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.

Which areas of Nuneaton are best for property investment?

The short answer to this is- all areas!….the end.

Only Joking! What a boring blog post that would’ve been.

We have investors from all over the place contacting us to find out where in Nuneaton they should invest. Those of us who live in Nuneaton and know the areas well may have our own ideas but, as a Letting agent who has had properties all over Nuneaton, I can assure you that any area of Nuneaton is popular for rentals.

A quick breakdown for you:

Properties near the town centre (CV11 4 and CV11 5)- usually get let before we even get to advertise them! People love the terraced houses skirting the town centre. Mostly because of the convenience of town (especially if they don’t drive), being close to the train station is usually a winner for those who have to commute for work, there are several good primary & secondary schools close by and people often like to be close to all the local amenities just a stones throw away.

Stockingford (CV10 7 and CV10 8)- slightly out of town but it comes with it’s own benefits like access popular commuting links. George Eliot hospital is close by so you usually get a lot of medical professions enquiring about the Stockingford properties. Once again, there are several schools, local amenities and people often like to live there for the convenience of being close to family/friends or they may have grown up there and are looking to move out but want to stay in the same area. Stockingford will also soon have it’s own disused train station revamped and allow residents of Stockingford and galley common to access links to Birmingham and potentially further afield for employment.

The more affluent areas (Weddington & Whitestone)- These are also popular for families with a higher income but can some times take longer to rent out.

The question to ask is not what area is best but, what type of property is best. From experience, the 2-3 bedroom terraced properties (annual average yield of 6-7% at the minute) will rent all day long and the 2-3 bedroom semi detached (average of 4-5% annual yield at the minute) with a drive way and garage are also popular (in all areas) but, it’s when you start getting to the 4-5 bedroom properties that things start to slow down a bit. Anyone who can afford to rent a 4-5 bedroom house can afford to pay a mortgage on one so, it is often the case that these are more difficult to rent out. It’s not impossible but it does take that little bit longer and you find that the tenants don’t stay long (maybe they’re having renovations done on their own property, they have sold their house but not found anywhere to move to, they are here on a 12 month contract for work etc).

Not a lot of investors would start racking up the 4-5 bedroom detached properties, which I appreciate but, it’s worth knowing.

If you have any questions about specifice areas of Nuneaton and what the rental yield will be, please get in touch and have a chat. We’re always happy to help.

Melissa

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

New notice period for rental properties- Nuneaton Landlords…Listen up!

I wanted to get this VERY important information out to you as soon as possible and make it as detailed as possible, so…… I copied it from HMRC website. I know, I know, that’s so un-original! But it’s important so, read on…

“The provisions in the Coronavirus Act 2020 have been extended meaning that from 29 August 2020, landlords must provide six months’ notice to their tenants in most circumstances. However, there are some serious cases where it is right that landlords are able to start progressing within a shorter timeframe. This is because of the pressures these cases place on landlords, other tenants and local communities.

These changes mean that from 29 August 2020:

  • For notices in relation to anti-social behaviour, domestic abuse, rioting and false statement, the required notice periods have returned to their pre-Coronavirus Act 2020 lengths. In some cases, this means that proceedings for anti-social behaviour can be brought immediately after notice has been served. Notice periods on these grounds otherwise vary, depending on the type of tenancy and ground used, between two weeks and one month.
  • Where at least six months of rent is unpaid, a minimum four-week notice period will be required. If less than six months of rent is unpaid, then the notice period is six months.
  • Where a tenant has passed away or is in breach of immigration rules and does not have a right to rent a property in the United Kingdom then a minimum three-month notice period is usually required.
  • Where a social tenant has an introductory or demoted tenancy (used by local authorities), for cases concerning anti-social behaviour (including rioting) and domestic abuse, a four-week notice period will be required. Otherwise, notice periods for Introductory and Demoted Tenancies will be six months.
  • A six-month notice period is required for all other grounds, including Section 21 notices and, as highlighted earlier, where accrued rent arrears are less than the value of six months’ rent.

At the expiry of the notice period, a landlord cannot force a tenant to leave their home without a court order. When the notice period expires, a landlord would need to take court action if the tenant was unable to move. We strongly advise landlords not to commence or continue eviction proceedings during this challenging time without a very good reason.

Where appropriate, if disputes over rent or other matters persist, landlords and tenants are encouraged to consider mediation. Mediation allows an independent third-party to assist those involved to reach a mutually acceptable agreement to resolve their dispute, without the matter needing to go to court. While early mediation may be most beneficial in helping parties come to an agreement, this can take place at any point during the possession action process.”

It’s me again now. So, that makes for an interesting read, doesn’t it. All i will say is, if you are managing properties yourself just KEEP IN TOUCH with your tenants. Please be understanding, be supportive and make compromises. I know there will be some people out there who go on the defensive and demand the rent but, trust me, that definitely will not help! If tenants know that you are on their side, they will be so much more cooperative to help you too.

If it’s not the rent that’s the issue but it’s antisocial behaviour then you will be able to get some additional support for that.

Good luck out there! It’s a crazy world we’re living in at the minute.

Melissa

Nuneaton Landlords- no more “NO DSS”!

Are you a “NO DSS” Nuneaton landlord? It has long been a fear for many landlords that if they rent their property to a family in receipt of, what is now, universal credits then they are at higher risk of having problems with rent arrears. Not necessarily because of the individuals themselves but rather the system itself.

Propertymark have said “The design of the system with payments made in arrears makes paying rent on time impossible for many tenants and this presents issues for landlords who are relying on the rent to make mortgage payments.”

A Negotiator article recently reported that “at York County Court a judge found that the practice of turning away applicants because they are receipt of benefits unfairly discriminated against a single mum-of-two with a disability, on the grounds of sex and disability under the Equality Act.”

People should not be discriminated against because of their circumstances, I absolutely agree. I am also inclined to agree that the system MUST change to support & reassure landlords that renting their property to someone in receipt of Universal Credit is no higher risk than renting to a person in full time employment.

“NO DSS” will be “stamped out” says Shelter and no doubt hefty fines are headed in your direction if you do not adhere to it!

Let me know your thoughts on the subject.

Melissa

Nuneaton Agents providing virtual viewings…and??

If you were going to buy or rent a house would you take the house based on a virtual tour?

My answer- Hell NO!

Before I bought my house I saw so many houses online and was sooo excited thinking, “yes this one is the one” then i’d go and view it and it wasn’t as big/nice as it looked and it just had a “bad” feeling to it.

Men reading this might think “pffft women and their feelings” but it’s so true. You either get a good or bad vibe about a house and you just can’t feel that when you look at photos or watch a video.

We have a managed property vacant at the minute and a nurse was looking to move to be closer to the hospital. She saw the video i did (which was awesome…obviously!) and loved the house. The landlord went and opened the door for her and allowed her to view the empty property alone. She got back to me and said that although it was lovely, she didn’t feel it was big enough for her and her family.

It’s not that i’m trying to pause the housing market any more than it has been but I want to be real about things and say, although the video tours might be helpful, I don’t think i could trust anyone who would buy or rent a house from a video tour. They’re a great additional tool to have to sift out the time wasters before booking viewings but I can’t imagine how many issues will arise from people taking properties from virtual tours alone….cringe!

What are your thoughts on this? I’d be very interested to hear from you.

Stay safe all

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

*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.

Nuneaton Landlords- Under pressure by Boiler Pressure?

As a property manager, I have a lot of phone calls from tenants saying “my heating and hot water has gone off” and I reply with “what is the pressure gauge saying on the boiler?” and they respond is usually “the what?”. Obviously, I do my best to avoid sending out a plumber unnecessarily so i get the plumber to call them and talk it through if possible.

Today i came across a very helpful video from Jamie at Hydro Heat Plumbing and he explains why the pressures drops and how to re-pressurise the boiler yourself.

I’ll be sending this round to all of our tenants and landlords so i wanted to share it with all of you too. Watch the full video HERE.