Where does all your 'buy to let' postage go?
Hey guys,
It's a question that I actually rarely get asked but I think it's an important one to consider as you may receive mail addressed to you at your buy to let property even though you don't live there.
Let's take a look at some of the things you need to consider:
Royal Mail Redirection Service
The first thing to note is that Royal Mail will not allow you to redirect mail unless you have a bill with your name and the address on it within the last 3 months. So in most cases this will rule redirection out.
This leaves us in a potentially vulnerable situation. How do we receive and act on time-sensitive material that comes through the mail? The short answer is that in most cases we won't. These things will sit in the mail box or be opened by the tenant.
But don't worry - there are a number of ways to ensure you'll be fine.
Here's a rundown on the types of mail you'll receive and how you can deal with it.
Managing Agents
Mail from your property's managing agent is the first in my list because it's the most important to deal with promptly. Best case scenario: your solicitor will provide your address to the other side's solicitor who will pass them on at completion when funds are remitted. This process normally works great.
I say normally, but not in every case. Whatever happens, it's essential that you contact them proactively to make sure that your mail is going to find you. If you don't, you're setting yourself up for a huge overdue bill, or worse. It doesn't matter what the excuse is, you're 100% responsible for this.
Mail addressed to 'The Occupier'
If a bill is not addressed directly to you then you don't have to pay it. So, if you don't have to pay it, who does? If the tenant is responsible then either ignore the bill or send the issuer the tenant's details and a copy of your Assured Shorthold Tenancy agreement.
What about bills in your name that aren't yours?
It's vital that you don't neglect it. Call the number on the bill. Talk to someone. Sort it out. If you leave it they may well register a County Court Judgement (CCJ) against you or even a default, even though you weren't responsible. If it's a CCJ, you'll have 30 days in which to pay it and it will be taken off your record. Thereby leaving no lasting effect on your credit file.
Be careful when you move property.
I learned this one the hard way. I moved house twice in a short space of time and had an outstanding mortgage arrangement bill which had been sent to me. Even though I didn't owe the money, because the broker l was dealing with had left the company so the new person didn't know our arrangement, they registered a CCJ against me. Now as soon as they did this the County Court tracked me down through the electoral roll (one of the reasons it's so important to keep it current.)
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Even though I didn't owe the money I paid it anyway and then chased them directly to get the money back. This satisfied the judgement within 30 days which then meant it could be removed from my file. At the same time I had a solicitor's letter drafted explaining the situation and in the end I got the money back.
Most importantly the integrity of my credit file was intact. Let me say that again!
Most importantly my credit file was intact.
The choice of being Right or Happy.
I had the choice to be 'right' or 'happy'. Right would have been to not pay them and fight them and maybe I would win. Happy was paying the bill, knowing my future ability to build my portfolio intact, and then with the stress gone, prove myself right.
Don't miss the bigger picture. The integrity of your credit file is the biggest picture. A £622 bill is insignificant in the grand scheme of your portfolio.
Who is responsible for Council Tax?
The person living in the property is responsible for council tax or if you are using it as a second home then you may be responsible. The important thing to remember is that your property is unfurnished and unoccupied. If your property is unfurnished and unoccupied then it normally you will have up to 3 months in any one year and you will not be liable for any council tax. The moment you furnish it, it may be considered a second home and you could be paying 25% of the council tax. The day the tenancy agreement begins is the day that your tenant becomes responsible for council tax.
What if the tenant doesn't pay a bill?
Quite simply, if the tenant doesn't pay a bill you are not liable, although you will be asked to provide the tenancy agreement proving you were not liable during the period.
Changing your Home Address
The most important thing to do when you change address is to spend some time calling and writing to everyone including:-
My Full Management Strategy
The best way to overcome all of the mail problems is to choose a full management strategy on all of your properties. This way you can be forwarded the mail and the agent will also take care of the setting up of bills for the tenants as well.
My only clause on full management is that you find out exactly what is involved with each agent. Full management means so many different things to different agents.
Personally, as long as the letting agent knows my address and the managing agent has my address then I let the rest sort itself out. Some may say that's a little irresponsible but in truth there isn't much more you can do without committing a heap of time and energy, which basically means I cannot set and forget my portfolio.
Live with passion,
Brett Wood Rental agents, tenants, local council, electricity, gas, water, managing agents, property club/agent you bought the property through. Solicitor you bought the property through. Mortgage company & broker.