Bwengu Project Malawi
Our operations manager, Chris Holmes, will be talking part in the Bwengu project in Malawi this month. See the latest updates about the amazing work the team will be doing for the children of Malawi on our Facebook page! A very worthy cause that we are extremely proud to be part of.

Here’s Chris’ final statement before jetting off to start this incredible adventure.

“Just finished packing the 5 tee shirts, a pair of trousers and shorts plus socks and underwear.

The rest of the baggage is teaching equipment for the schools and football shirts and shorts for the children.

A special thanks to all who donated the football kits and a special thanks to the girls at Bricknells especially Natalie for coordinating the donation of the football kits.

Thanks also to Anne Marie of Spencer Harvey Estate Agents for the Manchester United ‘Red Devil’ kit.

We intend to hand these over once in Malawi to Headmaster Dickens – he will take out the older boys kits and distribute those.

Then he will give the younger boys kits to Chinunkha Junior head teacher for the youngsters – all the kids love football. Photos to follow.

Taxi arrives at 3 pm and we are off, now where did I put that mosquito net!

Will aim to keep you all posted”

Below is a link of how you can help support this incredible cause.

Support Us

At Bricknells we subscribe to many industry publications and a particular headline caught my eye over the past week:

‘Why I may quit buy to let – a landlord explains their S21 dilemma’

This was all to do with landlord confidence being eroded by the suggestion that Section 21’s are to be abolished.

For those unaware Section 21 notices are issued where landlords could gain repossession of the property through ‘no fault’ of the tenant.
This does seem unfair where tenants through no fault of their own can be homeless in 2 months.
However there are tenants that don’t pay the rent, don’t look after the property and for them the landlords need the security of a Section 21 notice.
However that’s the system and I don’t suppose whatever I say will influence the government’s decision.

However thinking out loud wouldn’t it be good if a landlord could let a property to a tenant for a fix term at an agreed rent and after the fix term the tenant had an option to buy at a pre-agreed price.

This would give the tenant fulfilment of their aspiration to buy a property and the landlord has an exit strategy for their investment.

I don’t want to say too much now but this is our very own new initiative:

‘RENT TO OWN’

We will explain more over the coming weeks but if you want a head start feel free to contact Chris Holmes on mobile number 07743 702739

Inventories

Both the Tenancy Deposit Scheme (TDS) and the Deposit Protection Service (DPS) have issued renewed guidance and top tips for Landlord’s and Letting Agents on the best practice for property inventories and schedules of condition. Having a detailed record of the property contents and condition is vital when it comes to deposit negotiations at the end of the tenancy. It is therefore a two-part process – a detailed report when a tenant moves in and similarly a thorough end of tenancy check both with photos.

Bricknells have invested in great software to produce good quality inventories that allow for descriptions, condition and time and date stamped photos so you can be sure the evidence is clear and negotiations run smoothly.

Contact Bricknells if you have an inventory that needs completing for your next tenant move in.

TDS guidance

DPS top tips

From the 1^st June 2019 the Tenant Fees Act comes into force affecting all who operate in the Private Rented Sector. All tenancies entered into after this date (including tenancy renewals) will be subject to the legislation which bans ALL fees and charges to Tenant’s apart from 7 specific charges that are listed below.

With potential civil penalties of up to £5,000 it is important that all Landlord’s and Letting Agents understand the new rules and do not take any payments from Tenant’s that are now banned.

1, Rent

2, Utilities

3, Holding Deposit (of no more than 1 weeks rent) unless the annual rent is over £50,000

4, Deposit (no more than 5 weeks rent OR no more than 6 weeks rent if the annual rent is over £50,000)

5, Tenant Default Fees of which there are two. One is Missed rent payments – a charge of 3% above the Bank of England base rate can be levied if rent remains unpaid after 14 days from when it is due. The second is Lost keys and other security devices

6, Variation or novation of contract (capped at £50)

7, Surrender of Tenancy

Bricknells have made themselves Tenant Fee Ban compliant. If you manage your own properties then call Bricknells for a review of your property portfolio and we will provide free advice on how this recent legislation affects you and how we can help.

For further in depth information here is a link to the Governments guidance document for Landlords and Letting Agents

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/791273/TFA_Guidance_for_LandlordsAgents.pdf

Zero Deposits – What are they?
What?? A Landlord doesn’t take a deposit from the Tenant?? Surely this can’t be right?? Well, not all is as it seems here, what I am talking about is something called a ‘Zero Deposit Option’ and the theory behind it is to give potential tenants more financial freedom whilst still providing the same protection for landlord’s who will accept a Zero Deposit as a traditional cash deposit does. Landlord’s can still claim against the Zero Deposit if terms of the tenancy agreement are broken in the same way as they do now. The Zero Deposit company would pay the landlord if the claim is upheld and then the Zero Deposit company would take up the costs with the tenant separately meaning the tenant still has a vested interest in looking after the property in the same way as they do now.

What’s the catch?
For the landlord the upside would appear two-fold. The first upside is that they are covered for all of the same things that a traditional cash deposit would cover in a tenancy agreement contract up to a value of 6 weeks contractual rent. The second upside is that it should help with a quicker rental of the property as more potential tenants would have the finances to take the property. More potential tenants should equate to smaller void periods between tenancies.
For the tenant there is a little more to consider, the upfront cost of moving into a property is reduced as they don’t have to find a large deposit sum (normally 5 weeks of the contracted rent) BUT instead they pay for a Zero Deposit policy. This is non-refundable so they do not get this money back at all but it is only going to cost 1 week of the contracted rent so a large sum of 4 weeks of rent doesn’t have to be found upfront. This is where careful consideration for the tenant has to come in.

Is this product right for them?
Yes, the tenant has less money to find upfront but there is a sum of money (1 weeks rent) that they definitely won’t get back whereas with a traditional cash deposit, if they meet all of the obligations under the tenancy agreement and hand the property back in the same condition as it was given, then they would normally receive all of their cash deposit back.

What are your thoughts Landlords? Call Bricknells to discuss the pros and cons to see if this works for you.

Has it ever crossed your mind ‘How can I release equity from my property?

Look at these case studies which may inspire you to think differently.

Donna and Mark had been trying to sell their house for 2 years with no luck. They owned half their house outright but wanted to move to a new home across the other side of town.  They had little savings and felt really stuck.  Steph suggested that they ‘capital raised’ the deposit, for the new house, out of there current homes equity and rented their house out to enable them to move!  They were going to be hit with £12K Stamp duty as oppose to £6K if they sold, however she worked out that they would make the difference back in rental income in a year! The couple are set to move in May.  If you can’t sell you house, and would like to turn it into an investment speak to us and we can help this dream become a reality!

Dave got made redundant two years ago and has had a pot of cash in his back pocket since. He was lucky to walk straight back into work at another place! Last year, he made £2.50 on his savings that were sat in his bank.  He started looking at his options and found out that if he invested his redundancy money into a “Buy to let” he would make a profit of £325 per month!  He is now the proud owner of two houses and the money he makes is used to pay off his own mortgage… 12 years early.