The Problems You Could Face When Renting Out A Property

Investing in a property is a smart move to make in these current financial times. After all, your money isnt doing anything in savings accounts anymore, so its always been good advice to put your money in bricks and mortar and invest in property. You may already own your home, so other options to consider are to buy a house to rent out to people who are struggling to get onto the property ladder themselves. While it all may sound very simple, there are problems even the most experienced landlord can have. I thought I would share with you what some of the most common ones are.


Payment issues


A good tenant will always pay on time, and of course, if you have the support of an agent, then you may always be guaranteed the rent. But, there are still issues you could face if you find yourself with tenants who dont pay their rent on time, or at all. This means that you may have to get involved in regards to bailiffs or chasing arrears of payments if you find they start to pay the agreed amount. It can be an unpleasant thing to do, as often, the tenants are not paying due to circumstance. However, you do find that you can end up with tenants that are trying their luck with messing you around.


Needing the tenants out at their end of their agreement


With all tenancy agreements, there will come to a point where the contract ends. Of course, you may have already renegotiated for a new term or agreed with your tenants the next step, but, in some cases, landlords may want to have the property vacant once more. Maybe to sell it or renovate it, or get rid of problematic tenants. However, you may find yourself in a situation where the tenant wont move out. This is when you may need the help of property litigation solicitors to resolve any issues. It wont be easy with sitting tenants in your home, and they may even change the locks or cause you distress. So it is vital to have the law on your side.


Damage to the property


If you have a decent tenant, then the chances are they will take care of your property as if it was their own. Ensuring that no damage is done and that it remains, and anything you provided within the property, in good condition. But there could be times where a tenant damages the property and then leaves without any way of you contacting them to pay for the damage. In rare cases, the damage can be substantial.


Residential problems


Finally, as a landlord, you may find that you are expected to resolve any residential issues that may arise due to your tenants. They could be disruptive to neighbours, cause brawls or issues on the street, or perhaps dont leave the property looking as good as it should be, for example, leaving rubbish on the front. There are all types of residential issues you could face with your tenants, and it can be quite hard to resolve and deal with people who have such a difference in opinion.


I hope this has made you more aware of some of the problems you could face when renting out a property, however, do bear in mind that this isnt always the case, and renting out a property can be a very worthwhile investment to have.

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The Benefits Of Investing In Large Cities In The North Of England

Slowly but surely, the global economy has now fully recovered from the financial crisis in the latter part of the previous decade. There are now, incredible investment opportunities for anyone whos savvy to make a healthy profit from all kinds of business ventures. No more so, than perhaps the oldest money-making strategy technique, property investment. The benefits of doing this in a large city are almost countless, as the environment is characterised by constant growth, ebbs, and flows of the economy and the socio economical needs of the populace. It’s a great place to diversify your portfolio, and if youre willing to do so, you can have your finger in many pies at once. The best options for investing in large cities lay in the commercial and residential real estate market. However, in the modern world of fast-flowing commerce, the trend to buy seemed all but fizzled out, so you must innovate to generate.


Consumer trends


Look for cities that have consistently shown themselves to attract a wide variety of people, but all on the same socioeconomic journey. Young professionals and retirees are the very motivated to find the best property for long-term inhabitants. Millennials want to get on the housing ladder and have increasingly found themselves to be left behind by governmental policies. However, these young families and career-minded individuals have found innovative ways to live in properties that would otherwise be out of their price range but choosing to rent, rather than to buy outright and seek ownership.


However, retirees who have saved for a lifetime, also want to buy their dream homes and finally get to relax after a long life of work. They are in the process of looking to move up the ladder as well. They may have been living in an average-sized home, but now want to buy homes will large garden spaces and possess the square-foot capacity for a guest house so they can accommodate for guests and family. These home styles are found around the outskirts of large cities as affluent home buyers want to find peace of mind in the countryside but have been city-slickers all their lives; so theyre not willing to make a clean break from the city itself.

Image by – Max Pixel


Why the north?


Property investment is set to be a very lucrative strategy to make consistent returns, more so in cities situated in the north of England. Times are changing, and finally, the politicians have realised that the north is no longer purely an industrial complex, but a thriving part of Great Britain where innovation and job creation is at an all-time high. HS2 plans seem to be going ahead, and this will only cement the narrative that the north is finally going to be linked to the south with jobs and wealth flowing upward.


Professionals in Birmingham


Travel a little further south, and youll find the second largest city in the UK, Birmingham. There are so many investment properties and many categories to choose from. The city has the biggest population outside of the capital and attracts young professionals from both the south and the north, meshing cultures together and the promise of good paying jobs. The location of the city being in the Midlands makes it very accessible and all other cities in every direction, evenly spaced with regards to travel time to reach them. The high-speed rail program is due to be finished by 2026, and the Birmingham New Street train station is already receiving 150,000 commuters every day, this is surely set to increase. From London, directly to the heart of Birmingham is where this line will run, so the cities are set to begin sharing talent like never before, making it full prime real estate opportunities.


Retirement opportunities in Leeds


Leeds property prices have gone up by 6% and the average price for a home has also gone up. But as aforementioned, the young professionals are earning more money than previous generations, but dont want to buy. Leeds is, therefore, an even bigger attraction to investors as the plan is to build more and more apartments and high-rise buildings that could supply plentiful housing in the form of luxury studio property. The city is also in among the fourth most heavily populated urbanised area, with many bungalows, and terrace houses linking neighborhoods and families together. Cheaper than the Midlands and most definitely the south, Leeds is a great place for pensioners to buy large properties for their retirement years, for a very good price.


The north of England is but a mirage of its former self, and this is because the shift from mechanical engineering and natural resources jobs have given way in number, to young professionals working in the technology industry and e-commerce sector. Now is the best time is invest in properties as large scale population movements are taking place.

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Foreign investors targeting first-time buyer properties in London

London has always been a property hotspot, and it is now a magnet for foreign investors who are snapping up properties as investment opportunities.

A survey carried out for Mayor of London, Sadiq Khan, has revealed that many investors from overseas are now buying properties that are suitable for first time buyers.

These are being used in the most part as buy to let property investments and often hold them in offshore tax havens.

Foreign Investors
Many of these foreign investors originate from countries such as Hong Kong and Singapore, and between 2014 and 2016, they purchased 3,600 of the 28,000 newly built homes in the capital. Around half of these were priced between 200,000 and 500,000, which was targeted at the first time buyers market, given that the average first time home in London costs 405,000. In addition to this, a third of new homes in Westminster, Kensington and Chelsea and the City were also sold to overseas investors.

Sadiq Khan and the London boroughs are so concerned by this trend that they have called for blocks on foreign buyers until Londoners themselves have had an opportunity to buy. Seen as unfair, many are alarmed that this housing is not going to the buyers it was intended for.

One in eight of all new homes being constructed in Tower Hamlets, Greenwich and Wandsworth are being purchased by foreign investors.

Investment Types
Of the residential properties being bought by foreign investors, 70% are purchased as rental investments, whilst 15% were bought by businesses. A sixth of these were based in the well known tax havens of the British Virgin Islands, Channel Islands, Isle Of Man and the Cayman Islands.

Mayor Of London
Increasing pressure has fallen onto the shoulders of the Mayor Of London, largely from his own housing board who feel he should ensure that more homes are made available to Londoners first. They have called for particular measures to focus on homes priced for first time buyers.

Sadiq Khan has expressed his concern at the matter, and has pledged to keep the supply of affordable homes as his top priority. Nonetheless, he also understands the important role played by international investment, which provides developers with the finance they need to continue to increasing the supply of homes in the first place. Khan is yet to announce the measures he intends to put in place.

This is not an isolated incident, as the trend now also seems to be spreading to Manchester.

Research has shown that much of Londons largest residential development required overseas investment to get it off the ground. London has long been an attractive area to foreign investors, and has shown to be somewhere safe to keep their money, particularly if the buyer originates from a more unstable region. However, this has lead to concerns are using London homes to hide the proceeds of corruption.

With new apartment complexes in Southwark and Elephant and Castle being bough entirely by foreign investors, concerns are still being raised about the levels of investment being made and the potential under-occupancy of those properties.

Whilst foreign investment is necessary for any city, it is important that the residents of that city have somewhere to reside and so measures will need to be carefully considered to strike the right balance.

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Ready For Anything How To Prepare For Home Emergencies

One of the major differences between renting a home and owning one is that if anything goes seriously wrong, its all down to you. There will be no landlord paying for expensive boiler repairs, or no management company arranging for an emergency plumber to come and fix a leak.

Youre on your own, and when disaster strikes – which it inevitably will – you need to be ready. But heres the thing – how can you prepare for the unexpected, particularly if you have no experience of these disasters happening before? Were going to explore a few ideas you can use right now, so read on to find out more.


Invest in fire extinguishers and first aid kits

First of all, make sure that you are ready to deal with accidents in the home with a first aid kit – it can really make a big difference to when it comes to first response treatment. And the potential of a fire occurring at any point is a very real one – so invest in a few fire extinguishers, ensuring you know the difference between colours and uses – you need a different extinguisher for electrical fires, for example, than you do for your furniture going up in flames.

Get the best possible cover

Insurance is one of those incredibly dull and dubious things in life we all cant abide, but have to bite our tongues and get on with. But dont just pick the first policy you come across – take some time reading the small print and ensure that you have the right levels of cover. Its also important to check your policy every year or so to make sure you have enough cover. Whenever you make a new major purchase, renovate, or even buy a dog, your insurance needs to change.

Build an emergency fund

Another great way to ease the pain of a household breakage or disaster is to create an emergency fund. In an ideal world, it will be somewhere between 3-6 months of your current income levels, and it will allow you to pay for emergencies of breakages without impacting on your usual spending and saving.

Seek out favourable borrowing

You may have to borrow money to make repairs on your home, but its important to ensure you choose a company that offers the best possible deal. Using quick loans is an option, of course, but only if you can guarantee you can pay it back as soon as possible. You might try applying for an interest-free credit card, too – so you can pay back the amount you borrow over 12-18 months and avoid any interest charges.

Get to know your local trades

Every community has small armies of tradespeople who offer electrical, building, repair and plumbing services. But lets be honest – in every community, there will always be some that are better than others. As a homeowner, you should be looking to find reputable, experienced tradespeople and firms that you trust, so when the time arises you can call them straight away to help out.

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Survive Your First Property Investment

If youre thinking about investing in property, you might have a slightly skewed perspective. Speak to people who have already invested in property and generally, theyll tell you how much money theyve made and how easy it was. They wont tell you about the struggles they faced, and they will probably fail to mention that it took longer than expected. Surviving your first property investment isnt easy, and if youre not careful it can leave your bank balance dry and you emotionally drained.

That said, there are steps you can take to avoid the issues and make sure your first property investment is a brilliant success.



Speak To A Broker

One of the first mistakes you can make investing in property is buying the wrong place. Basically, you need to make sure you avoid buying a property that doesnt have the potential to be profitable in a future sale or through letting. Properties like this have major issues that will require expensive repairs.

You can avoid this completely by making sure you use the service of a broker. A property broker will only recommend buildings, houses, and flats that have most potential. Just like a stock broker, theyll recommend these investments to you so you can decide whether they are worth your time and your money.


Budget Wisely

There is no getting around the cost of a property investment, and were not just talking about the initial cost of purchasing the property. If you are preparing the property for let, you will need money available for renovations and perhaps even furnishings. Of course, there are always ways to cut the costs and still guarantee that you have a brilliant place where people will want to live. Companies such as Flambard Williams have some fantastic buy to let tips that could really help you here. Although one option would be to buy an entire block of apartments and then furnish it with furniture bought in bulk. By doing this, you can save a lot of money from one purchase.


Dont Grow Too Fast

You might be eager to grow your property investments, and this is understandable. Particularly, if one seems to be going quite well. For instance, you might have bought one flat, let it and decided to invest in another. However, this could be a mistake because when you do this, the costs can quickly grow out of control, rather than the profits. Instead, you should focus purely on your first investment and wait at least a year before taking another risk.


Remember The Hidden Costs

Finally, there are a number of costs that come with investing in property that might not be apparent at first. For instance, if you are buying an apartment you might need to pay money to the owner of the building for maintenance. In cases like this, the easiest way to handle it is to take that into account when choosing how much to charge in rent. The trick is to plan your budget so you are always in the green and constantly think in terms of the worst case scenario. Do this, and you will survive your first property investment.

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