Landlord Advice

Questions and Answers with Lettings Manager Rob Chipp from Fresh Estate and Letting Agents.

In this short interview landlords will obtain an insight into the Swansea letting market and some of the requirements of being a landlord. Let’s get started!

How much rent can landlords expect to achieve in Swansea?

This depends on areas of course, so to give some examples, see as follows: –

• St Thomas – 2 Beds – £800pcm. 3 Beds – £900pcm
• Morriston – 2 Beds – £850pcm. 3 Beds – £950pcm
• Uplands/Sketty – 2 Beds – £850pcm – 3 Beds £1000pcm to £1050pcm
• Bishopston/Pennard – 2 Bed – £950pcm to £1050pcm. 3 Beds £1250pcm to £1400pcm

Do landlords in Swansea need to register with Rent Smart Wales?

Yes, every landlord must be registered with Rent Smart Wales. This regulation came into force on the 23^rd November 2015. New online registrations cost £60. Landlords will then have a choice to register and instruct a licensed agent to carry out their management duties or if the landlord wishes to self-manage, they will need to obtain a licence, which involves training, being vetted and paying a licence fee. Registrations and licences last for 5 years.

What EPC rating is required for rental properties in Wales?

E is the lowest accepted rating currently

Are letting agent fees capped or regulated in Wales?

Letting Agent management fees charged to landlords are not capped. An Agents general conduct is monitored under Rent Smart Wales and is subject to audits to establish and maintain good practice under their license conditions.

However, what Landlord and Agents charge Tenants is governed under the Renting Homes (Fees Etc) (Wales) Act 2019. In Wales on the 1^{st of} September 2019 Landlords and Agents were prohibited from charging tenants a wide range of fees including administrative fees, check-in and check-out fees, inventory fees, and holding fees (not to be confused with a holding deposit).

How long is the average tenancy in Swansea?

The average tenancy can vary, but typically it’s between 12- 24 months.

Do tenants in Wales pay holding deposits or application fees?

A holding deposit of 1 week’s rent is required which can then contribute to he first months rent balance when the tenancy arrangement firms up.

What checks must Swansea landlords complete before renting out a property?

Firstly, they will need to be registered/licensed through Rent Smart Wales. In terms of the property they will need to have a Landlord Gas Safety Certificate (this is every 12months), electrical checks and certificate (normally 3 to 5 years), EPC (Energy Performance Certificate), which last for 10 years, although the rating demand may change in line with government guidelines. Lastly, a Legionella check. This all sounds a lot, but safety is important and once you have them in place it’s just maintaining them. A good property management agent can look after these checks and reminders for you.

How does the Renting Homes (Wales) Act affect tenancies in Swansea?

The Renting Homes (Wales) Act 2016, effective from December 1^st 2022 made a number of significant changes, the main ones are as follows: –

• Tenancy Agreements are now called Occupation Contracts
• Tenants are now officially called contract-holders
• Occupation Contracts have become more standardised
• The minimum notice that a landlord must give went from 2 months to 6 months.
• Rent Increases: Landlords must provide a minimum of two months’ notice for a rent increase, and rent can only be increased once every 12 months.
• Protection from Retaliatory Eviction: Courts can refuse a possession claim if the eviction notice is considered retaliatory, for example, if the contract-holder requested essential repairs.
• Easier Joint Contracts: Contract-holders can be added to or removed from a joint contract without needing to end the entire agreement and start a new one, offering more flexibility.
• Compliance with Rent Smart Wales: Existing registration and licensing requirements with Rent Smart Wales remain mandatory, with training updated to cover the new legislation.

The above are the main ones, but there are more.

What is an ‘Occupation Contract’ in Wales and how does it work?

An Occupation Contract is the new term for what was called a ‘Tenancy Agreement’. These Occupation Contracts now contain more standardised terms and have compulsory terms that must be part of them. In general, is sets out the terms on which a house is rented and provides the Tenant / Contract Holder with key information about their tenancy rights.

How often should landlords inspect rental properties in Swansea?

Advisory is for the landlord(s) to carry out 3 monthly inspections unless there is a problematic issue with certain cases.

How much notice must landlords give tenants under Welsh law?

6 months’ notice outside of a fixed term period.

Is Swansea a good area for buy-to-let investment?

Yes. Swansea has a strong residential lettings market and a positive student letting market due to the two large Swansea University Campuses.

What are the typical agency fees for property management in Swansea?

The normal range of management fees is between 10% and 15% plus Vat. Many agents will give a discounted rate for a property portfolio.

ARE YOU A LANDLORD? If you are a landlord and want some advice on investment property or perhaps you already have rental property and you are not overly satisfied with your current letting agent, please just get in touch with me directly at rob@freshsales.co.uk or call me on 01792 464757 (Option 2). Visit: https://freshpropertyhub.co.uk/