We have so many landlords come to us when things go wrong with their tenants. This video aims to help you get it right from the start. If you would like to discuss anything mentioned in this video, please feel free to give us a call on 02477 674 545 or visit our WEBSITE
It’s now been a good 12/18 months since annual rental price inflation in Nuneaton peaked at 3.3%. Since then we have seen increasingly more humble rent increases. In fact, in certain parts of the Nuneaton rental market over the autumn, the rental market saw some slight falls in rents. So, could this be the earliest indication that the trend of high rent increases seen over the last few years, may now be starting to buck that trend?
Well, possibly in the short term, but in the coming few years, it is my opinion Nuneaton rents will regain their upward trend and continue to increase as demand for Nuneaton rental property will outstrip supply, and this is why.
The only counterbalance to that improved rental growth would be to meaningfully increase rental stock (i.e. the number of rental properties in Nuneaton). However, because of the Government’s new taxes on landlords being introduced between 2017 and 2021, that means buy-to-let has (and will) be less attractive in the short term for certain types of landlords (meaning less new properties will be bought to let out).
Interestingly, countless market experts assumed at the start of 2017, that the number of rental properties would in fact drop throughout the year. The assumption being as the new tax rules for landlords started to kick in, landlords looked to kick their tenants out, sell up and invest their capital elsewhere. (Although ironically that would lower supply of rental properties, decreasing the supply, meaning rents would increase again!).
Circumstantial evidence suggests, confirmed by my discussions with fellow property, accountancy and banking professionals in Nuneaton, that Nuneaton landlords are (instead of selling up on masse), actually either (1) re-mortgaging their Nuneaton buy-to-let properties instead or (2) converting their rental portfolios into limited companies to side step the new taxation rules.
The sentiment of many Nuneaton landlords is that property has always weathered the many stock market crashes and runs in the last 50 years. There is something inheritably understandable about bricks and mortar – compared to the voodoo magic of the stock market and other exotic investment vehicles like debentures and crypto-currency (e.g. BitCoin).
Remarkably, there is some good news for tenants, as Tory’s recently published the draft Tenants’ Fee Bill, which is designed to prohibit the charging of tenants lettings fees on set up of the tenancy. However, looking at evidence in Scotland, I expect rents to rise to compensate landlords, thus hammering faithful tenants looking for long-term tenancy agreements the hardest. This growth will be on top of any usual organic rent growth. It really is swings and roundabouts!
So, what does this all mean for landlords and tenants in Nuneaton? In my considered opinion,
Rents in Nuneaton over the next 5 years will rise by 8.9%, taking the average rent for a Nuneaton property from £675 per month to £735 per month.
To put all that into perspective though, rents in Nuneaton over the last 12 years have risen by 20.7%. In fact, that rise won’t be a straight-line growth either, because I have to take into account the national and local Nuneaton economy, demand and supply of rental property, interest rates, Brexit and other external factors.
In the past, making money from Nuneaton buy-to-let property was as easy as falling off a log. But with these new tax rules, new rental regulations and the overall changing dynamics of the Nuneaton property market, as a Nuneaton landlord, you are going to need work smarter and have every piece of information, advice and opinion to hand on the Nuneaton, Regional and National property market’s, to enable you to continue to make money.
If you would like to discuss any of the subjects raised in the article, I would be more than happy to have a chat with you and see how we can help.
T: 02477 674545
Now, I wasn’t sure whether to publish this article as it really is only my opinion but I figured “hey why not, I’m entitled to an opinion”…right? and I want to share it with all of our lovely readers and would love to know what you think. Here goes…
There was an article in the Coventry Telegraph quite recently (and you’re probably already aware of this) about a new housing estate to get given the go ahead in Nuneaton. Well, it’s not just any housing estate, it’s more like a village….on the Longshoot (up to the A5).
Now I have my own views on this as well as an objective view. I’m going to start with my view first (as my husband knows only too well) be prepared for sarcasm and ranting;
Those who bought their house on the longshoot a good few years ago when they looked out their window and saw green fields and had some sense of enjoyable environment must look out their window now and be furious! Faced with congested traffic throughout the day and hundreds of new homes (most of which look the same) and hundreds of new neighbours (that they probably didn’t want!).
Well these people are in for an even bigger shock when this plan gets approved (I say ‘when’ because, let’s face it, it’s GOING to happen…there’s so much money to be made!) because there will be another 850 houses to accommodate and, I imagine, at least double the amount of vehicles (if not more) to add to the, already congested, roads every day.
It’s ok though because they’re building a primary school as well *sigh*. I’m not entirely sure where the children will go when they’ve completed primary school because the other schools in Nuneaton are already overcrowded. Hopefully they will have learnt enough by the age of 11.
What surprises me the most is that there have only been 18 letters of objection to the proposed new Longshoot City! I think some of the other objections were ‘filed’ away…in the “we’ve already decided it’s going ahead” folder!
I also think this new development will really hinder any local properties from selling if people decided to up and leave the craziness of the longshoot. I feel genuinely bad for those who live nearby because the last few years have been chaotic enough with the, now built, developments on the longshoot and now they’re proposing even more upheaval! If you live on the longshoot or close by, you have my utmost sympathy.
I find all this talk of building hundreds more homes to help first time buyers very amusing. Are these houses REALLY going to be affordable for first time buyers or are they just going to be REALLY profitable for the developers and anyone else who’s ‘involved’?!
I may be an Estate Agent but I’m also a human being, a mother and have lived in Nuneaton all my life and I’m genuinely concerned that there won’t be a patch of grass or tree left in Nuneaton by the time my son grows up. I also feel genuine sadness for those who live nearby.
Nuneaton is fantastic place to invest in properties, there’s no doubt about that, and there are always going to be people wanting to rent, but what benefit will these 850 homes bring to Nuneaton? If anyone has walked around the town recently (to visit Poundland or the several hundred charity shops we have) you will know that a lot of time and money is better invested in our Town first before accommodating another 850 households.
I know I said I had an objective point of view but I really don’t. This one’s all personal.
*Please note that my personal views are just that, my personal opinion. I do not mean to offend or upset anyone by this article*
To read the full article by the Coventry Telegraph please click here
I’d love to know what you think so, please feel free to get in touch by phone 02477674545 or send me an email.
Recently, we’ve had a lot of interest from investors (locally and from further afield like London) looking to buy property in Nuneaton to turn into a House of multiple occupancy (HMO). Most of whom are aware of the current regulations and what does and doesn’t need to be licenced. This lead me to write this article to make people aware of what changes are afoot for HMO’s.
As of April 2018 new measures affecting HMO’s will impact around 160,000 landlord houses that have, to date, not been caught by the mandatory licencing scheme.
What are the changes?
Previous Housing Minister, Alok Sharma, announced that as from April 2018 landlords renting out ALL multi-occupied properties in England occupied by five or more people, from two or more separate households, whether they are one, two or three storeys, will need to hold a house in multiple occupation (HMO) licence. Minimum room size requirements for bedrooms in HMOs to help prevent overcrowding are also due to be brought into force.
What’s the difference?
Under the current administration any landlord with a property that has three or more storeys has to apply for a HMO licence. With the new changes ALL properties with 5 or more tenants from two or more separate households will require a HMO licence.
Why are these changes being made?
Currently far too many people are being exploited by rogue landlords whose goals are to get as many people in one space as possible to benefit from as much income as they can. These overcrowded spaces are often filthy, neglected and dangerous.
This new measure follows and consultation and is yet subject to parliamentary approval, however, I personally believe that this is something that is needed and will be approved. Tenants are entitled to a safe and comfortable living environment and, I’m sure, the GOOD landlords will be more than happy to adhere to these new regulations to ensure their tenants are provided the best possible living space as well as making a profit.
If you would like to discuss anything in this article, please feel free to give us a call on 02477 674545
QT Homes Website
LET’S GET READY TO RENT!
Check out my video on making sure you’re ready to take the leap into the world of renting property. If you would like any advice or help on any of the video content, please call 02477 674545 or feel free to visit our website
New Year New Solution for your Nuneaton Property!
Happy New Year folks! We at QT Homes hope you have had a restful, joy filled Christmas and feel ready to take on 2018, we sure are!
In 2017 we took a leap from just doing lettings, to going into Sales also, and it was a leap we are so glad we took! As we as landlords know, rental properties in Nuneaton don’t hang around for long at all, in fact more often than not we have tenants lined up for properties before the particulars have even hit Rightmove! Similarly with sales, with in the first couple of viewings, properties have been SSTC, and completing within a matter of weeks. However, we have had vendors contact us baffled as to why their property hasn’t sold and after talking to them have realised that they don’t necessarily need to sell their house right now, and that it could be they are asking too much because they are in negative equity and think their only option right now is to sell.
This isn’t the case at all, and if you’re in a similar situation we have the PERFECT solution for you!
Your current £100k property would sell in 5 years time for a guaranteed £121,665!!
If I told you you could rent your current marketed property for the next 5 years, with a guaranteed rental income for the term, to tenants who take care of all repairs and maintenance – who will then after the 5 year term buy your property at an annual 4% increase (agreed at the beginning of the term) would that not be amazing?
To see a full range of the services we offer, please visit our website :
Please click on the link below to find out about Rent to Own in more detail –
Even those who bought as recently as five years ago have seen house prices increase 24.2% in Nuneaton (31% nationally).
This, coupled with historically low interest rates, could mean there are ways to increase your exposure to the property market by purchasing a buy-to-let property, without using any of your own money.
Let me explain with an example of a landlord I helped recently (who also took advice from a mortgage broker, IFA and accountant) before going ahead with the plan to invest for their long-term security; without costing them a penny!
They had purchased a house in 2012 for £250,000, with a £50,000 deposit and a £200,000 mortgage. Just five years later, their mortgage balance was £166,000, whilst their home was now valued at £350,000.
This means if they were to re-mortgage their home at its current value, on the same 80% loan-to-value as they had done five years ago, they would receive a surplus of £114,000 above their current mortgage balance. A five-year fixed rate mortgage at this level would come with an interest rate of just 2.1%
In this case, £95,000 of the surplus funds was used as the deposit for a £270,000 buy-to-let property whilst the £175,000 balance was leant by a bank at a cost of £379 per month (2.6% interest-only, fixed for five-years).
With both mortgages fixed for five years they knew exactly what needed to be paid, knew they could afford the repayments on the residential mortgage and that the rent would cover the interest on the buy-to-let mortgage (and give them some money left over each month). They also had £19,000 left to cover the mortgage arrangement fees, stamp duty and legal fees, meaning they paid absolutely nothing to purchase their £270,000 buy-to-let property.
They’ve obviously taken on debt to do this, but with the payments fixed (at record low rates) and a surplus being generated each month from the rent, they are now set to make £2,700 for every percent the property increases in value, at no cost to them.
This is the same principal that I and many other long-term landlords have used; refinancing their rental properties to buy more. I believe there is now an exciting opportunity for a far wider audience to prosper due to the current climate of low interest rates and recent property price rises.
If you’d like to have a chat about how this could work for you feel free to get in touch on 02477 674545 or pop in and see us on Bond Street.
When we had someone come into our office a few weeks ago, complete overwhelmed by the prospect of thinking they had to sell their house in order to tie up everything before emigrating, the feeling of being able to take that pressure off them was a good one!
The story goes a bit like this…
Said homeowner didn’t particularly want to sell in order to emigrate as the property was in negative equity. She had only lived there 5 years and by all accounts had paid over the odds for the house. We explained to her that she didn’t have to sell now, nor did she have to rent it out (knowing that she is making a permanent move, it’s a property she wont be returning too) however, she does want to sell the property eventually.
We told her about ‘rent to own’ and how it works. That we would find her tenants who would rent the property for 5 years, knowing that at the end of the 5 years they would be buying the house off her. It’s a no brainer. Tenants move in, knowing the house will be theirs to own in a few years, looking after it in all aspects from cleaning to all maintenance , and paying the set rent per month for 5 years!
Want to know more about how this could work for you?… So many vendors are now choosing this route, and the great thing is, there is an influx of tenants who want to buy, but currently are not in a position too, who are also very excited about this opportunity. Give us a call today on 02477 674545 to find out more!
While children are excitedly preparing to dress up as scary mythical creatures ready for Halloween, many Landlords are faced with the far scarier reality of damaged property, rent arrears, disruptive tenants and all the other fears associated with managing their own property.
If you are currently experiencing any of the above issues, please read on. If you are not experiencing any of the above, you may as well read on because sooner or later you will most likely need to read this…
If you’re anything like me, you’ll spend a lot of time ensuring that your rental property looks clean and presentable for your new tenant. Now, there’s nothing more annoying or upsetting than people not respecting your property or maintaining it to the standard that you gave it to them….am I right? Ok, so rent arrears are probably No.1 but we’ll get to that in a minute.
The last thing you want to do when a tenant moves out is have to deap clean; kitchen, bathroom, carpets…the lot. You also don’t want to have to be spending money re-decorating the whole place again. So, avoid the heart ache and arguments and ensure you do a thorough Inventory before the tenant moves in. Also, make sure you take a deposit (and secure it with a recognised deposit scheme). With these two things in place you can claim the cost from the deposit and use your inventory as proof.
DO NOT- Think “Oh they seem like good people; I don’t need an Inventory or Deposit”. Assume all people are Witches and Ghouls because things can turn ugly and scary VERY quickly!
This is advice from an experienced Landlord…take it, please!
This is probably the scariest thing about managing your own property and can quickly turn into a real life horror movie before you know it. If a Tenant doesn’t pay the rent, who pays your mortgage? You of course but it’s a serious financial struggle and, in some cases, an impossibility which leads to very serious financial problems.
ALWAYS- make sure you do full reference checks on your tenants. Be wary of certain situations e.g. someone who says “I’ve been living with parents”. This is sometimes code for “I’ve racked up thousands of pounds in rent arears with my previous landlord and he won’t give me a reference”….funny that!
Insist on rents being paid by standing order and keep on top of rent payments! The second they are a day or two late, get on the phone. If they don’t respond, email them. If they still don’t respond call their next of kin and say that you are concerned because you can’t get hold of your tenant. Etc etc etc
You also have to be incredibly careful with the notices you serve; some have to be served on a specific date, some you can serve at any time but they need to be in 2 months rent arrears, by which time you’re struggling to pay your own mortgage let alone two. And the horror continues.
Put your hands up if you’ve had one of these….oh come on, get your hand up, I know you’ve had at least one?!
Well these tenants are the equivalent to vampires; only awake at night time and are intent on causing disruption to the entire village!
There should be a clause in your Tenancy agreement regarding noise and nuisance to neighbours. Tenants must agree not to make unnecessary noise which could disturb neighbours.
If neighbours do come to you with a complaint about your noisey tenants, ask them to talk to them about it. If they do not feel comfortable about this you should discuss the issue with your tenant in a calm and reasonable manner.
What to do now?
Although I enjoy writing to you lovely readers and, lets be honest….you’ve enjoyed it, I am also a Lettings and Estate Agent in Nuneaton. Don’t sigh and switch off!
If you are looking for an easier life whereby you kick off your shoes after a long day at work and just sit in front of the fire with your family chilling out, give me a call. We can take care of absolutely everything for you from finding a suitable tenant to collecting the rent, managing the maintenance and even guaranteeing the rent.
No more horror stories for you. We’re more like a fairy tale; after you have a chat with us at QT Homes you’ll feel all warm and fuzzy inside *cheesy smiles*
I hope you’ve enjoyed my article. Please get in touch if you have any concerns or worries about your current tenancy and I’d be happy to have a chat about it.
I look forward to hearing from you 02477674545
At a family Birthday party at the weekend, my brother-in-law pointed out the promotion on the pack of a popular crisp snack; “Collect 3 packs and get a free Bluetooth speaker***
Except the *** referred to a host of terms and conditions including the fact you need to pay £3 towards postage. Why not just say “Collect 3 packs and get a Bluetooth speaker for £3!?
And it reminded me of some letting agents’ promotions. 0% management fees to landlords, free management and free this and free that. All with the caveat that it’s only for a certain time frame or that other fees apply, making the saving completely redundant.
The simple answer as to why companies do this is it is attention-grabbing marketing, designed to get people to contact the promoter, who then has one foot in the door.
I feel there is a lack of transparency amongst some letting agents in regards to the fees they are charging (to both landlords and tenants), which was one of the reasons we started QT Homes Lettings in 2013.
Even though it is now a legal requirement for letting agents to publish all their fees to both landlords and tenants on their website and in their offices, many don’t comply and the authorities seem to do nothing about it. Price on application or fees negotiable by property type is not permissible and contracts should be free of hidden nasties tucked away in the small print.
It was sad to hear recently from two sets of prospective tenants who were shocked to find their previous letting agent was withholding a reference unless they paid them a fee. I believe in the notion of charging a fair and transparent price for a great service and not trying to make a few extra quid in the short-term just because I could.
You can find a full list of our services and fees on our website – www.Qthomes.co.uk.
And that’s my business model – simple and transparent; take on nice properties (there’s lots of these around Nuneaton), choose good tenants (lots of them around Nuneaton too), keep my overheads low and my service levels high.
If you’re a landlord and wish to work with a letting agent who is passionate about providing a good service to everyone at a fair price, without the hidden complexities you sometimes find in the industry, please give me a call.