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Survey Finds 30% of Tenants Quit Rental Properties Due To Poor Standards

Survey Finds 30% of Tenants Quit Rental Properties Due To Poor Standards

Landlords Need To Take Note Of Survey Findings
To Attract And Keep Good Tenants

One in three current PRS tenants have quit properties and ended tenancies within the UK private rental sector due to lack of repairs by landlords and the overall poor condition of rental properties in general.

These shocking tenant revelations are from a survey carried out on behalf of the National Landlords Association (NLA) by shower manufacturer Methven, last month.

The survey of PRS tenants discovered that poor quality fixtures and fittings in rental properties are a major cause of grievances and less than 10% of tenants who took part in the survey were completely happy with the condition of the property they were currently renting.

Over 60% of private rented sector tenants who took part in the survey said the standard of bathroom fixtures in rental properties is below average with 16% reporting that standards were poor. A further 53% claimed a good shower is an essential feature of a good rental property, which is good news for the shower manufacturers conducting the survey.

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Smaller Buy-To-Let Properties Provide The Best Rental Yields

Smaller Buy-To-Let Properties Provide The Best Rental Yields

Smaller Buy-To-Let Properties Provide

 The Best Rental Yields

A one-bedroomed rental property in Wales may not sound like the most glamourous of property investments but it could deliver the best rental returns for landlords according to a new in-depth buy-to-let report by the UK’s largest lettings agency Countrywide.

A survey of more than 50,000 Private rented sector property owners has revealed Buy-to-let landlords are getting excellent rental yields in Wales, the North of England and the Midlands from 1 and 2 bedroom rental properties.

Landlords in many parts of Wales are achieving an average 6.7% rental yield (rent measured as a percentage of the property price), beating the North of England and the Midlands, which both average a 6.5% rental yield.

These figures are substantially higher than the average 4.6% rental yield observed in parts of Central London, regarded as the red hot heart of the UK’s property market.

One and two-bedroom rental properties have seen the greatest increase in average monthly rental prices in April 2013, with a 1.4% and 1.3% month-on-month increase to £679 (GBP) and £766 (GBP), respectively.

The detailed report into buy-to-let rental returns was conducted by Countrywide, who found that average monthly rental prices in England, Scotland and Wales have continued to increase for six consecutive months to reach an average of £842 (GBP) in April 2013.

But rent increases remain below the increased cost of living, with an annual average increase of just 0.8% measured against Consumer Price Index inflation of 2.8%.

However, average monthly rents have fallen within Central London, the South East, Wales and parts of Greater London.

The biggest rental price drop of 6.3% was seen in Central London, where average monthly PRS rental prices average £2,371 (GBP), more than double the £1,106 (GBP) recorded in parts of Greater London.

Rental returns by location

 

Rental returns by location - Source: Countrywide

Rental returns by location – Source: Countrywide

 

Nick Dunning, from Countrywide, said: “With renting for longer now the norm for many people as they save for a deposit to buy their first home, we are seeing more young families looking to rent cheaper accommodation, hence the increase in demand for smaller rental properties. While prime Central London has seen the greatest fall at 6.3%, this is simply reflecting the fact that in April stock levels in prime Central London were very high compared to last year which benefited from the Olympics. As a result this April, tenants tended to view multiple properties putting in lower offers, which some landlords accepted. However, as demand picks up into the summer, and supply and demand becomes more balanced, the same property could easily rent for more in August than in April.”

Returns by property type

 

Rental returns by property type - Source: Countrywide

Rental returns by property type – Source: Countrywide

 

Source: Countrywide

There are a number of factors that should be considered before a property investor decides to purchase an investment property.

Decide an investment and exit strategy before taking the Property Plunge

Decide an investment and exit strategy before taking the Property Plunge

Deciding on an investment property requires a little know how, market understanding, patience and thorough due diligence before deciding to part with any investment cash.

Owning property (real estate) has always been a great investment. However, choosing the right kind of property to invest in might prove to be a little more difficult.

Do check out for the following instructions before choosing an investment property.

Get Educated

It is always advisable to decide on an investment strategy before starting out in property and many investors often forget to plan an exit strategy in order to maximise their returns from investment. Research successful strategies used by successful Multi Millionaire investors, who are happy to teach them in order to get the best results.

Property investors should do as much investigative groundwork before deciding to buy property for the purposes of investment, crunch the numbers and ensure that the returns are worth it and will fit in with your business model.

This will not only help investors opt for the best deal that suits their long or short term investment strategy, it will also pay dividends in the future

Location

Choosing a location is probably the most important factor that property investors should consider. Try and look for available properties in prime locations, eg. Within 1 mile of a train station or city centre.

This enables investors to realise the rental potential of the property to its fullest. Opt for a locality that has current strong tenant demand or offers potential for extensive growth in the future.

Avoid buying cheap property

Avoid buying property that appears comparatively cheaper than its surroundings, Find out the current property values and open market prices before making any offer. Thorough research works, consult friends and business owners in the area, and approach at least two or three estate agents or property dealers. Do a comparative study based on your research and then finalise an offer on the investment property that is best suited for your budget.

Choosing An Investment Property

At a time when almost all kinds of information are just a click away from the mouse, make use of it. Start by searching online and get a fair idea about locations, types of available properties and property values.

Register yourself with several estate agents. Another way of choosing an investment property is attending auctions to get a sense of the property market and standard of available property suitable for the private rented sector.

Appoint A Knowledgable Agent

Choosing a good estate agent can help you choose the right kind of property meant for investment purposes. Look for an agent who has good reputation in the market and is well aware of investment properties and who offers investors a decent service.

Arrange Finance

Getting a mortgage or financial help for investment property can be tough going for many investors.

Buy-To-Let Mortgage loans can be applied for by solvent property investors with a regular income who can provide lenders with all the information that they require.

There are a wealth of suitable mortgage brokers that can be contacted by clicking here

Determine The Risk

Determine Risk

Determine Risk

Determining the risk profile associated with the property investment is important. Investors preferring low risk and low returns are advised to stick to stable, high employment areas which have an established rental market within the UK property market.

Invest In Areas You Know

Knowledge is Power! Spend some time researching and visiting the areas where you are planning to invest. Don’t rely solely on the agents.

Visit localities yourself and inspect the property and the surrounding neighbourhood as well. If you think that the neighbourhood is going to witness a growth in the near future, then investing in a property there will yield good results.

Walk around the area and check out aspects like local schools, commuter links industrial or commercial growth and transportation.

Appoint A Trusted Property Management Company

Seeking the services of a trusted property management company is probably the best option as they will give proper guidance about how to choose a decent investment property.

They should be familiar with the chosen area and all aspects of the rental and property sales market within their operational boundaries.

A property management company can help you get the best returns from available investment property in the local market.

Property Investors are urged to consider all of the above mentioned factors carefully before taking action to purchase investment property in the UK.

There Will Never Be A Better Time To Invest In Property

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