How to reduce the Void!

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An existing client of ours was looking at purchasing another investment property for the purpose of "Buy to Let" and asked us to point him in the right direction, we were given the budget he wanted to spend and the type of property he wanted, most important of all on his wish list was a property that would provide the least Void periods (when the property is vacant) as possible.  This leads to the question of how to reduce the void!

Two of the most important issues to reduce void periods are desirability and price, after all if the property is very desirable and the price is right then it stands to reason that this will encourage the property to be let quickly and therefore reduce the amount of time that it is vacant.

One such area that continually performs well for both rental income achieved and the all important desirability is River Meads in Stanstead Abbotts, although some may argue that the properties are higher in price than the average and that the running costs can be quite a bit above the norm, the fact is that it is a very sought after location and tenants want to live there. This means that when the properties become available, if they are priced and presented correctly, they get rented quickly and the tenants generally stay for a good length of time.

A decent size One bedroom apartment that is well presented will currently achieve £700 to £750 per calendar month in River Meads with a Two bedroom apartment renting for around £850 per calendar month. Choose one that has direct views of the River and you will almost certainly get the top end of those figures. 

If you are looking to purchase a Buy To Let property locally and would like some tips and advice come in to our High street office and we will be pleased to help or if you already have a property to let that requires a tenant we will be happy to help with that too.  
    

"Your local lettings experts, our advice is free but our knowledge is priceless" 

           
I have been in and around the Hertfordshire property market for over 25 years, starting as an estate agent in the county town of Hertford and now running a successful lettings and property management company based in Stanstead Abbotts. I have let and managed property all over Hertfordshire from the area that I currently work to Wheathampstead where I owned and managed a lettings & estate agents to Watford and surrounding areas where my company acted as a marketing agent for one of the largest property management companies in the country”





                                        Adrian Fallart - Director - Property File


  

Who do you think you are kidding Mr Milliband!

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On Tuesday the 13th of May Mr Miliband, the leader of the labour party, is putting forward a bill in the houses of parliament to shake up the "Private Rented Sector" and to my mind and many others within the market, put us back at least 30 years.

Apparently Mr Miliband and his followers believe the Private rented sector is all part of the "Rip Off Britain" that we hear so much about with letting agents charging enormous and unjustified fees and Landlords capitalising on the circumstances of others! Mr Miliband allegedly believes that it is unfair for a Letting agent to charge a fee to tenant applicants looking to privately rent a property and that the current legislation of an "Assured Shorthold Tenancy" with a minimum term of Six months is unfair and that it should be made mandatory that the minimum term is 3 years to give more security of tenure to the tenants!

Let's start with the letting agents fees. I have been running my own agency for 10 years and we charge a fee to the tenants looking to rent a property from us. These fees are to cover the costs for credit checking and referencing of the applicants for which we pay fees to an outsourced company to do on our behalf as they are firstly very time consuming and secondly it reduces the chance of any errors within the process. The fees also cover the costs of administrating the Assured Shorthold tenancy agreement which is individually tailored to each tenancy, a legal document which must be correct for obvious reasons. The fees also go toward the preparation of an Inventory, advising all utilty companies and council tax of the change of tenant and registering the tenants security deposit with the relevant authority. All this takes effort and time and as the old saying goes "time is money".

Not only is all the above time consuming but most importantly it has to be done correctly, we are talking legal documents, dealing with local government for tax and registering deposits with government organisations. This is a job for professionals with expertise and experience, it is not something that should be taken lightly and as such how can it be seen to be unreasonable by Mr Miliband, his labour party and charitable organisations such as "Shelter" that these services should levy a fee.

As a small business owner I spend my life paying out fees for various services that we require to run our business, fees for admin charges, fees to solicitors to carry out legal work and fees to operate my computer systems. I have to pay rent for my office, phone, heating and electric bills and probably most important of all I have to pay to constantly be up to date with the legal aspects of the lettings industry to ensure I am doing the job correctly for the very tenants Mr Miliband claims to be standing up for.

When Mr Miliband and his cohorts go to the houses of Parliament on Tuesday the 13th of May they will claim a fee for their precious time, over and above thier already high salary, for just being there and representing their party faithful, if they can claim a fee for that purpose is it not reasonable for small business owners like myself to charge a fee for our time and effort which ultimately is ensuring the legal compliance of our work and the security of all parties concerned.

Now let's look at Mr Milibands desire to extend the minimum term to 3 years instead of 6 months as has been the case since the "Assured Shorthold Tenancy" agreement was instigated in 1988 under the housing act.

The benefit of a 6 month agreement is that it creates flexibility for all parties both Landlord and Tenant. Circumstances continually change for everyone, as the say "Life is what happens when your making plans", what if the landlord needs the property back to live in or has financial restraints which means the property needs to be sold, if the term is confined to three years this could create major problems with claiming back possession of the property.

What if the tenant, that moved into the property with all good intentions, can now no longer pay the rent? without the flexibility of an assured shorthold agreement as it stands today the very issues that Mr Miliband believes he will be alleviating will actually get worse.

With the "assured shorthold tenancy" as it is at the moment we already have major issues when it comes to reclaiming possession for the landlord, the eviction process is lengthy, costly and difficult enough as it is without further issues created by making the fixed term longer than necessary. Just as importantly as all the above is the Tenants situation, their circumstances may change too and need to move out before 3 years.

I Feel Mr Milibands ideas are poorly conceived and appear to be just electioneering, he may believe that this is the way forward to secure many votes from the 9 million people in this country that privately rent, a figure which is surely to increase considerably over the next few years, but if he really wants to help people with their housing needs he should be looking at
ways to create more homes in general for the private renters, housing association tenants and home owners alike.

"Your local lettings expert, our advice is free but our knowledge is priceless" 

I have been in and around the Hertfordshire property market for over 25 years, starting as an estate agent in the county town of Hertford and now running a successful lettings and property management company based in Stanstead Abbotts. I have let and managed property all over Hertfordshire from the area that I currently work to Wheathampstead where I owned and managed a lettings & estate agents to Watford and surrounding areas where my company acted as a marketing agent for one of the largest property management companies in the country”





        Adrian Fallart - Director - Property File

Is Hoddesdon a good place to Buy To Let?

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We have recently been having many conversations with landlords about the importance of having a balanced portfolio when buying and renting out property. The balance between buying properties that offer good monthly returns, in other words High Yield, but quite often offer a lower capital growth verses properties that do increase in value quicker but often offer a lower yield. A question that we are often asked is where should I buy to let.

One town that regularly performs well in yield and is improving on capital growth is Hoddesdon and equally as important is the high demand to live in the area by tenants, particularly those working in the town, therefore reducing the chances of vacant or void periods which is a large contributing factor in lowering yield. 


Rental prices range from £550 pcm for a small studio apartment to £850 for a two bedroom although there are some lovely two and three bedroom houses that have recently been on the market for between £900 to £1200 pcm. However the opportunity to buy these properties and provide yourself with a strong yield is very good especially when you consider a three bedroom terraced house can be brought for less than £250,000 and provide a rental income of £1200 per calendar month.

If your are looking to buy a property to let with the intention of it covering itself whilst you enjoy the largest possible capital growth you may be better off looking at other market towns close by such as Ware and in particular the county town of Hertford but these will probably not provide such good yields as Hoddesdon in the short to medium term. 
 

"Your local lettings experts, our advice is free but our knowledge is priceless" 

           
I have been in and around the Hertfordshire property market for over 25 years, starting as an estate agent in the county town of Hertford and now running a successful lettings and property management company based in Stanstead Abbotts. I have let and managed property all over Hertfordshire from the area that I currently work to Wheathampstead where I owned and managed a lettings & estate agents to Watford and surrounding areas where my company acted as a marketing agent for one of the largest property management companies in the country”





                                        Adrian Fallart - Director - Property File

A New Influx of Landlords?

 www.propertyfile.co

Last week an existing client of ours approached us with regard to increasing their current Buy to Let portfolio as the recent changes in the pension's overhaul announced by the Chancellor in last month's budget enables them to withdraw a cash lump sum from their private pension.

This initiative means there could soon be a whole new influx of landlords coming into the property rental sector as savers aged 55 and over can access this cash and will mean probable surges in Buy-to-Let as savvy investors look to maximise returns on their savings. Property remains a favourite source of income as rental returns continue to outweigh savings rates, making Buy to Let a very attractive proposition.

The new generation of landlords will focus on acquiring property in the right locations to deliver solid rental returns and our local market has continually proven itself as one of the top areas in Hertfordshire for investment.

We are already seeing a large number of new Buy to Let enquiries as well as many of our current Landlords looking to increase their portfolios locally and this new pensions incentive is sure to increase demand.

The increase over the last twelve months of the average rental income as previously reported will also be a factor in encouraging potential investors to put more money into "bricks and mortar" with the average rent now achieving £797 per calendar month nationally, although in this region our figures are higher with a two bedroom property realising £843pcm.

"Your local lettings experts, our advice is free but our knowledge is priceless"





I have been in and around the Hertfordshire property market for over 25 years, starting as an estate agent in the county town of Hertford and now running a successful lettings and property management company based in Stanstead Abbotts. I have let and managed property all over Hertfordshire from the area that I currently work to Wheathampstead where I owned and managed a lettings & estate agents to Watford and surrounding areas where my company acted as a marketing agent for one of the largest property management companies in the country”





Adrian Fallart - Director - Property File

Buy To Let Index | Property File

 www.propertyfile.co

The latest Buy-to-Let Index from LSL Property Services shows that annual rent rises across England and Wales have accelerated, with the average rent now 1.6% higher than twelve months ago, currently standing at £743 per month.
This is the fastest annual increase since November 2013, and compares with a year-on-year rise of 1.4% in January this year.
On a monthly basis, rents increased by 0.1% between January and February. This represents the first month-on-month increase in residential rents since October 2013.

In our local area we have seen a rise in rents over the past 6 months and now an average rental for a two bedroom apartment on our register is £843 per calendar month. These rental rises are bringing in more interested investors into the Buy to Let market which is good news as the need for more rental properties in Hertfordforshire is predicted to increase considerably over the next  5 years.

"Your local lettings experts, our advice is free but our knowledge is priceless"

I have been in and around the Hertfordshire property market for over 25 years, starting as an estate agent in the county town of Hertford and now running a successful lettings and property management company based in Stanstead Abbotts. I have let and managed property all over Hertfordshire from the area that I currently work to Wheathampstead where I owned and managed a lettings & estate agents to Watford and surrounding areas where my company acted as a marketing agent for one of the largest property management companies in the country”





                                                        Adrian Fallart - Property File

Buying to let guide | UK Rental Property Management

www.propertyfile.co

Buying to let top 10 guide:

Buying to let in the UK market has become a real challenge, as prices have remained high but demand for renting is also high. Our Top 10 tips will maximise your chances of making a good return on your investment into the buy-to-let market.

My 10 Steps to success:
Ok I'm going to make this very easy by revealing my 10 steps. Follow this and you will succeed, ignore a step and you may struggle. Here goes...
1. Find the right area to buy into and make some appointments with local letting agents normally estate agents will be able to offer help with letting too .
2. Once you've picked their brains to assess the state of the lettings market (and discovered what type of properties are most in demand) you can begin the house hunting game. Get several viewings under your belt to get a feel of the market.

3. Talk to mortgage providers early on in the process to ensure that you find the best deal. If you have a personal financial advisor, they may do this service free of charge and so it may save you money and time along the way.
4. Once you've found a suitable property put in an offer and be patient. What you might think is a silly offer may prove to be a bargain, remember you can always increase your offer.
5. When your offer on the property is accepted you'll need to get a licensed conveyor or a solicitor to deal with the legal and financial paperwork.

6. This is the step that can seem to go on forever, the survey and searches.You will also need to get it valued. Then you'll be in a position to finalise your mortgage arrangements with your finance lender.
7. Who will property manage ? Once you've been handed the keys you'll need to decide whether you are happy to manage the property yourself or if you want to hand it over to a letting agent. My advice is use a letting agent, it may cost you but the knowledge and experience a professional letting agent can provide will save you money in the long run.
8. The chances are that the property will need some work doing on it, so it's best to get the workmen in there as soon as possible. You will find speaking to the letting agents that they have just the team for the job should you not already have someone in place. 

9.When it comes to marketing the property remember that unfurnished is the modern way. It may very well be that you need to provide kitchen appliances but other that leave the property empty except for flooring and curtains or blinds.

10. Before your tenants take the property, do make sure that they are clear on the terms of your contract to avoid any later possible complications.

If you want more tips on letting property go to our website www.propertyfile.co and click on the FREE STUFF icon and request a copy of SECRETS TO SUCCESSFUL LETTING.

"Your local lettings experts, our advice is free but our knowledge is priceless"

 
I have been in and around the Hertfordshire property market for over 25 years, starting as an estate agent in the county town of Hertford and now running a successful lettings and property management company based in Stanstead Abbotts. I have let and managed property all over Hertfordshire from the area that I currently work to Wheathampstead where I owned and managed a lettings & estate agents to Watford and surrounding areas where my company acted as a marketing agent for one of the largest property management companies in the country”

Adrian Fallart - Director - Property File

Ten Ways to Increase Income on Rental Properties

 www.propertyfile.co

How do you get more income from your rental properties? Raising the rent comes to mind, but there are many other ways.

What if you want better cash flow from your rental properties? You can't just raise the rents arbitrarily. If tenants leave, income goes down, not up. There are other ways, though, including the ones listed below which may be applicable to your properties.

 1. Install coin-operated washing machines. Even if you don't have the money to do this yourself, you may find a company that will do it for you, and share the income with you. Alternatively fit a domestic appliance coin box which can be adapted to most machines. A Particularly good idea for "Houses of Multiple Occupation (HMO)

 2. Rent extra parking space. If your apartment comes with a garage, dont include it in the rent but offer it as an extra, if the ingoing Tenant doesn't want it then Let it seperately to someone else.

 3. Raise the rent. Okay, we did dismiss ARBITRARY rent hikes as a cash-flow solution, but check on the rates for similar properties. Are you renting at below-market values?

 4. Rent storage sheds. Especially if your apartments are small, your Tenants may need a place to store their things. Don't let them spend their money elsewhere. Put a few sheds on the property if you have the space to do so.

 5. Enforce late fees. It is perfectly fair to have a fee for late payment of rent, and guess what? Those who are chronically late usually don't even mind - they just don't look at these things the same way as others.

 6. Offer improvements for rent increases. If it's worth  £25 more monthly rent to a tenant, install that dishwasher they asked for. Even on a credit card you'll pay less than that per month for it.

 7. Install vending machines. If your rental properties are large enough such as "houses of multiple occupation", companies will do this for you for free, and give you a share of the income.

 8. Rent by the room. A four-bedroom house might make more money if you include all the utilities and rent by the bedroom. This has made a lot of fortunes for investors in University towns. It does mean a lot of management however and make yourself aware of the different regulations with regard to lodgers and "HMO's".

 9. Rent-to-own sale if you would consider selling in the future!. Usually there's a non-refundable deposit, and higher than market rents in these deals. When Tenants change their minds, as they often do, you get the deposit and better cash flow. This is great when poor cash flow makes you want to sell. You either sell or get the better cash flow as you repeat the process.

 10. Reduce expenses. Every pound of expense you cut goes straight to the bottom line. List every expense of your rental properties such as insurance and look at them one at a time. How can you reduce them?



Hopefully this has given you some ideas to work with and help you to successfully let your properties.

                 "Your local lettings experts, our advice is free but our knowledge is priceless"

 

I have been in and around the Hertfordshire property market for over 25 years, starting as an estate agent in the county town of Hertford and now running a successful lettings and property management company based in Stanstead Abbotts. I have let and managed property all over Hertfordshire from the area that I currently work to Wheathampstead where I owned and managed a lettings & estate agents to Watford and surrounding areas where my company acted as a marketing agent for one of the largest property management companies in the country”

Adrian Fallart - Director - Property File