It's time to get your house in order

New regulation should be a reminder for all landlords to get organised with their rental properties

Staying on the right side of the law

From the start of October 2018, new occupancy laws dictate that any landlord with a property housing five or more people must have a ‘House in Multiple Occupation’ (HMO) license.

According to our latest research, this means that there’s approximately 77,000 landlords, owning 160,000 properties, that need to get this sorted before the deadline. And with the threat of fines of up £30,000 for those who don’t comply, there’s a strong case for moving as quickly as possible.

So, while many of you may now be about to try and dig out your local housing authority’s phone number, it’s worth taking a moment to consider whether there’s anything more, beyond getting a new license, that you could be doing to ensure you’re getting maximum returns on your rental property.

Shifting expectations

With renting now cheaper than buying in half of the UK’s cities and the millennial generation being the first to be worse off than their parents, Britons are giving up on buying and now expect more than ever from their rental properties. This in turn has a significant impact on landlords, who need to invest to meet these expectations.

And while you might think that it’s that new kitchen, bathroom or BBQ that’s going to swing it when you’re showing round prospective tenants, our research shows that tech is often the deal breaker, especially amongst the student market.

Our study found that a whopping 44 per cent of students are willing to pay more for fibre optic or high-speed internet, while a further 55 per cent said they wouldn’t consider renting a property that didn’t have up-to-date white goods. Meaning it’s more important than ever that you make sure your rental property matches expectation.

What’s more, for landlords who own an HMO, there are a number of items that you must provide in order to compliant with the law, including:

• An oven, grill and four ring cooker, for every five residents
• A standard 119 litre fridge freezer with a freezer compartment for every three residents
• A least four electrical sockets for every five residents, in the kitchen

A smart answer

At this point you might be thinking September is looking like an expensive month, with licenses taking a £495 scalp out of your bank balance, and now new white goods and tech to invest in. However, investing now will pay dividends in the future, as you’ll be able to attract a better tenant, with a bigger budget, if you meet their tech savvy expectations.

For example, tech such as the Hive Active Heating system and the Philips Hue Smart Wireless Dimmer Switch, allow your tenants to control your property’s heating and lighting from their phone. Couple these with a HIVE View Home Security Camera, and they’ll be able to know when they have left the lights and heating on, despite the fact they’re away for the weekend, and turn these things off. It’ll save them money on bills and give them the piece of mind that they need to know their belongings are safe. All of which they’re willing to pay more rent for.

So, if you’re reviewing whether you’re one of the thousands of landlords impacted by the new licensing laws, or if you’re simply looking to make sure you’re getting the greatest yield from your rental property, take a moment to see if your property is really meeting your tenants’ needs. Failure to do so could prove costly.

For information on why you should consider renting out your buy-to-let to students this term, check out our blog

If you’re thinking of taking the plunge and purchasing a buy-to-let, here are our ten top tips to help you get set up

For the latest fridge freezers, ovens and kitchen appliances for your rental property, visit Currys PC World Business.