Welcome to February’s Newsletter!

Positive action is the name of the game this month. Wales could see an overhaul of its housing legislation before the end of 2019, and we take a look at what that might entail. We’re encouraging landlords and tenants to start thinking about spring cleaning, and we share with you a case study on how proactive and thoughtful management can help make re-vamping your property after a 4-year tenancy quick and stress-free.

We’ve also some photos of a lovely 3 bedroom house in Uplands for you to take a look at, and some good news in the McCartan Rental Tracker to lift your spirits during this tumultuous weather!

- Hannah, Managing Director

A date has been set for the next debate on the bill that will re-write Welsh housing legislation and outlaw the charging of tenant fees in Wales. According to Letting Agent Today, the Senedd are now due to meet on 19th March 2019 to debate the Renting Homes (Fees,etc) (Wales) Bill, now in its third stage.

When brought in, (what will then be called) the Renting Homes (Fees, etc) (Wales) Act will change tenancy agreements and eviction notices in Wales, and could incorporate the tenant fees ban already set to come into effect in England in the Summer.

Though the Government announced that the ban in England will come into effect on 1st June 2019, no date has been proposed for the ban in Wales, leaving estate and letting agents here in the dark.

The Residential Landlords Association (RLA) have reported that previous dates have been set for the debate but then cancelled. It has been further delayed by the replacement of Housing Minister Rebecca Evans with the new minister Julie James.

Wales in Front

In November 2016, it became mandatory for all landlords with property in Wales to be registered and licensed with Rent Smart Wales.

The Renting Homes (Wales) Act will do away with current housing legislation in Wales (outlined in the Housing Act 1988) and simplify tenancy agreements into two types: secured (like assured) and standard (like assured shorthold).

Whilst there has been talk that England will follow Wales with mandatory landlord licensing, it looks like Wales will be venturing into the uncharted territory of these new tenancy types alone for the time being.

Criticism of Rent Smart Wales

Despite criticisms of the scheme (including regarding the efficacy of enforcement), landlord licensing is generally considered to be a success in Wales.

In a recent consultation however, the Welsh Government concluded that roll-out of the Rent Smart Wales information had not been as smooth or as wide-reaching as had been hoped. It now raises questions as to how easily the Welsh Government will be able to roll-out this brand-new housing legislation and how many Welsh landlords could be left in the dark about that, too.

Further Changes in Wales

The Renting Homes Act could also incorporate elements of the Fitness for Human Habitation Act 2018, which is now coming into effect in England. An update to the Landlord and Tenant Act 1985, the Fitness Act increases tenants' powers to deal with landlords and agents who neglect their responsibilities with regard to maintenance and repairs.

A proactive landlord or letting agent who keeps notes on maintenance issues and can proof steps have been taken to rectify any issues will have nothing to fear from the Fitness Act.

Complaints submitted to the Housing Health and Safety Rating System (HHSRS) will be reviewed, and landlords found not to be fulfilling their duty to provide housing fit for human habitation will be given the chance to rectify any outstanding issues before fines are levied.

Uncooperative landlords could face court action.

According to the RLA, the HHSRS will take into account the context of the tenancy when addressing complaints. What is considered fit for habitation for a single adult tenant differs to what might be considered fit for an elderly person, or a family with a newborn baby, for example.

At McCartan, we take a proactive approach to property management and to keeping our landlords informed of changing legislation and how it might affect them. We will keep you updated on the Bill as it progresses.

Sources: RLA / Letting Agent Today / RLA on Fitness for Human Habitation Act

Related: DPS Over 6 Weeks Behind on Deposit Dispute Decisions / 100,000 Welsh Landlords Unaccounted For

Positive property management, for us, is all about looking out for opportunities to maximise rental income, achieve better yields, and avoid unexpected costly repairs for our landlords.

Many landlords try to do this themselves and find they miss the opportunities as they are too busy with their own day-to-day lives. They're then stuck in a loop of promising themselves they’ll do it ‘next time’.

Managing agents are also infamous for doing the least required for their management fee and tend to just fire-fight the maintenance as it comes in without thinking about how it could have been prevented.

My biggest pet-hate of our industry is seeing properties being re-marketed when they are tired, dirty, and in desperate need of maintenance - and at the same rental cost they were 5 years ago, ignoring market changes.

In this case study, we look at how just a little bit of positive property management goes a long way to securing a long term tenant, quickly, and achieving an 11% increase in rent.

The End of the Tenancy

Just before Christmas, one of our long-term tenants gave notice to end a 4-year tenancy as they were purchasing their first home.

We immediately got in touch with the landlord and advised that, because the tenancy had been so long, it was likely the property would need a full redecoration, cleaning, and some remedial work following a leak before it would be ready for re-let.

My recommendation in this instance was that we wait until the tenants had left to do the work, get the property turned around quickly by planning and pre-booking contractors in advance, and then market with it looking fabulous at a higher rent than what they were currently achieving.

Landlord Concerns

The landlord had understandable reservations about delaying marketing and was concerned about a void period (especially given the time of year). They trusted my judgement and experience of the Swansea rental market at a challenging time of the year, however, and so agreed.

This particular landlord is one of my most long-standing clients; myself and the McCartan team have always found good quality, long term tenants for his Uplands apartments, so it was imperative my advice would ensure the same level of standards were met, if not exceeded! 

Through having a good relationship with our clients, we also knew this landlord had a lot in their plate at the time and needed us to take care of whatever work was required in order to secure a (good) let as quickly as possible. They wanted us to keep them informed at key stages, but let us take control of the situation so they didn’t have to worry about any of it.

Preparing a Property for Re-Let

During the notice period, we arranged for contractors to go in and provide quotes. We always review quotes we receive so we can be confident the work we are proposing is good value for money.

We subsequently pre-booked the chosen contractors so they were ready to go in as soon as the tenants had vacated and the check out report has been completed. 

The work was scheduled to take two weeks; to maximise the chances of getting the property let quickly, we began to market for re-let a week before it was due to be finished. We started vetting enquiries, and booked a group of viewings for the first day it would then be available to view.

With the apartment looking at its best, it was no surprise that we received an application on the second day of viewings. The applicant was a single professional, relocating to the area for work who moved in two weeks later on a 12 month contract.

Peace of Mind

The landlord wrote to us: “I just wanted to say thank you for being so helpful and efficient in getting the flat ready to let and then let so quickly at a significantly increased rent to someone who sounds like a good bet as a tenant.

It has been a tricky time for me with my partner's illness so I'm more grateful than ever to have you guys looking after our interests.”

The key to having a successful property investment is planning ahead. Having a letting agent that plans ahead for you to save your time, and has market knowledge to understand where to make investment within a property is key to its future success.

You also want to be sure your agent isn't doing the least for their management fee - you want an agent who really goes above and beyond.

Are to you looking for some positive property management? McCartan are a local, independent letting agency based in Swansea. Our speciality is ensuring all of our landlords are getting the most from their property investment; from sourcing great tenants who pay their rent on time and keep your property well, to planning future maintenance to avoid costly repairs and refurbishments to maximise income.

If you would like a free 45 minute consultation to see how McCartan can add value to your property investment, contact us today on 01792 430100 or click here to email us.

With the chaos of Christmas behind us and Spring just around the corner, now is a good time to start planning for any annual maintenance or spring cleaning you may need to carry out.

Maintaining your rental property is an essential part of being both a landlord and a tenant.

Landlords

Gutter Cleaning. The unseasonably warm weather before Christmas meant a lot of trees held on to their leaves for longer than usual. Now is a good time (with all the rain forecast!) to look at getting your gutters cleared. Blocked gutters can cause damp issues within the property.

Boiler Servicing. Is 2019 the year you commit to annual boiler servicing? Getting your boiler serviced every year can reduce the risk of costly breakdowns.

Budgeting for Emergencies. When reviewing your finances for the new year, did you budget for emergency maintenance? We all hope it won’t come to it and at McCartan, we want to work with you to minimise the risk, but boilers do break and pipes do burst. If you can put a small amount of the rent you receive away each month for those rare emergencies, you’ll be more prepared should the worst happen.

If you are a self-managing landlord, now might be a good time to check in with your tenants, plan any property visits, and ensure they know how to best contact you to report any maintenance issues.

Tenants

Gardening. Gardening is the major one! As the grass starts to grow again, plan to mow your lawns, trim the hedges, and get a jump-start on any weeding. If you’re struggling to manage your garden or you just don’t have the time, let us know and we can recommend a gardener to you (at your own cost).

Bleed radiators. If your radiators aren’t heating up properly, they might need bleeding. This is tenant responsibility, and helps keep the heating system healthy.

Mould and Mildew. If you have any, make sure you wipe it down, and heat and ventilate your property properly to avoid reoccurrence. Rent Smart Wales produced a handy guide on preventing and managing mould and mildew – you can click here to take a look.

Remember to report any maintenance issues as soon as they arise. Managed tenants can report maintenance to us through the “report maintenance” button on our website. We’ll be sending out an email shortly to remind you of our out of hours emergency maintenance mobile number, too.

If you’d like recommendations for qualified, insured contractors, or if you’re looking for a proactive managing agent, please don’t hesitate to get in touch.  You can call the team in the office on 01792 430100, or click here to send an email.

Thinking of letting out your home, or looking for a new letting agent to manage your property in Swansea? Here are the key things you need to ask/check before signing up with your new agent.

1. Are they licensed with Rent Smart Wales?

Agents who are licensed must have client money protection and professional indemnity insurance, and they must be a member of the Property Ombudsman. These safeguards protect you as their client, and are actually a legal requirement in Wales. Search the Rent Smart Wales database of agents here.

2. Do they have a dedicated lettings team?

Whilst it can be convenient if an agent can offer a diverse range of services, a dedicated team will have a clear and specialist focus on lettings - and they aren't likely to be distracted by chasing sales commissions!

It goes without saying that they should be able to demonstrate knowledge of the private rented sector, and be able to give advice on any issues with regard to your property, as well as offer pointers on what you may need to do to the property to achieve the best rental price.

3. Are they transparent about their terms and fees?

It's a legal requirement for agents to list their fees on their website and in their offices, but are they willing to explain what services those fees cover?

4. Do they know your local area well?

A local agent should know the area and be able to use that knowledge to their advantage when marketing. They should also be able to let you know what kind of tenants they find looking for that style of property in that area. 

5. How do they vet potential tenants, and do they work with a reputable tenant referencing company?

Whilst there's no guarantee every tenancy will go smoothly, you want to be sure the agent cares about finding a tenant who is right for the property, and that they will undergo comprehensive referencing.

6. Do you feel you can trust them?

If you have the time, it's a good idea to go down to their office and meet the agent face to face. If you're not able to, it's definitely worth scheduling a good chat over the phone with them. This will give you a feel for the way they work and whether they are approachable, professional, and honest.

If you're visiting their office, you'll also get to see how they keep their own house, so to speak. If its smart, modern and well-kept, it's likely they will have the same expectation of the properties they manage and the tenants who live in them! You can trust they'll treat them like their own.

7. What do they think your property is worth?

A high valuation of your property is very flattering, but can the agent support their estimation? Have they run comparable reports, and have they let any similiar properties for that price in the area?

If you'd like to get in touch for a chat, or to book a free 45-minute property consultation, you can give the McCartan team in the office a call on 01792 430100, or click here to drop us an email.

Average Asking Rents

Difference from January 2019