How do I download a S.21 Notice?

It's not difficult to download a section 21 notice in the Property Manager 3.0.

Have a look at the 6 stage guide on downloading your own section 21 notice.

For more details of serving a section 21 notice for possession.

Landlord insurance - specialist brokers

LSL rental data

Another month and another set of LSL rental data. According to this months stats, rents have risen again. Sounds biblical. The fifth rise in a row sends rents to a new record high of £734 a month.

Average rents were up 1.2% on July.

LSL recorded average rents in England and Wales up 2.9% compared with August last year, bringing the average annual return to 5.3% on a rental property in August.

 Free property management software, Free tenancy agreements

Private Rented Sector has grown 47.9%

According to Jones Lang LaSalle’s (JLL) data the Private Rented Sector (PRS) in the UK has grown 47.9% over last five years and will continue to grow. 

JLL estimates that if PRS is to continue to meet the rental demand they predict it will require an additional £57bn of funding  per annum.

Jon Neale, director of residential research at Jones Lang LaSalle, commented: “For most young people, high prices and unrealistic deposit requirements make homeownership unachievable and as a result many households are now finding themselves in private tenancy. Given that the mortgage market is likely to remain constrained in the near term, it is not unfeasible that the expansion of the sector could accelerate."

Free property management software, Free tenancy agreements

BTL mortgage - best rates

Max LTV	Initial Rate	Term	Completion fee	Booking fee	Incentives	Overall Cost for Comparison
85%	5.49% Discount	2 Years	2.5%	£130.00	No	6.9% APR
80%	4.99% Fixed	Dec 31 2014	3.5% (min £595)	£0.00	No	5.6% APR
80%	6.58% Variable	0 Years	0%	£130.00	No	6.9% APR
75%	3.49% Tracker	Sep 30 2014	2%	£195.00	Cashback £500	6% APR
75%	4.7% Tracker	2 Years	3%	£150.00	No	6% APR
75%	3.74% Discount	2 Years	£1999	£250.00	No	5.4% APR
70%	4.25% Discount	2 Years	0%	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6% APR
65%	3.25% Tracker	Sep 30 2014	2%	£195.00	Cashback £500	5.9% APR
65%	3.99% Fixed	Oct 31 2014	£999	£250.00	Free valuation up to £700 for purchases and remortgages and free legals on remortgages only.	4.8% APR
60%	2.99% Tracker	Sep 30 2014	2.5%	£99.00	Free valuation for purchases and remortgages and free legals on remortgages only. £99 cashback	4.8% APR
60%	3.25% Discount	2 Years	£1750	£250.00	No	5.3% APR

Search the whole BTL mortgage market free
 
Email: info@propertyhawkbtlmortgages.co.uk 

Tel: 029 2069 5446 

IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice. Please check our website regularly to see the most up-to-date products available.

Your home may be repossessed if you do not keep up repayments on your mortgages.The Financial Services Authority does not regulate some forms of mortgage.

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Surge in smaller flats

'Surge' is a very dynamic word isn't it? But according to ARLA the rental market has seen a 'surge' in the supply of smaller new-build flats and maisonettes. 

Ian Potter, Managing Director, ARLA said: “New build flats and maisonettes are often a very popular choice for landlords investing in a buy-to-let property, particularly in large cities. The low maintenance costs and perceived demand from young professionals are key considerations for many landlords. Because of the saturated sales market in many parts of the UK, we are seeing this kind of smaller new build property flood on to the rental market.”

Read more in the Independent

Do bed bugs make a bad landlord?

Join the fascinating debate on Property Hawk's landlord legal forum.  One poor landlord has an attack of bed bugs!!  I'm no expert, in fact my knowledge only stretches to head lice (both my parents were teachers).  The thing that I gathered from that was having them was an unfortunate badge of honour (they only chose clean heads).  I'm not so sure the same thing applies to bed bugs.  If you are thinking of joining the debate we are still having mass applications from spammers so to speed up the process feel free to email me once you've gone through the registration process.  If only I could  find some way of getting them bugs into the spammers bed.  That would be a kinda rough justice!


Landlord Insurance - specialist brokers

Shelter's call for 5 year tenancies

Shelter have been reported as stating that there should be 5 year tenancies to give tenants security.  They state that this is needed as  more and more people are unable to buy their own property and are forced to rent.  However, were does this leave the landlord?

Shelter state that provisions should be put in place to end the tenancy if the landlord wants to sell the property or evict bad tenants - but what defines bad tenants?  Landlords that I work with often have difficulty evicting "bad" tenants but are able to end the tenancy using a Section 21 Notice at the end of the fixed term.  If the tenancy was to run for 5 years the landlord would not have this option until the end of the 5 year term.

Shelter would like to give tenants the option to give two months notice to end the tenancy.   So the situation would be that both parties would feel that the tenancy is secure, but if the tenant wants to end the tenancy they can do so by giving 2 months notice, but the landlord has to put up with tenants unless there are sufficient grounds for a court to evict the tenant.

In my view if the tenants are good the landlord would be more than happy to continue with the tenancy, but if things go wrong the landlord needs to be able to bring the tenancy to an end.

If you require any assistance in bringing a tenancy to an end please contact me at propertyhawk@fidler.co.uk

Rebecca Brough

Free property management software, Free tenancy agreements

Full council tax charges on empty property

Birmingham City Council has announced that it plans to charge full council tax on empty properties from next April if the Government proposal to that  abolish council tax benefit and replace it from next April with the new local financial support schemes, called council tax support.

If this all does go through it will obviously bring cost implications to local landlords and agents, and make any rental voids increasingly painful as well as adding additional cost to both developments and refurbishments.

Birmingham Council  is also proposing to impose council tax at the rate of 150% on properties empty for two years or more.

The proposals are now going to consultation.

Read more here 

Average Rent Figure Top £800

According to HomeLet,  the average cost of renting is now £806 a month, the first time the figure has exceeded  £800. Their average rents in the UK for August  recorded an increase of  2.1% over the previous months .

London Assembly Views on PRS

The London Assembly committee is set to debate the various key issues in London's private rented sector. Affordability. standards and landlord and tenant rights.They are interested in gathering opinion as to what the mayor of London and the individual boroughs should be doing to improve on the existing private rented sector and suggestions on how the London Assembly itself help make any changes.

It wants to look at a range of proposals and their implications for the sector. Working cross-party within the assembly, they are wanting to see how the sector can be improved. 

Send your thoughts here housingandregencommittee@london.gov.uk 

Read more in the Guardian

Digitising my portfolio details

I'm moving house.  In fact by the time you read this I'll probably (hopefully) be heading North to sunny Sheffield.  This means that I'm having to significantly downside my paper records.  Piles and piles of folders on purchases of property: sales, mortgages, remortgages; in fact a whole lifetime of work are heading to the skip.  However,  there is valuable info lurking in the files and I have been busily stripping out the data and adding it in to Property Hawk's Property Management Software PM 3.0 so I can take the data with me without the weight and storage hassle at the other end.

It's been quite a trip down memory lane.  A life in property and a fortune made, lost and possibly squandered.  On reflection one thing is certain.  I would have been better off not selling a single property (there's a warning to other landlords and investors).  However, life is a journey and some times we have to take the odd financial detour to end up in the right space.

Landlord insurance - expert brokers

Universal credit - payment details revealed

According to a recent exchange in the House of Commons it looks like the new Universal Credit which will eventually replace income support and housing benefit will be paid directly to the tenant.  This is despite the problems experienced by many landlords over payments of benefits under the Local Housing Allowance.

It's a kind of difficult political & moral dilemma.  I like many landlords support the idea of tenants being treated as responsible adults.  However, in essence the money being paid to them is not there's (it is the tax payers...yours and mine) So surely we (the State) have the right to say if we are paying it to tenants for their housing costs that they should go directly for that purpose.

Without wishing to sound like a complete fascist.  If they had earned the money in the first place, then that in my mind gives them the right to spend it completely as they like but the fact is...... they haven't.

Landlord insurance - specialist brokers

BTL mortgages best products

Max LTV	Initial Rate	Term	Completion fee	Booking fee	Incentives	Overall Cost for Comparison
85%	5.49% Discount	2 Years	2.5%	£130.00	No	6.9% APR
85%	5.79% Discount	2 Years	3%	£130.00	No	7% APR
80%	6.09% Fixed	2 Years	3%	£130.00	No	7.1% APR
80%	4.79% Discount	2 Years	£2999	£130.00	No	8.2% APR
80%	4.79% Fixed	Nov 30 2014	3.5%	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6.4% APR
75%	3.5% Fixed	2 Years	3.5%	£250.00	No	5.3% APR
75%	3.74% Discount	2 Years	£1999	£250.00	No	5.4% APR
75%	3.49% Tracker	Sep 30 2014	2%	£195.00	Cashback £500	6% APR
75%	4.49% Fixed	Oct 31 2014	1%	£0.00	Free valuation and free legals for remortgages (properties valued up to £500,000).	5.1% APR
70%	4.25% Discount	2 Years	0%	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6% APR
65%	3.25% Tracker	Sep 30 2014	2%	£195.00	Cashback £500	5.9% APR
60%	5.49% Fixed	2 Years	2.5%	£130.00	No	6.9% APR
60%	3.25% Discount	2 Years	£1750	£250.00	No	5.3% APR

Search the whole BTL mortgage market free
 
Email: info@propertyhawkbtlmortgages.co.uk 

Tel: 029 2069 5446 

IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice. Please check our website regularly to see the most up-to-date products available.

Your home may be repossessed if you do not keep up repayments on your mortgages.The Financial Services Authority does not regulate some forms of mortgage.

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3.74% 2 year discount BTL

Property Hawk Mortgages is offering a  new buy-to-let mortgage -  a 3.74% 2 year discount up to 75% LTV with a flat fee and no early repayment charge!

We see this as an excellent buy-to-let mortgage with Hinckley & Rugby Building Society. This 3.74% 2 year discount with a flat fee is highly competitive in the 60% LTV bracket and could be a great choice for landlords.

Andy Young at Property Hawk Mortgages says: “We have a very successful relationship with Hinckley & Rugby and have experienced high demand for their buy-to-let mortgage products. This new product is even more competitive than our previous 75% LTV buy-to-let deal with Hinckley & Rugby. ”

Search the whole BTL mortgage market free
 
Email: info@propertyhawkbtlmortgages.co.uk 

Tel: 029 2069 5446 

IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice. Please check our website regularly to see the most up-to-date products available.

Your home may be repossessed if you do not keep up repayments on your mortgages.The Financial Services Authority does not regulate some forms of mortgage.

 

Rents power ahead

Landlords can be forgiven for 'making hay' as rents continue to power ahead.

Property Hawk's Rent Index show that rents have now powered ahead to record levels.  Monthly rents now average £626 and  have risen by 4.6% over the last 6th months.

I noticed tonight that it's starting to get decidedly nippy out there.  This means only one thing.......Winter is on it's way.  There is a warning for landlords.  We know from previous years that Autumn sees renters dry up and rents dip from October until picking up again in March.

So landlords enjoy!

Landlord insurance - specialist brokers

Concerned social tenants about Universal Credit

Benefit tenants are reported to be nervous about the budgeting pressures of  the new universal credit.

Research by the Social Market Foundation shows that most social tenants in receipt of  housing benefit would prefer it if their rent payment were made directly to  their landlords.

Of the thirty low-income households interviewed most were ‘strongly opposed’ to receiving their rental payments, worried about managing their household budgets effectively.

Let's hope the government listen to common sense on this one.

Read in Inside Housing

London and south east rents over-heating

According to a recent Rightmove survey about a third of renters are spending over half their income on rent fuelling warnings the rents are becoming unaffordable.

The average rent for a two bed flat in the capital is reported to have risen by 5.8% over the past year to £1272.


 Director of Rightmove, Miles Shipside commented that "These 'trapped renters' are faced with the prospect of a downward spiral where spending more income on rent also means saving less for a deposit,"
Which draws the conclusion that rental demand is set to stay high.

The Rightmove data also recorded that landlords are achieving rental yields of  an average of 6% across the UK.

Read more in the Guardian

Property Pensions

The FT had an interesting article over the weekend about the increasing popularity of buy-to-let with investors when it comes to pension planning.  It looked particularly at how young investors are increasingly turning their back on financial advisors and stock market investments and instead investing their pension pots in buy-to-let property.  We at Property Hawk have consistently advocated residential property investment as a big part of your pension planning.

FT stats

Of those landlords surveyed over 70% saw properties as their pension.  This increased to 80% for the over 55 age group.

Buy-to-let perfect as pension

If you look at the characteristics of a buy-to-let property purchased with a repayment mortgage it's perfect.  You buy it during your earning years when your income is at it's highest and your requirement on investment income is at it's lowest.  Most carefully selected buy-to-let investments should be self financing anyway with the rental income covering any investment costs.  Then during the investment period your mortgage payments will reduce if your repayment mortgage works on a reducing balance basis.

As you look to pay off your mortgage before you retire at the end of the mortgage period you will have an asset that pays you a steady rental income and you have a valuable capital asset should you wish to 'cash in your chips.'

Government policy doesn't make sense

My question to the government and politicians is why oh why can we get huge tax breaks for investing in all sorts of 'dodgy' stock market based investments when there is nothing available for investors looking to purchase a safe steady investment that residential property has proved to be.  Does this make sense to any body else?

To read the full FT article.

Landlord insurance - expert brokers

Letting agent fees

Letting agents are frequently criticised for unfair fees.  Firstly is this fair?  Well yes and no.  It is true that letting agents are largely an unregulated business. There are certain trade organisations such as ARLA that gives landlords a certain amount of redress but membership is optional.  There is no over riding professional organisation that decides how much you get charged for a specific service which ever letting agent you use like you may encounter if you go to a NHS dentist.  But in many ways aren't we all beyond that?  In a deregulated world isn't competition and variety of service and charging structures good?

All this lack of regulation means that the onus is on the landlord to ensure that they know exactly what they are signing up for and how much it costs.  So how much should I pay for my letting agent?

Shelter have recently carried out a survey where they reveal that one in four landlords and tenants feel hard done by because they have been charged inflated fees.  The obvious ones to look out for our dubious administration charges and a charge for unnecessarily renewing the tenancy agreement.  This activity was one that Foxtons in the past have used to much effect and criticism.

My advice is to make sure that before you sign up with a letting agency that you get an agency agreement and that you study it fully before signing.  If you don't get one and the letting agent refuses to give you one then don't use that letting agent

You can of course avoid all this potentially hassle by not using a letting agent at all.   The worlds your oyster when it comes to letting agents but just like anything in this life....make sure you know what the letting agent fees are and what you are agreeing to before you sign on the dotted line.

Free property management software, Free tenancy agreements

BTL mortgage best products

Max LTV	Initial Rate	Term	Completion fee	Booking fee	Incentives	Overall Cost for Comparison
85%	5.49% Discount	2 Years	2.5%	£130.00	No	6.9% APR
85%	5.79% Discount	2 Years	3%	£130.00	No	7% APR
80%	6.09% Fixed	2 Years	3%	£130.00	No	7.1% APR
80%	4.79% Discount	2 Years	£2999	£130.00	No	8.2% APR
80%	4.79% Fixed	Nov 30 2014	3.5%	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6.4% APR
75%	3.85% Discount	2 Years	£2450	£250.00	No	5.4% APR
75%	3.5% Fixed	2 Years	3.5%	£250.00	No	5.3% APR
75%	3.49% Tracker	Sep 30 2014	2%	£195.00	Cashback £500	6% APR
75%	4.49% Fixed	Oct 31 2014	1%	£0.00	Free valuation and free legals for remortgages (properties valued up to £500,000).	5.1% APR
70%	4.25% Discount	2 Years	0%	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6% APR
65%	3.25% Tracker	Sep 30 2014	2%	£195.00	Cashback £500	5.9% APR
60%	5.49% Fixed	2 Years	2.5%	£130.00	No	6.9% APR
60%	3.25% Discount	2 Years	£1750	£250.00	No	5.3% APR

Search the whole BTL mortgage market free
 
Email: info@propertyhawkbtlmortgages.co.uk 

Tel: 029 2069 5446 

IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice. Please check our website regularly to see the most up-to-date products available.

Your home may be repossessed if you do not keep up repayments on your mortgages.The Financial Services Authority does not regulate some forms of mortgage.

---

 

Residential investment opportunities

Landlords looking for some investment opportunities should have a look at Allsop's website.

There are certainly investment opportunities out there.

This is providing you can access finance.  A big but but there is always hope.  Check out the Property Hawk Mortgages link below.

Mortgage Search - FREE advice

Landlord legal forum - registration

Property Hawk's Landlord Legal Forum has made a valued contribution for landlords looking to clarify specific legal and technical issues relating to the letting of their investment properties.  Unfortunately,  our forum provider Xenforo has been targeted by a wave of spam registrations.  In the short term we have had to turn off automatic registration because of this wave of eastern european spammers.  If you have submitted a genuine application to join the forum and have either be rejected or have heard nothing and what to post please send us an email and we will approve you application so that you can get posting your question and you can get your answers.

Many thanks

Chris Horne
Property Hawk

Landlord legal forum

Profiting from my investments

Measuring profits when it comes to residential investment property is a difficult one.  This is because there are two sources of potential gain; firstly from your rental profits and secondly from an uplift in capital values.

I often get contacted by Property Hawk users asking me about using the Property Manager to work out their annual profits.  I say to them in short that the Property Manager doesn't work like that.  Largely because for most landlords an annual profit is a pretty useless metric for you as a property investor.  Most landlords will hold their investment properties for the long-term (over 15 years) and what they want to know is the capital profit or worse case scenario loss when they sell and realise their investment.

Property Manager does record gains

Looking at the capital side of the equation the Property Manager allows you to record the amount of Equity contained within your property investment.  This takes into account the amount of borrowing secured against the investment and calculates the amount of additional borrowing against the investment should the landlord look to refinance.  On the income side,  have a look at the Cashflow section under Investment.  This looks clearly at the ongoing income generating capacity of your investment.

Landlord insurance - professional rate

Do I need a tenant guarantor?

I've just let my apartment!  Result....!  What's more I managed to do it for FREE through Gumtree.  This is the first time I've been successful a letting any property using Gumtree but it proves it can be done.

It did take a lot longer than I expected.  Marketing started about the beginning of July (57 days according to Rightmove) and to take two months to get it let is disappointing.  However, the reasons were clear.....poor presentation: lots of clutter, an overgrown garden and a couple of bits of scrappy tiling.  It's worth remembering that most tenants can't and don't see beyond the 'here and now'.

The tenants are a couple of junior international cricketers.  If I was into cricket I might have been impressed...but I'm not.  My focus is more on the fact that as juniors they are not going to have any sort of a credit history and therefore it's pointless doing a credit check.  This means that I'm going to need a tenant guarantor.  I've spoken to one of their mothers and she is happy.  So we are all happy.

Even better if in the fullness of time they become big cricketing stars.  I've got their autographs on my tenancy agreement.  Sweet!

Landlord insurance - expert brokers

Are Squatters Tenants?

New laws came in last week regarding squatters, following the publicity regarding this I have had several enquiries from Landlords asking how this affects them.

Just to clear up the position, if someone is occupying your property under an Agreement, such as an Assured Shorthold Tenancy Agreement or a licence they are not a squatter.

If you are having problems with a tenant and you would like possession of your property you need to serve a Notice Seeking Possession on your tenant and then if the tenant does not move out you then need to obtain a possession order from Court.

If you need any assistance regarding possession please contact me on propertyhawk@fidler.co.uk.

Rebecca Brough

Free property management software, Free tenancy agreements

The return of the commercial HIP?

For those landlords that own a commercial property William James of our legal partner Fidler & Pepper outlines one of their added services for their clients with commercial property:

"Many of you will be familiar with HIP's or Home Information Packs that were compulsory for residential sales a couple of years ago. In essence they were a good idea with the fault lying more with the execution of their introduction and their content.   With this in mind it got me thinking as one of the areas that client's get most frustrated about when starting a new commercial transaction (and residential for that matter) is the length of time  it can take filling out all the paperwork at the start of the transaction.

Fundamentally, completing documents associated with the sale prior to actually finding a buyer e.g. When the property is first marketed is actually a really good idea. It allows all the aspects of the sale to be discussed and resolved well in advance and also to identify any problems that the property may have and resolved in plenty of time before the buyer is found.  As such Fidler & Pepper have started to try and persuade agents and clients to complete all the forms associated with a commercial transaction as soon as the property is marketed. This allow contracts to go out as soon as a buyer is found, irons out any problems that the property may have and overall means that the transaction time is greatly reduced.

Best of all its Free!

We don't charge you a penny but hope that you will use us when a buyer is found.
If this is something that interests you then give us a call on 01623 451111 or email at wjames@fidler.co.uk to find out more. "

Free property management software, Free tenancy agreements

The most popular BTL mortgages

Max LTV	Initial Rate	Term	Completion fee	Booking fee	Incentives	Overall Cost for Comparison
85%	5.49% Discount	2 Years	2.5%	£130.00	No	6.9% APR
85%	5.79% Discount	2 Years	3%	£130.00	No	7% APR
80%	4.79% Discount	2 Years	£2999	£130.00	No	8.2% APR
80%	4.79% Fixed	Nov 30 2014	3.5%	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6.4% APR
80%	6.09% Fixed	2 Years	3%	£130.00	No	7.1% APR
75%	3.85% Discount	2 Years	£2450	£250.00	No	5.4% APR
75%	3.5% Fixed	2 Years	3.5%	£250.00	No	5.3% APR
75%	3.49% Tracker	Sep 30 2014	2%	£195.00	Cashback £500	6% APR
75%	4.49% Fixed	Oct 31 2014	1%	£0.00	Free valuation and free legals for remortgages (properties valued up to £500,000).	5.1% APR
70%	4.25% Discount	2 Years	0%	£199.00	Free valuation up to £335 for purchases and remortgages and free legals on remortgages only.	6% APR
65%	3.25% Tracker	Sep 30 2014	2%	£195.00	Cashback £500	5.9% APR
60%	5.49% Fixed	2 Years	2.5%	£130.00	No	6.9% APR
60%	3.25% Discount	2 Years	£1750	£250.00	No	5.3% APR

Search the whole BTL mortgage market free
 
Email: info@propertyhawkbtlmortgages.co.uk 

Tel: 029 2069 5446 

IMPORTANT! Due to current market conditions, lenders are withdrawing and replacing products with little or no notice. Please check our website regularly to see the most up-to-date products available.

Your home may be repossessed if you do not keep up repayments on your mortgages.The Financial Services Authority does not regulate some forms of mortgage.

---

Section 21 Notice - Replacement AST

How would a landlord stand if they had a valid section 21 notice if they replaced an existing tenancy agreement with a new AST.

Have a look at our landlord legal forum for the details.

Here are some useful details on filling out a section 21 notice.

Landlord insurance - quality brokers

U-switch if you want to!

Most tenancy agreements will have a clause in them preventing tenants swapping energy supplier or utility supplier without prior written approval.  It's there for a reason.  The reason being so that as a landlord you know if there is a problem who you need to contact.  There are after all literally hundreds of different suppliers inhabiting the market and trying to track down in the case of an emergency which one supplies your buy-to-let is a nightmare.  Believe me I've tried!

Tracing the electricity and gas supplier to your buy-to-let property

To trace who supplies your buy-to-let property with gas you will need to contact the M Number Enquiry Line (formerly Transco) on 0870 608 1524.  To find the electricity company contact your local electricity distribution company.

More problematic in my experience is when tenants look to move telecoms suppliers.  This can result in your property resembling the back panel of the space shuttle with the amount of junction boxes and residual wiring.

Should tenants be allowed to swap utility suppliers

A recent report by U-switch highlighted that 'apparently' one in ten tenants were prevented from switching their utility provider by their landlord.  Personally, I can see no reason to prevent my tenants from switching and potentially benefiting from cheaper or better service.  Could a landlord stop them changing?  Probably not as this would be considered to be an Unfair Terms and Condition and subject to challenge through the courts.

So tenants - U-switch if you want to but just tell the landlord first!

Landlord insurance - specialist brokers

Are overseas students worth it?

A recent report in the Sheffield Telegraph indicated that an influx of foreign students is forcing up city centre rents.  Is this a Sheffield phenomenon?  I suspect not.  The foreign students that descend on our shore each year it must be remembered are often the offspring of their countries elite.  In previous decades the huge disparity in wealth between the west and emerging countries such as China and India meant that even the affluent struggled to bridge the costs between their own country and the west.  No longer.  Looking at rents and property prices in Shanghai or Mumbai, Sheffield along with other UK cities probably seems a snip!  I must add that I know landlords that have let to foreign students and that their experience is that they have been exemplary tenants.  I have also heard of horror stories.

Higher rents

The Sheffield Telegraph reports that a one bedroom apartment in the city centre that would have rented for £500 in 2008, rents now for £555 and at this time of the year the same Sheffield rental property could achieve £595 with the extra demand from affluent foreign students looking to rent in the city.

Student guarantor

Landlords looking at renting to foreign students have one potential risk as far as I can see.  For UK based students it is always advisable to obtain a UK based guarantor.  However, this will not be possible for a foreign student.  Even if the students parents were prepared to sign a guarantor agreement enforcing it through UK law on individuals living under a different countries jurisdiction I would imagine would be practically impossible.

Landlords dilemma

Therefore the landlord's  dilemma is that they may get higher rents but if the tenant decides to leave or gets chucked of the course and fails to pay the rent or damages your buy-to-let and then gets on a plane to Beijing then how are you going to get your money back?  The only true safeguard I can see is taking a very large deposit and payment up front for the whole rental period.

I'd be interested to hear other landlords experience of renting to foreign students.

Landlord insurance - specialist student landlord cover

Yield investors should go North

It may be grim up North but by eck the investment yields are good.

Have a look at this recent article by Moneyweek.  The author is generally sceptical about investing in residential property.  However he has unearthed properties across the north and midlands with double digit yields.  The downside is that many of these properties require upgrading and considerable capital investment on the part of the landlord.  But for those investors who are prepared to put in the work, the income is there.

 Sounds like the good old days to me.  You don't get owt for nowt in this game!

Mortgage Search - financing investments