Butlin Property Services

Archives for May 7, 2019

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TDS introduces suite of tools ahead of Tenant Fees Act

Leading Independent Letting and Property Management Agency for Leicester & Leicestershire Villages

Butlin Property Services - Lettings & Property Management Agent - Leicester Birstall Loughborough Clarendon Park Oadby Derby Nottingham

TDS introduces suite of tools ahead of Tenant Fees Act

Launched to coincide with the ARLA Propertymark conference earlier this month, TDS has become the first Tenancy Deposit Protection Scheme to introduce a range of free, online tools to help landlords and letting agents comply with incoming Deposit Cap legislation.

The Tenant Fees Act

As of 1 June 2019, landlords and letting agents in England including Leicester will only be legally allowed to take the equivalent of five weeks’ rent as a tenancy deposit on annual rents below £50,000, and the equivalent of six weeks’ rent if the annual rent is £50,000 or more on new or renewed tenancies. Any landlords or letting agents in England found to be in breach of the new legislation could face a fine of up to £5,000.

At this time, the new regulations apply to new and renewed tenancies beginning on and following 1 June 2019.  Tenancies will only fall under the cap if they are renewed for a new fixed term. Tenancies that become contractual or statutory periodic tenancies will not be affected.

What’s included

TDS’ free suite of information and tools includes:

  • A free online Deposit Cap Calculator which is available for letting agents to embed in their own websites. To request the TDS Deposit Cap Calculator for your website, please contact info@tenancydepositscheme.com
  • Landlords and letting agents can use the TDS Custodial Deposit Cap Solution which is a new ‘edit deposit amount’ function where they can increase or decrease the deposit amount if they need to repay a deposit above the cap after the 1 June 2019.  If a new fixed term tenancy is created the landlord or letting agent can simply change the deposit amount down to the new five or six week level and TDS will sort out the repayments back to the lead tenant.
  • If the deposit has been reduced, a Deposit Protection Certificate in the new amount will be available in the member’s online account. As with the TDS Insured scheme no new Prescribed Information has to be issued in these circumstances.
  • A dedicated Deposit Cap Resource Centre which hosts a suite of information on the incoming legislative changes. DepositCap.com is a one-stop-shop for all the information landlords, letting agents and tenants need to fully prepare them for the introduction of the Act.

The Resource Centre includes the Deposit Cap Calculator, a graphical timeline, example scenarios, guides, information and other tools to help provide clarity on how the Deposit Cap will affect letting agents and landlords and how to reduce the deposit they hold whether they use TDS’ Insured or Custodial scheme.

To see the suite of tools, please visit the deposit cap website.

Find US:

Butlin Property Services

40 Howard Road

Clarendon Park

Leicester

LE2 1XG

E: lettings@butlinps.co.uk
T: 0116 274 5778

Find US:

Butlin Property Services

77 Sibson Road

Birstall

LE4 4DX

E: lettings@butlinps.co.uk
T: 0116 274 5778

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Long-distant property rental investment – Leicester landlords be aware

Leading Independent Letting and Property Management Agency for Leicester & Leicestershire Villages

Butlin Property Services - Lettings & Property Management Agent - Leicester Birstall Loughborough Clarendon Park Oadby Derby Nottingham

Long-distant property rental investment – Leicester landlords be aware

ARLA Propertymark have commented on the recent article released by the Telegraph highlighting the implications faced by investors who let properties away from their local areas. This is particularly relevant to property investors in city apartments such as in Leicester and Loughborough where a high proportion of apartment sales are through property investment groups.

When it comes to becoming a long-distant landlord, higher returns may seem appealing, but investors may be left out of pocket, vulnerable to fraud, faced with unruly tenants or fork out large property management fees if they’re not careful.

Why investors may be tempted to buy long-distance

Lower house prices and higher returns in northern regions, including Leicestershire, Derbyshire and Nottinghamshire have tempted many to look further afield for their next investment opportunity. Expats and retirees abroad, owning and letting a UK property is often seen as a safe way to earn a strong return.

David Cox, Chief Executive of ARLA Propertymark said: “Landlords who are considering buying and renting out a property away from their local area are unlikely to be familiar with the market.

“It’s vital they research the area and familiarise themselves with local rents and whether there are any special licensing conditions in place.

“It makes it extremely difficult for landlords operating in the sector to grasp the ever-changing legislative differences.”

30-year-old Accountant, Chris Yates faced the disastrous consequences when he struggled to manage his properties in Kent and Norwich while living in Abu Dhabi.

Chris tried to let his property through friends of friends but was left nursing a £6,000 loss when a tenant illegally sublet one of his homes and stopped paying rent.

Mr Yates said: “I heard through someone else that the tenant had left the property. I had to ask a friend to go around and then somebody else answered the door. It was just by chance we found out.”

The illegal tenants had caused significant damage to Mr Yates’s property, meaning he had to foot the repair bill and try to restore the house from afar.

“I lost quite a bit given the damage in the house and I didn’t get any money back. I realised I was reliant on others to vet new tenants and use their judgment,” he added.

Peter Butlin, Director of Butlin Property Services in Leicester, said: “employing a suitably qualified and regulated agent is the safest and surest way to maximise a landlords’ rental income. By choosing appropriate tenants, ensuring compliance with statutory requirements, achieving the market rent for your type of property, and providing cost effective services employing Butlin Property Services will pay for itself.”

Find US:

Butlin Property Services

40 Howard Road

Clarendon Park

Leicester

LE2 1XG

E: lettings@butlinps.co.uk
T: 0116 274 5778

Find US:

Butlin Property Services

77 Sibson Road

Birstall

LE4 4DX

E: lettings@butlinps.co.uk
T: 0116 274 5778

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Consolidation of agencies – is this the first sign of the Tenant Fees Ban taking hold?

Leading Independent Letting and Property Management Agency for Leicester & Leicestershire Villages

Butlin Property Services - Lettings & Property Management Agent - Leicester Birstall Loughborough Clarendon Park Oadby Derby Nottingham

Consolidation of agencies – is this the first sign of the Tenant Fees Ban taking hold?

ARLA Propertymark have commented on the figures discovered in their recently published March 2019 PRS report which states that there is a record number of homes available to renters.

In the latest report, an average of 203 homes are to let per member branch, up from 197 a month ago which is the highest since the association’s records began in 2015.

Key Findings

  • The number of tenants experiencing rent hikes in Leicester and Loughborough increased in February to the highest figure seen since August which is in line with the figures Nationwide
  • Supply of rental properties letting agents in Leicester and Loughborough managed remained the same while demand from prospective renters decreased
  • The number of landlords selling their buy-to-let (BTL) properties in Leicester and Loughborough rose to four per branch
  • Tenants in Leicester and Loughborough stayed in rental properties for 19 months on average and the average void period between tenancies remained at four weeks
  • The number of tenants successfully negotiating rent reductions fell

David Cox, CEO of ARLA Propertymark said: “Whilst it’s really positive that the number of properties available per branch hit a record high, this may be the first signs of the industry consolidating ahead of the tenant fees ban as agents either sell-up or merge. This, coupled with landlords exiting the market and rent costs continuing to rise, means the overall picture is far from positive for renters.

“The full effects of the tenant fees ban have not yet been felt, and now the Government is introducing yet more new legislation which will deter new landlords from entering the market, such as abolishing Section 21.

“Until we have greater clarity on the changes planned, this news will only increase pressure on the sector and discourage new landlords from investing, meaning rents will only continue to rise for tenants.”

Peter Butlin, Director of Butlin Property Services, said:

“The income of letting agents in Leicester and Loughborough are being hit hard by the tenant fee ban. Many smaller agents have sold up to the larger agencies or are looking at this option which is a worrying trend for landlords and their tenants. The impact of the loss of income to the larger agencies will inevitably result in job losses, a poorer service to tenants and increased fees for landlords whose income is already hit hard by recent changes.

Butlin Property Services, although hit by the tenant fee ban, have suffered less as:

  • their fees to tenants have always been much lower than their rivals
  • efficiencies in the administration of the business have allowed the same delivery of high service standards to their landlords and tenants without the need to reduce staffing levels or dramatically increase fees to landlords

Find US:

Butlin Property Services

40 Howard Road

Clarendon Park

Leicester

LE2 1XG

E: lettings@butlinps.co.uk
T: 0116 274 5778

Find US:

Butlin Property Services

77 Sibson Road

Birstall

LE4 4DX

E: lettings@butlinps.co.uk
T: 0116 274 5778