Does it all add up? Asks Belvoir Lettings Camden

Does it add up?

Do your sums before letting your property, with this handy guide from the experts at Belvoir. There are many costs to think about before you decide to become an investment landlord – both obvious and hidden. As every investor’s aim should be to create a realistic (yet profitable) yield, you need to think carefully about how much the following are likely to add up to. Always do your sums before signing on the dotted line...

Property price
The biggest outlay you’re likely to have is the initial price of buying the property itself. Make sure you purchase the property for the best possible price and understand all the additional costs that you’re likely to incur, such as solicitor’s fees, stamp duty and mortgage arrangement fees. Always seek expert advice if necessary – a property management agent should be able to answer any questions you may have. “We’re always happy to advise investment landlords,” says proprietor of Belvoir Kettering Harpreet Garcha.

Advertising your property
If you’re letting without an agent then you’ll need to advertise the property yourself. Costs will vary depending on the advertising methods you use and the amount of coverage you’re looking for. Some landlords like to showcase their properties in the local newspaper, while others embrace the web and advertise across the internetbased property portals. If you give your property to a property management agent then they will market and advertise the property on your behalf – this will usually be on their own websites, on the major property portals, in the local press and in their shop window.
“Ensure that your agent is advertising your property on the main property portals and always check that you are happy with the pictures,” says Lee Shuell, proprietor of Belvoir Oldham. “It is helpful if your agent has a shop front to advertise your property too.” Proprietor of Belvoir Birmingham Central Major Mahil agrees and adds, “As well as the major property portals our properties are also advertised on Belvoir’s own website, which has, on average, a quarter of a million visitors a month. We always ensure we include floor plans, at least 10 pictures of each property (external and internal) together with the spec and as many important details as possible such as the number of rooms, sizes, features, fixtures and fittings.”

On-going maintenance
Even the newest of properties will need on-going maintenance throughout your time as a landlord. Ensure that you factor a slush fund into your initial calculations to allow for funding of repairs and updates as necessary. “Keeping costs down in your buy-to-let is a long-term job,” says Harpreet. “The more regularly you are able to keep on top of small issues, the less you will need to spend on an overhaul after each tenancy.”

Mortgage payments
“It’s essential you do your homework and ensure that there is a rental demand for the type of property you are looking to buy, and ensure that the achievable rent covers your mortgage,” says Lee Shuell, proprietor of Belvoir Oldham. Many landlords choose variable rate, interest only mortgages as they can often be among the cheaper mortgage solutions – but remember, interest rates can go up as well as down, so make sure you plan for all potential scenarios.

Added extras for your tenants
With the competition between rental properties becoming tougher you may want to include some added extras to encourage tenants to choose yours – these will usually carry a cost and should be added into your business plan from the outset. "In order to attract tenants to properties, especially HMO (Houses of Multiple Occupation), adding value is key,” says Craig Walker, proprietor of Belvoir Camberley. “Some landlords include weekly or bi-monthly cleaners for the communal areas and fast, wireless broadband in the price, as well as all-inclusive utility and council tax bills. Some add furniture too – this all helps to attract tenants by keeping the hassle-factor for them down to a minimum. For the larger properties landlords may also choose to include a gardener."

Insurance
As a landlord, having specialist insurance is vital. The price of policies vary depending on who you buy your insurance from and what the policy covers. Shop around to get the best deal but make sure it covers all the essentials, such as malicious or accidental damage by your tenant or their visitors. “Ensure that your property is correctly insured,” says Lee Shuell. “Landlord’s building insurance can be arranged either via a lettings agent or by your insurance broker. An internet search will provide landlords with plenty of options if they wish to go direct. “Also, a product that covers rent arrears and respective legal costs is available – again, depending on the quality of the tenant this is advisable. “With this in mind it is important to have at least two months mortgage payments available in your account to cover any mortgage payments that need to be made due to late or missed rent.”
Management company charges (if leasehold)
If you buy a leasehold property you are likely to have to pay annual management charges, as management companies usually look after the communal areas and the building itself. These costs can differ considerably from development to development so make sure you`re aware of the full costings before you commit. Ask the management company for a breakdown of what is covered by these charges (and what isn`t) so you know exactly what additional costs you will have throughout the year too.

Between tenants
Think carefully about what you’ll have to spend when your property is between tenants. Indeed, you may have a short (or long) void period where you will have to cover the cost of the mortgage yourself. Additionally, you may also need to spend money on getting the property ready for the next tenant, including minor decoration and cleaning – and you may wish to get professional cleaners to do this for you. “I think one of the most important issues for tenants is the cleanliness and working order of the items in the property,” says Luke Mason, proprietor of Belvoir Hitchin. “If the landlord makes sure the house is clean and tidy throughout before occupation it will start the tenancy off to a good start. This sounds like common sense but it’s often missed by landlords.”

Agency fees
If you get a property management agency to find a tenant, or look after your property for you, then you will be subject to a fee which will also need to be factored into your initial calculations. Property management services range from tenant-find only to full property management and prices will reflect the level of service you require. Ask your local lettings agency for their fee structures before you invest in the property.
To find your nearest Belvoir office, visit their website at www.belvoirlettings.com/camden

Costs to consider...
• Property price
• Advertising and marketing
• Renovation costs
• On-going maintenance
• Mortgage payments
• Added extras for your tenants
• Specialist insurances
• Periods of void
• Management company charges (if leasehold)
• Professional cleaning between tenants
• Agency fees

For anymore information do not hesitate to contact Belvoir Lettings Camden on 02071 997733
Website: www.belvoirlettings.com/camden
Email: camden@belvoirlettings.com

Address:
1a Chalk Farm Parade
Adelaide Road
Chalk Farm
London
NW3 2BN

Belvoir Lettings Camden ask John Swinfield to explore the planning reforms.

Planning Reforms? Where have they gone?

By Award winning Author, Journalist and Broadcaster John Swinfield

A strange quietness has descended on Government plans for putting a rocket under local planning authorities. A week or two ago there was much excitement when it seemed serious consideration was being given to speeding up development applications and liberalising swathes of outdated and arcane planning law.

One encouraging idea was to allow empty or derelict retail premises to be turned into residential accommodation. It seemed a great way to revitalise clapped-out city centres.

Towns which are to thrive need people as well as shops. There’s nothing as depressing as boarded up shops in moribund shopping areas in towns where councils have encouraged out of town retail parks and permitted the unfettered march of the multiples.

It was also said councils which stuck to bizarre political diktats – such as those who say they want family houses rather than flats because they have suddenly seen the light and now want families not singletons – were going to be giving a dressing down.

Councils tut-tutted while watching the gradual rundown of their boroughs. They’ve left it too late to suddenly become ‘family friendly.’ Families with children were forced to flee for greenery and open spaces long ago.

Such policies have hampered the creation of small flats which could be sold to youngsters seeking a foothold on the property ladder (the government must also whip lenders into line and make mortgages available which are not dependent on massive deposits and all the other stifling demands).

Old shops and impractical rambling houses could be converted into bed-sits and small flats to be sold at sensible prices, giving first-timers a home and the developer a return. Councils tend to forget the importance of the last bit: a developer who risks his capital deserves an ordinary reward. Why take the risk if there’s not even a small margin?

And if such modest flats were not to be sold they could be let. Everything possible should be done to encourage the buy-to-let market. There is a desperate need for small one-bedroom flats to be sold or let out at sensible rates, especially in cities such as London. If the property market is to be resuscitated, and it is central to the government’s plans that it should be, then private landlords, developers and builders must be given every encouragement and incentive. Planning departments should be forced to toe the line, and the hidden political agendas which are adhered to by so many councils, outlawed.

So what’s happened to the reforms? Perhaps it’s Libya? Or Gaddafi? Or another of the thousand crises engulfing the government. Let’s hope so. And that when things have quietened down that the Cabinet will once again set its beady eye on the desperately outmoded planning laws and the Town Hall Johnnies who administer them.

1a Chalk Farm Parade

Adelaide Road

Camden

London

NW3 2BN

Tel: 02071 997733

camden@belvoirlettings.com

www.belvoirlettings.com/camden

Copyright. Belvoir Lettings Camden 2011

Gadaffi and The Deathwatch Beetle

By award winning Journalist, Broadcaster and Author John Swinfield 

 

Here’s a tale of our times. Rich pair in a big house in a choice part of London. Life’s a gas. Nothing to worry about. But they’re a greedy pair – or maybe just human – and they’re always wanting more. Other peoples’ lives always seem that little bit greener. We’ve all been there. You know how it is?  Property prices are rocketing. This was a year or two before the word banker became synonymous with Gadaffi.

A house down the street comes up for sale. They buy it thinking they’re going to make a killing. They’ll tart it up and flog it for a big profit. Then comes The Crash. They are halfway through their refurbishment. They decide to finish it – they haven’t a Hell of a lot of choice – and rent it out rather than try to flog it.

A certain estate agent with a dodgy reputation advised them to go for the top end of the letting market. So the tart up costs them a bomb, several bombs. Then they had to furnish it. Heal’s, well naturally. If you’re going for the top end of the letting market, you have to buy the best. Especially in oh so frightfully chic London.

With the cost of buying the property– through re-financing their original home – and the cost of renovating and furnishing it to the highest possible standard – they had to let it out for a colossal amount of money to cover their outgoings.

But a lot of the big hitters and high rollers who could once have afforded to pay the stupendous rent they asked had lost their jobs.

So the hapless pair had to lower their sights and reduce the amount they wanted in rent. They found somebody but the amount they were paid hardly covered their outgoings. But fair enough, they were scraping by. That is, until they discovered death watch beetle in the roof. A serious case of OMG!

 The surveyor should have picked it up. But he didn’t. And then their tenant does a midnight flit. He had lost his job and disappeared back to America. He flew off owing them rent having broken his lease agreement. There’s little point in pursuing him. Or the surveyor.  It would cost them more in chasing the American across the Pond and the surveyor back to his swanky West End offices, and bringing squadrons of glint-eyed lawyers into the equation, than they had lost in unpaid rent.

So, once again, the big expensive house is empty, now roofless while cripplingly expensive repairs are being carried out, and they’re searching for a new tenant. A few years ago, before The Crash, they’d have cut their losses and flogged the whole caboodle for a handsome profit. And to Hell with the troublesome business of being a landlord. But that option’s not really open anymore.

Moral of the story: if you’ve a good thing going, recognise it, count your blessings and be content. Where three or four years ago they were the happiest couple on earth they’re now bogged down with money worries.

They’re all part of the ‘Accidental Landlord’ syndrome. Theirs is just one variation on what sometimes – but not always – can be an unhappy theme. There’ll be more AL stories over the weeks. 

Belvoir Camden operates in the following areas: St Johns Wood, Hampstead, West Hampstead,
Belsize Park, Chalk Farm, Camden, Kentish Town, Maida Vale, Marylebone and are always
looking for new landlords. Belvoir is the property management specialist in the area.

Belvoir Camden: 02071 997733

www.belvoirlettings.com/camden

camden@belvoirlettings.com

New Belvoir Camden iPhone App!

New Belvoir Camden iPhone App!

Why not try out our lovely new shiny iPhone application, never walk past another property without finding your perfect home.

Take a look at the screen shots below:

Search Radius:

Returned search:

Go on sign up today this new intuative app! Oh and it is FREE!


Belvoir Camden operates in the following areas: St Johns Wood, Hampstead, West Hampstead,
Belsize Park, Chalk Farm, Camden, Kentish Town, Maida Vale, Marylebone and are always
looking for new landlords. Belvoir is the property management specialist in the area.


02071 997733

1a Chalk Farm Parade
Adelaide Road
Camden
NW3 2BN

Private renting is to costly say Belvoir Camden

Private rental too much for many families?
Written by Dominic Swinfield of Belvoir Camden.

SOARING rents in the private market have become too exorbitant for low-income workers across the capital.

To rent a typical two bedroom home in London, a family of two living on the minimum wage a year would be paying between 35 per cent and 60 per cent of their income!

Anyone spending more than 30 per cent of their household income on rent is considered to be struggling with ''housing stress'. A working family with two children, living on the minimum wage in London, could spend 40 per cent of their income renting a three-bedroom home. Average rents have soared in London over the last year because of lack of available stock says Dominic Swinfield of Belvoir Lettings Camden.

It's even worse for those on government benefits. Councils are just about to make large cuts in the hand outs council tenants are offered.The average rent of a room in a two-bedroom flat in London is now £350 a week, which would consume nearly fifty per cent of a couple earnings £40,000 per year.

The property rental market in London is also being fueled by the lack of avalaible mortgages. The average person in the U Know needs at least 20% deposit to purchase a proeprty but 25%-50% will gain a far better rates or even a fixed rate mortgage, which may help ride out the uncertain times that are ahead.

Belvoir Camden operates in the following areas: St Johns Wood, Hampstead, West Hampstead, Belsize Park, Chalk Farm, Camden, Kentish Town, Maida Vale, Marylebone and are always looking for new landlords. Belvoir is the property management specialist in the area.

Belvoir Camden
1a Chalk Farm Parade
Adelaide Road
NW3 2BN
02071 997733
www.belvoirlettings.com/camden
camden@belvoirlettings.com