What is White Label Property Management and why is it important to me?

Hello, my property colleagues and fellow property enthusiasts!

It has been a long while since I had the time to sit down and write an article, and it is all because work has been busy, life has been busy, and busy is good, as they say!

When you start a new company, your key focus is lead generation, winning new clients, ensuring the existing clients still receive a 1^st class service, constant recruitment, training, marketing, the list never ends. In the beginning you are wearing many hats – you are the director, the bookkeeper, the cleaner, the maintenance person, the negotiator and the property manager. But then as you start bringing in the revenue, you realise that you need to be spending your time on growing the business and leaving the back end to someone else. This is the only way you are going to grow a company, leave it all to yourself and you will forever be a “freelancer”.

If you are amazing at closing deals then you should continue doing more of that and delegate or outsource everything else because if you are doing what you are passionate about then the money will come, it is as simple as that!

I am passionate about Property Management, I am good at it, I know my stuff. But instead of setting up my own Letting Agent I chose to partner up with a number of London Letting Agents and provide them with White Label Property Management.

What is White Label Property Management you would ask?

Well, the idea is pretty simple – imagine having an in-house property manager who you can talk to any time of the day, who asks no questions and just gets stuff done. They work from your system, they have an email address on your domain, a dedicated phone number, they are basically part of your company but without the tens of questions. No complaints from tenants or landlords to deal with, no chasing, no IT issues for you to resolve, no training, just pure efficiency and complete ownership of everything they deal with. Sounds too good to be true? Well, it is true! This is what we do and this is the reason our clients love us and often tell me that we are worth every penny.

A client of mine, whose portfolio we have been looking after, has managed to triple his managed portfolio in size since the time we took over, because now instead of providing a mediocre service only because he had to, his clients now benefit from a 1^st class service and the experience of a knowledgeable property manager who’s been in the game for over a decade. This may not seem like a lot but it is, a top property manager will cost you a top dollar to employ and when you are still small or choose to remain small then you simply have no need to do so.

Your main aim is to keep your expenses to a minimum but provide an amazing service so that your clients are happy and come back to you again and again. So, the question is why to employ an amateur on a low salary who will cost you money and business in the end of the day when you can hire someone who will deliver, be an asset to your business and not cost you any more than an employee?

It’s a no-brainer decision to me, but I will leave the ball in your hands.  

10 questions you must ask when buying a property

When you are looking to buy a property, this will most likely be one of the biggest decisions you would be making in that moment in time. Yet many people decide on a property within the first fifteen seconds of walking through the door! While your gut instinct is important, it’s vital to take a step back, engage your sensible head and keep a checklist to hand, to ensure your snap decision doesn’t leave you with a costly money pit, or noisy, problem neighbours. 

So, here is a list of questions that you must ask your estate agent on a viewing:

How long has the house been on the market for?

This could be the most important question you ask your estate agent, giving you an early indication as to how desirable the property is, if the asking price is appropriate or if there are any underlying problems turning buyers off.

If the house has been on the market for six months or more, ask the agent why; consider price, location or possible structural problems.

Why are the current owners selling?

The estate agent doesn’t have to answer, but if you’re lucky they might hint at the circumstances. You might find that the owner is keen for a quick sale, perhaps because work is taking them overseas or they have an ongoing chain, and so would consider accepting a lower price.

How long the owners/previous tenants lived there for?

If they’re moving out after a short period, why? Find out if the property has repeatedly changed hands – if it has, this may be an indication of neighbourhood problems.

What is exactly included in a price?

Does the property come unfurnished? What about the appliances, are the staying or going? Is the garden shed or greenhouse included? Exactly where does the boundary lie? Make sure you know what you’re getting for your money. 

How much are the council tax and utility bills per month?

Try and get exact amounts. (You can ask the estate agent to ask the seller/landlord if you have to.) These may not make or break your decision but they’re re-occurring expenses that will add to the monthly cost of owning your home. 

Has the property had any major building work recently?

Was there a particular reason it needed to be done and will it impact on you in the future? It is always good to know if the boiler has just been replaced or the property has had a complete rewiring done.

What is the local area like?

What are the schools like? What is the crime rate like? How good are transport links? Where is the nearest petrol station? While it is a good idea to see what the estate agent has to say, make sure you do some independent research as well.

What are the neighbours next door like?

It is important to know what the neighbours next door will be like – are they owners? Are they tenants? Do they have any young children or pets? These are all very important factors to consider if you have specific requirements about where you want to live. Be it a family friendly place or a professionals only kind of neighbourhood.

Which way does the garden/balcony face?

You may have pleasant visions of sitting out on a summer’s evening sipping a cold drink. But that’s not likely to happen if you have a north facing garden/balcony. If you’re not sure which way the garden/balcony faces, ask.

What offers has the property had so far?

The agent will most likely tell you if there have been other offers, but not how much they were. But again, they have a big incentive to get a price agreed, so might drop some pretty heavy hints in whispered tones. If you can find out about the other offers, it obviously makes it easier to know what you should offer.

Follow us on Instagram for more tips! @business.rock

How to improve your EPC rating

It is a fact that the more energy efficient your property is the lower your energy bills will be and this in turn will become an attractive option for perspective tenants.

A study has recently been performed comparing the costs of energy bills against the EPC energy ratings. And it has been noted that properties with A- and B-rated EPCs had energy bills costing just £1,650 on average for 3 years.

1,042,075 dwellings across the country received an F- or G-rated EPC making them the least energy efficient houses in England and Wales. Those living within these homes are paying on average £5,743.50 for their energy bills across 3 years – 3.5 times more than those with an A- or B-rated EPCs.

Here are five ways you can improve your property’s EPC:

 1.     Upgrade your light bulbs

One easy way to improve energy efficiency is to replace old halogen or incandescent light bulbs with light-emitting diodes (LEDs).

LEDs have become increasingly popular in recent years due to their combination of efficiency and longevity. They provide a quick and relatively inexpensive way to improve the EPC rating of your property.

 2.     Consider replacing your boiler and installing smart heating controls

Heating systems are the cornerstone of a property’s EPC rating. Depending on the age of the existing boiler, switching to a newer, condensing model can significantly improve your rating.

Pairing this upgrade with smart heating technologies such as intelligent thermostats and connected radiator controls will both allow tenants to save on their heating bills and improve your rating.

By replacing an old boiler that has an appliance rating of ‘G’ with a new A-rated boiler that includes a programmer and thermostat, an annual saving of £305 can be made (based on a detached house).

3. Insulate the walls and roof

Loft insulation has long been heralded as the easiest way to improve a property’s energy efficiency, but it is essential to ensure that the insulation material is thick enough to have the optimum effect – the Energy Saving Trust recommends a depth of at least 270mm.

Wall insulation is also an incredibly effective way of improving heat retention. If your property was built in the last 100 years, it is likely to have cavity walls, which have a double external wall and a small gap between which can be filled with insulation.

4.     Ensure windows are double glazed

There is no point investing in the latest heating and insulation technologies if you neglect the property’s windows.

While having double glazing doesn’t have as much of an impact on the EPC as wall or loft insulation, it reduces the amount of heat lost through the windows.

5.     Consider investing in renewable energy

If you are looking for a long-term solution, it is worth considering renewable energy sources such as solar panels or ground-source heat pumps. To achieve the highest EPC ratings a property would require some form of renewable energy. By installing solar panels a G-rated, semi-detached house could make a saving of £311 per year.

In 2015, new laws set Minimum Energy Efficiency Standards (MEES), stating that private rented property in England and Wales must have an EPC rating of E or above. These came into force on 1 April 2018 for new tenancies, and on 1 April 2020 for existing tenancies. Making one or more of these small changes should upgrade your rating by at least one bracket.

For details on how Business Rock can help upgrade your lettings properties to optimise their EPCs get in touch on office@business-rock.com or 0207 100 4236.

Almost half of Landlords and Tenants have fallen out!

Unfortunately, a landlord/tenant relationship is not always the easiest one and there are a number of reasons why. People say that weddings, funerals and moving home are three most stressful events in any person’s life. When it comes to our homes, we tend to become emotional and attached.

The reasons people choose to rent, and the reasons people decide to rent out their properties are very different and some circumstances are easier than others. It is no secret that investor landlords are often more interested in finding a tenant paying the highest rent, whereas an accidental landlord who is letting his own house, tends to be more interested in finding someone who will look after their home better.

Sadly, a growing number of tenants and landlords are falling out over a range of issues, from cleaning and maintenance duties, to matters relating to decorating and home improvements, new findings have shown.

The research reveals that almost half – 49% – of UK tenants admitting that they have fallen out or argued with their landlord in the past.

The study suggests that 89% of people would consider moving out of their home if they did not have a good relationship with their landlord and 18% of tenants described their landlord as being unapproachable.

The research found that the top five reasons for calling landlords are to fix a damaged window (66%), seek consent to decorate (49%), regarding broken appliances (46%), unblock a plug or toilet, clean a dirty property (33%).

Some of the most unusual reasons for tenants calling their landlord were found to be; to ask for help when hanging photos and wall art (16%), to tighten the screws on a doorframe (8%) and to ask for help moving furniture around the property (7%).

Younger people are more likely to have a disagreement and fall with their landlord. The research discovered that 65% of 18 to 24 year olds and 66% of 25 to 34 year olds have argued with their landlord in the past, compared with 36% of 55 to 64 year olds and 34% of people aged 65 and above.

With every difficult landlord often comes a challenging tenant. The research also revealed that 24% of tenants surveyed had missed a rental payment in the past.

Those over 65 years old are also less likely to have missed a rental payment too (5%) in comparison to 44% of those between the ages of 25 to 34 years.

Business Rock offers the perfect solution, providing white label property management to London’s landlords and letting agents. With over 10 years’ experience and dozens of five star reviews, our trusted team of experts can take the stress and strain away from landlords and tenants when the relationship has turned sour. From handling maintenance works to managing tenant expectations, rent collection, credit control and everything in between, we can help make sure that both sides are getting the best from their rental.  

Give us a call on 020 7100 4236 and we can take over the management of your property and tenant for you.

Five mistakes for Landlords to avoid

With managing the legalities, tenants and the property, landlords have a lot on their plate. So here’s some top tips to make life as a landlord easier:

Leave plenty of time for marketing

Many tenants start looking for a new property before they give notice on their current one, so make sure you get yours on the market in good time to catch these early birds.

We recommend marketing your property two months before it’s available – so long as it’s in line with your existing tenancy agreement. If not try and update it so you can show prospective tenants around in the closing two months.

Students and especially international students tend to start looking even earlier. Void periods can be costly – so make sure you reap the benefits of marketing early to mind that gap.

It goes without saying that you should make sure your agent can get access to the property during this time, and that your existing tenants are aware that viewing will be taking place. Ensuring they can accommodate these viewings will be beneficial to you both in the long run – the sooner there’s an offer, the sooner the existing tenants can be left in peace, and you’ll hopefully get the offer you need ahead of time.

First impressions are key

This is an easy one but for that reason, it’s easy to overlook. Make sure you use great photos for your listings.

Have a look online at your competition – how do their properties look? How are they being presented? The first step to nailing your marketing strategy is making sure your property is visually appealing with quality imagery.

Match the images you use with the season – no grey skies or snow in Summer. People will think it’s been on the market for a long time and wonder why.

Ensure the interior is de-cluttered, clean and bright. Does anything look old or shabby? Or have you made recent improvements that you think are important for the prospective tenants?

Avoid reflections in mirrors, screens and windows where possible and store away personal and valuable or personal items such as family photos. If you’re able to employ a professional photographer, do so.

Talk to your tenants

If your tenants are happy, they’ll stay. Dealing with their requests promptly will nurture a great long-term tenancy. Being polite and nice is crucial to being a successful landlord. Whatever the issue, respond promptly and always communicate timescales when needed. This helps manage your tenants’ expectations and lays the groundwork for a long tenancy.

Self-managing your property

One of the worst things that can happen to you as a landlord is not being available – or in the country! – to deal with an issue at your property.

It’s your obligation as a landlord to ensure your property is well-kept and maintained, and to be prompt when tenants raise issues. It’s also key to deal with any such issues in a professional, and not emotional, way. This professionalism is the crucial aspect of property management.

Your tenants will expect you to provide a high level of service for their rent, and if you can foresee any difficulties in dealing with issues promptly, it’s worth considering a professional property management service who can take any stress or worry from you. Property management fees are usually tax-deductible.

Legal compliance and safety checks

In January 2020, the fifth money laundering directive came into effect, which added to the benefits of using an agent. Right to Rent checks are also still a legal requirement when renting to anyone aged 18 or over in England.

If you use an agent, do make sure you ask about their process for Anti Money Laundering and their compliance checks for Right to Rent.

Every 12 months, you need to get a gas safety certificate, and councils can ask for this at any time with seven days’ notice. Keep a record of all your previous certifications and a valid certificate at all times.

Fire alarms need to be installed on each floor and carbon monoxide detectors in rooms with an appliance burning solid fuel. At the start of each tenancy, you should test these, and then on every inspection to ensure they are fully working.

If your property has three or more unrelated tenants (an HMO), you may need mains-fitted smoke alarms, heat sensors and a CO detector in any room with a gas appliance i.e. a boiler or gas fire. It’s a good idea to check with your local council housing team.

For electrics, there are two tests: the Portable Appliance Test (PAT) which checks plugs on appliances are safe to use, and should be done at the start of each tenancy.

The other is an Electrical Installation Condition Report (EICR) done by a NICEIC qualified electrician, which is valid for five years. HMOs must have an EICR which again the council can request with seven days’ notice.

Your Energy Performance Certificate (or EPC) needs to be maintained, and lasts for 10 years. Your property needs a rating of E or above, otherwise you’ll need to make upgrades or seek an exemption.

Lastly, you need to check if your property should be registered with the local council. There are various licensing schemes that might apply to you – check with your local council to ensure you keep on top of your compliance responsibilities.

At Business Rock, we work with estate agents to provide top property management to landlords in the capital. Our services include check ins/outs, inspections, arranging repairs, certificates and tenant liaison and our service can work seamlessly alongside your tenant finding and rent collection service to provide holistic tenancy management for peace of mind. To find out more call the Business Rock team on 0207 100 4236.

Tenancy Legislation that you and your clients need to be aware of

As a letting agent, it is important to be aware of the legislation that governs your landlord clients’ rights and responsibilities. Failing to comply with these laws can result in legal action and financial penalties. In this blog, we will discuss some of the key legislation that landlords must adhere to.

Housing Act 1988

The Housing Act 1988 sets out the rights and responsibilities of landlords and tenants in the private rented sector. This legislation covers a range of issues including the payment of rent, the length of tenancy agreements, and the return of deposits.

Under this Act, landlords are required to provide tenants with a written tenancy agreement, which outlines the terms of the tenancy. Landlords must also provide their tenants with a rent book, which records the amount of rent paid and any arrears.

Gas Safety (Installation and Use) Regulations 1998

Landlords are legally required to ensure that all gas appliances, including boilers, gas fires, and cookers, are safe to use. The Gas Safety (Installation and Use) Regulations 1998 require landlords to have their gas appliances checked annually by a Gas Safe registered engineer.

Landlords must also provide their tenants with a copy of the gas safety certificate, which confirms that the appliances have been checked and are safe to use.

Energy Performance Certificate (EPC)

Landlords are required to provide their tenants with an Energy Performance Certificate (EPC) when they move in. This certificate shows the energy efficiency of the property, and includes recommendations for making the property more energy efficient.

Landlords must have an EPC rating of at least E before they can rent out their property. If the property has a rating of F or G, it cannot be rented out until improvements are made.Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020

From 1st July 2020, landlords in England are required to have the electrical installations in their properties inspected and tested by a qualified electrician at least every 5 years. This is to ensure that the electrical installations are safe for use.

Landlords must provide a copy of the electrical safety report to their tenants within 28 days of the inspection. They must also provide a copy of the report to their local authority if requested.

Right to Rent

Under the Immigration Act 2014, landlords are required to check the immigration status of their tenants before renting out their property. This is to ensure that tenants have a legal right to rent in the UK.

Letting agents must check the identity documents of all adult tenants, and make sure that they are genuine and that the tenant has the right to rent in the UK. Agents or landlords who fail to carry out these checks can face fines and even imprisonment.

This legislation is designed to protect both landlords and tenants, and failure to comply with these laws can result in serious consequences. Business Rock provides white label property management to letting and estate agents based in and around London. We can provide vetted and approved contractors to carry out safety checks and certificates as well as any remedial or preventative works to ensure your property is safe and compliant. We can also provide tenancy related legal advice, deposit dispute resolution and serving of notices and certificates to tenants.

To find out more call the Business Rock team on 0207 100 4236.

The slow death of Let Only Service

My husband owns a BTL property in the London Borough of Redbridge.

Not long ago this Borough introduced a so called Selective Licensing Scheme – for those of you in the industry will know that most London Boroughs are now embarking on these journeys to supposedly make the Private Rented Sector safer and better for the tenants, as well as to “tackle” anti-social behaviour – whether I agree with the purpose of these schemes is a different matter, so I will leave my opinion for a different blog.

Being the “dedicated property manager” of our family property portfolio, I was tasked to complete the application for a Licence, and this is how it went:

I had to complete a 16 page online application form

I had to provide the information from a gas safety certificate, including all the dates and Gas Safe Register numbers of the gas engineer completing it, to an EPC and the electrical certificate

I had to answer questions about Furniture Fire labels and smoke and CO detectors

About decorative order of the flat to a number of tenants and their Right to Rent in the UK

I had to give details about the insurances held for the property and about what they covered

Provide the details of who manages the property and the person’s professional qualifications (including certificate numbers and dates those were obtained)

The Council seems to want to know everything about your financial history, any bankruptcies, criminal convictions, etc., etc.

When I tried to originally complete the application under my husband’s name and obtain a license in his name, it became pretty clear very early on that in order to do that he would need to go on a course and obtain a qualification

So it was easier to obtain a license in my own name as I am the Property Manager of the flat anyway and luckily a qualified one as well

I mean the process was so tedious and so complex, and in a way too private for my liking that it made me question the need for all this information. At the same time while filling it in, I kept thinking that there is no way your “average” landlord would be able to complete this application and have all the needed documents to hand.

The Lettings Industry has become so complex and so “regulated” by ever changing laws and regulations that the agents themselves sometimes struggle to understand what is being asked of them and of the landlord.

When the mandatory introduction of the EICRs (electrical Installation Condition Report) came into force, it took me months to learn how to read and understand an electrical report, various codes that the electricians use, various ways remedials works can be undertaken and then certified.

The landlord is now also expected to understand the UK visa and residents permits system – how it works, which nationality requires a visa, which one just needs to apply for a leave to remain and at what point it needs to be done, and at what point the landlord must check the validity of whatever the tenant obtained – I mean, do not get me wrong, I am not questioning the mental capabilities of the landlords, but all of this is way too much for any individual trying to have one or two investment properties for their “retirement” – you cannot do this without a help of a qualified agent who is not able to find you a tenant but also to manage this tenancy for you after. In the London Borough of Redbridge you cannot even let your property anymore without having a Property Management qualification or a property who has it! Surely this is the death of the Let Only service in our industry?

And I think the quicker we, as agents, realise it and the quicker we start sharing these experiences with our landlords, the quicker we start adjusting our services to suit our clients’ needs, the faster our businesses will grow.

And if you need a property manager who can take away the stress and the worry about your compliance then you know where we are.