Monday, 29 May 2023

BUY-TO-LET DEAL OF THE WEEK: 2 bed house in Tangmere, £275,000, 4.8% yield


Summary
2 bed house in Tangmere
Listed for sale on 08/05/23 @ £290,000
Now = £275,000
Rent = £1,100pcm
Yield = 4.8%

The property is on the market with Cubitt & West and full details can be found on Rightmove via the following link: www.rightmove.co.uk/properties/134538818








Thursday, 25 May 2023

Five tips to avoid ‘nightmare tenants’


Most tenants simply want to live in peace in a home that they can treat as their own, whilst happily paying the going rate to do so. A very small percentage, however, will set out to either mistreat the property or purposely not pay the rent. Here are five tips to avoid these so-called ‘nightmare tenants’:

1. Offer tenants a nice home
If you offer a neglected property in poor condition, you are likely to attract less interest and will have to settle for tenants who are perhaps unable to secure a ‘nicer’ home. Meanwhile, if the property is well-presented, it will attract a wider pool of tenants to choose from and they will most likely take pride in keeping it in good condition. 

This applies to ongoing maintenance issues too; afterall, if you don’t care about the property, why should your tenants? Furthermore, tenants will feel aggrieved paying full rent for a property that isn’t fully-functional or being maintained as it should be. 

2. Match the property to the right tenants
It’s hard to say no sometimes, but a property needs to suit its occupants. For example, most blocks of flats won’t accept pets as it is part of the head lease. This isn’t unreasonable if you think about trying to live with a dog in a small second-floor flat with no access to outside space and with neighbours on all sides of you. It might also be unwise to allow two adults and three children to rent a two-bedroom flat; they simply need more space and amenities than that to live comfortably and to be able to keep the property in good order.


3. Reference thoroughly
This is probably the most critical step in ensuring you avoid ‘nightmare tenants’. Helpfully, referencing is something that prospective tenants with something to hide will try to avoid. Do not take shortcuts because a tenant wants to let the property quickly, can offer monies upfront or because a ‘friend of a friend’ says they’re “good for the rent”. Genuine tenants won’t quibble about you undertaking credit checks and asking for documentation, such as payslips and bank statements, so as to give you a full picture of their financial standing and rental history.

Furthermore, (and similar to point 2) you aren’t doing someone any favours in allowing them to commit to a rental property that is simply too expensive for them in the first place.

4. Ensure all the paperwork is in place
Tenancy agreements should contain clauses relating to sub-letting, noise, pets and other common do’s and don’ts, which will help avoid conflicts later on (and can become grounds for eviction if they are ignored). A detailed inventory, including photos, not only serves as a record if there is a dispute over the deposit at the end of the tenancy, but acts as a deterrent in the first place (as the recording is so detailed) and a guide for tenants at the end of tenancy (so they can check how the property should be left so as to receive their deposit back).

Ensuring all the paperwork is completed and provided to the tenants in the correct manner will also avoid problems later on. For example, if not served correctly, you open yourself up to fines, compensation claims and difficulty in progressing eviction notices if necessary; all of which a ‘nightmare tenant’ could use against you.


5. Keep in touch
Maintaining an open dialogue with tenants and responding to tenancy-related and maintenance queries promptly will encourage a good relationship. Visiting the property regularly will allow you to spot problems early, as well as checking all is ok with the tenants so as to maintain and prolong their tenancy. It also shows you are pro-active and haven’t just ‘left them to it’; tenants are more likely to take liberties with absent landlords. 



There are many other ways to minimise the risk of letting your property to problematic tenants, some of which are quite subtle and come via experience. Ultimately there is no fool proof way to avoid a ‘nightmare tenant’, although these five tips will go a long way to avoid those who seek to enter a tenancy agreement with bad intentions from the outset.


This article was featured in...





If you are looking for an agent that is well establishedprofessional and communicative in Chichester, then contact us to find out how we can get the best out of your investment property.

E-mail me on clive@crjlettings.co.uk or call 01243 624 599.

Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:

c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP



Chichester rental valuation

Monday, 15 May 2023

BUY-TO-LET DEAL OF THE WEEK: 4 bed house in Chichester, £390,000, 4.9% yield

4 bedroom terrace, Peregrine Place, Chichester
kitchenlounge

Summary
4 bed house in Chichester
Listed for sale on 29/03/23 @ £399,950
Now = £390,000
Rent = £1,600pcm
Yield = 4.9%

The property is on the market with Bell & Blake and full details can be found on Rightmove via the following link: www.rightmove.co.uk/properties/86105106








Thursday, 11 May 2023

Five tips to avoid ‘slum landlords’

Despite mainstream perception, the majority of rental properties are let by landlords who wish to provide safe and pleasant accommodation to their tenants, in exchange for receiving a fair rent. Unfortunately, like in any industry, there are rogues that don’t follow this convention and instead treat their tenants (and property) poorly. Here are five tips for tenants to try to sniff out and avoid these so-called ‘slum landlords’. 


1. Check the basics are in place
All rental properties should have an Energy Performance Certificate, Gas Safety Certificate (if there is gas at the property) and an Electrical Installation Condition Report. These three documents ensure the property is suitable in regards to energy efficiency and safe in regards to the gas and electrical installations. If a landlord doesn’t have or know about these, they are illegally letting the property and clearly don’t understand even the most basic of their responsibilities.


2. Check the property’s condition
Don’t just rent a property based on photos or an online advert - be sure to see it in the flesh! Feel free to check fixtures and fittings at viewings; I’m used to prospective tenants checking the shower pressure to ensure it’s adequate before they move-in. Whilst sometimes there will be works scheduled to be done to the property between a viewing and your move-in, be wary if there are structural or troublesome-looking damp problems, as these can be harder to resolve and there’s no guarantee it will be done to your satisfaction (or in the case of a real slum landlord, done at all!).


3. Check where your money goes
Letting agents must have Client Money Protection, whereas dealing with a landlord directly does without this safeguard. Most transactions will be done via online banking nowadays, so at least there’s a trail of what has been paid. Cash in hand payments should be avoided for this reason and may also point towards a landlord with something to hide (you should at least insist on a receipt). 

You may wish to do a Land Registry search on the property you intend to rent (it only costs £3) to ensure the named owner of the property matches the person you’re about to hand your money over to. 

Meanwhile you’ll most likely pay a security deposit (typically five week’s rent), for which it has been mandatory since 2007 for the landlord to register it into a government-approved scheme. Ask them which one they use - any that respond they “don’t bother with that” should be avoided.



4. Check what the service will be like
Online reviews are easy to find for letting agents and should give you a good idea of the level of service you’ll receive. Whilst this is more difficult when renting from landlords, a quick ‘Google search’ of their name should throw up anything particularly nefarious.

Consider the property as it is now - if it’s been left to get run down then that is quite possibly how it will be managed after you’ve moved in too. You might also like to ask the current tenants how they’ve found things at the property and with the landlord.


5. If the landlord isn’t worried, you should be
Landlords are likely to be as anxious of renting to a bad tenant as you are of renting from a bad landlord. Any who seem too relaxed and eager to simply get you to sign on the dotted line may not be as friendly as they first appear. 

Legitimate landlords will typically want proof of your earnings via bank statements and ID (to conform with the ‘Right to Rent’; another legal requirement on their part). If a landlord isn’t concerned about this it might also point towards an overly-relaxed attitude when it comes to their basic legal requirements and resolving ad-hoc maintenance issues.


So, whilst most tenants simply consider the property when they are searching for their new home, it is equally as important to consider who you’ll be renting it from. Consider whether you are confident that you can trust and communicate with your landlord or letting agent openly. Hopefully the tips above will go some way to ensuring you don’t get trapped in a property that looks ok on the surface but is run by someone who turns out to be a ‘slum landlord’.

This article was featured in...





If you are looking for an agent that is well establishedprofessional and communicative in Chichester, then contact us to find out how we can get the best out of your investment property.

E-mail me on clive@crjlettings.co.uk or call 01243 624 599.

Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:

c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP



Chichester rental valuation

Monday, 1 May 2023

BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Chichester, £375,000, 4.8% yield


Summary
3 bed house in Chichester
Listed for sale on 15/04/23 @ £375,000
Rent = £1,500pcm
Yield = 4.8%


The property is on the market with Bell & Blake and full details can be found on Rightmove via the following link: www.rightmove.co.uk/properties/133662695








Thursday, 27 April 2023

£820m spent on property in Chichester in 2022

…£819,528,482 to be precise.

That was the huge amount of money spent on property in Chichester in 2022, according to recently released Land Registry data. That figure is, however, 12% lower than the total spent in 2021 (£936m).

Interestingly, that decrease was entirely down to the 23% decline in the number of transactions, as the average property actually sold for 13% more in 2022 (£466,171) than in 2021 (£411,599). That pattern is something of a return to normal, as property prices have risen year-on-year for a while now, whereas the number of transactions had been declining each year since 2014 (with the sole exception of 2021).                                                                                                                                                                                      Last year I predicted that a lack of stock on the market would equate to higher prices (correct), whilst pent up demand and more new-build homes being built in the area would also mean an increase in the volume of sales (incorrect). 

When you consider that an average of 2,525 properties were sold in Chichester each year between 2000-2007 (the last ‘boom’ phase for property), it did not seem unrealistic to expect the number of property purchases to increase from the 2,274 sold in 2021. Had I looked a little closer though, I would have noticed that 1,522 properties were sold in the first half of 2021, before the market sharply slowed down in the second half, with just 752 being sold i.e. a market slowdown had seemingly already begun.

Then there was the shock of interest rates being increased seemingly month after month from their record low, which put paid to a lot of people’s intentions (and affordability) of buying a property. That seems to be the number one reason why now the consensus in the media is for a market slowdown - both in terms of property prices and number of transactions. 


If I look at the data for 2022 though, the number of sales was relatively consistent throughout the year (863 in the first half and 895 in the second half), whereas the average price started to decline towards the end of the year. If that trend was to continue, we might expect relatively little change in the number of sales in Chichester, whilst the average price does indeed look set to decrease. That would mean the total amount of money set to be spent on property in Chichester in 2023 will be lower than last year and that 2021 might in fact have been the peak of the market in this respect (for now at least).

To find out and to keep on top of the latest happenings in Chichester’s property market, sign up to the free weekly Chichester Property News e-mail at www.bit.ly/ChiPropertyNews

This article was featured in...





If you are looking for an agent that is well establishedprofessional and communicative in Chichester, then contact us to find out how we can get the best out of your investment property.

E-mail me on clive@crjlettings.co.uk or call 01243 624 599.

Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:

c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP



Chichester rental valuation

Monday, 17 April 2023

BUY-TO-LET DEAL OF THE WEEK: 3 bed house in Chichester, £345,000, 5.2% yield


Summary
3 bed house in Chichester
Listed for sale on 01/03/23 @ £375,000
Now = £345,000
Rent = £1,500pcm
Yield = 5.2%


The property is on the market with White and Brooks and full details can be found on Rightmove via the following link: www.rightmove.co.uk/properties/132128399