We may be enjoying a milder autumn, but winter is coming and property investors need to be vigilant.
Winter 2022/23 will present more challenges to property owners and residents as we all try to cut the cost of heating our homes. Temperatures inside properties that are not adequately heated or ventilated can fall to very low levels, even accounting for any heat retained within the fabric of the property from the very hot summer. Consistently very low temperatures can bring dampness and other problems. Now’s the time to winter-proof your property investment.
In case you’re wondering what cold temperatures and dampness have to do with accountancy?
Rackhams Accountants doesn’t simply advise clients about business accounts and taxation, we help support their wider financial interests too.
Ownership of investment property as part of a financial portfolio is at an all-time high. Whilst many investors will use professional property management services; it’s always advisable to be aware of the issues, ask the right questions and make any necessary checks yourself.
Landlords’ and tenants’ responsibilities
What starts as a minor issue can quickly develop into an expensive problem. A landlord has a responsibility to provide a home fit for habitation, but likewise, the tenant has to report problems and take reasonable steps to prevent problems from forming in the first place.
It’s different if the property is unoccupied.
If the property is unoccupied:
Make periodic visits or arrange for someone to inspect on your behalf.
Look. It takes a while before damp patches appear, or wallpaper starts to peel. Act sooner rather than later if those things are already noticeable. Also look for patches of mildew on walls, around window frames and on enclosed chimney breasts.
Smell. Don’t ignore smells of dampness or a mushroom or fungal aroma, especially when you first enter the property. This could indicate damp problems or even dry rot.
Listen. You can often hear drips before you notice the damage they cause, especially in lofts or between wall cavities.
These simple observations can tell you about the things that need attention, but what about prevention?
Maintain a safe temperature. Whilst it’s tempting to turn the heating off completely in unoccupied properties, it’s a false economy. An unoccupied house can quickly become freezing. This heightens the risk of water pipes freezing. This puts pressure on the joints which can lead to a leak as the pipes defrost. The same goes for water tanks and immersion heaters. The damage can be catastrophic.
Regulate stop-taps. Turning off the stop-tap inside the property but leaving the external one open releases water inside the pipes. This creates space for any remaining water to expand if it freezes without bursting the pipe.
Touch the radiators from top to bottom. If the heating is on, but one or more radiators aren’t at the same temperature all the way down, they could need bleeding.
Check your insurance policy. What are you covered for?
Clear dead leaves. Leaf build-up can form blockages, particularly in guttering, which can lead to damp problems inside the property.
If the property is occupied
You’d reasonably expect the tenant to be watchful for anything you need to be aware of, either as maintenance or security concerns.
Encourage your tenants to keep the house at a reasonable temperature and aired. Condensation causes many damp problems through inadequate air flow or excessively low and high heat.
Ask the tenant to report any potential problems, however small. By the time the annual inspection comes around, a preventable problem may become a major headache for you and the tenants.
Make sure your tenants know what to do in an emergency, where the stop-cocks are, how to use the heating, and what you’d like them to do if they leave the property whilst away on holiday, for example.
Make sure they have emergency contact numbers and more than one way to get in touch with you or the managing agent, especially out of hours.
Property Maintenance Checklist: Winter-proof your property investment
Use our handy ‘winter-proof your property investment’ checklist to help you avoid any nasty surprises and avoidable maintenance bills.
Occupied property:
Heating system:
[ ] Annual boiler maintenance
[ ] Radiators checked and bled, if necessary
[ ] Radiator thermostatic valves fitted and adjusted
Damp:
[ ] Problem or likely areas checked for early signs, including odour.
Water:
[ ] Internal stop-tap checked
[ ] External stop-tap checked
[ ] Guttering checked for leaks and leaves
[ ] Land drains cleared of leaves and debris
Roofing and windows:
[ ] Roof checked for slipped or missing slates
[ ] Window frames checked for water ingress
[ ] All doors/windows security checked
Unoccupied property – As above, plus:
Heating system:
[ ] Boiler left on frost or winter setting
Outside lighting:
[ ] Lighting checked and cleaned
[ ] Lighting timers set or adjusted
Outbuilding and garages:
[ ] Checked for signs of rough sleeping or unauthorised storage
Neighbours:
[ ] Courtesy check for any problems or unusual activity
For more guidance on financial matters for property owners – see our recent articles:
Tax considerations for property investors:
Part 1: Private landlords: https://www.rackhamsaccountants.co.uk/2022/03/02/tax-matters-for-private-landlords/
Part 2: Setting up a limited company for buying and letting property: https://www.rackhamsaccountants.co.uk/2022/06/01/own-rentals-as-a-company/
And because we all need a little extra help this winter…
We’re here to help
We help many clients manage their personal tax affairs, including setting up limited companies for property management.
Call us on 01482 631700 to arrange a confidential appointment.
Property Investment Explained…
Information correct at time of publication
