Landlords at times shy away from hiring letting agents to manage rental properties, assuming they can look after it themselves and save money.
However, despite what some landlords feel, property management is more than just an insurance policy, the occasional phone call to or from a tenant, and a quick lick of paint every so often. Many landlords often realise at a later stage just how much is involved.
It is a popular misconception among Landlords who own unfurnished properties that there is no need to have an inventory.
How wrong they are.
A property consists of more than furniture or what is known as loose contents, without stating the obvious, there as walls, ceilings, doors, windows, carpets, curtains, kitchen units, worktops. All of these have a condition when the tenancy commences.
Failure to have a comprehensive form of condition, can leave the landlord with expenses he did not expect, due to damage to doors, walls, carpets and worktops etc. Landlords can avoid these costs by having a professional check-in and check out.
So your walls were magnolia when the tenant moved in and now they are mauve. The carpets were new and now they look like a car engine has been dismantled in the middle of the lounge.
It’s easy to just take it from the deposit right? WRONG….. Long gone are those days, when it was up to the outgoing tenant to argue. These days the boot is firmly on the other foot.
It is no good just having a sheet of A4 paper just saying Magnolia Walls, beige carpets, without any form of condition or description. Many landlords loose the arbitration case, due to lack of firm evidence of the original condition, leaving the Landlord having to cover all of the costs himself. It requires no imagination as to the cost of extensive cleaning, repairs and redecoration that is often needed.
According to the Association of Independant inventory clerks, the most common damage found in unfurnished properties includes the following:
On average a check in and checkout costs little more than £50 on each occasion with the Landlord either paying for the check in or checkout. Which has to be a bargain when you consider how much the costs could be otherwise
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If you are considering investing in Bristol or need assistance with your existing portfolio, I have over 15 years experience in Letting and Property Management in Bristol, letting properties from studios to Penthouses. Feel free to call me today on 0845 652 1428 or contact me at www.igloolets.com
Interest rates have never been lower, with rents rises and house prices falling, if you have some spare cash is now the time to jump into the buy to let market. The purchase of a Studio flat does not often require such a large capital outlay. But do studio flats make such a good investment?
Often cheaper to purchase than a one bedroom flat, purpose built studios are often no very big in terms of square footage, and compromising on space for the sake of initial out lay may not represent value for money. Increasingly Estate agents value properties on square footage, which may well in real terms not make studios so appealing.
As with all property investments, location is key, when investing in a studio flat. Studios have a more limited appeal. Estate agents will often have studios on their books for a lot longer than other types of flats, due to their postcodes and the demographics of the area. Whilst those in core city centre locations being snapped up straight away.
There are some drawbacks to consider when considering investing in a studio, space is one. If you have additional bedrooms, it does provide you with the option to appeal to a wider market. Tenants do not often stay for long periods in studios, and you therefore may well have increased costs with void periods and additional re-let fees. Also when the property market picks up again, it could mean it has less appeal should you wish to sell on.
Financing for a studio purpose can also prove to be hard. Mortgage providers are not always keen to lend on studios, often because lenders are concerned about the potential resale. Often lenders will not consider anything less than 380 square feet for mortgage purposes.
Despite saying all the above, studios can still make good investments, but location is the key. They can make ideal serviced apartments, or short term corporate lets. Look for prime central locations with good access to transport links and eateries. Look for locations in up and coming areas that attract professionals who have more disposable income.
Like with all investments there is always a risk, but with careful research a studio could well be the best investment for you.
If you are considering investing in Bristol or need assistance with your existing portfolio, I have over 15 years experience in Letting and Property Management in Bristol, letting properties from studios to Penthouses. Feel free to call me today on 0845 652 1428 or contact me at www.igloolets.com
No doubt you have heard the old adage ‘Something is better than nothing’ having been called a fair letting agent and also Landlord. I have always been an advocate of the deposit scheme. However, I know that not all Landlords and lettings agents have been.
Occasionally I am told by landlords that they don’t take a deposit, it’s not worth the hassle. This
kind of comment always amazes me. Even if your only just renting out rooms, to replace a well soiled carpet would cost you £150-200 pounds. Whilst you have to prove that the tenant damaged the property, prior to any deduction being made, if adequate preparation is made at the commencement of the tenancy, most disputes can be avoided.
With many tenancies these days’ deposits can amount to thousands of pounds. Often a clean and rectification of damage might only require spending a few hundred pounds. If you have no deposit to even start with your on a looser before you start! I would like to think that you are by now realizing where I am coming from.
To set the benchmark with properties that we manage, it is important to check the property completely before new tenants move in. Making sure that little niggly things are rectified. If your property is presented right at the start of the tenancy, more often than not the property is returned in a reasonable condition.
In my previous post “Why do I need an Inventory?”, if at the end of the tenancy you have a disagreement with your outgoing tenant about the condition of the property or ‘that inevitable red wine stain’ there is little point in beating yourself up over the best course of action you might just as well have it settled through the arbitration service which was set up as part of the Deposit Protection Scheme(s)
In the Housing Act 2004, a new law was introduced that meant any monies received by Landlords as a deposit must be protected within 14 days with one of the aforementioned tenancy deposit schemes. There are plenty of options for Landlords when it comes to choosing one, and the process is fairly straightforward, with the deposit normally being protected by the scheme until the end of the tenancy where it is returned to the relevant party.
As a leading lettings and property management agent in Bristol, we include protecting deposits as standard with both our Fully Managed and Let Only Service. We believe in having our Landlords covered.
If you are looking for further FREE information or assistance on renting out your property in Bristol, I have over 15 years experience in Letting and Property Management in Bristol, letting all various properties from studios to Penthouses. Call me today on 0845 652 1428 or contact me via our site www.igloolets.com
When valuing a property for letting I am often asked during conversation with Prospective Landlords, “How long will it take to let out my property” Each landlords circumstances are different, some want to hit the ground running so like to be prepared and think ahead. For some others they need to schedule maintenance works or remodeling improvements, in line with availability dates.
I would always say that the earlier you market the property, is better in the longer term.
If you wait until a property is vacant before you beginning marketing, you then have to allow the time it takes for suitable tenants to be found, referenced, safety checks and paperwork to be completed. In some cases the prospective tenant may even have to serve a month’s notice on their existing Landlord, before they can move in.
The problem with this is that there can be a lengthy delay between, periods, when someone actually expresses interest in a property and when actually funds actually begin to get to the landlord. Marketing a property earlier can reduce void periods between tenancies to a few days, even hours in some cases.
One secret to success in letting out your property, is to have it professionally managed by a letting agent specialist such
as Igloolets.com. It is a common trait of Landlords to focus on the initial let, but it is more important to focus on what happens during the tenancy and in between lets. If you decide to have your property managed, ask how your agents plans ahead , will they communicate with the tenants or expect the tenant to communicate beyond the fixed term of the tenancy, to find out their intentions.
Also ask to see the agents terms and conditions to see if there are any hidden charges, regarding renewal fees, Will the tenants be charged at the end of the first 6 months, this is often a big turn off to tenants when they are considering what to do at the end of the fixed term. Even for the Landlord paying an additional remarketing fee along with a void period may well mean you end up paying in more ways than one.
At igloolets.com we like to have regular communication with tenants and Landlords we feel I makes for a longer and better relationships. You can also be assured that at Igloolets.com were feel that charging a tenant and Landlord renewal or re=lettings fees on our managed properties is unfair. So you can feel confident that you will not be stung by any small print hidden charges.
Why not check out our website www.igloolets.com for more information, or call us on 0117 230 5056 you can also email us at admin@igloolets.com.
As a Bristol Letting Agent, I have seen numerous good and bad properties, and when tenants want to rent in bristol, they have quite a wide choice, so you really do need to get the fundamentals right.
If you really want to make a profit in the letting business, you need to show your properties to interested people. It’s just the same as if you’re selling your property, you need to make certain that your home is the preferred choice of potential tenants.
Kerbside appeal can also be a crucial aspect for prospective tenants, just as it is for buyers of homes.
Just how does your property really look, when you stand at the gate, peeling paint, dirty window sills, rubbish strewn about, grass that need cutting or borders over grown with weeds. If everything look like it is in disrepair and the house is not taken care of, it could potentially run off quality tenants.
Rental properties need to make a good first impression before they even walk into the door. The cheapest and most simplest of things can make a BIG difference to the front of the property.
Often just a good brush up and a bottle of weedkiller, is all that might be needed. If you have harsh concrete that is crazed and cracked, put down chard flint, which is a gravel that always looks clean, and does not attract dirt. Apply strong weedkiller, annually to keep weeds at bay.
Wash of your paintwork with a pressure washer can often look as if the property has had a fresh coat of paint. If you have borders in the garden often they can be more trouble than they are worth, if you can actually make then bigger they are more manageable as you can apply annually a covering of woodchip, which again suppresses weed growth. All of the above take little time or are high cost tasks.
Make sure that the property is very clean. Pay special attention to the toilets, kitchen and bathroom. Make sure everything is picked up and the house is tidy. Again, you want to make sure you make a good first impression to your prospective tenant. Never show a property that is in the process of being repaired or renovated, or even cleaned. Wait until everything is completed before you start showing the unit to potential renters. A fresh coat of paint to the walls can re-energise a room. If there are numerous chips of the paintwork, especially on stairs and architraves just use an artist brush and touch in those areas. It makes a difference and the eye is not drawn to the overall condition of the paintwork. One useful trick is to just paint the handrails up the stairs, again the eye is drawn to the rail missing the other areas.
Make sure the temperature is set in the property to take the chill or dampness out of the air, so that they are not uncomfortable when they arrive. If it is too cold chances are they will not stick around long enough to see what the property has to offer. You may also want to stop by the property before your appointment, perhaps 10 -15 minutes before, to be certain that everything is in order and that there are no problems. Pick up the post and hid it in a draw, mountains of old post, makes prospective tenants think the property has been on the market for a long time, and then begin to wonder why.
Make sure the lights are on and if during the day the curtains are drawn back to fully let in all the natural daylight, and please have a lampshade, for goodness sake they only cost about £1.50 for a paper lampshade and believe it or not give the house a lived in look, more so than just a barren light bulb holder.
Be sure you have the right key, etc. You would not believe what could go wrong before the potential tenant shows up. If the lock is stiff a quick squirt of WD40 makes all the difference, and avoid embarrassment of a sticky lock, which is difficult to open.
Finally, have the paperwork ready such as applications if the tenant is interested in the property. You want to be prepared in case they want to take application to the property. You do not want them to lose interest while you are looking for the applications. It is very unprofessional and is never a good idea.
At the close of 2010, the Royal Institution of Chartered Surveyors (RICS) predicted that house prices in Britain could fall more than 2% in the next year. Although, while this is bad news for homeowners, the fall in house prices could spur an increase in the level of interest in investing in property. Could, therefore, 2011 be the year of boom for Buy to Let?
At the end of the day, it pays to look at the long term in regards to investment in property. While housing prices are low now, they can only grow in the long term, which means that your property will gain positive equity.
Of course, renting property isn’t for everyone. Not only is it a long term commitment of hard work and dedication but it is also expensive. For most Buy to Let properties you will be required to pay at least 25% in way of an initial deposit. Similarly, there are various other costs to consider such as legal fees, letting agent fees and landlord insurance, just to name a few.
However, if you have the money to make that initial investment (and let’s face it, the rates of return on other types of savings and investments are hardly attractive at the moment), then Buy to Let could be the ideal solution. As lenders stick to tighter underwriting criteria than ever before – particularly for first time buyers – more and more people are driven to renting.
If you are interested in dabbling in the Letting Market but are unsure whether or not it will be a long term benefit for your personal circumstance, then you are advised to weigh up the following specifics. First, determine your projected rental income, this, above all, will highlight if the investment will be worthwhile in the whole. Also, calculate how much you’d intend to charge in rent and compare this with current rental costs on the market. Finally, you must predict what your ongoing spending will consist of, for example maintenance, insurance etc.
In order to work out these exact figures, it is advisable to seek help from an independent financial adviser. However, if you would like to try it out yourself, the basic calculation is as follows: Total projected rental income minus Total annual costs divided by Total initial costs. So these include all of the factors mentioned above such as the initial deposit, the mortgage repayments, letting agent fees and general maintenance and repair fees including initial decoration and furnishing required at the beginning of a tenancy.
These calculations are important as they allow you to determine whether or not investing in property will be worthwhile. Additionally, organising your figures and paperwork will prove to your mortgage lender that you are serious about the decision to rent property, so they will be much more likely to lend to you. Also, as the calculations are all based on estimates, you are given a certain degree of flexibility with your figures, over compensating or under compensating to ensure that you will be able to cope in a fluctuating market.
The specialised nature of Buy to Let finance means that the best value for money will not be found on the high street. Looking for a mortgage broker is the advisable route to take in this instance, as they really do know their stuff regarding the Buy to Let market.
It is even more important that you approach a broker if this is the first time you have looked into renting property. Independent brokers who work on a ‘whole of market’ basis will be able to help you find the best rates and deals on the market. They will additionally be able to understand your personal circumstance and exactly what form of mortgage or financial assistance would suit you best.
So, is 2011 the right time to Buy to Let? With the housing market as it is at the moment, now has never been a better time to enter the letting market. The environment is favourable for landlords and demand for rented property is increasing almost daily. So, if you are looking for a new adventure as we enter the New Year, then consider buy to let as the biggest and best investment of your lifetime.
If your considering investing in property in Bristol, why not give me a call, I have been a specialist in the private rented sector in Bristol for over a decade.www.igloolets.com or you can contact me 24/7 on 0845 652 1428
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As a Bristol Letting Agent with, over 15 years experience, letting all types of property through out Bristol, from studios to Penthouses, one would like to say I have seen it all, but I know that life (especially in this game) is an education every day.
With regard to cannabis farms, I have seen them in the process of being made, in full growing mode, and also the devastation after the growers have left.
According to a recent report, there were at least 6,886 farms found in the Uk last year alone, That’s not taking into consideration the undetected ones.
Naturally most landlords would not even consider, for one second that their property could be used as a cannabis farm. However, the largest percentage of these farms were set up in typical rented properties. Such as houses in cul de sac’s, terraced house and semi detached properties.
Typically a landlord or letting agent is duped into renting out his property to a front couple who start off the tenancy and then hand the keys over to a gang of organised criminals. Once the gang have moved in and begun the conversion process the damage to your property can be severe.
What is most likely to happen?
Cannabis farmers are known to be quite ruthless in the alterations they make to gain the maximum growing potential from the properties they rent. The damage can vary from moderate to extreme but it’s common for there to be a combination of electrical, structural and water damage after a property is used as a cannabis farm.
Internal walls are often knocked down, doors and partitions removed to make additional growing space for the crops. Elaborate, badly built irrigation systems are used to feed the plants, often leading to serious water damage. Damage to the electrical systems are common as farmers try to bypass the meter or overload capacity with the high-powerd growing lights they deploy. in a recent case, a gate at the side of a property was wired directly to the mains, am extreme DIY security measure that could have killed anyone trying to get access to the property.
How to take steps to avoid it happing in the first place?
Fortunately there are a few tell-tale signs to keep a look out for.
To begin with, it highlights the alarms bellls that should make a landlord suspicious of a tenant:
They also outline some steps a landlord should take that should deter criminals including cannabis farmers from renting a landlord’s buy-to-let rental property in the first place:
Tell tell signs at the property?
To be a victim of this crime, it is not only just the damage to the property, but also to the fact that you have been duped!, I am never sure which has the most devastating affect. It’s an ongoing and increasing problem, with over 20 farms being detected every day.
It is important that you have comprehensive insurance in place, and to make sure you follow the above precautionary measures. Or at least check up that your agent is making the appropriate measures.
None of us like to be a victim of crime, as there is always a cost to pay.
