The buy to let sector continues to do well for landlords - but student accommodation is setting the benchmark for letting performance.
Despite monthly rents increasing by 2% during 2013, the average buy-to-let yield for a UK landlord sits at 6.1% gross, down 0.1% on 2012. But student accommodation thrashes this figure with sustainable and assured yields of 7 to 9% - net.
Peter McDermott, Director of UK-based Go Global Investments, said: "These latest figures from Countrywide Residential Lettings show that despite 'Generation Rent', where the number of people renting from a landlord has doubled to 8.5 million in 15 years, gross rental yields are sticking around the 6% mark.
Tenants’ deposits are normally twice the monthly rental for the property they chose. The purpose of the deposit is to cover damage to the property over and above normal wear and tear and/or any rent arrears or costs incurred as a result of a breach of the contract.
Under the Housing Act 2004 any landlord or agent who takes a deposit from a tenant for an Assured Shorthold Tenancy must safeguard it in an approved tenancy deposit scheme. scottfraser are insured agents and will hold deposits as members of The Tenancy Deposit Scheme (TDS).
The TDS has been established to serve three principle objectives:
At the end of any tenancy, scottfraser will return the deposit to the tenant as soon as practicably possible, less any deductions agreed. However, occasionally, a dispute may arise regarding the proposed deductions. If this cannot be agreed between the two parties, scottfraser are able to refer any deadlocked disputes to the TDS. Each case is sent to an Independent Complaints Examiner and subject to expert third party adjudication resulting in the apportioning of deposit money.
For more information the TDS, DPS and My Deposits, the three main deposit protection schemes in the UK, have produced an information pack for landlords, agents and tenants regarding deposits, disputes and damages which may be downloaded using this link.