Nuneaton Buy to let opportunity ready to let!

Good Afternoon to you all, i hope the wet weather isnt detering you from wanting to find that next ideal buy to let opportunity? it certainly isnt stopping me!

Whether you are a first time investor looking for a property which you can rent out straight away, or an investor looking to build on their existing protfolio, i think this property could be ideal!

Its a 3 bedroom end terrace house on Marston Lane, Atlleborough. It has a driveway for 2 cars, good sized back garden, conservatory and best of all its ready to be rented out upon completion. We have recently marketed several properties in this area- maple park and attleborough- and within 24 hours of them being advertised, viewings and applications have been submitted. Neddless to say, this is a highly sort after area for renters. Not only is it in the catchment for the local primary and secondary schools, but it is ideally situated for commuters with motorway links to the M6 and M69 being very close by.

The property is on the market with Up Estates with an asking price of £140,000. I think offers in the region of £135,000 would be highly favoured but be warned, i cant imagine this property will be on the market for long so viewings are reccomended asap. Rental wise- asking between £675 to £695 would definitely be achievable, and this in turn would give you an annual yield of 6.18% with the higher rental income. As i always point out, its important to look at the bigger picture also and what your investment property will be worth in a few years time, and the fact these houses rarely come on the market in this area, combined with the high demand for the area, can only mean this would be a sound investment.

property particulars

If you would like me to come with you on the viewing of this or any other property to give my opinion on its investment potential, please feel free to get in touch on 02477 674545

The drop in unemployment in Nuneaton, and how it affects the Nuneaton property market.

It was late May 2016, The Right Hon. Member for Tatton, Mr George Osborne, published an official HM Treasury analysis stating UK house prices would be lower by at least 10% (and up to 18%) by the middle of 2018 compared with what is expected if the UK remained in the European Union. So, almost 9 months on from the Referendum, are we beginning to show signs of that prophecy? The simple answer is ‘Yes’ and ‘No’.

Good barometers of the housing market are the share prices of the big UK builders. Much was made of Barratt’s share price dropping by 42.5% in the two weeks after Brexit, along with Taylor Wimpey’s equally eye watering drop in the same two weeks by 37.9%. Looking at the most recent set of data from the Land Registry, property values in Nuneaton are 0.4% down month on month so is this the time to panic and run for the hills?
Doom and Gloom then? Well, let me consider the other side of the coin…

Well, as I have spoken about many times in my blog, it is dangerous to look at short term. I have mentioned in several recent articles, the heady days of the Nuneaton property prices rising quicker than a thermometer in the desert sun between the years 2011 and late 2016 are long gone – and good riddance. Yet it might surprise you during those impressive years of house price growth, the growth wasn’t smooth and all upward. Nuneaton property values dropped by an eye watering 1.62% in September 2012 and 0.61% in November 2014 – and no one batted an eyelid then.

You see, property values in Nuneaton are still 8.58% higher than a year ago, meaning the average value of a Nuneaton property today is £158,621. Even the shares of those new home builders Barratt have increased by 43.3% since early July and Taylor Wimpey’s have increased by 37.3%. The Office for Budget Responsibility, the Government Spending Watchdog, recently revised down its forecast for house-price growth in the coming years – but only slightly.

The Nuneaton housing market has been steadfast partly because, so far at least, the wider economy has performed better than expected since Brexit. There is a robust link between the unemployment rate and property prices, and a flimsier one with wage growth. Unemployment in the Nuneaton and Bedworth Borough Council area stands at 1,384 people (1.1%), which is a huge drop of 26% from this time last year.

However, inflation is the only thing that does worry me. Looking at all the pundits, it will get to at least 3% (if not more) in the latter part of 2017 as the drop in Sterling in late 2016 renders our imports with higher prices. If that transpires, then the Bank of England, whose target for inflation is 2%, may raise interest rates from 0.25% to 2%+. However, that won’t be so much of an issue for borrowers as 81.6% of new mortgages in the UK in the last two years have been fixed-rate and who amongst us can remember 1992 with Interest rates of 15%!

Forget Brexit and yes, inflation will be a thorn in the side – but the greatest risk to the Nuneaton property market is the insufficient supply of properties keeping house prices artificially high. Good news for those on the property ladder, but not for those first-time buyers that aren’t!

How much would it cost to buy all the houses in Nuneaton?

This fascinating question was posed by the 14-year-old son of one of my Nuneaton landlords when they both popped into my office.
The very next weekend, I sat down and calculated what the total value of all the properties in Nuneaton are worth … and just for fun, worked out how much they have gone up in value since his son was born back in the autumn of 2002! I used information from the latest census, land registry and the ONS.
So, here you are…
In the last 14 years, since the autumn of 2002, the total value of Nuneaton property has increased by a staggering 98.7%. Interesting, when you consider the FTSE100 has risen by 68.9% and inflation (i.e. the UK Retail Price Index) rose by 38.7% during the same 14 years.

When I delved deeper into the numbers, the average price currently being paid for Nuneaton households stands at £158,621… but you know me, I wasn’t going to stop there, so I split the property market down into individual property types in Nuneaton; the average numbers come out like this ..

Nuneaton Property Market:

Average Value of a Detached Property: £252,606
Average Value of a Semi-Detached Property: £153,797
Average Value of a Terraced/Town House Property:£123,336
Average Value of an Apartment: £87,498

… yet it got even more fascinating when I multiplied the total number of each type of property by the average value. Even though detached houses are more expensive, when you compare them with the much cheaper semi-detached houses, you can quite clearly see detached properties don’t fare much better in terms of total pound note value of the semi-detached houses.

Total Value of Nuneaton Detached Properties : £3,224,262,984
Total Value of Nuneaton Semi-Detached Properties: £3,122,232,897
Total Value of Nuneaton Terraced/Town House Properties: £1,745,944,416
Total Value of Nuneaton Apartments: £595,773,882

A GRAND TOTAL OF…. £8,688,214,179 !!

So, what does this all mean for Nuneaton? Well as we enter the unchartered waters of 2017 and beyond, even though property values are already declining in certain parts of the previously over cooked Central London property market, the outlook in Nuneaton remains relatively good as over the last five years, the local property market was a lot more sensible than central London’s.
Nuneaton house values will remain resilient for several reasons. Firstly, demand for rental property remains strong with continued immigration and population growth. Secondly, with 0.25% interest rates, borrowing has never been so cheap and finally the simple lack of new house building in Nuneaton not keeping up with current demand, let alone eating into years and years of under investment – means only one thing – yes it might be a bumpy ride over the next 12 to 24 months but, in the medium term, property ownership and property investment in Nuneaton has always, and will always, ride out the storm.
I called the interested boy to tell him my findings… “Oh” he said, “That’s a lot of money…!”

If you have any bizzare wonderings about the Nuneaton property market that you would like answered, drop us a call or and email and we’d be happy to help you get some answers…and maybe even make an article out of it.

Or, if you want to be part of the statistics in a similar article in the future and wish to sell your Nuneaton property, please feel free to give us a call on 02477674545 or visit our website for more information and arrange a free valuation http://www.qthomes.co.uk/

7% yield on a great potential Nuneaton Buy-to-let!!

I think I may have found my favourite potential buy to let star buy property ladies and gentlemen!

As I do every day, I go through rightmove and Zoopla hoping that there is that one property, that hidden gem, that could make one of you lovely buy to let investors some decent yield! And I do believe this property will do that and more!

It is currently a very internally run down property, so it’s a project to be started from scratch- which if you ask me is great! It’s a blank canvas!

It is on the market with Hawkins at £110,000. It is a 4 bedroom terraced house on the Coldwell estate, a stones throw away from George Eliot school. I in fact with one of our landlords not long ago to view an identical house on the same road, the only difference was that it didn’t need quite as much work doing to it. Needless to say, it got snapped up in a matter of days way below asking price as I know the sellers wanted a quick sale!
This house is situated on an ex council estate, but the estate itself over the years has had a lot of work done to it, and alot of the properties are now owner occupied. It’s ideal for families trying to get their children into the High School- George Eliot- as its quite literally on the doorstep. It is also close to the town centre and a short work to Attleborough Village where you have all your local Amenities.

property details

I think you could easily go in with a substantially lower offer of £95k with a maximum offer of £100k. Allowing between 10 and 15,000 pounds to then fix up the house. Once the house has been modified and done up to a high standard, I believe, regardless of area, you could ask £675 PCM rent on this property. The would then give you an annual yield of just above 7%!! Not only that but you would added substantial value to the property which could allow you to take money out of it, in order to buy your next!!
Some property investors, especially those looking for buy-to-lets, like a house that is just ready to move tenants into once the sale is completed, then you get some who would jump at the chance of a project such as this! Different strokes for different folks!
I know the house I went to look at on the same road got snapped up with days, so if this is something you are interested in, I would hesitate in getting a viewing sorted!
If you would like me to come with you to offer my advice, I would be more than happy to come, you can call me on 02477 674545.

What risks are Nuneaton’s Accidental Landlords taking??

In today’s economy, there are plenty of tricks you can use to save money, but some landlords are taking that a step further. According to research from LV landlord insurance, there is a surge in ‘accidental’ landlords across Nuneaton as people are attempting to boost their income by letting properties privately to save on agency fees.

An Overview of Britain’s Landlords

Over 7% of adults in Britain rent out a property to help to supplement their income and receive an average of £678 per month. This equates to almost £28bn per annum across the country.

Landlords in London and the South East collect the highest (average) rents at £1,079 and £819 respectively. This is followed by the West Midlands at £678 and then East Anglia at £676.

The driving force behind this trend of 55% of accidental landlords (renting out property they never intended to) varies, from wanting a bigger property (15%), moving for work (10%) or even wanting a garden (6%)! Another 6% of landlords say they ended up renting out a property because they moved in with a partner and didn’t want to or couldn’t sell their own.

Landlord Responsibilities

Whatever the reason may be, all Nuneaton landlords must comply with current regulations and legislation.
All landlords must ensure that gas equipment (boilers, cookers, etc) are installed and checked annually by a registered Gas Safe engineer. All electrical installations must be safe. Tenant deposits must be held in a deposit protection scheme and some local authorities have mandatory licensing for landlords.

A managing agent will usually take responsibility to ensure that all legislation is complied with, for a fee, as well as check tenants and manage the rent collection, repairs, inspections and deal with the end of a tenancy. Almost half of today’s amateur landlords manage their rental property on their own and do not have such protection.

Of those self managing their properties, 27% have not had a gas safety check in the past twelve months and risk being prosecuted and fined up to £20,000.

Non-Compliance

As well as exposing themselves to fines from the local authority, Nuneaton landlords could find themselves heavily out of pocket if one of their tenants decides to make a claim against them. For example, a landlord could be sued by someone who falls and is injured because a pathway has not been maintained.

Landlords can also be liable for damage to adjacent properties, such as an overflowing gutter causing water damage to a neighbouring house. Analysis of the data shows that the number of liability claims being made against property owners has been steadily increasing in recent years.

Other Impacts

The insurance needs of a rented property are very different to those of an owner-occupied home. Standard home buildings insurance will not usually cover homes that are tenanted. Almost a third (32%) of Nuneaton landlords say their rental property has been damaged at some point and has had to be repaired, which has cost them £1,200 on average. Of those who have had their property damaged, the main cause has been damage by tenants (44%), followed by flooding (17%) and storm damage (8%). 19% of those who rent out houses – equivalent to over 400,000 landlords(UK) – do not have appropriate insurance in place and might not be covered should the worst happen.

Renting out a property can be a great way to cover your costs if you are unable to sell or want to hold on to a home and make some extra money from it, but it is not without risk. In order to mitigate those risks, we would always advise that you speak to a reputable agent who will help to guide you and show you how to protect yourself against many risks you may not have even considered.

If you are looking for an agent that is well established, professional and communicative, then contact us to find out how we can get the best out of your investment property.

Email me on info@qthomes.co.uk or call on 02477 674545. If you are in the area, feel free to pop into the office – we are based on Bond Gate, right next to the train station. Or feel free to visit our website www.qthomes.co.uk

Is the Nuneaton Buy to Let market over saturated?

If I were a buy to let landlord in Nuneaton today, I might feel a little bruised by the assault made on my wallet after being (and continuing to be) ransacked over the last 12 months by HM Treasury’s tax changes on buy to let.

To add insult to injury, Brexit has caused a tempering of the Nuneaton property market with property prices not increasing by the levels we have seen in the last few years. There is even a possibility we might even see a very slight drop in property prices this year and, if Nuneaton property prices do drop, the downside to that is that first time buyers could be attracted back into the Nuneaton property market; meaning less demand for renting ( ie rents will go down).

Before we all run for the hills, all these things could be a blessing in disguise to every Nuneaton landlord.

Nuneaton and Bedworth has a population of 125,252(according to the 2011 census), made up of 54,167 households so when I looked at the number of households who lived in private rented accommodation the fact that there were 6480 was a surprise to me.

Yields will rise if Nuneaton property prices fall, which will also make it easier to obtain a buy to let mortgage, as the income would cover more of the interest cost.

If property values were to level off or come down that could help Nuneaton landlords add to their portfolio. Rental demand in Nuneaton is expected to stay solid and may even see an improvement if uncertainty is prolonged. However, there is something even more important that Nuneaon landlords should be aware of, the change in the anthropological nature of these ‘20 something’ potential first time buyers.

Last weekend I attended the wedding ceremony of an extended family member. I got chatting with my cousin and her partner. Both are in their mid/late twenties, both have decent jobs in Nuneaton and they rent. Yet, here was the bombshell, they were planning to rent for the foreseeable future with no plans to even save for a deposit, let alone buy a property. I enquired why they weren’t planning to buy?

The answers surprised me as an early 1980’s baby and someone who bought their first property at the age of 22, and it will you. Firstly, they don’t want to put cash into property, they would rather spend it on living and socialising by going on nice holidays and buying the latest tech and gadgets. They want the flexibility to live where they choose and finally, they don’t like the idea of paying for repairs. All their friends feel the same. I was quite taken aback that buying a house is just not top of the list for these youngsters.

So, as 12% of Nuneaton people are in rented accommodation and as that figure is set to grow over the next decade, now might just be a good time to buy property in Nuneaton– because what else are you going to invest in? Give your money to the stock market run by sharp suited city whizz kids – because at least with property (it’s something you can touch) there is nothing like bricks and mortar!

If you wish to share your thoughts or pick my brains on the ideal investment property for you in the Nuneaton area, feel free to get in touch on 02477674545. Alternatively if you are looking for property to sell or looking for help with property management please feel free to take a look at our website www.qthomes.co.uk and get in touch by phone or email info@qthomes.co.uk

Nuneaton’s ‘Baby Boomers’ Vs Nuneaton’s ‘Millennials’

I was talking to my financial advisor friend the other day. He is an Independent Financial Advisor (IFA) who does both residential and commercial mortgages. Recently we completed a property portfolio review for a Nuneaton Landlord. We got talking about the current mortgage market and why Nuneaton youngsters were choosing to rent. It was fascinating listening to a different point of view which I thought my blog reading friends on here may be interested in.
Some property experts are directing the current crisis towards the 55 to 70-year-old Nuneaton citizens.
Also known as the ‘Baby Boomers Generation’, these Nuneatonl people were born after the end of the Second World War when the country saw a massive rise in births as they slowly recovered from the economic hardships experienced during wartime.
Throughout the 1970’s and 1980’s, they experienced (whilst in their 20’s, 30’s and 40’s) an unparalleled level of economic growth and prosperity throughout their working lifetime on the back of improved education, government subsidies, escalating property prices and technological developments, they have emerged as a successful and prosperous generation.
…Yet some have suggested these Nuneaton baby boomers have, and are, making too much money to the detriment of their children, creating a ‘generational economic imbalance’, where mature people benefit from house-price growth while their children are forced either to pay massive rents or pay large mortgages.
Between 2001 and today, average earnings rose by 67%, but average Nuneaton house prices rose by 187%!!
The issue of housing is particularly acute with the generation called the Millennials, who are young people born between the mid 1980’s and the late 1990’s. These 18 to 30 years, moulded by the computer and internet revolution, are finding as they enter early adult life, very hard to buy a property, as these ‘greedy’ landlords are buying up all the property to rent out back to them at exorbitant rents… it’s no wonder these Millennials are lashing out at buy to let landlords, as they are seen as the greedy, immoral, wicked people who are cashing in on a social despair.
Like all things in life, we must look to the past, to appreciate where we are now.
The three biggest influencing factors on the Nuneaton (and UK) property market in the later half of the 20th Century were, firstly, the mass building of Council Housing in the 1950’s and 60’s. Secondly, for the Tory’s to sell most of those Council Houses off in the 1980’s and finally 15% interest rates in the early 1990’s which resulted in many houses being repossessed. It was these major factors that underpinned the housing crisis we have today in Nuneaton
To start with, in 1995, the USA relaxed its lending rules by rewriting the Community Reinvestment Act. This Act saw a relaxation on the Bank’s lending criteria’s as there was pressure on these banks to lend on mortgages in low wage neighbourhoods, as the viewpoint in the USA was that anyone (even someone on the minimum wage) who was a working class person should be able to buy a home. Unsurprisingly, the UK followed suit in the early 2000’s, as Banks and Building Society’s relaxed their lending criteria and brought to the market 100% mortgages, even Northern Rock started lending every man and his dog 125% mortgages.
So, when we roll the clock forward to today, and we can observe those very same footloose banks from the early/mid 2000’s that lent 125% with just a note from your Mum and a couple of breakfast cereal tokens, ironically reciting the Bank of England backed hymn-sheet of responsible-lending.
My friend, the IFA, informed me that on every first time buyer mortgage application, they are now looking at every line on the 20-something’s bank statements, asking if they are spending too much on socialising and holidays… no wonder these Millennials are afraid to ask for a mortgage as more often than not after all that; the answer is “Computer says NO!”.
Equally, you have unregulated Buy To Let mortgages. As long as you have a 25% deposit, have a pulse, pass a few very basic yardsticks and have a reasonable job, the banks will literally throw money at you… I mean Virgin Money are offering 2.99% fixed for 3 years – so cheap!
If you are a first time buyer and don’t know where to start or are already on the property ladder but need further advice, please feel free to give us a call and we shall do what we can to help you out. Alternatively, if you are in Nuneaton town, feel free to pop in and see us on Bond Street, we’re just by the train station.

ASK MEL- “How do I serve notice on my tenant?”

Dear Mel,

I’ve been enjoying yours and Mariam’s blog for some time now and have found the recent addition of ‘ASK MEL’ useful. I thought I’d write in and if it makes for blog worthy reading, please feel free to share your answer on the blog as I’m sure it will help other landlords like me.

I’m relatively new to being a landlord. Truth be told, I fell into it accidentally.

My situation is this- I have a tenant who pays the rent as and when she feels like it. It’s currently up to date but never paid on time or all at the same time.

During the inspection of the property, not only was I extremely disappointed with how the property was being kept but, she’d also got a dog without my permission. What also annoyed me was that she lied about the dog, saying she was dog sitting for a friend but, when I asked the neighbours they confirmed it was hers and she’d had it for some time.

My gut instinct is telling me that this will only get worse and I think it’s best that I start looking for a new tenant. How do I go about serving her notice?

I look forward to your reply (and possibly seeing it on the blog!)
-Sam

Mel’s Reply

Hi Sam,
I’m really glad to hear that you’ve been enjoying the blog and finding the ASK MEL articles useful. Congratulations on falling into the roll of Nuneaton Landlord. It may not always feel like it, but you’ve made a great decision.

You are clearly upset about the situation, which is understandable and, you are able to serve your tenant notice but, this should always be the last resort. I know it can sometimes be awkward for landlords to speak openly about issues with tenants, but, have you tried addressing your concerns with the tenant?

If you explain to her what you expect from her, with regards to rent being paid by standing order on the same day each month because it is causing too much confusion with finances, then she may be more willing to rectify the problem as she will not want to ‘rock’ the proverbial boat.

With regards to the dog, you could let her know that in getting the dog, she has breached her tenancy agreement and perhaps even your insurance? which would give you reason to serve her notice, or, alternatively, you could ask for a pet deposit. Think how much it could costs to have all the carpets cleaned, have the house professionally cleaned and possibly a treatment for fleas. We usually ask for £250 and state that it is non-refundable.

If you’ve tried everything but you’re still adamant that you want to serve her notice then you will need to serve her with a Section 21 (I think this would be the most suitable notice for your situation, from what you have said in your email), which sounds simple enough.

However, you need to take into account the following:

• A Section 21 cannot be served any earlier than 2 months before the end of the current tenancy agreement. So, if you are 3 months into a 6 month AST then you will have to wait another month until you can serve her notice.
• If you took a deposit did you protect the it in an authorised deposit scheme within 30 days of receiving the funds?
• Did you provide the tenant with the prescribed information within 30days of receiving the deposit?
• Have you provided the tenant with an up to date Gas safety certificate and EPC?
• Did you provide the tenant with a copy of “How to rent: the checklist for renting in England”?

If you have answered NO to any of the above questions (and your tenancy started after 1st October 2015), it is likely that your S21 possession claim will be rejected if it goes to court.

The above questions are but a few steps that landlords often forget to do and, as a result, can cause a lot of grief when it comes to regaining possession of your property.

If you do fall into this category, then it is certainly worth discussing further to see exactly where you stand. I am happy to answer any questions you have.

If you’ve answered yes to all of the above and the tenancy is due to end in the next two months or is on a rolling contract then you can proceed with serving notice. If you are not entirely confident in making sure it is served correctly, just give me a call on 02477 674 545 and I’ll help in any way I can.

As I don’t know the entire background of your situation, I do not want to assume one thing or another. There are a lot of things to check before serving a Section 21, but I have covered the most common problems above.

Hopefully you’ve found my answer helpful but, if you would like to discuss this further, please feel free to get in touch. We’re happy to help.

For anyone else reading this article- you may want to serve notice on your tenants for completely different reasons. I have tried to cover what I think to be the most common causes of failed S21 claims but, please ensure that you do your research or, if necessary, seek legal advice before serving notice to ensure you achieve possession of your Nuneaton rental. A Section 8 notice may be more suited to your situation and, depending on the grounds you can serve notice at any point during the tenancy and could have court date within 2 weeks to claim possession. Court Fees can be costly so you want to make sure you have a good case if it goes that far.

If you are looking to have you property managed to save you the ‘hassle’, then rest assured, we do serve relevant notice’s to tenants (if they are in breach of their contract) as part of our fully managed package. If you would like to discuss this further then please get in touch.

ASK MEL – What certificates do I need, by law, for my Nuneaton Buy-to-let at the start of a tenancy?

Dear Mel,
I’ve been reading up on the kind of documentation / certification that is required at the start of a tenancy but I’m a bit confused about what is a legal requirement and what is recommended. I’ve just purchased my first buy-to-let in Nuneaton and I want to make sure everything is done properly.
-Tim

Mel’s Reply:

Hi Tim,
Thanks for getting in touch and congratulations on your first Nuneaton buy-to-let. This is an incredibly exciting time but also a worrying one, as you said, you want to make sure you’re doing things right. It’s great to see you taking pride in your investment and taking the time to check what is legally required from you because it can be VERY costly if you are caught out or miss something.

As you said, there are legal requirements and then there are recommendations (I’d personally do what is recommended as best practice).

Gas Safety Certificate
This is a certificate which you are required, by law, to have done annually. It must be carried out by a registered Gas Safe Engineer. You need to give tenants a copy of this at the outset of each new tenancy. When the certificate is renewed, you should also provide the tenants with a copy. The cost varies from £45 – £85 Depending on who you use. Just make sure they are on the Gas Safety Register.

Electrical Certificate
Surprisingly, unlike gas regulations, there is no law that says you must have a landlord electrical safety certificate.
You must make sure that any appliance you provide is safe (complete a PAT test) and has at least the CE marking (which is the manufacturer’s claim that it meets all the requirements of European law).
But, I would certainly recommend having an Electrical Certificate done. Should any electrical fittings or appliances within your rental property cause harm to a tenant you could be held liable.
It is recommended that they are done every 5 years or at the start of each new tenancy. The cost of this is usually around £120-£150.

Legionella Risk Assessment
As a landlord, it’s your job to keep a house safe and free from health hazards. This also includes Legionella which is a type of harmful bacteria found in water and can cause a serious type of pneumonia (lung infection).
You have two options: 1) Instruct a company to do the assessment for you (usually around £50) or 2) Carry out the assessment yourself if you are able to complete it competently.

Energy Performance Certificate (EPC)
This certificate shows the energy efficiency of your property. It grades the property from A-G and also highlights ways in which you can make improvements. You will have had one when you purchased your property. Check the date it was done as they need to be renewed every 10 years.
As of April 2018 an rental property will need to have a minimum E Rating so, if your property is one of the older or poorly insulated properties, you may struggle (unless certain improvements are made- if they can be).
A copy of this needs to be given to the tenant at the start of the tenancy.

Smoke Alarms & Carbon Monoxide Detectors
Now, although this isn’t a certificate, I thought you should know that it is a legal requirement to have one smoke detector on each storey of your rental property and a Carbon Monoxide detector must be fitted in an room where solid fuel is used (e.g. log burner). As best practice, I put a Co2 detector in any room that has gas (where boiler is, if there is a gas hob, if there is a gas fire), but that is up to you.

So there you have it, a list of certificates that are either required by law or recommended. There are other things to consider at the start of the tenancy like the inventory, protecting the deposit, providing the correct documentation at the start of the tenancy. If you have any questions about any of these, or if you’re considering using an Agent to ensure it’s all set up and running smoothly with the right tenants, feel free please feel free to get in touch.

Email me on m.maycock@qthomes.co.uk or give me a call on 02477 674 545. You’re always welcome to pop in for a chat. The kettle is always on and we may even get the biscuits out. We’re just by the trainstation.

Nuneaton vs Coventry…is there really much difference for your BTL investment?

We get numerous landlords asking us which areas are best to buy in..Nuneaton,Bedworth, Coventry even? Well the answer is, in all fairness there isn’t a whole lot in it when it comes to numbers and yields. I spent a bit of time looking for one landlord in particular and produced a comparison report which I thought might be of interest to you guys, so pop the kettle on and get comfy… and feel free to let me know if you have of your own thoughts on the matter.

I selected two houses, both of which are similar size, one in Coventry and one in Nuneaton but both of which in similar areas.
The first house is a 3 bedroom ‘semi-detached’ on Queens road in Nuneaton. It is on the market currently for £124,950 with Pointons. This house is a good size and has lots of potential but it needs substantial modernising in order to get the higher level rents and interest from the types of tenants we all aspire to have. I think if they were to accept an offer of £120,000 and you had a budget of £10,000 to fix up the house, that would be more than sufficient in order to then charge a monthly rental of £650/£675. This would in turn give you an annual yield of 6.23% which in the grand scheme of things isn’t bad, but the same if not better can be achieved by investing less money and charging slightly lower rent on for example- a 3 bedroom terrace in Stockingford.

Location does play a huge factor in house prices as we all know, and with queens road being so close to town it is reflected in the asking price. It will also be very appealing to renters who working in and around town or even at the hospital as its all within walking distance.
In the last 3 months the average price paid for a semi- detached property on queens road was£173,497 and the current average value is £176,956.
So, even though the yield may not be as high as other properties, the value of the house once the improvements have been made will increase substantially, which lets face it… isn’t that a buy to let investors dream?

The second house is on Newfield Road in Coventry. A 3 bedroom semi up with Joshi Estates with an asking price of offers over £150,000.
This house is also in need of some modernisation, nothing a lick of magnolia and some new carpets wouldn’t fix. The kitchen and bathroom both look in good condition from the pictures. Houses like this in Coventry are renting for around £700-£750 PCM so going by the higher figure if you were to pay £151,000 for the property and spend maximum £2,000 on it, your annual yield would be 5.88%. However, like with the Nuneaton property, if you look at the average price paid for a semi detached property in this area over the last 3 months according to zoopla its £247,750 with a current average value of £177,468 . These figures are only a guide according to the area and similar properties shown, but it gives you an idea of the area and what you are getting for your money.

Coventry and Nuneaton are very much the same in terms of rental demands, no house will be on the market long and finding good quality tenants – done correctly- will not be an issue either, so void periods- in my personal opinion and experience- are not of concern in today’s market.

To summarise, whether you buy in Nuneaton or Coventry or anywhere in between, unless you snap up a bargain at auction and are in the business of fixing up a property cost effectively, what you will achieve from your buy to let investment isn’t too different. In a previous article I spoke about the pros of living in the town/city where you have you buy to lets… but if you were to use a reliable reputable lettings agency to fully manage your property efficiently, you really could live in timbuktu and just enjoy the rent hitting your account every month!
If you would like to speak to us with a similar quandary, or any other issues you may have with your current/future buy to let investments, please feel free to give us a call on 02477 674545