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Buy to let remains a popular investment despite recent changes to legislation

buy to let landlords

A recent survey of 5000 investors by a London based agency had reported that the Buy-to-let investment model remains the most popular amongst those surveyed.

Although the market is currently seeing a raft of new legislation, covering all aspects of the rental market, 73% of these investors still see property investment as the most stable, least volatile long-term investment available.

Recent legislation has changed stamp duty, tax-relief and tenants fees, making the sector less profitable but the long term impact of these changes is seen more as a bump in the road by many businesses with the size and scale to make adjustments for the long term.

Smaller rental operators may have lost interest and be leaving the sector and certainly the government is seeking to weed out unscrupulous landlords and improve the quality of the businesses that own and manage rental properties, but those with scale are coping well with the new rules.

With Brexit looming there will no doubt be further changes made as the impact of this significant political development  feeds down into the nuts and bolts of property management. However the fundamentals of the investment are still there for the responsible landlord.

Renting property is popular amongst students and young professionals as well as many families. Having the right partner to help you find and manage your tenants will help you generate a steady, reliable income. Buying and maintaining the right kind of property, in the right area, means that you will have capital appreciation as well as this rental income.

Knowing all of the legislation can be difficult for landlords but that’s where choosing the right lettings agent as a partner can be a great help to you. Your agent will manage hundreds of rental properties so will be fully up-to-date with both local and national legislation.

Mistoria operates a team of local offices, staffed by knowledgeable,  friendly staff who work with dozens of landlords in the property rental sector. We cover all of the paperwork for you, ensuring you and your property are fully compliant. We will also source your tenants and manage their tenancy. And of course we handle payments and the money side of things giving you regular monthly statements of all income and expenses and making sure your payments are promptly made.

If you are currently struggling to manage your portfolio or are looking for a new partner to help you with your properties then please drop us a line or call us and we would be happy to show you our range of lettings services.

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The importance of landlords knowing their local regulations

landlord services north west

Recently a couple was fined £8,000 for failing to comply with multiple occupancy regulations in Kent, and while their example is an extreme one, it serves as a useful insight into the importance of knowing the law with regards to HMO properties and investments.

The Azads were found guilty by Bexley Council of housing 17 people in a bungalow that could legally only bed eight individuals.

Now, that isn’t to say any reasonable person thinking of entering the HMO market would flagrantly disregard the regulations and common decency, but it does show that local authorities will go after people who break them.

Regulations are tougher on multiple occupancy homes compared to single or family rents, on top of the usual regulations there are strict rules on everything from the number of toilets in the house to the extra safety precautions required.

For example, if there are five or more occupiers, then there needs to be more than one toilet in the property by law, this number increases as the number of people in the property increases.

There are similar regulations around access to kitchen appliances like cookers, fridges, and freezers. Even more seriously, there are extra rules for HMOs to ensure the safety of all of the occupants, most of these are related to the proper installation of fire escapes and fire doors, but they all need to be met.

On top of all of that, each local authority legislates its own refuse collection policy, and all will have different requirements for the proper disposal of rubbish from multiple occupancy homes. Some councils will say an HMO with five people must have a larger bin, whereas others may say a property can have an extra bin with six or more people. All of these extra bins need to have a place to be stored safely. It gets even more complicated when you start to consider recycling.

One of the fines Bexley Council handed down to the Azads was because their property had collected too much rubbish and they had no way of properly disposing of the waste produced by that many people.

Investing in an HMO can offer lucrative returns when done properly, but failure to meet all of the extra legislation can result in costly consequences.

Mistoria is an expert in all matters regarding HMO regulation and can assist anyone who is thinking of making an investment in the market. Please contact our team for assistance with your properties or for advice on any landlord services North West including Salford, Liverpool and Bolton are all areas we are very familiar with.