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Tag: Landlord

September property market update

Posted on by Sophie Winter

According to the latest Rightmove House Price Index, average asking prices for new sellers rose by 0.8% (+£2,974) in September, reaching £370,759, with the property market benefiting from a surge in activity. This price increase is double the long-term average for this time of year, reflecting pent-up buyer demand being released, leading to a 27% year-on-year rise in sales agreements.

Image from Rightmove September House Price Index

More sellers entering the property market

Rightmove’s data highlights growing confidence among homeowners, with 14% more sellers entering the market compared to last year. The number of available properties per estate agent has also reached its highest level since 2014, giving buyers more choice with an average of 33 homes per branch.

How long is it taking to find buyers?

Despite increased market activity, caution remains a buyers are price sensitive. It currently takes an average of 60 days for sellers to find buyers. This is slightly longer than last year, as value-conscious buyers take their time. Well-priced, appealing homes are likely to attract buyer interest quickly, while those that are overpriced or poorly presented may struggle to gain attention.

Mortgages

While the recent decline in mortgage rates is encouraging for buyer confidence, they remain high compared to the 2008-2022 period. Rightmove’s weekly mortgage tracker shows the average 5-year fixed rate at 4.67%, down from a peak of 6.11% in July 2023. But still nearly double the 2.34% seen three years ago before 14 consecutive Bank Rate increases. While some buyers are taking advantage of the current conditions, others may need to wait for further rate reductions and improved affordability. It is always wise to speak to a mortgage broker for guidance and advice.

Uncertainty remains, with attention focused on whether the Bank of England will implement a second consecutive rate cut this week. Looking ahead, the Autumn Statement could impact specific segments of the property market. Rightmove’s data suggests certain areas are already feeling the effects of a potential rise in capital gains tax. As a record number of former rental properties are now listed for sale, indicating more landlords are exiting the market.

Tim Bannister, Rightmove’s Director of Property Science, says:

“Early autumn movers who are acting quickly and taking advantage of the improved market conditions are getting the pick of quality homes for sale. Home-owners who are thinking of coming to market soon shouldn’t let the increased activity make them over-optimistic and must price competitively to sell. With affordability still very stretched for many, choosy buyers are taking their time to browse the increased number of homes for sale and find the perfect home at the right price. There are question marks over how the market will be affected by announcements in the Autumn Statement, but until then we expect that market momentum will continue as the autumn action rolls on.”

Curious about your property’s value?

Find out today with a free online property valuation or call our team on 01634 570057.

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Property management insights: key facts every landlord needs to know

Posted on by Sophie Winter

Managing a rental property can be rewarding, but it’s also time-consuming. On average, landlords spend up to 15 hours per month handling various tasks related to their rental properties. From tenant communication to maintenance coordination, these responsibilities can quickly add up, eating into your valuable time. Now, imagine what you could do with those 15 hours instead—whether it’s focusing on your career, spending quality time with family, or simply enjoying a hobby. The truth is, property management doesn’t have to consume your life.

Legal support and regulations

One of the most challenging aspects of being a landlord is navigating the complex web of legal requirements. Did you know that 1 in 5 landlords accidentally breach regulations? These mistakes can lead to hefty fines and legal complications, turning your investment into a potential liability.

Landlords responsibilities and property laws and regulations are constantly changing, and keeping up with them can be overwhelming. A property manager is always up-to-date with the latest legal developments, ensuring that your investment remains compliant and protected.

Fewer vacancies and higher income

Landlords who partner with professional property management companies typically experience fewer vacancies and higher income. Studies show that professionally managed properties can earn up to 10% more annually compared to those that are self-managed. This increase in income is not just from better tenant retention but also from expert marketing and strategic rent adjustments.

Property maintenance

Maintenance and repairs are another significant concern for landlords. Keeping a property in top shape is crucial, but it can be time-consuming and stressful, especially if you’re not handy yourself. Our property managers handle all maintenance and repairs, so you don’t have to lift a finger. They have a network of trusted contractors who can address issues quickly and efficiently, ensuring your property remains in excellent condition.

Tenant registration

Another major advantage of working with a property management company is our ability to screen tenants effectively. Bad tenants can cause endless headaches, from late payments to property damage. Our professional tenant screening ensures that your property is occupied by reliable, responsible tenants, reducing the risk of these issues.

So, are you ready to enjoy a stress-free landlord life?

Partnering with a professional property management company like CR Real Estate offers peace of mind, reliable income, and expert support. It’s time to take the next step towards maximising your investment while reclaiming your time. Contact us today and experience the benefits of professional property management!

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The challenges of managing rent collection on your own

Posted on by Sophie Winter

Making sure that rent collection payments are on time and paid in full each month is an important task for any landlord managing a rental property. Rental income is the lifeblood of your investment, covering mortgage payments and regular maintenance, and providing a profit margin.

Many landlords face financial strain if rent is missed even briefly, as they may rely on rental income for personal expenses or need to cover mortgage payments themselves. This highlights the importance of:

  1. Conducting thorough referencing and credit checks before accepting a tenant to confirm they can afford the rent.
  2. Monitoring rent collection payments on the due date.
  3. Contacting the tenant immediately if payment is missed to determine the cause and take appropriate steps:
    • Resolve bank issues or forgotten payments promptly.
    • Arrange a payment plan if the tenant has short-term financial difficulties.
    • Consider eviction if the tenant cannot afford the rent or is deliberately not paying.

Challenges for DIY Landlords

DIY landlords often face specific challenges in rent collection:

  • Forgetting to check the rent due date, especially when busy or on holiday.
  • Handling repeated non-payment legally and appropriately to enable potential eviction.
  • Avoiding harassment and knowing legal limits in rent collection.
  • Risking legal claims if tenant rights are violated or the collection process is mishandled.

Benefits of working with professional rent collection services

Working with a property management company like CR Real Estate can alleviate these issues:

  • We ensure timely and full rent payments with established procedures.
  • We will notify and follow up with tenants on late payments.
  • We have expert property managers who effectively communicate and negotiate with tenants, detecting any issues early.
  • We assist in evictions if necessary, ensuring the process is legally sound and efficient.
  • We help end tenancies quickly to bring in new paying tenants.

While most tenants pay rent on time, the odd occasional issue requires immediate attention to avoid financial loss.

How to make sure tenants rental payments are on time

To help tenants make timely payments:

  • Provide your bank details and request tenants set up a standing order for rent.
  • Mark the due date to check payments with your bank.
  • If rent is missed, contact the tenant and confirm the conversation in writing.
  • For short-term affordability issues, consider a written and signed payment plan with the tenant.
  • If persistent non-payment occurs, consider starting the eviction process:
    • Serve a section 8 notice for rent arrears after two months and pursue a possession order if necessary.
    • Alternatively, issue a section 21 notice with two months’ notice, potentially using an accelerated possession order.

After eviction, you may pursue overdue rent, though it might be more practical to focus on finding a new tenant quickly.

Contact us for professional property management

Managing property rentals, especially rent collection, can be challenging. Let our team at CR Real Estate handle it for you. We work hard to ensure timely rent collection payments and hassle-free property management, giving you peace of mind.

Call us today on 01634 570057 and experience stress-free property management.

Looking to rent out a property as a holiday let?

If you want to know more information about holiday lets please contact our local lettings experts on 01634 570057 or book a free online property valuation.

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Everything you need to know about renting your home as a holiday let

Posted on by Sophie Winter

Renting out your home as a holiday let can significantly boost your income. However, it’s important to understand the relevant rules and regulations before diving in. This guide will help you navigate the process of renting out your home as a short-term holiday let, and how having the right agent can simplify it.

What is a holiday let?

A holiday let is a property rented out for short-term stays, ranging from a single night to several weeks. These properties are fully furnished and equipped with all the essentials to ensure a comfortable stay. Holiday lets are often located in popular tourist destinations, cities, or other desirable locations.

How much could you earn from a holiday let?

As a holiday let owner, you can set a nightly rate for your property, adjusting it based on seasonal demand. Researching similar properties in your area can help you determine competitive pricing. Consider offering discounted rates for longer stays and increasing prices during high-demand periods like weekends.

Preparing your home for a holiday let

To stand out in the competitive holiday let market, your property must meet certain standards and requirements. A unique theme or décor can attract more guests. Higher-quality properties tend to perform better, as guests are willing to pay more for a premium experience. Whether it’s a cozy log cabin, a modern city apartment, or a charming seaside cottage, properties with distinct personalities are more appealing to guests.

What are the running costs for a holiday let?

Understanding the costs involved in running a holiday let is essential, especially if you’re new to the market.

  • Mortgage Costs: Factor in monthly repayments if the property is mortgaged.
  • Advertising: Continuous advertising across various platforms is necessary to maintain a steady flow of guests.
  • Cleaning: Each turnover requires a thorough cleaning, which means ongoing expenses for cleaning services.
  • Maintenance: Regular maintenance and repairs are needed due to higher wear and tear from frequent guests.
  • Utilities: Gas, electricity, water, and Wi-Fi are ongoing expenses.
  • Insurance: Building and content insurance are required, along with additional coverage for emergencies, accidental damage, and legal issues.
  • Property Management Fees: Working with a letting agent can provide a hands-off approach, managing the property for a fee.

Rules and regulations for holiday lets

Running a holiday let requires adhering to various legal and non-legal requirements. If you have a mortgage, check with your lender or a mortgage broker to ensure short-term rentals are permitted. As a landlord, you are responsible for maintaining the property and ensuring it meets safety standards.

Legal requirements include:

  • Fully furnishing the property
  • Renting it out for at least 105 days per year
  • Performing fire risk assessments and installing necessary fire safety equipment
  • Installing smoke and carbon monoxide alarms
  • Obtaining a gas safety certificate

Non-legal requirements include:

  • PAT testing for electrical appliances
  • Obtaining an electrical safety certificate
  • Conducting hazard assessments for pools and hot tubs

As a local letting agent, we can handle these requirements for you, reducing stress and ensuring compliance.

The importance of managing a holiday let

Managing a holiday let can be time-consuming, depending on its popularity. High-quality customer service is essential for repeat business and positive reviews, which boost the property’s appeal. An external management service can handle guest queries, maintenance, and other tasks, allowing you to focus on providing the property and enjoying the profits.

Looking to rent out a property as a holiday let?

If you want to know more information about holiday lets please contact our local lettings experts on 01634 570057 or book a free online property valuation.

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The advantages of renting out your property as an HMO

Posted on by Sophie Winter

Most landlords rent out their properties as a whole, but leasing your rental property as a House in Multiple Occupation (HMO) provides an alternative approach.

An HMO is a property rented to multiple households who share common facilities. A household can consist of an individual or members of the same family, which includes:

  • Married or cohabiting partners
  • Relatives or half-relatives
  • Step-parents and step-children

An HMO is considered small if it has at least three tenants from more than one household and large if it has at least five tenants from more than one household.

In an HMO, each household rents individual bedrooms and shares communal areas such as the kitchen or bathroom. Despite increasing rental demand, the number of HMOs in the UK has declined in recent years, making it an opportune time to invest.

So, what are the advantages of renting your property as an HMO?

Increased rental yield

Entering into multiple tenancy agreements with different households can result in a higher rental yield compared to renting out a property to a single household. Additionally, you can adjust the rental rates for different rooms to further increase your rental yield. For example, a master bedroom with an en suite can be rented for more than the smallest bedroom in the same property.

Strong demand in popular areas

HMOs offer a new rental option for young professionals and students seeking accommodation without the need for a long-term commitment. They provide tenants with a more affordable and flexible solution in popular areas.

Traditionally, individuals looking to rent would need to find roommates to afford an entire property, which can be challenging when relocating to a new city for work or education. In recent years, there has been a significant shortage of student accommodation in the UK. Consequently, HMOs have become increasingly popular in university cities to address this shortfall.

Converting an existing rental property into a HMO

Converting your existing rental property into an HMO requires time, effort, and careful attention to detail to ensure it meets HMO standards.

There are minimum room size requirements based on the number of occupants sharing each bedroom. Your property must also comply with safety regulations, such as installing fire doors.

You will need an HMO license if your property has at least four tenants forming two or more households. Some local councils require an HMO license for smaller properties as well, so you should contact your local council for more information.

Reduced void periods

A void period is the time between tenancies when your rental property is unoccupied. As a landlord, you will want to avoid extended void periods, as they can diminish your rental income, especially if you rely on rent to pay your mortgage.

Renting your property as an HMO can help minimise the duration and impact of void periods. Since an HMO is rented out by individual bedrooms rather than the entire property, it is less likely that the property will be completely empty at any given time. Additionally, you can include a clause in your tenancy agreement requiring the remaining tenants to cover the rent shortfall if one or more bedrooms become vacant.

How can we help you?

Interested in discovering the potential rental income of your property as an HMO? Book a complimentary rental valuation to explore your options with our knowledgeable team today by calling 01634 570057 or booking online.

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Landlords: why going fully managed could help you

Posted on by Sophie Winter

We recognise that handling a property can become both time-consuming and costly. That’s why we suggest entrusting your property to a professional agent with a fully managed service.

Whether you’re a new landlord or a seasoned property investor of one week or ten years, there’s one thing we can all agree on: managing your property can be challenging. When renting out a property, the need to be accessible to tenants becomes priority. Many landlords and property investors find it challenging to manage multiple properties on their own, especially during busy seasons and holidays, which only adds pressure to these responsibilities.

How can we help you?

This is where a reliable letting agent can play a vital role. Our skilled experts at CR Real Estate can assist in saving you time by overseeing your rental property, handling financial paperwork, and dealing with tenant management.

We understand the significance of time, particularly during busy periods. Our lettings team are here to assist with tenant enquiries, maintenance issues, and much more with our fully managed service. Our expertise will allow you to enjoy holidays and day-to-day living without interruptions from tenants and issues. We offer regular check-ins on your property to ensure it stays well-maintained, which reduces the chances of unexpected expenses that might add extra stress.

From a financial standpoint, the benefits of opting for a fully managed property agent are clear. We can guide you through the complex landscape of property management and enhance your investment for optimal returns. By efficiently managing tasks such as rent collection and property inspections, we ensure your investment is optimised.

Compliancy made simple

The legal responsibilities facing landlords today have significantly increased compared to just a few years ago. Ensuring you’re well-versed in these matters is crucial to avoid hefty fines that could transform your buy-to-let aspirations into a nightmare.

Legislation is notorious for its constant changes, making it challenging to stay updated on all the details. Having a team of experts by your side is invaluable in today’s dynamic environment. As a reputable letting agent we stay informed about any regulatory changes impacting your property investment and present your options in a clear and understandable manner.

Finding tenants isn’t as easy as it once was

There have been significant changes in the rental market, including shifts in tenant expectations. While the demand for quality homes remains high in many areas, tenants are no longer willing to settle for subpar properties or inadequate landlord services. With rental costs consuming a considerable portion of people’s incomes, it’s understandable that they expect nothing less than what they deserve.

Additionally, the challenges in the property buying market have contributed to a ripple effect in the rental sector. Tenancy durations are extending, with many lasting four years or more nowadays. This increased commitment from tenants emphasises the importance of professionalism in attracting the best renters.

Opting for full management services ensures representation by a trusted name that tenants can rely on. This instills confidence in potential renters and significantly improves the chances of finding the right tenant for your property. Additionally, with experienced valuers and negotiators working on your behalf, you stand to secure the best rental price—a clear win-win situation.

Want to discuss your rental property and becoming fully managed?

Don’t hesitate any longer! Give yourself the luxury of time, savings, and a stress-free 2024 — all made achievable through the expert care of our property management agents!

Got a property or portfolio you’d like managed in Medway or any of the surrounding areas in Kent? We’re here to help! Simply get in touch with our dedicated lettings team to find out more about how we can help you become more hands-off with your investment.

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5 reasons to use a buy-to-let mortgage broker

Posted on by Sophie Winter

When you need a new buy-to-let mortgage, of course you can go directly to a lender yourself. But if you do, you might not be getting the right deal over the lifetime of your investment, so is it sensible?

There are five very good reasons why you should speak to a mortgage broker for the financing of your buy-to-let property. Each of which can really benefit you and the profitability of your property investment:

Expert knowledge

If you’re not a mortgage broker, it’s highly unlikely that you’ll know of every aspect when applying for, and progressing, a mortgage. This could lead to you wasting a lot of time and effort trying to work your way through your options, only to end up with a deal that a broker could easily better.

More importantly, there’s a possibility that you might not provide all the necessary information to the lender in the correct way. You may also unwittingly leave out things that are critical to securing the right mortgage.

Lenders typically have varied criteria and regulations based on how you intend to let the property. Specialised mortgages are necessary for properties like HMOs. Also if you intend to let to tenants on benefits, you’re likely to be restricted in your choice of financing.

Access to a wide range of mortgage deals

A mortgage broker will have access to a vast range of products available in the market. They will work to effectively source the most suitable one for your specific circumstances.

Speed on limited-time deals

Certain deals are only available for a very limited time. Often only those with a buy-to-let specialist broker may have the opportunity to secure them. In these cases, it’s essential to work with someone who is experienced and knows exactly what to do and when, so that the administration is done correctly from the outset.

Working with underwriters

If you work with an experienced mortgage broker who has been handling buy-to-let cases for a number of years, they will have created relationships with underwriters and other key people who can help progress your application as quickly as possible.

They’ll be able to get answers to your questions quickly, and a well-connected broker can be the determining factor in successfully obtaining the necessary financing as opposed to a deal falling through.

Regular reviews

A qualified mortgage broker will keep up-to-date with all the latest regulations and new deals. They will also let you know about the optimal times to consider switching your mortgage. Many brokers are also happy to work with your financial adviser to help ensure your investment keeps delivering the best returns.

Looking for a buy-to-let mortgage broker?

At CR Real Estate, we work with a local Kent broker who are buy-to-let specialists. Their friendly team are always happy to speak to landlords about their mortgage borrowing. If you’d like a review of your portfolio, or have any other questions, please get in contact with The Residential Mortgage Hub.

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Important information

There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage. Your property may be repossessed if you do not keep up repayments on your mortgage. There may be a fee for mortgage advice. The actual amount will depend upon your circumstances. The fee is up to 1% but a typical fee is £598.

Our top tips to finding new tenants quickly

Posted on by Sophie Winter

The surge in rental home demand has created an unprecedented situation where every home listed on the market experiences high demand. Consequently, landlords are faced with an elevated volume of rental applications to sift through in order to choose a suitable tenant. In this blog post, we will explore five effective strategies that landlords can use to speed up the tenant selection process. These tips will help increase the chances of finding the perfect tenant, and reduce the time and effort needed to do so.

Detailed property listings

Creating thorough property listings is one of the most important aspects when renting out your property. Dedicate some time to investigate the frequently asked questions about similar rental properties in Kent, and incorporate the responses into your property description. By proactively providing all the information upfront, including details like the number of bedrooms, available amenities, and proximity to local transportation options; you can assist potential tenants in assessing whether the property aligns with their requirements even before they express interest. This approach ensures that prospective tenants come prepared for viewings, saving valuable time for both parties involved.

Pre-qualify potential tenants

You can simplify the tenant selection process by pre-screening applicants. Prior to arranging viewings, request potential tenants to complete a pre-qualification form. This enables you to assess their eligibility for the property and understand their readiness to undergo reference checks.

This method reduces the risk of investing time in applicants who may not meet your criteria and allows you to focus your attention on those who have a genuine interest and a higher likelihood of successfully passing the reference checks.

Organise block viewings

Conducting separate viewings for every applicant can become a time-consuming and less efficient process, particularly when a property generates high interest. Instead, consider organising group viewings, wherein multiple prospective tenants are shown around the property in intervals of 10-15 minutes. This approach not only saves time for everyone but also creates a competitive atmosphere among applicants. Therefore encouraging them to make quicker decisions and submit their applications promptly.

Confirming attendance

Focus your efforts on confirmed viewings to reduce the likelihood of no-shows and to optimise your time. Prior to the scheduled viewing, send a reminder to the applicants and request their confirmation of attendance. By taking this approach, you can diminish the chances of last-minute cancellations and ensure that you are making the most efficient use of your time during each viewing.

Prepare your tenants for check-in

After you’ve narrowed down your pool of prospective tenants, assist your selected applicants in preparing for the next phase of the rental process by offering them detailed guidance, such as a step-by-step guide. This will help them grasp the requirements for a seamless check-in. This proactive approach not only minimises the need for extensive back-and-forth communication, but also demonstrates your dedication to delivering a positive rental experience.

Want to discuss your property?

We understand that as a landlord the surge in tenant demand can present opportunities and potential difficulties. If you’re feeling daunted by the prospect of securing a new tenant or if you’re interested in learning more about our comprehensive property management solutions in Kent, don’t hesitate to reach out to us by calling 01634 570057 or submit an online enquiry to our lettings experts.

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Opportunity for Landlords with rising rental yields

Posted on by Sophie Winter

According to research, UK rental yields have experienced a slight increase in the past year, despite the housing market’s volatile nature. The research analysed house prices, rent values, and yields in June 2022 and June 2023 to understand the impact of the economic environment on buy-to-let investment returns.

What are the average rental yields in the UK?

Despite the challenging period in the UK with rising mortgage rates, there is an opportunity for proactive investors due to lower house prices and increasing rent values. The latest data shows that the average yield in the UK currently stands at 5.2%, marking a 0.4% increase compared to the previous year.

Among the regions, Scotland offers the strongest yields at 5.9%, making it an attractive place for investment. Other regional hotspots include Northern Ireland (5.7%), the North West (5.5%), Yorkshire & Humber (4.9%), and London (4.7%). Scotland also leads in terms of annual yield increases, showing a rise of 0.64%. Several other regions are performing well in terms of yield growth, with London at 0.49%, Wales at 0.35%, the West Midlands at 0.34%, the North West at 0.34%, and Yorkshire & Humber at 0.34%.

The battle for a place to rent

Data commissioned by the BBC reveals that competition among renters has intensified significantly, with 20 requests to view each available property. The average number of requests to see a home has more than tripled from six in 2019, according to figures from property portal Rightmove.

Additional research shows that tenants are reportedly making offers higher than the asking rent or even arriving earlier to secure a spot at the front of the queue. From our experience we are seeing that properties are getting rented out after the initial block of viewings due to the exceptionally high demand.

Lettings Manager, Sue Barnes suggests that the market presents opportunities for investors willing to take calculated risks, and the current UK environment exemplifies this. Despite economic struggles and concerns over rising mortgage rates, buy-to-let landlords with the means to handle current mortgage deals should consider seizing opportunities when suitable properties come to market in favourable locations. She emphasises that investors should take advantage of these moments when others may be hesitant.

Looking to invest?

We have a broad selection of ideal buy-to-let investment properties available, contact our expert team today to discuss this opportunity and how we can help you.

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