ways to reduce heat loss and improve a property’s energy efficiency without breaking the bank. Draught excluders, carpets and curtains are just a few tried and tested means of improving a building’s insulation.

Switch Them Off, Or Switch Them Out

From televisions and computers to desk lamps and kettles, our homes are full of electrical devices, all of which use energy. It is worth thinking about the efficiency of these appliances and whether more efficient alternatives are available. For example, switching traditional bulbs for LED equivalents can reduce electricity usage by up to 80%. That’s good news for landlords and tenants alike, improving efficiency and lowering bills.

To ensure your property is the best it can be, why not employ the expertise of a property management service such as ourselves? We take care to fully understand the requirements of each of our clients and offer a range of packages tailored to suit your needs.

Get in touch to speak with an advisor today.

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7 Landlord-Approved Hacks To Decorate a Rental Home

Decorate home, funiture, plants,

Your home is an extension of who you are. The choice of paint, trim, and decorations are all reflective of a homeowner’s personality. 

Unless, of course, you’re living in a rental home. There’s considerably less freedom to customise when you’re living in a let. Most agreements prohibit tenants from making major changes or drilling holes through the wall. And there is some decor that even the strongest adhesive can’t hold up.

But that doesn’t mean you can’t decorate and have to settle for dull and drab. Here are 7 renter-friendly hacks for bringing your rental home a little closer to the Pinterest home of your dreams.

Decorate Your Floors

When you enter a room, the first thing you notice is typically the wall decor–maybe it’s a bold and brash painting, or an intricate work of macrame art. Or perhaps an ostentatious piece of furniture that draws your eye first, big and commanding in the middle of a room.

Walls and furniture often take centre stage because tenants gloss over flooring. Yet floors are as much of a blank canvas as your walls. And there are many ways to bring it to life–without using a drop of paint or leaving behind residue that’ll break your tenancy agreement.

Rugs and runners come in different shapes, sizes, and materials. If you’re on a budget–and large area rugs can get expensive fast–you can layer several smaller pieces to add character to your plain floors.

Add Depth With Floating Shelves

Just because you’re renting doesn’t mean you can’t decorate and walls have to be kept bare. While drilling is prohibited for many lets, you can get around the restriction with floating shelves. 

Many floating shelves can be affixed using a strong adhesive, which kits should already come with. You can even install shelves with exposed brackets. Normally you’d need screws to mount these, but non-damaging adhesive wall screws can do the job as well without making holes.

These renter-friendly fixtures are usually decorative and can only bear the load of a few ornaments. But that’s okay. Like rugs, you can stagger floating shelves in different configurations to maximise the available space.

Decorate with Your Memories

Removable wallpaper can still feel like too pricey of a job for renters, especially if you’re only staying for a short period of time. It also doesn’t stick as well on textured walls, like brick. Depending on the quality of the panels, you might end up with wallpaper that leaches toxic materials, or are fire hazards.

A safer and more affordable way to spruce up walls without repainting or covering the whole thing up with wallpaper is through collages. Lain out gallery-style, photo walls add a nice personal touch to your space. Check out some affordable tricks to bring your own photography into your home.

You don’t need frames if you don’t have them. Neither will you need nails. Using bare photos gives wall collages an eclectic and crafty vibe. Plus, card stock weighs next to nothing and can easily be mounted using removable adhesive like Blu Tack.

Small Touches, Big Impact

When you decorate a space, it can be easy to get lost in the big projects like installing wallpaper or swapping out furniture pieces. But in interior design, even the more understated elements of a space go a long way in tying an aesthetic together.

Some effortless ways to bring your personality to your home without breaking the bank: throw pillows, curtains, and couch blankets. Curtains are relatively easy to install, and come in a limitless array of designs. Throw pillows make even old and generic sofas look cosier. Drape a blanket over it, and it’ll look like a piece straight out of a lifestyle magazine.

Ornaments are also key for curating the essence of your chosen aesthetic, whether it’s the free-spirit of boho or the edge of industrial. Place knick knacks strategically on coffee tables and end tables. Take photos and keep an inventory of existing decor so you can stay on-theme when you shop for new items.

Clever Small Space Solutions

Without the ability to add built-in closets or overhead cabinets, renters have limited storage to work with. Fortunately, you can carve out a lot of new space in your small flat with a little bit of creativity. 

Position furniture at an angle near the corners of your room. Use the space behind it to store organisers and boxes. Use multipurpose furniture, like coffee tables and ottomans that double as storage spaces. Skirted tables look good, let you cover a table you may not like, and give you an accessible space for stashing your stuff. If your closet’s starting to clutter, freestanding rails will make your flat look like a high-end boutique while giving you more room for next season’s outfits.

If you’re fond of having friends over, small flats can feel limiting. But with convertible and expandable furniture, you can entertain groups without having to buy large tables or more seating. Nested tables offer more dining space. Convertible sectionals can transform your living room into a guest bedroom when needed.

Open Up Spaces With Mirrors

Walls can make a space feel claustrophobic, especially when it’s found between two open areas, like your living room and kitchen. Homeowners typically deal with that problem by knocking it down.

Unfortunately, a major remodelling project is not an option if you’re renting, but what you can do instead is play with mirrors. Mirrors, when placed strategically, can create the illusion of space and make rooms seem bigger and brighter.

If making things bigger than they appear is the goal, choose oversized mirrors with simple frames. Ornate frames can make a space look more cluttered. Place them at eye level and near light sources like windows and lamps; the reflections will give the room an airy, spacious vibe.

Illuminate With Chic Lighting

Stock lighting for lets is often–to put it simply–hideous. Many landlords don’t put much thought into lighting beyond basic ceiling lights. Many renters accept it as part of living in a rental because contracts often prohibit rewiring.

Yet there’s a world of possibility between the unsightly bulbs your flat comes with and the elaborate fixtures you see on Pinterest. Renters can revamp and light up a room without picking up a single tool. 

Floor lamps are both functional and decorative. If you’re limited on floor space, consider tucking them neatly against corners to brighten the perimeter of a room. You can also place small lamps on your shelves and end tables to chase away dark spots and create cosier task areas for work or study. If lamps are too much for your decorating budget, you can get creative with cheaper fairy lights and plug-in lights. For ugly ceiling lights, out of sight is out of mind–especially with beautiful DIY lampshades and covers.

As limiting as your landlord–and budget–can be, you can still make a rental home feel like your own. All it takes is a little time, creativity, and clever placement.

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How to Make Your Rented Space Feel Like Home

Over the last few years the majority of us spent more time at home, giving many time to rethink their home decor and getting their DIY on. But for those who live in a rented space it can be difficult to put your stamp on it and create somewhere that really feels like your home. 

Below are some tips on how to make a rented space feel like yours without breaking the bank or the terms within your contract.

Fill the space with plants

Purchasing plants and flowers to fill your space is a great way to make it feel more homely. Not only do plants look great, but they also help to clean the air and remove toxins. There are some beautiful plant shops within Bristol, check out Fancy Plants, Sprouts of Bristol, Mila, and Bush Bristol.

Having the colour green in your home is also proven to promote feelings of peace, relaxation, growth and can help with stress relief. Discover more about introducing shades of green into your home here.

No good at keeping plants alive? Check out this list of hard to kill plants.

Buy soft furnishings

Another quick way to create a homely vibe within your space is through comfy cushions and cosy throws! There are so many colours, fabrics and textures to choose from, so even if you are playing with neutral tones or bright pops of colour that may already be within the rental space, the possibilities are endless.

You can pick up great cushions and throws from most supermarket home aisles, or shops such as Dulemn, Homesense and Ikea.

Artwork

Picking up a few prints is a great way to transform a space, add colour and personality to a room. If you’re worried about putting holes into the wall try using Command Strips or place pictures and frames on side tables, dressers, shelving units or even on the floor if you have a larger piece.

Lighting

Having too much light in a room can make it feel oversaturated, but too little light and the space can feel gloomy. Even the best-styled room can look flat if the lighting is inadequate. Try a mix of floor lamps, table lamps and even candles to transform a space or adding different types of bulbs to existing light fixtures.

Mirrors are also perfect for reflecting natural light around a room, this is great for smaller spaces and can make them feel brighter and airy.

Accessorise!

Accessorising is a quick way to transform any room, space or corner. This could be through soft furnishings, candles, photos, vases, decorative accessories or rugs. There are some great independent shops in Bristol where you can buy beautiful home accessories such as Mon Pote and Fig1.

Or check out a local charity shop or vintage store to pick up some quirky, budget friendly home accessories.

Photo: Mon Pote

Get creative with storage

Rental properties can often lack storage, especially if it’s a studio or small flat/apartment. This can lead to clutter and make a space feel smaller, but you can quickly improve this by purchasing storage furniture, using nice looking storage boxes as side tables, hooks for the back of doors, or getting decent underbed storage or wardrobe organisers.

Get painting

Another great way to transform a room is by painting it a different colour, it can do wonders! If you’re dealing with a small space, try using lighter shades, if it’s a large room, have fun and choose a bright colour or darker shades for optimal cosy vibes.

However, if your landlord isn’t keen on the idea of you painting the walls, switch things up and paint a few items of your furniture in accent colours to help make a room pop!

So, there you have it, our top tips on making any rental space feel more like yours. The space you live in should feel like home as much as possible, no matter if it is your own property or not and this can be achieved by implementing a few of the above tips.

If you are currently looking for your next rental, whether this is mid-term or long-term, get in touch or check out our current properties over on our website.

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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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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! 

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A Guide to Property Tax for Landlords

Property tax…lets talk about it…

Most people purchase a buy-to-let property because they want to make an investment. While the return is likely to be good, either through the money you make in rent or when you sell the property later, it’s important to know that you will need to pay tax at every stage of your investment. This will be when you pay for the property, when you rent out the property, and when you decide to sell it. In this guide, we’ll look at the different types of property tax landlords pay and what can be done to minimise the amount.

What Property tax do Landlords Pay?

Unless they are a first time buyer, or the property is below a certain value, everyone is liable to pay a tax, known as stamp duty when purchasing a house. If the property isn’t your primary residence, you are also liable to taxation on the rental profits as part of your income tax, as well as any increase in the value of the property over the time that you own it, which is called capital gains tax.

In England and Northern Ireland, you don’t pay any tax on the first £125,000 of the purchase price of your primary residence. In Scotland the limit is £145,000, and in Wales it is £180,000. However, if you’re purchasing a buy-to-let property in England, you have to pay a 3% tax rate on top if it costs more than £40,000, which rises to 4% in Scotland and Wales.

Income Tax on Rented Property

When you rent your property out to a tenant, you must pay property tax on any profit you make from the rental income that isn’t covered by your personal allowance. The current personal allowance, which will stay the same until the 2025-26 tax year, is £12,570.

As well as covering profit made from rent money paid by your tenants, rental income also includes money made from sources such as utility costs, cleaning fees for communal spaces, and parking fees. If you own more than one property you can combine all rental receipts and expenses together, which allows you to claim one property’s expenses against another’s income. The exception to this is any property owned overseas, which will usually be reported separately as foreign income.

As with self-employed people, landlords are entitled to certain tax relief measures in the form of allowable expenses, for example paying letting agent fees. The following expenses can be deducted from a rental income, as long as they were incurred wholly and exclusively from the rental of a property:

  • Insurance, including landlord insurance
  • Property maintenance and repair bills
  • Council tax and water rates
  • Utilities such as gas and electricity
  • Letting agent fees
  • Accountant’s fees
  • Legal fees for lets less than one year old 
  • Legal fees for renewing a lease less than 50 years old
  • Household costs (eg. phone calls, stationary, fees for advertising a property)
  • Vehicle running costs for trips related solely for your rental business

The following expenses cannot be included:

  • The full amount of mortgage repayments on the property
  • Home improvement costs
  • Clothing
  • Personal expenses
  • Private phone calls unrelated to your rental business

Make sure you keep copies of receipts for all of the expenses that you claim. HMRC has the right to demand to see proof of expenses for up to six years after you claim them, so ensure you keep them safe or scan them and store them digitally.

Landlord Mortgage Interest Tax Relief Explained

It used to be the case that landlords used to be able to deduct the interest they paid on mortgage repayments as part of their tax relief. However, since April 2020 this is no longer the case. Instead, landlords receive a tax-credit, which is based on 20% of their mortgage interest payments. This is less generous for higher or additional rate payers than the old system, as the credit only refunds the tax at the basic 20% rate, rather than the top rate of tax that they pay. It may also force some landlords into a higher tax bracket as they need to declare the income that was used to pay the mortgage when filling out their tax return. 

Selling a Property: Capital Gains Tax

When you sell a property that isn’t your primary residence, any increase in value over the time that you have owned it is liable to capital gains tax. The gain is defined as the difference between the purchase price and the sale price and is not the amount of equity you are left with after the sale.

For example, if you bought a flat for £137,000 and sold it six years later for £215,000, you pay tax on the £78,000 difference between the two figures. This means that if you are remortgaging or borrowing more to buy another property, you must leave enough equity in the property to cover the capital gains tax bill in case you need to unexpectedly sell it.

Capital gains tax includes an annual tax-free allowance, just as income tax does, which is currently £12,300. You are also allowed to deduct the costs of selling or improving your property from your gain. These allowances include:

  • Estate agent’s fees
  • Solicitor’s fees
  • Survey costs
  • Stamp duty
  • Costs of improvement works and major renovations

Rates of capital gains tax depend on the tax bracket you are in. For higher or additional rate payers it is charged at 28%. For basic rate payers, your taxable capital gains are added to your taxable income, minus your personal allowance. If the total amount falls into the basic rate income tax band you pay 18% capital gains tax, and any amount above the basic rate will be taxed at 28%.

A capital gains tax return must be submitted, and any tax owed must be paid within 60 days of the sale on the property being completed. 

Letting a Room in Your House Tax-Free

The rent-a-room scheme allows live-in landlords to receive up to £7,500 a year from a lodger before they have to begin paying tax. The landlord doesn’t need to own the property to qualify, but they must have their landlord’s permission to sub-let.

If you do own the property, you must have permission from your mortgage provider to let out a room. If your lodger pays less than £7,500, you are automatically exempt from property tax and don’t need to do anything other than keep a record of the income. If you receive more you need to complete a tax return, as is usual for other methods of renting out a property. It may be worth employing the services of an accountant to see which choice will leave you with the most money.

Becoming a landlord can feel overwhelming and confusing due to the sheer amount of details you are required to understand. At Hopewell, our expert letting agents can walk you through the process and give you all the information you need. Get in touch with us today to get started and fo further information on property tax.

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8 Property Management Tips for First Time HMO Landlords

HMO Landlord

Houses of Multiple Occupancy (HMOs) can be a lucrative source of income, and buy-to-let landlords can earn three times as much money letting out separate rooms in a shared house compared to letting a whole property to one family. However, HMOs are heavily regulated compared to other types of rental properties and failing to comply with the rules can lead to a big fine. 

In this article we’ll outline the eight most important tips for first time HMO landlords.

1. Get to Grips with the Rules of your Local Housing Authority

Different local housing authorities have different rules when it comes to HMOs, so it’s crucial to know the legislation. A large HMO is classed as a property let to five or more people from two or more households who have shared access to facilities such as a kitchen and bathroom. 

All large HMOs must be licensed in England and Wales, but in some areas Local Housing Authorities (LHA) have introduced additional licensing for certain types of smaller HMOs, so you must check the rules in your area.

2. Obtain an HMO Licence

If a licence is required, you must obtain one before letting any of the rooms in your HMO. Letting a licensable HMO without a license is an offence and can result in very large fines, usually between £10,000 – £30,000. 

When you apply for a license, the LHA will carry out an inspection before granting it. The cost of an HMO license varies a lot, depending on where your HMO is based, but it will usually be over £300 and can be over £1,000 in some areas of London. Once you have it, it will last five years before it needs to be renewed.

3. Get a Mortgage that Allows HMO Use

Not all buy-to-let mortgages are suitable for HMOs, so it’s vital to check with your mortgage provider before applying for a license. Or, if you know you’re planning on letting a property as an HMO, make sure you get a mortgage that allows this first. Some standard buy-to-let mortgages allow HMO use for small properties (three or four tenants), but a large HMO needs a specific mortgage product. 

4. Get the Right Insurance

Houses of multiple occupancy must have specialist insurance cover, so don’t rely on the usual buy-to-let insurance deals and hope that you are covered. HMOs are perceived to be higher risk, so some providers won’t cover them, but there are still plenty of deals available. Make sure your insurance covers the building itself, the contents and any loss of rent if the property is damaged or destroyed. You also need to beware of tenants subletting rooms in your property, as this can render your insurance void.

5. Carry Out Your Duties as a HMO Landlord

The Management of Houses in Multiple Occupation (England) Regulations 2006 lay out the various rules and regulations that HMO landlords must abide by. These stipulate that landlords must:

  • Follow strict fire safety rules specifically for HMOs
  • Provide the landlord’s contact details to the occupiers and display them prominently in the property
  • Maintain a supply of gas and electricity
  • Ensure gas appliances are tested annually and electrical appliances every five years
  • Make sure the property is clean and up to standard before tenants move in
  • Maintain common areas, fixtures, fittings and appliances
  • Provide waste disposal facilities

Landlords must carry out regular inspections of their HMO to ensure that safety and maintenance issues are kept under review. If tenants report faults or issues, landlords must respond promptly.

6. Find the Right Tenants

Having a group of people who gel and create a harmonious household works in your favour as a landlord, as it saves you having to deal with conflicts or issues. Look for tenants who have similar lifestyles and living patterns. For example, a group of lively students who stay up late won’t be a good match for someone who works morning shifts and needs to go to sleep early. 

A group of people who enjoy living together are likely to have fewer disputes and you will have a slower turnover of tenants, which means less periods of time when rooms are empty. If you are happy with your existing tenants it can be a good idea to allow them a say when screening prospective new tenants.

7. Have a Written Tenancy Agreement

It should go without saying that you must have a written tenancy agreement in place with each person living in your property. Having room-only agreements allows you as landlord to have regular access to the property as you retain control over the common parts of the property, which isn’t the case with joint tenancies. Assured shorthold tenancy agreements usually run for 12 months with a six month fixed period during which neither party can end the agreement, unless the rules of the tenancy have been breached. 

8. Keep Detailed Records

Written records should be kept of correspondence and conversations with tenants, as well as all inspections that you do of the property. You should also keep records of any maintenance that is carried out, and the correspondence you have with the tradespeople doing the work. This type of evidence can be very useful if any disputes arise. 

It is also important to have detailed financial records, including all incomings and outgoings related to the property. Whilst it isn’t necessary to operate your HMO as a limited company, it’s a good idea to open a separate business bank account for all finances related to it.

Running an HMO requires planning and careful management, as there are various pitfalls that can lead to large fines. However, if you do your research and know the rules and regulations that apply, carry out your duties properly and choose the right tenants, it can be a lucrative and rewarding way to rent out your property. 

If you need further information, get in touch and one of our expert letting agents will be happy to help.

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5 Five Fire Safety Regulations Every Residential Landlord Should Know

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.