The Diary of a Landlady

Your properties deserve your attention .... and you can save yourself a few quid!

I'v just come back from visiting one of my properties that had became vacant..  I've had the property a few years and it wasn’t too far from my home, so I took the opportunity to visit it to see if any repainting needing doing, etc.

I noticed the hallway walls needed repainting 'magnolia' again and then went into one of the bedrooms ….. I immediately noticed the position the bed was placed in and that it didn’t tally with the carpet indentations that had been made by the bed, so naturally I moved the bed. What I found was that there was a foot square piece of carpet missing under the bed! On closer examination of the carpet in the room, I saw where the missing piece of carpet had been fitted, which was really obvious once you were in the room.

Fortunately, I had my digital camera with me and was able to take some photos.  Thankfully the tenant had only been gone a week and I needed this evidence to show the letting agent so that I could get the monies to replace the carpet from the tenant's deposit before it was handed back to them. I also noticed in the bathroom that the lino was stained, with a lovely pair of feet outlined  – it was obvious that one of the girls was a fake tan user – one of the orange crowd! Upon checking the second bedroom I noticed that there were some really bad burn marks on the carpet there – on closer inspection they were cigarette burns – and I had had a no  smoking clause in the AST. What a cheek!

What I was annoyed about more than anything was that none of this had been reported to me by the letting agents who had reported that everything was in order at the property. I am just glad that I visited the place and had my camera with me – another lesson learned:  visit your properties whenever you have the opportunity and take your camera!  Result – I was able to obtain all the deposit money and get new carpets  and a contribution towards the repainting of the place.

As I keep re-iterating, you properties are YOUR responsibilty.  Look after them well and they will serve you for many years to come.  Keep them clean and well-maintained and you have a better chance of achieving the highest possible rental income.  I have all my properties professionally cleaned between tenants, and I also send my handyman round to do any small rememdial works, change lightbulbs that have blown, etc.  It really does pay to be a concientious and responsible Landlord.

TV Licences ... and the advent of digital TV ...

Good morning, fellow Landladies ...

Well, I've just taken five minutes to sit down for a cuppa and a Krispy Creme doughnut, so I thought I would take a few moments to share some more valuable information with you .... well, us ladies have to

stick together and support one another, don't we .... ?!

I thought I would share a sad little tale that I heard the other evening at a local landlord’s meeting …. one of the landlord’s there had just been fined £1000 for not having a TV licence.  "So what?"  you might well say.   Well the story is that he had not ensured that in the AST that had been drawn up by a new letting agent, that it was the tenant’s responsibility to have a TV licence – thereby alleviating all legal responsibility of the TV licence on the landlord.

Just the simple checking of a new AST cost this man a grand – it’s an easy mistake that any of us can make, but an expensive one. 

I am all for sharing this kind of intellgience because, as I keep re-iterating, your investment property is YOUR responsiblity.  If something goes wrong, YOU are the only person to blame.  SO BE RESPONSIBLE.  A quick call to the TV licencing authority will let them know that it is a buy-to-let property, and you can give them the tenant's name for future reference.  Then it becomes the tenant's legal obligation to pay for the TV licence.

And staying with the subject of TV ... did you know that landlord's with properties in blocks of flats tht have a communal TV system must ensure that their flat has access to digital TV before the analogue signal is switched off in 2012?

According to the National Landlord's Association, a third of its members are unaware that it is their

responsibility to take care of this.  "We are concerned how few landlords appear to be aware of their responsibilities relating to digital TV switchover," commented David Salusbury, NLA chairman.

"Any landlord who rents out a property which relies on a communal television system must ensure that the necessary steps are taken to make the switch to digital.

Letting properties professionally is a serious responsibility. With so many legal obligations to the tenant, the business of letting can be a minefield of regulation," he concluded.

On November 14th of this year, Whitehaven became the first UK town to have its analogue TV signal switched off.

If you own an apartment in a block with a management company in place, it will be worth checking with them what provision will be made for digital TV in that building.

Remember, education and knowledge is key to being a successful Landlady, so always keep yourself up to date with the latest government legislation.  That way, you won't be caught out in the future ....

Until next time, toodle pip.

Gas Safety Certificates - and the dangers of making assumptions ...

Just got back from a few days away and switched on my laptop to find two messages from my property management software system reminding me that 2 gas safety certificates were due on a couple of my properties. It’s a good job I got those reminders, as I hadn’t realised that nearly another year had gone by !  (Time does fly when you're having fun and making money!).

The software is worth its weight in gold, as it sends me early alert warning for tasks like the safety certificates, insurance, fixed rate mortgages ending etc. Having quite a number of properties it ensures that there are no oversights made with these issues – very, very important with the things that are a legal requirement..  Try to explain  to a judge that you ‘forgot’ to renew the gas safety certificate and an accident occurred at your property – gas related.  Trust me, it won’t get you very far.

Whether you only have one or many properties, it is vital that you professionally manage your portfolio and keep electronic control over it. It is important to be responsible, professional, and disciplined in managing your properties - after all the buck stops with you, and in a court of law, ignorance does not get you off the hook.

 

Oh, and another thing, don’t assume that because you have a fully managed service by a letting agent, that they will remember to get it done for you – after all administration errors DO occur.

I learned a very valuable lesson the other day that I think is worth passing on to you, fellow landladies.  When you "assume" something, statistically, 60% of the time, you are WRONG!  Assume = ass / u / me!.  In property, it is dangerous to "assume" anything.  Always do your homework, research, due dilligence etc to ensure you KNOW exactly what a situation, state of affairs, etc is.

After all, your property portfolio is and always will be YOUR responsibility, and if something goes wrong (even if you buy through a property club), you are the only person to blame.

Service Charges – the importance of checking your statement!

Service Charges – the importance of checking your statement!

Having a significant number of apartments in my portfolio, I am used to paying services charges and usually just write a cheque out when the statement arrives.  It is so important that these service charges and ground rent are paid as it is vital that maintenance of your investment property in developments is maintained to a high standard through these funds. After all, what tenant would want to stay in a development that looks dirty and unkempt?  But more important than that is the fact that the up-to-date state of your account is checked by solicitors when re-mortgaging – this could have a major impact on you if you were relying on funds from a re-mortgage as the lender will not allow you to complete the re-mortgage if your service charge account is in arrears.

Another point to consider, is that more and more landlords who are inexperienced and  struggling with high mortgage payments, low rents etc end up not paying their service charges and ground rent ….. big mistake!!  The reason?  Well, the management companies are being forced more and more to take action to recover the monies owed by instructing debt collection agencies and taking legal action.  Result to the non- paying Landlord: CCJs and a slippery slope on your credit rating.   So think twice when the next service charge bill lands on your doormat and putting it on one side!  (These debt chasing costs are also added into the following year’s service charges, therefore increasing them for all owners).

Anyway, back to what started this ranting …. Like I said, I usually just write a cheque out and pop it in the post but something made me look more closely at the statement – there was a charge of £246 for a water pump for the period 01 July – 30 Sept 07 and the same amount was mentioned again for the period 01 Oct – 31 Dec 07.  What is odd about this, I hear you say?  Well,  the property in question is a second floor flat which I have owned for 3 years and it is nowhere near any rivers etc. I got the property file and looked at past service charge statement and could find no previous mention of this water pump or request for payments. I also noticed that the service charge bill was from  the new management company who took  over earlier on in the year.

So a phone call soon resolved it all.  It was simply an administration error and it was not even for my development at all!!  To think that I nearly wrote a cheque out for nearly £500 more than necessary!  The moral of this story is to always check your service charge statements and ensure that the costs listed are relevant to your building.

Big Mark to the rescue ... ! (How to deal with bad tenants)

Hello there fellow investors ...

There's nothing I like more than a hunky man on my doorstep, and I was lucky enough to meet Big Mark today when he called round for a meeting.

You see, I was having a problem with one of my tenants who had not paid this month's rent on time.  We all hear about problems tenants, and "Tenants From Hell", but to be honest, in my three and a half years of being a Landlady, I've only experienced one bad tenant.  Stastically, bad tenants are in the minority, but if you do have one, you need to know how to deal with them effectively.  This is once again where education comes in.

So when the rental payment was late, I knew that, by law, I could call in a Registered Debt Collector straight away to pay a visit to my tenant and remind them that they owe me money.  Hence a quick call to Big Mark to enlist his services.  Now while it's great to know Big Mark on a friendly level, believe you me, you wouldn't want him darkening your doorstep for any other reason.  He looks like Herman Munster and wears size 15 boots like canal barges.  In other words, he's a BIG chap.  And with his floor-length black overcoat, he looks exactly like what he is - a debt collector.

So, I've enlisted Big Mark's help to collect this month's rent and he assures me that he has a very high success rate.  This is the first thing that you should do IMMEDIATELY somebody defaults on a rent payment.  If you allow the tenant to go into two month's arrears, its probably too late, and you will be heading towards a court hearing.  Use Big Mark to nip this problem in the bud.  He can apply legal pressure to a tenant to pay the rent, or at least encourage them to communicate with you if they are having problems.  When you have no line of communication with a tenant, that's when you know a situation is deteriorating.

I said in my previous post that I treat my tenants with respect, and I do - In return, I expect them to treat me with respect and pay the rent on time.  If they don't, they can expect a visit from Big Mark.

It is a little known fact that you can legally enlist the services of a registered debt collector the day that a tenant goes into arrears on their rent.  I hope you have found this information valuable as it has certainly served me well in this particular case.  And, of course, I got to have tea with Big Mark .....

Got to go and take the rollers out of my hair now ....

Until next time, happy investing ...

x

Welcome to my world!

Welcome to my world!

Hello there!  If you’re reading this, I know we share a common interest and passion – property investment!  I don’t know about you, but my long-suffering husband is thinking of sending me to Property Investors Anonymous for some therapy as he thinks I’m becoming a little bit too obsessed with this game.  Well, who can blame me for being passionate about property when it has afforded me so many choices, not to mention financial freedom and independence (vital for all women, don’t ya think)?   The purpose of this blog is to share that passion with fellow property-a-holics by recording the daily trials and tribulations of being a Landlady.  I’d like to be to property investing what the Spice Girls were to Girl Power:  in other words, making things very accessible to all.  Zig-a-zig ahhhhh!  (Men are welcome too!).

 
When it comes to property investing, you definitely need Attitude with a capital “A”, as it takes drive and determination to be successful.  This is more important than talent or aptitude, exactly as was the case with Posh and friends!  And successful property investing could certainly help you achieve a pop star’s lifestyle – but that’s a mid to long term view, and one that I’ll share with you another time.

Let’s get down to the nitty gritty: No one day in this game is the same, other than my day starts by greeting my postman with some friendly banter about why I’m still in my pink fluffy dressing gown and slippers at 11.30 in the morning.  To be serious though, what he’s got in his sack (figuratively speaking!) will have a huge impact on the how the rest of my day pans out.  Postie Pete can be the bringer of fantastic news, such as a re-mortgage completion statement, or the bringer of bad news, such as a service charge invoice.  It’s all a lottery and after I’ve seen the postman off with a friendly wave and ripped open my post like a rabid terrier, I’ll either be cursing to high heaven, or doing a little dance of joy  – behind my net curtains of course.  Then there will be a flurry of emails and phone calls before I break for my lunch at 12.30.

My afternoon is spent doing ... stuff.  More phone calls, more emails, more sorting out issues with different properties.  Plus, of course, I’ve always got a new property going through conveyancing and there are forms to be checked and signed. Sigh.

It’s interesting that when I reflect on my day, as I sit with a warming cup of cocoa of an evening watching repeats of “Location, Location, Location”, I know I’ve been incredibly busy, but I couldn’t exactly tell you what I’ve been up to.  Therefore, I thought that if I write my diary, it will help me to realise and appreciate for myself what each day has achieved.  After all, property is a constant learning experience and, as my husband likes to quote on occasion, there is no “win or lose”, only “win and learn”.  He’s very profound sometimes, is my husband.

But to conclude my debut blog release, a little potted history of myself.  I’ve been a Landlady for just over three and a half years now and have loved every minute of it.  On occasions, it has been challenging, but the rewards far outweigh the downsides and it certainly beats the 9 – 5 rat-race.  After 15 years of impersonating a sardine on the London underground daily commute, its sheer joy to wake up at 9.30 a.m. and listen to the distant symphony of the rush hour traffic hurtling up the A3 to London.  I then turn over for another 30 minutes lie-in safe in the knowledge that I dance to my own tune now.

My portfolio consists of a large number of apartments in North and East London, and an equally large number of houses dotted around the country.  I treat my properties as a business, and therefore I regard my properties as my “employees”.  And believe you me, they are the best employees you could ever wish to have!.  They work 365 days a year, come rain or shine, making me money through cash flow from the rent and capital appreciation.  They never ring in on a Monday morning after a boozy weekend and try to pull a sickie, they never go on holiday, and they never go on strike.  They make money for me while I am asleep, while I am reclining on a beach in Cyprus, while I am having my hair and nails done and my legs waxed .... .  Unlike me, my properties never stop working.

And if my properties are like my employees, then my tenants are my “clients”.  Therefore, I treat my clients with the utmost respect, so that they stay in my properties as long as possible, servicing my mortgage debt through the rent.  I love all my tenants dearly and look after them!    Why only this week, my tenant in one of my one bed flats in Highbury, North London asked me if it might be possible to put a sofa bed in the lounge so that her Mum might come and stay occasionally.  “No problem”, I said “consider it done”.  A quick phone call to my letting agent, Adam, and it was.   (Don’t  you just love IKEA?  I’m starting to know the product codes now – seriously worrying my husband with that!).

Meanwhile, another of my tenants had put up with a lot of snagging issues in one of my new apartments, so to thank them for their patience while it was sorted out (which was a fair bit of hassle),  I sent them some M & S vouchers for their trouble.  Happy clients/tenants put down roots and by keeping an open and honest communication with them, I minimise my turnover and also any problems, such as non-payment of rent.  Tenants are wonderful people – respect them and they will respect you and your property.  That’s my philosophy anyway!  That’s the great thing about property investing and being a Landlady – do it with your own style – it’s all about you!

Well, its nearly time to go and watch “A Place In The Sun”, so I’ll sign off now ....  I really want to feel connected to  you, dear readers, so spice up your property investing life by signing up for my blog and learn through my experiences, both good and bad.  Remember, “you can never learn less” – another of his indoors profound sayings.

Until next time, happy investing ... Toodlepip ....

Landlady...

Morning, yet more stuff through the post.