Across the land, right now as I type, millions of Brits, barely recognisable as human beings due to two weeks of inhaling a festive mix of pigs-in-blankets, chocolate and Advocaat, will be sat on their sofas lying to themselves that they will hit the gym at 8am on Jan 1st. For real this time.
This time of year is full of traditions. From putting the tree up and watching the Queen's speech to more modern ones like the John Lewis advert or wandering around an overcrowded and overpriced Christmas market 'because it's fun'.
One such tradition can trace it's roots back to 1813, when in a Boston newspaper the phrase 'New Years resolution' first appeared. However, according to research, the vast majority of resolutions tend to fizzle out around the 10th of January, some time in between consuming the last of the Christmas cheese and finally hoovering up the remaining pine needles from the living room carpet.
Landlords
It's fair to say that landlords in the UK have not had it easy of late. A toxic mix of punitive tax and regulation changes heaped on top of sustained political uncertainty and wider UK economic worries before being sprinkled with more than enough Brexit for anyone, is pushing all but the most diehard away from the sector.
So it will come as little surprise that the ones who plan to stick around during the next twelve months will already be drawing up their battle plans on how to not only survive 2020, but to make a profit.
To help you on your way, here are Property Reporter's top 5 resolutions and tips for a successful 2020:
1: Keep on top of regulation and tax changes: Due to the fast paced nature of the property industry and even faster pace of regulation changes, this should be standard practice for landlords. However, if the volume of recent changes to legislation in the last year is anything to benchmark against for the future, UK landlords need to make this their number one priority in 2020.
2: EPC: Back in April 2018, for any new tenancy, renewal or extension to be rented, the building must have achieved a minimum energy rating of “E”. The rating is found on the Energy performance Certificate for the building. As of 1st April 2020, the minimum level “E” applies to all tenancies – including existing.
By far the most impact is by having a modern condensing type boiler. Otherwise, loft insulation can be installed and LED bulbs have a small beneficial impact. If you miss this and fail to comply, the local authority may issue a penalty. Some examples of these are below:
1: Where the landlord has let a sub-standard property in breach of the Regulations for a period of less than 3 months, the Local Authority may impose a financial penalty of up to £2,000 and may impose a publication penalty.
2: Where the landlord has let a sub-standard property in breach of the regulations for 3 months or more, the Local Authority may impose a financial penalty of up to £4,000 and may impose a publication penalty.
3: Where the landlord has registered false or misleading information on the PRS Exemptions Register, the Local Authority may impose a financial penalty of up to £1,000 and may impose a publication penalty.
4: Where the landlord has failed to comply with a compliance notice, the Local Authority may impose a financial penalty of up to £2,000 and may impose a publication penalty.
As you can see, this can be expensive to ignore, so best get this sorted before April.
3: Deposit protection: Reducing deposits in line with the deposit cap
As part of the Tenant Fees Act, landlords must remember to reduce deposits in line with the legislation before June 1 2020.
Prior to the changes, landlords could take security deposits equivalent to five weeks' rent (or six weeks' rent for tenancies where the annual rent exceeded £50,000) for new tenancies. Although you are still able to hold deposits above the cap for existing agreements, they will need to be reduced in line with the legislation before June 1 2020 or the next time the tenancy renews before that date.
Recent data from the Deposit Protection Service revealed that just over 40% of deposits it held were still above the caps. figures show that the introduction of the Tenant Fees Act saw the proportion of deposits exceeding the cap fall by 1.5%. However, it's fair to assume that even more deposits have been lowered between then and now. As the deposit deadline gets closer, landlords need to begin bringing all their deposits in line with the legislation.
Failure to observe the Tenant Fees Act can be pricey. A fine of anything from £5,000 to £30,000 is to be expected, so compliance is important.
4: Repairs and maintenance: This goes without saying really. Spending a little can go a long way and makes sense on several levels. Good properties attract good tenants and if you put the time and effort into making your investment property a nice place to live, then good tenants will want to stay.
Tending to your property in the winter is paramount. Frosty conditions can wreak havoc on a home if left unchecked. Make sure your boiler is working and has been serviced. Don’t forget to give your tenants a copy of the annual gas safety report. As well as being a legal requirement, it will also provide tenants with some peace of mind. Check pipes, seals on windows and any sign of damp. Inspect drains, gutters and roofs as they can get clogged and blocked up during autumn with leaves.
Ensure your properties are both well insulated and ventilated. Insulation will provide a barrier around the building to help keep the heat inside the house in the winter. Proper ventilation will prevent a build-up of condensation that could cause the ceiling and walls to become damp. To help prevent damp, make sure properties are fitted with extractor fans, especially in places like the kitchen and bathroom.
Alarms
Finally, in the winter tenants will increase their use of heating appliances and fireplaces. Make sure there is a working smoke alarm installed on every storey of living accommodation. In addition, if your property has any rooms that contain a solid fuel appliance, check carbon monoxide alarms are installed in those rooms.
5: Communication: One of the biggest complaints about landlords (after rent hikes and repair issues) is poor communication. For many tenants, this can be frustrating and lead to bigger problems.
Maintaining a regular dialogue with your tenant will help any issues that arise during the tenancy to be dealt with proactively. Make sure your any new tenant is given all the essential paperwork on moving in day. If you can't be there, make sure a copy of everything is left in the property for them. You should look to cover things such as the EPC (Energy Performance Certificate), Gas safety certificate, tenancy agreement and copies of manuals for the appliances etc.
Not essential, but a nice touch would be information on what day the bins go out, where the nearest shops are and most importantly, where a decent pub is.
So there you go. Statistically, you are more likely to consume a six pack before getting close to achieving one down the gym next year, but at least if you bear in mind our tops tips you could be well on the way to being a more successful landlord in 2020. Happy New year!
To speak to one of our team here ar Belvoir Liverpool Central call us on 0151 231 1613 or email liverpoolcentra@belvoir.co.uk
