Posts Tagged ‘tenants’

Staging a property is a technique that is used more and more by people selling a home, but it’s also a useful method for property investors to use when renting a property too. It works well for both properties that you’re trying to re-let, as well as properties that you’ve just purchased and are renting for the first time. Here are some reasons why staging a property can significantly help rental viewings.

The basic idea behind staging is to present a property in the best light possible. Careful thought and care is taken into getting the property ready for rental viewings, which may involve a degree of re-decoration, cleaning and tidying up. Although it can take time, money and effort, if you’re keen to achieve the best possible rental price for a property, then staging it can be very worthwhile.

If a property looks good, appeals to tenants and has everything they’d want in a property and more, then there’s more chance that you will be able to achieve a good rental fee than if you don’t bother with staging at all.

In addition, staging a property can help widen the appeal of a property too. If it boasts good facilities and good quality décor, then you may be able to attract a wider range of tenants – and those with more disposable cash – than you could otherwise have done.

In another post, we’ll look at how you can go about staging a property for rental viewings.

There’s good news for landlords in the UK, as recently released figures show that the number of tenants seeking rental property has risen again.

The data was collected by Countryside Residential Lettings, who have been gathering statistics since 2003. In the last three months until the end of June 2010, they found that over 50,000 people were looking for rental accommodation – the highest they’ve ever recorded. The biggest spike was seen during June, when over 18,000 new tenants registered for rental property.

These figures are noticeably higher – 16% up – than the first three months of the year and suggest that more people are beginning to look for rental properties.

Some of the data they gathered will be of interest to property investors and landlords, as it gives an indication of which areas people seemed to be interested in. For example, the most sought-after properties were two bedroom homes in south west England, where an average of 23.1 people were keen to rent each property.

On average there are now 5.5 tenants competing for every property, an increase from 4.9 tenants per property during the first quarter of 2010. With demand being higher, the sooner a property is available, the better for tenants, with properties being let within an average of two weeks.

In line with this increased demand for property, a small increase in rental prices has also been recorded, particularly on houses. For example, the average cost of renting a four bedroom family home has risen by 4% to £1,090.

Demand for rental property is likely to continue for the next few months at least, especially as the annual rush to find and secure student accommodation in university towns and cities will soon be upon us.

If you’re advertising your rental property, whether in addition to using a letting agent or if you’re promoting and advertising it yourself, then it’s essential to know what to put in your advert. This is the first thing that prospective tenants will see and, if it doesn’t give the right information or present a good impression, then they may disregard it instantly. Here’s a useful guide to the key points you need to include in your rental advert.

Property Type – Provide clear information about the type of property you have available (house/flat/bungalow/new build etc).

Location – The location of a property is a crucial factor for many tenants, so make it clear in which part of a town or city the property is located in. Include an address if you wish, or at least a postcode, as tenants may like to check out the area on Google maps before they even go and look at a rental property.

Size of Property – Describe the size of the property, giving information about how many bedrooms it has (and state details if one or more are doubles or singles), bathrooms, reception rooms, kitchen and dining rooms and any other interesting details, such as the existence of a conservatory or study.

Parking – Many tenants will need to know whether there is any parking available, so provide easy-to-spot details. Focus on parking that is available outside the property, on a drive or in a designated parking spot. If the property has a garage, then mention that too.

Garden or Balcony – The existence of a garden or balcony isn’t always important to every tenant, but it can help sell a property to some groups of people. So if you have a garden, include details of the size and whether it’s enclosed (this will appeal to families), or if the apartment has a balcony with room to sit out on.

Rent – This is an important detail, so don’t forget to include details of how much the rent is per calendar month or per week.

Other Selling Points – If your property has any other strong selling points, such as being within popular school catchment areas, having major train stations nearby, being close to a motorway, close proximity to major firms or hospitals, then be sure to include details in your ad.

Contact Details – At the end of the advert, and in a prominent place or in bold print, include contact details, such as a phone number or email address, so anyone can easily get in contact with you or the letting agent.

If writing isn’t your strong point, then find someone to write up the details for you or to proofread your advert before you send it out; poorly written ads, or ads with lots of mistakes, can give a poor impression to potential tenants. 

In addition to all this information, it’s helpful to include one or two high quality photographs of your property. One should be a good clear exterior shot, plus one or more interior images that show well presented rooms in a good light.

There are a lot of issues to think about when you’re preparing to let your property and it’s easy to overlook the issue of TV licenses in favour of more important considerations. But you can’t guarantee that your tenants will put TV licenses at their top of their lists either, so be on the ball and know where you stand.

If you’re letting out an unfurnished property to one single tenant, a couple or a family, then one TV license is required for the property.  If several tenants are living in the property under separate tenancy agreements, but there is only one TV in a communal area, then technically only one TV license is required. However, if any of the tenants have their own TVs in their rooms, or watch TV on the Internet, then by law each of them should have their own TV licenses. In cases where there are several tenants, but they have a joint tenancy, then only one TV license is required for the entire property.

For fully furnished properties, or if you’re including a television in the rental, you need to be extra clear about who needs to purchase a TV license. If you provide the TV, both you and your tenants can be held responsible if a license is not purchased. When you’re putting together a tenancy agreement you need to specifiy exactly whose responsibility it is to purchase the TV license.

To make doubly sure that a license is purchased for a property where you supply a TV, you could consider buying it yourself and adding the cost of it into the rental fee. That way you can be sure your property will be fully covered and not have any unwanted TV licensing issues in the future.

Anyone watching TV or using any other devices to watch or record television programmes without owning a TV license could face prosecution, a court appearance and a fine of up to £1,000.

Related Posts

Other posts in the Preparing to Let Your Property series include:

Investment Properties

Landlord Insurance

Getting an Energy Performance Certificate

Fire Safety

Electrical Safety

If you’ve been letting property for a while, then the chances are that you may have come across a situation where a tenant wants to paint or decorate a room. But would you let them loose with a paintbrush in your property? We explore the pros and cons of letting tenants decorate.

The pros of letting tenants decorate

If you’ve been letting the property for a while, and it’s a long time since it was decorated, then it may be worth considering it if you’ve got a tenant who wants to give it a go. Even better if they have decorating experience, or simply want to put a new coat of paint in one room.

However, be sure to make it clear what they’re allowed to do and not do, preferably in writing. This includes which rooms they can touch and what they’re allowed to do, in terms of painting or wallpapering. You may even want to vet the colours or ideas, just in case they’ve very outlandish.

The cons of letting tenants decorate

Mention the decorating issue to landlords and some will always have horror stories to share. Although it may seem like a tempting offer to have someone else do the hard work for you, do you really want to put your property in their hands?

Horror stories of decorating gone wrong involve garish colours, badly hung wallpaper, bad painting, paint in areas that shouldn’t have been painted and half done jobs that were abandoned.

Realistically, you can never be 100% certain that tenants will do a decorating job properly, so if you’ve got any doubts about their ability or commitment, it’s best to do it yourself, or pay an expert to come in and do it. It’s the only way to avoid unwanted decorating nightmares.

It helps to have this covered in your paperwork and contract, so they know they can’t just whip out a tin of paint and start decorating when they feel like it.

If there’s no major need to decorate just yet, then a good time is always between rentals – as one tenant moves out, and before another arrives.

When you’re getting a property ready for letting, it’s easy to concentrate on making the inside presentable. But don’t forget to tackle the outside too, whether it’s a house or a flat, as the area leading up to your property is equally important and can make or break first impressions.

If you’re getting your property ready for its first ever viewings, or will soon be looking for new tenants, here are 10 top tips for maximising the kerb appeal of your property.

1. Clear the path

If there’s a path, driveway or steps leading up to the front of your property, then it’s good to make sure that it’s clear and clutter free when new tenants arrive for viewings. Sweeping up any old leaves, picking up litter or cutting back overhanging hedges will all improve your kerb appeal.

2. Paint the front door

If the front door is looking a bit drab and faded, then why not give it a quick lick of paint? It doesn’t take long and can significantly transform the look of your property. If you’re feeling brave, choose a bright colour in a gloss finish to really make your door stand out.

3. Ensure the windows are clean and presentable

People walking up to your property will notice the windows on their approach, so make sure they’re clean, and not sporting dirty marks.

It’s also worth checking the state of the window frames. If they’re rotten, think about whether it’s time to replace them, or if there’s paint peeling off them, give them a fresh coat. First impressions count and if the property looks cared for, it could attract more interest.

4. Ensure the number or house name are easy to spot

There’s nothing worse than a tenant not being able to find your property, or being unsure which one it is. So ensure the number or name is clearly displayed and easy to spot – as well as making a good first impression, it will make life easier for them once they’ve moved in too.

5. Get planting

A well-kept, smart looking garden is great for kerb appeal, but even if you don’t have much space, you can still pep up the entrance with the help of a few pots of plants. Spring flowers, like daffodils or crocuses, add a lovely splash of colour, or in the summer you could have a hanging basket.

6. Mow the lawn

If the property has a lawn out front, however large or small, then ensure that you’ve mown it, swept up bits of grass and trimmed the edges. Treat any patches of moss in the spring, and keep the lawn watered during hot summer spells. A well kept lawn will look instantly better than an unruly one.

7. Hide the bins

When you have limited space available outside, wheelie bins often have to end up at the front of your property. Sadly, although useful for rubbish needs, they’re not the most attractive thing to see as you walk up to a property.

Where possible, do what you can to hide the bins to minimise their impact – a simple piece of trellis or fencing in front of them can work well, for example.

8. Make sure the entrance is well lit

Most potential renters probably won’t be visiting your property at night, but people do often go back at different times of the day to check out the area. Making sure the entrance is well lit can make a difference and reassure tenants that they won’t end up scrabbling around in the dark to let themselves in at night.

9. Check the doorbell works

Whether your front door has a doorbell or knocker, make sure it’s easy to spot and works. There’s nothing worse than a tenant arriving at the door, but being unable to attract your attention.

10. Ensure letterboxes are clearly marked

If you’re letting a flat, then make sure individual letterboxes are available and clearly marked, as tenants will want to be assured that they’ll be able to get their post efficiently.

When you’re renting out a property, one of the tasks you need to do before you get a tenant is to create an inventory of everything that is in the property.

Not only does this help give the tenants an idea as to what is included in their rental, and what isn’t, but it’s also useful to have at the end of a tenancy, so you can identify any missing items, items that have changed, any damage caused to items or any extra items left behind that don’t belong there.

Creating Your Inventory

It may seem a bit tedious having to create an inventory, but it’s a worthwhile task, especially if any disputes occur further down the line.

Go through the property room by room and make a note of everything that is included in the rental for your tenants – curtains, kitchen equipment, furniture etc.

Make a detailed list of all the items, including:

* Details of the manufacturer, model and serial numbers.
* A good description of the item.
* Details of any bumps, scraps or defects the item currently has.

Many landlords are now choosing to photograph the inventory items too, as photos can be used at a later date if any issues arise over what was included or what condition it was in.

If you are going to photograph items, it’s a good idea to date printed photos. If you have any items of particular value, or simply want to be extra careful, then you could even sign and date them and get them counter-signed by the tenant at the start of the tenancy.

In addition to photo, you could also video the property, highlighting which rooms certain items are in.

A copy of the completed inventory should be given to your tenant, as well as the original being kept by you or your letting agent. Hopefully problems won’t occur, but if there are any minor – or major – quibbles, then the inventory can be highly valuable to have.

First impressions are important, especially when you’re putting your property on the lettings market and want to attract tenants. Research suggests that potential tenants make their mind up about a property within 30 seconds of entering the property. To ensure your property makes a great first impression, here are 10 top tips on preparing your property for viewing.

1. Make sure the area around the front door, or entrance to the property, is clean and tidy, as this is what prospective tenants will see first.

2. Keep any garden area, hedges, shrubs or bushes well maintained. Having the grass cut and the hedges trimmed makes a good first impression.

3. If you’re redecorating your property, opt for neutral colours. Neutral colours are preferable for property lets, as it keeps things simple and streamlined. If tenants want more colour, it can be added easily by using furniture and furnishings.

4. If you’re furnishing or partly furnishing a property, then choose good quality, but affordable, items that will last well, but not be a major disaster if you have to replace them.

5. Choose flooring with ease of cleaning and durability in mind. Laminate flooring, for example, looks good and is easy to keep clean.

6. The kitchen is regarded as an important room by many tenants and you can never have enough storage, so make sure there are plenty of cupboards.

7. Give careful consideration to what appliances you put in the kitchen. Even if you’re letting it unfurnished, a cooker is a good staple to have.

8. Good lighting is important, especially when tenants are viewing. Pop in some well placed lamps if it’s a dark day.

9. Ensure the property is clean and tidy. When you’re letting it again after a tenancy has ended, don’t forget to get it thoroughly cleaned first.

10. If the property has a garage or shed, make sure these spaces are clear and free from clutter. But if you want to encourage your tenants to cut the lawns, then do leave a lawnmower to hand!

There are many benefits involved in purchasing tenanted property for investment purposes. If you’re debating this investment possibility, then here are five good reasons why you should consider buying tenanted property.  

1. You don’t have to worry about finding tenants as they come with the property sale.

 This is a major factor in purchasing tenanted properties and one of the big bonuses that buyers gain. As tenants are already firmly in place, you won’t have any void periods where the property is empty. From an investment point of view, this means you get guaranteed rent from day one and make money straight away.

2. You’ll gain useful information about the track-record of the tenanted property.

For investors, it’s very useful to be able to get a track record of the buy-to-let property. For example, you’ll be given information about how the current tenants look after the property, what their rent history is (any changes in how much rent they’ve paid over the years or if they’ve ever stalled on payments), their credit and employment details, as well as the property’s maintenance records.

 3. You don’t have to worry about furnishing or decorating a property.

Compared to purchasing an empty property, if you’re buying a tenanted property, you’re unlikely to need to initially worry about furnishing it or decorating it, which can save a lot of time and money.

 Of course, over time wear and tear may occur and you might want to do some decorating, but it’s not likely to be as high on your agenda as if you buy a non-tenanted property. 

 4. The price for a tenanted property may be lower than the usual market value.

 Another major benefit for property investors is that the price of tenanted properties is often below the market value. This means that you get a much better deal for an investment property, plus you get the benefit of ready made tenants too.

 5. It can be a quick and easy way of making a property investment.

 If you use an experienced specialist company, such as HBF Investments., purchasing a tenanted property can be a quick and easy way of making your property investment. Experts will help guide you through every stage of making your purchase and the deal can be clinched quickly and painlessly.

If you’re keen to get on with the process of being a landlord, and of earning money from your investment, then buying tenanted property is a great option to consider.

Source:  David Coughlin – HBF Investments