Five reasons why a tenant will turn a property down

Whilst the rental market is still strong in our area with plenty of good quality tenants looking to rent its still imp

ortant that, as a Landlord, you really know your market and understand what will make a tenant reject a property.  Below is a list of the most common factors we have come across in the last few months:

·         Kitchen a bit shabby.  Tenants do seem to like nice, modern kitchens at the moment.  If your kitchen is a little tired but you don’t want to start ripping it all out, consider changing the doors or work surfaces as this can really smarten it up without huge expense.  Even just changing the flooring can make a difference but avoid laminate as any small leak will ruin it, go for vinyl.

·         White goods.  This is a bone of contention for many tenants.  In my view if you are renting a 1 or 2 bed property, you cannot expect white goods apart from the cooker.  However, if it is a more expensive property then they should be considered.  However, if you as a Landlord are not prepared to repair / replace them if they fail during the tenancy, make sure this is written into the agreement.  Obviously you have no choice where a cooker is concerned.

·         Bathroom a bit shabby.  Again, tired bathrooms will put tenants off.  If you have a decent bath that looks tired, consider re-enamelling if suitable as this can brighten it up.  Re-do grout and sealant as grubby sealant looks awful and is a real put off.  Again, changing the flooring can help as well.

·         Strong coloured carpets.  Tenants much prefer neutral colours or laminate to strongly coloured carpets.

·         Parking.  If parking is a bit of a free-for-all this can put tenants off but obviously there is little that a Landlord can do about this, just bear it in mind if you are looking to buy a buy-to-let.  You don’t necessarily need a garage but some sort of allocated parking is always a plus.

      If you want any advice on what work you are considering carrying out on your rental property, please feel free to pop in to our Bridge Street offices and we will advise you if you are spending wisely!

Picket Twenty -v- Saxon Fields

A landlord came into our office to ask whether the Picket Twenty or the Saxon Fields development would be a better place to invest in. She was considering purchasing a mid-terraced house.

The properties on Picket Twenty are still being built but there are plenty now coming up for re-sale. This development is built mainly by 3 of the main builders in the country and is an attractive development. The Saxon Fields development was built in the mid 1990’s. This development has matured really nicely and is very popular with couple and young families with lots of green space around it, including the Anton Lakes nature reserve. The average value of a mid-terraced house on Picket Twenty Way is £254,074, whilst in Altona Gardens on Saxon Fields a mid-terraced house has an average value of £207,655.

On Picket Twenty, a two bedroom mid-terraced house can achieve rents of around £900-£925 per month.  Looking at the rents for Altona Gardens, a two bedroom mid-terraced house can potentially achieve £800-£825 per month. So Picket Twenty currently has the better yield of 4.3% while Saxon Fields offers a yield of 4.7%.  The new development is demanding higher rents at the moment but the older property is providing a better return.  Both are equally popular with tenants.

If you would like any advice when choosing properties, please pop in and see us at our Bridge Street offices.

Nice investment opportunity in Ludgershall

Look at this lovely little flat in Stratford Mews, Ludgershall.  Its at the back of the block so is nice and quiet and overlooks allotments.  In todays market you could achieve £525pcm, giving a very respectable yield of 5.7%! 

Ludgershall is popular with tenants as it does tend to be a little cheaper than Andover but has local supermarkets, pubs, cafes etc and is on a good bus route.  Add to this the lovely surrounding countryside and you can’t go wrong!

https://www.martinco.com/property/for-sale/265460

Give the office a call on 01264 364293 if you would like to take a look.

Get Ready for Winter!

There's no getting away from it - winter is well and truly on its way.  Below are a few hints and tips on how to get your property ready for the onslaught - whether it's your home or investment, it still needs doing!

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• 1.      Check guttering – once the leaves are off the trees it’s a good time to check and clear gutters.  In our experience a lot of damp issues are often caused by blocked and overflowing gutters and downpipes.  Get rid of anything that shouldn't be there!
• 2.      Check roof tiles and chimneys – you can take a look in the loft initially as this will show any possible damp spots.  If there are issues, get the roof checked for cracked and slipped tiles.  Another favourite area for letting in damp is chimneys.  Do they need capping?  Is the flashing in good order?  All these tasks can be checked by a good roofer or builder.
• 3.      Ensure all pipes are adequately lagged – this especially applies to external pipework, even a short run to an outside tap.
• 4.      Switch off the water supply to outside taps and drain them down.

Always remember though that buildings need to breath so ventilation is still very important to avoid the build up of condensation, more on that in a later blog.

Help to buy ISA

With rents generally increasing around the country it is becoming more difficult for prospective home owners to save that all important deposit.  To help the government this year has introduced the Help to Buy ISA.  This is a product aimed solely at first time buyers who will have their savings boosted by 25% by the Government up to a maximum return of £3000.

This ISA is available through most banks and building society’s but as you would expect there are some conditions to be met:

• The saver must be over the age of 16
• The value of the property cannot exceed £450k in London or £250k in the rest of the country
• This scheme cannot be used to fund a second home or buy to let investment
• The saver must save at least £1600
• The saver can only open one Help to Buy ISA
• The buyer can use any mortgage provider, not necessarily the bank who has provided the ISA
• The ISA is for an individual so if a couple are looking to buy their first home they can both open a Help to Buy ISA
• Buyers can transfer the ISA if they can get a better deal elsewhere

Obviously this is a positive step in helping people get on the property ladder and should be seriously considered but as with all these products, shop around for the best deal.

Rent payments have now overtaken mortgage payments

Savills have recently reported that in the last year they estimate rental payments have totalled approximately £74.8bn while mortgage payments were estimated at £73.2bn.

They also report that private Landlords own more housing equity than owner occupiers with the figures being £1,077bn against £!,067bn.  However, the amount of property owned outright stands at an estimated £2,097bn.

In a separate report Savills state that a house worth £66,110 in 1995 is today worth an estimated £262,847.  

Currently less than 6% of local government wards have average house prices of under £100,000 compared with 88% in 1995.

Huge fines for tax evasion Landlord

A Landlord has recently been fined a massive £283,886, been given a two year suspended sentence, ordered to carry out 200 hours of unpaid work and pay £1,500 in costs following tax evasion charges.  It was alleged that the defendant had failed to pay tax on rental income on his ten properties in the London area covering a period of 5 years.  If the fine is not paid within 3 months he has been warned he will face 3 years in prison.

HMRC decided to carry out a full investigation into College principle Macdonald Abambas affairs following a crackdown on Landlords in the area.  Mr Abamba was given the opportunity re repay the tax, which he had used to buy further property abroad, but failed to do so.  HMRC then launched a criminal investigation and the defendant was charged with cheating the public revenue, under common law.  Once the case got to court Mr Abamba pleaded guilty.

#John Cooper, assistant director, Fraud Investigation Service at HMRC, said: “Abamba should have done the right thing by declaring this income. He was given the opportunity to come clean and pay what he owed but he chose to ignore it.

“He now has a criminal record, has ruined his reputation and must rightfully repay the money he stole, plus interest, within three months or face real jail time.

“The majority of us pay the tax that’s due, when it’s due, and it is unfair that people like Abamba think they have the right to steal money that is needed to fund vital public services.

“We know that some landlords are unsure of their tax liabilities which is why we launched the Let Property campaign, but this man clearly knew what he was doing and continued anyway.”