tag:blogger.com,1999:blog-70879155649070064262024-02-21T09:19:18.596+07:00www.article-rumah-djitu.blogspot.comKumpulan article property indonesia dan luar negeri, dapatkan disiniUnknownnoreply@blogger.comBlogger18125tag:blogger.com,1999:blog-7087915564907006426.post-5121077835948281972011-01-18T15:55:00.000+07:002011-01-18T15:55:22.814+07:00Padang House - Indonesia<a href="http://id.wikipedia.org/wiki/Berkas:Adityawarman_Museum.JPG" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img alt="" height="188" src="http://upload.wikimedia.org/wikipedia/commons/thumb/c/ca/Adityawarman_Museum.JPG/250px-Adityawarman_Museum.JPG" width="250" /></a><br />
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<div class="separator" style="clear: both; text-align: center;"><a href="http://gallery.icsbali.com/data/media/115/Padang_-_Rumah_Gadang_1.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img alt="Padang - Rumah Gadang 1" border="0" height="275" src="http://gallery.icsbali.com/data/media/115/Padang_-_Rumah_Gadang_1.jpg" width="320" /></a></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7087915564907006426.post-51359037234845726822011-01-18T15:42:00.001+07:002011-01-18T15:44:11.856+07:00Aceh House / Rumoh Aceh - Indonesia<span class="post-author">Diposkan oleh Aceh </span> on 8 Apr 2010 <br />
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<div class="post-body"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNXCaVA36_wkl8JViAtBO6riqHEj4UO1XX58o4tBF9Sv4-mmML_f3NiPBEw1SAhGCqYdARdTjsyijQvJVQC2wMIp2fDxhLXQEqrpi6hSQssvB6Si30bkdup6Rp-fo7B7yvaEaKC6DqNVw/s1600/rumoh.jpg"><img alt="" border="0" id="BLOGGER_PHOTO_ID_5458029467681828978" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgNXCaVA36_wkl8JViAtBO6riqHEj4UO1XX58o4tBF9Sv4-mmML_f3NiPBEw1SAhGCqYdARdTjsyijQvJVQC2wMIp2fDxhLXQEqrpi6hSQssvB6Si30bkdup6Rp-fo7B7yvaEaKC6DqNVw/s320/rumoh.jpg" style="cursor: pointer; float: left; height: 251px; margin: 0pt 10px 10px 0pt; width: 320px;" /></a><br />
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<div style="text-align: justify;"><span class="Apple-style-span" style="border-collapse: separate; color: black; font-family: 'Times New Roman'; font-size: small; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><span class="Apple-style-span" style="color: #888888; font-family: arial,sans-serif; font-size: 13px;"><div class="almost_half_cell" id="gt-res-content" style="display: block; padding-right: 16px; padding-top: 9px;"><div dir="ltr"><span class="long_text" id="result_box" style="color: black; display: block; font-size: 16px;"><span style="background-color: white;" title="Rumoh Aceh merupakan rumah adat Aceh.">Rumoh Aceh Aceh is a traditional house.<span class="Apple-converted-space"> </span></span><span style="background-color: white;" title="Rumoh Aceh bertipe rumah panggung dengan 3 bagian utama dan 1 bagian tambahan.">Rumoh Aceh-type house on stilts with 3 main parts and an additional section.<span class="Apple-converted-space"> </span></span><span style="background-color: white;" title="Tiga bagian utama dari rumah Aceh yaitu seuramoë keuë (serambi depan), seuramoë teungoh (serambi tengah) dan seuramoë likôt (serambi belakang).">Three main parts of Aceh is home Seuramoe keuë (front porch), Seuramoe Teungoh (porch middle) and Seuramoe likôt (back porch).<span class="Apple-converted-space"> </span></span><span style="background-color: white;" title="Sedangkan 1 bagian tambahannya yaitu rumoh dapu (rumah dapur).">Meanwhile, an additional section that is rumoh dapu (home kitchen).<span class="Apple-converted-space"> </span></span></span></div></div></span></span><br />
<span class="Apple-style-span" style="border-collapse: separate; color: black; font-family: 'Times New Roman'; font-size: small; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><span class="Apple-style-span" style="color: #888888; font-family: arial,sans-serif; font-size: 13px;"><div class="almost_half_cell" id="gt-res-content" style="display: block; padding-right: 16px; padding-top: 9px;"><div dir="ltr"><span class="long_text" id="result_box" style="color: black; display: block; font-size: 16px;"><span style="background-color: white;" title="Sedangkan 1 bagian tambahannya yaitu rumoh dapu (rumah dapur)."></span><span style="background-color: white;" title="Rumoh Aceh dapat dilihat langsung di Museum Negeri di kota Banda Aceh yang dibuat pada tahun 1914 untuk Gelanggang Pameran di Semarang, Jawa Tengah.">Rumoh Aceh can be seen directly in the Museum District in the city of Banda Aceh which was made in 1914 to Exhibition Venues in Semarang, Central Java.<span class="Apple-converted-space"> </span></span><span style="background-color: white;" title="Kemudian dibawa pulang ke Banda Aceh tahun 1915 oleh Gubernur Van Swart (Belanda) yang kemudian dijadikan museum hingga kini.">Then taken home to Banda Aceh in 1915 by Governor Van Swart (Netherlands), which is then converted into a museum so far.<span class="Apple-converted-space"> </span></span><span style="background-color: white;" title="Bangunan ini berupa sebuah rumah panggung yang berpintu sempit namun didalamnya seluruh ruangan tersebut tidak bersekat.">This building houses on stilts which form a narrow door, but inside the room is not insulated.<span class="Apple-converted-space"> </span></span></span></div></div></span></span><br />
<span class="Apple-style-span" style="border-collapse: separate; color: black; font-family: 'Times New Roman'; font-size: small; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><span class="Apple-style-span" style="color: #888888; font-family: arial,sans-serif; font-size: 13px;"><div class="almost_half_cell" id="gt-res-content" style="display: block; padding-right: 16px; padding-top: 9px;"><div dir="ltr"><span class="long_text" id="result_box" style="color: black; display: block; font-size: 16px;"><span style="background-color: white;" title="Bangunan ini berupa sebuah rumah panggung yang berpintu sempit namun didalamnya seluruh ruangan tersebut tidak bersekat."></span><span style="background-color: white;" title="Dengan tampilan luar hitam pekat diseling ornamen berwarna cerah khas Aceh, bangunan ini menyimpan beberapa koleksi keramik dan lukisan pahlawan Aceh.">With the outside view black diseling brightly colored ornaments typical of Aceh, the building holds several collections of ceramics and paintings hero Aceh.<span class="Apple-converted-space"> </span></span><span style="background-color: white;" title="Saat memasukinya akan terasa suasana tradisi yang kental.">When entered it will taste a thick atmosphere of tradition.<span class="Apple-converted-space"> </span></span><span title="Bagaimana tata ruang rumah tradisional Aceh sangat terasa.">How traditional Acehnese house layout is very pronounced.<span class="Apple-converted-space"> </span></span><span style="background-color: white;" title="Mulai dari penataan ruang pertemuan, ruang tidur, dapur dan penyimpanan perabot sehari-hari.">Starting from the arrangement of meeting rooms, bedrooms, kitchens and furniture storage daily.<span class="Apple-converted-space"> </span></span><span title="Tentu saja hal ini akan sulit dijumpai kini.">Of course this will be difficult to find now.<span class="Apple-converted-space"> </span></span></span></div></div></span></span><br />
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<div dir="ltr"><span class="long_text" id="result_box" style="color: black; display: block; font-size: 16px;"><span style="background-color: white;" title="Namun selepas bencana Tsunami dua tahun silam, banyak yang mengadopsi gaya rumah panggung ini.">But after the tsunami disaster two years ago, many who adopt this style of house on stilts.<span class="Apple-converted-space"> </span></span><span style="background-color: white;" title="Mungkin ada yang terpikir kalau Tsunami melanda lagi akan jauh lebih aman dengan tipe bangunan seperti ini.">Some may think that the tsunami struck again would be much more secure with the type of buildings like this.<span class="Apple-converted-space"> </span></span><span style="background-color: #ebeff9;" title="Tentu harus dipertimbangkan pondasi yang lebih kokoh, tak lagi dari sebatang kayu.">Sure to be considered a more solid foundation, no longer than a stick.<span class="Apple-converted-space"> </span></span><span style="background-color: white;" title="Bagaimanapun kearifan masa lalu selalu menawarkan sebuah medium perenungan.">However the wisdom of the past always offers a medium of reflection.<span class="Apple-converted-space"> </span></span><span style="background-color: white;" title="Untuk selalu bercermin diri dan terus belajar bertegur sapa akrab dengan alam.">To always reflect yourself and keep learning greet each familiar with nature.</span></span></div><span class="Apple-style-span" style="border-collapse: separate; color: black; font-family: 'Times New Roman'; font-size: small; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><span class="Apple-style-span" style="color: #888888; font-family: arial,sans-serif; font-size: 13px;"></span></span></div><span class="Apple-style-span" style="border-collapse: separate; color: black; font-family: 'Times New Roman'; font-size: small; font-style: normal; font-variant: normal; font-weight: normal; letter-spacing: normal; line-height: normal; orphans: 2; text-indent: 0px; text-transform: none; white-space: normal; widows: 2; word-spacing: 0px;"><span class="Apple-style-span" style="color: #888888; font-family: arial,sans-serif; font-size: 13px;"><div class="g-section" id="gt-res-tools" style="display: inline-block; margin-top: 16px; vertical-align: top; width: 603px;"><div class="gt-icon-c" id="gt-res-listen" role="button" style="color: #1111cc; cursor: pointer; float: left; margin-right: 1em; outline-style: none; text-decoration: none;" tabindex="0"><br class="Apple-interchange-newline" /></div></div></span></span></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7087915564907006426.post-88484446349404739652011-01-18T15:26:00.001+07:002011-01-18T15:28:49.998+07:00Joglo house - Java - Indonesia<img alt="" border="0" id="BLOGGER_PHOTO_ID_5301444554365598914" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi-OyLeIFiLvABNNHo2XPCUVhx_g8jCSdzW7taWhx_XQdvnWku2sY9wLCPg6eH4Jn6GFErXKzATi7L0dZbzOL7J1GjJ1GdikiTtClCcPjxPnaV0MydRO_rc6tCfjdrgxYkhhQJZUsp4r3B8/s320/IMG_1726.jpg" style="float: left; height: 240px; margin: 0px 10px 10px 0px; width: 320px;" /><br />
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</div><div style="text-align: justify;"><a href="http://www.blogger.com/goog_224341060"><b>Tampak Depan</b></a></div><div style="text-align: justify;"><a href="http://www.blogger.com/goog_224341060"><img alt="" border="0" height="156" src="http://photos-g.ak.fbcdn.net/hphotos-ak-snc1/hs018.snc1/4520_81617877410_79765832410_2225246_1941321_n.jpg" width="320" /></a></div><div style="text-align: justify;"><a href="http://www.blogger.com/goog_224341060"><b><br />
Tampak Belakang</b></a><br />
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View</b></a><br />
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<span class="long_text" id="result_box"><span style="background-color: white;" title="Rumah Joglo ini kebanyakan hanya dimiliki oleh mereka yang mampu.">Joglo house is mostly owned by those who can afford. </span><span style="background-color: white;" title="Hal ini disebabkan rumah bentuk joglo membutuhkan bahan bangunan yang lebih banyak dan mahal daripada rumah bentuk yang lain.">This is due to home form joglo require building materials and more expensive than other forms of home. </span><span style="background-color: white;" title="Masyarakat jawa pada masa lampau menganggap bahwa rumah joglo tidak boleh dimiliki oleh orang kebanyakan, tetapi rumah joglo hanya diperkenankan untuk rumah kaum bangsawan, istana raja, dan pangeran, serta orang yang terpandang atau dihormati oleh sesamanya saja.">Javanese society in the past assume that joglo home should not be owned by most people, but the house joglo only allowed to house the nobility, the king's palace, and the princes, and people who esteemed or respected by the others alone. </span><span style="background-color: white;" title="Dewasa ini rumah joglo digunakan oleh segenap lapisan masyarakat dan juga untuk berbagai fungsi lain, seperti gedung pertemuan dan kantor-kantor.">Today joglo house used by all levels of society and also for various other functions, such as conference hall and offices. <br />
</span><span style="background-color: white;" title="Banyak kepercayaan yang menyebabkan masyarakat tidak mudah untuk membuat rumah bentuk joglo.">Many beliefs that cause people is not easy to make a house shape joglo. </span><span style="background-color: white;" title="Rumah bentuk joglo selain membutuhkan bahan yang lebih banyak, juga membutuhkan pembiayaan yang besar, terlebih jika rumah tersebut mengalami kerusakan dan perlu diperbaiki.">Houses form joglo besides requiring more materials, also requires a large financing, especially if the house is damaged and needs to be repaired. <br />
</span><span style="background-color: white;" title="Kehidupan ekonomi seseorang yang mengalami pasang surut pun turut berpengaruh, terutama setelah terjadi penggeseran keturunan dari orang tua kepada anaknya.">Economic life of someone who had also participated in the tidal effect, especially after the shift offspring from parents to children. </span><span style="background-color: white;" title="Jika keturunan seseorang yang memiliki rumah bentuk joglo mengalami penurunan tingkat ekonomi dan harus memperbaiki serta harus mempertahankan bentuknya, berarti harus menyediakan biaya secukupnya.">If the descendants of someone who has a house shape joglo decreased levels of the economy and must improve and must maintain its shape, means it must provide adequate fee. </span><span style="background-color: white;" title="Ini akan menjadi masalah bagi orang tersebut.">This will be a problem for that person. </span><span style="background-color: white;" title="Hal ini disebabkan adanya suatu kepercayaan, bahwa pengubahan bentuk joglo pada bentuk yang lain merupakan pantangan sebab akan menyebabkan pengaruh yang tidak baik atas kehidupan selanjutnya, misalnya menjadi melarat, mendatangkan musibah, dan sebagainya.">This is due to the existence of a trust, that changing the shape joglo in another form is forbidden because it would cause a bad influence on his later life, such a wretched, to bring disaster, and so forth. <br />
</span><span title="Pada dasarnya, rumah bentuk joglo berdenah bujur sangkar.">Basically, the house forms joglo berdenah square. </span><span style="background-color: white;" title="Pada mulanya bentuk ini mempunyai empat pokok tiang di tengah yang di sebut saka guru, dan digunakan blandar bersusun yang di sebut tumpangsari.">At first, this form has four main pillars in the middle of the call pillars, and is used blandar compound which is called intercropping. </span><span style="background-color: white;" title="Blandar tumpangsari ini bersusun ke atas, makin ke atas makin melebar.">This intercropping Blandar layers upward, upward to widen even further. </span><span style="background-color: white;" title="Jadi awalnya hanya berupa bagian tengah dari rumah bentuk joglo zaman sekarang.">So initially just a central part of the house forms joglo today. </span><span style="background-color: white;" title="Perkembangan selanjutnya, diberikan tambahan-tambahan pada bagian-bagian samping, sehingga tiang di tambah menurut kebutuhan.">Subsequent developments, provided additions to the side parts, so that the pole is added according to need. </span><span style="background-color: white;" title="Selain itu bentuk denah juga mengalami perubahan menurut penambahannya.">In addition, a sketch is also changing according to the addition. </span><span style="background-color: white;" title="Perubahan-perubahan tadi ada yang hanya bersifat sekedar tambahan biasa, tetapi ada juga yang bersifat perubahan konstruksi.">The changes mentioned there are only a mere extra ordinary, but there also are changes in construction. <br />
</span><span style="background-color: white;" title="Dari perubahan-perubahan tersebut timbulah bentuk-bentuk rumah joglo yang beraneka macam dengan namanya masing-masing.">From these changes timbulah joglo house forms a wide range with the name of each. </span><span style="background-color: white;" title="Adapaun, jenis-jenis joglo yang ada, antara lain : joglo jompongan, joglo kepuhan lawakan, joglo ceblokan, joglo kepuhan limolasan, joglo sinom apitan, joglo pengrawit, joglo kepuhan apitan, joglo semar tinandu, joglo lambangsari, joglo wantah apitan, joglo hageng">Adapaun, the types joglo, among others: joglo jompongan, joglo kepuhan jokes, joglo ceblokan, joglo kepuhan limolasan, joglo sinom clamp, joglo pengrawit, joglo kepuhan clamp, joglo semar tinandu, joglo sexual intercourse, joglo Wantah clamp, joglo hageng </span><span title=", dan joglo mangkurat.">, and joglo mangkurat.</span></span></div><br />
<div align="justify"></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7087915564907006426.post-71621498482060059702011-01-18T14:56:00.003+07:002011-01-18T15:32:18.804+07:00Nagoya Castle: Shachihoko Protect Beautiful Nagoya AttractionsNagoya Castle: Shachihoko Protect Beautiful Nagoya Attractions<br />
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<img alt="Japanese Cherry Blossom Trees" height="120" src="http://www.fantasticjapan.com/images/japanese-cherry-blossom-trees.jpg" style="float: left;" width="320" /><br />
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When the <b>Japanese cherry blossom trees</b> are in bloom around <b>Nagoya Castle </b>during spring, you can almost forget that it is a reconstruction and imagine what it must have been like almost 400 years ago.<br />
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<img alt="Nagoya Attractions" height="161" src="http://www.fantasticjapan.com/images/nagoya-attractions.jpg" style="float: left;" width="320" /><br />
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<b>Nagoya-jo</b> was originally constructed in <b>Nagoya, Japan</b> in 1612 but sustained great damage in World War II. In 1959 it was rebuilt from ferro-concrete and its interior now contains a museum about the castle.<br />
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<img alt="Japanese Castles" height="240" src="http://www.fantasticjapan.com/images/japanese-castles-1.jpg" style="float: left;" width="320" /><br />
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<a href="http://www.fantasticjapan.com/images/nagoya-japan-map-1.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img alt="Nagoya Japan Map" border="0" height="117" src="http://www.fantasticjapan.com/images/nagoya-japan-map-1.jpg" width="320" /></a><br />
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<div class="separator" style="clear: both; text-align: center;"><a href="http://www.fantasticjapan.com/images/japanese-medieval-castle.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img alt="Japanese Medieval Castle" border="0" height="200" src="http://www.fantasticjapan.com/images/japanese-medieval-castle.jpg" vspace="10" width="320" /></a></div><br />
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However, an interesting feature of Nagano Castle is a pair of male and female gold figures, in the form of a mythical fish with the head of a tiger, which adorn the north and south ends of the roof. These gold ("kin" in Japanese) figures are called <b>Shachihoko</b> and give the castle its nickname of Kinshachi-jo.<br />
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<img alt="Nagoya Castle Shachihoko" height="166" src="http://www.fantasticjapan.com/images/nagoya-castle.jpg" style="float: left;" width="320" /><br />
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Like the umbrella in Chion-in Temple in Kyoto, Shachihoko are believed to protect the castle from fire by bringing the rain.<br />
Other highlights of the castle include:<br />
<b>- </b>Ninomaru Tea House<br />
<b>- </b>Ninomaru Garden<br />
<b>- </b>600 year old Japanese Nutmeg tree<br />
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<img alt="Japan Castle" height="185" src="http://www.fantasticjapan.com/images/japan-castle.jpg" style="float: left;" width="320" /><br />
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<b>Opening Hours:</b><br />
9:00am - 4:30pm (last entry 4:00pm)<br />
<b>Closed:</b><br />
December 29th - January 1st<br />
<b>Entry:</b><br />
¥500 Adults<br />
<a href="http://fantasticjapan.com/">Leave Nagoya Castle and discover more about Japan and Japan Travel.<br />
</a>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7087915564907006426.post-92138152886834199672011-01-16T17:03:00.001+07:002011-01-15T17:46:56.404+07:00Rumah Antiq dan Unit : Zhang Lianzhi’s Elite Ceramic House @ $65 million - ChinaZhang Lianzhi’s Elite Ceramic House @ $65 million Doing away with the custom of having huge villas with green vicinity, the trend is to maintain a small-house with all your precious belongings. Located in Tianjin, northern China, the designer house is clad with 400,000,000 pieces of porcelain, 16000 pieces of antique ceramic, 300 white-marble carvings, and 20 tons of natural crystals. The blessed owner of the house viz. Zhang Lianzhi, a businessman by profession has spent $65 million on decorating the house. The wares carved inside the house were collected by him over the past two decades. The house got furnished lately. News is that after five-years of its decoration, the house will be used for commercial purpose as a restaurant. <br />
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di unduh dari : Via Sharingthelife http://www.elitechoice.org/Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7087915564907006426.post-27453697683580470432011-01-15T17:07:00.003+07:002011-01-15T17:14:27.225+07:00Rumah Antiq dan Unit<div style="text-align: center;"><a href="http://babesajabu.files.wordpress.com/2009/06/cactus_house.jpg"><img alt="cactus_house" class="aligncenter" height="415" src="http://babesajabu.files.wordpress.com/2009/06/cactus_house.jpg?w=320&h=415&h=415" title="cactus_house" width="320" /></a><br />
<strong>Cactus House – The Netherlands</strong></div><div style="text-align: center;">The balconies of the Cactus House apartment building in Rotterdam were designed to maximize outdoor gardening space for tenants.</div><div style="text-align: center;"><a href="http://babesajabu.files.wordpress.com/2009/06/gangster_house.jpg"><img alt="gangster_house" class="aligncenter" height="415" src="http://babesajabu.files.wordpress.com/2009/06/gangster_house.jpg?w=320&h=415&h=415" title="gangster_house" width="320" /></a><br />
<strong>Gangster House – Russia</strong><br />
This soaring wooden tower in Archangelsk, Russia was built by local gangster Nikolai Sutyagin. He never quite got around to finishing its construction – he was jailed before the work was completed.</div><div style="text-align: center;"><a href="http://babesajabu.files.wordpress.com/2009/06/cube_house.jpg"><img alt="cube_house" class="aligncenter" height="335" src="http://babesajabu.files.wordpress.com/2009/06/cube_house.jpg?w=400&h=335&h=335" title="cube_house" width="400" /></a><strong><br />
Cube Houses – The Netherlands</strong><br />
The Dutch seem to be building more than their fair share of interesting houses, as evidenced by these “cube houses” in Rotterdam. Architect Piet Blom intentionally tipped the houses 45 degrees on their side. Cutting edge yes, but not good for those with vertigo.</div><div style="text-align: center;"><a href="http://babesajabu.files.wordpress.com/2009/06/wooden_sphere_house.jpg"><img alt="wooden_sphere_house" class="aligncenter" height="335" src="http://babesajabu.files.wordpress.com/2009/06/wooden_sphere_house.jpg?w=400&h=335&h=335" title="wooden_sphere_house" width="400" /></a><strong><br />
Wooden Sphere House – Canada</strong><br />
The sphere house in British Columbia, Canada takes simplicity to a whole new level. The sphere is anchored to its surroundings using ropes and spiral staircases.</div><div style="text-align: center;"><br />
<a href="http://babesajabu.files.wordpress.com/2009/06/habitat_67_house.jpg"><img alt="habitat_67_house" class="aligncenter" height="335" src="http://babesajabu.files.wordpress.com/2009/06/habitat_67_house.jpg?w=400&h=335&h=335" title="habitat_67_house" width="400" /></a><br />
<strong>Habitat 67 – Canada</strong><br />
These playful apartments in Montreal feature a unique building block design.</div><div style="text-align: center;"><a href="http://babesajabu.files.wordpress.com/2009/06/wozoco_apartments.jpg"><img alt="wozoco_apartments" class="aligncenter" height="415" src="http://babesajabu.files.wordpress.com/2009/06/wozoco_apartments.jpg?w=320&h=415&h=415" title="wozoco_apartments" width="320" /></a><br />
<strong>Wozoco Apartments – The Netherlands</strong><br />
This “hanging” apartment building near Amsterdam uses some clever architecture to get around local zoning laws. Dutch laws require sunlight for all units, so the builders simply hung part of the building above the ground allowing for extra square footage and sun for the tenants below.</div><div style="text-align: center;"><a href="http://babesajabu.files.wordpress.com/2009/06/pod_house.jpg"><img alt="pod_house" class="aligncenter" height="415" src="http://babesajabu.files.wordpress.com/2009/06/pod_house.jpg?w=320&h=415&h=415" title="pod_house" width="320" /></a><br />
<strong>Pod House – New York</strong><br />
Located in New Rochelle, the Pod House’s interesting organic design is based on the structure of a weed called Queen Anne’s Lace.</div><div style="text-align: center;"><a href="http://babesajabu.files.wordpress.com/2009/06/berman_house.jpg"><img alt="berman_house" class="aligncenter" height="335" src="http://babesajabu.files.wordpress.com/2009/06/berman_house.jpg?w=400&h=335&h=335" title="berman_house" width="400" /></a><br />
<strong>Berman House – Australia</strong><br />
The Berman House in Joadja, Australia hangs over a deep canyon below. I’m sure the views must be spectacular.</div><div style="text-align: center;"><a href="http://babesajabu.files.wordpress.com/2009/06/rotating_house.jpg"><img alt="rotating_house" class="aligncenter" height="415" src="http://babesajabu.files.wordpress.com/2009/06/rotating_house.jpg?w=320&h=415&h=415" title="rotating_house" width="320" /></a><br />
<strong>Rotating House – Germany</strong><br />
Architect Rolf Disch was thinking green when he built this structure near Freiburg, Germany. The house rotates with the movement of the sun in winter to save on heating costs. Maybe there’s a renter’s discount if you get dizzy easily?</div><div style="text-align: center;"><a href="http://babesajabu.files.wordpress.com/2009/06/mushroom_house.jpg"><img alt="mushroom_house" class="aligncenter" height="415" src="http://babesajabu.files.wordpress.com/2009/06/mushroom_house.jpg?w=320&h=415&h=415" title="mushroom_house" width="320" /></a><br />
<strong>Mushroom House – Ohio</strong><br />
For only $400,000, you could be living in your own fairytale-style mushroom house located in Cincinnati, Ohio.</div><div style="text-align: center;"><a href="http://babesajabu.files.wordpress.com/2009/06/floating_house.jpg"><img alt="floating_house" class="aligncenter" height="335" src="http://babesajabu.files.wordpress.com/2009/06/floating_house.jpg?w=400&h=335&h=335" title="floating_house" width="400" /></a><br />
<strong>Floating House – Ukraine</strong><br />
Though it seems to defy the laws of nature, this structure in the Ukraine is apparently supported by the beams on the right hand side of the image. It looks a bit fake, don’t you think?</div><div style="text-align: center;"><a href="http://babesajabu.files.wordpress.com/2009/06/upside_down_house.jpg"><img alt="upside_down_house" class="aligncenter" height="320" src="http://babesajabu.files.wordpress.com/2009/06/upside_down_house.jpg?w=400&h=320&h=320" title="upside_down_house" width="400" /></a><br />
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<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj3k5-4viYTNWwWWZgH_LtBa4cqJj_L6jWz67lCgwSo-mGsdyvEQEJ1uhHMxV7csTpCyjDSHDlMMRckbbhjpSFhkTxGdG90SashkZewEj8lO4NoQw-rOItLNWdYLnM9nPbjN-DKwS3xjgbI/s1600/Upside-down-house-by-Ann-Beha-Architects-in-Poland.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="206" n4="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj3k5-4viYTNWwWWZgH_LtBa4cqJj_L6jWz67lCgwSo-mGsdyvEQEJ1uhHMxV7csTpCyjDSHDlMMRckbbhjpSFhkTxGdG90SashkZewEj8lO4NoQw-rOItLNWdYLnM9nPbjN-DKwS3xjgbI/s320/Upside-down-house-by-Ann-Beha-Architects-in-Poland.jpg" width="320" /></a></div><br />
<strong>Upside-Down House – Poland</strong><br />
This structure is not a mistake. The upside-down house really was built just as it looks. Designer Daniel Czapiewski created it as a critique of the “upside-down” nature of his country’s former communist government. Located in Szymbark, Poland.</div><div style="text-align: center;"><br />
</div><div style="text-align: center;">di unduh dari : <br />
<a href="http://wong168.wordpress.com/">http://wong168.wordpress.com/</a><br />
<a href="http://www.topboxdesign.com/">http://www.topboxdesign.com/</a></div><div style="text-align: left;"></div>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7087915564907006426.post-76176502016118336002011-01-13T17:38:00.000+07:002011-01-15T17:48:24.368+07:00Crooked Houses Around the World<h4><span style="font-size: x-small;">by </span><a href="http://www.boncherry.com/blog/author/nate/" title="Posts by nate"><span style="font-size: x-small;">nate</span></a><span style="font-size: x-small;"> on Sunday, June 6th, 2010 | </span><a href="http://www.boncherry.com/blog/category/travel/attraction/" rel="category tag" title="View all posts in Attraction"><span style="font-size: x-small;">Attraction</span></a><span style="font-size: x-small;">, </span><a href="http://www.boncherry.com/blog/category/travel/places-to-visit/" rel="category tag" title="View all posts in Places to Visit"><span style="font-size: x-small;">Places to Visit</span></a><span style="font-size: x-small;">, </span><a href="http://www.boncherry.com/blog/category/travel/" rel="category tag" title="View all posts in Travel"><span style="font-size: x-small;">Travel</span></a><span style="font-size: x-small;"> | </span><a href="http://www.boncherry.com/blog/2010/06/06/crooked-houses-around-the-world/#respond" title="Comment on Crooked Houses Around the World"><span style="font-size: x-small;">No Comments</span></a></h4><div style="text-align: center;">Here are some of the most wackiest and Strangest houses you will ever see! These houses are all real, if my sources are correct, and most of them you can actually visit and see what it’s like in there.</div><div style="text-align: center;"><strong>The Crooked House, Sopot, Poland</strong></div><div style="text-align: center;">This house is situated in Poland and was created by Polish architect Szotyńscy Zaleski.</div><div style="text-align: center;"><a href="http://www.boncherry.com/blog/wp-content/uploads/2010/06/crooked-house-in-sopot-poland.jpg"><img alt="" class="alignnone size-medium wp-image-6143" height="224" src="http://www.boncherry.com/blog/wp-content/uploads/2010/06/crooked-house-in-sopot-poland-300x224.jpg" title="crooked-house-in-sopot-poland" width="300" /></a></div><div style="text-align: center;"><strong>The Crooked <span class="IL_AD" id="IL_AD1">House Of Windsor</span></strong></div><div style="text-align: center;">The Crooked House of Windsor was build over 300 years ago and it is still sturdy until today. Every year, this house receives over 50,000 visitors annually.</div><div style="text-align: center;"><a href="http://www.boncherry.com/blog/wp-content/uploads/2010/06/crookedhouse2.jpg"><img alt="" class="alignnone size-medium wp-image-6144" height="300" src="http://www.boncherry.com/blog/wp-content/uploads/2010/06/crookedhouse2-199x300.jpg" title="crookedhouse2" width="199" /></a></div><div style="text-align: center;"><strong>Erwin Wurm: House Attack (Viena, Austria)</strong></div><div style="text-align: center;"><a href="http://www.boncherry.com/blog/wp-content/uploads/2010/06/30-houseattack-thumb.jpg"><img alt="" class="alignnone size-medium wp-image-6146" height="300" src="http://www.boncherry.com/blog/wp-content/uploads/2010/06/30-houseattack-thumb-240x300.jpg" title="30-houseattack-thumb" width="240" /></a></div><div style="text-align: center;"><strong>Wonderworks (Pigeon Forge, TN, United States)</strong></div><div style="text-align: center;"><a href="http://www.boncherry.com/blog/wp-content/uploads/2010/06/07-wonderworks-thumb.jpg"><img alt="" class="alignnone size-medium wp-image-6147" height="226" src="http://www.boncherry.com/blog/wp-content/uploads/2010/06/07-wonderworks-thumb-300x226.jpg" title="07-wonderworks-thumb" width="300" /></a></div><div style="text-align: center;"><strong>Cubic Houses (Rotterdam, Netherlands)</strong></div><strong></strong><br />
<div style="text-align: center;"><a href="http://www.boncherry.com/blog/wp-content/uploads/2010/06/09-cubichouses-thumb-1.jpg"><img alt="" class="alignnone size-medium wp-image-6145" height="200" src="http://www.boncherry.com/blog/wp-content/uploads/2010/06/09-cubichouses-thumb-1-300x200.jpg" title="09-cubichouses-thumb-1" width="300" /></a></div><div style="text-align: center;"><strong>The Siden House</strong></div><div style="text-align: center;">On the edge of the Himley Estate lies the The Glynne Arms (more popularly known as the Crooked House or The Siden House). It is a house that has suffered badly from mining <span class="IL_AD" id="IL_AD2">subsidence</span>. It lies on what was <span class="IL_AD" id="IL_AD3">the divide</span> between Sir Stephen Glynne’s land and that of the Earl of Dudley.</div><div style="text-align: center;"><a href="http://www.boncherry.com/blog/wp-content/uploads/2010/06/crooked_house.jpg"><img alt="" class="alignnone size-medium wp-image-6148" height="225" src="http://www.boncherry.com/blog/wp-content/uploads/2010/06/crooked_house-300x225.jpg" title="crooked_house" width="300" /></a></div><div style="text-align: center;">Have a nice day!</div><br />
diunduh dari : <a href="http://www.boncherry.com/">http://www.boncherry.com/</a>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7087915564907006426.post-73688482216356522892010-01-04T15:01:00.001+07:002010-01-04T15:01:34.615+07:00Should I use a Company when Investing in Property? By James BaileyThe question I am most often asked as a tax consultant is probably “Should I use a<br />
company when investing in property?” This question needs some background and<br />
does not make good written sense to stand on its own. Unfortunately, there is no<br />
simple answer because so much depends on your circumstances and your plans for the<br />
future.<br />
Rates of Tax<br />
Let’s start with the basics. A company pays corporation tax at 19% on its profits up to<br />
£300,000. Above that level, the rate of tax goes up on a sliding scale, but the<br />
maximum a company will pay on all its profits is 30%.This sounds excellent when<br />
compared to income tax at 22% up to income of £33,300 per year and 40% above<br />
that, but the problem is that the money is still in the company, and there will be<br />
further tax to pay when it is taken out for the shareholders’ use.<br />
“The Corporate Veil”<br />
This is an expression used by the courts to describe the relationship between a<br />
company and its shareholders, though for some reason it always reminds me of exotic<br />
dancers!<br />
The point is that a company is a separate legal person from its shareholders and its<br />
employees, it pays its own tax on its profits and gains, it can be sued for its debts, and<br />
it is the legal owner of the money it makes. If the shareholders want to take money out<br />
of the company, getting it through the corporate veil will usually create a tax charge.<br />
Getting the Cash Out<br />
Broadly, there are five ways you can extract cash from your company. Starting with<br />
the most obvious, they are:<br />
Wages, salaries, and bonuses<br />
Dividends<br />
Benefits in kind<br />
Loans<br />
Liquidations or share sales<br />
Wages, salaries, and bonuses<br />
Generally speaking, this is the most expensive way to extract cash from a company,<br />
because both you and the company will have to pay National Insurance Contributions.<br />
For 2006/07, yours will be at 11% up to a salary of £33,540, and 1% thereafter. The<br />
company will pay employer’s contributions of 12.8%, with no upper limit.<br />
If the company is your only source of employment, however, don’t forget that no<br />
National Insurance is due on wages of less than £97 per week. In these circumstances,<br />
it makes sense to pay yourself (and any other shareholder or family member who<br />
genuinely works for the business) this much per week. Because the company can<br />
claim the cost of your salary as an expense against its profits chargeable to<br />
corporation tax, there will be a saving of just over £958 (£97 times 52 weeks =<br />
£5,044. £5,044 reduction in company’s profit (taxed at 19%) saves £958.36p) as a<br />
result of paying a salary just below the NIC threshold. The income tax payable on the<br />
salary is neither here nor there, because if you were trading as an individual you<br />
would still have had to pay that.<br />
Dividends<br />
If a company “distributes” its profits to shareholders by paying dividends, it cannot<br />
get a deduction from its taxable profits for doing so, so the sums are rather different.<br />
Because dividends are paid out of profits already charged to corporation tax, they<br />
come with a “tax credit” that can be offset against any income tax due from the<br />
shareholder who receives the dividend. The arithmetic is complicated, but basically<br />
what happens is:<br />
If the company pays a dividend in cash (say, £900), you have to add one ninth (£100)<br />
to it to arrive at the taxable amount, so in this case you are treated as receiving £1,000<br />
of taxable income, which includes a “tax credit” of £100.<br />
If you do not pay tax at the higher rate, the tax credit is enough to cover the income<br />
tax due, so you do not need to pay any further tax.<br />
If you are a higher rate taxpayer, you will pay income tax at the “dividend rate” of<br />
32.5% on your dividend of £1,000, giving a tax bill of £325. From this you can deduct<br />
the tax credit of £100, so you have to pay a further £225 in income tax.<br />
It’s much simpler to look at it this way – a higher rate taxpayer will pay income tax of<br />
£225 on a dividend of £900 cash – that’s 25%.<br />
Benefits in kind (cars, holidays, TVs, etc)<br />
These used to be a good way to extract value from your company, because generally<br />
speaking, no National Insurance Contributions were due on benefits that were not in<br />
the form of cash, but the company could still deduct the cost from its profits.<br />
Unfortunately, the rules are now much tighter, and as a general rule, the company will<br />
have to pay NIC on the value of any benefits in kind it provides, so there is no real<br />
point in serious “BIK” planning.<br />
There are a few benefits that are tax free, and thus worth considering. Some common<br />
examples are:<br />
Childcare (up to £55 per week, and subject to various conditions)<br />
Car parking at the workplace<br />
Mobile phones (only one per employee, thanks to this year’s Budget!)<br />
Staff parties up to a cost of £150 per head per year<br />
Loans<br />
There is some quite complex planning that can be done here.<br />
First of all, when setting up a company, it is often wise to lend it the money it needs to<br />
get started, rather than putting this in by subscribing for shares, because the company<br />
can repay that loan in the future with no income tax charge on the lender.<br />
The other side of the coin is if the company lends money to you. Generally speaking<br />
this is unwise, because the company itself has to pay a form of “deposit” to the<br />
taxman, of 25% of the amount loaned – this is repayable when the loan is repaid.<br />
If the company lends more than £5,000 to you, you will be charged to income tax on<br />
the difference between the interest on the loan you pay to the company, and the<br />
“official rate” of interest (currently 5%) – so if you have an interest free loan of<br />
£5,001 for a year, you will pay income tax on £250, meaning £100 tax for a higher<br />
rate taxpayer.<br />
That may sound rather a good deal, but beware – there are Company Law problems to<br />
consider.<br />
More sophisticated planning involves the company lending money and then writing<br />
off the loan – but this is an area where you must have specialist advice to avoid<br />
getting into serious trouble with both the taxman and Company Law.<br />
Sales and Liquidations<br />
If you sell your company to someone else, you are selling them the shares in the<br />
company. If you liquidate your company, the shares cease to exist, and you become<br />
the owner of the company’s assets.<br />
In either case, you will realise a capital gain, based on the difference between the cost<br />
of your shares and the price you get for them, or the value of the company’s assets in<br />
the case of liquidation.<br />
Capital gains are taxed as if they were income, but there are some reliefs that will<br />
reduce the taxable amount. The first £8,800 of your capital gains for the tax year<br />
2006/07 is exempt from tax – this “annual exempt amount” increases each year.<br />
There is also “taper relief”, depending on how long you have owned your shares, and<br />
on whether the company was a “trading company” or not.<br />
In the case of a trading company, the capital gain is reduced by half if you have<br />
owned the shares for one year and by 75% if you have owned the shares for two<br />
years.<br />
Putting this together with the “annual exempt amount” means that you could realise a<br />
gain of £35,200 on your shares in a trading company, and if you had owned them for<br />
two years you would pay no tax - £35,200 reduced by 75% is £8,800.<br />
For other companies, taper relief does not start until you have owned the shares for<br />
three years, and then it only reduces the gain by 5% for each year, until it reaches its<br />
maximum reduction of 40% after you have owned your shares for ten years.<br />
The definition of a “trading company” is a strict one, and unfortunately, a property<br />
investment company is not a “trading company”. Property development companies<br />
(which buy or build properties for resale), or property management companies (which<br />
do not own property, but deal with the collection of rents, repairs, finding tenants, and<br />
so on) can be trading companies, however, so there are planning possibilities for<br />
them.<br />
So, should I use a company or not?<br />
There is no simple answer, and I hope this article has helped explain why, but here are<br />
two general guidelines:<br />
If you do not expect to be paying income tax at the higher rate, there is<br />
probably little tax advantage in using a company – the difference between<br />
19% corporation tax and 22% income tax will probably not justify the cost of<br />
running the company.<br />
If you expect to pay tax at the higher rate, and you intend to reinvest some of<br />
your profits to grow your business rather than taking them all for your<br />
personal use, you may well be better off by using a company – the 19% rate of<br />
corporation tax is a real advantage if the profits are to be retained in the<br />
company rather than taken out using one of the methods described above.<br />
About the Author<br />
James Bailey (CTA) is author of the newly released guide – ‘How to<br />
Use Companies to Slash Your Property Taxes’, which is available<br />
through the Property Tax Portal.<br />
To learn more about his guide click here.Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7087915564907006426.post-2109395265368779052010-01-04T14:59:00.001+07:002010-01-04T14:59:58.806+07:00Energy Performance Certificates in Let PropertyWales requires an Energy Performance Certificate (EPC) to be supplied to the<br />
purchaser as part of the Home Information Pack (HIP). This requirement will be<br />
applied to let property during the course of 2008, both residential and commercial.<br />
The provisions are part of The Energy Performance of Buildings (Certificates and<br />
Inspections)(England and Wales) Regulations 2007 SI 2007/991. This can be found<br />
in full at http://www.opsi.gov.uk/si/si2007/uksi_20070991_en_1.<br />
The requirement is set out in regulation 5 which demands that a prospective tenant<br />
be provided with an EPC at the earliest opportunity and certainly prior to entering<br />
into any contract to rent out the property. The regulation goes on to state that<br />
the certificate must be provided at the earlier of the prospective tenant being<br />
provided with written details about the building or the prospective tenant viewing<br />
the building. If the prospective tenant consents the certificate can be provided<br />
electronically.<br />
Commercial properties with a useful floor area of more than 1,000 sq metres which<br />
are occupied by public authorities or institutions providing public services are also<br />
required to produce a Display Energy Certificate which must be prominently<br />
displayed in the premises. This is unlikely to be an issue for readers of this update.<br />
EPCs are provided by accredited energy inspectors as they are for HIPs. Note that<br />
a domestic energy inspector cannot provide a commercial EPC and vice versa.<br />
Energy Inspectors will need to undergo training and assessment by one of a number<br />
of government-approved organisations and will then need to pay an annual<br />
subscription to maintain their status. Qualified surveyors do not automatically<br />
qualify as energy inspectors but they will be able to qualify more easily.<br />
Note that the only requirement for let property is to provide an EPC and that no<br />
other part of the HIPS regulations applies to rental property.<br />
EPCs remain valid for 10 years or until another certificate is produced for the same<br />
property. Therefore agents and landlords must make sure they always have the<br />
most recent certificate on file.<br />
The regulations come into force for commercial premises with a useable floor area<br />
in excess of 500 sq metres on 6 April 2008 and for all other premises, including<br />
residential properties, on 6 October 2008. There have been suggestions that these<br />
provisions may be delayed but this will most likely only be done for the April date<br />
and there is unlikely to be any delay over introduction of EPCs for residential lets.<br />
The upshot is that from October 2008 agents will need to get EPCs for properties<br />
that they are marketing to new tenants. There will be no need to get EPCs for<br />
current tenancies or renewals to the same tenants. The EPC will then need to be<br />
renewed every ten years.<br />
In terms of the practical position there will be a large number of EPCs required as<br />
the regulations come into force and this will then tail off after a few months as<br />
many properties coming onto the market will have their own EPCs already from<br />
previous sale or rental. Agents will need to consider the best way to deal with the<br />
initial spike and then how they will handle matters long-term. Most agents will be<br />
best to contact their HIPs provider (if they have a sales arm) or make an<br />
arrangement with an energy inspector in their area. Larger agents, who anticipate<br />
a significant volume of work may be better to consider employing an energy<br />
inspector ‘in-house’ on a short-term contract to cover the initial rush and then<br />
contract the work out once this has been dealt with.<br />
Dr David Smith is a trainee solicitor with PainSmith Solicitors, a niche practice<br />
specialising in residential landlord and tenant law. He can be contacted on 01420<br />
565310 or by email at david@painsmith.co.uk. If you wish to subscribe to the<br />
free legal updates service then you should send an email to email updatesubscribe@<br />
painsmith.co.uk.<br />
PainSmith Solicitors Legal Updates are provided for information only and are not legal advice. If you do<br />
have a legal problem, you should talk to a lawyer or adviser before making a decision about what to do.<br />
You may wish to use the CLS/CDS Directory (www.justask.org.uk/public/en/directory) to locate an<br />
adviser. The information provided here is written for people resident in, or affected by, the laws of<br />
England and Wales only. You should note that date given in the update and be aware that theUnknownnoreply@blogger.comtag:blogger.com,1999:blog-7087915564907006426.post-35731179713246071082010-01-04T14:58:00.001+07:002010-01-04T14:58:52.326+07:00"Top Tips for Renting Out Your Property at Home and Abroad""Top Tips for Renting Out Your Property at Home and Abroad"<br />
This article has been contributed by Henry Davis of International Property.ie<br />
International Property.ie is run and managed by Henry Davis MBA. He has been developing<br />
Liverpool property since 1989, as well as property in Manchester, London and Eastern Europe<br />
Make life easy.<br />
1. Make life easy, if buying an overseas property for letting, choose square or rectangular shaped<br />
rooms. Irregular or unusual shaped rooms make a room look smaller and cluttered.<br />
A key selling point for tenants is an en-suite and a decent sized living room is important even if the<br />
bedrooms are a bit on the small size.<br />
Choose the right overseas letting agent.<br />
2. Choosing the right letting agent is vital for a quick rental. Establish which agent generates the<br />
most enquiries from potential tenants in the local area if you are targeting the local long term lets<br />
market.<br />
Consider an agent with a high street location who may be getting the highest footfall or the agent<br />
with a strong online marketing presence. Also look at the local papers in your overseas location<br />
and establish which agents are advertising on a regular basis as they will have a constant stream<br />
of tenants.<br />
If targeting the holiday lets market, then your letting agent should have a user friendly website with<br />
lots of quality pictures to promote your property.<br />
Interior design is important.<br />
3. Furniture and a slick sophisticated professional interior designed look is the key to securing<br />
higher rent and an immediate let. The right look will rent your property faster and also attract better<br />
quality tenants who will care about your property.<br />
It’s surprising how many landlords spend hundreds of thousands buying a property to-let only to<br />
skimp on furnishing and fittings. Consider employing an interior designer or a interior design-lead<br />
furniture supplier who can offer a ‘’wow’’ factor. Pay particular attention to the three piece suite<br />
selection.<br />
This is a key signature piece and the emphasis should to be on a high quality ‘’comfy’’ large suite.<br />
Stay away from overly contemporary furniture especially sofas with small narrow overly firm<br />
cushions with low backs, they look trendy, but can be very uncomfortable.<br />
Once the property is furnished, take high quality pictures or consider a professional photographer<br />
who can make your property look truly amazing. These photos are an important selling tool and will<br />
set your property apart from the competition.<br />
Parking.<br />
4. Parking spaces make your property more rentable; especially in major cities and they can also<br />
be a great investment. However in some holiday resorts they may not be so important so be careful<br />
not to pay over the odds for a space that may never be used.<br />
Too many overseas investor owners may reduce your rental returns.<br />
5. If you are buying an overseas apartment, do not buy in a larger site exclusively sold to investors<br />
especially in developments with twenty five plus units.<br />
When large amounts of properties become available for rent at the same time this will create a<br />
temporary over-supply, reduce your rent and increase the time required to find tenants.<br />
If they are all sold to investors there will be no owner occupiers to take an interest and play an<br />
active role in the management company as all the owners will be based overseas. This is<br />
becoming an increasing problem for Irish investors who have purchased in Spain.<br />
Be involved with your management company.<br />
6. Take an active role in your management company. A well run Management Company ensures<br />
the common areas are clean and will ensure the building itself is well maintained and cared-for.<br />
This makes your property more desirable to perspective tenants.<br />
If the managing agent is not performing well, be ruthless and seek to have them removed as soon<br />
as possible. Many owners play no active role in the running of their management company and this<br />
will impact on the level and standards of services provided by the managing agent.<br />
Internet Marketing.<br />
7. If targeting the holiday lets market, many potential tenants may be coming from different parts of<br />
the world. Ideally you need a basic, but user friendly website for your property with lots of large<br />
high quality pictures.<br />
The website should be listed on holiday let websites and you need to establish which sites are the<br />
most popular. Research online to find the most popular sites which will give you the best chance of<br />
a fast let. Search engines play a key role and you need to choose holiday let listing websites<br />
appearing high on well known search engines.<br />
You can search the typical key words perspective tenants might input. The search engine results of<br />
your own test search will establish which letting sites have a strong online presence as the<br />
websites you find online using keywords prospective tenants may use are the same sites your<br />
tenants will come across in their search for a holiday let.<br />
Keep in regular contact with your overseas agent.<br />
8. Keep in regular contact with your letting agent, ask about the number of viewings, if the property<br />
is slow to rent it is vital to ask for feedback to establish any problem quickly, preferably within days<br />
of the first few viewings.<br />
If your property is slow to rent, act fast, lower the price or have a meeting with the agent to discuss<br />
any problems.<br />
Don’t be greedy.<br />
9. Don’t be greedy. Many landlords overprice trying to hold out for months greedily dreaming of a<br />
higher rent. This is a pointless exercise defeating itself based on the fact the property usually<br />
remains empty for months while the owner seeks an unrealistic rental figure.<br />
If you’re renting in a more competitive market, then price point your property below the competition.<br />
This may hurt initially, but if you have to do it later, financially, it will hurt even more, if after many<br />
months you have to reduce the rent anyway, start lower, be realistic, don’t be greedy and get your<br />
property rented immediately.<br />
Make sure the rent is paid on time!<br />
10. Only accept payments on a standing order basis, if it’s a long term rent as the hassle factor<br />
with cheque or cash just isn’t worth the trouble.<br />
Check your bank account every month and if tenants are late with a payment, advise them strongly<br />
in writing you’re unhappy about it, in effect try to make an issue of their lateness and ask them not<br />
to repeat.<br />
Ask for six weeks deposit instead of the usual four as tenants often withhold the last months rent<br />
as a way of returning their deposit. This way there is some cash available if the property is<br />
damaged.<br />
Henry Davis develops commercial & residential property in Britain.<br />
Website: www.internationalproperty.ie Tel: 0870 234 4000Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7087915564907006426.post-55643737705791277762010-01-04T14:56:00.001+07:002010-01-04T14:56:45.891+07:007 Steps to Cutting your Property Tax<span style="font-family: Verdana; font-size: x-small;">Here are <b>7 legitimate steps </b>to help you start cutting your bills...</span><br />
<span style="font-family: Verdana; font-size: x-small;">1). <b>Buy a property in the most tax-efficient manner! </b></span><br />
<span style="font-family: Verdana; font-size: x-small;">Consider buying property jointly with your partner to potentially use both your Capital Gains and Income tax allowances. Even better, renting out your existing property might help you to benefit from a whole raft of capital gains allowances!</span><br />
<span style="font-family: Verdana; font-size: x-small;">2).<b> Choose a property investment strategy that saves you tax! </b></span><br />
<span style="font-family: Verdana; font-size: x-small;">If you buy property to 'renovate and sell', then you will be taxed differently than if you only 'buy and let' property.</span><br />
<span style="font-family: Verdana; font-size: x-small;">For instance, if you buy and sell property, your gains may be taxed as Income rather then Capital Gains. This means that you need to establish how and which taxes (Income Tax and/ or Capital Gains Tax) will be applied to your property investments.</span><br />
<span style="font-family: Verdana; font-size: x-small;">Once you know how tax will be assessed on your investments, then - and only then - can you establish a tax minimising strategy.</span><br />
<span style="font-family: Verdana; font-size: x-small;">3). <b>Offset ALL costs against income! </b></span><br />
<span style="font-family: Verdana; font-size: x-small;">Offset as many costs against your rental income as possible, to genuinely reduce your bill! Many people are not aware of the numerous costs that can be offset against your property income.</span><br />
<span style="font-family: Verdana; font-size: x-small;">For instance maintenance insurance policies on white goods, gas boilers and plumbing cover, which insure your property against any leaks or problems, can all be offset against rental income.</span><br />
<span style="font-family: Verdana; font-size: x-small;">4). <b>Plan for the future and benefit your family! </b></span><br />
<span style="font-family: Verdana; font-size: x-small;">In 2020 the average house is predicted to cost £330,643. This will create an Inheritance Tax bill of £32,257.20 for the property alone, if allowances continue to stand still. It also means that the inheritor may be forced to sell the family home in order to pay the tax!</span><br />
<span style="font-family: Verdana; font-size: x-small;">Many people are using trusts and gifting options to reduce their potential liabilities to this tax.</span><br />
<span style="font-family: Verdana; font-size: x-small;">5). <b>Get a good accountant and cut his costs too! </b></span><br />
<span style="font-family: Verdana; font-size: x-small;">Poor tax planning and accounts management means bigger accountancy bills - sooner or later! By learning about Property Tax early on in your investment career, you can not only reduce your tax bill, but also by presenting better accounts, you will cut your accountancy bill too.</span><br />
<span style="font-family: Verdana; font-size: x-small;">What is more, the better informed you are about tax - the better questions you can put to your accountant, and the better answers you'll receive.</span><br />
<span style="font-family: Verdana; font-size: x-small;">6). <b>Don't forget to tell the taxman!</b></span><br />
<span style="font-family: Verdana; font-size: x-small;">Make sure you tell the taxman that you are receiving income from property! If you don't tell him now, then when he catches up with you, you probably won't be able to afford to pay him, after he fines you!</span><br />
<span style="font-family: Verdana; font-size: x-small;">7).<b> Investigate tax sooner rather than later!</b></span><br />
<span style="font-family: Verdana; font-size: x-small;">Lastly, many tax benefits require the investor to plan for tax ahead of investing. Hence, the sooner you tackle the issue of Property Tax, the more you'll be able to cut your tax bills and liabilities.</span><br />
<br />
<span style="font-family: Verdana; font-size: x-small;">Contents © </span><span style="font-family: Times New Roman; font-size: x-small;"> <span style="font-family: Verdana; font-size: x-small;">LandlordZONE</span></span><span style="font-family: Trebuchet MS; font-size: x-small;">®</span><span style="font-family: Times New Roman; font-size: x-small;"><span style="font-family: Verdana; font-size: x-small;"> 2006 all rights reserved</span></span><span style="font-family: Verdana; font-size: x-small;"> <br />
</span>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7087915564907006426.post-51031036575598324262010-01-04T14:54:00.001+07:002010-01-04T14:54:21.538+07:00TAXATION OF PRIVATE LANDLORDS<div style="text-align: justify;">TAXATION OF PRIVATE LANDLORDS<br />
</div>The Tax Position of the Small Private Landlord<br />
· The private rented sector is possibly the only sector of the economy where the tax and<br />
regulatory systems work to prevent the growth of small and medium-sized enterprises<br />
into larger businesses.<br />
· This is the consequence of several discriminatory anomalies which exist within the tax<br />
system in the way that private landlords are treated compared with other businesses.<br />
· The Anomaly of Trading Status<br />
o Property letting is one of the few business activities which is not treated as a<br />
trade for tax purposes.<br />
o Income from property is taxed under Schedule A as investment income,<br />
regardless of whether the income is generated from pure investment or from a<br />
property ownership and management business. Tax is now charged under<br />
Schedule A on annual profits arising from a business carried on for the<br />
exploitation, as a source of rents or other receipts, of any estate, interest or<br />
rights over land in the UK (Finance Act 1998 Schedule 1). The profits of a<br />
Schedule A business are computed in the same way as a trade (Finance Act<br />
1998 Schedule 4).<br />
o However, a Schedule A business is not a trade. It simply adopts Schedule D<br />
Case I rules on the computation of profits. Section 74 of the Income and<br />
Corporatio n Tax Act 1988 states ‘in computing the amount of profit or gain to<br />
be charged under Schedule D Case I, no sum shall be deducted in respect of<br />
any disbursement or expense not being wholly or exclusively laid out or<br />
expended for the purposes of a trade, profession or vocation’.<br />
o The Inland Revenue explained this by saying that “property letting is seen<br />
primarily in the nature of the investment. That is, the return to property<br />
owners derives essentially from the property itself rather than from services<br />
provided”. From this flows the conclusion that property letting is primarily an<br />
investment rather than an entrepreneurial activity.<br />
o Property does not produce a return simply by existing; it must be managed and<br />
worked to produce an income stream. How can those who themselves market<br />
and manage the properties which they own can be said to deriving the return<br />
solely from the investment?<br />
· The Anomaly of Relief on Management Costs<br />
o Because this form of business is not regarded as a trade, a landlord managing<br />
his own property is not able to claim the costs of managing his property and<br />
lettings business against tax. However, he would be able to claim these costs if<br />
he were using the services of a managing agent.<br />
2<br />
· The Anomaly of Capital Gains Tax Rollover Relief<br />
o Unlike other businesses, because they are not regarded as a trade, lettings<br />
businesses are unable to claim rollover relief from capital gains tax when they<br />
sell a capital asset with the intention of reinvesting the funds realised in their<br />
business. Under section 152 of the Taxation of Chargeable Gains Act 1992,<br />
rollover relief applies for ‘consideration which a person carrying on a trade<br />
obtains for the disposal …of his assets used, and only used…for the purposes<br />
of a trade… and is applied by him in acquiring other assets, which, on<br />
acquisition are taken into use and used only for the purposes of a trade….’.<br />
o This severely limits the flexibility, mobility and above all the efficiency of<br />
investment, particularly amongst the smaller investors, since the decision to<br />
sell to reinvest carries with it the same tax penalty as the decision to sell to take<br />
the profit. Landlords continue to hold property which does not perform as well<br />
as alternative property investments because the impact of capital gains tax<br />
renders selling and investing elsewhere a less attractive or even unviable<br />
option.<br />
o It also limits the potential for growth (see Appendix 1 for worked example)<br />
· The Anomaly of Earned Income<br />
o Full- time landlords, whose sole activity is managing their property and their<br />
lettings business, and who have no other source of income, cannot contribute<br />
to personal pension schemes, because the tax relief on contributions is only<br />
permitted on “earned income”, and excludes “investment income” (sections<br />
639(1) and 644 of the Income and Corporation Taxes Act 1988).<br />
o It may be argued that the property holdings offer a more than adequate<br />
substitute for a pension fund. However, this implies that the owner will sell<br />
the portfolio on retiring, thereby preventing the business passing from one<br />
generation to the next. Even if the portfolio is sold, the landlord will still face<br />
a substantial capital gains tax liability on the proceeds.<br />
o Although a landlord is not able to qualify for a private pension scheme, he is<br />
required to pay National Insurance contributions.<br />
· The SIPPS Anomaly<br />
o Some landlords have generated Schedule D income (usually through trading<br />
properties), and have used this to contribute to Self-Investment Personal<br />
Pension Schemes.<br />
o The SIPPS rules allow investment in commercial property, and allow it to be<br />
let, but expressly forbid direct investment in residential property or land<br />
connected with such an investment, except where commercial property<br />
includes a residential element which is either occupied by an employee as part<br />
of the job or is an integral part of the business premises and is occupied by a<br />
person who had no family connection with the owner.<br />
3<br />
o The result has been that professional residential landlords have bought<br />
commercial properties, often shops with flats above them, and have been<br />
compelled to leave the flats vacant, despite their having a residential lettings<br />
business, because of the potentially adverse impact on the pension<br />
arrangements. (This restriction is equally frustrating for small pension fund<br />
investors who are looking principally to invest in the commercial property, and<br />
are frustrated from making the most effective use of their funds because the<br />
flat above a prospective investment is tenanted).<br />
· The Anomaly of VAT<br />
o Residential rented property is an exempt supply for VAT purposes, and so any<br />
payments of VAT made to suppliers of goods or services, for example,<br />
building contractors or managing agents, are irrecoverable. This increases the<br />
cost to a landlord and, when combined with the tight margins under which<br />
many smaller landlords operate, can act as a disincentive to repair.<br />
o The additional cost of VAT on management expenses may discourage those<br />
landlords who lack the skills, the time or the inclination to manage their<br />
lettings from engaging an age nt.<br />
o On the other hand, some very small landlords are able to make use of the<br />
partial exemption rule and the de minimis limit. It is also possible to recover<br />
VAT where service charges are charged separately from rents.<br />
Stamp Duty<br />
· Since the present Government came to power in 1997, stamp duty on property<br />
transactions has quadrupled from 1% to 4%.<br />
· When the rate of stamp duty was set at 1%, investors were prepared to accept the tax<br />
as part of the incidental costs of a transaction. However, the greater cost of the tax<br />
liability once the threshold is crossed is now having an effect on investment decisions.<br />
The rate of return required by the institutions takes no account of the tax leakage. By<br />
reducing the level of funds available for actual investment, the increases in stamp duty<br />
have made it more difficult to achieve the required level of return.<br />
· The purchase of multiple properties as a portfolio, the individual components of which<br />
might all be priced below the stamp duty threshold, is treated as a single transaction,<br />
which exceeds it. Thus if 10 flats, each valued at £50,000, are sold individually, the<br />
stamp duty payable is nil. If the same 10 flats are bought together, for the same price,<br />
the Treasury now receives a windfall gain of £20,000.<br />
· The new stamp duty reliefs which were introduced for registered social landlords in<br />
the 2000 Budget means that it now appears that stamp duty acts directly as a tax on<br />
investment in the private residential rented sector.<br />
4<br />
Incentives to Invest<br />
· Speaking to the Social Market Foundation on 2 August 2001, the Secretary of State,<br />
Stephen Byers MP repeated the Government’s willingness to continue the dialogue<br />
with investors on tax issues to encourage investment.<br />
· The BPF believes that tax reform to remove these anomalies would prove more<br />
effective in encouraging investment than tax breaks.<br />
· The case for a tax-transparent securitised property investment vehicle remains strong.<br />
· Housing Investment Trusts were introduced in 1995. No one has launched one<br />
successfully to date. Few now believe they will ever be used.<br />
· The structure which was put in place did not appeal to investors for several reasons:<br />
o The rules were too complex;<br />
o The valuation limits meant that it was difficult to acquire properties of a<br />
suitable quality;<br />
o The restrictions on capital growth were unacceptable;<br />
o The Stock Exchange insisted on listing them as Investment Trusts, which<br />
meant that they would trade at a discount;<br />
o The loss of relief on Advance Corporation Tax credit meant that there was not<br />
sufficient tax transparency to make them an attractive investment opportunity.<br />
· The Government rejected the case for a tax-transparent securitised vehicle for indirect<br />
property investment following the 2000 Budget. The Housing Green Paper refers to<br />
the Government’s willingness to explore other tax-related measures.<br />
Recent Initiatives<br />
· Capital Allowances on Costs of Conversion of Flats over Shops<br />
o The 2001 Budget introduced 100% capital allowances on spending to create<br />
flats to rent above shops and commercial premises. The scheme is complex<br />
and includes many restrictions on the types of buildings which will qualify.<br />
o The Government does not wish the allowance to be used to create high value<br />
flats, so all applications will be subject to the test of a notional rent limit. The<br />
conversion will only qualify for the allowance if, on the date when expenditure<br />
is first incurred, it can be reasonably expected that the flat would let for less<br />
than a specified figure. These limits are “notional” because the Government<br />
recognises that the market may move between the commencement of a scheme<br />
and the flats actually being let. It is not clear how this will be policed.<br />
o The general response from the industry has been that, while any tax concession<br />
is to be welcomed, it is unlikely to be used widely or make a significant<br />
contribution to increasing the sector.<br />
5<br />
· VAT on Housing<br />
· The 2001 Budget also reduced VAT to 5% for the cost of:<br />
o Renovating sinvle household dwellings that have been empty for 3 years or<br />
more;<br />
o Changing the number of single household dwellings in a building (eg,<br />
converting a house into flats);<br />
o Converting a non-residential property into a single household dwelling or<br />
number of single household dwellings;<br />
o Converting a single household dwelling or house in multiple occupation into a<br />
care home or other qualifying “relevant residential” use (or a care home into a<br />
single household dwelling); and<br />
o Converting a housing in multiple occupation (eg, bedsit accommodation) into a<br />
single household dwelling (or vice- versa).<br />
· Ending of the Extra-Statutory Concession on Improvements<br />
o The Inland Revenue ended its extra-statutory concession whereby a notional<br />
amount may be deducted from expenditure on improvements (which is<br />
regarded as capital expenditure, and therefore non-deductible ), to allow for the<br />
element of cost on repair and maintenance (which as revenue expenditure is<br />
deductible) which is made unnecessary by the improvement from 1 April 2001<br />
onwards.<br />
o The Revenue is now expected to take a much stricter approach towards<br />
interpreting the distinction between improvements and repairs and renewals.<br />
This will problems for all landlords. An essential repair can sometimes be so<br />
extensive that it could be argued as an improvement. Problems might also<br />
arise where the advances in stand ards or technology mean that maintenance to<br />
modern standards appears to be an improvement, for example in replacing<br />
timber framed single-glazed windows with UPVC double-glazing.<br />
Is There A Case For Tax Breaks?<br />
· Tax breaks are essentially devices intended to bridge a financial gap in order to render<br />
an uneconomic activity commercially viable. But would such devices be sustainable<br />
in the long run?<br />
· We do not want artificial tax breaks that distort investment choices and do not tackle<br />
the problems faced by the sector<br />
Housing Green Paper 2000<br />
6<br />
· Concessions of this sort tend to be transient and, during their brief existence, to<br />
stimulate investment which would never have been justified under normal commercial<br />
criteria.<br />
Nick Raynsford, BPF Residential Symposium 1999<br />
· The Government insists that the tax system should be tenure- neutral, so as not to<br />
favour one form of occupation over another.<br />
For further information contact Richard Lambert rlambert@bpf.org.uk<br />
British Property Federation<br />
September 2001<br />
M:\Committees\Residential Property Committee (RPC)\Work Box\RPC_WB(01)0907 WEBSITE TAX POSITION PAPER.doc<br />
7<br />
APPENDIX 1: EXAMPLE OF POTENTIAL FOR CAPITAL GAINS TAX<br />
ROLLOVER ALLOWANCE<br />
An investor buys a property to let in 1990 at purchase price £500,000<br />
Gross rental yield of 8% pa £ 60,000<br />
Income tax payable @ 40% £ 24,000<br />
He holds it for ten years£ then sells because of poor performance £750,000<br />
Gross profit £250,000<br />
Indexation allowances @ 25% of original purchase price - £125,000<br />
Net capital gain £125,000<br />
Capital Gains Tax payable @ 40% £ 50,000<br />
Assume rollover relief were granted up to a maximum of £100£000 in any<br />
one tax year (assuming indexation allowances abolished to reduce net cost<br />
to the Exchequer)<br />
Purchase price of investment 1990 £ 500,000<br />
Sale price 2000 £ 750,000<br />
Capital Gain £ 250,000<br />
Tax liability if taxed @ 40% £ 100,000<br />
Rollover Relief enables landlord to use proceeds from sale to gear up to<br />
double his original investment<br />
New investment project completed value £1,500,000<br />
Gross yield on completion of 12% pa £ 180,000<br />
Tax payable @ 40% £ 72,000<br />
Net increase in taxable revenue (New gross yield - original gross yield) £ 120,000<br />
Net increase in tax payable (New liability - original liability) £ 48,000<br />
Stamp duty on sale of original investment @ 4% £ 30,000<br />
Stamp duty on purchase of new investment @ 4% £ 60,000<br />
Total stamp duty payable £ 90,000<br />
Total tax expenditure £ 100,000<br />
Total tax yield (year 1) £ 162,000<br />
Net increase to Exchequer (year 1) £ 62,000<br />
[(Stamp Duty + Income Tax) – reduction in CGT liability]<br />
Net increase to Exchequer (subsequent years) £ 48,000Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7087915564907006426.post-81275993368959377822010-01-04T14:35:00.000+07:002010-01-04T14:35:06.958+07:00Houses in Multiple Occupation(HMOs)Houses in Multiple Occupation(HMOs)<br />
Introduction<br />
1.1 What are Houses in Multiple Occupation (HMO)?<br />
The legal definition of "House in Multiple Occupation" is a "house which is occupied by persons who<br />
do not form a single household".<br />
The introduction of the Housing Act 2004 has not redefined the definition of an HMO but has<br />
made it clearer (so they say).<br />
The Housing Act 2004 now defines an HMO in three key parts, 'house', 'occupied' and 'not a<br />
single household'. Definition of a HMO as defined by sections 254-258 of the Housing Act<br />
2004<br />
1.2 Section 254<br />
(1) “ For the purposes of this Act a building or a part of a building is a ” house in multiple occupation<br />
“ if:<br />
a it meets the conditions in subsection 2 (“the standards test”)<br />
b it meets conditions in subsection 3 (“ the self contained flat test”)<br />
c it meets conditions in subsection 4 (“the converted building test”)<br />
d an HMO declaration is in force in respect of it under section 255<br />
e it is a converted block of flats to which section 257 applies<br />
(2) A building meets the standard test if<br />
a it consists of one or more units of living accommodation not consisting of self contained flats<br />
b the living accommodation is occupied by persons who do not form a single household<br />
(section 258)<br />
c the living accommodation is occupied by those persons as their only or main residence or<br />
they are to be treated as so occupying it (section 259)<br />
d their occupation of the living accommodation constitutes the only use of that dwelling<br />
e rents are payable or other consideration is to be provided in respect of at least one of<br />
those persons’ occupation of the living accommodation<br />
f two or more of the households who occupy the living accommodation share one or more basic<br />
amenities or the living accommodation is lacking in one or more basic amenities<br />
(3) A part of a building meets the self-contained flat test ifa<br />
it consists of self contained flats; and<br />
b paragraphs b –f of subsection 2 apply<br />
(4) A building or a part of a building meets the converted building test if<br />
a it is a converted building<br />
b it contains one or more units of living accommodation that do not consist of a self contained<br />
flat or flats<br />
c the living accommodation is occupied by persons who do not form a single household<br />
d the living accommodation is occupied by those persons as their only or main residence or<br />
they are to be treated as so occupying it<br />
<br />
e their occupation of the living accommodation constitutes the only use of that accommodation<br />
f rents are payable or other consideration is to be provided in respect of at least one of those<br />
persons’ occupation of the living accommodation<br />
1.3 Section 257<br />
(1) For the purpose of this section a “converted block of flats” means a building or part of a<br />
building whicha<br />
has been converted into, and<br />
b consists of,<br />
self contained flats<br />
(2) This section applies to a converted block of flats ifa<br />
building work undertaken in connection with the conversation did not comply with the<br />
appropriate building standards and still does not comply with them; and<br />
b less than two thirds of the self contained flats are owner-occupied.<br />
(3) In subsection 2 “appropriate building standards” meansa<br />
in the case of a converted block of flatson<br />
which building work was competed before 1st June 1992 or which is dealt with by regulation 20 of<br />
the Building Regulation 1991 and which would not have been exempt under those Regulations<br />
1.4 Section 258<br />
1.5 HMOs: persons not forming a single household<br />
This section sets out when persons are to be regarded as not forming a single household for the<br />
purposes of section 254<br />
(2) persons are to be regarded as not forming a single household unlessa<br />
they are all members of the same family, or<br />
b their circumstances are circumstances of a description specified for the purposes of this<br />
section in regulations made by the appropriate national authority.<br />
(3) For the purpose of subsection 2(a) a person is a member of the same family as another<br />
person ifa<br />
those persons are married to each other or live together a husband and wife (or an equivalent<br />
relationship in the case of persons of the same sex);<br />
b one of them is a relative of the other, or<br />
c one of them is, or is a relative of, one member of a couple and the other is a relative of t he<br />
other member of the couple<br />
(4) For the purposesa<br />
a 2couple” means two persons who are married to each other or otherwise fall within<br />
subsection (3) (a);<br />
b “relative” means parent, grandparent, child, grandchild, brother, sister, uncle, aunt, n<br />
ephew, niece or cousin;<br />
<br />
c a relationship of a half-blood shall be treated as a relationship of the whole blood; and<br />
d the stepchild of a person shall be treated a his child<br />
Occupied means 'lived in' (Silbers v Southwark LBC 1977). Therefore vacant houses cannot<br />
be HMOs under the legal definition.<br />
IN SUMMARY<br />
The new legislations, an HMO is a property that is:<br />
Occupied by 3 or more people, forming 2 or more households, sharing amenities eg.<br />
Bathroom and kitchen,. OR<br />
Converted into self contained flats, but does not meet the requirements of the 1991 Building<br />
Regulations AND al least one third of the flats are privately rented , OR<br />
Occupied by 3 or more people forming 2 or more households in a converted building that is<br />
not entirely self contained. Eg basement flat with shared accommodation.<br />
In a maisonette at ground and first/second floor levels<br />
Do all HMO’s need to be licensed?<br />
NO. Any HMOs that are self contained flats are exempt for licensing ------<br />
However the Housing Act 2004 say that certain types of larger HMOs must be licensed – This<br />
is Mandatory Licensing<br />
Three or more storeys high and are occupied by 5 or more persons who do not form a single<br />
household<br />
Other smaller HMOs may be licensed and this is Additional Licensing<br />
Only two storeys high and occupied by 5 or more persons, who do not form a single<br />
household<br />
Some properties have habitable basements or attics, these would be included when<br />
calculating the number of storeys<br />
1.5.1.1 Adoption<br />
It seems that although there are a set of straight forward rules under the Regulations, the Housing<br />
Act has placed the onus back on to each local council in the country to adopt the principles. Although<br />
there are set criteria (as laid out above) each will have a different approach on the subject. This<br />
therefore leads to controversy on who, what, how Landlords and Agents are to deal with HMO’s.<br />
Licensing your HMO<br />
If the property is let to 5 or more persons sharing, then you will have to License the house and pay a<br />
fee to the Local Authority. This fee will vary from council to council and will last for five years<br />
<br />
Failure to License the property may result in prosecution a fine of £20,000, and is a criminal offence.<br />
You will not be able to serve notice to quit on tenants and you may have to pay back ALL the rent<br />
collected, back to the date it should have been licensed!!! BE WARNED<br />
This would also give rise to the landlord not being a “Fit and Proper Person”<br />
1.9 What is a Fit and Proper Person?<br />
This is a key condition of obtaining and keeping a license – but what does it mean?<br />
Owners or managers under Mandatory or Selective Licensing Schemes must apply. The Local<br />
Authority must grant a License IF it is satisfied that:<br />
The HMO is reasonably suitable (etc)<br />
The Licence holder would be a fit and proper person.<br />
The criteria in deciding where the person is fit and proper:<br />
The Local Authority must have regard to the statutory criteria set out in Section (66 (2) and have<br />
regard to any other facts or matters which it considers to be relevant<br />
Matters to which the Local Authority must have regard:<br />
Any offence involving fraud, or other dishonesty, or violence or drugs or in Section 3 of the Sex<br />
Offences Act 2003<br />
Practiced unlawful discrimination of the law in connection with the carrying out of any business<br />
Contravened any provision of the law relating to housing or landlord and tenant law – Illegal eviction<br />
etc.<br />
Acted other than in accordance with any code of practice for the management of HMO’s<br />
Associates<br />
The Local Authority may take into account evidence of any of the above conduct by a person<br />
“associated or formerly associated with”, the proposed licence holder or manager “whether on a<br />
personal, work or other basis”, if relevant.<br />
Any “Spent” convictions cannot be taken into account. However, a lack of conviction may not mean<br />
that the incident was not relevant.<br />
Managers:<br />
Assumption: the person having control of the property is the most appropriate person to hold the<br />
licence. i.e.: the person who receives the rents.<br />
The proposed manager, if not the licence holder, and all other persons involved in the management<br />
must also be fit and proper<br />
The Decision<br />
If the Local Authority is not satisfied – IT MUST REFUSE and make an Intermediate Management<br />
Order instead. Any proposed reasons to be given in advance. There are 14 day to make<br />
representations and the Right to appeal to the Residential Property Tribunal (RPT).<br />
1.10 Local HMO Requirements<br />
It is therefore highly recommended that you speak to the individual Environmental Health & Trading<br />
Standards Dept. in your Local Authority first before buying a property for letting as an HMO. If you<br />
already own one make sure that you are up to date with the new requirements.<br />
2. Risk Assessment<br />
Objective<br />
Part 1 of the Housing Act replaces the Housing Fitness Standard set out in the Housing Act 1985 by<br />
the Housing Health and Safety Rating System (HHSRS) as the basis for local authority intervention<br />
to tackle unacceptable housing conditions. The principle behind the HHSRS is that a dwelling should<br />
provide a safe and healthy environment for the occupants and any visitors. This is to be achieved<br />
over time by refocusing the basis for Local Housing Authority (LHA) intervention on the severity of<br />
health and safety hazards in the home, assessed under HHSRS. The 24 broad hazards that can be<br />
assessed under HHSRS have replaced the previous fitness criteria. It is generally accepted that, in<br />
practice, this criteria bears no clear relationship to the hazards in a property.<br />
The HHSRS:<br />
Provides an inspection tool for surveyors. As well as looking at the defects on a dwelling, it enables<br />
their effects on the health and safety of potential vulnerable occupants to be assessed.<br />
This point was not addressed under the previous fitness standard.<br />
Generates hazard scores that provide a basis upon which Local Authority may determine the most<br />
appropriate enforcement action.<br />
Poor management and the presence of unscrupulous landlords can also increase health and safety<br />
risks for tenants even when the HMO is in an acceptable state of repair. Responsible landlords are<br />
less likely to exploit vulnerable or disadvantaged tenants and good management practice such as<br />
regular inspections can also reduce risks. Health and safety issues can also arise because of the<br />
occupancy profiles associated with HMO use. The behavior of tenants with alcohol or drug<br />
dependencies, or mental health problems can increase the risk of death or injury to both themselves<br />
and other tenants, accentuating the need for responsible and responsive management.<br />
The Housing Health and Safety Rating System (HHSRS) will apply to any unit of residential<br />
accommodation and to all landlords, and will be the principal tool in assessing physical conditions in<br />
HMOs under the licensing system.<br />
Licensing will ensure proper enforcement of the HHSRS in the highest risk HMOs. Aside from<br />
physical standards in HMOs, the other main elements of reform will focus on the management<br />
competency and the 'fitness' of those managing or providing HMO accommodation.<br />
2.1<br />
2.2 Housing Health & Safety Rating System (HHSRS)<br />
<br />
The Housing Act 2004 has introduced a new way to assess the condition of homes in England<br />
& Wales. Within the Act, the Housing Health & Safety Rating System is a risk assessment<br />
approach to assess hazards to health and safety in dwellings, and on which remedial and<br />
enforcement action can be taken if<br />
necessary.<br />
The HHSRS provides a method of grading the severity of threats to health and safety in any<br />
dwelling. A dwelling can be a:<br />
House<br />
Self-contained flat<br />
Non self contained flat<br />
Bedsit<br />
The key structure of the system is that a dwelling, including the structure and associated outbuildings<br />
and garden, yard and/or other amenity space, and means of access, should provide a safe and<br />
healthy environment for occupants and, by implication, for any visitors.<br />
It should be borne in mind that all properties contain hazards, for example stairs, electrical outlets<br />
etc. and it is not possible (or desirable) to remove all hazards. The emphasis should be to minimise<br />
the risk to health as appropriate.<br />
What are the hazards?<br />
Dampness, excess cold / heat<br />
Pollutants e.g. asbestos, carbon monoxide<br />
Lack of space, security or lighting or excessive noise<br />
Poor Hygiene, sanitation, water supply<br />
Accidents – fall, electric shock, fires, burns, scalds<br />
Collisions, explosions, structural collapse<br />
Damp and mould growth caused by rising or penetrating damp should be seen as a high priority<br />
Condensation mould should be addressed by better ventilation and ambient temperatures<br />
Asbestos and such like need to be removed from the property by specialist firms<br />
Carbon Monoxide detectors should be installed<br />
Security measures should be put in place, such as 5 lever locks on main entrance doors, security<br />
lighting with PIR detectors<br />
Better provisions for waste products, food. Provisions for storage of cleaning agents away from food<br />
storage and preparation areas.<br />
Constant supply of clean hot and cold water<br />
Safeguard against trips or falls due to uneven surfaces, worn carpets etc.<br />
Safeguard against electric shock by having the installation tested by an NICEIC contractor<br />
Safeguard against fires by installing smoke detectors as standard, fire extinguishers and blankets in<br />
kitchens.<br />
Safeguard against structural collapse by regular and routine maintenance throughout the letting<br />
(Above information extracted from Asset Skills essential information for landlords and agents)<br />
The Owner, Landlord, or Management Agent will be responsible for making changes to the property.<br />
Failure to comply will local authority notices can carry a penalty of up to £5,000<br />
<br />
Therefore as management agents we have to “Self Assess” a property to determine whether the<br />
property has hazards that may cause a health or safety risk to tenants. Should potential hazards be<br />
found we would inform you to correct them prior to acting as agents. We would refer you to “B”<br />
overleaf regarding our position.<br />
The Effect of the Defect could cost lives not just your pocket<br />
It is therefore the Landlord’s responsibility to ensure that the property is made available for letting in<br />
a safe condition and in compliance of the above regulations prior to the marketing of the property.<br />
Although we do not purport to be experts in this field, we have suitable knowledge of potential<br />
defects. It is recommended that you seek advice from qualified contractors on all aspects.<br />
3. Categories of Houses in Multiple Occupation<br />
Not all HMOs are treated alike!<br />
The various categories of HMO are listed below and, depending on your local authority, each<br />
'category of HMO' will be required to meet different levels of fire safety etc…<br />
However, it must be stressed that the inclusion of a particular class of premises in the list, e.g.<br />
guesthouse, does not mean that it is necessarily an HMO. It is the circumstances of the occupancy<br />
(i.e. temporary stay) that will determine this.<br />
3.1 Category A - bedsits<br />
Houses occupied as individual rooms, bedsits and flat-lets which are considered to have a number of<br />
rooms for exclusive occupation, not necessarily behind one door, with some sharing of amenities<br />
usually bathroom and/or toilet and maybe kitchen. In such a house, each occupancy would be<br />
separately rented.<br />
3.2 Category B - student accommodation<br />
Houses occupied on a shared basis. These properties would normally be occupied by students<br />
where, activities, the occupiers might live as a single household unit but for others do not. Usually<br />
the house would be let to a defined group and not individuals.<br />
Although most common amongst students it is increasingly found by groups of people coming<br />
together in the house who share certain amenities as they wish but have certain individual facilities<br />
such as bedroom<br />
3.3 Category C - houses let in lodgings<br />
Houses described as "houses let in lodgings" i.e. catering for lodgers on a small scale, not living as<br />
part of the main household normally with a resident owner/occupier.<br />
3.4<br />
3.5 Category D - 'hostels and guest houses'<br />
Houses generally referred to as "hostels", "guest houses", and "bed and breakfast accommodation".<br />
<br />
They will provide accommodation for people with no other permanent place of residence.<br />
This category would include hotels, guesthouses and bed and breakfast establishments used by<br />
Local Authorities to house homeless persons whose only financial support in State Benefit.<br />
3.6 Category E -'Old peoples homes etc…'<br />
Houses that are hostels and require registration under the Registered Homes Act 1984. The homes<br />
provide board and personal care for the persons in need of such care due to old age, disablement,<br />
past or present dependence on alcohol or drugs, or past or present mental disorder.<br />
Unlike Category D houses these houses would provide permanent accommodation for people with<br />
nowhere else to go; this would be their only home and would include a level of support not normally<br />
present in Category D accommodation which only provides a home for the time being.<br />
3.7 Category F - 'Rooms with no common areas'<br />
Houses, which by conversion, contain dwellings that are self-contained and behind one access door<br />
off a common area. There would be no sharing of amenities with occupiers of other dwellings<br />
3.8 If your property falls in more than one category?<br />
There is no clear boundary between each of these categories and a house (or even part of a house)<br />
might move between categories over a period of time.<br />
Remember that the responsibility of enforcing the HMO legislation falls to the Local Authority and it is<br />
the HMO housing team.<br />
In addition, it has been know for different officers from the Local Authority to categories and treat the<br />
same property (or identical properties) differently.<br />
For example, one property was required to use fire safety doors on only the front and internal kitchen<br />
doors. Another office when viewing the property insisted on fire doors on all rooms in the property.<br />
4. Legal aspects of letting HMOs<br />
The following two Acts of Parliament deal with all aspects of the letting (not just HMOs). All other<br />
Acts and Regulations come under these Acts.<br />
Consumer Protection Act 1987<br />
Health & Safety At Work Act 1974<br />
Therefore, if you feel that the Furniture, Gas, Electric, Water and structure of the property are sound,<br />
and it comes to light that there are defects, you will fall foul of these Acts, so there is no escaping the<br />
fact that all areas of the property, whether structural or fittings, must be in safe working condition.<br />
The consumer in this circumstance is deemed to be the Tenant.<br />
There is plenty of guidance available for Gas (see section 4.3), but little is advice for electrical<br />
equipment and wiring which came into force in January and February 1995 respectively.<br />
<br />
4.1 Furnishings<br />
Two acts apply to the furnishings of HMOs (Houses in Multiple Occupation)<br />
Fire and Furnishing (Fire) (Safety) Regulations 1988<br />
Fire and Furnishings (Fire) (Safety) (Amendment) Regulations 1993<br />
The Regulations apply to all upholstery and upholstered furnishing, loose fittings; permanent or loose<br />
covers, which we will refer to as "Furniture" in this article, but the technical criteria, are beyond the<br />
scope of this article.<br />
You cannot give, sell, lend or supply in any other way Furniture that does not comply with the<br />
Regulations.<br />
Labels must be attached to the Furniture to say that the article complies.<br />
If no label is visible, it will be deemed NOT to comply and must be removed from the property. In<br />
certain circumstances, if document can be produced to confirm the article complies, this may be<br />
acceptable. On mattresses, if there is no label, there may be a BS number, this should be BS7177<br />
and is acceptable.<br />
4.2 Electrical requirements<br />
Plugs Sockets etc (Safety) Regulations 1994<br />
Electrical Equipment (Safety) Regulations 1994<br />
Low Voltage Electrical (Safety) Regulations 1990<br />
The first set of regulations applies to the electrical wiring installation in the property, while the second<br />
deals with plugs, sockets and flexible leads to the domestic appliances supplied with the property as<br />
part of the furnishings or fittings.<br />
You are required to ensure that people and domestic animals are adequately protected against<br />
danger of physical injury or other harm that might be caused by electrical contact, direct or indirect.<br />
The installation and all electrical equipment should be tested by an approved and qualified contractor<br />
on a regular basis (every five years) or earlier if alterations have been carried out in the meantime.<br />
If the incoming mains is not protected by an RCD (Residual Current Device) or 'circuit breaker' to<br />
protect against potential electric shocks, one must be fitted if you install an electric shower.<br />
On an upgrade of the wiring it is advisable that a new consumer be installed to cope with the high<br />
demand in such a property.<br />
The incoming gas main must be earthed not more than 1 metre inside the building – Equipotential<br />
Bonding.<br />
Gas and water pipes need to be "Cross Bonded" or supplementary bonded. That is having a<br />
continuous earth bonding to all gas and water pipes back to the main earth conductor of the<br />
distribution board.<br />
The consequences for not making adequate provisions to ensure the safety of such installations and<br />
equipment could be very serious and is a criminal offence.<br />
My advice and company practice is to instruct an approved and qualified electrician to undertake an<br />
electrical safety check on the property. A report is then issued and any defects will then need to be rectified before a tenancy commences. You will be required to submit a test certificate to the local<br />
authority for the gas and electric supplies.<br />
Plan for regular (perhaps annual) checks, as damage by tenants or alterations on the property can<br />
affect the property condition.<br />
4.3 Gas requirements<br />
Gas safety (Installation and Use) Regulations 1998 and amendments<br />
These Regulations makes it a legal obligation to ensure that ALL gas appliances, whether fixed or<br />
portable, be maintained and checked every 12 months. A record should be kept of these checks and<br />
any maintenance undertaken.<br />
The appliances should be checked and maintained only by qualified CORGI ACOPS registered<br />
installers. The checks also apply to flues, pipe work and ventilation.<br />
Information must be supplied to the tenants of such checks and any previous maintenance work<br />
records must be made available to them.<br />
A copy of the Gas Safety Certificate MUST be given to tenants at the commencement<br />
of the Tenancy.<br />
Any breach of the Regulations could result in prosecution - with fines now up to £60,000 and/ or<br />
even imprisonment for severe non-compliance where death or injury is caused.<br />
4.4 General Product Safety Regulations 1994<br />
The "Catch All" Regulations came into force in October 1994, implementing a European Council<br />
Directive in 1992: Any product supplied to a consumer (in this case the tenant) must be safe. A<br />
dangerous product is defined as one that that is not safe. Only antiques are exempt.<br />
Failure to comply with any of the Regulations may result in prosecution<br />
4.5 HMO Regulations<br />
Housing (Management of Houses in Multiple Occupation) Regulations 2006<br />
Section 234 of the Housing Act 2004 makes provisions for the person(s) having control of the<br />
property.<br />
The person in control of the property, namely, the Owner, Agent or whomsoever has certain duties to<br />
keep the property in safe, clean and good standard of repair. These are such areas as the water<br />
supply and drainage; common parts; windows and ventilation; means of escape from fire and<br />
disposal of refuse and litter.<br />
The Regulations require the person in control to display a Notice containing the name, address and<br />
contact telephone of that person.<br />
Non compliance under this Section may constitute that the person is not a “Fit and Proper Person”<br />
and therefore a License may be revoked.<br />
The person overall in control of the property is the LICENSE HOLDER<br />
<br />
The general running of the property is the responsibility of the MANAGER<br />
They may be one of the same or you could find that the manager is NOT the License Holder and any<br />
litigation would be direct to the say (the landlord, if he/she was the License holder).<br />
5. General Requirements for HMO properties (having regard to<br />
HHSRS)<br />
Remember, not all HMOs are required to meet the full list of requirements.<br />
Please check with your local authority about which regulations apply to your property, especially<br />
before purchasing or working on a property.<br />
Detailed specifications will be provided to the Landlord following an inspection appropriate to each<br />
individual HMO.<br />
Landlords are advised not to carry out any work until they have received the schedule of works from<br />
the Environmental Health & Trading Standards Dept. in the Local Authority giving detailed<br />
specifications.<br />
Under the new guidelines a consultation process is compulsory with the Fire Authority following an<br />
inspection of each individual HMO and precedes submission of the schedules to allow for<br />
amendment if so required.<br />
5.1 Doors<br />
The provision of purpose made fire doors with intumescent strips and smoke seals around the doors<br />
to all high risk areas, such as kitchens, bedrooms, electric meter cupboards. Fire door blanks must<br />
be used in existing door frames. These must be edged in hardwood.<br />
5.2 Floors<br />
6mm Plywood or high density hardboard floor covering to all suspended timber floors.<br />
5.3 Ceilings<br />
Upgrading or renewal of old lath and plaster ceilings or otherwise defective ceilings to provide<br />
adequate fire resistance.<br />
Vertical separation and horizontal separation of flats must be at least 1 hour fire resistance and 1/2<br />
hour fire resistance within the flat.<br />
Polystyrene and other hazardous ceiling coverings to be removed (Artex) etc.<br />
5.4<br />
5.5<br />
5.6 Loft Hatches<br />
Upgrading of hatches and provision of bolts to secure them shut<br />
<br />
5.7 Staircases<br />
Under drawing of soffits to provide 1 hour fire resistance.<br />
Infilling of under stairs area to deny the facility for storage<br />
Adequate headroom clearance between the string of the staircase and ceiling<br />
5.8 Partitions<br />
Construction or reconstruction of partitions to meet the appropriate separation requirements<br />
5.9 Storage<br />
No storage within the protected Means Of Escape (MOE)<br />
Cupboards within the MOE (Means of Escape) route to be emptied and locked shut or removed<br />
No gas or electric cookers or portable heating appliances, including gas water heaters, within the<br />
protected MOE (Means of Escape) route.<br />
5.10 General<br />
No portable LPG (butane gas) appliances in the premises<br />
No gas meters within the protected MOE (Means of Escape) route<br />
Electrical installation to comply with current standards (16th Edition) of the Electrical Installers Code.<br />
Work to be carried out only by a NICEIC or ECA accredited contractor<br />
Gas installation should be inspected at least once in every twelve months and a Landlords safety<br />
certificate issued by a CORGI registered installer for ALL gas appliances and installations.<br />
5.11 Fire Fighting Equipment<br />
To be provided to cover protected MOE (Means of Escape) route and kitchens<br />
5.12 Fire Warning System<br />
The installation of independent, mains operated smoke alarms in all rooms & common areas such<br />
and halls and landings, with heat detectors in kitchens which must be inter-linked for 2 storey HMOs.<br />
The installation of an electrically operated automatic fire detection system in HMOs of 3 storeys or<br />
more, with manual call points on each landing and exit point.<br />
This system is commonly known as a L2 system. This system will need to be installed by an<br />
electrician qualified in this field and an annual service agreement drawn up with a suitable firm.<br />
Names, addresses and telephone numbers of at least two key holders are required in case of false<br />
alarms.<br />
<br />
5.13<br />
5.14 Emergency Lighting<br />
The installation of emergency lighting in bed and breakfast (hostel) type HMOs and in other HMOs if<br />
considered necessary.<br />
Under the process of risk assessment emergency lighting may be compulsory in means of escape<br />
areas or high-risk areas.<br />
5.15 Signs and Notices<br />
The provision of signs and notices to alert occupiers of fire doors, fire exits and electric cables etc.<br />
Also the name, address and telephone number of the “manager” of the property.<br />
------------------------------------------------------------------------------------------------------------------------------------<br />
This article was written by Robert J. Lewis FNAEA<br />
© Robert J Lewis 2006<br />
Michael G. Lewis & Son<br />
Property Managers<br />
City & County of Swansea<br />
SA1 5TE<br />
http://www.mglewisandson.co.uk<br />
The Home of Property Management - mailto:mglas@globalnet.co.uk<br />
Acknowledgments<br />
I would like to thank Mr. Huw Williams – Technical Officer with City & County of Swansea’s<br />
Environmental Health & Trading Standards Dept. for providing me with guidance for this article and<br />
continued assistance in dealing with HMO’s<br />
Information has been also obtained from DETR & ODPM for which I am grateful. As author I have<br />
endeavoured to deliver information and advice of the highest quality; however you are advised not to<br />
rely on this as your sole source of advice.Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7087915564907006426.post-87256074965434755542010-01-04T13:19:00.000+07:002010-01-04T13:19:49.229+07:00Do You Have What It Takes to Manage a Buy-to-let Property?This is a sample chapter from “Renting Out Your Property For Dummies” supplied to LandlordZONE by John Wiley & Sons Ltd, publishers of the Dummies series of books.<br />
Do You Have What It Takes to Manage a Buy-to-let Property?<br />
In This Chapter<br />
* Being aware of the advantages of owning rental property<br />
* Identifying the differences between owning property and managing it<br />
* Assessing your own management skills<br />
Congratulations! Either you already own rental property or you’ve made the decision to buy. Property is great whether you’re looking for a steady supplement to your retirement income or a secure financial future. Most buy-to-let landlords want to become financially independent, and property is a proven investment strategy for achieving that goal.<br />
But after you sign your name on the dotted line and officially enter the world of owning rental property, you face some tough decisions. One of the very first concerns is who will handle the day-to-day management of your rental property. You have properties to lease, rents to collect, tenant complaints to respond to, and a whole host of property management issues to deal with. So you need to determine whether you have what it takes to manage your own buy-to-let property or whether you should hire and oversee a letting agent. In this chapter, we give you the low-down on some of the advantages of owning rental property. Then we’ll help you assess whether you have what it takes to manage your own property.<br />
Recognising the Advantages of Owning Rental Property<br />
A great advantage to building wealth through property is the ability to use other people’s money - both for the initial purchase of the rental property and for the ongoing expenses.<br />
The wide availability and low rates of interest on buy-to-let mortgages makes buying a second property a viable and realistic option for virtually everyone. Most people raise a deposit and then borrow the rest of the cash from a mortgage lender.<br />
<warning><br />
The deposit required for a buy-to-let mortgage tends to be higher than that needed for a “regular” mortgage. Expect to pay at least 20 per cent of the purchase price, depending on the lender.<br />
<technical stuff=""><br />
The ability to control significant property assets with only a small cash investment is one of the best reasons to invest in bricks and mortar. For example, you may have purchased a £100,000 buy-to-let property with a £20,000 cash deposit and a mortgage for the remaining £80,000. If the property’s value doubles in the next decade and you sell it for £200,000, you will have turned your £20,000 cash investment into a £100,000 profit. This is an example of capital appreciation, where you are able to earn a return not only on your cash investment but also on the entire value of the property.<br />
Rental property also offers you the opportunity to pay off your mortgage using your tenant’s money. If you’ve been prudent in purchasing a well-located rental property in a stable area, you’ll have enough income to pay the interest on your mortgage, as well as all the expenses, utilities, maintenance, taxes, and insurance. Each month your property should be appreciating in value while your tenant is essentially paying all your expenses, including the interest on your mortgage.<br />
Your lender and tenant aren’t the only ones who can help you with the purchase of your rental investment property. Even the government is willing to offer its money to help your cash flow and encourage more people to become landlords. In calculating your income tax obligations each year, the government allows buy-to-let landlords to offset their income against interest payments on their mortgage and certain expenses. For example, you can claim 10 percent of the annual rent for wear and tear on fixtures and fittings in furnished properties.<br />
Over time, you will generally find that your rental income outstrips your operating expenses. And after your tenants have finished paying your mortgage for you, you’ll suddenly find that you have a positive cash flow - in other words, you’re making a profit.<br />
Being Honest with Yourself about Your Skills and Experience<br />
One of the first steps in determining whether to completely self-manage your rental property or delegate some or all of the duties to other people is to analyse your own skills and experience. Many very successful property owners find that they’re better suited to deal-making, so they leave the day-to-day management for someone else. This decision is a personal one, but you can make it more easily by thinking about some of the specifics of managing property.<br />
Property management requires basic skills, including marketing management, accounting, and people skills. You don’t need a university degree or a lot of experience to get started, and you’re sure to pick up all kinds of ideas of ways to do things better along the way.<br />
<tip><br />
Examine your own personality. Are you a people person? Serving as a landlord is a labour of love; you must love people, you must love working with your hands, you must love solving problems. Most of all, you must be able to do all this without getting much in the way of appreciation.<br />
<warning><br />
If you’re impatient or easily manipulated, you aren’t suited to being a property manager. Conveying a professional demeanour to your tenants is important. You want them to see you as someone who will take responsibility for the condition of the property. You must also insist that tenants live up to their part of the deal, pay their rent regularly, and refrain from causing unreasonable damage to your property.<br />
<br />
People who need people: Putting your interpersonal skills to the test<br />
<tip><br />
Whether you’re confident you have what it takes to be a good manager of rental property or you’re still not sure, take stock of yourself and your abilities by answering these questions. Interview yourself as though you were a job applicant. Ask the tough questions. And more important, answer honestly.<br />
* Are you a people person who enjoys working with others?<br />
* Are you able to keep your emotions in check and out of your business decisions?<br />
* Are you a patient and reasonably tolerant person?<br />
* Do you have the temperament to handle problems, respond to complaints, and service requests in a positive and rational manner?<br />
* Are you well organised in your daily routine?<br />
* Do you have strong time-management skills?<br />
* Are you meticulous with your paperwork?<br />
* Do you have basic accounting skills?<br />
* Do you have maintenance and repair abilities?<br />
* Are you willing to work and take phone calls on evenings and weekends?<br />
* Do you have sales skills?<br />
* Are you a good negotiator?<br />
* Are you willing to commit the time and effort required to determine the right rent for your property?<br />
* Are you familiar with or willing to find out about the laws affecting property management?<br />
* Are you willing to consistently and fairly enforce all property rules and rental policies?<br />
* Are you interested in finding out more about property management?<br />
* Are you willing to make the commitment to being your own property manager?<br />
Ideally, you answered yes to each of these questions. This assessment is not scientific of course, but it does raise some important issues, particularly the level of commitment that you need to succeed as a rental property manager.<br />
<br />
You need to be fair, firm, and friendly to all potential tenants and those who do actually become your tenants. Treat everyone impartially and remain patient and calm under stress. Be determined and unemotional in enforcing rent collection and your policies and rules. And maintain a positive attitude through it all. Not as simple as it looks, is it?<br />
Even if you didn’t answer with an enthusiastic “yes” to all the questions in this section, you may still make a good rental property manager if you’re prepared to be flexible. Learn from your property management experiences. The really good property managers graduated from the school of hard knocks. The following sections give an overview of the key skills you need to manage your property effectively.<br />
<tip><br />
If your assessment revealed that your skills may be better served doing something other than managing your own property, turn to Chapter 2 for some alternatives. Owning rental property can still be a great investment, even if you don’t manage it yourself.<br />
Making sure you have good management skills<br />
Good management leads to good financial results. Having tenants who pay on time, stay for several years, and treat the property and their neighbours with respect is the key to profitable property management. But, like most things, it’s easier said than done. One of the greatest deterrents to financial independence through investing in rental property is the fear of management and dealing with tenants.<br />
If you choose the wrong tenant or fail to address certain maintenance issues, your buy-to-let investment may turn into a costly nightmare. By doing your homework in advance, you can reduce those beginners’ mistakes. Experience is a great teacher - if you can afford the lessons.<br />
If you already own your own home, then you already have some basic knowledge about the ins and outs of owning and maintaining property. The question then becomes how to translate that knowledge into managing rental property.<br />
Delegating management activities<br />
As a landlord, you may choose to handle many responsibilities while delegating some of them to others. Look at your own set of skills to determine which items you should delegate. A contractor may be able to handle the maintenance of your rental property and grounds more efficiently and effectively than you can.<br />
The skills you need to successfully manage your own rental properties are different from the skills you need to handle your own property maintenance. Most buy-to-let landlords find that using trusted and reasonably priced contractors can be a valuable option in the long run.<br />
Ultimately, you can delegate all the management activities to a professional letting agent. But hiring a letting agent doesn’t mean you’re off the hook. Depending on the arrangement you have with your letting agent, you may still oversee the big picture. Most letting agents need and seek the input of the property owner before they start so that they can develop a property management plan that meets the owner’s investment goals.<br />
Keep in mind that no one will ever manage your rental property like you will. After all, you’re more motivated than anyone else to watch out for your buy-to-let investment interests. Only you will work through the night painting your property for the new tenant moving in the next day. And who else would spend her vacation looking through the local newspaper classifieds for creative ad ideas?<br />
Start by being honest with yourself. Know your strengths and your weaknesses as a property manager. You may find that you’re able to do the job but wind up with frazzled nerves when you do. If you’re not truly excited and challenged by handling your own property management tasks, then you’re not likely to have success in the long run.<br />
You may find that a letting agent can run the property more competently than you can. Many buy-to-let landlords possess the necessary skills and personality to efficiently and effectively manage their rental properties, but they have other skills or interests that are more financially rewarding or enjoyable. Hiring professionals and supervising them is often the best possible option.<br />
Recognising how well you manage your time<br />
If you’re like most buy-to-let landlords, managing your property is a part-time job. You can handle calls from the tenant, collect the rent, show the property to prospective tenants, and even perform most maintenance in the early evenings or on weekends. The challenge is finding the time required to do this. The good news is that the time required to be a landlord is in your control.<br />
If you develop proper skills in marketing, tenant screening and tenant selection, you can greatly reduce the amount of time you spend managing your rental property. You also have to work smart or you may find that your time is better spent in other areas than management.<br />
<tip><br />
You can save a lot of time by asking your tenants to pay their rent by direct debit each month, with the money transferred straight into your bank account. A cheque in the post is also acceptable but not as convenient. The days of actually collecting the rent in person from the tenant are, thankfully, in the past.<br />
<tip><br />
Many of your contractors and suppliers will want to be paid immediately. But you can be more efficient and save time if you have a policy of paying all your invoices at the end of each month.<br />
Time management is really about evaluating how much time you have and then looking for ways to streamline your tasks so that you make the best use of your time.<br />
This is a sample chapter from “Renting Out Your Property For Dummies” supplied to LandlordZONE by John Wiley & Sons Ltd, publishers of the Dummies series of books.<br />
The book is a comprehensive guide to the whole process of renting out property. It’s brim full of practical advice based on years of letting experience. In our opinion this new UK edition of a long-established US title is an absolute must for the bookshelf of serious landlords, novice and experienced alike. We can highly recommend it.<br />
</tip></tip></tip></tip></warning></tip></technical></warning>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7087915564907006426.post-87138793939226741112010-01-04T13:16:00.000+07:002010-01-04T13:16:13.749+07:00Finding the Perfect Rental PropertyThis is a sample chapter from “Renting Out Your Property For Dummies” supplied to LandlordZONE by John Wiley & Sons Ltd, publishers of the Dummies series of books.<br />
Finding the Perfect Rental Property<br />
In This Chapter<br />
* Figuring out exactly what type of rental property you want<br />
* Knowing where to look for a rental property<br />
* Assessing whether there are enough suitable tenants in the area<br />
Location, location, location is the mantra you should bear in mind when you go to buy property - particularly when you go to buy rental property. Not only do you want to pay a reasonable price for a property that will increase in value over time, but you also need to find a rich source of suitable tenants to fill it, look after it, and pay the rent on time every month. This task sounds straightforward enough, but you need to do your research very carefully before committing to the purchase of a rental property to make sure that all these aims are met.<br />
It doesn’t matter how great a one-bedroom flat is if it’s situated in an area full of large family homes with big gardens. You’re not likely to find the single tenant or couple you need to fill it, and - at the end of the day - filling the property is your aim if you want your rental property business to be profitable. As a landlord, you have to be dispassionate and ruthless about your purchase, because the type of property you may want to live in won’t necessarily appeal to tenants. In this chapter, we help identify what to look for when choosing a rental property - and the pitfalls to avoid.<br />
<br />
Knowing What to Look For<br />
Before you start, you need to have a clear idea of what type of rental property you’re looking for. If you want a small family house, say a two-bedroom terraced house, don’t be persuaded to look at unsuitable properties such as studio flats or rambling six-bedroom mansions. By focusing on exactly what you want and avoiding countless unsuitable properties, you can save yourself time and money.<br />
While staying focused is good, don’t be too narrow-minded. If you’re looking for a two-bedroom house for your rental business but then stumble across a slightly cheaper two-bedroom flat in the area, you may decide that the flat is perfect for renting to tenants. If you stick too closely to your original plan and don’t evaluate alternatives as they present themselves, you could find yourself missing a good opportunity.<br />
<tip><br />
Ask dedicated letting agents - not estate agents - for advice on renting property. Estate agents want to earn their commission and get the sale, so they are unlikely to be completely unbiased. The letting agent should provide more useful opinions on location and a particular property.<br />
Big or little: Size matters<br />
Letting agents will all tell you that the easiest properties to let to tenants are studio apartments and one-bedroom flats. If you opt for a huge, grand house in the hope that it will generate lots more rent, you are likely to discover that finding tenants is much harder. This fact is partly down to demographics: More people are living on their own than ever before. And with property prices out of the reach of many first-time buyers until later in life - the average age of a first-time buyer in the UK is now 33 - many 20- to 30-year-olds are being forced to rent until they have saved enough for a deposit.<br />
<tip><br />
If you have £300,000 to invest, consider using it to pay deposits on two or three small family homes rather than put all your money towards one big property. Doing so is advantageous in a couple of ways:<br />
* The smaller properties are usually easier to let than larger ones, making life easier for you. In fact, demand for properties with three or more bedrooms is diminishing. You are better off choosing a property suitable for the young professional who is not yet ready to buy but still wants the freedom and independence of living on her own. </tip></tip><br />
<br />
* The rent on a studio or small flat is also going to be a lot less than on a big house. This may not sound like a good thing, but consider this: If you run into void periods, covering the mortgage yourself is likely to be much less of a burden than it would with a large property.<br />
* Flats are much easier to maintain. Most flats in the UK tend to be leasehold rather than freehold so you will have to pay an annual service charge to the freeholder for the maintenance of the common areas. If you buy a leasehold property, you own the flat for the duration of the lease, unlike a freehold property where you purchase it outright. Watch out for properties with a lease of 65 years or less as these are likely to be cheap because mortgage providers won’t lend money on these. However, leases can be extended - and you can add the service charge onto the rent.<br />
Setting your budget<br />
Of course, what property you buy is largely decided by your budget. You can find more about financing the purchase of your property in Chapter 16, but the key factor to bear in mind is that you shouldn’t overstretch yourself. Most landlords use leverage to borrow much more than their deposit, but the rental income must cover at least 130 per cent of the mortgage repayments. And ask yourself this: If the property is empty for two or three months a year, can you afford to carry on paying the mortgage yourself? If the answer is no, you should think about scaling down your ambitions.<br />
Location, location, location<br />
Picking a good location isn’t as straightforward as it sounds. What you think is a good location might not be your tenant’s idea of a good location. Your ideal place to live could be a green, leafy street with minimal traffic, close to good schools. But your prospective tenants (some of whom won’t have cars) may be more interested in an area that is close to shops, pubs, and takeaway restaurants with reliable public transport links.<br />
If your tenants don’t have a large family, a large supermarket two roads away isn’t as important as a 24-hour convenience store where they can pick up a pint of milk late at night.<br />
Many prospective tenants don’t have the resources to run a car - which is why they are renting in the first place - and will demand a property close to local transport links. Most don’t fancy walking half-an-hour from the nearest train station when they return home late at night. For these tenants, the train station or bus stop needs to be close to a rental property: More than 10 minutes’ walk and your prospective tenants are likely to be put off.<br />
<br />
<tip><br />
To extend the likely pool of tenants, look at properties outside major cities but with reliable transport links into the city. For example, many towns in the South East, such as Guildford and Haslemere in Surrey, are around an hour away from London on the train. Many people prefer to live outside a city and commute in as necessary for work. Buying rental property in such an area widens your pool of potential tenants.<br />
<remember><br />
When you buy a property, keep your potential tenants in mind. You should have a good idea what type of person is likely to want to live in your rental property. If not, you’ll find buying the right property very difficult. For example, if your rental property is near a college, university, or hospital, a house that several students or colleagues can share for a reasonable monthly rent may be easier to let than a luxury one-bedroom flat with a hefty rent to match.<br />
Ex-council flats<br />
In big cities in particular, you can often find lots of ex-council flats for sale, at cheaper prices than swanky Victorian conversions. While you personally might not want to live on the edge of an estate in an ex-council property, tenants often aren’t bothered about renting such a flat or house, as long as the inside is up to scratch. If the property is clean, and everything in good working order, you shouldn’t have much trouble renting out an ex-council flat.<br />
The benefits of buying locally<br />
If you plan to manage your rental property yourself, without the help of an agent, buying locally makes sense. If the tenant has a problem in the middle of the night or complains of a malfunctioning boiler - problems you’d prefer to check out yourself before calling in a tradesman - your life is a lot easier if the rental property is just down the road rather than three hours away up the M1.<br />
The other advantage of buying locally is that you are likely to know the area inside out. Many landlords feel more confident buying property in an area they know, especially when they start out. You are likely to know what is a bargain in terms of property prices - and what isn’t. Finding that bargain and snapping it up quickly is also easier: You might be driving down a street on your way to work and spot a property that you think would be ideal for letting. A quick call to the estate agent handling the sale, and you’re on hand to view it immediately. A scenario like this could save you the hassle of trawling through newspapers, property magazines, the Internet, and estate agents, and puts you in a position to find a good deal.<br />
Buying too close to your own residence<br />
Be wary of buying a rental property too close to your main residence. Buying the empty house next door to yours, for example, with a view to letting it out<br />
<br />
may seem like a good idea. But while you can keep a close eye on the rental property, tenants living on your doorstep can be a pain in the neck, particularly if they’re the type to constantly badger you for this and that.<br />
Just as you may regret having your tenants living next door, you may also find it difficult to rent the property in the first place. Tenants can be wary of living in close proximity to their landlord, fearful that they will be closely watched and monitored. It may be better for all concerned if you buy your rental property in another part of your town.<br />
Buying in an area you don’t know<br />
Buying in an area that you don’t know well is fraught with potential problems. The property you have your eye on may look like a bargain, but it could be in an area beset with problems, none of which are apparent to someone not familiar with the locality. The area could also be declining rather than improving in the long term, and you’re not likely to know that until too late.<br />
If you want to spread your wings and buy further afield, do your research carefully first. The Internet is a great place to start when you want to research an area. You can get an idea of the type and price of property available, local amenities, and schools and transport. Once you have a general idea of where a good place to buy may be, visit the area to get a feel for whether it actually is a good place to buy in. Visit local estate agents and speak to letting agents to get an idea of what property is available and what sort of rent you can expect.<br />
Dilapidated properties<br />
A rundown property needing complete renovation may be well within your budget, but there’s probably a very good reason for that - the property is likely to need plenty of work. It may look like a bargain, but if it takes months to get ready to rent, it’ll cost you money, not just in renovations but also in lost income. Also, most mortgage lenders only offer buy-to-let loans on properties ready to let to tenants (see Chapter 16)<br />
</remember></tip><br />
<tip><br />
Converting an old rambling house into several flats may be tempting, but leave this well alone until you’re more experienced in property management. Over time, you’ll build up contacts, including a network of tradesmen and builders, who will be able to complete the work for a good price.<br />
<br />
Letting out a basement in your home<br />
If you live in a large property with a basement, you may be tempted to convert it into a self-contained flat to rent out and generate some extra income. But bear in mind that this strategy is feasible only if the property has space for a separate entrance. If you’re planning a new self-contained flat and building work is required, you also need planning permission. Building regulations also have to be followed concerning all structural aspects of the property, as well as the size of the windows, ventilation, drainage, and escape routes. Information on planning and building regulations can be obtained from your local council.<br />
<remember><br />
While converting your basement into a self-contained flat is potentially a good idea, think it through very carefully. Check with local letting agents as to the amount of rent you can expect to generate to see whether you’ll get a good return on your investment.<br />
Where to Go to Find Your Rental Property<br />
Wherever you decide to buy your property, prepare yourself for plenty of legwork. If you know the area well, perhaps because you live there, keep your eyes peeled when you’re out and about to see whether you can spot any houses and flats for sale that would be suitable for your purposes. You can take several other routes to find the right property for you, and these are explained in the following sections.<br />
Using an estate agent<br />
Although letting agents are more useful to landlords than estate agents when it comes to managing your property, you will need the services of an estate agent when you are purchasing a rental property. Although everyone loves to hate them, estate agents are very useful when you’re looking to buy a rental property. You can’t get round it - you’ll have to befriend an estate agent if you want to get ahead of the game. If you get on with your agent and prove that you’re a serious buyer, your agent is more likely to ring you first when suitable properties become available.<br />
</remember></tip><br />
<warning><br />
Estate agents are paid by commission, which they get by selling a property for their client - the seller. As a result, they want the property to fetch the highest price possible. Don’t forget this during your negotiations.<br />
<tip><br />
To prove that you’re a serious buyer, make sure your funds are ready to move forward with the purchase of a property as soon as you find a suitable one. Be proactive: Keep in touch with estate agents to see what new properties come up and make an effort to see these new properties as quickly as possible.<br />
Buying at auction<br />
Auction is the place to go if you want to buy a property with development potential. Hundreds of auctions take place across the country every week, organised by the big estate agents. But while auctions are good sources of properties, they can be intimidating places. If you plan to buy at auction, attend one or two first, purely as an observer, to see how they operate. Having done so, you may decide that such a process is not for you - and then you can channel your energies into buying property by another route.<br />
<tip><br />
If you go to an auction, set a limit beforehand as to how much you are prepared to bid for a property and stick to it. Exceeding this budget may be tempting if you have set your heart on a property, particularly if you get caught up in a bidding war. It is likely that the property requires quite a bit of work, so if you blow your budget buying it in the first place, you’ll be left with no funds to pay for refurbishments.<br />
If you successfully bid for a property, the offer becomes binding and you have to exchange contracts immediately. You also have to pay a 10 percent deposit on the day and complete the purchase within a stated period of time, usually 28 days. If you don’t, you lose your deposit, could be sued for breach of contract, and be liable to pay the difference between the price you agreed to pay for the property and the price it eventually fetches. So make sure you don’t bid until you have done the following:<br />
* Done your homework: Never bid for a property, even if it sounds like a bargain, without seeing it first. Look through the auction catalogue and visit any properties you’re interested in. If the property needs a considerable amount of work, take a builder with you so that he can give you an estimate.<br />
* Arranged your financing: Unless you have enough cash to pay for the property outright, you must have the mortgage agreed with your lender before the auction. You must also ensure that you have enough cash available to pay the 10 per cent deposit on the day of the sale: Most<br />
<br />
auctioneers require that you pay this via banker’s draft, so make sure the funds are available in your bank account.<br />
Some auctioneers require that you register as a bidder at the start of the sale, so ensure you get there early on the day if this is the case.<br />
<warning><br />
It is possible to grab a bargain at auction, but it’s also just as easy to make a terrible, costly mistake. Think carefully before you buy and don’t get carried away in the heat of the moment.<br />
Using the Internet<br />
The Internet has really taken off in recent years as a source of properties for sale. Many of the big estate agents have realised the value of having some sort of online presence, as have sellers who want to avoid using the services of an estate agent altogether.<br />
</warning></tip></tip></warning><br />
<tip><br />
Local and national newspapers tend to have good Web sites featuring properties for sale. These sites are likely to be updated more frequently than the paper, particularly in the case of weekly local papers. Make a habit of checking sites on a regular basis.<br />
Checking Out the Tenant Pool<br />
It doesn’t matter how great your rental property is, or how close it is to major transport links, if the area doesn’t have sufficient tenants to ensure it is rented out virtually all of the time. Before buying a property, establish whether the property is located in a serious rental market. In areas that have lots of small “starter” homes, for example, people may tend to buy rather than rent. If you have a property there, you’ll struggle to find tenants who want to rent your property.<br />
An area with more tenants looking for somewhere to live than available rental properties is the ideal location for your rental property. To get a feel for the rental market in the area, try gauging how busy letting agents are. If the market doesn’t appear to be strong, you may want to look somewhere else.<br />
<remember><br />
Markets can change quickly as well - an area that is rich with potential tenants working for a big company located in the area can change dramatically should that company close down or relocate. If you already own<br />
</remember></tip><br />
a rental property in such an area, you may decide to sell up and buy another property elsewhere with a stronger source of tenants. As a landlord, you have to move quickly if you are going to keep ahead of the game.<br />
This is a sample chapter from “Renting Out Your Property For Dummies” supplied to LandlordZONE by John Wiley & Sons Ltd, publishers of the Dummies series of books.<br />
The book is a comprehensive guide to the whole process of renting out property. It’s brim full of practical advice based on years of letting experience. In our opinion this new UK edition of a long-established US title is an absolute must for the bookshelf of serious landlords, novice and experienced alike. We can highly recommend it.Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7087915564907006426.post-55542396467137798392010-01-04T13:08:00.000+07:002010-01-04T13:08:09.689+07:0020 Steps to Successful "Landlording"<h3>Key Points</h3><ul><li>Buy the right type of property for the market you are targeting and present it to your tenants in good, clean condition with modern facilities.</li>
<li>Maintain your property and make sure you meet all the letting safety regulations.</li>
<li>Be very careful when selecting your tenants - tenant screening is <em>the</em> most important job that landlords or agents do!</li>
<li>Have a comprehensive application form - it's the most important document after the letting agreement. </li>
<li>Always do credit checks, identity checks and take up references. </li>
<li>Always have a proper written agreement. </li>
<li>Then, there's quite a few more - read on...<br />
</li>
</ul><blockquote><b>Quote:</b> "Always remember this: no tenant at all is 100 times better than a problem tenant! Landlords are always anxious when they have a vacant property, but don't be too hasty in taking on the first person that comes along." <strong><a href="http://www.landlordzone.co.uk/www.tenantverify.co.uk">TenantVERIFY.co.uk</a></strong> <br />
</blockquote><h3 class="style1">Introduction</h3><div id="sponsor"><br />
</div>Success for the DIY landlord demands a certain amount of discipline, a good working knowledge of the rules and regulations and a systematic approach.<br />
Following these steps will save you time and trouble - if you do it properly you'll wonder why you even considered paying an agent to do it for you!<br />
Follow these guidelines and you should be on your way...!<br />
<h3>1. Be clear about your Landlording Strategy - have a plan!</h3>Are you in the bottom, middle or upper part of the lettings market?<br />
If you are in the DSS, Houses in Multiple Occupation (HMO) and/or the student sector, expect more problems. You will need more management time, a good knowledge of the Housing Benefits system, the HMO rules and the student market in your area. Financial returns, though, should be quite a lot higher!<br />
If you go for the middle (working and professional) or upper end (professionals and company lets) you should have fewer problems, providing you select your tenants carefully, and these lettings will provide you with a very good return if you manage your tenants well.<br />
Make sure your property matches your target market in terms of type, location, condition and facilities and ask a competitive but not an excessive rent.<br />
<h3>2. Do your Homework first - know the rules and regulations!</h3>Think of your lettings investments as a business, even if you're doing it as a sideline to your main job. It requires a certain amount of method, discipline and commitment.<br />
Have you got the time to manage your lettings or do you need to pay someone to do it for you? Distance is a factor, because travel time added to management time can become excessive.<br />
However, rental property can be efficiently managed using a surprisingly small amount of time - just follow these steps and take the time to read the information available on this web site.<br />
Just like any other business, at the start it's a good idea to have a Business Plan. Include financial projections, especially if you are using some form of loan or mortgage finance to purchase your investment properties.<br />
Remember, you may need certain permissions for your landlording operation from:<br />
<ul><li>The local authority planning, building and environmental health departments, depending on the type of letting and whether alterations are involved. </li>
<li>Your mortgage company.</li>
<li>Your Insurers. </li>
<li>Your landlord or freeholder. </li>
</ul>You also need to master the paperwork and the basic letting rules and regulations, the landlord and tenant's legal obligations and some of the laws that governing lettings - there are plenty of inexpensive books on the market which are well worth reading - see our Books section.<br />
Letting property successfully is not rocket science. Basically it's about managing people, so if you have people skills from other areas of your life, such as customer service or management skills, then you can adapt them to this quite easily.<br />
It's also a good idea to join your local Landlord's Association. You will learn a lot by attending meetings and speaking to other landlords with similar problems to yours.<br />
<h3>3. Develop your own Operating Philosophy!</h3>The old saying, "honesty is the best policy" applies to landlording as much as to any other business, but perhaps more so. For a start landlording has a bad image in some quarters (though it's improving) and this has to be overcome.<br />
You are under the scrutiny (not that you will come into every-day contact) of your tenants and so may other agencies; your local authority, The Fire Officer, The Environmental Health Officer, The Health & Safety Executive, Rent Officers, The Inland Revenue, the Town Planners and Building Controllers, and the courts, to name a few. So successful landlords tend to be those that operate within the rules and with some integrity.<br />
Treating tenants with respect while setting out to provide value for money and a professional standard of service is an approach that the authorities will generally support and your tenants will generally appreciate.<br />
If you can show that you are a good landlord and follow the rules you are likely to get more support from the authorities if things go wrong.<br />
Many local authorities now have Accredited Landlord Schemes. These are worth participating in as they give you good guidance as to letting standards and act as a kite mark of good landlording practise.<br />
<h3>4. Do your Research Thoroughly - know the local market!</h3>Don't buy a property just because you like it, you think you could live in it yourself, or you just plain fall in love with it!<br />
"The market rules" every time, and you must make sure that what you buy will let. Get to know the area well, speak to residents and local estate agents, and keep an eye on the local papers to see what's letting locally. A few hours spent doing your research (due diligence), <em>before</em> you go investing in a rental property, can save you a whole lot of heartache and expense later.<br />
Location, location, location are said to be the three most important factors when investing in property. Residential lettings are no exception.<br />
Is there a healthy demand for letting in the area? What type of property lets best? Which type is most profitable? Is the property near large employers, a college or a university? Are there good public transport links? Are there shops, fast food outlets and restaurants, laundry facilities, tourism and entertainment venues?<br />
What are the long-term trends? Is the area improving, or declining? Are there any potential problems, trouble spots - flooding, riots, radon gas, subsidence? Are there any future developments in the pipeline like shopping centres, roads or transport links which could improve the area or make it decline? <br />
If it's a town or city, is there a trend to more urban living? What will be the long-term effects that these and other factors have on rental demand and property values?<br />
<h3>5. Have a Comprehensive Application Form!</h3>A Tenant's Application Form (Tenancy Proposal Form) is crucial and the most important document after the lease agreement - see <a href="http://www.landlordzone.co.uk/agreements.htm">Agreements & Forms</a><br />
The application form records permanently the tenant's declaration as to identity, accommodation and employment histories, income status, references, and personal details - Smoker? Pets? Disabled? Other Occupants, Children etc.<br />
It also confirms the tenant's understanding of the property to be let, the type and length of tenancy and the basic terms, the likely costs and expenses to be paid and the rent and deposit required.<br />
This form is an important legal document which forms the basis of your contract and the tenant screening process. It should provide sufficient information to enable the landlord to contact the tenant, or his relatives, even if he absconds.<br />
The form also provides valuable evidence for <strong>Ground 17</strong> - <a href="http://www.landlordzone.co.uk/grounds_for_possession.htm">Grounds for Possession</a> under the Housing Act 1988. A <strong>false statement</strong> knowingly having been made by the tenant or someone acting on his behalf. In other words, this document gives you the basis for regaining possession fairly quickly if you have been duped.<br />
Ground 17 underlines the importance of a <a href="http://www.landlordzone.co.uk/pdf/application.pdf">Tenancy Application</a> which seeks factual information from the tenant. See also <a href="http://www.landlordzone.co.uk/tenant_screening.htm">Tenant Screening</a>.<br />
<h3>6. Screen your Tenants very Carefully!</h3>Always remember this: no tenant at all is 100 times better than a problem tenant! Landlords are always anxious when they have a vacant property, but don't be too hasty in taking on the first person that comes along.<br />
Always do a credit check. It is not an absolute guarantee but a basic check is quick and quite inexpensive, and it's a good safeguard against real problem debtors.<br />
Be thorough in taking up references etc, but don't waste too much time about it because you may lose an excellent tenant. See the section on <a href="http://www.landlordzone.co.uk/tenant_screening.htm">tenant screening</a> and <a href="http://www.landlordzone.co.uk/dir/tenant-checks.htm">tenant verify</a><br />
This is one aspect where DIY landlords have the advantage over letting agents - they can generally deal with applications more quickly, often at week-ends and outside normal working hours and also make quick letting decisions.<br />
<h3>7. Always have a Written Agreement</h3>All new tenancies, since 28 February 1997, are automatically <strong>Assured Shorthold Tenancies</strong> (ASTs), unless specified otherwise, so landlords are now on much safer ground than pre 1997.<br />
It is possible to create such a tenancy legally by oral agreement (must be confirmed in writing within 6 months if the tenant requests it) and the conduct of both parties.<br />
But any landlord doing this is asking for trouble, and most tenants would prefer to know where they stand by having their tenancy agreement in writing.<br />
<strong>Never, ever, under any circumstances</strong> allow a tenant into premises (handing over keys) without the signing of an agreement, paying the first month's rent and taking a security deposit, if you have opted to do so. If you accept a cheque, ideally you should allow time for clearance.<br />
The agreement forms the basis of the landlord-tenant relationship specific to your property, as opposed to general statutory legislation rules. For example, you may want to bar pets, to insist on payment by banker's standing order and insist on notice if the property is to be left empty more than 14 days etc.<br />
Without the agreement you will find it difficult to prove even the obvious points - when the tenancy actually started, how long it lasts and what the rent should be.<br />
No written agreement will also cause real problems if court action is taken later for eviction etc.<br />
Good agreements are easy to understand (plain English), up-to-date with current legislation and have taken into account almost all eventualities. Good modern agreements comply with the Office of Fair Trading guidelines.<br />
Use a good quality "off the shelf" agreement or have one prepared by an experienced solicitor - not all solicitors though have expert knowledge of landlord-tenant matters - see <a href="http://www.landlordzone.co.uk/agreements.htm">Agreements & Forms</a>. Better still, go directly to our <a href="http://www.legalhelpers.co.uk/?referer=landlordzone" target="_blank">on-line agreements</a> section and see our Directory section on <a href="http://www.landlordzone.co.uk/dir/solicitors-legal.htm">Solicitors and Legal Services</a><br />
<h3>8. Deal Fairly with Security Deposits</h3>A security deposit, which is usually equivalent to one month's rent, provides some security in the case of damage, cleaning or rent arrears. Handle this with integrity. The new rules on deposits introduced on the 6th April 2007 mean that, if you take a deposit, you must participate in one of the tenancy deposit schemes. See <a href="http://www.landlordzone.co.uk/tenancy-deposit-schemes.htm">Tenancy Deposit Schemes</a><br />
You must now inform your tenant/s which deposit scheme you are using within 14 days of taking it. Failure to comply with this legislation means you can be fined up to 3 times the deposit and you will be prevented from using the statutory possession procedure allowed under section 21 of the Housing Act 1988.<br />
To discourage tenants from using the security deposit as their last month's rent payment you may decide to use a different amount than the monthly rental - 6 weeks for example.<br />
Don't make the deposit too high though (no more than two months) as it may be seen legally as a premium. This would imply a long-leasehold and could allow a tenant to assign the lease to another tenant without your consent.<br />
The tenant may need the deposit back for his next tenancy so always repay it promptly if everything is in order.<br />
Your Tenancy Application Form and the Tenancy Agreement should deal with and fully explain the procedures with deposits - always give your tenant, and the guarantor if there is one, ample time to read and understand the agreement before signing.<br />
Deposits are always a source of potential disagreement between landlord & tenant. <br />
If you take a deposit always have a detailed inventory, preferably prepared by an independent inventory clerk - you will need good evidence if there is a dispute involving the Tenancy Deposit Scheme. See our Directory - <a href="http://www.landlordzone.co.uk/dir/inventory-services.htm">Inventory Services</a> for Independent Inventory Clerks.<br />
There are now insurance based alternatives to taking a deposit - you pay a one-off premium, which can be passed on to your tenant. This covers damage, rent arrears and legal costs - see: <a href="http://www.landlordzone.co.uk/www.tenantguarantee.com" target="_blank">tenantguarantee.com</a> <br />
<h3>9. Keep the Rent Near Market Levels</h3>Always try to keep the rent at or near market levels - you owe it to yourself, your financiers and your potential heirs. Your research of the local market (section 4 above) should give you this.<br />
Ultimately the rent received determines the value of your investment so if you had to sell the property with a sitting tenant, on a below market rent, the property value could be adversely affected.<br />
Short-term lets don't warrant the hassle of rent reviews and increases, but longer term residential lets, say over 2/3 years, should have their rents reviewed and the agreement should provide for this.<br />
<a href="http://www.landlordzone.co.uk/rent_review_commercial.htm">Rent Reviews</a> are particularly important when letting commercial properties which tend to have much longer leases.<br />
Some landlords feel that good long-term tenants should have the reward of staying on the same rent, but this becomes a dangerous philosophy as time goes by.<br />
The rent is no longer a fair return on the investment, the property value is affected and the rental amount may not cover repair costs. Eventually the tenant is faced with a big rise, which usually then triggers a move.<br />
Don't try for too high a rent though. This usually results in longer void periods and you lose out more in the end - see <a href="http://www.landlordzone.co.uk/rent_review.htm">Rent Reviews</a>.<br />
<h3>10. Use Banker's Standing Order Rent Payments!</h3>Banker's standing orders are the best thing ever invented for landlords!<br />
Without the standing order most DIY landlords just would not have the time to manage their properties as a side-line to a normal day-job.<br />
Standing order payments have several advantages besides saving time - they are regular, there's no anxious waiting for cheques coming through the post and you know straight away if there's a problem.<br />
No landlord should spend time traveling to collect rents, only do it in emergencies. Some tenants will delight in giving you the run-around in this situation!<br />
If a payment fails to materialise it means one of two things: the tenant has ordered the bank to stop the payment, or there are no funds. You can then act immediately - see <a href="http://www.landlordzone.co.uk/standing_order_mandate.htm">standing order mandate</a>.<br />
<h3>11. Be Safety Conscious - you are responsible</h3>Landlords have a serious obligation to provide safe premises, installations and appliances for their tenants. They must also ensure safe use of equipment by providing clear operating instructions.<br />
Safety is potentially one of the greatest risks a landlord faces, but it need not be a problem if it's managed properly.<br />
There are severe penalties for non-compliance - both criminal sanctions and civil law damages apply.<br />
You are obliged to meet safety regulations regarding furniture and fittings, gas appliances need an annual Gas Check Certificate and it's a very good idea to have electrical appliances and systems checked.<br />
Due diligence (taking all reasonable steps) is essential - see <a href="http://www.landlordzone.co.uk/general_safety.htm">General Safety</a> and Safety Checklist.<br />
<h3>12. Bear in mind the Discrimination Laws</h3>Remember the discrimination laws. You are not allowed to discriminate (and nor would any reasonable landlord want to) on the basis of race, religion, gender or disability etc. <br />
To avoid being caught out if someone should bring a complaint about you:<br />
<ul><li>Treat everyone the same, with respect and be fair in the way you select. Choose the first qualified tenant that comes along.</li>
<li>Give everyone the same information and ask them the same questions - keep paper evidence of this.</li>
</ul>However, you <em><strong>are</strong></em> allowed to discriminate on the merits of the individual/s as qualifying tenants, financial standing, credit checks etc. See <a href="http://www.landlordzone.co.uk/discrimination.htm">Discrimination</a><br />
<h3>13. Have Adequate Insurance Cover</h3>Landlords have many potential liabilities and it is vital that they carry sufficient insurance cover. The landlord is responsible for insuring the property itself and should also insure their own contents. <br />
Landlords are strongly advised to take out specific landlord insurance covering tenant and third party risks (public liability).<br />
The biggest risk you face as a landlord is not damage to your property, it's the possibility of being sued for negligence for injury to tenants, visitors or the general public - claims can be enormous. <br />
Only landlord's insurance will cover these risks - normal household cover is simply inadequate.<br />
Other types of insurance include loss of rent, rent guarantees and deposit guarantee insurance.<br />
Tenants should be advised to insure their own contents. Tenant's policies also cover a range of other basic risks.<br />
There are specific policies available for landlords with student lets and HMOs, and for the tenant.<br />
See <a href="http://www.landlordzone.co.uk/Insurance/insurance-types.htm">Insurance</a>.<br />
<h3>14. Keep the Property in Good Repair</h3>The old saying, a stitch in time saves nine, was never truer than with property. A small thing like a leaking gutter or a blocked drain, if left unattended, can result in horrendous damage.<br />
Landlords with the inclination and good DIY skills have an advantage as the cost of repairs is high, and good tradesmen are hard to come by, especially at short notice.<br />
If you use tradesmen on a regular basis you are more likely to get them to come when you need them in an emergency, but it pays to look after good people when you find them.<br />
The starting point is buying in good condition. Have the property surveyed and don't forget the wood survey - a nasty case of rot can be very expensive to eradicate.<br />
You may be able to buy property cheaper if you are willing to renovate or develop it, but this requires a fair amount of experience and skill and usually, lots of money.<br />
Good well maintained property will attract good tenants and will enable you to set a certain standard. Aim to keep the property maintained and always respond to problems promptly.<br />
Mid-tenancy inspections (normally 6 monthly, and preferably done by an independent person) are a good idea to monitor the way the tenant/s is keeping the property. A report should be completed using the original inventory/schedule of condition as a basis.<br />
If problems are arising the tenant can then be alerted in writing, warning that additional costs may be being incurred for damage or cleaning beyond normal wear and tear.<br />
<h3>15. Act Quickly if Problems Arise</h3>If problems arise, act quickly and always carry out what you have said you will do. Take action immediately so that tenants know you mean business:<br />
<ul><li>If rent payments are missed - find out why and set out a course of action. Put it in writing. There may be good reasons, in which case allowances can be made, but don't let the situation last long - you may have to go for repossession. </li>
<li>If tenants damage your property - you need to inspect the premises from time to time. Providing a basic cleaning or care taking service keeps things in order. </li>
<li>If the tenant reports repair work - not responding to tenants' maintenance problems will not only affect your property, it could bring on problems with rent payment. Never give tenants an excuse not to pay rent! Having access for maintenance is also a good opportunity to inspect the premises. </li>
<li>If your tenants are causing problems with the neighbours - again, act quickly so that they can see you are doing something about it. You may have to take it up with the local authority and possession proceedings may be in order. </li>
</ul><h3>16. Watch out for Harassment Claims - respect tenants' privacy</h3>Tenants have an "estate in land" , an interest in the property and a right to quiet enjoyment; to treat the property as their own (within the terms of their agreement)<br />
Landlords turning up and making demands, without warning, could be deemed to be acting unreasonably. Making threats, withdrawing services or making life otherwise difficult for tenants and their guests is even worse.<br />
Always give tenants a minimum of 24 hours notice for access to the property for whatever reason.<br />
If a tenant refuses you entry or even changes the locks, there's not a great deal you can do about it.<br />
If you do have an unreasonable tenant, where relations have become strained, carefully document your contacts with them, or your attempts to carry out you duties such as Gas Checks, inspections etc., and take a witness when you see them - see <a href="http://www.landlordzone.co.uk/harassment.htm">Harassment</a>.<br />
<h3>17. Security - Tenant and Landlord</h3>The property needs to be secure for the benefit of your tenants. If tenants' possessions are lost due to lack of a reasonable level of security then they may bring a claim against their landlord.<br />
Your insurance company and your local Police Crime Prevention Officer will specify and advise on door and window locks etc.<br />
For personal security, dark allies and walk-ways should be well lit and doors and gates fitted with secure locks.<br />
If you are meeting strangers to show them around your properties:<br />
<ul><li>Make sure you have recorded all their contact details and leave a copy at home or at the office. </li>
<li>Take someone with you if you feel vulnerable on your own. </li>
<li>Carry a mobile telephone of you can. </li>
<li>Be ready to make a quick exit if you sense danger. </li>
</ul><h3>18. If you Use Agents, Select them Carefully</h3>If you use an agent to let and/or manage your property be careful. Not all agents have the necessary skills and experience, and some have excessive charges - see The Which? Report April 2001.<br />
Agents who are members of RICS, NAEA, ARLA or NALS are more likely to do a professional job - see the <a href="http://www.landlordzone.co.uk/Site-Zone/links.htm">Links</a> section for contact details.<br />
The agent's contract is an important document and is binding on the landlord. Be prepared to read the contract carefully and to negotiate hard for fair terms at the outset, particularly commission charges, fees and re-letting charges. <br />
<h3>19. Put Everything in Writing and Create an Audit Trail</h3>Have a file for every property & every tenant. It's important to have this information on file, particularly for HM Revenue & Customs (HMRC) purposes. All files should be kept for several years after the property is sold or the tenants have left.<br />
The property file should include <strong><em>everything</em></strong> to do with that property:<br />
<ul><li>Purchase details, date and price </li>
<li>Copies of all solicitor's and agent's correspondence </li>
<li>Property Survey details </li>
<li>Land Registration details </li>
<li>Mortgage/Finance details </li>
<li>Insurance details </li>
<li>Permissions for letting from freeholder, mortgagor, insurers. </li>
<li>Plans, Planning approvals, any permissions from local authority and copies of all correspondence. </li>
<li>Record of all repairs, alterations and improvements </li>
<li>Annual Income and expenses accounts </li>
</ul>Tenants' files should include <em><strong>everything</strong></em> to do with that tenancy:<br />
<ul><li>The Tenancy Application and Tenancy Agreement or counterpart lease. </li>
<li>References and approvals. </li>
<li>Copies of <em>all </em>correspondence with the tenants and authorities. </li>
<li>Annual Safety Check Lists </li>
<li>Gas Safety Checks and CORGI Certificates </li>
<li>Electrical Checks </li>
<li>Record of Entry and Exit meter readings </li>
<li>Inventory </li>
<li>Deposit details and receipts </li>
<li>Write on the outside of the file for easy reference: <ul><li>Date Entered/Agreement Date </li>
<li>Length and Type of Tenancy </li>
<li>Deposit Paid </li>
<li>Rental Amount and due date </li>
<li>Tenant's Contact Details. </li>
</ul></li>
</ul>Use a good accounting system, preferable one of the computerised ones. If you manage large numbers of properties you may need to consider one of the specialised Property Management Packages - see Software in our <a href="http://www.landlordzone.co.uk/dir/directory.htm">Directory</a> section.<br />
<h3>20. Avoid Expensive Litigation</h3>Litigation (going to court) can be horrendously expensive and should be avoided if at all possible. Following the rules and guidelines here should keep you out of trouble.<br />
If disputes arise with tenants try very hard to discuss, negotiate and settle in an amicable way.<br />
If you have cause to re-possess a property, this should be a reasonably straightforward process, if you have followed these guidelines and you carefully follow the possession procedures - see <a href="http://www.landlordzone.co.uk/Possession.htm">Possession</a><br />
If you have money owing, and you want to avoid the costs of going to a solicitor, you can use the Small Claims Court, which again should be reasonably straightforward.<br />
In both cases it is possible for a private landlord to process these, but if you don't feel confident, and some cases can be complex and beyond the competence of an amateur, see your solicitor - See <a href="http://www.landlordzone.co.uk/small_claims_court.htm">Small Claims Court</a><br />
<div class="warning"> © LandlordZONE® 1999-2010 All Rights Reserved - never rely totally on our standard answers and general content which relates primarily to England & Wales. Before taking action or not, always do your own research and seek appropriate professional advice with the full facts of the case and all documents to hand. LandlordZONE.co.uk® </div><h4>Related Topics</h4><ul><li><a href="http://www.landlordzone.co.uk/agreements.htm">Agreements & Forms</a> </li>
<li><a href="http://www.landlordzone.co.uk/standing_order_mandate.htm">S</a><a href="http://www.landlordzone.co.uk/standing_order_mandate.htm">tanding Order Mandate</a> </li>
<li><a href="http://www.landlordzone.co.uk/tenant_screening.htm">Tenant Screening</a> </li>
<li><a href="http://www.landlordzone.co.uk/discrimination.htm">Discrimination</a> </li>
<li><a href="http://www.landlordzone.co.uk/deposits.htm">Deposits</a> </li>
<li><a href="http://www.landlordzone.co.uk/Insurance/insurance-types.htm">Insurance</a> </li>
<li><a href="http://www.landlordzone.co.uk/harassment.htm">Harassment</a>. </li>
<li><a href="http://www.landlordzone.co.uk/grounds_for_possession.htm">Grounds for Possession</a> </li>
<li><a href="http://www.landlordzone.co.uk/Possession.htm">Possession</a> </li>
<li><a href="http://www.landlordzone.co.uk/small_claims_court.htm">Small Claims Court</a></li>
</ul>Unknownnoreply@blogger.comtag:blogger.com,1999:blog-7087915564907006426.post-87282967033545445722010-01-04T13:05:00.001+07:002010-01-04T13:05:23.815+07:00"Landlording" A History<table border="0" id="table152"><tbody>
<tr><td><b><span style="font-size: small;">Key Points:</span></b><ul><li>The real History of landlording is lost in the lists of time but much of our modern property law - throughout the English speaking world, stems from 1,000 years of British legal history.</li>
<li>Modern property law involves two elements: common law or judge-made law and statutory law or Acts of Parliament. Years of case law and numerous acts make the whole area quite complex.</li>
<li>Residential Tenancies are governed by the Housing Act 1988 as amended 1996.</li>
<li>Business tenancies are covered in the main by the Landlord and Tenant Act 1954 Part II, unless both parties have agreed before the agreement to contract out of the Act. </li>
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<tr> <td bgcolor="#ffffff" width="95%"> <div style="border-style: solid; border-width: 1px; padding: 1px 4px;"> <span style="font-size: x-small;"><b>Quote </b>"The system of private property is the most important guaranty of freedom, not only for those who own property, but scarcely less for those who do not." - Fredrich August von Hayek</span></div></td> <td width="5%"> </td> </tr>
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<tr> <td bgcolor="#fdfdfd" width="95%"><b><span style="font-family: Verdana; font-size: small;">Full Article:</span></b><b><span style="font-family: Arial;"><a href="" name="In Brief">In Brief</a></span></b><br />
Property law in England and Wales has its roots in antiquity.<br />
Modern property law involves two elements: common law or judge-made law and statutory law or Acts of Parliament. Years of case law and numerous acts make the whole area quite complex.<br />
Renting (or letting) is a contractual arrangement whereby a tenant occupies and gains a legal interest in land exclusively for a specified period of time in return for the payment of rent.<br />
Before WW1 most people in Britain rented their homes, farms and business property. This situation changed dramatically for housing over the course of the 20th century until only about 7% rented their homes in 1991.<br />
Whilst business lettings remained largely unaffected, housing was influenced among other things by social legislation and public sector housing provision.<br />
The poor image of landlords, total security of tenure for tenants, and the consequently low returns, made letting residential property unpopular until just a few years ago.<br />
The change was mainly brought about by a rebalancing of the rights between landlord and tenant in the 1988 and 1996 Housing Acts.<br />
Investment returns have become economically viable again, which has encouraged home owners, small landlords and investors to enter the lettings market.<br />
The legislative changes have coincided with shifts in the modern lifestyle which have begun to favour renting for its flexibility.<br />
Low interest rates and a volatile stock market have resulted in a buoyant housing market and more and more people looking to buy-to-let.<br />
<b><a href="" name="How "Landlording" Started"><span style="font-family: Arial; font-size: small;">How "Landlording" Started</span></a></b><span style="font-family: Arial; font-size: small;"> </span><br />
Property matters in England (and indeed in much of the English speaking world) stem from well over 1000 years of English and European history. <br />
The manorial system (seignorialism), begun under the Roman Empire, became common from around the 5th century onwards in England and much of Europe. Peasants became bound to the land and dependent on their landlords for protection and a basic form of justice.<br />
Later, feudalism, which lasted until around the 15th century, became widespread. This was a contractual system of military and political relationships existing among the nobility of Western Europe. It was a system whereby fiefs (land and labour) were granted in return for political and military services. This was based on a form of contractual relationship sealed by oaths and fealty (fidelity). <br />
Lords provided knights for their king by dividing their estates into smaller parcels known as "knights' fees" which they allocated to tenants able to serve as knights. These knights in their turn would grant plots of land to their own tenants (villeins) in return for their services. In effect a feudal pyramid developed, akin to the modern landlord-tenant and sub-tenant relationships.<br />
Lords had few if any rights from their king, and likewise knights (tenants) had few if any rights from their Lords. The system was open to extortion and abuse if not benevolently applied and not until the signing of Magna Carta in 1215 did England see any statutory rules on human and property rights.<br />
The statute of Quia Emptores (1290) was a major turning point which allowed the purchase and sale of land, removing the importance of the personal relationship between lord and tenant as being basic to land tenure. The legal principles of this statute still regulate the transfer of land in England and Wales to this day.<br />
<a href="" name="Land Tenure"><b><span style="font-family: Arial; font-size: small;">Land Tenure</span></b></a><span style="font-family: Arial; font-size: small;"><b> </b></span><br />
Today, ultimately, all land in England and Wales is owned by the state, land being merely "held" on tenure (freehold) reverting back to the state in the absence of rightful heirs. To all intents and purposes a freeholder (fee simple absolute in possession) is the owner of property for life.<br />
The Law of Property Act 1925 defines these ancient legal concepts, "fee" as heritability of the tenancy and "simple" meaning no restrictions as to inheritance, "absolute" being everlasting (except where the freeholder dies without heir) and "in possession" either personal occupation or the right to take rents or profits.<br />
The Law of Landlord & Tenant deals with leases, which are contractual agreements permitting tenants (lessees) to occupy land and premises exclusively for a period of time in return for regular rent payments. On expiry of the lease, at common law, the freeholder (lessor or landlord) is entitled to resume possession.<br />
<a href="" name="Modern Property Law"><b><span style="font-family: Arial; font-size: small;">Modern Property Law</span></b></a><span style="font-family: Arial; font-size: small;"> </span><br />
Landlord and Tenant law now has a dual nature and is rather complex. On the one hand it is based on common law contract or judge-made law which has evolved over the centuries.<br />
However, Parliament interferes with and distorts common law and equitable principles through the passing of statutory codes and regulations, The Law of Property Act and the Rent and Housing Acts being examples. Increasingly, European Law, Acts of Parliament, codes of conduct, and statutory or non-statutory rules and regulations of many kinds are all affecting the letting of property.<br />
The whole process is slowly changing and evolving as new legislation comes along and courts set new precedents as they interpret both common law principles and statutes vis-à-vis individual cases.<br />
Lawyers and property professionals keep up-to-date with the interpretation of the law by studying recent case decisions. Every now and then a landmark case decision sets a precedent which becomes a guiding principle, until such time as it may be further challenged.<br />
A <b> business tenancy</b> is a contractual arrangement between landlord and tenant governed by common law for the period of the lease term. The main landlord tenant legislation comes in when disputes arise at the end of business tenancies regarding security of tenure and grounds for possession.<br />
Business tenancies are covered in the main by the Landlord and Tenant Act 1954 Part II, unless both parties have agreed before the agreement to contract out of the Act. <br />
In the case of <b> residential tenancies</b> they are governed by statutory (parliament made) rules and regulations from day one of the tenancy. Whilst the residential lease is still a contractual relationship between two private parties in law, much of the residential tenant/landlord relationship is governed by acts of Parliament.<br />
<a href="" name="Private Landlords"><b><span style="font-family: Arial; font-size: small;">Private Landlords</span></b></a><span style="font-family: Arial; font-size: small;"><b> </b></span><br />
Up until about 1914 approximately 90 per cent of all housing in Britain was privately rented. This compares to only about 10 to 11 per cent at the end of the century, though from a low point of about 7 per cent in 1991 there has been a steady increase over the last few years. It is now predicted that the privately rented sector will reach 15 per cent of the total housing market by 2002.<br />
The trend of decline in private renting throughout most of the 20th century was due largely to social trends and legislation designed to switch the balance of power away from the landlord in favour of the tenant.<br />
Examples of notoriously harsh Victorian landlords entered the public psyche through writers such as Dickens and Trollope, and the process was exacerbated in the 1950s by the notoriety and scandals of Peter Rachman et al. "Rachmanism" has entered the language as a term used to describe the activities of ruthless slum landlords and their exploitation of hapless tenants.<br />
The first Rent Act was passed during the First World War (1915) as a "temporary" means of preventing landlords from exploiting the increased wages of munitions workers. This was the start of a whole series of legislative acts designed to protect tenants, the result of social legislation inspired by an extremely poor public image caused by rouge landlords.<br />
<b><a href="" name="Security of Tenure"><span style="font-family: Arial; font-size: small;">Security of Tenure</span></a><span style="font-family: Arial; font-size: small;"> </span></b><br />
Rent controls and total security of tenure (Landlords unable charge market rents or terminate tenancies, which even passed on to successive generations) swung the balance so much the other way that over the century the decline in privately rented residential property was quite dramatic.<br />
In effect, letting residential property throughout much of the 20th century became uneconomic for the private landlord. Too many landlords had their "figures burned" through immoveable and uneconomic tenants, so the national stock of private residential housing virtually dried up.<br />
Over the years several legislative attempts at relaxing controls were made to stimulate supply, but none was effective until the 1988 Housing Act brought in the Assured Shorthold Tenancy. This was a turning point enabling landlords to let at or near market rents with a guarantee of getting their properties back.<br />
<b><a href="" name="The Shorthold Tenancy"><span style="font-family: Arial; font-size: small;">The Shorthold Tenancy</span></a><span style="font-family: Arial; font-size: small;"> </span></b><br />
This Shorthold Tenancy started to stimulate supply again but it was, and still is, a slow process particularly as the legislation did not apply retrospectively, i.e., not to Rent Act tenancies created before 15 January 1989.<br />
Currently about 70% of UK housing stock is in owner occupation. About 19% is in social (local council and housing association) ownership, the the remaining 10/11% in the hands of private landlords.<br />
Owner occupation has risen steadily with increasing affluence and the influence of the Thatcher years policies of selling off council properties. This process has continued to the point where housing associations are becoming the main owners of social housing.<br />
The increasing wealth of UK professional and many working families, with inherited family property and increasing investment funds, has encouraged the move into rental property as an investment alternative.<br />
This, coupled with the Assured Shorthold Tenancy and the buy-to-let mortgage has resulted in a steady rise in the supply of privately owned rented accommodation. We have a long way to go to reach the levels of the European market, but there is now a definite move in this direction.<br />
<b><a href="" name="Demand for Renting"><span style="font-family: Arial; font-size: small;">Demand for Renting</span></a><span style="font-family: Arial; font-size: small;"> </span></b><br />
The other side if the coin is the demand for rented housing. Demand has begun to increase encouraging more supply. The rapidly rising property prices in the hot spots, particularly London and the south east, has resulted in first timers being squeezed out of some areas as buyers, but not necessarily as renters.<br />
For the tenant, renting has become a convenient alternative to buying and for some it has become the only option:<br />
<ul><li>Job mobility, job insecurity and short-term work contracts have meant that many are wary about becoming locked-in to owning a property.</li>
<li>Co-habitation prior to marriage, again means that couples are often reluctant to become looked-in to a property and a large mortgage, which may be difficult to unravel if there is a split.</li>
<li>Higher divorce rates and an ageing population, with people in general living longer, has increased demand for housing and particularly single accommodation.</li>
<li>In some high-priced areas first time buyers have been priced out and renting has become the only option. </li>
</ul><b><span style="font-family: Arial; font-size: small;"><a href="" name="The Future of "Landlording" in the UK">The Future of "Landlording" in the UK</a> </span></b><br />
For economic prosperity the country needs a mobile and flexible workforce and the fast-changing modern economy of Britain needs more high quality private rented accommodation.<br />
If business and enterprise is to be encouraged, a UK government priority in the 21st Century, then commercial premises also need to be readily available for renting.<br />
All the signs are that the increasing demand for rented residential property will continue to expand. The long-term trend with commercial property is less clear but there will always be demand for quality property in good locations.<br />
Legislation now appears to be striking a sensible balance between the rights of tenants and landlords. If this can be sustained it will encourage more enterprising landlords (part-time investors as well as businesses) to offer improving standards of residential accommodation.<br />
There is also a role to play for the small private landlord in providing commercial premises for the many small businesses needing accommodation on the high street and beyond.<br />
In this way the private landlord can make an increasing contribution to local communities and the quality of life in the UK today.<br />
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<!--webbot bot="Include" U-Include="included/article-copyright-notice.htm" TAG="BODY" startspan --> <span style="font-family: Verdana; font-size: x-small;">Contents © </span><span style="font-family: Times New Roman; font-size: x-small;"> <span style="font-family: Verdana; font-size: x-small;">LandlordZONE</span></span><span style="font-family: Trebuchet MS; font-size: x-small;">®</span><span style="font-family: Times New Roman; font-size: x-small;"><span style="font-family: Verdana; font-size: x-small;"> 2006 all rights reserved.</span></span><br />
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<tr><td valign="top" width="100%"><span style="font-family: Arial;"><b><span style="color: navy;">Letting or Renting</span> </b> <span style="color: navy;"> <b> Residential or Commercial Properties?</b></span> </span> <br />
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<tr> <td valign="top" width="100%"><span style="font-family: Arial; font-size: small;"><b><a href="" name="Introduction">Introduction</a> </b><a href="http://www.landlordzone.co.uk/case.htm#."><img alt="Go to Top of Page - Landlords,Tenants & Letting Agents" border="0" height="7" src="http://www.landlordzone.co.uk/Logos/Chev2.gif" width="16" /></a></span> <span style="font-family: Arial; font-size: small;">In recent years there has been a big increase in the number of people investing in rental properties and therefore becoming new landlords. In some areas recently more than 1 in 10 sales have been buy-to-let.</span><br />
<span style="font-family: Arial; font-size: small;">From a low point of about 7% of the UK housing market in 1991, private renting has reached 11% of the market at the turn of the century and is predicted to reach about 15% by 2002. </span><br />
<span style="font-family: Arial; font-size: small;">One recent report by the Centre for Business and Economic Research is predicting a 50% growth in the private rental market by the end of the first decade in the 21st century because more people are being attracted by the flexibility renting gives them.</span><br />
<span style="font-family: Arial; font-size: small;"> For some, buying and letting property has become an alternative to other forms of investment. There are also many experienced landlords who are already familiar with the benefits of rental properties - the steady income stream they provide, and the steady rise in the value of their investment.</span><br />
<span style="font-family: Arial; font-size: small;">Unlike bank and building society investments, property gives a double return: income in the form of rent plus capital growth, and in some areas capital growth has been quite outstanding. The income (initial yield) should be enough to cover your mortgage payments, with a margin for safety built-in.</span><br />
<span style="font-family: Arial; font-size: small;">At first glance property is a foolproof way to wealth and security: once the place is successfully let all the landlord has to do is sit back and watch the money roll in! Well, it's not quite as easy as that, but a properly managed property investment can be a very good way of increasing your wealth. </span><br />
<span style="font-family: Arial; font-size: small;"> There are pit falls though, and that's the point of a web site like this: well managed properties and tenants make good business sense and minimise the landlord's risks, but if the management side is neglected you could have real problems. </span><br />
<span style="font-family: Arial; font-size: small;">Letting is a relatively complex area which requires a fair amount of knowledge. You could use agents to do your lettings, and indeed agents can be very useful to you. But, if you are to really become a successful landlord and maximise your earnings (agents charge around 15% of your annual rental income) you should learn to Do-it-Yourself. </span><br />
<span style="font-family: Arial; font-size: small;"><b><a href="" name="Why Renting is Popular">Why Renting is Popular</a> </b><a href="http://www.landlordzone.co.uk/case.htm#."><img alt="Go to Top of Page - Landlords,Tenants & Letting Agents" border="0" height="7" src="http://www.landlordzone.co.uk/Logos/Chev2.gif" width="16" /></a></span><br />
<span style="font-family: Arial; font-size: small;">There are several reasons for the increasing popularity of renting and, the other side of the coin, of letting.</span><br />
<span style="font-family: Arial; font-size: small;">For the tenant, renting has become a convenient alternative to buying and for some it has become the only option:</span><br />
<ul><li><span style="font-family: Arial; font-size: small;">Job mobility, job insecurity and short-term work contracts mean that many are now wary about becoming locked-in to owning a property.</span></li>
<li><span style="font-family: Arial; font-size: small;">Co-habitation prior to marriage again means that couples are often reluctant to become looked-in to a property and a large mortgage, which may be difficult to unravel if there is a split.</span></li>
<li><span style="font-family: Arial; font-size: small;">Higher divorce rates and an ageing population, with people in general living longer, has increased demand for housing and particularly single person accommodation.</span></li>
<li><span style="font-family: Arial; font-size: small;">With the demise of MIRAS (Mortgage Interest Relief at Source) the government no longer gives the same tax breaks to home owners.</span></li>
<li><span style="font-family: Arial; font-size: small;">In some high-priced areas first time buyers have been priced-out and renting has become the only option. </span></li>
</ul><span style="font-family: Arial; font-size: small;">For the landlord, whether it's a side-line to an existing day job or a full-time occupation, buying to let has become an alternative to other forms of savings and investment:</span><br />
<ul><li><span style="font-family: Arial; font-size: small;">Renting property has become more socially acceptable in the UK, though there is still a long way to go before we reach mainland European and US levels. </span></li>
<li><span style="font-family: Arial; font-size: small;">We have entered a more sympathetic legal climate for the landlord, with the guaranteed ability to get the property back when she wants to, and to charge reasonable market rents.</span></li>
<li><span style="font-family: Arial; font-size: small;">Buy-to-Let mortgages have meant that property investment has become a real alternative to building societies and stocks & shares, with an added bit of satisfaction and excitement for those who take to it.</span></li>
<li><span style="font-family: Arial; font-size: small;">Low interest rates offered by banks & building societies encourage people with some capital to look for better returns: property is generally a solid form of investment and rarely can you lose all your money, as you can with stocks and shares.</span></li>
<li><span style="font-family: Arial; font-size: small;">The volatility of the stock markets and problems with conventional pension schemes have made some consider property and "landlording" as a safe alternative. </span></li>
</ul><span style="font-family: Arial; font-size: small;"><b><a href="" name="Starting Out">Starting Out</a> </b><a href="http://www.landlordzone.co.uk/case.htm#."><img alt="Go to Top of Page - Landlords,Tenants & Letting Agents" border="0" height="7" src="http://www.landlordzone.co.uk/Logos/Chev2.gif" width="16" /></a></span><br />
<span style="font-family: Arial; font-size: small;">Many start-out buying and letting as a side-line and end up owning a portfolio of properties large enough to support them financially - indeed there have probably been more millionaires created in the UK from property related businesses that almost any other occupation. </span><br />
<span style="font-family: Arial; font-size: small;"> There is an added incentive to enter this field as it is now being predicted that early retirement may not be an option for most people and that pensions may not provide all we desire in old age. </span><br />
<span style="font-family: Arial; font-size: small;">Most people think of residential property when becoming a landlord is mentioned: houses, flats, student lets, holiday lets and even taking in lodgers. </span><br />
<span style="font-family: Arial; font-size: small;"> However, there is another area for the lettings business: commercial property. Shops, offices, workshops, storage space etc are present in all towns and communities, large and small, and all have the potential to earn the enterprising landlord a comfortable living. </span><br />
<span style="font-family: Arial; font-size: small;"><b><a href="" name="Investment Risk">Investment Risk</a> </b><a href="http://www.landlordzone.co.uk/case.htm#."><img alt="Go to Top of Page - Landlords,Tenants & Letting Agents" border="0" height="7" src="http://www.landlordzone.co.uk/Logos/Chev2.gif" width="16" /></a></span><br />
<span style="font-family: Arial; font-size: small;">All investments carry some risk, and generally the higher the return expected in terms of both income and capital growth, the greater the risk. </span><br />
<span style="font-family: Arial; font-size: small;">In terms of overall risk and reward, property investment now compares quite favourably with the relatively low returns from investments such as National Savings and Building Societies and, against the higher returns from the stock market - even tax-free pension schemes. </span><br />
<span style="font-family: Arial; font-size: small;"><b><a href="" name="Residential Property">Residential Property</a></b><a href="" name="Residential Property"> </a> <a href="http://www.landlordzone.co.uk/case.htm#."><img alt="Go to Top of Page - Landlords,Tenants & Letting Agents" border="0" height="7" src="http://www.landlordzone.co.uk/Logos/Chev2.gif" width="16" /></a></span><br />
<span style="font-family: Arial; font-size: small;">Residential property has had strong demand in the UK for many of the reasons stated above. In general the risk involved is low. Even with the ups and downs of the market, you will almost certainly be able to sell quickly if you have bought the right property at the right price, and you may even make a profit.</span><br />
<span style="font-family: Arial; font-size: small;">It is still very important to buy in the right locations if you are to let the property easily. You need to buy in a reasonably good and if possible up-coming area where renting is popular, or at least is a feature of the market. </span><br />
<span style="font-family: Arial; font-size: small;">Amenities such as shops, restaurants and public transport links within easy reach are an absolute must. Buying within commuting distance of a big town or city is also desirable - avoid remote rural locations unless there are special circumstances and you know for sure that you can let. </span><br />
<span style="font-family: Arial; font-size: small;"><b><a href="" name="Commercial property">Commercial Property </a></b><a href="http://www.landlordzone.co.uk/case.htm#."><img alt="Go to Top of Page - Landlords,Tenants & Letting Agents" border="0" height="7" src="http://www.landlordzone.co.uk/Logos/Chev2.gif" width="16" /></a><b><a href="" name="Commercial property"> </a></b></span><br />
<span style="font-family: Arial; font-size: small;">Commercial Property is different, perhaps riskier, but offers a higher return because of this. Great care must be taken when buying commercial properties to let, such as small shops, offices and workspace in towns and small communities. </span><br />
<span style="font-family: Arial; font-size: small;">Out-of-town and edge-of-town supermarkets and other large chain retailers have put great pressure on the traditional small retailers and shopkeepers, driving some out of business. Some areas have become retailing wastelands with rows of boarded-up shop fronts.</span><br />
<span style="font-family: Arial; font-size: small;">Buying in this market therefore needs some considerable care:</span><br />
<ul><li><span style="font-family: Arial; font-size: small;">Buying in the right location - perhaps an improving area with good amenities, plenty of activity and perhaps an added tourist attraction.</span></li>
<li><span style="font-family: Arial; font-size: small;">Buying at the right price, taking into account the state of the small commercial property market and the property itself.</span></li>
<li><span style="font-family: Arial; font-size: small;">Doing your market research - what tenant demand is there likely to be?</span></li>
<li><span style="font-family: Arial; font-size: small;">Perhaps buying a large property and splitting it into smaller units for letting.</span></li>
</ul><span style="font-family: Arial; font-size: small;"><b><a href="" name="Secondary Property">Secondary Property</a> </b><a href="http://www.landlordzone.co.uk/case.htm#."><img alt="Go to Top of Page - Landlords,Tenants & Letting Agents" border="0" height="7" src="http://www.landlordzone.co.uk/Logos/Chev2.gif" width="16" /></a><b> </b></span><br />
<span style="font-family: Arial;">This</span>,<span style="font-family: Arial; font-size: small;"> in the main, is what is available to the small investor, which houses small businesses offering somewhat less security (covenant strength) than the big "household name" tenants renting in the prime locations. </span><br />
<span style="font-family: Arial; font-size: small;">Small business tenants may default on rent payments or they may not look after your property. However, because of these risks the returns are commensurately higher on secondary property than on primary property.</span><br />
<span style="font-family: Arial; font-size: small;">The risks involved in investing in commercial property, if you buy right, are not that much different from residential property investments, but often with less management time needed and the possibility of a higher return. However, unlike stocks and shares, for example, properties can be difficult to dispose of - it can take a considerable time. </span><br />
<span style="font-family: Arial; font-size: small;"> You should not, therefore, invest funds you may need to realise quickly. There is also the problem of void periods when the property is not let but still incurring ownership costs. Given these problems though, the overall returns can compare very favourably with the very best forms of investment media. </span><br />
<span style="font-family: Arial; font-size: small;"> There are also considerable <a href="http://www.taxcafe.co.uk/landlordzone/" target="_blank">tax advantages</a> for those who wish to maintain high income levels whilst protecting themselves against inflation. </span><br />
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