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  • LANDLORD LATEST NEWS

    Michael Gove, the secretary of state for levelling up, is looking to bring to parliament the Renters Reform Act after the Kings coronation this month!

     

    This is intended to give another shake up within the industry, including the much talked about banning of the Section 21 notice. The Section 8 notice will be amended to include new ways of gaining access to your property if the landlord is looking to gain possession of a property to either move back in or sell the property, as well as the current form where the tenant is in breach of their tenancy.

     

    This will be an interesting legislation and could drive more landlords to exit the market, where rents are already at an all time high due to the lack of stock around.

     

    Other news, the EPC grading of bringing all new and renewing tenancies to a ‘C’ from it’s current ‘E’ was due to come into force in 2025, with all remaining properties being a ‘C’ by 2028. This is looking to be amended to all properties being a ‘C’ by 2028.

     

    And lastly, shockingly, Suella Braveman is planning a crackdown on odious landlords who ask for sexual favours in exchange for rent! Dan Wilson Craw, Deputy Director of Generation Rent, recently has said “…….. Research conducted by Generation Rent and Mumsnet estimates that over 200,000 women could be victims of ‘Sex for Rent’ in the United Kingdom.’  A new law is being looked at being created to stop predatory landlords exploiting tenants for discounted rent.

     

    Let me help you have a more stress free 2023 by managing your properties. Email me for an informal chat on sharon@moveon.biz

    Sharon

    Cottages with white windows and doors next to a stream or river.

    LANDLORDS SWITCHING TO USING LETTING AGENTS

     

    A recent survey by USwitch found 63% of private landlords are turning to letting agents due to the current complexity of self-managing their properties.

     

    The top 3 concerns Landlords in the survey cited were;

     

    • False information on applications forms
    • Repairs taking up too much time
    • Being up to date with forever changing legislations

     

    Using reputable agencies is so important when making this leap and I am proud to say Move On are one of the top agents in the area for being widely known as the experts in lettings.

     

    From the moment an application is received, a process of due diligence is put in place to make sure the background checks tell us the proposed tenant has passed our strategic checks. But we don’t stop there! Our regular property visits during a tenancy and yearly appraisals, ensure our landlords are fully compliant with the latest up to date changes within the forever changing legislations as well as conducting rental reviews, which means our clients can be confident their individual property is receiving individual attention!

     

    Let me help you have a more stress free 2023 by managing your properties. Email me for an informal chat on sharon@moveon.biz

     

    SharonCottages with white windows and doors next to a stream or river.

    WHY RENT GUARANTEE IS IMPORTANT!

    As a landlord you should be investing in a rent guarantee insurance. The benefit outweighs the costs and give you complete peace of mind.

     

    At Move On, why strongly recommend this to all our landlords and if your agent cannot offer this to you, then perhaps the tenant hasn’t passed the necessary referencing?

    • NO EXCESS
    • RENT PAID ONCE TENANT IS ONE MONTH IN ARREARS.
    • RENT PAID UNTIL THE TENANT VACATES
    • ALL COURT COSTS PAID
    • ALL LEGAL COSTS FOR SOLICITOR PAID

     

    As an agent, we do not have a crystal ball into the future. A tenant can pass all the necessary referencing, but their situation can change – we only have to look at Covid recently to know, life is unpredictable.

     

    With the cost of living and energy bills going up, this can have an impact on your tenants outgoings.

     

    Costs vary for the insurance, but typically they are between £300 and £400 per annum –  a lot less than losing month’s rent!

     

    Having worked in the lettings industry for 40 years, owned Move On for 17 years and have a personal portfolio of properties. I have probably gone through most challenges and the systems I have put in place pre-empt so many losses that a lot of landlords’ face. That is why Move On are known locally as the lettings experts.

     

    Let me help you have a more stress free 2023 by managing your properties. Email me for an informal chat on sharon@moveon.biz

     

    Sharon

    YOU CAN’T HIDE FROM HMRC BIG BROTHER!

    I have often stated in previous blogs and at various speaking events, that it would only be a matter of time before the government would dot the dots!

     

    It was recently reported in the Daily Mail, of a landlord who had received a letter from HMRC stating the following.

     

    ‘Our information shows that you have put a deposit in a ‘Tenancy Deposit Scheme’. We have compared this information with what you have told us on your Self-Assessment (SA) tax return for the year ending 5 April 2021… and suggests you may not have told us about all of your rental income.’

     

    It really was only a matter of time, since they introduced the law in 2007 that all deposits must be protected or be fined 3 times the deposit given.

     

    Interestingly enough, I was speaking to another landlord just before Christmas who genuinely thought she only had declare the rental income if she earned more than her annual tax free income!

     

    Don’t get frazzled by all the red tape!

     

    Ring me or email me sharon@moveon.biz with your phone number.

     

    Let’s make 2023 a better year together.

     

    Sharon

    CAPITAL GAIN THRESHOLD!

    In the recent budget, it was announced the government are reducing the threshold for Capital gains.

     

    Landlords will be hit by this, if you are thinking of selling a property, but let’s see what it means.

     

    Person leaning over desk with calculator and folded-over notebook. Typing into calculator.

     

    Presently everyone who sells a capital asset has the first £12,300 exempt from paying anything. This is being reduced to £6,000 in 2023 and £3,000 from 2024.

     

    Depending on which tax bracket you fall in to, the additional profit made will be taxed. If you are a 20% taxpayer, you will pay 18% on the profit. If you are a higher rate payer, 40% and above, you pay 28%.

     

    EXAMPLE

    If you purchased a property for £200,000 and sold it for £300,000. For simple terms, you have made £100,000 (there are other costs you can deduct).

     

    Tax year2022/ 2023 – In the present tax year you would deduct the first £12,300 pay tax on the remaining £87,700.00. At 18% this would be £15,786.00 and at 28% this would be £24,556.

     

    Tax Year 2023/2024 The additional amount to pay in 2023 due to threshold being lowered to £6,000 would be £1,134 at 18% and £1764 at 28%.

     

    Tax year 2024/2025 Then an additional amount in 2024 due to the threshold being lowered to £3,000 would be  £540 at 18% and £840 at 28%.

     

    If we tried to look at the glass half full aspect, they did not match the tax to pay to your earnings tax!

     

    Don’t get frazzled by all the red tape, let Move On take the stress away from you!

     

    Fancy an informal chat any time, then email me sharon@moveon.biz with your phone number.

     

    Sharon

    PROPERTY HEALTH CHECK LANDLORDS – MY GIFT TO YOU

    Great news for local Landlords

     

    Until the end of February, Sharon is offering a FREE 45 minute consultation with you.

     

    Your meeting will be with Sharon personally and within the meeting she will check the following:

     

    Check your rental property is up to date with paperwork legislation and if not what you need to do.

     

    A desk top of the current valuation of your property.

     

    Show you how you can increase your income.

     

    Do you have a problematic tenant?

     

    Let’s see if we can help you.

     

    Don’t get frazzled by all the red tape!

     

    Grab yourself a free consultation today by ringing the office or emailing Sharon directly sharon@moveon.biz with your phone number.

     

    Let’s make 2023 a better year together.

     

    Ring me or email sharon@moveon.biz with your phone number to get booked in!

     

     

    DO YOU HAVE AN ELECTRICAL CERTIFICATE?

    I was recently chatting to a landlord who self-managed his properties and was having a problem with one of his tenants who had fallen into rent arrears. Despite trying all they could to help the tenant, it was clear the arrears were not going to be made up and they would continue to increase.

    The landlord was picking my brain on what paperwork was required, in the event he had to go down the court route.

    It was apparent to me that he was a good landlord and had always used an agent (not Move On) to set up a new tenant for each property and then let the tenancies rollover.

    After going through the paperwork, it was clear he had not had any electrical certificates conducted on his properties and he was completely oblivious to the fact that he needed one. He was under the impression that they would only be required for new tenants moving in after April 2021 and as none of his tenants had moved out, he hadn’t instructed his electrician to do them.

    Part of the court paperwork is to include all legislative paperwork. Also in the court waiting room is a representative from Shelter, who will go through the tenant’s paperwork as well.

    I advised him to get the electrical certificates completed ASAP.

    For the avoidance of doubt:

    SINCE APRIL 2021 – ALL RENTAL PROPERTIES MUST HAVE A VALID FIVE-YEAR EICR CERTIFICATE!

    Feeling deflated? Exhausted with all the changes? Then let us take care of your property needs. We promise to hold your hand throughout this process, giving you less stress and more freedom!

    If you fancy an informal chat any time, then email me sharon@moveon.biz with your phone number.

    Sharon

    NEW RULES FOR SMOKE AND CO ALARMS IN RENTAL…

    NEW RULES FOR SMOKE AND CO ALARMS IN RENTAL PROPERTIES

    As of the 1st October 2022, changes to the regulations for smoke and carbon monoxide alarms in private rented properties are coming into force.

    Changes like these are frequent in the rental sector, and it’s vital that you as a landlord, and we as agents, are up to date on the latest legislation.

    We’ve put together a short guide below to explain the changes coming up and answer the most common questions we’ve had… Read more “NEW RULES FOR SMOKE AND CO ALARMS IN RENTAL PROPERTIES”

    Abolishing Section 21!

    ABOLISHING SECTION 21!

    The Government’s levelling up Rental Reform white paper bill has included this in detail.

    Section 21, often referred to as the ‘No Fault Eviction’, has been a security blanket for landlords. If you as a landlord wanted your property back, then a Section 21 will guarantee you your property back.

    By abolishing the Section 21, this will no longer be the case. The tenant will be able to give 2 months’ notice at any time and the landlord must give a reason as to why they want the property back and that reason must be one of the grounds of a new updated Section 8 notice.

    If I look at the occasions we have issued a section 21 over the last 30 odd years (and there really has not been that many), 95% of the time, it was because the tenants were in rent arrears, the landlord wanted to sell his property or the landlord wanted to move back in. The new Section 8 notice will have additional grounds to cover these reasons.

    There are additional caveats to these. If you decide you want to sell the property and give the tenants notice, you must prove it was on a portal for sale and if your situation changes and you decide to put the property back up to rent, then there must be a gap of 3 months between the tenants.

    If you are seeking possession because the tenant is in the minimum 2 months of arrears and they decide to pay a nominal amount that takes them under the 2-month threshold the day before court, then you will not regain the property (as it is now), however, if the tenant does this 3 times in 3 years, the court will give the property back.

    Feeling deflated? Exhausted with all the changes? Then let us take care of your property needs. We promise to hold your hands throughout this process, giving you less stress and more free!

    If yancy an informal chat any time, then email me sharon@moveon.biz with your phone number.

    Sharon