Biz and Tech Podcasts > Business > Good Landlording
A weekly podcast co-hosted by Suzanne Smith and Richard Jackson, who discuss practical tips to help you start, grow and succeed as a landlord in England
Last Episode Date: 4 December 2024
Total Episodes: 37
In this episode of Good Landlording, Suzanne Smith and Richard Jackson discuss how landlords can find tenants themselves by using online letting agents, instead of traditional high street agents. They share insights on creating effective property listings, the importance of quality photography, compliance with legal requirements, and the process of screening and selecting tenants. They emphasise the need for landlords to adapt to changing market conditions and to be thorough in their approach to tenant selection. >> Ask a question: Click here for question form Suzanne and Richard cover the following in sharing tips on the steps that landlords need to go through to successfully list properties on the portals and find good tenants: How technology has transformed the way landlords find tenants The increasing market share of online letting agents The steps landlords need to go through to list properties on the portals What material information is needed for the listing? Gathering the various safety and regulatory certificates to serve on the tenants Creating a compelling property description The importance of high quality photos, a floor plan and a video Screening applicants The rules about holding deposits Referencing Tenancy deposits Signing the tenancy agreement Credits window.addEventListener('message',function(e){'https://widgets.blubrry.com'===e.origin&&'object'==typeof e.data&&(document.getElementById(e.data.senderId).style.height=e.data.height+'px')}) Music: "Paradise Found" by Kevin MacLeod of Incompetech. Licensed under Creative Commons: Attribution 4.0 License.
Tenancy deposits are important. They give landlords comfort that they won’t be out of pocket if there is damage to the property at the end of the tenants or if there are arrears. However, tenancy deposits are subject to a lot of regulation to ensure that tenants' interests are protected. In this episode of Good Landlording, Suzanne Smith and Richard Jackson cover the following: The difference between custodial and insured deposits. The rules about tenancy deposits. What happens if landlords don't comply with the tenancy deposit rules? How does a tenancy deposit differ from a holding deposit? What deductions can landlords make? Can landlords charge for their own time? Can a landlord replace something with an upgrade? What happens if the tenants won’t agree to the deductions? >> Blog post: What deductions can landlords take from tenancy deposits? >> Blog post: What landlords need to know about Deposit Protection Schemes Key insights about deposits Here are the key insights from the podcast episode. The rules about tenancy deposits are intended to ensure that deposits are properly protected, ad that the landlord makes appropriate deductions. Custodial deposits are held by third-party schemes, while insured deposits allow landlords to keep the money. Landlords need to register the deposits and provide the prescribed information about the deposit protection to the tenant within 30 days. If the deposit is not protected properly, tenants can claim compensation and a landlord won't be able to issue a valid Section 21 notice. It's essential to document the condition of the property with a detailed inventory, preferably done by an independent third party as that constitutes better evidence. Landlords can charge for their time spent on cleaning and repairs under certain conditions. (See the MyDeposits article explaining the circumstances where landlords can charge for their time). Disputes over deposits can be escalated to the deposit schemes. >> Related episode: How to manage tenants and keep them happy Credits window.addEventListener('message',function(e){'https://widgets.blubrry.com'===e.origin&&'object'==typeof e.data&&(document.getElementById(e.data.senderId).style.height=e.data.height+'px')}) Music: "Paradise Found" by Kevin MacLeod of Incompetech. Licensed under Creative Commons: Attribution 4.0 License.
In this week's episode of Good Landlording, Suzanne Smith and Richard Jackson discuss the key insights from the NRLA Landlord Conference in Birimingham on 5 November 2024, sharing useful information for landlords. This includes: Data from Richard Donnell of Zoopla, relating to the economics of investing, particularly the impact of higher interest rates on investors, and his prediction that rental growth will slow to around 3-4%.. James Caan's advice to entrepreneurs to be flexible, be creative and be prepared for failure, as failure can lead to success. He also underlined the importance of people, building relationships and keeping learning. The importance of having swift resolution of cases by the redress schemes, and Suzanne's wish for the decisions to be publish so that the case law develops. Technology promises to grow in importance for landlords, and there is certainly demand there. However, there is currently no "end to end solution" that does it all. Is Andy Burnham's Good Landlord Charter in Greater Manchester an unnecessary accreditation? (More details here: Good Landlord Charter) The merits of investing locally. Why it's so wonderful meeting other landlords in person. 😊 >> Ask a question: Click here for question form >> Join: Link to get £15 off NRLA membership A meet up of some of the listeners of Good Landlording at the NRLA conference Credits window.addEventListener('message',function(e){'https://widgets.blubrry.com'===e.origin&&'object'==typeof e.data&&(document.getElementById(e.data.senderId).style.height=e.data.height+'px')}) Music: "Paradise Found" by Kevin MacLeod of Incompetech. Licensed under Creative Commons: Attribution 4.0 License.
In their rental market update for Q4 2024, Suzanne Smith and Richard Jackson discuss the impact of Labour's first budget on landlords and property investors, the latest on the Renters' Rights Bill and what's happening with rental trends. >> Ask a question: Click here for question form What we cover in this episodeLabour's Autumn BudgetWhat's happening with the Renters' Rights BillSoftening of rental demand Labour's Autumn Budget Richard and Suzanne discuss the key changes for landlords and property investors in the budget: SDLT. The Chancellor increased stamp duty by 3% for "additional properties" on 31 October 2024 and there will be a further increase on 1 April 2025, when the first threshold will be lowered from £250,000 to £125,000. This will add £2,500 to the amount of stamp duty payable on the average property. Capital gains tax - no change for property investors. Income tax - the impact of fiscal drag is that the amount of tax people pay will increase in real terms as the bands are not being increased byt inflation. National insurance contributions - the budget increased employer national insurance contributions and lowered the threshold, meaning that employers will need to start paying NICs at a lower amount. Pensions - no changes to potentially exempt transfers or the various caps, but most unused pension funds and death benefits will be included within the value of a person's estate from 6 April 2027, which means they could be subject to inheritance tax of 40%. >> Blog post: What the 2024 Autumn Budget means for landlords and property investors What's happening with the Renters' Rights Bill The Renters' Rights Bill is making good progress through the House of Commons, and entered the Committee Stage on 22 October 2024. The Committee are going through the Bill on a clause by clause basis. The Housing Minister has made it clear that they won't be backing down on fixed terms or making exceptions for students. The ambiguity around up front rent payments has been discussed a lot, and the Minister said he will make the position clear in the Bill. >> Blog post: The latest on the Renters’ Rights Bill >> Related episode: What the Renters’ Rights Bill changes about rent Softening of rental demand There are signs that the renal market is slowing down, with demand softening. Anecdotally, Richard and Suzanne have recently seen it in London and Kent respectively. This is backed up by Rightmove's Rental Trends Tracker for Q3 2024 which says the average number of enquiries per rental property is now 15, down from 23 last year. However, this is nearly double the 8 before the pandemioc in 2019. The advertised rental price is dropping before finiding a tenant for more than a fifth of rental properties. Credits window.addEventListener('message',function(e){'https://widgets.blubrry.com'===e.origin&&'object'==typeof e.data&&(document.getElementById(e.data.senderId).style.height=e.data.height+'px')}) Music: "Paradise Found" by Kevin MacLeod of Incompetech. Licensed under Creative Commons: Attribution 4.0 License.
Hot on the tails of Keir Starmer's controversial assertion that landlords aren't "working people", as it's passive income, like income from shares, Suzanne Smith and Richard Jackson discuss objectively the extent to whether income from residential rental properties can be considered "passive". Stepping back from the political debate, they examine "passive income" means, and contrast it to what landlords need to do to earn money from their rental properties. Although property "gurus" claim that rental income is passive, there is a trade off between outsourcing and profit. It's also the wrong mindset. >> Blog post: Can landlords make passive income from rental property? >> Ask a question: Click here for question form What we cover in this episodeDifferent types of landlordsWhat does "passive income" actually mean?How do landlords make money from rental properties?What do landlords actually do to earn money?Landlords' legal obligationsOther strategiesFinal thoughts Different types of landlords There are two key types of residential landlords: part-time landlords who manage properties alongside a full-time job, and professional landlords who manage their property portfolios as their main occupation. Richard emphasises that even part-time landlords work very hard, juggling their careers with property management. Suzanne adds to this by discussing the responsibilities and engagement required, even for those landlords who might have fewer properties. Landlords who manage properties themselves do not earn passive income - it is a job. On the other hand, income from landlords with full repairing commercial leases is more passive. What does "passive income" actually mean? HMRC considers passive income to be investing in assets, and not from running a trade or a business, or being an employee. They give examples such as interest payments from bank accounts, annuities, and dividends from money invested in the stock market, and don’t refer to rental income. Forbes frames it as income that doesn’t need a significant commitment of time or effort to earn, with only minimal monitoring on an ongoing basis. They say that rental income doesn’t fall within the definition of passive income as it requires a large up-front investment, as well as ongoing maintenance and management of the property. Despite what the "property gurus", earning rental income as a landlord isn’t the same as getting interest from money in a bank account, or dividends from stock market investments. However, is it right to say that landlords really earn money with minimal effort? How do landlords make money from rental properties? Landlords earn money from rental income and capital growth. Landlords need cashflow from rent in order to pay the bills while they are waiting for capital growth, unless they are going to dip into their savings. Capital growth is never guaranteed. Although property prices boomed in London in the past, anyone who bought a flat in London over the last 5 years will know that capital growth is not a given. Suzanne barely broke even on her flat in Cambridge in 7 years, despite it being a fantastic flat a great location. What do landlords actually do to earn money? But before landlords earn anything, they need to find, finance and buy a new rental property, which is time-consuming and expensive. Then they need to refurbish the property (unless it's a new build), make sure it's compliant, and then find suitable tenants to rent the property. Once tenants move in, they will need managing, and the property will need ongoing repairs and maintenance to keep the property in great condition, and compliance with landlords' various legal obligations like the annual gas safety certificate. There is always a lot of work when tenants change over. It is running a business. If landlords outsource these activities, the income can be more passive, but that will reduce margins.
This week, Suzanne Smith and Richard Jackson talk about a subject that causes a mixture of angst and even anger among landlords, and that's EPCs, or Energy Performance Certificates. EPCs are very important for landlords, as the government announced in September that they'll be consulting on proposals for private and social rented houses in England to achieve EPC rating C by 2030. They start with a recap on what EPCs are and the current minimum EPC for private landlords, before discussing problems with unreliability, and government plans to increase the minimum rating to a C and improve the reliability of EPCs. Suzanne goes through what we know about the new Warm Homes Local Grants that will available for some private landlords from 2025, and they both end with some practical tips and ideas for improving the rating. >> Ask a question: Click here for question form What we cover in this episodeThe new consultation for private rented properties to have EPC CWhat is the average energy efficiency rating in the PRS?What is an EPC?How to find out what EPC a property hasWhat rules do landlords need to comply with relating to EPCsHow accurate are EPC ratings?Do EPCs help lower emissions?Warm Homes: Local GrantsTips for improving your energy efficiency ratings The new consultation for private rented properties to have EPC C The government announced in September that they'll be consulting on proposals for private and social rented houses in England to achieve EPC rating C or the equivalent by 2030. What is the average energy efficiency rating in the PRS? According to the latest government figures, the average EPC rating for the private rented sector in England and Wales is D (65) for existing properties. (Rating C starts at 69). However, the figure of 65 includes flats, which tend to have a higher EPC rating, as well as post-war properties. What is an EPC? "EPC" stands for energy performance certificate. It was originally introduced by the European Union, and was designed to make the energy efficiency of buildings more transparent and comparable between different properties. It's a certificate, which shows the rating of the property's energy efficiency, ranging from the most efficient at an A to the least efficient at a G. A qualified energy assessor creates an EPC by inputting information into government approved software about the building, its heating, lighting, ventilation, air conditioning Consequently it's important that the energy assessor inputs accurate information into the software. How to find out what EPC a property has It's easy to look up the EPC rating of any property by using the Find an energy certificate checker. This is very useful for landlords as they can look up the EPC ratings of other properties in the same street and see which assessors have done the ratings. What rules do landlords need to comply with relating to EPCs Currently, rental properties must have an EPC rating of either at least an E or for the landlord to have spent up to the cost cap on improvements, ie £3,500 (inc VAT) on energy efficiency improvements. The landlord must have commissioned the EPC before listing a property, and must use "all reasonable efforts to obtain one within seven days". Landlords need to provide tenants with a copy of the full EPC with the assessor's report before they sign the tenancy agreement. If they don't do this, they may be unable to serve a Section 21 notice. An EPC is valid for 10 years, and doesn't need to be renewed until the property is listed for sale or rent after it expires. . And, of course, that's soon gonna be phased out anyway. Yeah. And so an EPC is valid for ten years. And a question How accurate are EPC ratings? EPC ratings are notoriously variable and unreliable, and there's much academic research which concludes the same. For instance, research by Leeds Beckett University (2019) found that “27% of EPCs in the ope...
How can landlords intervene to break the cycle of damp and mould in their rental properties? No-one likes living in a property with black mould, and the death of toddler Awaab Ishak in 2020 after developing breathing problems because of the black mould in the flat his parents rented from a housing association show just how important it is for landlords to take damp and mould seriously. There's often more than one cause of black mould, and it's important for landlords to get to the bottom of it. This is another very practical episode for landlords. Suzanne Smith and Richard Jackson discuss the different types of damp, what causes black mould, the practicalities of landlords' responsibilities, what landlords should do if a tenant reports damp and mould, and some practical tips to help landlords and tenants to stop condensation mould coming back. >> Ask a question: Click here for question form What we cover in this episodeWhat are landlords' legal obligations about mould?The Decent Homes Standard and Awaab's LawThe different types of damp2. Condensation damp2. Water penetration3. Rising dampWhat is black mould?What causes black mould?What must a landlord do if a tenant reports black mould?Tips to reduce the risk of black mouldThe importance of keeping recordsThe importance of a collaborative problem-solving approach with tenants What are landlords' legal obligations about mould? The law requires all privately rented properties to be fit for tenants to live and free from serious hazards that are harmful for health. If damp and or mould are present in a rental property, it's the landlord's responsibility to identify the underlying causes of the problem so that they can be addressed. In fact, Government Guidance published in 2023 states that landlords must take damp and mould seriously, assess the underlying causes with urgency, take appropriate action and keep tenants informed. Landlords have a legal obligation to maintain the fabric of the building, and remove the source of the moisture to reduce the risk of damp and mould. From a practical perspective, this means that landlords should fix such as misaligned downpipes, blocked guttering, leaking waste pipes, missing roof tiles etc. Tenants on the other hand are responsible for keeping the property in a “tenant like manner”. >> Related blog post: What does “tenant-like manner” mean? >> Related blog post: How should landlords best tackle damp and mould? The Decent Homes Standard and Awaab's Law The Renters' Rights Bill is introducing some new obligations on private landlords, not only to comply with a new decent home standard for the PRS, which will the hazards of damp and mould, but also Awaab's Law. "Awaab Law's" is the name given to Section 42 of the Social Housing (Regulation) Act 2023 which requires social landlords to fix reported health hazards within specified timeframe, still to be confirmed. The Renters' Rights Bill will extend Awaab's Law to the private rented sector. They haven't yet clarified how they will do this, although in the Guidance to the Renters’ Rights Bill says that details will be set out in regulations, after consultation on how best to apply Awaab’s Law to the PRS “in a way that is fair, proportionate and effective for both tenants and landlords”.Second Reading . T >> Related episode: Election special: What the manifestos say about rental reform >> Related blog post: Renters’ Rights Bill and the Decent Homes Standard for the PRS The different types of damp 2. Condensation damp Condensation damp happens when warm moisture vapour that's created inside a property from breathing, cooking, showering, and drying washing, cools and condenses into water when it touches, cold parts of buildings, such as outside walls and windows. You often see condensation on a windows and it's worse on outside walls. Condensation sometimes isn't visible as it starts to grow in hidden places where th...
Following the publication of the Renters' Rights Bill a little under a month ago, and in honour of the Second Reading of the Bill in the House of Commons today, Suzanne Smith and Richard Jackson answer some of the many questions they've received from listeners of Good Landlording about different aspects of the Bill. The episode is full of practical advice, and explains the areas where things aren't yet clear. On that note, it's of course course subject to the usual disclaimer that the Bill still isn’t finalised, and some of the wording is ambiguous. The questions about the Renters' Rights Bill cover topics as diverse as rent, what happens when Section 21 is abolished, the transition arrangements, the treatment of antisocial behaviour, pets, students, and the possible impact on leaseholders. There is a worked example of the transition arrangements in the show notes below. >> Ask a question: Click here for question form Questions we answer in this episodeDetail on the new rules on rentWhat happens when Section 21 goes?What happens to Section 21 notices pending on Commencement Date?What are the current time limits for Section 21 notices?General rule for Section 21 notices served before the Commencement DateExample timeline assuming Commencement Date is 1 July 2025Transition arrangements - worked examplePetsStudentsImpact on landlords who are leaseholders Detail on the new rules on rent Here are the questions from listeners about how the Renters' Rights Bill changes rent: It seems that it is possible to increase a rent to market rent and not to a fixed percentage increase? Isn't this a good thing for Landlords? I'm struggling to find the clauses dealing with "no advance rent payments". Is that a thing? It’s been mentioned quite a bit by various people, but in your recent podcast, Suzanne said it’s not clear. Can she explain more about that? >> Related episode: #27: What the Renters’ Rights Bill changes about rent >> Blog post: The new rules about rent in the Renters’ Rights Bill What happens when Section 21 goes? Here are the questions from listeners that relate to the abolition of Section 21 in the Renters' Rights Bill: Can a tenant under the new legislation avoid eviction by staying 2 months in rent arrears, so they avoid reaching the three month threshold for eviction? Can you expand on how Anti-Social Behaviour is treated in the RRB, please? If you want to sell your HMO, (not to family), it mentions tenancies of not less than 12 months which is not possible in an HMO? Okay if you are selling it on as an HMO but if not? I entered into a 12 month AST with tenants on 1 August 2024, and I don’t want to renew with them next year. Can I serve a s21 notice now? What happens if I serve a s12 notice just before the s21 is abolished? >> Related episode: #26: What happens when Section 21 is abolished? >> Blog post: How and when will Labour abolish Section 21 no fault evictions? What happens to Section 21 notices pending on Commencement Date? When the Renters' Rights Act comes into force, the general rule is that all Section 21 notices that have been served before the Commencement Date (when the new tenancy system comes into force) will still be valid. However, there are some rules regarding how long a landlord will have to apply for an order for possession after the the notice expires before it becomes time-barred. What are the current time limits for Section 21 notices? The current rules are that the Section 21 notice can't be served in the first 4 months of a tenancy. However, if the tenants ignore the notice and don't move out when it expires, the landlord must apply for an order for possession within 6 months of the date the notice was served. This rule will be modified for Section 21 notices that expire after the Commencement Date. General rule for Section 21 notices served before the Commencement Date
Good tenants are precious, and landlords should do all they can (within reason!) to keep them happy and encourage them to stay. In this episode of Good Landlording, Suzanne Smith and Richard Jackson talk about how to keep tenants happy. Starting off on the right foot even at the viewing stage, so it creates a positive impression for new tenants, and keeping them happy once they've moved in. They borrow some ideas from the management of employees, and apply them to the management of tenants. This starts with an "onboarding" process to create a positive relationship - or the "psychological contract" in management speak. It's not all management theory. The episode is full of lots of practical tips to help landlords look after their tenants and keep the tenants happy. >> Related episode: #1: What makes a good tenant? >> Ask a question for the show: Click here for question form What we cover in this episodeWhat is "onboarding"?Why the "psychological contract" is important?What is a tenant onboarding or induction?Tenant reviews of landlords - Marks Out of TenancyProvide a welcome pack or house manual to tenantsWhat quiet enjoyment meansManaging repairsBe professional and business-like What is "onboarding"? Richard and Suzanne have both worked for American companies, and are used to the concept of "onboarding programs" for new employees. Onboarding is similar to what we call an an induction in the UK, but is more than that. It involves, welcoming a new employee into a company, showing them the ropes, and explaining what support there is, and also what the expectations are for the working relationship. Why the "psychological contract" is important? This onboarding idea is an important part of what's called the "psychological contract" between a company and an employee. It's how both parties understand their relationship outside of their formal contract of employment. It's all about how the employee feels about their boss and the company. It can be positive, or negative, and it starts at the interview stage. A similar psychological contract arises between tenants and landlords. Instead of a contract of employment, there's a tenancy agreement. This psychological contract is how the tenant feels about their rental property and their landlord, and is key to having happy tenants. We need to think about the psychological contract as starting from the very first moment that we meet the tenant when we're choosing them through agents or whether we're doing it ourselves. It continues when they move in and throughout the rest of the tenancy, until they eventually leave. What is a tenant onboarding or induction? Suzanne sees the relationship starting once she receives a message from an applicant through the online letting platform. Before they even view the property, she will have sent them suitability questions and may have called them (to avoid time-wasters). She also sends them a a link to the website for her property business, which has FAQs and a pet policy. At the viewing itself, she explains she's an Accredited Member of the NRLA, and that she's a good landlord who takes her obligations seriously and keeps the property in good repair. She sets expectations by saying she is looking for good long term tenants who look after the property, pay the rent on time, and are good neighbours. If they have a pet, she'll talk about her pet policy, and she tells them she increases the rent each year. This all ensures they know what they're getting before they make an offer to rent the property and send the holding deposit. Both Richard and Suzanne show the tenants around the property when they move in, and leave a house manual / welcome pack. Here are a few tips of things to cover when tenants checkin: Communication: explain the means of communicating with tenants, such as a WhatsApp group with the tenants to make it easy to contact each other.
The Renters' Rights Bill makes significant changes to the rules about rent for landlords and tenants in England. In this podcast episode, Richard Jackson and Suzanne Smith discuss the proposed restrictions on landlords when accepting offers from tenants, the new process that landlords will need to follow to increase rents, the new powerful rights for tenants to challenge and delay even reasonable rent increases, and what's happening with advance lump sum rent payments. They also discuss the challenges that landlords and letting agents face with a very short implementation timetable, with the expected "big bang" change over to the new tenancy system by the summer of 2025. Finally, they share tips on how to successfully navigate the change. >> Related episode: #26: What happens when Section 21 is abolished? >> Blog post: The new rules about rent in the Renters’ Rights Bill >> Ask a question: Click here for question form What we cover in this episodeThe changes to how landlords increase rentThe greater powers of renters to challenge rent increasesCan landlords accept advance lump sum payments of rent?The likely impact on tenants without a good credit historyThe rules to stop “rental bidding” The changes to how landlords increase rent Landlords will only be permitted to increase in-tenancy rent by giving at least 2 months' notice to expire at the end of a rental period, using the statutory process in Section 13 of the Housing Act 1988, and what will be an updated Form 4. Landlords won't be able to increase rent by agreement (unless the agreement is to reduce rent after a landlord serves a s13 notice) and all rent review clauses in tenancy agreements will be null and void. The greater powers of renters to challenge rent increases As now, tenants will be able to appeal Section 13 rent increase notices in the First-tier Tribunal, who will determine the market rent. If they do challenge a rent increase at the FTT, any increase in the rent will only come into effect on the date of the FTT determination. In other words, it won't be backdated to the date specified in the notice. This will have the effect of delaying an increase in rent that is fair and reasonable. Given the current delays on a small number of cases in the FTT now and the expected increase in appeals, this may have the effect of what David Smith of JMW terms "rent suppression". Can landlords accept advance lump sum payments of rent? The Bill does not say in words of one syllable whether advance lump sum payments may be made, and there is some disagreement between lawyers. This needs to be clarified urgently. The likely impact on tenants without a good credit history If upfront payments are outlawed, and given the expected increase in rent guarantee insurance as a result of the abolition of section 21, unless tenants have a good credit history, they may find it difficult to find somewhere to rent. The rules to stop “rental bidding” When landlords list or offer a property for rent, they will need to set a proposed rent. Landlords will not be permitted to accept offers above the proposed rent from prospective tenants. Credits window.addEventListener('message',function(e){'https://widgets.blubrry.com'===e.origin&&'object'==typeof e.data&&(document.getElementById(e.data.senderId).style.height=e.data.height+'px')}) Music: "Paradise Found" by Kevin MacLeod of Incompetech. Licensed under Creative Commons: Attribution 4.0 License.
Discover new partners and
collaboration opportunities —right in your inbox.
Get notified about new partnerships