Tag Archives: free tips for bristol property landlords

What documentation should Bristol landlords give their tenants?

We’re all busy here at City Rental Services dealing with new tenants for rented accommodation across Bristol, and handling new tenancy agreements in various BS postcodes.

Registering Deposits

As we all know deposits have to be registered with a registered deposit scheme and the relevant documentation has to be issued.

Advice from City Rental Services on documentation bristol landlords should give tenants

Deposits should be protected and documents served within 30 days of receipt of the funds.

Here are the guidelines on documentation to be issued to tenants after registering their tenancy deposits in an approved scheme.

  • Copy of the deposit protection certificate/receipt
  • Prescribed Information
  • The deposit protection scheme leaflet for tenants

It’s a good idea to check with your deposit scheme’s rules and guidance as they may require you to give your tenant further information to the standard requirements listed above.

Deposits should be protected and documents served within 30 days of receipt of the funds.

The tenancy deposit scheme with which you have protected your deposit with will provide you with your tenancy deposit certificate and receipt.

Under legal requirements, it is required that you give a copy of the deposit protection certificate and prescribed information to the tenants, and any third parties that have contributed to the deposit. I.e. if a parent has contributed to the deposit they also require a certificate and prescribed information.

Failure to give the prescribed information to the tenant or any third party can leave the deposit registration invalid, and landlords may be subject to penalty.

The RLA strongly suggests that all recipients should sign a document to confirm they have received the prescribed information, along with the accompanying documents.

Here at City Rental Services our T’s and C’s clearly state that all applicants agree to receive emails from us and with that in mind, all essential documents are emailed at the very beginning of our application process to both the tenants and the guarantors.

If you’re looking for advice on managing rented accommodation in Bristol, please call into 58 Gloucester Road to see us – as an independent letting agency in Bristol, we’re here to help.

Will Mortgage Relief changes in 2017 hit buy-to-let landlords in Bristol?

The team at City Rental Services have been speaking to some concerned buy-to-let landlords in Bristol recently – and their cause for concern is over upcoming property legislation for 2017 around the subject of Mortgage Relief.

Advice for buy-to-let landlords in Bristol from City Rental Services

From 06th April 2017, the Government is introducing new legislation affecting the current mortgage relief rules for property investors and property landlords.

This measure will restrict relief for finance costs on residential properties to the basic rate of Income Tax. This will be introduced gradually from 6 April 2017.

Finance costs includes mortgage interest, interest on loans to buy furnishings and fees incurred when taking out or repaying mortgages or loans. No relief is available for capital repayments of a mortgage or loan.

Landlords will no longer be able to deduct all of their finance costs from their property income to arrive at their property profits. They will instead receive a basic rate reduction from their income tax liability for their finance costs.

Landlords will be able to obtain relief as follows:

  • in 2017 to 2018 the deduction from property income (as is currently allowed) will be restricted to 75% of finance costs, with the remaining 25% being available as a basic rate tax reduction
  • in 2018 to 2019, 50% finance costs deduction and 50% given as a basic rate tax reduction
  • in 2019 to 2020, 25% finance costs deduction and 75% given as a basic rate tax reduction
  • from 2020 to 2021 all financing costs incurred by a landlord will be given as a basic rate tax reduction

This could potentially restrict the profitability for some buy-to-let landlords in BS postcodes, leading to a slowing down of property investment in the city.

You can read more about the potential legislation and upcoming changes here.

What we would advise at this stage is not to panic, or to pull any potential property investment deals, but to instead monitor and review the legislation and make a fully-informed decision based on your existing property portfolio.

If you’re looking for advice on rented accommodation in Bristol, please call into 58 Gloucester Road to see us – as an independent letting agency in Bristol, we’re here to help.

What impact will Clause 24 have on property landlords in Bristol?

We like to use our rented property blog to inform and educate tenants and property landlords alike, and at City Rental Services this week we’re discussing a big potential issue for buy-to-let landlords – the Clause 24 update.

advice for Bristol property landlords from City Rental Services

We came across a useful update on the Clause 24 topic from an industry website – and it is worth reading the entire update here.

In essence, two property landlords are mounting a legal challenge to the entire process and policy of the proposed tax grab that could affect landlords across the country. The article covers the issues and updated action in depth.

The article highlights ways in which landlords in Bristol can support this legal challenge, including a dedicated Facebook Page and a newsletter sign-up.

You can review the full story here in full.

We recommend that all our landlords review this story and get involved.

If you’re looking for advice on rented property in Bristol, please call into 58 Gloucester Road to see us – as an independent letting agency in Bristol, we’re here to help.

The importance of honest valuations for Bristol rented properties

The team here at City Rental Services are looking ahead to 2016 – and one of the hot topics we always come back to every year in our Gloucester Road offices is that of the importance of honest valuations for rented properties in Bristol.

advice on Bristol rented property valuations from independent letting agency City Rental Services

In recent years property landlords have benefitted from a colossal increase in the demand for rented accommodation in Bristol.

It seems everywhere the cost of renting has shot up. No more so than in BS7, where diverse bars, cafés, and shops provide the trendy city-life so many private rented tenants now seek.

The current market leaves plenty of opportunity for property investment landlords in Bristol to pursue strong rents.

Yet, landlords take care – empty rented properties can cost you dearly through Council Tax, utility bills, insurance increases if the void period is long-term, plus the danger of intruders – large and small.

Whilst sky-high rents are appealing to many investment landlords in Bristol, overshooting the property market can cause problems.

If a rented property advert is online for too long it becomes stale. It will be missed by those using search criteria ‘show only properties added to site within the last ‘x’ days’ for example.

When advertising properties for rent in Bristol, the first week is important. If there is little interest in this period it is unlikely to gain greater interest in the following week. Timing is everything.

In addition, high rents can out-price potential tenants: the higher the rent, the smaller pool of interested parties that will be available.

It is often the case that when that pool becomes too small, those potential tenants that are left may be desperate or unsuitable.

In the long-term, the wrong tenant on more money costs the landlord more than the right tenant on less money – and for these reasons, we feel honest valuations on rented properties in Bristol have never been so important. 2016 will highlight this further.

At City Rental Services, Michaela and Andy have good experience in providing such valuations. Their valuations ensure Bristol property landlords achieve strong returns, quick lets, and the provision of good quality, reliable and well-checked tenants in all properties.

If you’re looking for advice on how to value rented properties in Bristol, please call into 58 Gloucester Road to see us – as an independent letting agency in Bristol, we’re here to help.

How will the removal of wear and tear allowance affect Bristol property landlords?

We came across an interesting and concerning article here at City Rental Services last week, with the news that the removal of the wear and tear allowance is having a detrimental effect on Bristol property landlords, and the nationwide buy-to-let sector as a whole.

advice on wear and tear allowances for bristol landlords from City Rental Services

According to research published by the NLA, and highlighted in this article more than half of all buy-to-let landlords will be affected by the removal of the wear and tear allowance.

Bearing in mind that 24% of all property landlords in the UK let their properties fully furnished, the new system coming into effect in April 2016 will cover the replacement costs of furniture and certain specific items.

Although the NLA has ‘broadly supported’ the new system, there are still concerns with some of our Bristol property landlords that scrapping the current allowance for a tax relief system will cost landlords more money overall in replacing and maintaining the furnishings and fittings of rented properties in Bristol.

We will, of course, be monitoring the changes closely for our landlords.

To find out more about our letting agency services in Bristol, simply call into 58 Gloucester Road to see us.