Myth 1. They put any person in your property.
False. Smartmove carry the financial risk of your property whether there is a void period and even if there is ever a need for legal action. Therefore we are super careful about which tenants we put in your property. Our tenant vetting procedures are second to none.
Myth 2. There is no Guaranteed Rent for LHA tenants.
False. In certain circumstances, we will guarantee the rent of an LHA tenant.
Myth 3. You get less money through Guaranteed Rent
False again! When you take into account lettings agent commissions, fees, and void periods, our Guaranteed Rent can actually deliver a greater net profit than a full market rent. Landlords are often distracted by the headline rental value, not the rent that they actually bank at the end of the year.
Myth 4. Smartmove just take out a Rent Guarantee Insurance and factor the difference.
Again, this is false. Smartmove do not involve any third party in our scheme. Our agency bear the full financial risk and we are only able to do this because we know the area inside out, and have the expertise to find a suitable tenant for your property.
Myth 5. It sounds too good to be true.
It isn’t too good to be true! We can certainly understand this sentiment. However, Smartmove agency are able to offer Guaranteed Rent because they know their area so well. They also manage multiple properties, meaning that they are able to spread their risk across many properties, not just yours.
Smartmoves Guaranteed Rent Scheme is trusted in the Boston with over 250 landlords opting for it for complete peace of mind.
It was set up specifically to serve the needs of busy landlords who want a complete “let and forget” solution.
Make 2016 the year that you never worry about another missing rent payment again!
5 Things our Landlords don’t need to worry about !
1. Rental arrears
The Guardian reported this week that the number of private tenants seriously behind with their rent has risen sharply to reach the highest since early 2013, according to new data.
At the end of September 2015 there were 84,200 tenants owing more than two months’ rent, compared with 74,000 at the end of June. That amounts to a 13.8% increase in three months.
Our Guaranteed Rent landlords can sleep soundly at night knowing that their rent is paid, even if the tenant stops paying.
2. Void periods
A void is when a property is empty and the landlord is faced with paying the mortgage (unless the property was a cash purchase).
Empty properties attract other costs such as council tax, standing utilities, and higher insurance premiums and may also be subject to damage (such as an undiscovered leak) or asset theft.
Our Guaranteed Rent landlords can scrub the word “void” from their vocabulary. We pay the rent, even if there is no tenant in situ.
3. Tenants being advised by the Council to remain until evicted
The Telegraph reported this week that councils are advising tenants to stay put in buy-to-let properties when landlords ask them to leave as they attempt to deal with Britain’s housing crisis.
Even owners who try to return to their homes after living abroad are finding that tenants have been told to sit tight until they are evicted.
Going through the eviction process typically takes around four months, although we have heard of a recent eviction case that took ten months to get to court.
Legal costs associated with an eviction can amount up to £1500 to £2,000.
Courts are suffering from an increasing backlog, and while a tenant is waiting to be evicted to be re-housed by the council, they will not pay any rent, leaving the landlord with no rental income to cover the mortgage. It will also be very challenging for the landlord to recover the lost rent, even after the tenant has left the property.
Our Guaranteed Rent landlords do not have to worry about the costs or loss of rent.
4. Not being able to forward plan
There are many unpredictable costs associated with renting out a property including the ones mentioned above. This can make it challenging for landlords to manage their cash flow and forward plan.
Our Guaranteed Rent landlords know EXACTLY how much money they will receive each month, and the day of the month it will arrive in their bank account.
This means that landlords can therefore plan their finances accurately with this knowledge.
5. Property management
Our Guaranteed Rent service includes full property management coordination for your investment. Although you will have to pay for repairs over £100, we get all the quotes for your consideration and arrange for repairs and to be undertaken. No call on a Sunday evening from a tenant saying their toilet is blocked!
Some landlords dread the phone ringing with the next problem to be solved. Our Guaranteed Rent service landlords never worry about phone calls or dealing with tenants, because we are your tenant.
Our Guaranteed Rent service has been running for 5 years now and we are proud of the testimonials we have received for it:
So if you want to simply “let and forget”, then our Guaranteed Rent service might be just what you are looking for. It is particularly popular with ex-pat landlords, amateur landlords, and “accidental” landlords or those landlords who have busy working lives and do not have time to deal with rental property problems.
Smartmove welcome you to a Stress Free 2015
Are you thinking of becoming a Landlord with a Buy to Let property? Or are you an existing Landlord who is disappointed with your traditional Agent or tired of looking after your own property?
Then you have, either by accident or design, come across the best deal available in this industry.
Smartmove is a letting agency with a unique Landlord Contract that guarantees your rent and the condition of your property.
Let me explain:
Firstly if you are looking for somewhere to make a start in this business you could hardly do better than to choose the Boston/Spalding area.
1) The house prices are among the cheapest in the country.
2) Work is plentiful as it is an area blessed with a multitude of factories, farms and food packing stations.
This means your initial investment will cost less than elsewhere and your achievable rent will be higher because, with plenty of work, your tenants will be able in a good position to pay.
3) It is an area covered by Smartmove who offer an unrivalled deal for Landlords.
So what is the deal? You may ask. Well if you sign up with Smartmove your rental payments are paid into your Bank each month, regardless if your property is rented or not. Often tenants will leave and there will be a gap, sometimes of several weeks, where no rent is paid. That will not be your problem if you are a Smartmove Landlord (Smartmove will still pay you in full and on time). Also if you are new to the business you will soon find that, however well tenants are vetted, they often do not look after the contents of your property as you would yourself. There will be times when properties are trashed with furnishings,decorations, carpets etc spoiled. If you are a Smartmove Landlord then this will not be your problem. At the end of your contract, if you do not renew, your property will be returned in as near original condition as possible. Your only responsibility is to insure the building.
Talking about responsibilities, for a Landlord today there are many and to name a few:
- A Landlord has to check the immigration status of tenants since October 1st 2014 and is liable if any tenants are found to be illegal. The fine for each illegal tenant is starting at 3000 pounds. Smartmove takes on this responsibility for its Landlords.
- Fire & Safety risk assessments on the property needs updating at least monthly. Legislation requires that landlords carry out fire risk assessments in all areas of their properties. This process will identify any fire hazards and who is at risk and decide if anything needs to be done to remove or reduce that risk. Your tenants should feel safe inside of their apartment. This means you should ensure all doors and windows are properly secured and have appropriate working locks. All front doors should, at the very least, have a deadbolt lock. You should also make sure no one else has a key to the tenant’s apartment. Smartmove takes on these responsibilities for its Landlords.
- A Landlord is responsible for responding to repair requests promptly. A tenant pays you rent to reside in your property and it is your duty to respond to requests for repairs in a reasonable amount of time. The severity of the repair should warrant how quickly you should respond. A cabinet door off its hinges does not need immediate attention but should still be taken care of in no more than a week. Smartmove takes on this responsibility for its Landlords and they are only billed if repairs exceed 50 pounds per incident and then only the cost over and above 50 pounds.
- Lack of heat in the winter is a repair that requires immediate attention, both for the safety of the tenant and for the benefit of your property. The lack of heat may cause your water pipes to freeze and that could lead to thousands of pounds in repair costs. Also you could face legal ramifications if you are found to be at fault for the boiler not being on – for example: the lack of heat is due to a faulty boiler you have not repaired and not because the tenant did not pay their gas bill. Smartmove takes on this responsibility for its Landlords.
That’s the rules
Now to reinforce the Good News!
Smartmove takes on all these responsibilities for it’s Landlords
That’s what’s Great about being a Smartmove Landlord. You can live Stress Free, knowing that Smartmove is looking after your asset and your income. You can be relaxing on a beach somewhere while your rental payments are being paid into your bank account regularly and without fail. That’s why we say a Smartmove Landlord is a Stress Free Landlord.
Ok! Now the big question you’re all asking. How much does this cost? Well surprisingly little. Initially we will assess your property and come to an agreement with you over its rental value to us.
Our Landlords are invariably satisfied with our offer and, once agreed, a contract is signed and our first payment to you is made. From that day forward we will only contact you in the most exceptional circumstances (for example if the house burns down). So put your feet up, relax. You’re now Stress Free.
If you’d like to have a ‘no obligation discussion’ regarding your lettings and how this deal would work for you, press this contact button to arrange an appointment: call to action button
Apart from wishing all Clients a Happy Christmas and New Year Holiday we want to bring to you attention a new Fraud that is being visited on Landlords. Please read this and consider taking action to prevent yourself becoming a victim in the New Year. As always Smartmove is looking to safeguard its Clients interests.
The UK Land Registry is reminding landlords to take steps to protect their property from being fraudulently sold or mortgaged in 2015.
It points out that you are more at risk if you rent out your property, you live overseas, the property’s empty, the property isn’t mortgaged and the property isn’t registered with the Land Registry.
Properties will be registered if they were bought or mortgaged since 1998 and anyone who is unsure can check the register. A spokesman said that if any information on the register is incorrect, such as a landlord changing contact address, these should be notified and changed.
‘You can track changes to the register or put a restriction on your title if you think you’re at risk. You can also sign up to get property alerts if someone applies to change the register of your property, for example, if they try to use your property for a mortgage,’ said a spokesman.
‘This won’t automatically block any changes to the register but will alert you when something changes so that you can take action. You can get alerts for up to 10 properties and there’s no fee,’ he explained.
‘You can stop Land Registry registering a sale or mortgage on your property unless a conveyancer or solicitor certifies the application was made by you,’ he added.
If you don’t live at the property you can fill in a request for a restriction for owners not living at the property if you own the property privately. Business owners must fill in a request for a restriction for business owners of property. Again there is no fee.
Everyone thinks it can never happen to them but the statistics prove different.
Be safe in 2015 and Smartmove wish you a Happy New Year.
More News on the Government’s New Legislation regarding immigrants in Letting accommodation.
The Law making Landlords responsible for ensuring that their tenants are legally allowed to reside in the UK will be enforced, now from the 1st December, in various regions (to be advised) with a rapid roll out nationally. The penalties for non-compliance are severe. Fines starting at three thousand pounds for each illegal occupant of the rental property.
The Liability has been firmly placed on the shoulders of the Landlord for proving that the tenant has ‘the right to rent.’ This can only be circumvented if the Landlord gets written confirmation that his/her appointed Agent has agreed to take on this responsibility. If there is no written confirmation, the responsibility will fall back on the Landlord.
Smartmove will issue all its Landlords with this important document.
If the named tenant sub-lets without the Agent’s or the Landlords knowledge then the Liability will be that of the tenant who allowed the sub-let. (unusual to find a little fairness in Government legislation).
So what do you have to do? We’ll if you’re a Smartmove Landlord, very little. Just ensure that you have written confirmation that Smartmove are accepting the responsibility.
If not you have to obtain relevant documentary evidence that they have a right to reside in the UK. This will mean taking copies of Passports, Identity Cards, Visas etc. Checking the list of countries from which immigration is allowed and noting those from which it is not. It is also worth remembering that even if the proposed tenant has a visa that allows them to stay you must take note of the term of that visa. In other words, you cannot grant a twelve month lease to a person whose visa runs out in less than twelve months.
As you will be taking copies of personal documents you will also need a ‘Data Protection’ Licence.
Of course if you are with Smartmove this will be covered in your Agent agreement as part of the service.
I hope that you have found this informative and look forward to advising you of any further developments to help safeguard your investment.