Top Ten Tips For Landlords

We know many leaseholders move out to then rent their leasehold flat. Follow these tips and you won’t go far wrong.  Decorate neutrally  Don’t be greedy…go easy on the rent increases.  Speak to your mortgage lender  Draw up a proper tenancy agreement  Get tenant references  Properly protect the deposit  Check your building and contents insurance  Declare taxable income  Take safety seriously If tenants stop paying, act fast...

Managing Agents | Too Big To Care

When organisations get so big it is hard for them to continue to consistently deliver great customer service. And in some cases sheer size means poor customer service. Some large companies: Tesco, Apple, the AA, seem to manage to maintain their customer focus while others (and the interest here is the UK property management sector) like Peverel (who manage over 150,000 homes) and Countrywide (managing 60,000) seem to lose customer service discipline. The irony is that this was never their intention. The net result of this is that there will be a period of de-centralisation in the property management sector as leaseholders focus on getting the service and value they want and deserve. Why Some Big Companies Fail There are four or five really big residential property management companies in England and Wales. Between them they deliver management services to well over 250,000 residential leaseholders, out of a total of 1.6m leaseholders. A decent slice of the pie. Now let’s imagine you’re a senior manager at a property management company with 100,000 homes in management. What do you worry about? Mrs Miggins’ flood at Flat 23 Holborn Court or the macro costs of cyclical maintenance in the South Region? It’s easy to understand how - as property management companies get significant in size - they inevitably lose their eye for detail. I accept Mrs Miggins has a dedicated ‘front line’ Property Manager employed by Huge Property Management Company Limited, whose job it is to serve her immediate needs and wants. But go up the management chain and very quickly Mrs Miggins’ issue - which to her is actually critical - becomes...

Residential Block Management: Why Health And Safety Trumps A Striped Lawn

Politics is the art of conflict. The art of Residential Block Management is balancing competing needs against limited resources: a recipe for conflict. It’s no surprise to learn then that the best property managers are also skilled politicians. A great example of this is the conflict that arises over the need for health and safety versus the desire for aesthetics like landscaped gardens and how the most skilled Leaseholders Leaseholders want to see funds spent on those initiatives that look great, and add value to their property: like landscape gardening, new communal flooring, better lighting and so on. What leaseholders want is great internal and external decorations, great cleaning, and gardening. They want their block to look fabulous. They know it adds value and they feel great to have friends and family visit. For leaseholders health and safety law, say, the Working at Height Regulations, comes a distant second when competing with a great looking block. Landlords Like leaseholders, landlords are keen to see work that adds value to their investment. They  like to see initiatives that improve the look and feel of the place. Serious Responsibilities Landlords and Resident Directors (leaseholders who’ve volunteered themselves as Directors of the Management Company) have serious responsibilities, however, and when it comes to health and safety they’re the ones that could end up in the dock if things go wrong. Law? What Law? The legislation around residential residential block company accommodation is strong, detailed, and widespread. The duty on landlords and Resident Directors to evidence compliance is a serious burden. A burden compounded by the sheer volume of legislation: Health and Safety at...

Why Is The Leasehold Sector So Complicated?

“Let he who will be deceived, be deceived“ maxim of Roman Law. Is the UK leaseholder sector needlessly complex? Why and to whose benefit? The legislation surrounding leasehold flats is overly complicated. Let’s start by examining the kernel of the leasehold nut: the lease.  The lease is a challenging read. The legalese seems designed to be confusing. Leases are written in English but the grammar is so hard to unpick it may as well be in an unknown language. To make the point here’s a couple of examples from two separate leases: “To do all such works as under any legislation are directed or required to be done on or in respect of the Property (whether by landlord tenant or occupier) not to do or omit to be done any act matter or thing in respect of the Property which shall contravene any such legislation and to keep the Corporation and the Management Company indemnified against all claims demands and liabilities in respect thereof.” What?!! “The Lessee paying the rent hereby reserved and performing and observing the covenants on his part herein contained shall peaceably hold and enjoy the premises for the term hereby created without any interruption by the Lessor or any person lawfully claiming under or in trust for it.” Pardon?!! Notice how the authors of leases don’t do full stops. It’s clear the lease – the legally binding contract between landlord and tenant - is hard to read and understand. Leases, by design, are unwelcoming. They cry out STAY AWAY, and emphasise it with consistent application of a un-customer friendly font (Courier New 12). From the moment you start reading,...

Add Value To Your Flat – Stay Put!

This post offers five different investment strategies for leaseholders looking to add value to their flat – without selling. Over the last year or so we’ve seen more and more of our leaseholder clientschoosing to sit tight, not sell, and instead sweat their existing property asset. Here’s our list of the five most popular ways leaseholders are investing in their own homes to add value. The Mortgage Market Before we move on to adding value to your flat let’s just spend a moment understanding the housing market. I do this not because I want to waste your time but because it will help rationalise my investment tips. Right now mortgages are cheap. But to unlock these fabulous deals requires a massive deposit. Usually north of 25%. So on a £200,000 flat you need £50,000. Yep – me neither.  High deposits are a key factor in explaining why the housing market has been flat for the last few years.  The situation is steadily improving; you can now get a mortgage with just a 5% deposit but the deals are much less attractive. How Do You Add Value To Your Flat? What can a leaseholder do to sweat their property assets? Most people haven’t got £50k as a deposit for a great mortgage deal but many have a few thousand which they can spend wisely to add value. Five Sure Fire Ways To Add Value To Your Flat 1.  Extend Your Lease When your lease term runs out your lovely flat is handed back to the landlord. And you get nothing. But there is statutory legislation that gives you the right to extend (by 90 years)...