Nuneaton rental market during COVID 19 & Christmas

Considering the months of lockdown and working from home, we’ve been pretty busy at QT Homes Lettings (working in the garden and from the paddling pool clearly didn’t adversely affect my ability to work!…I might make it an annual thing).

Our new clients have all raised the same concerns so I thought it would be best to share their concerns with all of you because you may all be wondering exactly the same thing…

Q: Are you still going to be able to find me a tenant during lockdown and on the run up to Christmas?

A: Yes. Absolutely!

We have not seen a decline in enquiries for rental properties AT ALL during this lockdown. It has been business as usual (other than working from home and turning up to viewings looking like some kind of scary crime scene investigator in my mask, gloves, shoe coverings as well as pointing a thermometer gun at people!)

Renters are as desperate as ever to find properties in Nuneaton and I’m confident that even during the December weeks, we’ll still be doing viewings and taking applications ready for the new year.

Recently, we had a 2 bed flat to rent and it was viewed, referenced and the tenant moved in within 3 days! This was super speedy and I can’t promise that they will all be this fast but it just goes to show that the desire from renters is there to commit and get in as quickly as possible.

A 3 bedroom terraced house in Stockingford, Nuneaton had 26 enquiries within a couple of days of listing it. Someone has applied and is going through referencing as we speak and they hope to move in on 1st December so, from start to finish, that will have been 2 weeks.

Don’t despair and think that COVID and Christmas will slow things down for you and your rental income.

If you’re planning on doing things in house then great! If you’re looking for an Agent to find you a tenant in super speedy time then I know a really good one 😉

Stay safe All!

Melissa

What’s the difference in price between a 2 & 3 bed investment property in Nuneaton?


I regularly look on the property portals to see what’s for sale in Nuneaton and to find that gem that I consider to be a “star buy” for investors. I’m sure most of you do too.


Now, I don’t know about you, but I’m thinking half of the estate agents were drunk when they valued some of these houses because….daaaaaaamn! They are a lot of money for a big lot of mess! There were so many 2 & 3 beds listed for £130,000 and some were in need of a complete overhaul!


Looking back over the last 10 months (bearing in mind there’s a pandemic going on….in case you hadn’t heard) there has been 101 potential investment properties listed for sale, 37 three bedroom properties and 62 two bedroom properties (terraced houses). Once I averaged out the price of the 2 beds and 3 beds, guess what I found?….

Now, it might look like a big difference on the chart but, bare in mind that the graph increases in £10’s. In a nutshell, the average asking price for a 2 bedroom investment property was £118,585 and the average asking price for a 3 bedroom investment property was £118,629. Go figure!


What does this mean for your annual yield?
Well, a two bedroom property in Nuneaton will fetch, on average, £642/month rent and a three bedroom property in Nuneaton will fetch £668/month rent (although, these look low in my opinion).
So, based on my findings, you could buy a 2 bed terraced house for £118,585 and get £642/month rent, giving you an annual yield of 6.5% OR you buy a 3 bedroom terraced house for £118,629 and get £668/month, giving you an annual yield of 6.76%.


Is it just me or does this sound completely bonkers?


The good news is that I have found a couple of star buys amongst the madness but, guaranteed, they will be in high demand.


If you are looking for an investment property to buy at a good price before it even gets advertised on the property portals, feel free to get in touch to ask more about our investment programme.

Have you protected the income from your Nuneaton property investment?

I’m sure you’re all aware how difficult things are becoming with rental properties (thanks to COVID-19). We’re now having to give tenants 6 months notice and can’t accelerate evictions until they are in 6 months rent arrears!! Like it wasn’t bad enough before when tenants were in arrears!

So, with this in mind, I thought it would be the perfect time to encourage you all to look into rent protection, which can be added onto your building or landlords insurance from around £5+/month.

It’s worth every penny if you ask me. Especially with what’s happening at the minute. Our lives are changing on a weekly basis and many people are sadly loosing their jobs, which will inevitably impact the landlords who are renting out their investment properties.

The rent protection that you get may even cover legal expenses and eviction costs so please, take some time and get a quote for this to help protect you and your investment income.

I know I often have an air of sarcasm in my blog posts but I feel it I have to say to everyone out there….Be Kind! It’s such a rubbish time at the minute, for all of us so, let’s all do our bit and be the best people we can be.

For more life coaching and motivational talks, please get in touch ;-)….there’s the sarcasm again!

If you need contacts for quotes on insurance, please let us know and we’re happy to recommend.

All the best,

Melissa

Nuneaton Property SOURCING for Investors…

Let us help you find the right property investment for you

Are you thinking about investing in Nuneaton? Maybe you’re a pro investor and could buy properties in your sleep or, maybe like some people we’ve spoken to recently, you’re new at the property investing game?

Either way, I’m delighted to announce that we are venturing into property sourcing for investors and our services will include a basic “property source” right through to quoting and managing the refurbishment of your newly sourced property as well as property management at the end of the process.

We will be with you every step of the way. Either holding your hand (metaphorically speaking of course…thanks to COVID 19) through it all (if you need a bit more reassurance and support) or just provide regular email updates with photos of the progression so you know that things are being dealt with.

You’ll know from this blog that Mariam and I love property and are always keeping up to date with what’s going on in the local community (town improvement plans, new build sites etc) as well as the Nuneaton property market as a whole. So, if you want to use our property sourcing service for a property investment in Nuneaton, please feel free to get in touch and we’ll be delighted to find you the next gem in your property portfolio.

Melissa

COVID 19 -What can Nuneaton Landlords do about empty properties?

Well, I don’t know about you but during lock down I’ve perfected the art of baking as well as Lego houses and sunbathing.

In all seriousness, I am working from home running my Lettings business as well as managing my own properties (and trying not to let my 5 year old become a tech monster!).

I have had several people contact me saying “my rental house is empty and i want to get a tenant in ASAP”. I shall share with you what I told them… If a house move is non-essential then it should be postponed until it is safe to do so. For example, if a person is in an abusive relationship and it would be a danger to life if they did not move, then that would be acceptable OR in a case that i dealt with, a family had a house fire and were living in a hotel. The hotel then closed due to COVID 19 and they would’ve been homeless had I not sorted everything out for them.

Even if you do have a prospective tenant in desperate need for homing, how will you go about doing a viewing, all of the paperwork, right to rent checks etc without breaking government guidelines?

The answer is- it’s possible but a longer drawn out process.

I manage a Facebook page called ‘Nuneaton Houses To Let For Sale or Wanted’ and we have had about 200 new members since lockdown and lot’s of people looking to move. I appreciate that people may “want” to move but if they don’t “HAVE” to move then they should stay put. I also appreciate, as a landlord, that we don’t want our property empty, however, given the circumstances I think it’s best that we stick to the guidelines.

In the mean time, go and check on your empty rental once a week/once every couple of weeks. Speak to the neighbours (from a distance) and pass on your number and ask them to get in touch if there are any problems.

It’s also the perfect opportunity to do a bit of maintenance/ painting. Spend a bit of time getting the house tarted up, ready for letting.

If you’re looking to find a tenant for your rental property after lockdown or want any advice on property rentals in Nuneaton, feel free to give me a call.

For now, stay at home, stay safe

Melissa

COVID 19- most Nuneaton Landlords now working from home…

….me being one of them!

So, i’m doing my best to retain some sanity whilst sat at home trying to run a business, home school my 5 year old, trying to block out the constant chit chat while i’m responding to emails and taking calls. It’s all good fun! I’m sure a lot of you are in the same boat (some of you will have the even bigger challenge of multiple children… enjoy!).

I’ve not been doing so many written blog posts on the Coronavirus because I’ve mostly been doing video blogs for landlords and tenants, helping them to decipher the vague announcements from the govenrment over the last few days. If you want to see any of the videos, please click here.

Unless you’ve been living under a rock for the last week, you will know that the government have announced that lenders will be offering a 3 month “mortgage holiday” to help relieve the financial pressures of those “impacted” by COVID-19. They also said that there will be a complete ban on evictions for the next 3 months to ensure that tenants are safe during this time of uncertainty. Both fair. Both necessary.

However, what was not made clear was what happens in the event that tenants cannot pay the rent and STOP paying the rent. The landlord may have the mortgage holiday but they have to pay this back eventually and are losing income in the mean time. Do tenants have to pay the lost rent back?

I have a couple of contingency plans in place in case this happens. If you would like to know what they are, please feel free to get in touch.

I know i’m a bit of a joker at times but, I just wanted to say that if any of you are feeling anxious or worried at this time about what will happen to you, your tenant or your investment property, please feel free to get in touch for a chat. I may not have ALL the answers but i’m hear if you need me.

If you do call, please excuse the noise in the background. It turns out that 5 years old aren’t particularly quiet!!

wishing you all the best. Stay safe.

Melissa

*STAR BUY* for Nuneaton Landlords!

Whilst doing my usual trawl through On The Market, I noticed this gem pop up. Admittedly, I am not usually a massive fan of flats. I have several of my own flats and can’t say that they’re my favourite but I do have some at Simon Close (where this flat is for sale) and these flats are, BY FAR, my favourite! The management company are fantastic and the flats rent very quickly here.

This flat is on for offers over £80,000 but it has been on since December so I’m thinking there may be some flexibility here.

Lets look at the fun stuff…
If you purchase the flat for £80,000 and the current tenant pays £500. The ground rent and service charges are £1210/year, which would leave you with a gross yield of 7.50% and a net yield of 5.99%.

However, I will share a little secret with you….I charge £525 for both of my flats at Simon close so, if the rent were to be increased, you could be looking at a gross yield of 7.88% and a net yield of 6.36%.

Not bad, ey!!!

If none of you snap this one up, I might add to my Simon Close collection!

If anyone is looking to have their Nuneaton Property managed or if you just simply want us to find you a tenant, please feel free to get in touch on 02477674545 and we’ll gladly help.

The trials and tribulations of one of Nuneaton’s accidental Landlords


I wanted to share with you a story that I feel a lot of landlords could benefit from. Some time ago we had a phone call from a panicked Nuneaton landlord (and avid blog reader) . They are one of the many accidental landlords in Nuneaton and their story goes a bit like this…

(Just out of interest, see how many mistakes you can spot along the way)

They were left a property by a family member who sadly passed away and, rather than selling, they thought “why not rent it out?” so, with a WH Smith tenancy agreement in hand, they let the property to an applicant they found on Gumtree, took a deposit and kept it safe in their savings account. Does anyone else see where this story is going? I’m not mocking them. Even I made mistakes back in the day when I first started out with my first investment property (14 years ago…wow that makes me sound old!). I’m happy to report that I am wiser and (sadly) older now and there are no school girl errors!

Anyhoo, I digress….As is usually the case, their tenant was absolutely great for the first few months and then the late rent payments started (although they were still paying intermittently). When the landlords went round to do an inspection they were incredibly disappointed to see that the house was not being looked after. So, after some deliberation, they decided it was best to ask them to leave.

You must see where this is going now?…

They spoke to the tenant a few days later and told them that they were giving them one months’ notice to leave the property. After a month, the tenant had not left the property and had also completely given up on paying the rent. The landlord told them that if they didn’t move out, they would keep their deposit as compensation for lack of rent.
This went on for a further 2 months before the landlord got in touch with us as they were at the end of their tether.

Ok, now’s the time to see how many mistakes you noticed (red pens at the ready). We had to tell them in the nicest possible way that, without seeking legal advice and support, they would only continue to struggle getting the tenant out and it would probably end up costing them more than legal fees in the long run.

Mistakes:
1. WH Smith Tenancy agreement (not sure how up to date they are but they change quite often!)
2. Gumtree (say no more)
3. They didn’t secure the deposit in a recognised scheme
4. Landlords give tenants 2 months’ notice. It is Tenants that can give one months’ notice
5. The landlords would not have been able to keep the deposit because it was not protected properly (even though there were rent arrears and damage to the property)
6. There were several other mistakes the landlord made at the start of the tenancy with regards to certificates and paperwork as well (but these weren’t mentioned)

What they did right:
Seeking advice as quickly as possible

Landlords are often incredibly embarrassed and ashamed when things go wrong with a tenancy and often feel incredibly isolated but, it’s happened to thousands of landlords. The best thing you can do is seek advice as quickly as possible.

It’s great when people self-manage their buy to let investment but it’s only worthwhile if you do it properly and understand EXACTLY what is expected of you.

I’m happy to report that said landlord did seek legal advice and did manage to get the tenants out. We now manage the property for them so they can sit back, relax and enjoy the monthly rental income (which is guaranteed!).
If you have had issues similar to this, please feel free to get in touch to see how we can help. It is incredibly stressful and you don’t have to carry the burden on your own.
We’d love to hear from you 02477 674545

Is your Nuneaton buy to let attractive to Tenants?

One of our tenants has decided to move out because they need a bigger place due to their expanding family. I’ll be sad to see them go but, said I’d help in any way I could to help find them somewhere to suit their family’s needs (because I’m just nice like that).

So, I got to looking at some properties to rent in Nuneaton and was pretty surprised by the condition of some of them and it got me thinking how much rent landlords are missing out on because they don’t want to spend money making the place look a little more modern and attractive. Yes, they might be an accidental landlord and just not have the cash to inject into the place or, they may just be quite happy paying a low mortgage, getting a decent enough rent and letting the money come in each month.

Me, personally, I like to ensure my properties are done up to a certain standard and we also choose to work with like-minded landlords when it comes to the properties we manage.

If I let a property, I always ask myself the question, “would I be happy living here?” Or “Would I be happy for my son to live here?” It doesn’t have to be a palace (although that is what I’m accustomed to….in my dreams!) but something light, airy, spacious, clean, modern enough not to be embarrassed to invite friends over etc.

The condition of the property also reflects the rent that you will get for your Nuneaton buy to let investment. Now I know most of you are thinking “well duhhhh, of course” but you’d be surprised how many rental properties that we have been to, valued according to its condition and the landlord has said, “well the one down the road gets £95/month more rent” and I have to politely explain that the one down the road has a new kitchen, more modern bathroom and doesn’t have a brick featured wall and fireplace in the lounge, is freshly decorated and doesn’t have carpets from the 60’s. The rent reflects the condition and there’s no doubt about it.

Here are a couple of properties that I have found to explain what I mean…
£675/month
£595/month

Those of you who know Nuneaton and are thinking “well these two are in different areas”, yes they are but, there’s nothing stopping the Heath End Road house getting a much higher rent if it was more modern.

The condition of your property also reflects what type of tenant you will attract so, keep this in mind.

If you get a good agent on board who will, not only assess the suitability of the people who apply but use their instincts to find you the right tenant, do regular inspections and keep up with any maintenance work (which should be minimal if you’ve done things to a decent spec) then your property will be in good hands.

If you have any questions about this article or are looking to let your Nuneaton property, please feel free to get in touch and we’d be happy to come and advise you on value as well as what improvements could be done (within your budget) either now or over time. We’re just by the train station in Nuneaton or alternatively, you can call us on 02477 674545

It’s been a pleasure as always folks. Until next time…

Nuneaton HMO’s are growing increasingly popular…Have you got the bug?

A Nuneaton property, which we recently sourced for an Investor, has just completed. While we were discussing the project management details to transform it into a 5 room HMO, we got to thinking about the rest of our lovely blog readers and thought we would share why, we believe, we are having a sudden influx of calls from investors looking for property in Nuneaton.

Over the past 5 months it has become very evident that investors from near and far (mostly from the Capital) have been contacting us and coming to speak with us about investing in property in Nuneaton. For those that don’t know, Nuneaton is smack bang in the middle of ‘the midlands’ , a small town with a population of around 87,000 with great transport links to the bigger cities such as Birmingham, Leicester and, even London can be traveled to in around an hour by train!
Nuneaton has primarily been a sought after area by investors for your typical 2/3 bedroom terrace houses which would then be rented out to families, however, in the past few months investors have seen the benefits in not only buying here, but also turning said terrace properties which come onto the market into HMO properties.

Here’s the money part:

3 bed terrace property purchase price £130,000 – monthly rent of around £650-£695 PCM = an annual yield of 6.2% ( at a rent of £675).
3 bed terrace property purchase price £130,000 , £10,000 (roughly) spent on HMO licence and making the property compliant /furnishing etc, turning it into a 4 bed HMO by utilizing the front reception room and then charging around £375 PCM including all utilities, per room, giving you an annual yield of 13.8%.

You can see why investors are so attracted to the idea of buying these types of houses at these kinds of prices to achieve these kinds of yields!

If you would like to join our database of investors please feel free to give us a call for a chat on 02477 674545 so that we can understand your requirements in order to be able to help you best.
Not many of our readers are aware (as we don’t like to harp on about ourselves TOO much) but we are able to help source investment properties and project manage the refurbishment as well as fully manage the property to a very high standard giving you peace of mind that your investment is in very good hands….good ‘ey!