Chichester Property News: property

Showing posts with label property. Show all posts

Thursday, 3 April 2025

Avoid having your house ‘stolen’

Scammers are getting increasingly sophisticated and property is an area they target due to the high transactional values. You may be aware of ‘phishing’ attacks, whereby fraudsters impersonate your solicitor to try and intercept the transfer of funds into their own pockets, but have you heard about the tricksters who attempt to impersonate you so as to steal your property!?

The theft occurs with the criminal impersonating the owner of a property so that they can then sell or re-mortgage it. Buy-to-let properties without a mortgage are a prime target here, as the owner won’t live at the property and there isn’t a mortgage company double-checking things or receiving any of the sale proceeds.

As title deeds are a publicly available document (they cost £7 to download online), it is very easy for anyone to get the name of the owner of a property. The title deed will also show whether there is a ‘charge’ against the property i.e. a mortgage. With this information the fraudster, who often first poses as a tenant, will simply change their name by deed poll to match the property owner’s name. Now living at the property with the same name as the true owner, it becomes very easy to build up identification documents and paperwork that would see that person passed off as the ‘owner’.

That’s exactly what happened to a property in Luton in 2021, with a fraudulent tenant selling the property without the landlord even knowing! Unfortunately, this is not an isolated incident, with the Land Registry paying out millions in compensation each year due to fraudulent transactions. Another case saw a previously unencumbered property in London become subject to a £1.2million bridging loan, which was paid out to a mother and daughter who had changed their name to match the registered owners.

Fortunately, there is a solution to this; which is to enter a restriction on your title deed. This will then state that any application to change the register must be accompanied by a solicitor’s certificate verifying your identity as that of the legal owner. This can cause a slight delay when you actually want to sell or mortgage your own property, but that’s surely better than falling victim to this crime.

Another option is to sign up to the Land Registry’s free property monitoring service. You’ll receive an email if an application is made to change the register; so, whilst it won’t prevent changes being made, at least you’ll know straight away so you can take prompt action.

As ever, prevention is better than cure. So, whilst the above is rare, it pays to be aware of such matters so you can put measures in place to ensure you are protected. Thorough tenant referencing will also put off any chancers with such misdeeds in mind, as they will seek an easier target if asked too many questions.

Thursday, 23 January 2025

Why you should let tenants turn your house into their home

I often get asked by prospective tenants whether they’d be allowed to put pictures up on walls should they rent a property of mine. I’m amazed some landlords charge thousands in rent but won’t allow their tenants to put a few pictures up, especially when you consider it from a business perspective.

Having such stringent rules about how a tenant can live won’t make them want to stay for long. This will naturally create a higher churn of tenants, leading to more void periods (and less rent in the landlord’s pocket). Furthermore, the coming and going of tenants will lead to greater wear and tear; which presumably is what the landlord was trying to avoid in the first place!

In my view it’s quite simple; yes, the tenant should respect the property they are renting, but for the time they are there they should see it as their home and treat it accordingly.

If tenants want to put pictures up, they would simply be instructed to return the wall in the same condition as when they started the tenancy. That would mean filling any holes and touching them up. If the touch up doesn’t match the rest of the wall, they should paint the wall. Alternatively, I’d probably give them the advice to buy special hanging strips, which can be used to hang pictures on walls securely without making any holes!

To further protect the landlord, an inventory is created before the tenancy begins, which includes a thorough description and photos of the property’s condition (including the walls). The tenants get the opportunity to check through it, so all parties understand how things need to be returned at the end of the tenancy (less fair wear and tear).

Inspections will soon show if tenants are abusing the tolerances afforded to them, whilst a visit before their move-out with a few pointers as to what is needed to be done to get the property back to the required standard is a good idea. This will help tenants know what is needed to get their security deposit back and it should reduce any required maintenance come the end of the tenancy (again reducing the dreaded void periods).

As ever, choosing the right tenants is important in allowing them the flexibility to live in the property as if it were their own. Whilst the best tenants will ask before making any changes and implement them in a reasonable manner, bear in mind that the worst tenants will just go ahead and do it anyway. Having a more collaborative approach should see happy and content tenants wanting to stay longer in the landlord’s house, having turned it into their home.

Thursday, 29 February 2024

Getting your property ready to rent

In my last article, I listed the basic things you’ll need to put in place before you can legally let your property. Assuming they’re all sorted, the next thing you’ll need to do is get the property ready for marketing and viewings. With that in mind, here’s a few things to consider to get the property ready to rent:

Consider improvements

We’ll assume any necessary repairs are done and the house is watertight and fully functioning. That being the case, you could now let it…but will anyone want it? It’s a lot easier to undertake improvements before a property is tenanted, and doing so is likely to attract a better, longer-term tenant, who may be willing to pay a higher rent for a nicer home.

So, are the windows and heating up to scratch? How old are the bathrooms and kitchen? Is there a decent shower and suitable kitchen appliances? Could the walls do with re-decorating or the flooring upgraded? It may seem boring but a crisp neutral décor is easier on the eye and provides a blank canvas that tenants can see themselves living in.

Factor in the cost to undertake these works versus the uplift in the property’s value and the gains in tenant satisfaction, longevity of their tenancy and increased rental income.

De-clutter

Taking photos of a property with lots of ‘stuff’ in it won’t show it off to its full potential. It’ll also put people off when they come to view the property as it will make the rooms feel smaller and less inviting. Simply clearing surfaces and stacking things away neatly can bring some much-needed calm to a property.

Dress the rooms

Whilst the majority of properties are let unfurnished, you can at least straighten the lightshades and pull back the blinds or curtains to let in the most amount of light. If you are providing furniture though be sure to dress the rooms so they reflect who you’re targeting i.e. setting the dining table makes more sense for families than it does sharers.

Keep it clean

No one wants to rent a dirty property, so make sure it’s spick and span so it’s looking its best. Don’t forget the outside spaces either; make sure the frontage is clean and tidy, ready to make a good first impression. Tidying up the garden and creating a low maintenance space will make it more inviting, rather than looking like something tenants will have to be working on every weekend.

Once the property is up to scratch and made to look its best, it’s time to call in the professionals and get it valued, photographed, measured-up and marketed. A well-presented property that is priced correctly will stand above those on the market that have had less care taken with them and, as a result, should make finding tenants that bit quicker.

Thursday, 14 September 2023

Avoid having your house ‘stolen’

The theft occurs with the criminal impersonating the owner of a property so they can then sell or re-mortgage it. Buy-to-let properties without a mortgage are the perfect storm here, as the owner won’t live at the property and there isn’t a mortgage company double-checking things or receiving any of the sale proceeds.

Thursday, 17 August 2023

How much rent should you charge?

In contrast to popular belief, the automatic assumption amongst landlords is not “as much as possible!”

When assessing what rental figure you should market your property at, you need to consider what is available at the time you are marketing. It is not sensible to think “well, it rented for £800 a month a couple of years ago and rents are up 10% according to that London based newspaper, so I guess £880”…when another apartment in the block with a sunnier aspect is being marketed at £850pcm.

You should also consider the situation you find yourself in. If you’ve just received the keys to a new buy-to-let, you should price it cautiously so that it lets as soon as possible. If, on the other hand, you’ve just received your month’s notice from your current tenants, you have a little time to ‘test the market’, safe in the knowledge you have a month to ‘tweak’ things if needed.

Having said that, I still wouldn’t advise automatically extracting the maximum figure you deem possible from tenants. By offering a well-presented property at a realistic or favourable price, you will get to choose from a wider pool of people. Besides, even if you do find tenants who sign up for a bumper rental figure in excess of what the property is reasonably worth, how long do you think they’ll stay put?

Consider the fact that tenants will typically stay longer in a property they feel they are getting a good ‘deal’ from. This will help you to minimise your tenant turnover, wear & tear and void periods, all of which will help you make more money in the long-run (and with less hassle). Since the tenant fees ban, the door has been opened even wider for tenants to up and leave at little cost, which they’re likely to do if they see something similar to rent at a better price.

Another reason to be realistic from the start is that the first few days of marketing is when you’ll get the most interest. If it’s priced too high initially tenants may dismiss it and even when it’s reduced they’ll still disregard it having seen it a few weeks earlier, remembering they’d previously rejected it “for some reason”.

Bear in mind the actual marketing figure you use too. I’ve written previously how people search the property portals online and filter properties by price. For example, you’ll lose out on a huge number of potential tenants that would be happy to pay up to £1,000pcm if you try and push the asking price to £1,050pcm.

I’d prefer to be conservative on the rental price and receive it 100% of the time from long-term tenants who appreciate living there, rather than squeezing the most I can from someone who ends up either not being able to afford it or deciding it’s not worthwhile staying.

Thursday, 30 March 2023

Is Chichester or Bognor Regis best for buy-to-let?

I was recently called by a husband and wife who were considering buying a rental property for the first time. I was happy to give my thoughts on the market, for which one of the first things they asked was where they should buy.

Whilst my typical answer to this is “it depends”, it is true that I am an advocate of buying locally to where you live; for both ease of management and for being able to use your local knowledge of the property market to avoid buying a dud. With this in mind, their next question was which area was best locally; Chichester or Bognor Regis?

Whilst the average property in Chichester costs £472,708, in Bognor Regis the average home is a more ‘affordable’ £370,580. Isn’t it amazing that a fifteen-minute journey down the A259 could save you 22% off the price of a home!

With the average rent in Chichester standing at £1,295 per month, property is also more ‘affordable’ for tenants in Bognor Regis; which has an average rent of £1,100 per month.

The above figures translate into a projected average yield of 3.3% in Chichester and 3.6% in Bognor Regis. Both these figures seem rather low though, as rental properties tend to be purchased towards the lower end of the market, so you can expect a slightly higher return than this. The logic holds though: property in Bognor Regis will require less money upfront and provide a better rental return than property in Chichester. However, it’s not all about the yield when investing in property; next we should look at the increase in property prices over time from both areas.

In this case, Chichester was the winner up until the pandemic. Before then, whether it was in the short, medium or long-term, property prices in Chichester generally rose by a greater amount than in Bognor Regis.

That’s why I often say if you’re looking for consistently-proven strong capital growth, Chichester is great; whereas if you’re seeking income immediately from your property, it could be wise to look towards Bognor Regis.

As mentioned though, since the pandemic something strange has happened. Whilst property prices have increased a solid 23% in Chichester since March 2020, they have leapt by nearly a third in Bognor Regis! Could the tide be turning towards Bognor Regis, or have prices there got a little carried away since the ‘pandemic property boom’?

The above shows how important it is to consider all the facts and figures available to you when planning to invest in property. A key factor in deciding where to invest though will be what you want to achieve i.e. a better rental income now, or more proven capital growth in the long run (as sensible landlords know that, unfortunately, it’s rare to find both).

If you’re thinking of buying a rental property and would like some impartial advice as to which area and property might suit you best, please give me a call and I’ll be happy to give you a free initial buy-to-let investment consultation.

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If you are looking for an agent that is well established, professional 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:

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Thursday, 16 March 2023

Why you should let tenants turn your house into their home

In my view it’s quite simple; yes, the tenant should respect the property they are renting, but for the time they are there they should see it as their home and treat it accordingly.

This article was featured in...

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Thursday, 2 February 2023

£80m per hour increase in property values in 2022

Research from Zoopla has concluded that the total value of UK housing reached £10.5 trillion by the end of 2022. That represents an increase of £700 billion compared to the year before, or nearly £80 million being added to the collective worth of UK property each and every hour!

12 out of 13 homeowners were said to have registered a gain in the value of their property in 2022. The average gain for those 27.4 million homes was £19,000, but there were nearly three million that increased in value by more than £50,000.

Over a quarter of the 2.3 million homes that registered an average fall in value of £7,300 were located in London. Much of this decline came in the second half of the year, as mortgage rate rises put downward pressure on prices. In the final quarter of 2022 there were actually more homes in the UK (15.8 million) that declined in value, compared to those that increased in value (13.9 million).

One million homes are thought to have now lost all the gains they made in the first two years of the pandemic (whereby values increased an average of £32,400 between February 2020 and February 2022). These are mostly located in London, the South East and Scotland; areas which did not increase in value as much as others during the period.

Nationwide Building Society has since confirmed that house prices declined for a fifth month in a row in January 2023, so this downward trend seems likely to pick up steam as the year goes on.

The research shows how the profile of gains and losses varies across the country and by price band. This highlights how there is not really a singular ‘housing market’ across the country, but many micro-markets, with each home having its own trajectory when it comes to its worth.

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Thursday, 26 May 2022

Which buy-to-let property is right for you?

I was previously contacted by a retired couple who were moving to Chichester and wanted some advice. They were looking to invest in a few rental properties to supplement their pensions and had been to four local estate agents, who each had the ‘perfect’ property for them. Yet each property was in a different part of town and in various states of repair!

So, they asked me, which should they buy? To which my response was; it depends!

You see, we all have different circumstances and preferences, which call for a different approach to property investment:

- ‘Bargains’ can be elusive in and around Chichester as it is an area in high demand. Modest rental returns (yields average 3.2%) should, however, give way to better long-term prospects for capital growth.

- People seeking more rental income may want to look further afield where property prices are lower. Bear in mind though that these relatively cheaper areas may require more management, not rent as easily, nor provide such positive long-term prospects.

- Newer-build properties will require less maintenance and should attract good quality tenants. This type of property can give you a quieter life but at a higher purchase price, which will impact your initial rental yield.

- ‘Doer-uppers’ on the other hand can be great if you have the skills, time and money to inject new life in to a tired property. Buying the right property at the right price, with a sensible budget for refurbishment, could maximise your returns.

The retired couple had worked hard for the past forty years and now wanted the quiet life; with a safe investment that gave them a reasonable return. They had a good amount of capital to invest and did not want to undertake a project, nor spend hours chasing after ‘problematic tenants’.

In this instance I recommended they look at modern houses in and around Chichester, which should prove to be a good long-term investment. Well-kept properties will attract good quality, long-term tenants with fewer maintenance issues. They would be able to move people straight in and start earning a reasonable (4%+) return on their money.

Whilst it may not make them a fortune overnight it is a simple and relatively safe strategy, which is what they wanted. It beats the return from a savings account too!

Thursday, 31 March 2022

Getting your property ready to rent

Consider improvements

Factor in the cost to undertake these works versus the uplift in the property’s value and the gains in tenant satisfaction, longevity of their tenancy and increased rental income.

De-clutter

Dress the rooms

Keep it clean

Thursday, 11 November 2021

Avoid having your house ‘stolen’

A worried landlord forwarded me a news article last week about this recently happening to a man in Luton. He had returned home to find it stripped of all his possessions, having been sold without his knowledge. Unfortunately, this is not an isolated incident, with the Land Registry paying out £3.5m in compensation due to fraudulent transactions last year.

The fraud occurs with the criminal impersonating the owner of a property so they can then sell or mortgage it. Buy-to-let properties without a mortgage are the perfect storm here, as the owner won’t live at the property and there isn’t a mortgage company double-checking things or receiving any of the sale proceeds.

That’s exactly what happened with the property in Luton, with the fraudulent tenant selling the property without the landlord even knowing! Another case saw a previously unencumbered property in London become subject to a £1.2million bridging loan, which was paid out to a mother and daughter who had changed their name to match the registered owners.

This article was featured in...

Thursday, 6 February 2020

Why you should let tenants turn your house into their home

At a viewing last week, I was asked by prospective tenants whether they’d be able to put pictures up on walls should they move in. I’m amazed some landlords charge thousands in rent but won’t allow their tenants to put a few pictures up, especially when you consider it from a business perspective.

Having such stringent rules about how a tenant can live won’t make them want to stay for long. This will naturally create a higher churn of tenants, leading to more void periods (and less rent in the landlord’s pocket). Furthermore, the coming and going of tenants will lead to greater wear and tear; which presumably is what the landlord was trying to avoid in the first place!

In my view it’s quite simple; yes, the tenant should respect the property they are renting, but for the time they are there they should see it as their home and treat it accordingly.

If tenants want to put pictures up, they would simply be instructed to return the wall in the same condition as when they started the tenancy. That would mean filling any holes and touching them up. If the touch up doesn’t match the rest of the wall, they should paint the wall. Alternatively, I’d probably give them the advice to buy special hanging strips, which can be used to hang pictures on walls securely without making any holes!

To further protect the landlord, an inventory is created before the tenancy begins, which includes a thorough description and photos of the property’s condition (including the walls). The tenants get the opportunity to check through it, so all parties understand how things need to be returned at the end of the tenancy (less fair wear and tear).

Inspections will soon show if tenants are abusing the tolerances afforded to them, whilst a visit before their move-out with a few pointers as to what is needed to be done to get the property back to the required standard is a good idea. This will help tenants know what is needed to get their security deposit back and it should reduce any required maintenance come the end of the tenancy (again reducing the dreaded void periods).

As ever, choosing the right tenants is important in allowing them the flexibility to live in the property as if it were their own. Whilst the best tenants will ask before making any changes and implement them in a reasonable manner, bear in mind that the worst tenants will just go ahead and do it anyway. Having a more collaborative approach should see happy and content tenants wanting to stay longer in the landlord’s house, having turned it into their home.

This article was featured in...

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}

Thursday, 30 January 2020

Is your property protected against fraud?

Unfortunately, scammers are getting increasingly sophisticated and property is one area they target due to the high transactional values. You may be aware of ‘phishing’ attacks, whereby fraudsters impersonate your solicitor to try and intercept the transfer of funds into their own pockets. But have you considered the fraudsters who attempt to impersonate you!?

Property title fraud has been on the increase in recent years. In simple terms, this is where a fraudster will target properties that they can sell or mortgage by impersonating the registered owner. Buy-to-let properties without a mortgage are the perfect storm here, as the owner won’t live at the property and there won’t be a mortgage company double-checking things.

As title deeds are a publicly available document (they cost £3 to download online), it is very easy for anyone to get the name of the owner of a property. The title deed will also show whether there is a ‘charge’ against the property i.e. a mortgage. With this information the fraudster, who typically poses as a tenant, will simply change their name by deed poll to match the property owners name. Now living at the property with the same name as the true owner, it becomes very easy to build up identification documents and paperwork that would see that person passed off as the ‘owner’.

That’s exactly what has happened in recent cases, with one fraudulent tenant selling a property without the landlord even knowing! Another case saw a previously unencumbered property in London become subject to a £1.2million bridging loan, which was paid out to a mother and daughter who had changed their name to match the registered owners.

Fortunately, there is a solution to this; which is to enter a restriction on your title deed. This will then state that any application to change the register must be accompanied by a solicitor’s certificate verifying your identity as that of the legal owner. This can cause a slight delay when you actually want to sell or mortgage your own property, but that’s surely better than falling victim to this crime.

Another option is to sign up to the Land Registry’s free property monitoring service. You’ll receive an email if an application is made to change the register; so, whilst it won’t prevent changes being made, at least you’ll know straight away so you can take prompt action.

As ever, prevention is better than cure. So, whilst the above is rare, it pays to be aware of such matters so you can put measures in place to ensure you are protected. Thorough tenant referencing will also put off the chancers who will simply walk away to find an easier target if they are asked too many questions.

This article was featured in...

^{_{c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP}}