All Posts By

Daniel

eviction notice

How to evict a tenant

By Landlord, Opinion

How to properly, and legally evict a tenant will depend entirely on the factors of your current situation; including whether they have broken the tenancy terms and conditions or not and whether you live with them. Each different set of circumstances will come with a different course of action to take ensuring that your eviction is in-keeping with its relative legalities.

It is of the utmost importance that you follow the UK’s rules and regulations for eviction of a tenant, as failure to follow these laws could result in considerable penalties, and will also significantly reduce the chance of the tenant actually being evicted. If you have failed to comply with the UK’s regulations for evicting a tenant, you may be found guilty of such crimes as harassment, resulting in an illegal, and further invalid, eviction.

Through this piece, Magnet Capital will be taking you through the legal process of evicting a tenant.

How to evict a tenant with an assured shorthold tenancy?

There are two different types of assured shorthold tenancies out there, these being as follows:

  • Fixed-term tenancy – as the name suggests, a fixed term date is a tenancy that runs for a set, or “fixed”, period of time.
  • Periodic tenancy – this type of tenancy has no set end, and is ran and renewed every week or every month dependent upon the specified contract.

As with the eviction of any tenants, those who are under an assured shorthold tenancy must be evicted in a set legal process. If you want your tenants to leave after the end of their fixed term, you must provide them with a Section 21 notice. You can use a Section 21 notice on those with any type of assured shorthold tenancy, these being either a fixed-term tenancy or a periodic tenancy.

If a tenant has gone against the terms and conditions of their tenancy, you can also provide the tenant with a Section 8 notice. With this notice, you can give a tenant a time period of anything from two weeks to two months in which to vacate the property. The length of notice given will depend entirely on the extent to which they have broken the terms and conditions of the contract.

How to evict a tenant with an excluded tenancy

An excluded tenancy is a type of tenancy in which the tenant will be living/sharing the same accommodation as the landlord. With this type of tenancy, you will not have to take your tenants to court to legally evict them. You will only have to give your tenant reasonable notice. Reasonable notice is usually measured as period of the routine rental period; e.g. if the tenant pays their rent monthly,  a reasonable notice period would be one month long.

What to do if tenants refuse to leave

If the tenant(s) refuse to leave by the eviction date, the next step should be to apply for a standard possession order. This will also help you to get back any money owed in rent that the tenants have failed to pay. If you tenants still refuse to leave even after a court standard possession order has been implemented, you can then get a warrant for possession.

With a warrant for possessions, bailiffs can legally visit to remove the tenants from the premises of your property. To find out more about warrant for possessions and how to apply, please click here.

So long as you adhere to the rules and regulations of the UK’s laws surrounding tenant eviction, it should be a quick and simply process to evict a tenant if needs be. Follow our site for more tips relating to property management and development finance in the UK.

money-saving-property-development

How to save money when developing a property

By Development Finance

There are many different ways that you could save money when developing a property, each one contributing to the overall cost-efficiency of the project. The development of a property of any scale is always still a considerably large undertaking, that can have a significant impact on your finances.

Therefore, whilst saving money in different areas can help with the overall cost, it is still vital to ensure you have more than enough financial security to go through with a project. Through this piece, we will be exploring some effective ways that can help to save you money whilst developing a property.

At Magnet Capital, we aim to help you get the best value for money when developing a property. In addition to offering development finance, we will be able to provide professional advice including ways to manage your costs and cash flow as effectively as possible.

Saving money when developing a property

One of the main areas of this process that you can save money on is through the building of the property. By trying to cut back where you can through the property’s physical development, you can save considerable chunks of money. Below is a list of some of the main areas to the building process you can save money through:

  • Contractors
  • DIY
  • Reuse salvageable materials
  • Sourcing your own materials

These four areas are vital stages to developing a property, and can collectively contribute a sizeable amount to the costs of this developmental process. By knowing where and how to save on these vital areas of construction, you could save a considerable amount of money on the development of a property as a whole.

Contractors

A contractor is someone who helps in this development by providing the building equipment, materials, and workers needed to construct a property. As a contractor controls many of the major aspects that go into this physical development of the property, it is important to pick one who not only understands your budget, but will also help you to make the most out of your money.

contractors

It is always good to compare different contractors, helping you to get someone who meets your required standards, understands both your budget and your vision for the property, whilst also working for a great price.

DIY

Whilst contractors are there to help you build up your property, by picking and choosing various tasks to construct yourself, you could help to shave off hundreds, and even thousands of pounds from the overall cost of development. Although this can be quite a long and tedious process, by doing a sizeable portion of the handy work yourself, you can help to save money when developing your property.

diy

Whilst this is a great and effective way to save money, it’s worth mentioning that DIY should only be done when you have full confidence in your abilities for each task. Ensure that all projects done around the property that are DIY are done effectively and with the greatest of care.

Reuse salvageable materials

Some materials your contractor will have to order in, however, when developing a property on land that already has building structures on it, it may be good to inspect these structures and see if any of the materials are salvageable for reuse. This can help to cut the cost down of the amount of materials ordered in for the development of your property, and therefore the overall cost of the property’s development.

Sourcing your own materials

Whilst the contractors will, in some circumstances, know where to get you the best materials for the best prices, doing some digging yourself is only going to improve the cost-efficiency of the project. By helping the contractor to look around on the best deals on all materials and features to the property, you can help to improve the cost-efficiency of your property’s development.

See also, typical costs when developing a property.

being-a-good-landlord

How to be a good landlord

By Development Finance

Tips for being a good landlord

If you are renting out a property that you own to people, it should be one of your top priorities to make sure that you are keeping your tenants happy. This is important for a number of reasons. Why? If you keep those who are living in your property satisfied, you can increase tenant retention, reducing the need for you to spend time as well as money finding new tenants to replace the existing ones. Furthermore, being a good landlord also creates mutual respect, increasing the likelihood of your building being kept in good condition.

But how exactly do you keep your tenants happy? As property development finance specialists, we have a lot of experience in this field, so we have created this guide to talk you through the main things you should keep in mind when renting out a property to people.

Give tenants space

One thing that no tenant likes is to feel as if they are being hassled by their landlord. Do not attempt to try and become their friend or neighbour by regularly visiting unannounced to the property. Not only is this likely to annoy your tenants, but it will also leave them feeling on edge. In addition, it is illegal to turn up as a landlord to a rented property unannounced, without providing 24 hours notice beforehand.

Maintain the property

One of the best ways of being a good landlord is to make sure that things that need to be fixed in the house you rent are quickly dealt with, and properly. Making sure that you regularly maintain the property is a surefire way to keep your tenants happy.

Put safety first

If you are a landlord, you are legally obliged to make sure that the property you rent out adheres to health and safety standards. This means making sure that all electrical and gas equipment has been safely installed and checked on an annual basis by a registered engineer.

Furthermore, you should ensure that there are fire alarms and carbon monoxide alarms fitted in the house, and make sure that batteries are regularly replaced.

Not only does this make you a good landlord, but it also helps you too: if you do not comply with health and safety regulations, you run the risk of not only putting your tenants at danger but also invalidating your landlord insurance entirely.

Make sure your tenant’s deposit is protected

Another legal obligation that you have as a landlord is that you need to keep your tenants’ deposit in an approved deposit scheme so that both you and the tenant are fully protected.

If you fail to choose one of the three main approved deposit schemes in the UK,  then you could face severe financial consequences: you could end up having to face legal proceedings, as well as a potential fine which is the equivalent of three times the amount of the deposit in question.

Don’t do things cheaply

If you have great tenants and want to keep them, don’t try to cut corners by refusing to do things such as upgrade necessary appliances or refusing to repaint when it is needed.  If you fail to reasonably maintain the property for the good tenants you have already, then its worth remembering this work will still be needed to be carried out when you need to replace them.

Think carefully about raising the rent

Another thing you should think very carefully about is increasing the rent, as you could run the risk of your tenants upping sticks and leaving completely. It is worth remembering that change-overs can be considerably expensive if they do decide to leave when you think about the cost and the inconvenience of arranging new tenancy agreements, viewings and credit checks.

Be easily contactable

There is nothing worse for many tenants of finding it almost impossible to contact their landlords when they need to, therefore, making sure you give them your mobile number and an email address so that your tenants can contact you if required. It is worth noting that tenants are only likely to contact you in an emergency only.

Do an inventory

Whilst writing up an inventory can take a long time, it is absolutely worth doing it if you want to be a good landlord. This is because it provides you with details of the contents and condition of the property on the day the tenants move in, meaning that in the event that there are disagreements regarding damage during the tenancy, you have evidence to fall back on. You should make sure that the inventory is as thorough as possible.

See also Gov.uk for more information being a landlord.

sam-howard-magnet-capital

Quality not quantity for UK housebuilders

By Development Finance

Maybe it is because like me, he used to be a lawyer, but I am rather impressed by James Brokenshire, the Secretary of State for Housing, Communities and Local Government. In a relatively short period of time, just over a year, and in a febrile political environment paralysed by BREXIT, he is trying to get to grips with the significant issues facing the Housing Market.

There have been a number of positive steps, including: lifting the council borrowing cap which enables councils to be able to borrow billions of pounds more for housebuilding, changes to the National Planning Policy Framework and the £1bn Housing Delivery Fund to finance small and medium-sized developers to deliver new homes across the country.

He has also pledged to speed up the planning process, which is a quagmire for SME developers who can get tied up for months or even years attempting to get planning. I am not holding my breadth but he wants councils to be able to approve planning applications more quickly under radical new measures to remove bureaucracy from the system. He said that a new accelerated planning green paper, to be published later this year, will dramatically improve the planning process. Let’s wait and see and the reality is that it comes down to ensuring planning authorities have the resources they need to act quickly.

However, it his focus on calling to account the large housebuilders that has really grabbed my attention, especially on cracking down on poor quality housebuilding and the leasehold scandal.

Last week, he announced that all new-build homes are to be sold as freehold and to reduce ground rents on future leases to zero, in a move to tackle unfair leasehold practices, which has been a shameful exploitation of consumers, with the consequence that their homes will be incredibly difficult to sell in the future.

In terms of housebuilding, the large housebuilders are able to build large numbers of units at a cost that smaller housebuilders simply can’t build at, given their economies of scale and the significant preliminary costs involved before construction even starts.

However, it is often eye opening to see the lack of quality in these cookie cutter style housing developments, who often leave new build buyers with a nightmare of faults to fix as opposed to their dream house. The supposed remedy of a 10 year warranty, in reality does very little to rectify snagging and can leave buyers badly exposed.

Mr Brokenshire has been a vocal proponent of building better homes and is considering forcing housebuilders to sign up to a code of conduct if they want to benefit from the Help to Buy scheme, and is pushing ahead with plans for a New Homes Ombudsman to give buyers of new-build properties greater protection.

In my time in the specialist finance industry running development finance companies, we have literally funded SME developers and builders to construct hundreds of houses. I am struck by the care and attention that SME developers take in their building. It is often the exact opposite of the big housebuilders, where our clients see the houses they build as a labour of love rather than just churning out another unit. This tends to lead to the right houses being built in the right areas and happy purchasers. Don’t just take my word for it – an award winning surveyor who has overseen many developments by both SME developers and big housebuilders said that pretty much every time the quality of houses being built by the client’s of Magnet Capital is superior to the big housebuilders.

There has to be an emphasis in the country on not just numbers of properties being built but the right type and quality of houses in the right place. So, you might not have heard much about James Brokenshire but I think he is doing a good job so far.

 

Sam Howard