Welcome to McCartan's August Newsletter. This month we tell you why it's important to have an inventory performed before every tenancy.

What is an inventory and condition report?
An inventory and condition report is a written document (usually with supporting photographic or video evidence) of the condition of a rental property and its contents at the start of a tenancy. It will be detailed down to every light bulb and should include every item left at the property and its condition. 

It's the landlord’s responsibility to prove the condition of the property and its contents at the start and end of a tenancy. This is especially important when coming to making a claim in the tenants’ deposit. Without a detailed inventory and condition report agreed by the tenant and landlord at the outset, it is very difficult to justify a claim on the deposit at the end of a tenancy.

My property is unfurnished so I don't need one? 
You still have walls which are decorated, flooring (carpet/Lino/tiles), and fitted items such as bathrooms and kitchens which can be damaged or have not been cleaned at an end of tenancy, so, yes you should still have one! 

Should I do my own inventory?
Many professional landlords opt to undertake their own inventory, check-in and check-out meetings and reports, however they are very time consuming and not always as detailed as they need to be. Another pit-fall of doing your own inventory is that it would not be independent of the landlords' interest in the property. In this instance it is vital that the incoming tenant signs the report to agree its condition. 

What if I get my letting agent to do an inventory?
Some letting agents will do 'in house' inventory services which are offered to landlords as an extra fee. Landlords must ensure that the agent undertaking the report has been properly trained in doing inventory reports and that you get a copy at the outset of the tenancy to ensure you are happy with its contents. As you are paying an extra fee for the service you want to make sure it is accurate. Don't accept photographic only inventories as they are not worth the paper they are printed on! 

What are the benefits of using the services of a professional inventory clerk?
Whilst there is a cost to getting an inventory set up, over the long term it is very cost effective, the main benefit of course is that you are guaranteed that the report is independent (the best possible type of evidence to have legally) and it will be compiled in a format that is widely accepted within the industry in a dispute situation. 

Most inventory clerks will also conduct formal check-in meetings, where the tenants are walked through the property with the report and asked to agree the condition at the end. (There is usually a 7 day grace period should anything be missed for the tenants to highlight.) Meter readings will be taken and added to the report for the avoidance of any doubt on that front too. 

Usually the external condition of the property is also noted in the report such as pathways, gardens and garages

Similarly at the end of a tenancy the inventory clerk would attend the day after the tenants had vacated to complete a check out report. This report will note the differences in the property from the check-in condition. This makes it very efficient to quickly see what could be a potential deduction from the tenants’ deposit. Tenants should be present for this check out meeting however it's not essential. 

When presenting any deductions to a tenant, the independent reports are now worth their weight in gold as both check-in and check out reports were done independently of the landlord, making it easier for a landlord to objectively discuss the deductions with the tenants and make their claim. 

Should the tenants choose to dispute any proposed deductions then all evidence must be submitted to the independent arbitrator, so having a professionally compiled report saves a Landlord the stress and hassle of making sure it's all in the format that is required. 

... I'll just video my property
Whilst video can be submitted as evidence, it is very difficult for an independent adjudicator to freeze a specific point within the video that refers to the part of the property that is in question, especially for instance if it is a stain on a carpet. They also won't be happy about having to sit through a feature length film on your property! Our advice is stick with good quality, high resolution photography to support a written document and use rulers or points of reference in the photo to give perspective to the image. 

Ultimately you want to make sure it's as easy as possible for an independent adjudicator to see why you are making a claim on the tenants’ deposit.

In conclusion, an Inventory and condition report is an essential part of any letting process and should be regarded as just as important as having a contract in report of the tenants deposit. It sets the tone for the start of a tenancy by showing good faith that as a landlord you care to avoid disputes at the end of the tenancy. 

For more information about why an inventory is important, give McCartan Lettings a call on 01792 430100.

There has been a large increase in applications for permission to develop Build to Rent homes in the UK. Over 45,000 applications are currently under consideration according to the British Property Federation (BPF).

Build to Rent is the term used to describe schemes of purpose-built rental accommodation which is funded by various different institutions. The properties are constructed on their behalf and then let out by an estate agent who manages all aspects of the property.

It’s a relatively new idea which has been developed to meet the needs of “generation rent”, the term used to describe the current generation of prospective homeowners who are struggling to afford a home. As times change, so do values, and with thousands of young people now choosing renting over buying, there needs to be a drastic improvement in the amount of homes on the market. Build to Rent seeks to create modern homes for the modern home owners.

Building Magazine undertook some research into the sector and found that there are currently 45,000 Build to Rent properties waiting in the pipeline, which is a massive 107% increase on the 22,000 applications in October. The number of BTR properties under construction has also nearly doubled to around 14,000. 

Following the country's shocking decision to leave the European Union, many expected the housing market to go under. In actual fact little has changed with build to rent looking set to continue to go from strength to strength, helped by the amount of projects in the pipeline and our new prime minister's commitment to the Tory promise of building new homes.

Since the beginning of 2016, the Build to Rent sector has received major investments from companies such as Grainger PLC who plan to invest &850m by 2020, Legal & General working with Dutch pension fund PGGM to deliver a &600m Build to Rent investment plan and Greystar Europe Holdings – one of the USA’s biggest housing investors – announcing the acquisition of a 26.5 acre site in Greenford, west London, upon which they plan to build Build to Rent properties.

The Royal Bank of Scotland has also announced a &1 billion funding pledge for the sector.

Handing over the keys to a property represents a massive placement of trust on the part of the landlord. You're risking the security of a considerable investment in the hands of strangers. Now, imagine one day receiving a phone call from your tenant’s neighbour or the authorities who tell you the property seems to have been abandoned? That’s the position that 36% of the UK’s landlords have found themselves in.

Figures show that abandonment of properties happens most frequently in the North East of England with 51% of landlords having experienced an abandoned property, whilst it happened less frequently in the South West with only 31% of landlords claiming they’ve had a tenant desert a property.

To further rub salt in the wound, the tenant has a legal right to return at any time and take up residence at the property, as long as it is within the time period of their tenancy, and there’s nothing landlords can do to prevent it. The only option left to landlords is taking up legal proceedings to reclaim the property.

It is a criminal offence to end a tenancy without going through the correct and proper legal motions, which means a landlord will have to serve their own property with an abandonment notice, which is generally regarded as an open invitation to squatters as it’s essentially a sign on the door announcing to the world that a property is empty.

These figures have been released as the Housing and Planning Act, which aims to tackle this growing issue, recently received Royal Assent (approval by the monarch that brings the bill into force as a law).

‘The process of recovering an abandoned property is too long, frustrating, and costly for landlords at the moment,’ said Richard Lambert, chief executive officer of the National Landlords Association.

‘Many people will be shocked by just how common this problem is, and landlords will be relieved to know that the Housing and Planning Act will create a new process to deal with the issue, giving them far greater security and peace of mind when recovering  properties they believe to have been abandoned,’ he added.

If you're looking to simplify your life as a landlord, why not let McCartan Lettings Agents manage your properties for you! Our Premier Fully Managed Service, has been designed to let you sit back and relax with the confidence and trust that every aspect of your property and tenancy is being looked after by professionals.

Homes in Swansea could be worth &286,558 by the year 2030, a recent research looking to map out house prices has found.
The strong growth in house prices means that there has never been a better time to invest in property in Swansea.

These values are based on the 84% percent increase in value that properties in South Wales have seen during the period of 2000-2015.

If the current house price trends continue, then Swansea may do considerably well, with houses set to be worth far more than property in nearby Newport, Neath Port Talbot and Caerphilly.

There are some that are concerned that the rising prices means owning a home will be a distant dream for most home owners. Property expert, Russel Quirk believes that the property bubble could likely burst soon:

"The past 15 years have seen extreme growth in the price commanded for UK property, as well as a crash as a direct result of this inflated growth. Although this research is only a projection of what may happen by 2030, it is safe to assume that with prices continuing to spiral beyond affordability, history could well repeat itself."

"Although rising prices are always good news for current homeowners, it's extremely worrying to look at the difficulty many have in getting on the ladder at the moment, let alone with a price jump of 84 per cent by 2030."

If you're looking to let or rent a property in Swansea, contact McCartan Lettings or call us on 01792 430100.