Latest News

Managing a property portfolio comes with great potential for high returns, but it also brings challenges such as maintenance coordination, tenant management, and financial planning. Portfolio landlords must adopt a strategic approach to ensure their investments are profitable, compliant, and stress-free. This guide explores the key principles of property portfolio management, offering insights on how to maximise rental income, streamline operations, and minimise risks. What is Property Portfolio Management? Property portfolio management refers to the strategic oversight of multiple investment properties. Unlike single-property landlords, portfolio landlords must balance different financial, operational, and regulatory considerations across multiple assets. A well-managed portfolio leads to: Consistent rental income and occupancy rates. Reduced maintenance costs through proactive planning. Legal compliance across all properties. Efficient handling of tenant relations. Key Strategies for Successful Property Portfolio Management 1. Establish a Clear Investment Strategy Before expanding a portfolio, landlords should define their investment goals: Buy-to-let income vs. capital growth – Do you prioritise monthly yield or long-term appreciation? Geographical focus – Concentrate on high-demand areas like Manchester and the Northwest. Property type – Focus on HMOs, single-lets, blocks, or a blend? Having a clear strategy helps landlords make informed purchasing and management decisions. 2. Professional Property Management: When to Delegate Self-managing a large portfolio can be overwhelming. Partnering with a property management company like Northmode Properties allows landlords to: Handle tenant communication, rent collection, and compliance. Reduce void periods with efficient tenant transitions. Access vetted contractors for cost-effective maintenance. A professional team can free up your time while ensuring high occupancy and compliance. 3. Financial Planning and Cash Flow Management Strong financial management is vital. Keep close watch on: Rental Yield & ROI – Make sure income exceeds expenses. Service Charges & Maintenance Budgets – Anticipate ongoing and long-term costs. Refinancing Options – Use equity to fund further growth. Tax Planning – Consider limited company structures to optimise tax. 4. Compliance and Risk Management Managing multiple properties means managing multiple legal obligations. Ensure: EPC and energy efficiency compliance Fire safety and gas certificates Deposit protection schemes HMO licensing (if applicable) Staying compliant protects against penalties, disputes, and reputational harm. 5. Scaling the Portfolio: Growth Strategies Looking to grow? Consider: Targeting high-yield areas and off-market opportunities Using remortgaging to release capital Forming joint ventures for larger deals Diversifying with HMOs, student lets, or mixed-use buildings Why Work with Northmode Properties At Northmode Properties, we specialise in helping portfolio landlords manage, grow, and protect their investments. We offer: Block and property management under one roof Lettings and tenant support tailored for portfolio landlords Maintenance coordination across multiple units Transparent financial reporting and strategic insights Ready to Take Your Portfolio to the Next Level? If you’re a portfolio landlord in Manchester or the Northwest, Northmode Properties is here to help you scale efficiently and sustainably. Contact us today to learn how we can support your growth and streamline your operations.

Understanding the Key Differences and Choosing the Right Solution

As of January 31, 2025, major changes have come into effect under the Leasehold and Freehold Reform Act 2024 (LAFRA), significantly improving the rights of leaseholders. One of the most impactful amendments is the abolition of the two-year qualifying rule, which previously required leaseholders to own their property for at least two years before they could apply to extend their lease or purchase the freehold. What Has Changed? Under the previous system, leaseholders had to wait for two years before they could take action on securing their long-term property interests. This often led to complications, especially for those looking to extend a lease or buy their freehold shortly after purchasing a property. The removal of this restriction provides immediate eligibility for leaseholders to: - Extend their lease without waiting two years. - Purchase the freehold of their property as soon as they take ownership. This reform provides greater flexibility and control over property ownership, enabling leaseholders to make timely decisions that align with their financial and personal circumstances. Why Is This Change Important? The abolition of the two-year rule is a crucial step in modernizing leasehold law and improving homeowners’ rights. Key benefits include: Increased property value – Leaseholders can extend their lease sooner, preventing property depreciation due to a shorter lease term. More certainty for homeowners – Immediate action can be taken to secure long-term ownership. Better financial planning – Leaseholders can manage costs more effectively without delaying essential leasehold improvements. Simplified transactions – Those purchasing leasehold properties can now address lease terms right away, avoiding the risk of additional costs and legal restrictions later on. What Does This Mean for Leaseholders? Although the two-year rule has been removed, the process of extending a lease or purchasing the freehold remains complex. Leaseholders must still follow the legal procedures, negotiate with the freeholder, and meet financial obligations. Key considerations include: Valuation Costs – Determining the premium to be paid for a lease extension or freehold purchase. Legal and Professional Fees – Engaging solicitors and surveyors to manage the process. Leasehold Reform Timelines – Understanding the statutory process for lease extensions and enfranchisement. Given the complexities involved, leaseholders are strongly advised to seek expert legal guidance to navigate the process efficiently and ensure they fully understand the implications. Further Leasehold Reforms to Watch The abolition of the two-year qualifying rule is part of a broader government effort to enhance leaseholder rights and simplify property ownership. Additional reforms under the Leasehold and Freehold Reform Act 2024 include: Potential caps on ground rent charges. Changes to service charge transparency. Improved rights for leaseholders to challenge unfair management fees. Enhancements in collective enfranchisement rights for leaseholders who want to buy their freehold together. Leaseholders are encouraged to stay informed about upcoming changes that may impact their rights and responsibilities in the coming months. How Northmode Properties Can Help At Northmode Properties, we specialise in providing expert guidance on lease extensions, freehold acquisitions, and property management. Our team understands the complexities introduced by these reforms and can offer tailored advice on navigating the new legal landscape. Whether you are looking to extend your lease, purchase your freehold, or understand how these changes affect your property, we are here to help. Get in touch with Northmode Properties today to ensure you are making informed decisions about your leasehold property.

Identifying Mismanagement and Taking Action for a Better Living Environment When you invest in a leasehold property, you expect your building to be well-maintained, safe, and efficiently managed. However, not all block management companies uphold their responsibilities effectively. If you’re experiencing frequent issues with maintenance, poor communication, or rising service charges without improvements, it may be time to assess whether your block is being mismanaged. A well-managed block should provide a clean, secure, and well-maintained environment for its residents. If your property is suffering from ongoing neglect, financial mismanagement, or unresponsive management, these could be warning signs that your block is not being run efficiently. Common Signs of Poor Block Management 1. Service Charges Keep Increasing Without Improvements Service charges are a necessary part of maintaining shared spaces and services within a residential block. However, if your charges are continually rising without any noticeable improvements to the building, this could indicate financial mismanagement. Residents should expect transparency in how their fees are allocated, including: Clear breakdowns of maintenance costs. Justifications for any increases. Evidence of value for money in service contracts. If you’re paying more but seeing little return, it could be a sign of inefficient spending or poor financial oversight. 2. Delayed or Ignored Repairs A well-managed block ensures that maintenance issues are resolved promptly. If you find yourself reporting the same issue multiple times without resolution, this points to a lack of proactive management. Common signs include: Leaks or damp issues left unresolved. Persistent electrical faults in communal areas. Unrepaired security features, such as broken gates or intercom systems. Delays in essential maintenance can lead to larger, costlier repairs over time and significantly impact residents’ quality of life. 3. Poor Communication and Lack of Transparency One of the biggest frustrations for residents in a poorly managed block is the lack of communication from the management company. If you experience: Long response times to emails or calls. Unclear information about scheduled maintenance or upcoming costs. A lack of engagement with residents regarding key decisions. ...then your management company may not be fulfilling its duty to keep leaseholders informed and involved. 4. Persistent Issues with Shared Facilities A well-maintained block should ensure that shared facilities remain in working order. If you consistently experience issues such as: Non-functioning lifts. Faulty or broken door entry systems. Poorly maintained communal areas. ...it suggests that the management team is either neglecting maintenance or failing to allocate resources effectively. This can pose safety risks to residents and reduce the overall value of the property. 5. Unclear or Unjustified Service Charge Spending Do you know where your service charge money is going? If financial reports are vague, or you’re being charged for services that don’t seem to be provided, this could be a red flag. Transparent financial reporting should include: An annual breakdown of service charge spending. Competitive quotes for maintenance and repairs. Justification for any unexpected costs. If your management company is unwilling to provide this information, it may indicate inefficiency or poor financial planning. 6. Poorly Maintained Communal Spaces The condition of communal areas is often a clear indicator of how well a building is managed. Warning signs include: Dirty or uncleaned hallways and stairwells. Overgrown gardens and unmaintained landscaping. Overflowing bin stores and poor waste management. Neglected communal spaces not only reduce the appeal of the building but can also lead to health and safety hazards. 7. Security Concerns and Safety Issues Your property management company has a duty to ensure the safety of residents. If you notice: Faulty security doors or broken entry systems. Poor lighting in corridors, stairwells, or car parks. A lack of fire safety measures, such as outdated extinguishers or missing fire risk assessments. ...it could mean that your building is not being properly managed in accordance with safety regulations. The Impact of Poor Block Management Neglecting property management responsibilities affects everyone in the building. When management companies fail to uphold their obligations, it can lead to: Increased costs due to long-term neglect and major repairs. Declining property values due to poor upkeep and dissatisfaction among residents. Unnecessary stress for leaseholders dealing with unresolved issues. What Can You Do If Your Block is Poorly Managed? If you recognise these issues in your building, it’s important to take action. Here’s how you can address mismanagement: Raise Concerns with the Management Company Communicate issues formally and request a timeline for resolution. Ask for financial transparency and justification for service charges. Check Your Lease Agreement Understand the terms relating to management responsibilities. Verify whether leaseholders have any rights to challenge poor management. Engage with Other Leaseholders Gather support from fellow residents to collectively raise concerns. Consider forming a Residents’ Management Company (RMC) if applicable. Consider a Right to Manage (RTM) Application- Leaseholders may have the legal right to take over management duties from the existing agent. This can be an effective way to regain control over service charge spending and building maintenance. Switch to a More Reliable Block Management Company - If the current management company is failing in its responsibilities, leaseholders can seek alternative professional management. A reputable company will prioritise maintenance, financial transparency, and resident communication. How Northmode Properties Can Help? At Northmode Properties, we specialise in professional block management across Manchester and the Northwest, providing expert maintenance, financial transparency, and proactive property care. We have successfully taken over mismanaged buildings and transformed them into well-maintained, efficiently run properties. Our services include: Clear and transparent financial reporting so leaseholders know where their money is going. Regular maintenance and inspections to ensure high standards are maintained. Responsive communication with leaseholders, addressing concerns promptly. Strategic cost management to keep service charges fair and justified. If you believe your block is being neglected, it doesn’t have to stay that way. Get in touch with us today to discuss how we can help improve your building’s management and ensure it runs smoothly and efficiently. T: 0161 676 0084

Managing a residential property requires expertise, organization, and a keen eye for detail. Property owners often find that maintaining and managing their buildings can be time-consuming and complex. This is where a residential property manager becomes invaluable. A skilled property manager ensures that a building is well-maintained, financially sound, and legally compliant. This article explores the key responsibilities of a residential property manager and how working with a professional property management company like Northmode Properties can benefit landlords and residents alike. Core Responsibilities of a Residential Property Manager A residential property manager is responsible for overseeing the daily operations of a property on behalf of the owner or the Residents’ Management Company (RMC). Their duties include financial oversight, property maintenance, tenant relations, and legal compliance. These key responsibilities fall under four main categories: 1. Property Management & Operations Effective property management requires strong administrative and operational skills to ensure the smooth running of a residential block. A property manager's tasks may include: Handling tenant and leaseholder queries. Advising on lease terms, covenant issues, and breaches. Coordinating with contractors for necessary works and services. Managing service contracts and scheduling regular site inspections. Acting as the point of contact between property owners, leaseholders, and service providers. By ensuring efficient day-to-day operations, a property manager plays a critical role in maintaining high living standards for residents. 2. Maintenance & Repairs Keeping a property in top condition is essential for long-term value and tenant satisfaction. A residential property manager oversees: Routine property inspections to identify maintenance needs. Coordination of emergency repairs, such as plumbing and electrical issues. Management of external and internal property upkeep, including landscaping and window cleaning. Arranging quotations and appointing contractors for maintenance and refurbishments. With regular property assessments and proactive maintenance, potential issues are addressed before they escalate into costly repairs. 3. Financial Management One of the key responsibilities of a residential property manager is ensuring financial stability. This includes: Collecting service charges and ground rents in a timely manner. Preparing and managing maintenance budgets. Providing transparent financial reporting to property owners and RMCs. Handling arrears and taking necessary action to recover unpaid charges. Coordinating with accountants and auditors for financial reviews. Accurate financial management ensures that funds are available for necessary repairs and improvements, maintaining the long-term viability of the property. 4. Legal & Compliance Oversight Navigating property laws and regulations is a crucial part of property management. A property manager ensures that a building adheres to all legal requirements, including: Health & safety compliance, including fire risk assessments. Understanding and implementing leaseholder rights under the Commonhold and Leasehold Reform Act 2002. Issuing legally required notices for service charge and ground rent payments. Overseeing licenses, consents, and regulatory obligations related to property modifications and access rights. By keeping up with legal changes and ensuring compliance, property managers help landlords avoid potential legal risks and penalties. What Does a Residential Property Manager Do? A property manager takes on the daily management of a residential property, relieving landlords of operational burdens. Their role includes: Maintaining the property to high standards. Managing financial responsibilities efficiently. Handling leaseholder and tenant concerns professionally. Ensuring legal and regulatory compliance. Overseeing insurance policies, including buildings and public liability insurance. With their expertise, property managers provide property owners with peace of mind, knowing their investments are in safe hands. Why Choose a Professional Property Management Company? A professional property management company removes the hassle of day-to-day management while ensuring that the property remains in optimal condition. The benefits of hiring a reputable management firm like Northmode Properties include: Access to experienced professionals who understand the local market. Efficient maintenance and repairs, reducing long-term costs. Reliable financial management and transparent reporting. Expert legal knowledge to keep properties fully compliant. For landlords, leaseholders, and RMCs in Manchester and the Northwest, Northmode Properties offers comprehensive property management services tailored to your needs. Get in touch today to learn more about how we can help you manage your residential property effectively.

Block property management involves overseeing and maintaining residential buildings, primarily apartment complexes and flats, to ensure they are well-maintained, legally compliant, and efficiently run. In England and Wales, the responsibility for block management typically falls to one of four parties: Landlord or Freeholder – The owner of the building retains responsibility. Residents’ Management Company (RMC) – A company formed by leaseholders to manage the property. Right to Manage (RTM) Company – Leaseholders take over management responsibilities through a legal process. Named Manager in the Lease – A designated individual or company named within the lease agreement to handle management duties. What Does Block Property Management Include? The scope of block management can vary depending on the specific property, but typically covers: Cleaning and maintenance of communal areas External cleaning and upkeep Gardening, landscaping, and tree care Emergency repairs (plumbing, electrical, etc.) Facilities management (fire alarms, door entry systems, vehicle gates, lifts, etc.) Roof repairs and maintenance Internal and external painting and decorating As part of our service, we coordinate with independent contractors, securing competitive quotes for cleaning, landscaping, and other maintenance services. Regular site inspections are conducted to ensure the property remains in good condition and that completed works meet the required standards. Legal Aspects of Block Property Management Managing a residential block requires strict adherence to leasehold legislation, ensuring compliance with multiple legal requirements. Failure to meet these obligations can result in serious consequences, including legal action or penalties. Some key legal responsibilities include: Health & Safety Compliance A block manager must ensure the safety of leaseholders and visitors, meeting all health and safety regulations. Fire safety, risk assessments, and remedial actions must be taken to mitigate potential hazards. Leaseholder Rights Under the Commonhold and Leasehold Reform Act 2002 This law grants leaseholders specific rights, including: The Right to Manage (RTM) – Leaseholders can take over the management of a block. Transparency in Service Charges – Landlords and managers must provide a clear breakdown of service charge payments. Ground Rent Notices – Tenants must receive notice before being asked to pay ground rent, and failure to provide proper notification means the charge may not be legally enforceable. Additional Legal Considerations Beyond leasehold legislation, property managers should also be knowledgeable about rental agreements, lease structures, and general residential property law. While not legally required, adhering to industry best practices and codes of conduct can help protect both landlords and leaseholders. The Leasehold Advisory Service provides impartial guidance on block property management for landlords and tenants alike. Why Use a Professional Block Management Company? Hiring a specialist block management company removes the burden of day-to-day property oversight from landlords, ensuring efficient operations and legal compliance. A professional management company also acts as a neutral third party, helping to facilitate clear communication between landlords, leaseholders, and tenants. At Northmode Properties, we offer a comprehensive block management service across Manchester and the Northwest, handling property maintenance, service charge and ground rent collection, and ensuring legal compliance for your development. If you’re looking for a reliable and professional approach to managing your block, get in touch with us today to see how we can assist you.

Despite government pledges to accelerate housebuilding, supply shortages remain a critical issue. Addressing the housing deficit will take years, maintaining strong demand for rental properties. “There are some market fundamentals that are simply unshakeable, including supply-side shortages,” Cox stated, emphasizing the long-term stability of the rental market. Affordability Challenges for First-Time Buyers Even with recent interest rate reductions, many aspiring homeowners are struggling to save for a deposit due to the ongoing cost-of-living crisis. As a result, renting remains the most viable option for a large segment of the population, further supporting the BTL sector. A More Professional Buy-to-Let Market The BTL landscape has evolved significantly in response to regulatory changes, pushing landlords to adopt a more professional approach. Additionally, mortgage options for landlords have diversified, creating a more complex but opportunity-rich environment. Given this increasing complexity, Cox advises landlords—whether new or experienced—to seek guidance from professional mortgage advisers to navigate the evolving market and secure the best deals. Thinking of Investing in Buy-to-Let? Whether you’re looking to expand your existing property portfolio or exploring buy-to-let for the first time, now is an opportune moment to enter the market. If you’d like expert advice on local rental trends, market conditions, or financing options, get in touch with Northmode Properties today. We can provide the insights and support you need to make informed investment decisions.

Renters' Rights Bill: Tenancy reform The Renters' Rights Bill introduces significant changes to tenancy laws, including the abolition of “fixed term” Assured Shorthold Tenancies. This marks a move toward what the Government describes as a “transformative new tenancy system,” providing tenants with greater protection and flexibility. Key Changes Under the Bill: No Fixed Terms: Tenancies will no longer have a set end date. Instead, tenants will enter a “protected period” of 12 months at the start of their tenancy. During this time, landlords cannot serve notice to reclaim the property for reasons such as selling or moving back in. Applies to All Tenancies: The new system will apply to both existing and new tenancies. Fixed-term agreements will convert to periodic tenancies under the new rules. Eviction Changes: Landlords will no longer be able to issue Section 21 or traditional Section 8 notices. Additional Measures in the Renters' Rights Bill: Abolition of Section 21 Notices: “No fault” evictions will no longer be allowed. Tenant Notice Periods: Tenants can end a tenancy with two months’ notice. Landlord Notice Restrictions: Landlords wishing to sell, move in, or move family into a property must wait 12 months from the start of the tenancy and provide four months’ notice. Rent Arrears Grounds: Grounds for possession require three months of arrears. No Blanket Bans: Landlords cannot prohibit tenants based on having children or receiving benefits. Pets Allowed: Tenants have the right to keep pets, with landlords allowed to request appropriate insurance. National Landlord Database: All landlords must register on a new database. Decent Homes Standard: All rental properties must meet this standard. Health and Safety Enforcement: Awaab’s Law introduces strict timescales for addressing health risks. Stronger Local Authority Powers: Increased penalties and enforcement capabilities for local authorities. No Competitive Bidding: Bidding wars for rental properties will be outlawed. Rent Restrictions: Rent increases are limited to one per year, capped at market rates or lower, with two months’ notice required. New Ombudsman Service: A dedicated ombudsman will handle disputes to reduce reliance on courts. Free Compliance Consultation for Landlords To help landlords navigate these changes, we are offering a free, no-obligation compliance consultation. We will assess your current practices, identify any gaps, and assist with an action plan to ensure you are fully compliant and protected against penalties. To book your consultation, call us today on 0161 676 0084 or complete our contact form.

Understanding Awaab’s Law: A Detailed Guide for Landlords With the introduction of Awaab's Law as part of the Renters' Reform Bill, landlords are now legally obligated to swiftly address damp and mould issues reported by tenants. The law, named after Awaab Ishak, who tragically died due to prolonged exposure to mould, aims to protect tenant health and improve living conditions by holding landlords accountable for timely responses to these issues. What Is Awaab’s Law? Awaab’s Law ensures that landlords must resolve damp and mould problems within a legally mandated timeframe. This legislative action came about in response to the death of Awaab Ishak, a young child whose health deteriorated due to prolonged exposure to mould in poorly maintained social housing. The law underscores the need for landlords to take tenant complaints seriously, act promptly, and prevent potential health hazards, or risk legal penalties and sanctions. The Importance of Proactive Property Management Landlords must be proactive in managing their properties to stay compliant with Awaab’s Law. Regular property inspections and a detailed inventory are key. This not only ensures that issues such as damp, inadequate ventilation, or potential mould growth are identified early but also provides documented evidence that the landlord is addressing potential problems. Proactive maintenance and regular checks are essential, especially in regions prone to damp issues, such as Manchester and other parts of the North West. Best Practices for Compliance To meet the obligations of Awaab’s Law, landlords can implement the following best practices: Regular Property Inspections: Conduct thorough inspections, particularly before and after the winter months, to identify any potential damp issues that could escalate during colder periods. Comprehensive Documentation: Maintain detailed reports, using property management services to document all aspects of the property’s condition, especially related to damp and mould. Swift Action on Complaints: Act immediately when tenants raise concerns about mould or damp. Quick, effective responses can prevent the situation from worsening and mitigate any legal risks. The Role of Professional Property Management Utilising a professional property management service can assist landlords in staying compliant with Awaab’s Law. Property management firms offer detailed property reports, including mid-term inspections that focus on identifying early signs of damp. These inspections also provide an opportunity to assess other potential risks and ensure the property remains in good condition. This level of detail can help landlords demonstrate their commitment to resolving issues and maintaining safe, healthy living conditions for tenants. Adapting to Awaab’s Law: How Northmode Properties Can Help At Northmode Properties, we understand the challenges landlords face in staying compliant with evolving regulations. We offer tailored property management services to help landlords navigate the complexities of Awaab’s Law. Our team provides comprehensive property reports, regular inspections, and swift responses to tenant concerns, ensuring that landlords meet their legal obligations while protecting both their properties and tenants. With extensive knowledge of the North West housing market, including key cities like Manchester, we are well-positioned to help you safeguard your investments and ensure compliance with these new regulations. Make sure to follow us to stay updated on the latest property management trends, regulatory changes, and how Northmode can support you in ensuring your properties meet the highest standards of safety and compliance.

Effective property management, especially in winter, requires thorough preparation to avoid costly repairs and maintain tenant satisfaction. Here's a more in-depth guide for landlords: 1. Heating Systems & Boilers Ensuring your property's heating systems are functioning properly is essential. Regular boiler servicing should be carried out by a qualified engineer, as this prevents breakdowns and ensures efficiency. Checking thermostats early in the season is important to avoid issues when temperatures drop. Encouraging tenants to test the system early helps identify problems sooner. 2. Insulation & Draught Proofing Proper insulation is critical in reducing heat loss and energy consumption. Inspect lofts and walls to confirm they’re adequately insulated. Also, address any draughts around doors and windows using draught excluders or weatherstripping. These steps can significantly reduce heating costs and make your property more energy-efficient. 3. Roof & Gutter Maintenance Heavy rainfall, snow, and ice can place a strain on roofs and gutters. It’s important to inspect roofs for loose or missing tiles that could lead to leaks during winter storms. Clearing gutters of leaves and debris prevents water from seeping into walls and foundations, which could cause significant structural damage. 4. Pipe Insulation Frozen pipes are a common issue in winter and can result in costly repairs. Insulate exposed pipes in unheated areas like basements, attics, or garages. Additionally, advise tenants to leave the heating on at a low level during extended absences to prevent pipes from freezing. 5. Smoke & Carbon Monoxide Alarms With heating systems and fireplaces in greater use, the risk of fire and carbon monoxide (CO) poisoning increases during the winter. Ensure all smoke and CO alarms are tested and functioning. It’s crucial to replace batteries and provide tenants with clear instructions on how to maintain these devices for safety. 6. Ventilation & Condensation Control As windows stay closed to keep the property warm, the risk of condensation increases, which can lead to dampness and mold growth. Encourage tenants to ventilate regularly by opening windows briefly or using extractor fans, particularly in kitchens and bathrooms. Installing extractor fans can help to maintain air quality and reduce the risk of damp issues. 7. Emergency Contact Information Landlords should provide tenants with clear instructions on who to contact in the event of emergencies such as a burst pipe or boiler failure. Prompt action can reduce potential damage to the property and maintain tenant satisfaction. Conclusion Winter property management requires proactive steps to ensure heating, insulation, and safety systems are fully operational. By conducting these essential checks and fostering open communication with tenants, you can avoid costly repairs and maintain a positive landlord-tenant relationship throughout the season. For expert assistance in property management across Manchester, Liverpool, and the Northwest, reach out to Northmode Properties to see how we can help you prepare your property for the winter months. Stay updated on property tips and market trends by following us on social media or visiting our website. www.northmodeproperties.co.uk

Although the economy has found a more stable footing, boosting consumer confidence in the housing market, significant challenges lie ahead. Base rates are just starting to improve, and the government’s goal of building nearly 2 million homes in the next five years demands a significant upscaling of the workforce. A long-standing shortage of available properties continues to impact both sales values and rental prices across many regions, including the Northwest. In the coming years, the housing sector will undergo a major transformation driven by evolving regulations on planning, safety, and sustainability, as well as new legislation like the Renters’ Rights Bill. It's crucial that these changes balance the needs of residents and investors, ensuring housing remains accessible. Stay updated by following Northmode Properties, where we share regular insights into the housing market.

The anticipated removal of Section 21 has sparked considerable concern among landlords, especially regarding their ability to manage properties effectively. Without the option to evict tenants easily, many landlords worry about their options if a tenant damages the property or fails to pay rent. In this article, we’ll explore what this legislative change means for landlords and how it may impact the lettings market. Fortunately, insights from the recent English Housing Survey, published on July 18, 2024, should help ease these worries. The data reveals that Section 21 evictions are actually quite rare in today’s market. In fact, 63% of private renters who moved in the last year did so on their own terms. Common reasons for these voluntary moves include job changes, the need for a larger home, or relocating to a different area. Evictions made up only 9% of tenant relocations, with most driven by landlords looking to sell their property or move in themselves. Among the few tenants who were evicted, more than half were asked to leave informally, 37% received a Section 21 notice (which allows landlords to evict tenants after a fixed-term tenancy ends or during a tenancy with no fixed end date, without needing to provide a reason), and just 2% were served a Section 8 notice (which is used if a tenant has violated the terms of their tenancy). These figures should offer some reassurance to landlords. Most tenancies come to an end at the tenant's discretion, and even in cases of eviction, it’s often because the landlord has a genuine need to reclaim the property. The use of Section 21 notices remains relatively low. A positive example of this system can be found in Scotland, where Section 21 was abolished several years ago, and the market has adjusted well since. Kevin Fraser, Director of Property Management for our Scottish brand, DJ Alexander, shared his perspective: “Since the ‘no fault’ eviction ban was implemented in Scotland back in 2017, we've seen the market adapt smoothly, with minimal impact on our clients. The new legislation provided sufficient alternative grounds for issuing notices to tenants, which we've utilized when landlords need to regain possession. Most landlords tend to issue notices when tenants stop paying rent, or when they want to sell or renovate their property. These reasons can still be used instead of Section 21, so the removal of this provision in England shouldn’t cause major concern for those in the sector.” For landlords who remain apprehensive about this change, an additional safety net is available: rent and legal protection insurance. This affordable insurance, costing around £1 a day (or a percentage of the rent in some cases), provides peace of mind by protecting against potential damages and rent arrears, thus safeguarding the security and profitability of your investment. You can learn more about Rent and Legal Protection here. While the abolition of Section 21 may seem intimidating, the reality is that most tenancies conclude without issues. As evidenced in Scotland, having the right alternative grounds for issuing notices continues to work effectively. With the proper protections in place, landlords can manage their properties with confidence and ease.

At Northmode Properties, we're proud to be part of the Northwest community, managing properties and blocks in vibrant areas like Manchester, Salford, Didsbury, Stockport, Bolton, and Bury. Our solid reputation comes from our passion for property management and lettings. We genuinely love this region and care deeply about the people in it. Over the years, we’ve built strong relationships with local contacts, which helps us understand the property market in a way that’s personal and relatable. We're here to support our community and make property management a positive experience for everyone involved. What is Block Management? Block management involves overseeing and maintaining residential buildings with multiple units, such as apartment complexes or housing developments. Typically, these properties are leasehold arrangements, where residents have the right to occupy a unit for a specified period but don’t own the land it sits on. Leaseholders are often represented by Residents’ Management Companies (RMCs), while block management companies work with RMCs or on behalf of freeholders. Block management includes a range of services outlined in the lease, such as: Scheduling and completing maintenance and repairs, including painting, decorating, and gardening. Collecting service charges and ground rent from residents. Arranging necessary insurance coverage. Ensuring contracts for services (like cleaning and maintenance) offer good value. Preparing and reviewing annual budgets. Conducting routine inspections to keep the property in good shape. Advising unit owners on leases and relevant legislation. Acting as a neutral party for dispute resolution when needed. Complying with legal and safety regulations and staying updated on legislation. A block management company requires a diverse skill set, including knowledge of health and safety, law, accounting, insurance, and construction. The monthly fee varies based on the number of units, responsibilities, and property location. What Northmode Properties Offers Northmode Properties delivers a comprehensive range of block management services, covering properties with as few as two units to those with up to 120 across the Northwest. We proudly manage and cater to investment landlords, RMCs, and right-to-manage companies, which empower leaseholders to take control of their building’s management. For RMC and RTM clients, we also provide an additional service where we act as your Company Secretary. Client Fund Protection and Professional Standards At Northmode Properties, your financial security is our priority. As a proud member of Client Money Protection (CMP), we protect our clients against the loss or misuse of funds, including rent and deposits held by letting agents. In the unlikely event that client money is lost or misappropriated, CMP ensures that you can recover the full amount. We safeguard client funds in dedicated, secure accounts, providing you with peace of mind. As an accredited member of The Property Institute (TPI), the leading professional body for residential managing agents in England and Wales, we uphold the highest standards of leasehold management. TPI promotes excellence in the industry through expert advice, training, and ongoing guidance, ensuring professionalism and best practices across all aspects of property management. Why Choose Northmode Properties? Local Expertise: We know the Northwest property market inside and out, allowing us to foster strong communities and deliver value for our clients. Clear Communication: We prioritise open communication through various channels, including email updates, newsletters, and residents’ meetings, keeping everyone informed about decisions affecting their homes. Personal Touch: We prioritise accessibility, ensuring our clients’ needs are met and the safety and well-being of residents are always front of mind. You’ll have a dedicated property manager and assistant property manager, along with support from a skilled and responsive team, including an emergency out-of-hours contact. Industry Affiliations: We take pride in our connections with key industry bodies like The Property Institute and The Property Redress Scheme. These affiliations signify our commitment to upholding the highest standards in property management and continuous professional development. Accountability and Compliance: We adhere to strict ethical codes and best practices, ensuring we are accountable to our clients and industry regulators. Our comprehensive professional indemnity insurance offers added protection for your peace of mind. Community Commitment: We are deeply rooted in the Northwest and are dedicated to giving back to the community through various local initiatives. Northmode Properties Says At Northmode, our focus is on building strong communities while providing exceptional value for our clients. If you’re a current RMC director or property manager, you know how demanding block management can be—it can quickly become overwhelming. Let us handle every aspect of your block management, allowing you to focus on other priorities. We are a trusted, local team with extensive experience, always placing residents’ safety and well-being at the heart of our operations. Whether you're a landlord seeking reliable property management or a leaseholder in need of a trustworthy block manager, choosing an accredited agent like Northmode Properties means choosing a partner dedicated to your success and peace of mind. Discover more about our outstanding service. Get in touch today and chat with a member of our friendly, professional team. T: 0161 676 0084 E: info@northmodeproperties.co.uk

The first reading of the Renters Rights Bill in the House of Commons has provided us with valuable insight into the Government's plans to reform our sector. While we await more details as the bill progresses through Parliament, our Lettings Specialists and expert teams are fully prepared for these changes and are ready to support you every step of the way. Most of the bill aligns with the previous proposals, and we’ve highlighted the key points for you: Ban on Section 21 Notices: Once the bill becomes law, Section 21 notices will be banned. Landlords can still regain possession using Section 8 grounds for specific reasons, such as wanting to sell the property or move back in. A notice period of four months will be required after the first year of tenancy. Government Support: Matthew Pennycook has assured us that the Government will collaborate with the courts to ensure they can handle the additional workload when the bill is enacted. Tenancy Changes: Fixed-term tenancies will transition to periodic or month-to-month agreements. Tenants will have the flexibility to give two months’ notice to end their tenancy from day one. However, it's worth noting that the average tenancy length in the UK is currently 20 months, driven by tenant preferences, so we don’t expect to see a significant increase in shorter tenancies. Rent Increases: Rent can still be increased annually with a two-month notice period, using the existing Section 13 notice. Tenants will have the right to challenge the initial rent within six months of starting the tenancy or any proposed rent increase by taking it to a tribunal, which will decide based on current market rates. Pet Policy: As before, landlords cannot unreasonably refuse consent for tenants to have pets. A valid reason for refusal could include breaching the head lease of a leasehold building. Additionally, landlords may charge extra premiums to cover potential pet damage. Ombudsman Membership: The requirement for landlords to belong to an Ombudsman scheme remains in place, and properties must be registered with this membership before being marketed for let. Bidding Wars: New provisions will prohibit bidding wars, meaning that rents must be clearly specified in advertisements, and landlords cannot accept offers above that amount. We believe that once all the details of the bill are finalized, the market will adapt and continue to thrive, just as it has following previous legislative changes. In the meantime, if you have any questions or concerns, please feel free to reach out to us.

As a UK property owner, effective block management is crucial. While navigating residential property administration can be challenging, the right guidance helps maintain your investment and keep tenants satisfied. This guide offers essential insights and strategies to enhance your property’s performance, equipping both experienced landlords and new owners with the tools to make informed decisions and maximise their assets. Block Management in the UK: An Overview Block management is a vital part of property management services in the UK, particularly for owners of multi-unit residential buildings. This specialised approach to estate management involves handling the daily operations, maintenance, and finances of apartment complexes or housing estates. Key Responsibilities Property management in Greater Manchester and throughout the UK generally includes: Keeping common areas and building exteriors in great shape Coordinating repairs and renovations Managing service contracts (like cleaning and landscaping) Collecting service charges and ground rent Ensuring compliance with health and safety regulations Benefits for Property Owners Effective block management can significantly boost the value and attractiveness of your property. It ensures that shared spaces are well-maintained, financial matters are handled professionally, and potential issues are addressed swiftly. This comprehensive approach not only protects your investment but also fosters a harmonious living environment for all residents. Choosing the Right Block Management Company in the UK When selecting a block management company, it's crucial to consider how they can help maintain your property’s value and ensure tenant satisfaction. Here are some key factors to keep in mind: Experience and Expertise Look for a company with a solid track record in block management. Experienced firms understand the nuances of managing various property types, from historic buildings to contemporary developments. Accreditation and Compliance Choose a property management service that is accredited by respected associations. This ensures adherence to industry standards and best practices, safeguarding your investment. Tailored Services Every property is unique. Seek a company that offers customized property management services capable of adapting to your specific needs. Communication and Transparency Clear communication is key to effective block management. Opt for a company that prioritizes transparency and keeps you updated on your property’s management. By carefully assessing these factors, you can find a block management company in Yorkshire or anywhere in the UK that aligns with your property goals and enhances your investment’s value. Frequently Asked Questions About Block Management in the UK What is Block Management? Block management refers to the professional oversight of residential buildings, usually apartment complexes or estates. This all-encompassing property management service ensures the smooth operation of shared spaces, the upkeep of common areas, and compliance with legal requirements. In regions like Yorkshire, property management involves coordinating repairs, managing finances, and liaising with residents to maintain a pleasant living environment. Why is Estate Management Important? Estate management plays a crucial role in preserving property values and improving residents’ quality of life. Professional property management services handle various tasks, including: Regular maintenance and repairs Financial management of service charges Enforcing lease terms Compliance with health and safety regulations By entrusting these responsibilities to experienced managers, property owners can protect their investments while ensuring residents enjoy a well-maintained living space. Conclusion Choosing the right block management company is essential for safeguarding your investment and ensuring a smooth, hassle-free experience. Northmode Properties stands out as a trusted partner, offering transparent, professional services tailored to your unique needs. With their extensive experience, accreditations, and commitment to excellence, you can be confident that your property is in good hands. By partnering with Northmode Properties for your block management needs, you’re gaining a dedicated ally in property management. Don’t settle for less – contact Valor Properties today and experience the difference that true expertise and customer-focused service can make for your property. We offer a free initial consultation for all new clients, so if you're exploring your options please don't hesitate to call us at 0161 676 0084 or drop us an email at info@northmodeproperties.co.uk and a member of our team will be happy to assist you.

I s It a Good Time to Become a Landlord? It’s an excellent time to become a landlord, particularly in the Northwest of England. There are several factors to consider. The first is the significant demand for rental properties in the area. If you own a property that you’re able to let out, you’ll find a large pool of tenants eager to rent, making your property highly desirable. This demand typically translates into a strong return on your investment. What Are the Most Common Mistakes First-Time Landlords Make? The most common mistake new landlords make is assuming they can manage the property themselves simply because it’s in good condition. They might underestimate the responsibilities they have and the expectations of their tenants. What Should First-Time Landlords Consider Before Searching for a Tenant? The first consideration is whether you have the time, knowledge, and expertise to manage the property. Another key factor is understanding that there are over 150 pieces of compliance legislation that govern the industry. The health and safety of your tenant and the tenancy are crucial. Are you familiar with all the necessary certifications? Do you understand the implications if your property is in a licensed area? Do you have the time and know-how to handle maintenance issues promptly? Meeting tenant expectations, especially in terms of response times, is essential. What Factors Should First-Time Landlords Prioritise When Setting a Rental Price? We always advise landlords to consider more than just the rental price when setting it. There are four key factors: Price: The obvious first consideration. Timing: When the tenant moves in versus when the property is available, as vacancy periods can be costly. Tenant Quality: Consider the type of tenant—whether they are a family, professionals, or sharers, as this can impact the number of applicants. Duration and Conditions: A tenant willing to move in quickly and sign a long-term contract may be more valuable than someone who offers more rent but has conditions or delays. Where Can First-Time Landlords Find Information and Resources? While a quick online search can provide some basic information, such as the “How to Rent” guide, which explains the obligations of both landlords and tenants, first-time landlords shouldn’t rely solely on Google. There are trade bodies like the NRLA and ARLA that offer valuable resources. However, managing a property effectively requires expertise that can only be gained through experience and in-depth knowledge. A qualified estate agent can help protect your investment, ensure tenant safety, and manage the tenancy from start to finish. How Does Northmode Properties Cater to Tech-Savvy First-Time Landlords? For years, Northmode Properties has been at the forefront of the property market, and we’ve embraced technology to enhance our services. We can find tenants quickly, sometimes in just a few hours, and offer a platform where landlords and tenants can manage the entire process digitally if they prefer. How Can a First-Time Landlord Attract a High-Quality Tenant? To attract high-quality tenants, we have three tips: Use a Reputable Agent: A good agent will attract the right tenants and screen them thoroughly. Presentation Matters: Ensure your property looks immaculate. A well-presented property is more likely to appeal to quality tenants. Be a Good Landlord: Respond quickly to any issues. While using an agent can help with this, if you choose to manage it yourself, you must be proactive and responsive. How Can I Screen Potential Tenants to Find Someone Reliable? The best way to screen tenants is through a third-party referencing company. At Northmode Properties, we use one of the leading referencing companies in the UK. Their advanced technology helps detect forged references, ensuring that we only approve reliable tenants. This approach has helped us maintain low arrears rates. What Tips Do You Have Regarding Communication with Tenants? FG: Effective communication is often overlooked by landlords. The key is responsiveness—addressing issues quickly is crucial. At Northmode Properties, we use advanced technology to track response times and resolve issues efficiently. It’s also important to be knowledgeable about your obligations as a landlord, so you can handle tenant queries appropriately. What Are the Essential Elements to Include in a Tenancy Agreement? Our advice is simple: don’t attempt to draft or modify a tenancy agreement yourself. Legislation changes frequently, and tenancy agreements need to reflect these changes. At Northmode Properties, we update our agreements multiple times a year based on new legislation and our experiences, ensuring landlords are fully protected. How Can I Prepare for and Handle Maintenance in a New Tenancy? Prevention is better than cure. Before moving a tenant in, conduct a thorough health and safety check of the property. Ensure everything is in good condition, from the sealant around baths to the boiler servicing. Compliance is key, especially if the property is an HMO. At Northmode Properties, we have a comprehensive move-in and compliance checklist that we audit before allowing any tenant to move in. How Can First-Time Landlords Keep on Top of Legislation and Licensing? The only reliable way for first-time landlords to stay on top of legislation and licensing is to work with a high-quality estate agent. The regulations are complex and constantly changing. When you receive a license, you must thoroughly understand and comply with all conditions. Local councils can conduct spot checks, and non-compliance can lead to hefty fines or even criminal charges. It’s crucial to be fully prepared and knowledgeable! If you have any questions or need further advice on service charges or any other property management matters, feel free to get in touch—we're happy to help.

Leaseholders often feel disconnected from the management and finances of their building, particularly when a third-party investor with no real connection to the property handles these responsibilities, focusing primarily on collecting payments from flat owners. While many freeholders manage their buildings and financial budgets effectively, there are instances where leaseholders find themselves dissatisfied with the level of management provided. How to Take Over the Management of a Block of Flats Disgruntled leaseholders have a few options: Enfranchisement: Force the freeholder to sell the freehold through a process known as enfranchisement. Right to Manage (RTM): Take over the management of the building from the freeholder. Enforcement Action: Seek legal action to compel the freeholder to address specific issues. However, this doesn’t prevent similar problems in the future. How Does Enfranchisement Work? Enfranchisement allows at least 50% of the flats in a building to join forces and compel the freeholder to sell the freehold to them. This process not only enhances the value of the flats but also gives owners control over the building’s management and finances. Additionally, once the freehold is acquired, flat owners can extend their leases, further increasing the value of their properties. The cost of purchasing the freehold is determined by enfranchisement legislation. At Northmode Properties, we can connect you with a specialist valuer to estimate the likely cost of acquiring your freehold. It's important to note that flat owners are responsible for covering the professional costs of both the freeholder and their own. How Does Right to Manage Work? Alternatively, flat owners can band together to take over the management functions of their building from the freeholder, provided at least 50% of the flats are on board. This process allows leaseholders to control the service charge budget, maintenance contracts, building insurance, and other management responsibilities outlined in the flat leases. While the flat leases remain unchanged and the freeholder retains ownership of the freehold (and may even become a member of the RTM group), leaseholders gain significantly more control over the management of their building. Unlike enfranchisement, there is no purchase price for the RTM process. However, leaseholders are still responsible for the professional costs incurred by both the freeholder and themselves. How Does Enforcement Action Work? Our Dispute Resolution Team can assist with resolving service charge disputes and other issues between leaseholders and freeholders. The relationship between freeholders and leaseholders is typically governed by the flat lease but is also subject to additional legal regulations. Depending on the situation, legal applications to the Court or Tribunal may be necessary. Points to Consider Both enfranchisement and RTM have specific criteria that must be met, and there are additional considerations for enforcement actions. In rare cases, enfranchisement does not necessarily result in leaseholders taking over management of the building. We can provide estimates of the costs involved in any of these scenarios so that you and your neighbors can plan accordingly. Specialist Leasehold Property Advisors Our experienced team at Northmode Properties specialises in Right to Manage, Enfranchisement, and enforcement action procedures from start to finish. We offer a free initial consultation for all new clients, so if you're exploring your options for taking control of your building’s management or need more technical advice, please don't hesitate to call us at www.northmodeproperties.co.uk or contact us at info@northmodeproperties.co.uk.

Service charges are funds collected in accordance with your lease and are based on a budget set by the freeholder, directors of a management company, or managing agent. These funds cover all building-related expenditures, such as repairs, decoration, electricity, gas, water for common areas, cleaning services, gardening, management fees, accounting, and more. The list can sometimes seem endless! Service charges are typically calculated based on apportionments, which are percentages according to the square footage of your flat. Ideally, the percentages for all flats in the building should add up to 100%, though not all do—this is something worth checking as soon as possible. For example, if the annual budget for the building is set at £5,000.00 and your apportionment is 14.87%, your annual service charge would be £743.50. It's important to note that ground rent and service charges are separate and should not be confused. Your lease will specify when service charges are due, and hopefully, demands are sent out in accordance with this schedule. They could be due annually, bi-annually, quarterly, or on another schedule, so it's worth checking your lease to confirm when yours are due. If you receive a demand on a different date than specified, it's a good idea to bring this to the attention of your freeholder or managing agent. It's crucial to note that if service charge demands are not issued according to the lease or if they are not accompanied by a ‘Summary of Tenants' Rights and Obligations’ (as required by Section 21b of the Landlord and Tenant Act 1985), a leaseholder is not obligated to pay the service charge under Section 21a of the same Act. Additionally, the demands must include the landlord's name and address as required by Sections 47 & 48 of The Landlord and Tenant Act 1987 (unless payments are made to a management company named in the lease). These are the only valid reasons to withhold a service charge. Once these issues are rectified, service charges become due. However, it’s important to remember that withholding payment can create issues for everyone, as it may lead to a lack of funds for the building. Managing agents cannot legally instruct services without available funds, so it’s vital to ensure the correct procedures are followed and communication is maintained. In some cases, leases may specify a nominal service charge—say £60 per quarter per flat—with the remainder collected as a deficit at the end of the year. This means that when the annual accounts are prepared, any shortfall in the service charges will be collected from all leaseholders to cover the actual expenditure incurred that year. Budgeting for your service charge is an essential aspect of property management, which we will cover in more detail in a future post. If you have any questions or need further advice on service charges or any other property management matters, feel free to get in touch—we're happy to help! Northmode Properties T: 0161 676 0084 www.northmodeproperties.co.uk

Why Are Landlords Setting Up Limited Companies for Their Rentals? Since 2017, the number of landlords forming limited companies for their properties has surged, with 300,000 registered in 2022 alone. Today, approximately 40% of new buy-to-let purchases are made through a company structure. This shift stems from the 2015 tax reform known as Section 24, which altered how landlords are taxed on rental income. Previously, landlords could deduct mortgage interest and other costs before taxation, but Section 24 now requires landlords to pay tax on their total rental income, with mortgage interest relief capped at the basic income tax rate of 20%. In this blog, we’ll explore why landlords are transitioning to limited companies and weigh the advantages and drawbacks of this approach. What Is Section 24 and How Does It Affect Landlords? Implemented fully in 2020, Section 24 changed the tax relief landscape for landlords. Under the new rules, landlords are taxed on their full rental income, with mortgage interest relief capped at the basic income tax rate of 20%. This change has driven many landlords to set up limited companies to manage their tax liabilities. However, it's important to consider whether this move is beneficial for your situation. Benefits of Setting Up a Limited Company Reduced Tax Bill Limited companies are taxed at the corporation tax rate of 25%, which can be lower than the personal income tax rates for higher earners. This can result in significant tax savings. Limited Liability A limited company structure separates personal and business finances, protecting personal assets from business liabilities. Increased Flexibility with Profits Profits in a limited company can be reinvested, used to pay down debt, or distributed as dividends, offering more flexibility in managing income and investments. Easier Ownership Transfers and Inheritance Tax Benefits Transferring ownership and managing inheritance tax is simpler within a company structure, potentially reducing stamp duty and capital gains tax liabilities. Potential Drawbacks of a Limited Company Structure Not Ideal for Lower Rate Taxpayers For landlords in the basic income tax bracket or with only a single property, the benefits of a limited company may not outweigh the costs. Transfer Costs Existing properties must be sold to the company, incurring stamp duty and other costs, which may lead some landlords to retain personal ownership of their existing properties. Increased Administrative Responsibilities Running a limited company involves more paperwork and compliance, including company tax returns and detailed financial records. This may require hiring an accountant, incurring additional costs. Double Taxation Concerns While a company pays corporation tax on profits, any salary or dividends taken by directors are subject to personal income tax. Limited Capital Gains Tax Allowance There is no tax-free allowance for capital gains when selling properties through a company, though the lower tax rate and other efficiencies may compensate for this. Higher Mortgage Costs Mortgages for limited companies may come with higher fees and interest rates, and fewer products may be available compared to personal buy-to-let mortgages. Complex Equity Release Releasing equity from a property is more complicated in a limited company structure, as funds withdrawn must be declared as income and are subject to tax. How Should You Proceed? Deciding to form a limited company involves several factors and should be tailored to your specific financial situation. For landlords in higher income tax brackets, consulting with a financial advisor can be beneficial to determine if this structure is advantageous.

With a new Labour government in place, they have committed in their election manifesto to a major "overhaul" of private rental sector regulations. For landlords, adapting to change has become routine, and 2024 was anticipated to bring even more adjustments in England, as various housing policies were set to become law. This anticipated change included the Renters Reform Bill, which was initially promised in the Conservative’s 2019 Election Manifesto but was abandoned after Rishi Sunak dissolved Parliament in preparation for the General Election on July 4. Now, the Labour government is poised to introduce rental reform through a new Renters’ Rights Bill, while also advancing leasehold reform with a new Leasehold and Commonhold Reform Bill. In addition to these reform bills, several other changes will impact landlords this year. Here is a guide to 7 key changes landlords should be aware of in 2024. 7 Changes Landlords Should Track in 2024 The Labour Government’s New Renters’ Rights Bill The Leasehold and Freehold Reform Act 2024 Becomes Law The New Leasehold and Commonhold Reform Bill The Final Year of Lower Stamp Duty Abolition of Pension Lifetime Allowance from April 6, 2024 Reduction in Tax-Free Allowance for Capital Gains Tax New Guidance from the Competition and Markets Authority on Letting? 1. The Labour Government’s New Renters’ Rights Bill Landlords are facing a period of significant change and uncertainty. The Labour government has pledged to "overhaul the regulation of the private rented sector," as outlined in their manifesto. This will be addressed through a new Renters’ Rights Bill. This Bill is expected to mirror many aspects of the Renters Reform Bill, which was nearly passed before the general election was called. It will abolish Section 21 and introduce new grounds for possession under Section 8 (specific grounds not yet detailed). It will also allow tenants to contest rent increases, ban “rental bidding wars,” grant tenants an implied right to keep pets, and incorporate other changes from the Renters Reform Bill. Details will be confirmed once the Renters’ Rights Bill is published. Although Labour promised to abolish Section 21 "immediately," this will not occur instantly. The Bill must pass through both Houses of Parliament before becoming law. 2. The Leasehold and Freehold Reform Act 2024 Becomes Law The Leasehold and Freehold Reform Bill was fast-tracked through Parliament and received Royal Assent on May 24. While it is now law, it has not yet come into effect, and it will be up to the Labour government to implement it. For the 38% of landlords owning leasehold properties, this Act fulfills a promise from Boris Johnson’s 2019 Conservative manifesto. It allows leaseholders to extend leases to up to 990 years, abolishes marriage value, and limits ground rent. These measures will simplify and reduce costs for leaseholders wishing to extend leases or purchase the freehold or a share of it once implemented. However, we are still awaiting the outcome of consultations on ground rent restrictions. Although there was speculation about capping ground rent at £250 annually, the Act does not include such a cap. 3. The New Leasehold and Commonhold Reform Bill According to the King’s Speech, Labour will introduce the Leasehold and Commonhold Reform Bill to "reform the leasehold system," incorporating remaining Law Commission recommendations related to leasehold enfranchisement and the Right to Manage. It will address unregulated and excessive ground rents and eliminate the disproportionate threat of forfeiture for lease breaches. The new Bill will focus on commonhold revitalization, abolition of forfeiture, and regulation of ground rents. The government plans to consult on addressing "fleecehold" and strengthening the right to manage using powers from the Leasehold and Freehold Reform Act 2024. The details on capping ground rents remain vague, reflecting the non-committal language in Labour’s manifesto. The government will consult on the best approach to regulate existing ground rents for leaseholders to avoid unaffordable costs. 4. The Final Year of Lower Stamp Duty In his mini-budget on September 23, 2022, Chancellor Kwasi Kwarteng announced a “permanent” increase in the residential nil-rate tax threshold from £125,000 to £250,000. However, Jeremy Hunt later introduced a sunset clause, ending this reduction on March 31, 2025. As a result, buyers will revert to paying the full stamp duty amount next year. Landlords may rush to complete transactions before the lower stamp duty ends, creating a potential surge in activity towards the end of 2024 and early 2025. The Labour government’s stance on stamp duty remains unclear. 5. Abolition of Pension Lifetime Allowance from April 6, 2024 In a rare piece of good news for investors, the government announced the abolition of the pension lifetime allowance (currently £1,073,100) in the Spring Budget 2023. This change, starting from April 6, 2024, means that pension withdrawals exceeding this amount will no longer incur additional tax charges. For landlords, this is relevant because many draw up to 25% of their pension tax-free for buy-to-let investments after age 55. While the maximum withdrawal remains £368,275 (25% of the current allowance), there will be no additional tax penalties for exceeding the previous limit. Although Shadow Chancellor Rachel Reeves indicated last year that Labour might reverse this change, it was not included in Labour’s election manifesto. 6. Reduction in Tax-Free Allowance for Capital Gains Tax Landlords with properties in their own name will face a reduced capital gains tax allowance from April 6, 2024. The annual exempt amount will decrease from £6,000 to £3,000 for the 2024-25 tax year, increasing the capital gains tax payable by unincorporated landlords. The Spring Budget 2024 also announced a slight reduction in the top capital gains tax rate from 28% to 24%. However, the reduction in the annual exempt allowance will offset this benefit, giving with one hand and taking away with the other. The rate for basic rate taxpayers remains unchanged at 18%. 7. New Guidance from the Competition and Markets Authority on Letting? The Competition and Markets Authority (CMA) is investigating the “rented housing sector,” focusing on zero-deposit schemes, fraudulent licenses, and guarantees. The CMA is expected to release a report in spring 2024 and update its 2014 guidance for letting professionals. The updated guidance aims to clarify rights and obligations for landlords, tenants, and letting agents regarding consumer protection law and might shed light on unfair contract clauses between letting agents and landlords.

Manchester is rapidly emerging as one of the most attractive cities for property investment in the UK. Its vibrant culture, booming economy, and strategic location make it a hotspot for both investors and tenants. In this post, we’ll delve into why Manchester is the perfect city for property investment and how Northmode Properties can assist you in making the most of this opportunity. 1. Economic Growth Manchester's economy is one of the fastest-growing in the UK, offering numerous opportunities for investors. - **Business Hub**: Home to a diverse range of industries including finance, technology, and manufacturing. - **Job Creation**: Steady job growth attracting professionals and increasing demand for rental properties. - **Infrastructure Development**: Major projects like HS2 and the Northern Powerhouse initiative are enhancing connectivity and economic potential. 2. Thriving Rental Market Manchester’s rental market is robust, driven by a high demand for quality housing from students, professionals, and families. - **University City**: With renowned institutions like the University of Manchester and Manchester Metropolitan University, there’s a constant influx of students needing accommodation. - **Young Professionals**: A growing number of young professionals are choosing Manchester for its vibrant lifestyle and career opportunities. - **Affordable Living**: Compared to London, Manchester offers more affordable living options, making it attractive for renters. 3. Cultural Appeal Manchester is a city rich in culture, attracting residents from all walks of life. - **Music and Arts**: A thriving music scene, world-class galleries, and cultural festivals. - **Sports**: Home to famous football clubs like Manchester United and Manchester City, as well as other sporting events. - **Dining and Nightlife**: An eclectic mix of restaurants, bars, and entertainment venues. 4. Strategic Location Manchester's strategic location in the heart of the UK makes it an ideal base for businesses and residents. - **Transport Links**: Excellent connectivity via rail, road, and air, with Manchester Airport serving international destinations. - **Proximity to Major Cities**: Easy access to other major cities like Liverpool, Leeds, and Birmingham. 5. Investment Potential The property market in Manchester offers strong returns on investment. - **Capital Appreciation**: Steady increase in property values over the years. - **Rental Yields**: High rental yields compared to other major UK cities. - **Regeneration Projects**: Ongoing regeneration projects enhancing property values and rental demand. Conclusion Manchester presents a golden opportunity for property investors, with its dynamic economy, thriving rental market, cultural richness, and strategic location. Northmode Properties is your trusted partner in navigating this lucrative market. Contact us today to explore how we can help you maximise your property investment in Manchester.

Despite some recent fluctuations, the UK housing market remains resilient, with savvy buy-to-let investors poised to capitalise on plentiful opportunities. Strategic planning and proactive management will be key to maximising returns in 2024. The pandemic forced the housing market to temporarily grind to a halt. Since then, as restrictions have eased and the market has begun to stabilise, we have seen a surge in activity amongst buyers, sellers and investors. Recent statistics point to an average UK house price increase of 20.4% between January 2020 and December 2022. Though price growth has slowed somewhat in response to fluctuating interest rates and inflation, factors like high housing demand and constrained supply underpin the foundational strength and resilience of the market. House prices have actually recently dropped, to the extent that they are plummeting at a rate not seen in over a decade, down 4.6% year-on-year. This should make any enticing prospective buyer take notice. Despite the rumour mill running rampant with housing market crash talk, this is purely speculation at this stage. As experienced agents keeping tabs on current market trends and insights very closely, we will be forthcoming if there is any such economic downturn on the horizon. Buy-to-let investors have begun to question whether the housing market currently presents a good opportunity to take the plunge in 2024, and, to be truthful, they can. If approached strategically, you can see healthy returns on property investments on a buy-to-let basis. With guidance from professional, transparent estate agents like ourselves, you can position yourself to benefit lucratively, with your investments retaining enduring viability. This short guide explains everything you need to know at this stage. The UK Housing Market Shows Underlying Resilience The UK housing market has largely stabilised after a temporary period of volatility. Despite a minor price growth slowdown, ‌underlying demand still outweighs supply, so prices will likely hold steady and firm for the foreseeable future. In the 12 months to early October, house prices fell 0.8% due to reduced market activity. September 2022 saw the largest annual fall in UK house prices in 14 years, as revealed by data from Halifax Bank. This suggests that there is no imminent risk to the UK housing market for buy-to-let landlords at present. The number of year-on-year house sales fell, but agents are still seeing steady enquiries, and market activity remains healthy. At the cost of living crisis eases steadily and interest rates fall, more buyers and renters will enter the market. The underlying supply and demand imbalance suggests that house prices will remain relatively resilient while the market stabilises further. So, new and seasoned buy-to-let investors can feel reassured that a move for a property in this sector will prove worthwhile. You may just have to wait for the prime opportunity. With the help of proactive property agents like Northmode Properties and local buy-to-let tax advisors and accountants, you can focus on growing your portfolio and seeing healthy returns too. What else do buy-to-let investors need to be aware of going into 2024? Rising Interest Rates Present Strategic Opportunities The Bank of England’s base rate stands at 5.25%, which is increasing mortgage costs for landlords. However, while higher rates squeeze profits in the short term, the base rate will eventually fall as inflation inevitably drops. While some buyers may baulk at the average two-year fixed-rate deal (6.4%, according to Moneyfacts, which is up from 2.9%, the average deal in December 2021), savvy landlords and investors are using this window to secure competitively-priced fixed-rate mortgage deals. By using their networks strategically, they can find lenders willing to strike competitive loans below the average rate. Some landlords see this as an opportunity to sell up, granted, but that doesn’t mean that those opting to let their properties out can’t maintain a positive cash flow. It certainly doesn’t mean that being a buy-to-let landlord is not financially viable in this current window. With the right financing strategy, you can still maintain a healthy cash flow. The key is finding value, controlling costs carefully, and regularly reviewing performance. Tax and Regulatory Changes are Manageable The UK Government implemented a 3% stamp duty surcharge on additional properties, including those purchased for buy-to-let purposes. Additionally, the gradual introduction of new schemes and incentives for landlords is being met with optimism rather than a backlash. Some may even see the new way of declaring income on tax returns, to cover mortgage payments, as more beneficial and less time-intensive. Furthermore, previously proposed mandatory upgrades to rental properties to meet minimum EPC standards have been put on hold, giving landlords additional breathing room. Improving the efficiency of properties remains wise to attract future tenants and ‌future-proof assets, but the u-turning on deadlines has given buy-to-let investors more thinking time to focus their property upgrade efforts. It has also paved the way for more buy-to-let mortgage enquiries given that the Government will – in the interim – subsidise a transition to greener homes and not put the burden of costs on landlords. While tax changes have marginally impacted costs, allowances and lower-rate tax relief will help offset the impact. Longer-term proposals like the Renters Reform Bill could also give renters more impetus to begin househunting for rental properties. While landlords should still navigate this imminent bill with steadiness, if they maximise rental income and capital values while keeping rent amounts competitive, they could begin to see healthier returns. Closely monitoring interest rates and changing regulations will be key to evaluating the changes in the market. However, if planned methodically, buy-to-let undoubtedly remains viable. Tips for Making Buy-to-Let Work in 2024 While the buy-to-let landscape has changed, property can still prove highly rewarding if approached strategically. Amid all market shifts, investors have to be flexible and respond proactively, rather than reactively. Prospective buy-to-let investors can maximise their chances of success through careful planning and strategy. Focusing on high-demand areas, finding value-added opportunities like auctions or run-down properties, minimising costs by lowering mortgage payments, using allowances where possible, and leveraging professional estate agent help will be key. Managing properties proactively, assessing performance regularly, and being ready to adjust as needed is also vital. With the right expectations and adaptable strategy, buy-to-let can continue offering lucrative long-term returns.

If you're a landlord in the UK looking to grow your property portfolio or explore new investment opportunities, buying at auction might be worth considering. Auctions can present excellent deals and access to properties not always available through traditional means. However, it's crucial to understand the potential risks and rewards before diving in. Benefits of Buying at Auction Potential Bargains Properties at auction often sell for less than market value. Although a guide price is set, the final sale price may be higher or lower based on competition among bidders. Fast Transactions Auctions offer a clear timeline: you know immediately if you’ve won, and must pay a 10% deposit on the day. Completion occurs within 28 days, allowing landlords to quickly begin renovations and prepare the property for rental. Equal Opportunity Auctions provide a level playing field where the highest bidder wins, without any preferential treatment. Rapid Rental Readiness With the legal process completed in 28 days, you can swiftly start any necessary updates. Some auction properties may even come tenanted, generating rental income immediately upon completion. Unique Property Options Auctions often feature a diverse range of properties, including those that are unusual or require renovation, offering a chance to invest in something distinctive. Pitfalls of Buying at Auction Limited Due Diligence Time Auction schedules are tight. You have only a short window to inspect the property, review the legal pack, seek legal advice, and arrange financing. Additional Costs Be aware of extra expenses such as legal fees, auctioneer fees, buyer’s premiums, stamp duty, and insurance. Thoroughly review the auction catalogue to factor in these costs. Immediate Payment Required A 10% deposit is required on the day of the auction, and you must ensure your financing is in order. If you pull out, you risk losing the deposit. High Competition Bidding can be intense. Although guide prices may be low, final bids can be much higher. Stick to your budget to avoid overspending. Top Tips for Auction Success View the Property Inspect the property thoroughly to understand any renovation needs. Viewings are typically available for a few weeks before the auction. Register in Advance Ensure you are registered for the auction well before the deadline, which can be several days to a week prior. Research Thoroughly Examine the legal pack carefully, and consult with a solicitor to review survey results, leasehold details, and other legal matters. Obtain an Independent Valuation Know the property's true value, as auction guide prices can be set low to attract bidders. Set your budget based on a realistic valuation. Estimate Rental Value Consult with a property management company like Abode to get an estimated rental income and advice on property location and potential. Account for Renovation Costs Factor in costs for updates like new carpets or kitchen refurbishments. Property management companies can provide quotes and manage the work if you win the auction. Prepare Your Finances Ensure you have the necessary funds ready for the deposit and check if the property qualifies for a mortgage. Have your finances sorted before bidding. Stick to Your Budget Auction bidding can be emotional, but it's crucial to adhere to your budget. There are plenty of properties available if you don’t win this one. SUPPORT FOR LANDLORDS WITH NORTHMODE. Buying a property to let at auction can be a great way to expand your property portfolio, but it's important to be aware of the auction process and the potential pitfalls. If you’re thinking of buying a property at auction, the team at Northmode can help advise you on property choice, the location and the potential rental income. We also offer a refurbishment service assisting and advising Landlords on refurbishment to help achieve the highest possible rental yield. We source competitive quotes from trusted contractors and can manage refurbishment projects if necessary. For more help and advice on buying a property at auction to let give our team a call on 0161 676 0084 or fill out our contact form.

Have you explored using rental management tools to boost efficiency in managing your properties? While self-managing your rental properties can be time-consuming, it offers a way to reduce overhead costs, increase cash flow, and expand your business. By staying actively involved, you can closely monitor your portfolio's performance, identify areas for improvement, and seize growth opportunities. Fortunately, many tools are available to help you establish and maintain a professional operation while minimizing time investment. Below, we've compiled a list of top tools to streamline your rental property management. Setting Rent Amounts To ensure your rentals are profitable, it’s crucial to charge appropriate rent. Simply setting a price without consideration can deter potential renters if the rate is too high, leading to increased vacancy rates. Instead, conduct market research to determine a fair rental rate through price comparisons. You can manually research similar properties on sites like Zillow or Zumper, or use tools like Rentometer or Rentrange for quick market reports, enabling you to make informed decisions swiftly. Attracting Quality Tenants Long vacancies can be costly, so it’s important to get your property listing seen by as many potential tenants as possible. Utilize online rental platforms such as Craigslist, Facebook Marketplace, Zillow, and Hotpads, which receive substantial daily traffic. Syndicating your listing across these platforms will increase inquiries and help fill vacancies quickly. Tools like Landlord Studio also allow you to create, prescreen, and manage applicants efficiently in one place. Conducting Tenant Screenings After showing the property and prescreening applicants, it’s essential to narrow down your choices and ensure selected tenants are suitable. Run comprehensive tenant screening reports to check credit, income, and background history. These reports help verify that applicants can reliably pay rent on time. Landlord Studio offers integrated tenant screening services, including SmartMove reports with credit checks, criminal background checks, and rental history. Digital Lease Signing Incorporating digital technology into your processes can save time and reduce unnecessary face-to-face interactions, especially following recent shifts towards remote solutions. Once a tenant is selected, you can email the lease for digital signing. Tools like HelloSign and Adobe Acrobat provide convenient options for electronic document signing, with limited free versions available. Collecting and Managing Rent To effectively grow your rental business, adopting efficient rent collection methods is essential. Cash and checks are becoming outdated; online rent collection tools are the way forward. Platforms like Landlord Studio enable tenants to view payment history, set up recurring payments, and ensure funds are deposited directly into your bank account with automatic tracking. This method simplifies the process for both landlords and tenants, reducing the likelihood of missed or late payments. Tracking Income and Expenses Maintaining accurate records of income and expenses for each property is vital for tax purposes but can be cumbersome with traditional methods involving extensive spreadsheets and admin work. Financial tracking tools like Landlord Studio simplify this process. You can manage finances from any device, connect bank accounts for real-time transaction monitoring, digitize receipts, and automate income tracking. Final Thoughts Being a landlord requires significant time and commitment, which can be daunting for newcomers. However, it is a proven way to build wealth. For those with small to mid-sized portfolios, self-managing properties makes sense as it helps cut costs and provides detailed insights into portfolio performance. With the right tools, efficient and professional property management is achievable. The rental management tools highlighted above are just a few examples of how landlords can save time, reduce overheads, and maintain a profitable rental business.

As a landlord, you aim to maximize your property investment while offering quality accommodation to tenants. With 35% of households living in rental properties, there's strong demand, but attracting the right tenants and ensuring a good return requires thoughtful investment and strategy. In this blog, we explore 10 effective ways to enhance your rental property, appeal to your ideal tenants, and manage your budget and returns effectively. IDENTIFY YOUR IDEAL TENANT Understanding who your ideal tenant is will guide your renovation choices, budget allocation, and impact on rental income and yield. For instance, student rentals should be near transport links and furnished with basic items, while family homes might benefit more from improvements in kitchens and living areas. 1. REDECORATE A fresh coat of paint is a cost-effective way to refresh a property. It can cover wear and tear and give a room a clean, modern appearance, making it more appealing to potential tenants. 2. REPLACE FLOORING & CLEAN CARPETS Updating old or worn flooring with durable options like laminate or Luxury Vinyl Tile (LVT) can be a smart investment. If carpets are still in good shape but need refreshing, professional cleaning can extend their life and enhance the property’s appeal. 3. MODERNIZE THE KITCHEN The kitchen is central to the home. Investing in a modern kitchen, even with minor updates like new countertops or tiles, can significantly impact rental value and appeal. 4. REFRESH THE BATHROOM Updating a bathroom with a new suite or fresh sealant can transform its look, making it more attractive to potential renters. Repainting and addressing any mould issues can further enhance the space. 5. IMPROVE KERB APPEAL Enhance the property's exterior by maintaining the front door, lawn, driveway, and garden. Small investments in curb appeal can make a significant difference in attracting tenants. 6. PROVIDE EVERYDAY APPLIANCES Offering essential appliances, particularly high-quality ones, can be a decisive factor for tenants, especially young professionals and families, potentially allowing for higher rent. 7. CONSIDER FURNISHING Furnishing your property can attract tenants who prefer move-in-ready homes. Although there’s an initial cost, furnished properties often command higher rent. 8. BUILD IN STORAGE Adding built-in storage, such as wardrobes or bike storage, can increase your property's appeal, particularly for tenants with specific storage needs. 9. MAXIMIZE OUTDOOR SPACE Even a small garden or patio can be improved to create an appealing outdoor area. For larger gardens, consider adding seating or decking to enhance tenant enjoyment. 10. INCREASE ENERGY EFFICIENCY Upgrading insulation can make your property more attractive in the face of rising energy costs. Good insulation helps reduce energy bills and can be a strong selling point. ADVANCE PLANNING IS ESSENTIAL Plan and schedule renovations carefully to minimize vacancies. Organize and book contractors in advance to ensure timely completion. RENOVATING AND HIRING CONTRACTORS Renovations often require skilled contractors. Hire accredited professionals to ensure quality work and adherence to regulations, which helps minimize downtime and maintain property value. HOW MUCH RENT SHOULD YOU CHARGE? Discuss with your letting agent to set a realistic rental rate based on your property’s condition, location, and market trends. This ensures your investment yields the best return. GET THE MAXIMUM RENTAL VALUE WITH NORTHMODE. At Northmode, our team is here to support landlords as they refurbish their properties and make changes. We want to help you get the highest rent achievable. Whether you are interested in a bit advice or want to take advantage of our refurbishment service, we’re here to help you make the best investment, get the maximum return and secure the best tenants for you. To discuss any of the above for one of your properties, or are looking for a management agency, feel free to contact us on 0161 676 0084 or fill out our contact form and we’ll get back to you.

Being a landlord involves wearing many hats—managing finances, handling home maintenance, finding tenants, and more. As your rental property business expands, these responsibilities can become overwhelming, potentially diverting your attention from growing your real estate portfolio. This is where property managers can be invaluable. They play a crucial role in managing day-to-day operations, easing the administrative and maintenance burdens that come with owning multiple properties. However, finding a reliable property manager can be challenging, especially for new landlords. Determining what to look for in a quality property manager is key. This article will provide insights into the role of property managers, the advantages of working with one, associated costs, and considerations for hiring and onboarding. The Role of a Property Manager Property managers are typically employed by real estate agencies, property management firms, or as independent consultants. Their primary responsibility is to handle the day-to-day management of rental properties on behalf of private or commercial landlords. A property manager can handle various tasks including repairs, maintenance, rent collection, tenant relations, and administrative duties. By maintaining your property well and ensuring it is rented to qualified tenants, they can enhance its value. Beyond these practical benefits, a property manager can offer peace of mind, allowing you to enjoy your free time knowing your property is in capable hands. They also help preserve your privacy and provide an added layer of personal security. Not All Property Managers Are Created Equal Investing in a reputable and professional property management company is likely to result in a positive experience. However, it’s important to recognize that not all property managers possess the same level of passion or expertise. While it can be tempting to make a quick decision, especially when overwhelmed, it’s crucial to carefully evaluate candidates. Choosing the right property manager is essential to ensuring you receive the value and outcome you expect. We'll delve into this further later in the article. Cost Considerations The costs associated with property management can impact your return on investment, but the benefits may offset these expenses. Cost structures can vary between companies, often depending on the rental price of your property. Typically, you may be invoiced for a percentage of the monthly rent when new tenants move in, along with a monthly fee that can be up to 10% of the rent or a flat rate set by the management company. Benefits of Having a Property Manager A skilled property manager can be invaluable, saving you time and hassle by managing all the details associated with rental property ownership, allowing you to focus on other aspects of your life. For landlords, particularly those who don’t live near their rental properties, having someone reliable to make on-the-spot decisions is crucial. Here are some key benefits of hiring a property management company: Tenant Screening One of the most critical functions of a property manager is tenant screening. They perform background and credit checks to ensure that prospective tenants can pay rent and will take good care of your property. With their experience, property managers can make informed decisions about tenant suitability. Handling Repairs and Maintenance A property manager will address repairs and maintenance issues as they arise. They manage the process of finding contractors, negotiating responsibilities with tenants, and sourcing necessary items. Their industry contacts often ensure reliable and cost-effective work, saving you time and money. Rent Collection Property managers ensure that rent is collected on time each month. This can be a significant relief for landlords who have previously dealt with late or delinquent payments. Handling Eviction Proceedings If evictions become necessary, a property manager will handle all the proceedings. They are experienced in managing this complex and often stressful process efficiently and in accordance with legal requirements. When to Consider Hiring a Property Manager Consider hiring a property manager if you identify any of the following situations: Distance from Rental Property: If you live far from your rental property or have multiple properties in different locations, managing them effectively can be challenging. A property manager can handle tasks like property showings, repairs, and inspections on your behalf. Difficulty Finding Tenants: High vacancy rates or trouble finding qualified tenants may indicate it’s time to hire a property manager. They have the expertise and industry contacts to market your property effectively and attract reliable tenants. Frequent Property Issues: If you frequently deal with tenant complaints or maintenance problems, a property manager can take over these responsibilities, alleviating some of your stress. Lack of Time: If you’re unable to dedicate sufficient time to manage your property, a property manager can handle all the details for you, allowing you to focus on other priorities. Advice for Hiring Property Managers Choosing the right property management company is a significant decision. Here are some tips to help you find a suitable candidate: Referrals Seek recommendations from friends or family who own rental properties and have experience with property managers. Their insights can provide valuable context and help you identify qualities and experiences that are important to you. Research Conduct thorough online research to create a shortlist of potential property managers. Reading reviews and gathering information from professional research organizations can help you assess their reputation and performance. Interviews Meet with your shortlisted candidates to gauge their suitability. In-person meetings can reveal aspects not apparent from reviews or background information. Although hiring a property manager involves a cost, the peace of mind and time savings they provide can be well worth the investment. If you’re contemplating hiring a property manager, it’s likely due to one or more of the issues discussed here. At Northmode we can help address these challenges so you can enjoy being a landlord without the associated stress .

A property owner hires a third party, such as an individual or a property management firm, to manage their real estate properties. Property management includes finding tenants, collecting rent, handling repairs and maintenance, and ensuring compliance with local regulations. Over 70% of property managers conduct property inspections, advertise vacancies, and secure tenants for the properties they manage. When executed effectively, property management can enhance a building's value and revenue while alleviating the owner from the daily operational challenges. How Much Do Property Managers Charge? Property management fees come in various forms, each offering distinct benefits and considerations for property owners and investors. This section explores common fee structures, including flat fees, percentage-based fees, early termination fees, and monthly management fees. Fixed Property Management Fees In this structure, property owners pay a predetermined amount to the property management company, usually on a monthly or annual basis. This method offers predictable budgeting, making it a popular choice for owners seeking stable management costs and reliable rental income. Fixed fees can be particularly cost-effective for owners of high-rent properties, as they often involve a one-month rent equivalent as the set charge. Percentage-Based Management Fees Under this structure, property owners pay a percentage of their monthly rent to the management company, averaging around 8.49% but ranging from 3.75% to 14% depending on the property's size and location. This fee structure is favored by owners who prefer performance-based costs and can handle fluctuating rental income. It incentivizes property managers to optimize rental income and is beneficial in competitive rental markets with seasonal income variations. Monthly Management Fees Monthly management fees cover daily property management tasks such as rent collection, tenant communication, and property maintenance coordination. Typically ranging from 5% to 10% of the monthly rent, these fees ensure property managers are invested in the property's financial health and tenant satisfaction. Property owners should evaluate these fees against their specific management needs and budget. Understanding Property Management Costs for Landlords and Real Estate Investors Overview of Property Management Costs Grasping basic terminology related to property management services and costs is essential for effectively navigating the real estate market. Here are some key definitions: Property Management Services These encompass a range of responsibilities undertaken by property managers on behalf of property owners. Services include rent collection, eviction processes, tenant screening, property maintenance, and lease administration. Property Management Fee This refers to the payment property owners make to management firms for overseeing their properties. Typically, these fees are structured either as a flat rate or as a percentage of the monthly rent collected. Maintenance Fees These cover expenses related to repairs and ongoing upkeep of the property. Costs can vary depending on the level of maintenance required. Renewal Fee This is an additional charge incurred when extending or renewing a lease. It covers the administrative work involved in extending the lease terms. Maintenance and Repair Costs These payments are for regular and emergency property maintenance. Property management companies handle routine maintenance and urgent repairs. While these costs can impact profitability, effective property management balances preventive maintenance with timely repairs to maintain tenant satisfaction and reduce long-term expenses. Tenant Screening and Placement Fees These fees are associated with finding and placing reliable tenants. Property management companies usually conduct background checks, credit assessments, and reference verifications. Tenant screening and placement fees are generally paid by the tenant during the application process and help property owners secure tenants who are more likely to honor their leases, thereby reducing risk and turnover. Variation in Property Management Fees Rent Collection and Vacancy Fees Rent collection and vacancy fees are critical to property management. Rent collection services ensure timely rental income for property owners, with some management firms charging a percentage of the rent for this service. During vacancies, property managers may charge fees for marketing, property showings, and other recruitment efforts. Reducing these fees during vacant periods can help enhance rental income for owners. Lease Renewal and Early Termination Fees Property management firms may charge fees for lease renewals and early terminations if they handle these processes for the owner. Renewal fees cover the administrative tasks of extending leases, while early termination fees are incurred if leases are canceled before the end term. These fees vary and are usually outlined in the property management contract. Owners should consider these costs when evaluating management agreements. Factors Influencing Property Management Fees Experience of the Property Manager. The experience level of a property manager impacts fees. Professional property managers generally charge higher fees than those managing their properties independently. While managing properties yourself can save money, professional managers bring expertise, market insights, and time savings. Their handling of tenant issues, maintenance, and legal compliance can enhance property performance and tenant satisfaction, potentially justifying the higher fees. Types of Property Management Services. The range of services provided affects fees. Common services include rent collection, tenant screening, property upkeep, and lease management. Opting for comprehensive property management, where the manager handles all aspects of property care and tenant relations, may result in higher costs. Conversely, selecting more limited services may reduce costs but require greater owner involvement. Property Type and Rental Income. Management fees vary based on property type and rental income. Residential and commercial properties have different management needs, with commercial properties often involving more complex leases and maintenance, potentially increasing fees. Higher rental income usually means higher management fees, as these are often a percentage of monthly rent. Luxury properties may also demand higher fees due to their specific requirements and market positioning. Fee Structures. Property management fees are typically charged as either a fixed amount or a percentage of monthly rent. Standard rates generally range from 8% to 15% of the rent. The choice between different fee structures often depends on factors such as the type of rental property and the scope of required services. Geographical Differences. The location of a property significantly affects management costs. In large cities, higher operational expenses and increased demand can lead to higher property management rates. Impact of Property Management Costs on Property Owners. Maintenance and repair costs directly impact property owners. Neglecting maintenance can lead to more significant, costly issues. Conversely, proactive maintenance can enhance property value and attract high-quality tenants, potentially lowering long-term maintenance costs. Owners should budget for these expenses and work with managers to establish effective maintenance and repair practices. Is Hiring a Property Manager Worth the Cost? While hiring a property management company involves significant expense, it can be worthwhile for property owners with multiple properties or those unfamiliar with the local market. Property owners should weigh the benefits and drawbacks of hiring a property manager and conduct a cost-benefit analysis to assess the financial impact in the long run. Finding a Property Management Company Selecting a property management company requires careful consideration. Begin by researching online and reviewing feedback from current clients. Recommendations from family, friends, and colleagues can also be valuable. After shortlisting potential companies, schedule interviews to discuss their services, fees, and experience with properties similar to yours. Conclusion Choosing the right property management company involves evaluating various factors, including fee structures, service scopes, and property type and location requirements. Property owners should research potential managers, clearly communicate their expectations, and assess the manager's track record. As the property management landscape evolves, staying informed about market trends and adapting to changes can help property owners effectively manage their real estate investments and ensure ongoing success.

A question we get asked a lot from our landlords is which flooring to use. When it comes to flooring, believe it or not, choosing the right one can make a big difference! As with all aspects of décor in a rental property, you need to balance the look of the flooring with durability and budget, while taking into account what’s most attractive to tenants. Laminate - Scratch resistant laminate tends to work well in entrance hallways, certainly better than carpet - as that’s an area of high traffic. It’s also a good all-round solution for tenants with pets or children, being easy to clean and good for allergies. Carpet- You can get basic felt-backed carpets that don’t need underlay, but these will need replacing every two to four years and tend not to look very good. If you choose a better-quality hard-wearing carpet this can of course last a lot longer and is more likely to attract tenants. Vinyl - Vinyl has come a long way in recent years. It now comes in a huge range of colours and styles and is a popular option among landlords for kitchens and bathrooms because it’s easy to clean and, importantly, moisture tolerant. Northmode recommends going for mid tone colours that won't show dirt or stains. Also, don't just go for the cheapest as these will be much less durable. Good flooring could mean the difference between long term tenants or a void period!

Are you self managing your rental property? We've put together some tips to give you advice of how to protect your property. ▪️Request and verify references - You should always check references with previous landlords. You'll get an idea of what type of tenants they are and whether they fit your requirements. ▪️Check documentation - If you're using an estate agent or property management company, they'll do this for you, but if you're doing it yourself, ensure that you check the legitimacy of the tenants' documentation. ▪️ Financial check - You should request to see a work contract or a letter from the employer confirming salaries. Otherwise, you should see recent bank statements to ensure the tenants can cover the rental cost. If you're working with an estate agent, ask if they run credit checks. ▪️Right to rent check - You are legally required to check the immigration status of any potential tenant before they move into the property. It's imperative to note that you must comply with the latest laws and regulations as a landlord. In general, you should be educated and knowledgeable about all the legal requirements for landlords and tenants so that you can avoid any legal action