What makes a property a good investment property?

Find a profitable buy-to-let opportunity with this expert advice from Belvoir


At a time when property prices are falling and there are more tenants looking to rent properties than ever before, it would seem that there’s never been a better time to become an investment landlord. But, choosing the right investment property can have a substantial impact on potential profit - both in terms of capital growth and rental return – so think carefully before sealing the deal.


Investment investigation…

It goes without saying that any savvy investment landlord should always do their research thoroughly before investing in a buy-to-let property.

It’s important to check out the competition, make sure there’s a buoyant rental market present and investigate if the area is already saturated with empty rental properties that haven’t let.

“Often investors don’t have any preconceived ideas of what they want or where, so it’s vital that they do their research or get advice from a property management agent,” says June Rakeshaw, Proprietor of Belvoir Cheadle.

A good property management agent should be able to accompany landlords on viewings and advise whether they think a property will make a good investment. “At Belvoir we know what will let quickly and where,” says June. “So we can steer investment landlords towards areas that are popular for rentals but are not already saturated.”


The ‘perfect’ property…

After doing your research and identifying a ‘need’ for more properties to let in that area you then need to find ‘the right’ property.

A good investment property is one that is going to attract a wide cross-section of tenants, and is therefore likely to avoid any long void periods.

“It essential to find a property that will let well,” says June. “We find that three-bed semis are good options as they open themselves up to two key markets – professional couples and families. This flexible living allows families to use the three bedrooms for themselves and their children while professional couples often use the space as a master bedroom, spare bedroom and study. If you can appeal to two good markets the property is more likely to let quickly and there is less chance of void periods.”

And remember, you’re not just ‘selling’ the property you’re ‘selling’ the location too. So, investing in an area which will be attractive to tenants is vital. “It’s essential to identify the needs of each market and link that with the area you’re hoping to invest in,” says June. “You need to paint a lifestyle so it’s not a massive leap for tenants to imagine themselves living there.

“Professional couples will often want a train station nearby, plus a major road network. Families will want to know there are excellent local schools. Good local amenities, such as supermarkets and restaurants, are also vital. Landlords will need to ‘sell’ the area to tenants as well as the property.”


Capital growth versus rental return…

If you’ve done your research carefully and chosen what seems like the ‘perfect’ property then the final thing you need to get right to ensure your investment is a profitable one is the price and potential costs.

Will the vendor negotiate a better deal for you? What will the property cost you in the short-term and long-term? Will it need refurbishing and on-going maintenance? And, will the property appeal to buyers as well as tenants so you can benefit from capital growth when you decide to sell?

“There are certainly bargains to be had at the moment,” says June. “Properties are currently going at quite a good price. However, the cheapest property may not be the most cost-effective in terms of getting a good rental return or avoiding void periods, so make sure you do your research.” How ever low the price tag, poor quality properties which require major refurbishment, plus sustained levels of high maintenance may prove a false economy.

“Also, look at all the options and think outside the box,” continues June. “Could you buy a larger property and convert it into flats? Several 1-2 bed flats in a block could potentially give you a higher rental return, plus you’re also likely to benefit from increased capital growth. If you’re going to be re-furbishing anyway it’s not necessarily going to mean a huge additional cost to convert instead and, if there are similar properties around it, it will fit in well.”

Look carefully at your budget and make sure you do your maths. “Before investing one of the the most important things for any landlord to look at is the expected rental return plus the potential for capital growth,” concludes June.

To ensure the best rental return for your property and to minimize the potential of void periods, place your property with a professional property management agency, such as Belvoir. They will be able to market your property and negotiate a realistic rental return on your behalf. To find your nearest Belvoir office, visit their website at http://www.belvoirlettings.com/


CASE STUDY

“It’s certainly a great time for landlords to invest”

Investment landlord Grahame Lawrence, from Brighton, says now’s a good time to invest if you have the capital available…

“I became an investment landlord about 10 years ago and now have four properties throughout the UK,” says Grahame.

“I decided to become an investment landlord at the time because property was rising in value and I thought it would be a good investment as I would be able to benefit from capital growth and provide a pension.

“Before investing a landlord has to decide what market he or she is trying to appeal to,” continues Grahame. “For example, if I was going to buy a holiday let I’d look for a property by the sea or in the country. If I was looking for a short-term let I’d probably look at the student market and make my investment in a major city with a university. A three-bed terrace or semi would be ideal. For longer-term lets I tend to go for smaller properties, perhaps a two-bed. Towns and their suburbs are particularly popular with tenants.

“All investment properties should be easy maintenance and in a good location with adequate local amenities.

“As most properties are currently selling at good prices, it’s certainly a great time for landlords to invest if they have the capital available.”


INVESTMENT TICKLIST

If you can you answer yes to the following ten questions you’re likely to have found a good investment property…

1. Is there a high demand for rental properties in your chosen area?
2. Have you made sure the local rental market is not already saturated?
3. Does the locality have good amenities and schools?
4. Is there good transport links or a major road network nearby?
5. Will the potential profit outweigh the costs?
6. Is the property bright, modern and attractive?
7. Does the property have adequate parking and outside space?
8. Is the property in good condition?
9. Will the property require little on-going maintenance?
10. Will the property appeal to both renters and buyers so you can also benefit from capital growth when you decide to sell?

Free property management software, Free tenancy agreements

New rental figures from Belvoir could represent early signs of recovery

Figures produced by Belvoir, one of the UK’s largest independent specialist lettings agencies, show that national average rents across Belvoir offices are almost identical to one year ago.

Mike Goddard, CEO and founder of Belvoir, says: “Our statistics reveal that in March 2008, the average national rent that Belvoir properties were being marketed for was £690.30. Over the next 12 months there was a degree of fluctuation and then a gentle decline in rental income.

The reasons for this are now well known and include the collapse of the residential sales market, an influx of properties to the market by reluctant landlords and also an uncertain financial climate which slowed the entire economy and caused many migrant workers who were renting to return to their home countries. However, figures from the most recent Belvoir Lettings rental index are very interesting and show that average national rents in March 2009 are now almost back to exactly the same level as they were one year ago.”

Mike believes that the new figures could represent the early signs of a market recovery. “I think the market is beginning to settle down again and we are seeing more tenants appearing,” he says. “People are deciding they would prefer to rent rather than buy and this is resulting in an increase in tenants, which is beginning to drive rents up.

“Belvoir has over 140 offices throughout the UK, including Scotland, Wales and Ireland, so our figures give a broad representation of what is happening across the country and shows the strength of Belvoir’s position in the market.”

Big and beautiful

A fall in house prices means a rise in the number of larger properties to let, say the experts at Belvoir Lettings...


With the fall of house prices by 13.5% in 2008 and valuations set to continue to slide throughout 2009 it’s not surprising that more and more people are looking to rent out their homes rather than sell.

While it’s not been unusual for the rental market to be flooded with two-bedroomed houses available to let, the current credit crisis now means that many larger homes and country piles have also been added to the rental mix.

“There has been a sudden increase in larger properties to rent mainly due to the sales market collapsing,” says Proprietor of Belvoir Camberley Craig Walker. “People still have to relocate, move or downsize and upsize despite having a large property therefore they have to make it work for them rather than leave it empty, thus renting is often the only option - in the market they are known as ‘accidental landlords’.”

Proprietor of Belvoir Peterborough and Corby Terry Lucking agrees. He says, “lack of sale demand, sellers not being prepared to accept a low sale value, valuations coming in below mortgaged value and therefore the vendor is unable to sell, plus many sellers believing values will increase so they want to hold on to their properties mean that there’s been a rise in larger rental properties available.”

The good news for landlords with larger properties to let is the increased tenant awareness that larger homes are often cheaper to rent than buy. But, with more large houses available to rent than ever before, competition for the right tenants is stiff.

“There are too many larger properties and simply not enough tenants,” says Craig Walker. “Tenants can easily be put off by larger fuel bills, running costs and council tax etc.”

“There are certainly more large properties available than there are renters,” agrees Terry. “The market will balance one day but until then you have to take action to make your property more attractive than the others available.

“Many default landlords (non buy-to-let) do not believe a tenant should enjoy the home in better condition than they lived in,” he continues. “But, wake up! It is a competitive market and action is needed if you want yours to be in the top 20% of any short list.”

So, how can landlords give their large property appeal in an already saturated lettings market?

“Be realistic with your rental figure, be open-minded to the tenants’ position (ie pets) and have a flexible attitude, wherever possible, to long-term renting,” advises Proprietor of Belvoir Bourne Gary Legge. “Alternatively, you could even turn it into an HMO (House of Multiple Occupancy) or divide it up into two or more smaller properties,” adds Craig Walker.

Proprietor of Belvoir Peterborough and Corby Terry Lucking agrees. Plus, he says that investments need to be made to ensure a speedy rental return.

“Most larger properties are not BTL (buy-to-let) or were ever planned to be retained as a BTL so often are very personal and many are dated when compared to purpose-purchased modern or new BTL properties,” he says.

“Invest and make the property neutral and bright. Lose old-fashioned light fittings how ever much you may love them and fit plain soft colour curtains - lose those heavy curtains that might have cost thousands. Fully redecorate in soft beige/magnolia emulsion and fill in all the holes left by your family prints. Remove large trees and hedges that obscure vision and block natural light too.

“Also, look at what else is available in your area and make sure your property is more attractive to look at from the road, more attractive when you walk in and the price is attractive or lower than the others.”

“Meet the viewers with the agents and talk to them about schooling and the neighbours,” continues Terry. “Demonstrate a helpful attitude now and it will help win them over. Ensure the house communicates a message you care about it and no obvious maintenance issues are left outstanding too.”

So, what type of tenant is a landlord with a large property likely to attract?

“If you set the standards right from the start and make the rent level realistic but also high enough as a barrier to those below a certain income you should attract company lets, job re-locators getting to know the area, and professional types, such as doctors and engineers,” says Gary Legge of Belvoir Bourne.

Terry agrees. “If presented to a high standard you will attract a higher income-type tenant. However, if you leave the property too personal or dated, with poor routine maintenance, you’re most likely to attract sharers or mums with kids claiming Local Housing Allowance.”

“To ensure you attract the right tenant for your property go through a reputable property management agent, such as Belvoir,” advises Craig Walker.

• To find your nearest Belvoir office, visit their website at http://www.belvoirlettings.com/


Top tips for letting a large property...

• Be realistic about your rental figure
• Stay open-minded to a tenant’s position (ie pets)
• Have a flexible attitude to long-term rental
• Update and modernise throughout
• Make the property neutral and bright
• Offer to visit for garden and swimming pool maintenance throughout the tenancy
• Lose old-fashioned light fittings and curtains – how ever much you may love them
• Turn your property into a HMO (House of Multiple Occupancy)
• Consider dividing the property up into several smaller properties
• Fill all the holes left by your family prints
• Redecorate in soft beige/magnolia emulsion
• Research the competition and make sure your property is a more attractive option
• Remove large trees and hedges that obscure vision and block natural light
• Sell a lifestyle by meeting the viewers with the agents and talking to them about schooling, neighbours and the surrounding area
• Leave no obvious maintenance issues outstanding
• Ensure the house communicates the message that you care about it
• Get a reputable property management agency, such as Belvoir, to market the property for you

Happy 1st birthday Belvoir Boston!

First year of trading a success for Belvoir Boston...

After opening the doors to Belvoir Boston just over one year ago proprietor Donna Burrell has met with great success – now, with three members of staff and more than 100 properties on her books Donna recalls her journey...


Question: Why did you want to run a lettings agency?

Answer: “I decided to open the business after returning from working abroad,” says Donna. “I could see a lot of potential in working for myself and knew I didn’t want to work for anyone else.
“I searched for months and months for the right business opportunity and finally decided on the lettings industry. I could see great potential in the lettings market - buy-to-lets have gone crazy over the last couple of years and it’s surprising how many people own two or more houses.
“In fact, the lettings market seemed the recession-proof option. In the current climate more and more people are offering their homes to rent rather than selling them at a loss – renting is really common in Europe and it seems to be taking off over here too.
“Added to this I’d always been interested in property - I’d been both a tenant and landlord myself – and, a bad experience with the agency which let my own house while I was working abroad made me think I could better. I wasn’t impressed with their service at all.”


Question: Why Belvoir?

Answer: “Belvoir seemed the perfect solution for me,” says Donna. “I already knew of the brand, plus the Grantham Central Office isn’t too far from Boston, so they’d be near by if I needed them. I couldn’t believe it when Belvoir Boston was still available and I applied straight away.”
Question: How did you feel when you opened the doors for the first time?

Answer: “Excited and apprehensive at the same time,” remembers Donna. “Strangely enough I was mopping the floor on the Sunday in preparation for Monday’s opening when my first tenant walked in looking for a property to rent. He was definitely the sign of things to come... and, when I did open the doors properly on the Monday I had more than 60 tenant enquires in just one day!
“The flood-gates had opened and tenant after tenant came in. I realised then that there was a massive demand for rental properties in Boston and this meant I could then go to the landlords and tell them that tenants were queuing up. It was a good feeling and a brilliant achievement.”


Question: What’s been your success in the first year?

Answer: “I’m really pleased with how things are going,” she says. “I took on my first employee last December and now have an additional full-time and part-time person too. And, as for properties, I have nearly a 100 fully-managed properties, plus others that are let only.”


Question: What’s the most satisfying thing about the job?

Answer: “I’m managing a lot of properties with a massive amount of responsibility,” says Donna. “After all, I am dealing with people’s biggest assets – their homes. Positive landlord and tenant feedback is very satisfying and it’s great to know you’re doing a good job. I never turn anyone away and always strive to find suitable properties for tenants who are struggling to find properties on their own – it certainly feels good seeing them settle into their new homes.”


Question: What are your hopes for the future?

Answer: “To keep doing more of the same and to keep growing,” she says. “Ideally, maybe in the next year or so, I’d like to take on another office and grow my territory but this will need some extensive research first.
“As for now, Belvoir Boston has grown faster than I ever thought it would,” she continues. “When I opened the doors on November 19, 2007, I didn’t realise what a fantastic journey I was about to embark on. It just goes to show that if you’ve got a dream you should hang on to it - sometimes they really can come true!”


• To find your nearest Belvoir office, visit their website at http://www.belvoirlettings.com/


Donna’s top tips for running a successful lettings agency

* Always remain exceptionally professional
* Always follow through on promises made
* Have an open and friendly attitude
* Try to get involved in community events
* Join the local Chamber of Commerce or Ladies’ Circle to get known on the local business circuit
* Good customer service skills are essential
* Listen to the needs of landlords and tenants and work out a solution together
* Ensure you’re accurate in what you say at all times
* Keep informed - try and find out as much as you can about industry laws and regulations so you can pass key information on to landlords and tenants
* Ask for feedback from landlords and tenants, plus get testimonials too
* Encourage potential landlords and tenants to feel relaxed by setting out your office in an approachable and friendly way
* Aim to be the number one lettings agent in your area

Going, going... gone!

The experts at Belvoir Lettings reveal the dos and don’ts of buying at auction

What mistakes do buyers often make at auction? How can you spot a bargain? And, how can you ensure that you’re investing in a money spinner NOT a money pit? Here, the experts at Belvoir Lettings reveal all...


“The main problems buyers seem to have at auction stem from lack of research beforehand, bidding excitement resulting in paying too much, not sticking to their budget, and not factoring in renovation costs, timescales and market forces,” says Gary Legge, proprietor of Belvoir Bourne. “Buyers need to ask themselves why the property’s up for auction too.”

Before hearing the gavel go down at auction it is essential to be fully prepared. Study the auction catalogue, visit the property you’re interested in if possible and set yourself a realistic budget… and stick to it! Remember, as well as the buying price you may also have to pay renovation and refurbishment costs, repairs and maintenance, running costs, service test costs, solicitor’s fees – plus, have some change left over for a contingency fund.

Proprietor of Belvoir Sheffield Rick Flay advises, “Don’t let emotion make you overbid. And, don’t enter the bidding process too early as all you are doing is helping push the price up – remember, it’s the last bid that counts not the first. Also, don’t be bullied into bidding in amounts that the auctioneer wants - if he says I need another £5000, you can bid higher than the previous amount by £1 if you want to!”

A clever buyer will also think about what they’re trying to achieve before bidding on a property at auction. An investment property needs to deliver what it promises.

“You can get fantastic bargains at auction but is it a bargain if it's going to sit empty for a few months every year or if it's going to cost a fortune to refurbish or convert before you can even let it?,” says Terry Lucking, proprietor of Belvoir Peterborough and Corby.

“As there is currently an acute oversupply of rental material you've got to look at the long-term investment and it's extremely important that the property works for you financially,” he continues.

“To do this it is paramount that you keep the property occupied. Because of the current rental oversupply, tenants are now buying with the eye. To keep your property occupied it must be in a good area, it must look pretty on the marketing material and, when a tenant walks in, they need to go wow!

Wayne Mearns, proprietor of Belvoir Southend-on-Sea adds, “Ensure you know the area and popularity of such a property so that you may ensure that re-letting is quick.”

So, is your auction property going to be a money spinner or a money pit?

“Don't get too excited about an auction property being cheaper than the open market,” continues Terry. “10 or 20k cheaper may sound attractive at first but this could soon get absorbed if the property is left empty for a few months each year or if extensive renovation is needed.

“If you're a builder, investor or can do the work yourself then you may be able to convert competitively and steal a deal. But if you need to spend a fortune employing contractors to modernise a property, buying at auction could be a false economy for you.

“Surely it's better to put deposits down on multiple already-refurbished properties than buying cheap and spending your capital on kitchens and bathrooms - you probably won't be able to release this capital for at least six months.”

Terry strongly advises that you don't get emotionally washed away with the deal either. “Question your own judgement,” he says. “And, be prepared for others to question your judgement too. Before bidding go and see your local letting agent and get their expert opinion on whether the property is going to be a financially-sound investment for you.”

Proprietor of Belvoir Southend-on-Sea Wayne Mearns adds, “Always inspect the property prior to the auction with a letting agent. We are not specialists at maintenance but we know what the most common faults are when buying an investment property and what will need to be done to bring the property up to a good letting standard.”

• To find your nearest Belvoir office, visit their website at http://www.belvoirlettings.com/

Top tips for buying at auction – 10 dos and don’ts to remember!

Don’t... overbid in the excitement of the sale

Don’t... push the price up by entering the bidding process too early
Don’t... be bullied into large bidding increments by the auctioneer
Don’t... be late. Ensure you arrive early enough to survey your surroundings, sum up the competition and get a good bidding spot
Don’t... be tempted to bid for a property you haven’t done your homework on because the one you originally wanted got snapped up by another bidder

Do... buy with your head not your heart
Do... do your research
Do... stick to your budget
Do... factor in renovation costs
Do... ask yourself why the property is up for auction

TV appearance for Belvoir Sunderland’s Neil Whitfield

Proprietor of Belvoir Sunderland Neil Whitfield appeared on screens throughout the country last month when he was approached to take part in the BBC's lunchtime business, consumer and personal finance show, Working Lunch.

Business correspondent Rob Pittam and his cameraman wandered into Belvoir Sunderland looking for people to take part in a feature highlighting a report sanctioned by the Royal Mail which claimed that Sunderland had the most new business start ups on a national level. And, Neil was happy to oblige.

“I was surprised when the correspondent and cameraman walked into the office looking for volunteers to appear on the BBC's Working Lunch,” says Neil. “It was completely unplanned and impromptu - but I was happy to get involved. I knew it would be good publicity for Belvoir Sunderland, both locally and nationally, and could potentially be seen by many investors and landlords. I had nothing to lose and potentially a lot to gain.”

The recording took about half an hour involving an interview section followed by other shots around the office and external shots of potential tenants looking through the window at the properties to let.

Neil says he was pleased to have been involved but couldn't help feeling nervous when he watched the programme back afterwards on iplayer. “I was conscious that I wanted to come across well and apprehensive about projecting myself well,” he says. “But it was a good piece and I was pleased I'd done it.”

So, what advice would Neil give others who are approached to take part in a TV programme?

“Without a question just go for it,” he says. “Don't be shy. A TV appearance could deliver long-term benefits for your business and I thoroughly enjoyed taking part.”

The episode of Working Lunch featuring Neil was aired on Wednesday, 11 November.

To find your nearest Belvoir office, visit their website at http://www.belvoirlettings.com/

On your bike!

“We’re reducing our carbon footprint,” says Belvoir Sheffield

With more and more negative press coverage about global warming, Belvoir Sheffield have gone one step towards reducing their carbon footprint by their intoduction of the retro Belvoir-branded scooter.

This nifty little scooter can do up to 100 miles to the gallon, which saves money as well as reducing fuel consumption and long-term damage to the planet.

“I decided to introduce the scooter to our fleet of Belvoir-branded vehicles (we already have two Belvoir-branded minis) as it seemed a fun iniative which would save time and money, plus help reduce our carbon footprint,” says Rick Flay, proprietor of Belvoir Sheffield.

“It’s used mainly by Belvoir Sheffield’s viewers when they’re meeting tenants at properties and also for doing inspections and moving in and out visits.”

“The scooter’s ideal to avoid traffic jams in Sheffield’s busy city centre and it’s perfect for getting from A to B when commuting between tight appointment deadlines. It’s very noticeable too – it’s certainly got everybody talking about Belvoir and we’ve had some great anecdotal feedback so far.”

A tick list for tenants... What are tenants looking for in a rental property?

With the wide choice of rental properties now available tenants can afford to shop around for that ‘perfect’ property.

But, what are tenants currently looking for in a rental property and how can you make sure they will want yours?

Proprietor of Belvoir Bournemouth Kate Jackson says, “Tenants are looking for good value accommodation that isn’t dated. The property must be in top condition and all safety laws must be adhered to. Added to this, the property should be warm and energy efficient with plenty of storage – and the tenant must have confidence that any problems during their tenancy will be dealt with effectively and swiftly by the landlord or agent.”

Ensure your potential tenants feel at home by asking yourselves the questions about your property that they will inevitably be asking themselves too...

√ How much can I afford to pay?
Make sure your property is competitively priced for the area and look to reduce the rent you’re asking if necessary. In the current climate all prospective tenants will be looking at their budgets and calculating what they will have to pay each month, including bills. Some savvy landlords are even offering the first two weeks rent free to ensure a quick let. Kate adds, “In the current climate we’re finding a lot more tenants are putting in offers on rental properties and all these must be considered by the landlord.”

√ What’s the location like?
They often say location is everything when buying a house... and renting one is no exception! If looking to invest in a buy-to-let, search in low-crime areas with good transport links, such as a major road network or a train station nearby. Think about what the area is like and visit the neighbours to find out what it’s like to live there.
And, remember, areas with universities, hospitals or major industry are likely to be densely populated with people looking for temporary homes.

√ Are their any local amenities?
Potential tenants will want to know that they can enjoy their chosen lifestyles with ease, so ensure that there are good range of amenities, such as schools, restaurants and shops nearby.

√ What condition is the property in?
Tenants will be put off by properties in a poor condition so give your property a face-lift – whitewash interior walls and clean the carpets. Crumbling paint or signs of damp are going to send potential tenants straight back out your door. The structure of your building is important too – leaning walls, large cracks and leaky gutters won’t help you let the property quickly either. Kate says, “Tenants are now just as picky as owners – ensure your property is in a good condition, neutrally decorated and has a modern kitchen and bathroom.”

√ Are the appliances in good working order?
Potential tenants will not only be inspecting the interior and exterior of your property - they will also be taking a close look at the appliances you’re supplying. Kate says, “Tenants are definitely looking for good quality white goods and, wherever possible, a microwave and dishwasher too – ensure your appliances are modern and in good working order before marketing the property.”

Take a walk around your property and consider the following:-

• Are there enough telephone points?
• Are their sufficient kitchen utensils?
• Is the shower more than a dribble?
• Is there a dishwasher and microwave?
• Does the toilet flush easily?
• Are the fridge and freezers big enough?

√ Am I going to be warm?
Potential tenants will be looking for a good central heating system and they’ll want to know all the radiators actually work too.
Good insulation is also essential. Double glazing, well-fitting doors and windows and roof and wall insulation will all help to keep your tenant warm, as well as saving them money on their gas and electricity bills.

√ Is there going to be enough room?
Are there built-in wardrobes? Big enough work-surfaces? Sufficient kitchen units? A tenant will want to know that they’ve got enough room to live comfortably. You can’t make a small house bigger but you can come up with clever storage solutions to make living in a small space appear more appealing. Kate says, “Plenty of storage is always a good thing to offer.”



√ Am I going to be safe?
Make sure that a prospective tenant will feel safe at your property by doing the following (and, remember, many of these things are legal requirements too!):-

• All soft furnishings should be labelled as fire resistant
• Fitting a burglar alarm
• Point out the carbon monoxide detectors
• Fitting five-lever mortice locks and window locks
• Providing a safety blanket and a fire extinguisher
• Make sure the smoke alarms work
• Ensure all electrical appliances have been PAT tested
• Provide copies of your gas and electric certificates

√ What happens if I have a problem?
Make sure your potential tenant knows that you are there to help and will try to fix problems and do minor maintenance as quickly and efficiently as possible. You may even want to leave them emergency contact numbers for local plumbers or handymen.
Kate adds, “Additionally, if your property is fully-managed by a good property management agency, such as Belvoir, it will give your tenants the confidence that problems will not only be dealt with swiftly but also helpful advice will only ever be a phone call away.”

To find your nearest Belvoir office, visit their website at www.belvoirlettings.com

Tailor-made tenants

The experts at Belvoir Lettings share their secrets on what makes tenants into ‘good tenants’ and how to attract them…


With the recent national boom in rental properties available, competition to secure the ‘best’ tenants is now stiff – but, with a bit of foresight and planning, you can always ensure you attract the right people into your property... and leave the undesirables standing at the door.

So, what makes a tenant into a ‘good’ tenant? The perfect landlord’s dream would have a secure monthly income and a responsible mature attitude, they would pay their rent on time EVERY month, treat the property with respect and be happy to look after the garden plus do minor interior maintenance – if they were also looking for a long-term tenancy you’d definitely be on to a winner!

“If you ask many landlords, a good tenant is one that pays their rent on time,” says Paul Cartwright, Proprietor of Belvoir South Hants. “However, in my experience, this is only part of it. I would add to this that a good tenant is someone who understands that all the little jobs around the house are actually their responsibility and not that of the agent or landlord. A good tenant is also someone who stays for more than six months and leaves the property in the condition that they found it (fair wear and tear excepted, of course). Plus, a good tenant understands that the agent/landlord cannot spirit boiler parts out of the air!”

But, how do we find these ‘perfect’ tenants?

“Use an agent,” says Paul. “A reputable long-established Lettings Agent will have a lot of practise at weeding out the undesirables. A landlord who lets only once or twice a year will not have the wealth of experience at recognising the signs of a less desirable tenant. Plus, present your property in the best possible condition. Good properties attract the best tenants.”

Although Paul suggests that you look out for telltale indicators that someone wouldn’t make a good tenant, he advises that you never rely on first impressions or instinct alone. “ALWAYS credit check. ALWAYS contact the employer. And, ALWAYS contact the previous landlord or agent,” says Paul. “One of our best tenants first walked into the office dressed in baggy jeans, earrings and with a skateboard under his arm. One of our worst was a company director whose business failed!”

And, of course, once you’ve found a good tenant you’ll want to hold on to them. “Retain the best tenants by maintaining the property in the best possible condition. If you look after the property, so will the tenants,” advises Paul. “Also, when the tenant reports maintenance problems, sort them immediately. If they have a problem with paying the rent be understanding but be firm. Overall, make sure you have a good working relationship with them. Landlord/tenant relationships come down to one thing – communication. The tenant must be comfortable talking to the landlord and the landlord must ensure that the tenant understands what is expected of him.”

To find your nearest Belvoir office, visit their website at http://www.belvoirlettings.com/

• How to find a good tenant – at-a-glance checklist
  
  Get references from their previous landlords
  Credit checks
  Contact their employer
  Meet up with them in person
  Ask them about their lifestyle and occupation
  Make sure they’re happy to make their monthly payments by standing order
  Look for tenants who want long-term lets
  Take a deposit
  Buy savvy – the best tenants will be attracted to the best properties in the best areas
  Get a good management agency, such as Belvoir, to find the ‘perfect tenant’ for you
  

20 small ways to make big savings when letting property

Belvoir Lettings share their secrets on how clever landlords can save money on their property investments

Follow these simple tips to lower your costs and raise your property investment return – all are easy to implement and will encourage long-term positive cash-flow with little outlay…

1.) It’s all in the presentation
“Maximise presentation even if it means a small initial spend,” says Rick Flay, proprietor of Belvoir Sheffield. “The saving will come in the speed in which you rent out the property and will ensure fewer voids.”
Paul Cartwright, proprietor of Belvoir South Hants, agrees, “The property should be presented in the best possible condition. This will make it easier to let and thereby reduce the ‘void’ period between lets in which there is no rental income.”

2.) First impressions count
“Make the front photo used for marketing and the walk-up to the property attractive and inviting,” says proprietor of Belvoir Peterborough and Corby, Terry Lucking. “You only get ONE chance at the FIRST impression.”

3.) Think long-term
“I quite often use an old Scottish saying - ‘buy cheap, pay dear’ - when talking to new landlords,” says Mike Campbell, proprietor of Belvoir Falkirk. “This basically translates that if you put down cheap carpets you might think you are saving money but they won’t last as long so it’s a false economy. Equally this applies to furniture and fittings too.”
Keith Morrison, proprietor of Belvoir Aberdeen, agrees. “Don’t cut corners initially,” he says. “I’ve seen many landlords try to do jobs on the cheap or use cheap fixtures and fittings and it often doesn’t work out, sometimes even costing more in the long run.”

4.) Ensure you’re insured
“Invest in good Rent and Legal insurance,” advises Susie Geddes, office manager of Belvoir Corby. “Belvoir offer this at £99.75. The insurance will pay for all rent not paid in excess of one month for 12 months or up to £10,000, whichever is the lesser amount.
“Therefore it will pay for part payments as long as there is an excess of one month after the part payment has been paid. It also covers the cost of legal fees if you require to gain possession etc. It works out to be about £2 a week and could potentially save thousands.”

5.) Read the reports!
“Be certain that any maintenance reports are genuine,” says Terry Lucking of Belvoir Peterborough and Corby. “Ask your agent to give before and after photos and check the responsibility of the maintenance report – the damage may have been caused by the tenant (accidentally or negligently).
“Some agents don’t check the detail while others don’t understand legal responsibility - the result could be the landlord having to pay for something that should have been charged to the tenant.”

6.) Clever buying
Think carefully about the type of property you’re investing in and its location. “The worst property in the best area is always a better prospect than the best property in the worst area,”
says Mike Campbell, proprietor of Belvoir Falkirk.

7.) Picking your price
“If there are a number of similar properties on the market at a similar rent, consider
taking a reduced rent,” says Paul Cartwright of Belvoir South Hants. “While this may seem counter-intuitive, it will ensure that yours lets before the others and that you have the funds to pay the mortgage! This will certainly save money in the long term.”
Terry Lucking of Belvoir Peterborough and Corby agrees. “Always maximise annual rental income. Don’t leave a property empty for the sake of £50 difference in rent per calendar month if a potential tenant makes you an offer lower than what you were asking for – think about an annual profit instead.”
Remember, if a property is left empty, your return nothing for that month is nothing!

8.) Don’t delay – fix today
“Maintenance when required should be attended to as soon as possible,” says Paul Cartwright of Belvoir South Hants.
“This will impress the tenants and possibly extend their stay in the property. Also, if maintenance is left it will only become worse - and more expensive - to fix in the long run.”

9.) Speculate to accumulate
“Pay attention to the external environment and look out for risk factors that might put people off renting your property,” says Mike Campbell of Belvoir Falkirk. “Poor lighting and lack of defensible space can be off-putting for potential tenants. Re-visit at night, too, to make sure your property looks at its best at all times of day.
“None of these things will cost much but may have a good comeback, even avoiding the ‘void’ periods which can end up costing landlords in the long-run.”

10.) Good management matters
“Employ a good management agent, such as Belvoir, to manage the property for you,” advises proprietor of Belvoir Rochester, Karen Huane.


“A good letting agent will ensure that the landlord has professional working tenants and that their rent is paid on time and their property is looked after - this will save them a fortune long-term.”

11.) Brand power
Without clever marketing a property may be left empty. High visibility of its availability is a must. “Landlords should focus on agents who are highly visible on the web and various property portals,” says Terry Lucking of Belvoir Peterborough and Corby.

12.) Plan ahead for EPCs
“We are currently working with our Landlords to make them aware of Energy Performance Certificates,” says June Rakeshaw, proprietor of Belvoir Cheadle. “It will become a legal requirement to have an EPC in place from 1 October 2008 when the landlord is marketing the property. And, after the 1st October it is expected that there will be such a ‘rush’ for these that it could possibly increase the price.
“As the certificate is valid for 10 years we are suggesting to our landlords that they consider having the report carried out now to avoid the rush and possibly an increase in the cost later.”

13.) Seek advice before investing
“Always consult a letting agent prior to buying into an investment as they will know which areas to buy in and what to avoid,” says Wayne Mearns of Belvoir Southend-on-Sea. “We can also tell the investor what sort of property is in demand. Plus, I also inspect a property prior to my investors buying to spot anything that could be costly and to examine decorative needs.”

14.) Move with the times
“In this market, when there are a considerable number of similar properties being
offered for let, yours must stand out,” says Paul Cartwright of Belvoir South Hants. “If it is furnished ensure that it is furnished with modern furniture in good condition.
“If it is a student property consider providing ADSL and a wireless router as part of the let. This may cost more initially but will ensure the property is let with a minimum void and at a higher rent.”

15.) Grow your portfolio
“Draw down on equity to release cash for a deposit on another property,” suggests Terry Lucking of Belvoir Peterborough and Corby. “It’s a great time to buy on a flat market looking forward to future rises in capital values.”
A larger portfolio may also mean that you can negotiate discounts with builders, accountants and stockists of fixtures and fittings.

16.) Keep up inspections
“Regular inspections are a MUST,” warns Wayne Mearns, proprietor of Belvoir Southend-on-Sea. “This keeps the tenant aware of their obligations to look after the property and also gives the agent a chance to look for any maintenance issues that could be more costly later on down the line if not tackled early.”

17.) Rent appliances
Consider renting rather than buying expensive appliances, especially ‘white goods’. Craig Walker of Belvoir Camberley says, “Rather than buying washing machines that could potentially break down, you can rent them for about £10 per month. If, and when, they do break the rental company will do all the running around to fix or replace them, saving you the time and money.”

18.) Shop around for your mortgage
Don’t get tied in to a long-term mortgage rate. “Ask your letting agent for the details of a good independent mortgage advisor who will periodically review your mortgage for the best savings,” advises Wayne Mearns of Belvoir Southend-on-Sea.

19.) Get handy!
“Find yourself a good local handyman,” says Keith Morrison proprietor of Belvoir Aberdeen.
“He’ll be able to do all those simple jobs, such as tiling, painting, flooring, grouting and re-sealing baths etc, at the fraction of the price of a tradesman, such as a carpenter or joiner.”
He may even give you a discount if you use him exclusively, especially if you have more than one property.

20.) Estate agent versus lettings specialist
“While estate agents once dealt only with the buying and selling of properties, many have now diversified - including doing lettings as a sideline,” says Rick Flay, proprietor of Belvoir Sheffield.
“On paper what they offer is fairly similar to a lettings specialist. A tenant find service and full management can be all part of the service. But! The killer is in the detail… and potentially the quality of delivery.
“Before deciding whether to use an estate agent or lettings specialist to take on their property I would suggest that the landlord decides what they want from the relationship.
“If they want a quick turnaround on finding tenants for empty properties, legal protection, quality leases to protect their assets, and someone to talk to who has been trained and can actually add value, then surely it’s a no brainer.”
To find your nearest Belvoir office, visit their website at www.belvoirlettings.com

Would you go to the doctors for a filling?

It’s better to use a lettings specialist than an estate agent who suddenly starts to do lettings, says proprietor of Belvoir Sheffield Rick Flay…

Need buy-to-let insurance soon? Find out where professional landlords go..

You may have noticed that in recent months the boundaries between estate agents and lettings specialists have become ever so slightly blurred.

While estate agents once dealt only with the buying and selling of properties, many have now diversified - including doing lettings as a sideline.

Due to the slowdown in house sales and the bite of the credit crunch the estate agents traditional income stream of fees for selling houses and for arranging mortgages are drying up.

As a result they start to look at how to replace those income streams, and often see lettings as a way to keep the doors open.

It is certainly happening in Sheffield and I would imagine it is going on everywhere else too – we’ve seen this part of the cycle before so it’s no surprise!

On paper what they offer is fairly similar to a lettings specialist. A tenant find service and full management can be all part of the service. But! The killer is in the detail… and potentially the quality of delivery.

For landlords looking to market their properties there are a number of disadvantages.

Firstly, staffing. All of a sudden an estate agent will need to find new staff with different skills, then they’ll need to train them. Where does the expertise come from?

Secondly, the only similarity between a sales agency and a lettings agency is the product, say a house or a flat. The whole dynamics and speed are different. You need different software, contractors to do maintenance work, a new website, the list goes on…

Thirdly, there is a financial issue. The primary motivator is to replace lost income, which is at odds with setting up a new business. Recruitment, marketing, training, all cost money at a time when the purse strings are tight.

Fourth, marketing. How do you get the message out quickly to potential tenants? Driving traffic and building websites all add to the financial outlay.

Potentially, you could end up with untrained staff, lack of systems leading, say, to late rent payments, lack of proper documentation and a lack of knowledge of the law.

Surely, it’s a bit like a doctor suddenly deciding to offer dental services because he has no patients left!

And, it’s not just the landlords who could suffer - there are plenty of disadvantages for the tenant too. In the initial stages, there is likely to be a lack of properties to choose from, potentially a slow turnaround on credit and reference checks as the new process are learnt. And then, once they are in place, potentially there could be a slow turnaround to requests for repairs etc if insufficient tradesmen are in place.

As far as I can see I’m not sure there are any benefits of using their services rather than a lettings specialist. The sheer fact of being a specialist means that there is existing knowledge, expertise and experience. Plus, there are established systems in place, up-to-date documents and usually a recognized lettings brand.

At Belvoir, for example, we have a FREE legal helpline for all our landlords so we can give accurate and up-to-date advice on tricky issues - this offers great protection to landlords in an increasingly litigious market place.

Before deciding whether to use an estate agent or lettings specialist to take on their property I would suggest that the landlord decides what they want from the relationship.

If they want a quick turnaround on finding tenants for empty properties, legal protection, quality leases to protect their assets, and someone to talk to who has been trained and can actually add value, then surely it’s a no brainer.

As I said earlier, would you go the doctors for a filling…

Why should you use a lettings agent?

Why should you use a lettings agent?

The experts from Belvoir give their tips on why savvy landlords use a property management agency… and why it’s good for their tenants too!

With a rapidly growing lettings market and ever increasing legislation it’s easy to understand why more and more landlords are putting their properties in the hands of an experienced lettings agent.

For a small one-off fee a letting agent can help find you a tenant - or for a percentage of the monthly rental payment (usually between 10-17%), they can take on the full management of the property.

But do they provide a value-for-money service? Is it better to put your property in the hands of an agent than go it alone?

The answer is YES!

Here are the top five reasons why taking on an agent can benefit you as a landlord - and five reasons why it’s better for your tenant too…


[PANEL ONE] Minimising the risk for landlords:-

1. Tenant trouble?
An agent will have a large portfolio of prospective tenants and, if they haven’t already got the perfect match for you, they’ll soon be able to find one!
An agency is often the first place potential tenants look, plus most agents extensively advertise on their own websites and elsewhere. Once found, the agent will vet the tenant for you, performing credit checks and taking up references.
As well as finding you a suitable tenant they will also be able to help out if a good tenancy turns bad. An agent can help chase rent arrears and even help guide you through the eviction process if necessary.
2. Vital viewings
All properties will have dozens of viewings during their periods as rental investments. An agent can save you considerable time by arranging those viewings, as well as accompanying potential tenants during their visit.
3. Making a deposit
All rented properties need to have a full inventory of contents and furnishings, and an agent will take this on for you. A complete list of the contents and their conditions will be drawn up at the beginning of the tenancy for the tenant to sign and will be thoroughly checked at end of the tenancy too.
An agent will also be able to help with the legalities of claiming damages and help you deal with deposit retention if necessary.
“An agent can help a landlord go through the proper channels when claiming damages from the deposit,” says Kate Jackson, proprietor of Belvoir Bournemouth. “As from 1st April 2007 the deposit now has to be put into a government-run scheme and, as such, has to be managed through the scheme. It is now down to the landlord to prove why a tenant should not receive the full deposit back if indeed this is the case.
“By using an agent the landlord has access to a professional inventory with supporting photographs so the landlord’s property and possessions are protected. Also in the event of a dispute an agent can perform the administration required by the scheme to prove why a tenants’ deposit should be held.”
4. Insurance insight
Your agent will be able to supply you with good value insurance against regular rental claims, such as tenants who cause accidental or malicious damage and any unknown person who causes malicious damage. Plus, an accredited agent will have Professional Indemnity Insurance and Clients Account Protection Insurance.
“Belvoir’s home and content insurance is very good value for money,” says Terry Lucking, proprietor of Belvoir Peterborough. “And, what’s more, the excesses are unusually low for the rental industry.
“As a group our block insurance scheme covers close to £0.5 billion of residential properties so that makes us a very attractive customer to underwriters and enables Belvoir to negotiate a service level agreement that provides fast and comprehensive repairs carried out by professional tradesmen for its clients.”
If something does go wrong, or emergency repairs are needed, an agent will have many local contacts and will be able to arrange for repairs to be made on your behalf.
5. Navigating the legal maze
As well as organising a legally current lease agreement to be signed by the landlord and tenant, an agent will also be able to keep you up-to-date with current changes in legislation, including the forthcoming EPCs.
“The skill of being a professional property manager goes far beyond simply finding landlords a tenant,” says proprietor of Belvoir Sheffield, Rick Flay. “Keeping abreast of changing legislation is a major headache for private landlords - in the last few years alone we have seen changes to laws, such as HMOs, Tenancy deposits and Energy Performance Certificates to name only some of them. Belvoir offer a free legal helpline to all landlords and such are able to minimise the risks of landlords being fined.
“Another big issue is to ensure that the lease document being used is both legal and up-to-date - at Belvoir we constantly get updates so are able to offer our landlords the best protection.”

[PANEL TWO] Maximising the ease for tenants:-
1. Starting the search
A lettings agent will have many properties available so the potential tenant will have plenty to choose from without having to scour the property ads in the local press or search the internet. The agent will also be able to point the tenant towards the right property for their needs.
“An established agency will have a selection of properties to offer,” says proprietor of Belvoir South Hampshire, Paul Cartwright. “There are many variables looked for by prospective tenants including, but not limited to, location, age of property, condition and running expenses. A professional agent will take all these factors into account before showing a tenant a property – from their point of view it is a direct business cost to show tenants around unsuitable properties.
“For tenants, viewing unsuitable properties is a frustrating waste of their time. A private landlord will show a tenant their property and attempt to persuade them to take it – often making promises they will not ultimately deliver.”
2. Quality quarters
Properties advertised through a lettings agent have high basic minimum standards with a guaranteed programme of maintenance, so a tenant is likely to find a good quality home.
Plus, an agent will always have an expert on hand should the tenant develop a problem with the property or the landlord later in their tenancy too. If renting from a private landlord, the tenant has no third party to turn to should they have a substantial breakdown in relations.
“From a tenant’s perspective it is better to live in a property that is managed by a lettings agent,” says proprietor of Belvoir Sheffield, Rick Flay. “They can always be assured of having any issues dealt with quickly and in a professional service like manner.”
3. Money matters
An agent fully understands the local market and will not be able to overcharge on the going rate for properties in their area.
Private landlords can make up their own prices and thus, while you may sometimes get a bargain, you could just as easily end up paying more than you bargained for!
4. Covering that contract
An agent will be able to sort out the contract, make sure the landlord has fair expectations of you as a tenant and talk a novice tenant through what those expectations may be. They’ll be able to answer any questions tenants may have and alleviate any fears too.
A lettings agent will also take care of all the legal elements. “All properties on the books of a professional agency will comply with current HHSRS (safety) laws and, if it’s a House in Multiple Occupation (HMO), it will be correctly licensed,” says Paul Cartwright of Belvoir South Hampshire. “They will also legally deal with the deposit by holding it in a Government approved scheme; as part of this they should supply a comprehensive inventory of the property and have a full understanding of what can and what cannot be legally charged to a tenant following move out at the end of the tenancy.”
5. Emergency services
With their list of local tradesmen, and some even with their own maintenance team, a lettings agent can give tenants the confidence that repairs will be made quickly if an emergency should happen. They sometimes have a 24-hour emergency number too.
“At Belvoir we have contact numbers in place with local contractors in case an emergency should arise,” says Susie Geddes, office manager of Belvoir Corby. “Repairs can then be made quickly and easily for the tenant and with minimal disruption to the landlord.”
It’s impossible for private landlords to be on hand 365-days a year – for example, what happens if a tenant’s boiler blows up while their landlord’s on holiday? A lettings agent is always on hand to help.

• For more information on how renting could work for you or your family, visit the Belvoir website at http://www.belvoirlettings.com/ Please feel free to get in touch. Contact Belvoir central office on 0845 331 2741.

Impending crunch and the benefits of renting

Proprietor of Belvoir Peterborough, Terry Lucking, takes a look at the impending credit crunch and the benefits of renting…

Meet Terry:
Formerly a managing director of a food processing business. My franchise started June 1999 with me alone as a sole trader working in a home office. Mid 2000 I moved to a small serviced office and employed my first staff member. We outgrew these offices and moved to larger offices in 2003. Between 2003 and 2007 my franchise changed significantly. As confidence and profits grew we decided to move to a new location on a long-term lease. Now I run one of Peterborough’s leading letting agents; I have the most visible location of any letting agent in Peterborough. My role now is team developer/manager and business planner.

Terry says:
Other than folk who have been hibernating for the last few months I think it is fair to say we all know property sales have slowed. At least the exciting end to the European championship football having three British clubs in two finals gives the newspapers something else to deal with rather than continually analysing the housing market and talking us into doom and gloom.

The current drop in confidence in our housing market and the changes in the mortgage market is opening up great deals for prospective buyers. Vendors (those selling) have had to drop their asking price to get an offer. So vendors who have to sell have to take offers against the asking price. The next difficulty is finding a suitable mortgage and a getting valuation for what price was agreed. Many current valuations are not reaching the agreed sale price, which means the buyer has to try to negotiate a lower price.

Given we currently have lower house prices you would expect it would be easier for FIRST TIME BUYERS to buy. This is what the headline writers have been saying for months.

Well it isn’t working like that. A major reduction in the number of mortgages on offer combined with tougher loan qualifying tests and larger deposits has actually made it more difficult for FTB’s to buy!

Something to learn from this is that lower house prices doesn’t automatically mean it will be good for all FTB’s.

Why do we need to own a house?

Why do we need to own the house we live in?

Many people will have different answers. If you decide owning a house is important DO YOU need to own the one you live in to benefit from the property ladder? In my opinion the answer is NO.

You can buy an investment property in another area and let it to renters. You could buy more investment properties in the future as the value of the first one you purchased increases. You could use these investment properties as part of your pension planning.

Many people think their own house will be part of their pension. If your strategy is to sell this house what are you going to live in??

Buying a house in another area may actually mean that FTB’s can afford to buy and benefit from the property ladder………just not live in it themselves.

A rethink in how you can use your money, what you own and what you live in may be useful for many people and families.

Renting offers many benefits:
• Predictability of annual costs; more accurate budgeting
• If your job takes you to a new location you can move quickly
• If your family numbers grow or reduce you can up or down size quickly
• Move quickly to reduce your outgoings
• A wide choice of houses and apartments in various sizes in most locations
• Better value for money

Renters are protected now more than ever before. For information on tenants rights and responsibilities have a look at our central government website:

Tenants should select their landlords and agents carefully. Don’t just choose the property and forget to ask the landlord or agent some key questions. Be confident and ask searching questions. If the landlord or agent is unable to answer, perhaps you should look for a different property.

The choice of properties available for renters is wide and landlords have to invest to make their properties attractive to prospective tenants.

Length and security of tenure can be negotiated with landlords or their agents. Spend time planning and discussing what you want. You will find most landlords will be cooperative and welcome polite discerning customer (tenants).

So renting can open up new opportunities enabling faster and more flexible solutions when dealing with today’s fast changing demands and lifestyles. It does not mean you are not on the property ladder or able to benefit from future capital growth the UK housing market may have to offer.

• For more information on how renting could work for you or your family, visit the Belvoir website at www.belvoirlettings.com Please feel free to get in touch. Contact Belvoir central office on 0845 331 2741.