Are you ready to change how you deal with your tenants' deposits?
As of today, Scottish landlords are obliged to place their tenants' deposits in one of three approved tenancy deposit schemes.
These schemes, which have been the norm in England and Wales since 2006, are said to offer tenants the security of knowing their deposit is kept safe for the duration of their stay in a property. Should disputes arise when a tenant moves out, they provide an independent person to decide what repairs need to be done following 'ill treatment' of a property and what constitutes fair wear and tear.
In Scotland, landlords have so far been obliged to keep their tenants' deposits safe, but it was up to them how they dealt with deposits in practice.
The Scottish Government has approved three tenancy deposit schemes and as of today, all landlords need to have transferred their deposits into a scheme of their choice.
It's come as a surprise to us how little information has been made available about the impending changes, especially as consequences for landlords could be drastic and they could be fined up to three times the value of the deposit for missing today's deadline.
A recent ruling has shown that the courts are prepared to be strict on the issue, imposing the maximum penalty on a residential landlord for 'minor' omissions.
We're not about to start scare-mongering. However, this is a huge change for landlords, so if you do need additional information, please contact us directly.
Wednesday 14 November 2012
Tuesday 6 November 2012
It's back - the 90% LTV mortgage
Today, the Co-op has announced it's preparing to make 90% LTV mortgages available to first time buyers. Part of the Co-operative's commitment to lend £360million to first time buyers this year, it's also another definite step forward for the mortgage market.
Is it a step in the right direction, though? A lot of that will depend on how first time buyers are assessed and how conservatively the properties they are interested in are valued. Add to that the length of the mortgage deal, the security of the buyer's job etc and it only becomes harder to make an assessment.
If today's news from Castle Trust are anything to go by, first time buyers are still being rigorously assessed and 60% have been turned down for a mortgage. Good news for landlords to a degree as people continue to stay in the rental market.
Also in mortgage news, HSBC has increased its share of the mortgage market by nearly three percent over the first nine months of this year. Altogether, whether it's in residential or buy-to-let mortgages - and we've said this in this blog before, raised activity across the property industry can only be good for all of us.
Is it a step in the right direction, though? A lot of that will depend on how first time buyers are assessed and how conservatively the properties they are interested in are valued. Add to that the length of the mortgage deal, the security of the buyer's job etc and it only becomes harder to make an assessment.
If today's news from Castle Trust are anything to go by, first time buyers are still being rigorously assessed and 60% have been turned down for a mortgage. Good news for landlords to a degree as people continue to stay in the rental market.
Also in mortgage news, HSBC has increased its share of the mortgage market by nearly three percent over the first nine months of this year. Altogether, whether it's in residential or buy-to-let mortgages - and we've said this in this blog before, raised activity across the property industry can only be good for all of us.
Thursday 1 November 2012
Renting out your flat - who would you trust?
Whether you've bought a rental property as an investment from day one or are now finding yourself a more or less reluctant landlord, who do you trust with your property?
We're predicting that there will be a bit of a change in the lettings & management 'scene' following new legislation that outlaws any premiums charged to (prospective) tenants - except deposit and rent.
What that means for lettings agencies is that they need to look at covering their costs elsewhere - or cutting their service to you. Whilst higher charges to you as the landlord might not sound like a great option, don't forget the alternative may be that your property is less well looked after.
Scare mongers, I hear you say! Far from it, but now is the time to ask your lettings agent how they are adjusting to the situation. To find out about our solution, visit us at the National Landlord Day at Edinburgh's Our Dynamic Earth on Tuesday, 6 November or drop us a line.
We're predicting that there will be a bit of a change in the lettings & management 'scene' following new legislation that outlaws any premiums charged to (prospective) tenants - except deposit and rent.
What that means for lettings agencies is that they need to look at covering their costs elsewhere - or cutting their service to you. Whilst higher charges to you as the landlord might not sound like a great option, don't forget the alternative may be that your property is less well looked after.
Scare mongers, I hear you say! Far from it, but now is the time to ask your lettings agent how they are adjusting to the situation. To find out about our solution, visit us at the National Landlord Day at Edinburgh's Our Dynamic Earth on Tuesday, 6 November or drop us a line.
National Landlord Day - We're here to help
It's less than a week until the doors open to the Scottish Association of Landlords' National Landlord Day next Tuesday, 6 November.
There's hardly ever been a better time for the UK's largest national landlord conference: whilst the private rental market continues to grow, a few new developments and regulations mean landlords have got to make sure they have the right information available to them.
Over the next few days, we'll be highlighting some of those developments in the market. If you'd like more information, please just come and see one of our team at the National Landlord Day on Tuesday.
The biggest change facing Scottish landlords are the new Tenancy Deposit Schemes (TDS). Introduced over the summer to safeguard tenants' deposits, many landlords have not had to act on TDS until this month, when placing deposits with your chosen TDS operator becomes mandatory for all deposits received from 7 March 2011 to 2 October 2012.
If your tenant has moved in since then, the deposit must be placed within 30 working days of the lease commencing. But where to place it? Three schemes have been approved by the Scottish Government, each offering different benefits.
If all this sounds somewhat confusing, please contact us or see us on Tuesday and we'll be happy to advise you on your specific situation.
There's hardly ever been a better time for the UK's largest national landlord conference: whilst the private rental market continues to grow, a few new developments and regulations mean landlords have got to make sure they have the right information available to them.
Over the next few days, we'll be highlighting some of those developments in the market. If you'd like more information, please just come and see one of our team at the National Landlord Day on Tuesday.
The biggest change facing Scottish landlords are the new Tenancy Deposit Schemes (TDS). Introduced over the summer to safeguard tenants' deposits, many landlords have not had to act on TDS until this month, when placing deposits with your chosen TDS operator becomes mandatory for all deposits received from 7 March 2011 to 2 October 2012.
If your tenant has moved in since then, the deposit must be placed within 30 working days of the lease commencing. But where to place it? Three schemes have been approved by the Scottish Government, each offering different benefits.
If all this sounds somewhat confusing, please contact us or see us on Tuesday and we'll be happy to advise you on your specific situation.
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