Monday 1st of November 2010
If you think that letting your property might be the answer to your problems, then make sure you know your market!
It might seem like the ideal solution if you’re having trouble selling your property, but prospective tenants are fussier than they used to be, and if the house or flat isn’t up to the standards they are looking for, you could be left with an empty property and no potential income from it.
What are Potential Tenants looking for?
The main factors that will influence whether your property is suitable for being let is its location, the type of property it is, and the physical condition it’s in.
If you’re lucky enough to own a large house with several bedrooms, close to transport links and local universities/colleges, you could have a ready-made income from the student market. What are the selling points of the property – how close is it to local shops and leisure facilities?
You might find that in your area family homes are really sought after – or commuter-friendly one bedroom flats could be at a premium. So it is a good idea to speak with a couple of agents who specialise in the area your property is in. They will tell you firsthand what the demand is.
Is your property in the centre of busy commuter village easily accessible to the city? If so the chances are this will be an area which is popular with professionals, and there will be lots of similar properties on the market. Your property therefore has to be a very good standard suitable for this market.
What is the condition of your property?
People won’t settle for badly kept properties any more – there’s too much competition in the rental market. Tenants are usually looking for a property with, at the very least, a clean modern bathroom and a fitted kitchen.
When it comes to the fixtures and the decor, don’t cut corners. Try and get higher quality appliances, and bathroom fitting, and make sure that the property looks good when you show people around. Redecorate in neutral colours and replace any tatty carpets or curtains.
These little details may seem insignificant but they will make the world of difference to a potential tenant. Remember that it’s not like selling a house where people can see the potential to ‘do up’ a property – as tenants rather than owners they will have to live with those carpets or that wallpaper and if they hate it, they will pass.
Prospective tenant like to see the finished article, they don't want to imagine what the property will be like when it's finished! You will miss out on many opportunities to let your property if it isn’t ready!
Is it suitable for the student market?
Letting out your house to students has long been seen as a good but-to-let investment idea, and it’s always going to be a popular way of making money from rental. If you live in a town or city with a thriving student population (Manchester for example), it could be a way to make some significant money from your property.
To be able to let your house to students you’ll need to be in an area that’s popular with the student population, the areas that attract them are usually close to the universities and colleges themselves, and within easy reach of all the local amenities (and pubs).
City centres are also very popular with students, with purpose built university apartments now being offered with en suite facilities, and now much more affordable. With this in mind, if your property is a traditional property and not a new-build, then these in particular have to be of a very good standard. Students expect a lot more these days, any property which is in disrepair or shabby will not let! You have to go make sure it is appealing with up to date appliances, WIFI connections and even SKY TV packages.
There is also a huge amount of legislation covering the student property market, and if your property is over 4 beds then it must adhere to HMO legislation. RM can is expert in this field and can advise you in depth.
Tags: Landlords(8) Investment(10) Permalink
Monday 1st of November 2010
When I started investing in the late 1990's, I was lucky enough to be working in a letting agency, where I had all the expertise and knowledge to hand. During this time I saw many Landlords turn to us once the novelty of managing their property had worn off; in particular after the first instance of their tenants calling in the middle of the night!
It is still true today that the majority of new Landlords whether it is an accidental or a planned investment strategy, choose to manage the first property themselves. They think they would rather save themselves the fee, believing that agents don't work hard enough for their money. This may be true of some agents, but the good ones work very hard indeed! With all the possible pitfalls, and new legislation to keep abreast of, it makes financial sense to hand the job to professionals.
Here are some pointers to guide you when looking for a good agent, and some things to consider....
1. Do you have a recommendation? Do you know someone who has had a positive experience to report, and then a recommendation is an excellent way of beginning the search.
2. Is the letting agent proactive? The best of letting agents will always be proactive in everything they do, from advertising to inspection. How to tell if they are proactive? Put them on the spot; ask them to outline how they ensure that your property is being looked after by the tenants. Do they check on the property at regular intervals, as this is very important! Tenants, who know that they will be checked upon, will make an effort to look after the property. Does the agent keep in touch with the tenant (not just when the rent is overdue!). Tenants, who don't clean their property, have problems bringing it up to the condition they took it when it is time to move out!)
3. Other points to take into consideration are, how much is the letting agent charging, and what for exactly? Do you think you are going to get value for money and the best possible service? Do you think you will be able to get on with the agent? Good relations with your agent are important. What level of service are they offering you?
4. Ask the agent to provide contact names and telephone numbers of their current clients; the agent will need to get permission, but if they have a good working relationship with the client this will not be a problem. Current clients will be more than happy to give the full story behind the service they receive.
Questions to ask the client: a. How many void periods have you experienced? b. Do you receive your rent pay out in a timely fashion on a set day each month? c. Is the cost of your repairs good value?
5. Does the agent appear to be a stickler for the Law? All properties require an EPC (energy efficiency certificate) prior to being advertised. They must also have a current Gas Safety certificate and a PAT test (Electrical Appliance Test). Is your furniture fire safe?
6. Is your agent associated with one of the professional lettings bodies for example 'The Property Ombudsman'? www.tpos.co.uk
7. Does the agent have Professional Indemnity Insurance? This is important you need to know that this is in place in case of any recourse.
8. Finally, do you need to go with a high street agent? No not necessarily, exceptional service does not start with a shop front. As long as the agent uses the majority of the large advertising property portals, and has a proven track record of letting your type of property, with happy clients; then these are the important factors.
You will also find that non high street agents have fewer overheads and will pass these savings on to you! You may also find that you receive a more tailored service, and smaller agents will be far more committed to their clients.
Railton-Meeks are of course biased, but we have been servicing very happy Landlords for many years. Our clients feel they receive the best service out there. One very important point – when our clients want to see us, we pay them a house visit, no more parking problems on the high street!!
Tags: Landlords(8) Letting Agents(1) Property Mangement(1) Landlords(8) Permalink
Tuesday 20th of April 2010
Tuesday 2nd of March 2010
