Well, from experience, there’s a lot that can happen on the run up to and over Christmas with rental properties. Where shall I start? I had a tenant call on 20th December one year to say the oven had stopped working and they had 6 people coming for Christmas dinner. Cue me pressing the Curry’s speed dial button on my phone and paying an extra £50 for delivery on Christmas eve. Ouch!
As with any time of year, with any property or tenant, things can be unpredictable. What is important is that we are prepared for it (or as prepared as we can be). Pick up the phone, have a chat with your plumber / electrician / maintenance person to make sure they’re going to be around over the festive holidays and ask if you can call on them if you need to. Find out what the additional call out fees are on a bank holiday just to make sure you’re informed.
Also, give your tenant a call and make sure there’s no maintenance issues that they’re aware of. Better still, go and do an inspection to see for yourself. This will enable you to be in control of any issue and nip it in the bud before that small problem becomes a big problem over Christmas.
If you’re with an Agent, give them a call or email and check in with them before they break up for the Holidays.
If you’re not with an Agent but would like to be, then give us a call! We’re always free to chat & offer investment and property management advice.
Even though the majority of the investors and landlords that we work with have been in the game for some time, we always love working with new landlords. Helping them find the right Greensboro realtors, giving rental advice, showing them the tricks of the trade, it’s all great fun! We are currently working with a new landlord/ investor and this is his story…
1.Think about who/how the property will be managed
We recently had a newbie landlord get in touch and ask if we could manage his rental property (always a great phone call to have). So, this guy is already ticking boxes on the “Things to consider as a new landlord” list by contacting us and asking for advice.
2. Consider the work involved in your new/current property to make sure it meets current regulations and standards
He bought a terraced house in Nuneaton through a property Auction (a scary prospect- even for those of us who are more experienced investors) and it is in need of some TLC. I offered to go and have a look at the house before he starts knocking it about. I’m glad I offered to do this and he’s DEFINITELY happy that I did because now, instead of him achieving a 6% yield, we’ve advised what he can do in order to achieve a 11% yield. He has a handsome budget and is prepared to put the time and effort into making some changes.
3. Get some people/tradesmen that you can trust on board
When I asked him who would be doing all of the electrics, plumbing, carpentry work etc, he looked at me with a blank expression as if to say “Sh*t! I have NO idea!”. In his mind, he was going to enlist a few friends to help him strip a few walls and do some painting but that’s as far as his planning went. HOWEVER, now that he knows me and has me on his side, he also has contacts for all of the construction, electrical and plumbing works.
It’s taken us 7 years to establish and get to know several workmen/tradesmen and know who is reliable and who we can trust, not only to charge a fair price but to also do a quality job. If you’re doing this on your own try to get people that come recommended by friends or family because this is a really tough decision to make. For example, when cleaning the property for new tenants you would want to make sure that the cleaners and professional carpet cleaning you might need to use to help are going to do a job that is good enough and leaves no room for complaints from tenants. It’s about who can you trust, be careful and you should hopefully have good results in property maintenance.
You NEED to have these things in mind when buying or thinking of renting your property out.
4. Make sure EVERYTING is as it should be in order to be on the right side of the law when renting your property out.
This is something our newbie landlord doesn’t need to worry about because we’re sorting it all out for him. We’ll be making sure all of the relevant certificates have been done, all relevant documentation is ready, we’ll be advertising it, doing viewings, doing comprehensive referencing and credit checks, drafting an up to date and approved Tenancy Agreement, arranging a full written and photographic inventory and doing a check in to ensure a smooth transition for his new tenant.
If you’re not using an agent to manage your property(s) then that’s absolutely great! But please, please, PLEASE make sure you know what you are doing. More often than not, tenants know more about their rights than landlords do and it WILL be back to bite you in the bum if you’re cutting corners.
5. Set the right rent price
Once again, this isn’t something our newbie will need to worry about as we’ve already informed him what rent he can get for his house (depending on the finish he decides to go for and if he’ll go ahead with the big reconstruction works or not).
Setting the rent is something you can do yourself by having a look online to see what other similar properties are renting for. Try and keep your comparable search to within 1 mile radius of your property, the same/similar layout (floor size) and the same amount of bedrooms. If there is another “similar” property but it has a driveway, garage and conservatory then do not use it as a comparable unless yours has the same perks.
6. Keep up to date with the laws and legislation surrounding rental properties
Don’t think that just because you’ve done all of the above and made it through the initial madness of property letting that you’re in the clear forever more. No, no, nooooo my friend! This is a long term commitment with annual certificates that need doing, property inspections, evening & weekend calls from tenants telling you about maintenance issues and leaky toilets or sinks. You need to be committed to this and make sure you’re keeping on track of everything.
I haven’t done this blog to put people off or to get more business by scaring you into using an agent (although it is a perk, I’ll be honest!). I have written it to make sure people realise that it’s not as easy as just “buying a house and getting a tenant in”.
If you are thinking of investing in Nuneaton, having your property managed (or just a tenant find) or would like more information on how you could increase your annual yield, please get in touch with us 02477 674545 or visit our website to check out our FREE YIELD CALCULATOR
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.
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.
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.
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.
What will house prices do this year? Do we sit and wait patiently for the much-predicted house price crash in the next few months, or will the UK property market bounce back following the stamp duty holiday announcement?
If, like me, you are confused by the latest figures released by Rightmove, which show a 2.4 per cent house price surge compared to March in the month leading up to 8th July 2020. This number comes in only a few weeks after other house price data was showing a steady decline, with the first annual house prices fall (of 0.1 per cent) since 2012. Buyers and sellers alike are struggling to get their heads around these fluctuations understandably!
It would seem that the government’s stamp duty holiday plan is paying off, at least in the short term: the cancellation of all stamp duty payments on properties up to £500,000 has inevitably resulted in a spike of buyer interest – and in sellers being able to raise asking prices, bringing up the average property price in the UK to £320,265.
To find out more about the effect this is all having on Nuneaton house prices whether you are buying or selling, please feel free to drop us an email at email@example.com.
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.