The leading government-authorised tenancy deposit protection scheme, my|deposits, has created a guide for landlords, offering advice on how to make a fair wear and tear judgement call at the end of the tenancy period. 

Wear and tear of course, remains subjective with no hard and fast rules on what is reasonably acceptable: this new guide aims to help landlords consider the different factors involved in the decision-making process. 

The guide also highlights the importance of landlord and tenant talking to each other, especially at the outset of tenancy, when the landlord should set expectations with regard to maintaining the condition of the let. 

After all, there are clear and direct financial consequences for both should a dispute arise at the end of tenancy and the guide explores a number of different areas including length of the tenancy period, the occupants themselves and, looking at the difference between reasonable wear and tear, and damage. 

Eddie Hooker, Chief Executive of mydeposits.co.uk said, Wear and tear is always a hot topic of debate and is very much situation-dependent. We have worked with landlords and our in-house disputes team to compile the guide, which is by no means definitive, but hopefully gives landlords some benchmarks and examples to consider when checking out their tenants.

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Unless you have the time to interview every applicant and chase, read and understand previous landlord, employer, bank and credit references, using a reputable and local letting agent should sift out undesirables early on. 

Most landlords with respectable, long-term tenants will only go through this 'recruiting' process once in a while.  Professional letting agents maintain these essential skills day-in, day-out. 

An at-a-glance checklist 

-Get references from previous landlord(s)

-Credit check

-Contact employer

-Meet face-to-face 

-Ask about lifestyle viz. recreation and occupation

-Make sure applicant is happy to pay rent by standing order

-Look for tenants who want long-term lets 

-Take a deposit 

-Buy wise ~ the best tenants are attracted to the best prepared properties in good areas

-Get a good, local letting agent to find that ‘perfect tenant’

See www.eazylet.co.uk to identify reputable letting agents in your target area.

 

Log-in to www.bmvpropertyinvestmentdeals.co.uk for other Recent Blog Entries. 

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Follow these 10 simple tips from experienced Landlords to keep your costs down too …

1.) Maximize Presentation ~ a few pounds spend on a lick of paint or a professional clean before letting will generate a hansom return to you in the form of rapid letting to the better tenant and fewer void periods. Photos for press release should show a tidy, well managed property especially lawns, kitchens and bathrooms. Choose a letting agent who knows their business well in the area you have/want property (see Blog n News, The Danger of Unwary Landlords, 12th May 2010). 

2.) Cheap Can Be Costly ~ a cheap carpet with a cheap underlay won't last long and you'll have to do it again.  You can get away with a lower-end carpet but use a very good quality underlay that cushions wear from beneath.

4.) Get Comprehensive Insurance ~ Rent, Legal and Deposit Protection is essential to your peace of mind. A good letting agent will advise you.

5.) Study Those Reports ~ you will only know if maintenance or end of tenancy reports are accurate if you study them. They should include before/after photos and inventory together with comment on any damage that may have been caused during tenancy as the tenant could be responsible under the AST for repairs or replacement costs.

6.) Before You Buy ~ think carefully about the type of tenant you want.  Buying a low-end property in an upper-end area is better than buying an upper-end property in a low-end area. 

7.) Think Annual Rental Income ~ do your math! You need to cover any expenses especially your mortgage.  Then add a margin for the unknown such as interest rate increases plus your profit and you have minimum rent required. Though rental demand is currently accelerating, doing a deal to let your property keeps it occupied but remember to cover costs [Our BMV deals illustrate minimum rental yield at least 1% (often +3% or more) higher than the mortgage interest rate].

8.) Regular Maintenance ~ is essential for a happy tenant, happy landlord and, the logevity of your investment.  Fix small jobs quickly and without fuss.  Engage a reliable maintenance man/company if you can't or don't want to do-it-yourself. 

9.) Regular Inspections ~ lets your tenant know you care about the property and them giving them a chance to suggest sensible improvements. Some of which they may be willing to pay for.

10.) Rent Appliances ~ a good,new washing machine, cooker and fridge/freezer can set you back nearly a thousand pounds.  Why spend your cash when hiring means you pay from monthly cash-flow?  With servicing, repairs and upgrading inclusive from about £10 per month per machine you can let some else worry about reliability and it's their emergency call-out at 3 o'clock in the morning!

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STOP PRESS STOP PRESS STOP PRESS 

New figures released by the Royal Institution of Chartered Surveyors (RICS) indicate that UK landlords are likely to see rental demand seriously increase as supply of new properties falls for a second quarter. 

The survey found that almost 1:4 chartered surveyors report a drop in the number of new landlord instructions received for this period, indicating that tenant demand will increase to unprecedented levels, with first time buyers making up a significant part of the demand as they are unable to get a foot on the property ladder.

What We Say ~ First Time Buyers can buy a Below Market Value property for a fraction of the deposit normally required for Estate Agents listed property.  A typical 2-bed terrace valued at £100,000, purchased at £75,000 (25%BMV) requires only a £7,500 deposit and interest only mortgage monthly payments of £394 (7%APR).

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