Common damage to rental property, estimated to cost buy-to-let landlord, could be avoided with mid-term inspections, according to Imfuna Let, the UK’s leading inventory software solution.
Landlords often face common damage at the end of the tenancy which can run into hundreds of pounds. The most common damage includes iron burns on carpets; cigarette burns; soiled marks on baths and UPVC window sills and frames; heat damage to polished wooden furniture; and stiletto heel imprints on wooden floors and vinyl.
Claiming for damage on insurance policies may prove to be tricky point as the Chancellor announces that Landlord Insurance Premium Tax will be increased in November 2015 from 6% to 9.5%, making this an unattractive solution for a lot of landlords who claim for damage on their policies.
It’s so important for landlords and agents to carry out mid-term inspections to assess the condition of the property and discuss any damage with the tenant. Clearly there is a distinction between actual damage and fair and appropriated wear and tear. Jax Kneppers, Founder and CEO of Imfuna comments: “Damage to floor coverings such as cigarette burns or stains, is very different from wearing of the carpet pile.
“A mid-term inspection gives the tenant and the agent or landlord an opportunity to have an open discussion on the condition of the property, so that all parties can come to an agreement about what constitutes damage and wear and tear.
“We have developed a mid-term or quarterly property management visit template that is available to all users. This enables landlords, letting agents and tenants to have an ongoing ‘conversation’ throughout the period of the tenancy, where any damage to the property can be assessed and repair or replacement can be negotiated between the parties.
“Furthermore, mid-term inspections can help to reduce the number of people subletting property without the landlord or the agent’s knowledge. As bought about by the 2015 Budget, the UK Government has prevented the use of clauses that restricts tenants from subletting their space. When subletting occurs, records may not be made as to the identification of the subletting tenants. Mid-term inspections can solve this. Subletting within properties can add to the levels of wear and tear seen within a property. This can also be resolved by performing a comparison mid-term inspection report on the Imfuna software, closely monitoring how the property is being used by the tenant.
“To further highlight the need for mid-term inspections, the 2015 UK Budget has stopped the allowance for wear and tear which stood at 10% and now landlords will not longer be allowed to claim for this relief from April 2016.
“All the above points make it clear that landlords must look to improve their relationships and responsibilities to their buy-to-lets as profits in the industry are set to decrease over the next four years, if the Finance Bill reflects the content of the Budget.”
Imfuna Let can be used on current Apple or Android devices. Embrace the ‘Power of Digital’ in 2015 : Free Trail at www.imfuna.co.uk