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Understanding Tenancy Deposits

written by Tonya

I have worked as a lettings Agent for over 10 years and one of the trickiest parts of the job has always been handling deposit disputes.

It’s very hard now for a Landlord to take money without good reason as all deposits must legally be registered and held in a government-backed tenancy deposit scheme. The schemes are The Tenancy Dispute Service, My Deposits and Deposit Protection Service. I use the Deposit Protection service (DPS) and your landlord or agent must legally register your deposit in one of the schemes within 30 days.

https://www.depositprotection.com/

https://www.mydeposits.co.uk/

https://www.thedisputeservice.co.uk/

If the court finds a landlord hasn’t protected a deposit, it can order the person holding the deposit to either:
• repay it to you
• pay it into a TDP scheme’s bank account within 14 days

It can also order the landlord to pay you up to 3 times the deposit within 14 days of making the order!

How do I get my full deposit back? This is a question most Tenants ask and something that always causes a bit of a stir at the end of Tenancy.

You are given an inventory at the beginning of the Tenancy, this is your guide on how to leave the property. Go through your inventory line by line ticking off what is okay and what is not, this is what an agent will do so it is a very thorough check.

Also check any clauses you have in your agreement such a carpet cleaning clauses or oven cleaning. If you are unsure ask your Agent or Landlord for your check out obligations. If you have had professional cleaning keep receipts, don’t rely on your agent of Landlords checkout, do your own. Take timed and dated photographs the day you leave and mark your own inventory. Some Tenants try to hide damage I.e. rugs over carpet burns, this will not work and it’s much better to be honest or rectify this yourself before the end of tenancy.

I am a firm believer in being fair, if you know you have caused damage the right thing to do is repair it. Some Tenants believe they have paid enough in rent and that the Landlord should just lump it, this is not a fair attitude to have. You have paid rent to live in a property which would have gained wear and tear and which the landlord would have had to maintain and keep in good repair for you. I have many landlords with just one property, and most with mortgages to pay on them so not all Landlords are rolling in it which is often the misconception from Tenants.

When you lease a car you pay for any damages, when you rent a holiday home you would have to pay for any breakages/damage so there should not be a different attitude towards landlords and rental properties.

Landlords should also play fair, I believe if a Tenant has been a great Tenant and never missed a rent payment, always been very cooperative and polite then there are areas they could be let off with if minor. Some landlords believe the property should come back to them in the same condition, this is impossible for a property that has been lived in so this must to be taken into account.

Now, we also have the landlords that just want the whole deposit, the unreasonable and greedy ones. This, I find hard to tolerate! I had a landlord that would do this on every checkout, whatever amount of deposit registered he would say to deduct full amount, with no good reason and not taking into account fair wear and tear, I ceased management of his properties!

Fair wear and tear would be light scuff marks to walls, a little wear to carpets etc, if you have moved into a property with old fixtures and fittings then the landlord cannot claim betterment so please be aware of this. Even if you have been responsible for a further stain on carpet, if these were stained on moving in or were years old anyway the landlord does not have a leg to stand on.

The House of Lords defines fair wear and tear as: ‘Reasonable use of the premises by the tenant and the ordinary operation of natural forces’ So when do natural forces become in excess of what is ‘ordinary’

The general ‘rule of thumb’ is that an item in a tenanted property will have an average lifespan of five years but an adjudicator will also take into account number of occupants, length of tenancy and quality of item in question.

Your landlord must return your deposit within 10 days of you both agreeing how much you’ll get back. If you’re in a dispute with your landlord, then your deposit will be protected in the scheme until the issue is sorted out and can take several months to arbitrate in some cases so it’s always better to try and settle outside the scheme.

If however the landlords is being very unreasonable and trying to charge you unfairly then it would be in the Tenants interested to take the amount to dispute. The schemes are in place to protect Tenants not landlords so they will work in the Tenants favour to award what is fair based on evidence provided by all parties which is assessed by a third party adjudicator.

Written by Tonya

April 14, 2019 0 comment

Property Ideas

written by Rea

Tonya vs Rea – The £1000 Challenge!

We recently set ourselves a challenge of making over under £1000 using High Street Interiors Tonya worked on a children’s craft room whilst I made over a lounge/diner.

Black and Greys are currently very on trend and here ill break down how I created this living room look for just £850 turning this very dull grey blank canvas into a chic living area!

Before

After

Cover Me……

Starting with the wallpaper, I was after an industrial/grey style paper and came across this stunning wall covering by Holden. The paper has a slight texture to it and some areas of metallic which gives the wallpaper a very luxurious feel/look and what a bargain at just £11 per roll! Covering just one or two walls is plenty to help transform a bland room and add some texture.

Home Comforts…..

I found two beautiful accent rugs at Wayfair and opted for mixed tones of white/grey and blacks. I placed one in the dining room as well as the lounge to bring the two rooms together. The rugs feel amazing and look far more expensive than the £80 each I paid for them.

Let there be light…..

Keeping with the Industrial look I went on the hunt for some grid cage light fittings and come across these beauties, they really finished the look off nicely and cost just £19.99 each. The black pendant and flex helped finish the look off nicely.

I also come across a lovely grid style tray from Homesense which matched in perfectly with the light fittings!

Frame it….

A living room isn’t complete without some personal touches so I used this bare wall to create a home gallery of my favorite photos, the frames are from Ikea and add a touch of class to the look.

I also added a touch of blue with two stunning prints from Ikea.

Can a girl ever have too many cushions…..?

Cushion shopping has to be one of my favorite parts of accessorizing a room, and no….you can never have too many scatter cushions. I always opt for feather filled cushions as you can prop them up easily and they tend to keep their shape longer. Here we have a mix of greys/silvers/patterns from Homesense, The Range and BM Stores. These high-street shops have a fantastic range of cushions to suit any budget.

The Little Details….

This has to be my top buy, this gorgeous glass and metal nest of coffee tables was just £45 from Ikea. I have to say it looks so trendy and the quality is there too, everyone who has walked in recently has asked me where it’s from and have been blown away with the cost.

Now it’s easy to get carried away with coffee table accessorising and there’s a thin line between too much or too little but I always opt for a tray, candle, vase and book.

Here you will see I have gone for a lovely mirrored/black tray and candle, slim line vase and silver table décor (Ideal for sweets or nibbles) and a stunning marble effect box storage box. Not forgetting my little black of Chanel which should be on every coffee table!

The mirror was my most expensive Item at £200 but what a statement, This stunning mirror is from Mason Du Monde and really brought the room together.

Below you can find a full product breakdown which I hope will help you with creating my trendy look on a budget.

Rugs – Wayfair – £80 each
Cushions 1 – Grey Velvet pack of two – Homesense £19.99 2- Croc Effect Dark Grey Cover 3 – The Range £6.99 pack of two 4 -Metalic Silver – B & M Store – £5.99 each
Coffee Table – Ikea – £45
Tray – Homesense – £9.99
Vase – Homesense – £4.99
Silver Table Décor – Homesense – £5.99
Black Quartz Coaster – Ebay – £35
Mini Chanel Book – Amazon – £10
Marble Storage Box – Homesense – £16
Velvet Basket – B&M – £4
Wallpaper – B&Q – £11 per roll (Total £55)
Light Fittings – Iconic Lights – £20 each
Photo Frames- Ikea – £12 each
Mirror – Mason De Monde – £200
Blue Prints and Frame – Ikea – £25 each
Black Dining Table – Ikea – £30
Black Dining Chairs – Ikea – £20 each (80)
Silver Dining Table Bowl – Homesense – £9

I will always love high end interiors but as far as High St Interiors go I have found these products excellent value for money proving you can create a designer look on a high street budget.

April 8, 2019 0 comment

Property News

Landlords, Dilapidation Deposits… What’s new?

written by Tonya

On the announcement of the recent Tenant fee ban there was further blow to Landlords and Agents on hearing that from the 1st of June 2019 we will no longer be able to hold more than 5 Weeks Rent as a Deposit. This will now be the law and we must also refund any surplus on deposits we already hold at renewal stage which is just an administrational nightmare. This is for all Agents and Landlords and any person failing to follow this will be breaking the law and susceptible to very costly fines.

With this now in place Landlords and Agents will have to protect themselves better from the offset and ensure we are choosing the right Tenants to look after our properties.

How do we do this?

Firstly, I can’t see Landlords being as flexible on accepting pets with the new cap in place, most contracts would state that professional fumigation would be required by Tenant at end of tenancy which can be pretty costly in itself and that’s before any other cleaning or damage that might need to be accounted for. I can’t see there being enough room in the deposit, especially on the lower end monthly rental figures. For this reason, Landlords may have to restrict renting to Tenants who have pets.

The reason why 6 weeks rent worked for most is because we had a 1 month’s rent for potential rent arrears ( some Tenants decide to not pay the last month’s rent despite being told they need to) plus a couple of weeks left for minor repairs and or cleaning. Two month’s rent would have been the norm for pets to allow for fumigation plus the above and in other more risky tenancies we may have charged more to protect ourselves.

Another area we might need to look at is ensuring rent protection is put in place for every tenancy, this would mean Landlords have peace of mind that they will get their rent payment no matter what and also be able to use this at the end if the Tenant doesn’t pay their last month’s rent, leaving the full deposit for any dilapidations. We could further protect our financial risk by also having a guarantor, this is really as much as we can do as Landlords/Agents before taking full rent in advance for the whole term.

Make sure you have an agent who has your best interests foremost and that is fighting to find you the best tenant not fighting for personal commission. In an industry full of young negotiators all on a low basic with strict targets it’s hard to avoid the “let and forget attitude” as I call it. I feel for the trainees as it’s a very tough and target driven industry but at the same time it’s no good for Landlords. This was one of the reasons I chose to leave agency and set up on my own, none of my colleagues I work with now are on personal commission or targeted, we all work as a team and only want the best for the landlords we look after.

The dispute centres are set up to protect tenants therefore it is fundamental that Agents and Landlords are setting up new tenancies accurately and ensuring Tenants understand their checkout obligations.

There are plenty of Landlord’s out there who take the mick when it comes to deposit deductions and those wanting to charge tenants need to first of all make sure they have offered the property in the best condition at the start of the tenancy. They also need to make sure they have done their job as managing agent by paying regular visits to their tenants and to advise the tenant throughout the duration of any issues they may face at the end.

Paper trail is crucial for this, without it you might as well not even hold a deposit.

There are lots of cases in which the dispute centre has (in my opinion) favoured a tenants case too one sided, for example only last week I had a landlord who lost a claim for replacement carpet on a brand new carpet that was supplied to a tenant of which they burnt badly with an iron. With her high standards as a Landlord she chose to replace this for the new tenancy again and was only awarded a £50 contribution towards the cost of her new carpet from the dispute centre, something of which I will never understand nor agree with.

Its normally always better for a landlord to try and settle outside of arbitration so communicate with your tenants and try to reach an agreement yourself!

It’s hard to not feel that as a Landlord you have little protection and the only way to deal with that is to accept it for what it is. Don’t have unrealistic expectations that your Tenant is going to leave your property immaculate and don’t assume you will win your disputes regardless of how black and white it might be, assume the opposite and hope for the best.

Also remember no Agent in the world can guarantee a risk free Tenancy, don’t expect them to provide the impossible…. us Agents can’t wave a magic wand and get your Tenant to pay rent or have them keep the house clean and damage free, its simply unrealistic!

Remember it’s a business, it’s not personal. No business is plain sailing, no tenant or tenancy is perfect and you may have trouble along the way. If you can adjust to this mind set and remember that the tenant that may have left a burn mark on one of your new carpets has also paid your mortgage for the last few years you will be a much happier and content Landlord.

February 22, 2019 0 comment

Property News

Bleak times ahead for the Lettings Industry

written by Tonya

Are Landlords Giving up?

There has been a rising number of Landlords exiting the market, which has left me worried on where this will leave the industry as a result. I, myself as a Lettings Agent have seen my own clients off load due to the concern in rising costs, continued legislation change and what I guess feels at times a very one sided industry. I am also a Landlord and I can’t help but also feel as though we are being pushed into a corner and driven out of the market.

In November 2018, the East of England was the highest region for landlords selling up and Landlords leaving the market was 100% higher than the national Average.

With so many Landlords off-loading it is likely that the supply of rental properties will drop which could mean rents increase due to there not being enough property to meet Tenant demand, this could actually make the market much worse for Tenants and long term renters as their rents are likely to increase and could also mean there its lots of competition for the same property.

The Tenant fee ban has now become law and will become enforceable from the 1^st of June 2019, This is terrible news for the industry and something I believe is completely unfair, one sided and a reckless move from the government which will loose the industry millions not to mention all the unfortunate people who will loose jobs thanks to their decision. As I expressed in my last blog the ruling has not been thought out nor the bigger picture seen by our government.

This will have a knock on effect as Estate Agents are likely to pass on this cost to their landlords which again may mean Landlords increase their rents to cover this cost or mean further Landlords start to sell up. The fee also applies to private Landlords who will no longer be able to charge for any administrational or referencing costs which means estate agents and landlords will have to still do the same level of work, admin and Tenant checks at no charge. Lettings portfolios will be less lucrative and I fear lots of Lettings agencies may have to make redundancies and possibly smaller Agents not being able to cope at all.

Although all seems pretty bleak for the Lettings Industry I predict that this year will be a good buyer’s market due to the amount of property that will need to be sold, this is good news for Investment buyers who are in it for the long run and first time buyers in getting their feet on the property ladder, there should be some good deals to be had and buyers could be in a very good negotiating position.

I have been out this weekend viewing property and have put some offers over on what could be some fantastic investments, I will keep you updated on how these deals go!

Tonya x

February 10, 2019 0 comment

Insider Tips

Slow and steady wins the race…..

written by Rea

Are you thinking about Investing into property?

If you’re in it for the long run you can’t lose….

Today it is very hard to make a ‘quick buck’ flipping a property (buying/renovating/selling) due to shortage of suitable property and taxes, however in regards to securing your future there still isn’t a better way then with a property portfolio!

Here are some of my tips…

Start with low value properties
If buying a leashold property ensure you have a healthy lease length remaining to see you through to retirement age
Check the service charge/ground rent (I/A)
Pick an area in demand to avoid any future void periods

Regardless of what others may be telling you at this uncertain time, don’t be scared to invest!

If you’re in it for the long run you can’t lose….

Think about it, your tenant is paying your mortgage monthly for you plus you property is growing in value/equity as you sleep, it’s a win win.

Keep following us for more Investing Tips.

Rea

January 5, 2019 0 comment

Insider Tips

Another Buy to Let added to the portfolio….

written by Rea

I’m excited to talk about this little gem of a studio in Chelmsford I have just snapped up.

The studio cost me £105,000 and will achieve a rental figure of £525pcm, that’s a healthy yield of 6% (before costs)

It’s on the outskirts of Chelmsford City and is located in a quiet cul de sac, with bus links and local amenities all within walking distance.

The current tenant has been in situ for over 7 years and is likely to be there long term which is great for us and saves money paying an agent to find a new suitable tenant.

I went for this apartment as it is what we call ‘virtually freehold’ the lease is for a whopping 999 years (from 1 January 1980) The ground rent AND service charge is just £788 per annum…..If you see something like this snap it up!

These types of property are safe bets when it comes to investing especially if you are investing for the first time.

A wise friend of mine taught me to try to invest in several small buy to lets properties, rather than a couple of large houses. Reason being if the very worst should happen and you have a void period or your tenant stops paying rent, the costs are a lot more manageable to cover. Secondly In my personal opinion I believe you will get a better long term return on 3 – 5 smaller properties.

Keep following us for my property tips….Happy Investing!

Rea

June 18, 2018 0 comment

Property Ideas

Garden Makeover!

written by Rea

I wanted to showcase this stunning garden transformation by my talented husband Tommy, when we purchased this bungalow the entire backyard was just concrete and pretty depressing.

We ripped out the concrete and went for a light grey porcelain (this covers the majority of the backyard as we do not have the time to regularly mow a large lawn)

Top reasons we went for porcelain:

They are frost proof/waterproof ensuring a long lasting patio
They are fade/scratch resistant
They are low maintenance
They are non porous (meaning there are no holes for dirt to accumulate)
The majority of porcelain is slip proof which is great in this country with all the rain!

We have a little lawn area which gives us just enough greenery and somewhere for the baby to play.

Like most Brits we love a BBQ so rather than spend a fortune on a fancy outdoor grill my husband built a cooking area out of bricks, giving us lots of worktop/preparation space.

Next we wanted to create a special focal point and you can’t beat the sound of running water in your garden. So we designed a contemporary decorative wall feature with cedar paneling/slate/water feature and raised beds (made from the leftover slabs) these are great for planting and we chose a lavender which gives off a lovely burst of colour, great scent and the Bees love it!

We added some electrics to highlight key areas of the garden (behind the large potted box hedge balls, on the cedar paneling and BBQ area) it looks lovely in the evening.

Lastly as I love to cook we added a cute little herb garden in which I look forward to looking after with my son.

All in all we have created a low maintenance garden with a contemporary feel out of quite a small space and believe this could add at least 10% onto the value of our home.

Follow @officialpropertytwins Instagram page for more gardens designed by The Cube 1994.

Rea x

May 10, 2018 0 comment

Property Ideas

Does a well maintained garden add value to your home?

written by Rea

The short answer is YES!

We say keep it simple, manageable and according to HouseBeautiful Magazine a shed is a must have. According to their research (June 2017) a whopping 82 per cent of property professionals claim a a decent sized shed is the most cited feature to boost value.

To achieve a low maintenance garden utlilise as much of the space with patio/slabs or shingle. Go for hardy evergreens, once established they will require little care as well as some pretty perennials which last for a couple of years and require minimal upkeep.

Next up is my own garden transformation!

Rea x

May 10, 2018 0 comment

Press

Grand Designs Live 2018

written by Rea

What an amazing day we had at Grand Design Live (Excel London) we had the pleasure of taking over their Instagram for the day and meeting the wonderful Kevin Mccloud!

Firstly we have to admit the show has really opened our eyes to plastic pollution thanks to the teams efforts to raise awareness and a fantastic talk by Friends of the Earth.

We were saddened to learn about the huge amounts of species tragically effected by plastic and shocked to find out the average plastic bag – used for just 12 minutes, will not disappear for up to 1,000 years!

We will certainly be doing our bit to research more on this and ways in which we can reduce plastic in our homes.

Please visit https://friendsoftheearth.uk/plastics to learn more!

We really enjoyed visiting all the exhibitors stalls from floating chaise lounges to a camper van made out of salvaged for sale boards….this truly is a home show on a grand scale!

Our favorite stand had to be The Vintage Fridge Company…. they specialise in the refurbishment and supply of original “Ice Box’s” and vintage refrigerators, how cool is that…..?

They also had beautiful cast iron fireplaces, floor tiles and even a vintage shower!

We had the pleasure of meeting some of the lovely team from Grand Designs TV show (one of our fav programmes) and Kevin was an absolute delight to chat with, we even managed to squeeze in a Boomerang!

We cant wait for next year, so make sure you get yourself down to the show open until May 13th!

To book your tickets visit https://www.granddesignslive.com/

To see all our favorite photos from the day please follow our Instagram page @officialpropertytwins

Tonya & Rea

May 10, 2018 0 comment

Press

We are taking over Grand Designs Live!

written by Rea

We are so excited to confirm we are attending this years Grand Designs Live next Wednesday.

We will be taking over their Instagram page for the day showcasing all of our favorite products/stalls and doing some Q & A with Kevin.

Grand Designs Live, proudly sponsored by Anglian Home Improvements, returns in 2018 from 5 – 13 May at London’s ExCeL and from 10 -14 October at Birmingham’s NEC. Based on the Channel 4 series and presented by Kevin McCloud, the show offers visitors top expert advice, new product launches and specialist exhibitors in six project zones. Whether you’re planning a self-build, renovation or are adding the finishing touches, find ideas and inspiration for your very own Grand Design at this multi-award winning event.

Book your tickets here:

www.granddesignslive.com

We cant wait!

May 3, 2018 0 comment