Unfortunately, breakages are Inevitable in any rental property

If you’re a landlord, you’re probably already aware of the problems that can arise if you have a particularly accident-prone tenant. While breakages are inevitable from time to time in any rental property, there are some tenants who seem to break far more items than others.

A question we often get asked is “As a landlord, is it my responsibility to cover the costs of repairing breakages, or should the tenant take responsibility?” It’s a great question, and our expert team here at Perry Bishop is here to offer some insight into the situation.

When should the Tenant take responsibility for damages and breakages?

Although a landlord is usually responsible for covering the cost of certain repairs in their property, if the tenant themselves (or their guests or family members) cause the damage, the responsibility falls on them to pay for the repairs to be carried out, even in cases where the damage has been caused to a fixture, fitting or item that would usually be the responsibility of the landlord to cover.

For example, the landlord would usually cover the cost of repairing a broken door lock, however, if the lock broke because the tenant deliberately damaged it in an attempt to access the property after losing their key, the responsibility for paying for a new lock would fall to the tenant.

Should I cover the cost of repairs even if I’m not legally obliged to?

Although a tenant should take responsibility for the cost of repairing any damage that they’ve caused, there are some cases in which a landlord may choose to be more practical in their approach and to cover the cost even if they’re not obliged to.

You may wish to do this as a gesture of goodwill to thank the tenant for usually taking good care of the property, or the item may soon have needed to be replaced anyway due to it being old or in poor condition.

What should I do if there is a dispute?

In some cases, your tenant may not agree that they are responsible for the damage, and therefore, will not agree to the cost of repairing it. This can result in tension and some significant potential issues, especially if their tenancy is only partway through.

Fortunately, thanks to the requirement to use an approved tenancy deposit scheme you have some recourse. Any dispute is able to be raised with your chosen scheme’s resolution service without any additional charge. Nevertheless, it makes sense to be prepared to provide sufficient evidence to support your side of the dispute by ensuring that you draw up a detailed inventory at the start of the tenancy.

If you’re a landlord in the Cotswolds and the Vale of the White Horse looking for a reliable tenant or seeking a property management service that you can trust, don’t hesitate to get in touch with our expert team at Perry Bishop.

Thanks to our many years of experience in the local rental market, we’re your top choice for all your rental property management needs.

The government has proposed increasing minimum energy efficiency standards to an EPC band C on all tenancies by 2028 in England – with a cap of £10,000 to make the necessary improvements. Here’s a list of the financial support that you may be able to access for upgrades to your private rented properties.

1.  THE BOILER UPGRADE SCHEME (ENGLAND AND WALES)

This scheme provides one grant per property to help cover the cost and installation of low carbon heating systems such as heat pumps, at:

£5,000 for an air source heat pump
£5,000 for a biomass boiler
£6,000 for a ground source heat pump

Your property may be eligible if it has an installation capacity of up to 45kWth – which covers “most homes” – and a current EPC with no outstanding recommendations for loft or cavity wall insulation. You’ll also need to live in England or Wales and own the property to be eligible. The scheme will run until 2028.

You can read more about the criteria and the steps to access the funding on the government’s site.

2.  VAT RELIEF ON ENERGY SAVING MATERIALS (ENGLAND, SCOTLAND, AND WALES)

Until 31 March 2027, zero-rate VAT will apply to the installation of certain energy saving materials in residential properties. Your supplier should charge you the reduced rate.

The zero-rate can also apply to “ancillary supplies” involved in the installation. For example, VAT on the installation of an air source heat pump together with new radiators and pipework will all be charged at zero, as the radiators are necessary to
benefit from the heat pump.

You can find the full list of the eligible materials and works on the government’s site.

3.  A GREEN DEAL LOAN (ENGLAND, SCOTLAND, AND WALES)

This loan can be put towards a variety of improvements, such as insulation, heating, draught-proofing, double glazing, or renewable energy generation, such as solar panels or heat pumps.

• Green Deal loans are repaid through electricity bill payments.
• The repayments shouldn’t exceed the savings you made on your energy bill, but that doesn’t mean that your bill savings will match the loan repayments, as it doesn’t take into account increases in energy prices.
• The loan is also linked to your property so it would pass to the new owner if you were to sell up.
• Although the Green Deal Scheme was originally a government initiative, it switched to private backing in 2015.

You can find a list of government-approved suppliers on this government site.

4.  ENERGY COMPANY OBLIGATION GRANTS (ENGLAND, SCOTLAND, AND WALES)

If you have any qualifying tenants from low-income and vulnerable households, they may be able to access an Energy Company Obligation (ECO) grant to support energy efficiency improvements.

• If your property has an EPC F or G rating, the grants must go towards upping that rating to band D or above, and the funding for private rented properties will support “the least efficient homes in bands E-G only”.
• You can encourage eligible tenants to apply for the grant to help improve your property energy efficiency “for years to come by installing electric storage heaters or fulfilling insulation grants such as free cavity wall insulation or loft insulation grant,” according to UK Energy Support.
• The government has shared that the fourth edition of the ECO “will upgrade around 450,000 homes, most of them to EPC band C” over the next four years.

You can check eligibility for a grant on the UK Energy Support site.

5.  EMPTY PROPERTY GRANTS (REGIONAL FUNDING)

Local councils may also be able to offer you some financial support to make energy improvements to your properties.

The empty homes grant in Kingston, for example, can help cover up to £25,000 for thermal upgrades to windows, boiler work and insulation, on properties that have been empty for at least six months.

There may be certain restrictions through local schemes – such as not being able to sell the property within five years of receiving the grant and having to rent the
property through the council’s private leasing scheme for that five-year period – but, if you’re in the private rented sector for the long haul, looking into any similar local schemes could be an option.

Head to your local council’s site to see what schemes may be available.

6.  SMART EXPORT GUARANTEE (ENGLAND, SCOTLAND, AND WALES)

If your properties already have renewable energy, the Smart Export Guarantee (SEG) pays customers for renewable electricity they’ve generated and put into the grid. This could be:

• Solar
• Wind
• Hydro
• Micro combined heat and power
• Anaerobic digestion

Some of these energy sources may also be covered by the zero-rate VAT mentioned in point 2 above, if you’re considering upgrading to renewable energy.

You’ll need to sign up to an SEG tariff with a big energy company, to ensure you’re not simply giving away your energy to the National Grid for free, and should shop around for the best tariff too.

Search “smart energy tariff” and energy suppliers to see what may be available for you.

7.  GREAT BRITISH INSULATION SCHEME

Formerly known as the “ECO+ Scheme”, the government’s £1 billion Great British Insulation Scheme is expected to run from spring 2023 to March 2026, to help homes across the country install new home insulation.

This support will be available to those that don’t already benefit from other government support to make home upgrades.
This is an extension of the existing Energy Company Obligation scheme, as outlined in point 4. Eighty percent of the funding will be available to households with EPC D ratings or below and in the lower council tax bands.

Head to the government’s site to read more about the plans

Article from Goodlord

Whether you’re selling your property or looking for a reliable tenant, kerb appeal couldn’t be more important. Ensuring a prospective buyer or tenant gets the right first impression of your property is key and growing plants will certainly help you to achieve this goal. Read below for our top ideas that will help you achieve this goal.

The wide-ranging reforms for the private sector go much further than many initially expected, with the government calling it “the biggest shake-up of the private rented sector in 30 years” .

The government has proposed increasing minimum energy efficiency standards to an EPC band C on all tenancies by 2028 in England. Read below 7 schemes to help fund your property’s EPC upgrades.

• £5,000 for an air source heat pump
• £5,000 for a biomass boiler
• £6,000 for a ground source heat pump

• This loan can be put towards a variety of improvements, such as insulation, heating, draught-proofing, double glazing, or renewable energy generation, such as solar panels or heat pumps.
• Green Deal loans are repaid through electricity bill payments.
• The repayments shouldn’t exceed the savings you made on your energy bill, but that doesn’t mean that your bill savings will match the loan repayments, as it doesn’t take into account increases in energy prices.
• The loan is also linked to your property so it would pass to the new owner if you were to sell up

• If your property has an EPC F or G rating, the grants must go towards upping that rating to band D or above, and the funding for private rented properties will support “the least efficient homes in bands E-G only”.
• You can encourage eligible tenants to apply for the grant to help improve your property energy efficiency “for years to come by installing electric storage
• heaters or fulfilling insulation grants such as free cavity wall insulation or loft insulation grant,” according to UK Energy Support.
• The government has shared that the fourth edition of the ECO “will upgrade around 450,000 homes, most of them to EPC band C” over the next four years.

• Solar
• Wind
• Hydro
• Micro combined heat and power
• Anaerobic digestion

Property management companies are an invaluable element of the investment process. Many landlords overlook the value that solid management can bring. From sourcing quality tenants to ensuring that all legal requirements are met, an excellent management team frees up the landlord’s time to focus on doing what they do best.

An Adaptable Approach

Generally, property management companies work in a very flexible manner. This means they develop relationships with individual landlords, building a working pattern favouring all parties.

Some landlords prefer to work ‘hands-on’ and seek the assistance of a management team only to advertise the home. Whereas other investors prefer to sit back and hand over complete control.

What Does a Property Management Company Do?

Firstly, a management company will advertise the home. This will consist of sourcing a photographer, writing captivating descriptions and creating detailed floorplans. From here, they can conduct viewings and answer any queries prospective tenants may have.

Once a tenant is acquired, the management agency will conduct background checks on the individual and arrange for holding deposits to be taken. From here, they can deal with drawing up the tenancy agreement, ensuring that it is legally binding.

During the tenancy, your management will conduct regular property inspections and deal with any queries the tenants may have. They will also collect the rent on your behalf.

In the unfortunate event that you need to evict tenants, they will handle the legal complexities this situation forces.

Finally, your management company will conduct end of tenancy checks, deposit releasing, and organise the newly vacant property ready for fresh tenants.

Property Management Companies Will Thoroughly Vet Tenants

The first, and perhaps most important, reason to use a property management company is to ensure you have first class, reliable tenants in your property.

Not only do they have the expertise and experience to acquire quality tenants, but they have the process of conducting background checks perfected. Meaning, your property will be occupied by tenants who pay on time and take the utmost care of the home.

Hiring Management Can Save You Money

Understandably, some landlords are concerned they will not receive the return on their investment when hiring a team to oversee the property. However, many are surprised to hear hiring the right team can save them huge amounts of money in the long term.

Firstly, it is much less likely that the property will sit empty, and therefore as the owner, you will not attract the costs associated with void periods.

Secondly, management companies often develop strong working relationships with those who specialise in property maintenance. This means the upkeep of the property can be dealt with swiftly, generally attracting much lower charges in return for loyal custom.

A Point of Contact

Management companies become the first point of contact for your tenants. There is no need for your tenants to have your personal contact information and can liaise directly with the team, who will get in touch with you where necessary.

This relieves pressure on you as the landlord, and gives tenants the confidence to know exactly who they should contact should they have any queries.

Property Management Ensures Legal Compliance

There are many legal complexities related to investing in property.

Management companies can ensure a tenancy agreement is created and signed which benefits and covers both landlord and tenant. In addition to the contract itself, they will deal with all necessary property requirements such as carbon monoxide detectors and smoke alarms.

When to Hire a Property Management Company

You Want to Be A ‘Hands-Off’ Landlord – People embark on property journeys for many different reasons. Some landlords enjoy being in the mix and working closely with their tenants. Others prefer to take a back seat and let someone else handle the daily running of the property. For those who favour this latter approach, a management company will be required.

You Have a Growing Portfolio – For landlords with an extensive portfolio, it can become physically impossible to manage the properties alone. Marketing the homes and arranging tenant viewings is a time-consuming task, especially for landlords who have a career separate from property investment.

You Don’t Live Close to The Rental Home – If you have invested in property away from your location, as many landlords do, you may be lacking the required local knowledge. This expertise allows you to instruct the best professionals for any issues the tenants may need rectifying. Management companies can fill this gap, enabling your tenants to be content in the property.

Perry Bishop are your local property management experts for the the Cotswolds and the Vale of the White Horse area. Contact us today to chat with a member of our friendly and experienced team.

We care about property, we care about you.