Landlords must be aware of new planning rules
Landlords may not realise they need to apply for planning permission to let houses in multiple occupation (HMO) under new rules.
Where a landlord lets or is considering letting a property to three or more sharers, this creates a house in multiple occupation (HMO). As a result, they will need to apply for planning permission for “changing the use” from a family home to a HMO.
The new planning rules have been introduced in response to the growth of “sharer properties” in certain areas predominately occupied by sharers such as students and migrant workers.
This legislation has come into place at very short notice and has not been very well-publicised, so many landlords may not be aware of it.
In effect, it means they need to obtain separate planning approval if they wish to let any property as an HMO. Furthermore, as the planning process takes about two months, landlords need to take this into consideration.
The new rules do not apply to tenancies which are currently in place, but a planning application may need to be made on tenancy renewal.
This will undoubtedly cause a massive increase in the number of planning applications and the number of appeals, as well as an increase in cost to landlords. Inevitably, many will now have to consider whether to let to sharers and what hoops they have to jump through to do so.
Do not forget that the HMO licensing introduced in 2006 is still very much in force, where certain types of HMOs require mandatory licensing. In addition, local authorities are able to create selective licensing for other HMOs by type or area under the licensing regulations. This new requirement for planning permission is an additional requirement to licensing.
Conditions are also likely to be attached to the new planning permissions. These could include an order to carry out a full health and safety assessment or perhaps restrictions on the number of cars allowed at the property.
I suggest landlords check with their local planning authority on their particular situation, or call us for advice.
Labels: ARLA, buy-to-let, Darlows, haart, Haybrook, landlords, letting agencies, lettings, properties, rent property, rental properties, rentals, Spicer McColl, Spicerhaart, tenants
A successful spring for landlords is predicted
With spring just around the corner, landlords should do everything they can to ensure their properties are in the best possible order and reap the benefits of a predicted rise in rental income.
The rental market has seen greater demand but there are fewer quality properties available. This of course means that tenants no longer have as powerful bargaining power as they once did. However despite this, landlords should do everything they can to ensure their properties are presented in the best possible order to maximise their worth and achieve a quick let.
There are a number of steps landlords can take to make their properties not only more attractive to potential tenants but also to ensure they achieve the highest rental income. The property needs to be spotlessly clean, in good order with all the appliances tested and working and of course the legally required safety checks carried out.
Interiors should be painted in neutral colours to give a light and airy feel to the property, worn carpets and flooring should be professionally cleaned or replaced, windows kept spotless and gardens and external spaces immaculately presented. Adding up-to-date lighting and fixtures can also make a huge difference to the appearance of a property.
Spring is a particularly busy time in the lettings sector and the outlook for 2010 is very promising. However it is always important to remember that whereas a buyer might be happy to purchase a tired property which they can then add value to, a tenant wants a home which is fresh and ready to move into immediately. Our advice to landlords is not to expect anyone to live in a property that they themselves would not live in. Keeping a rental property in good order is good news for everyone as it means that it attracts better tenants, yields a higher rental income, and also maintains its value.
Labels: ARLA, buy-to-let, haart, landlords, letting agencies, letting agent, lettings, lettings agencies, properties, rent property, rental properties, rentals, tenants
Falling rents create a tenants’ market
As the lettings market continues to favour tenants, there are more properties than ever to choose from, forcing rents down.
Because of the increase in choice, we are encouraging landlords to ask for realistic rents which reflect the market, reducing rent by 5-10% in some cases.
In our experience, landlords have been very receptive to this advice. They would rather drop the rent and fill the property than hold out for a higher rent and it remain empty.
The picture does fluctuate across the UK. Where landlords are starting to sell, the pendulum is swinging back, keeping rental income strong where the amount of available stock is reduced. However, for many, renting out property is still a quick-fix solution for private owners who are struggling to sell in the current market or for developers who are waiting for the market to pick up.
Whilst the current market conditions lend themselves to tenants, it is certainly not all doom and gloom for landlords, helped by lower mortgage rates. The key for landlords is to learn how to work with the current conditions and always be one step ahead of the market.
Labels: landlords, lettings, rental properties, tenants
