FINDING THE RIGHT INVESTMENT PROPERTY

Buying a residential property for rental purposes is not normally a short term investment, however over the mid to long term can be a very sound investment giving a combination of rental income as well as capital growth as the value of the property improves over the term of the investment.

INCOME OR CAPITAL GROWTH

Before rushing off to buy an investment property it is important to first consider what it is you want to achieve. It’s easy to buy a property, however, just because it’s cheap does not mean it will automatically make a good investment. The price you pay for a property is obviously a very important consideration but there are many more; the location, size, condition for instance. Thought should also be given to the sort of tenant market you wish to enter, for example, the student market, DSS tenants or professionals. What ever your ambition, or your experience to date, it is important to seek good professional advice. Reece Lloyd Craig Residential Lettings have many years experience in all areas of the property market and are ideally placed to help landlords find the right property.

FURNISHED OR UNFURNISHED

A Fully Furnished property is a property that is ready for immediate occupation complete with furniture, linen, all kitchen appliances and utensils. An unfurnished property should be supplied with carpets curtains. Whether or not to supply your property furnished or unfurnished will depend to a large extent to which part of the market you wish to appeal. For example, if you have a small house or flat which will appeal to the young professional market, it will probably let better furnished. With regard to rental income, furnished or unfurnished doesn’t always make that much difference to the rent achieved. You must also consider in the case of furnished properties that if for example the washing machine breaks down and needs to be replaced the landlord is responsible for replacing it.

OTHER CONSIDERATION

If you can, buy freehold property. If you must buy a leasehold property make sure your lease allows subletting. Also find out if any fees would be payable to the head leaseholder upon each sublease. If you are considering buying a flat or apartment which is part of a larger building consideration should also be given to any service charges that may apply.

FINDING THE RIGHT TENANT

Whilst for every landlord getting a good rent is very important. We would suggest that having the right tenant is also of at least equal importance. There is often pressure from landlords to install a tenant as quickly as possible however many years of experience have taught us that it is often worth taking time to find the right tenant. This is often the key to avoiding many of the problems associated with property management.

DEPOSIT PROTECTION AND YOU

We would always suggest it prudent to collect from the ingoing tenant a deposit at least equal to one months rent, such deposit to be held in an approved deposit protection scheme until the end of the tenancy as protection against damages. This cannot be used to offset unpaid rent and there are heavy penalties if the deposit protection legislation is not adhered to.
The Housing Act 2004 came into effect in April 2007. With effect from the 6th April 2007 `Damage Deposits' or `Bonds' must be protected by a government approved scheme. Failure to comply with this legislation may have serious consequences; Courts have the power to fine Landlords and can also prevent Landlords from serving notice to vacate upon the Tenants. This legislation has been introduced in order to protect both Landlords and Tenants from the disputes which can arise regarding damage to a property or its contents during a Tenancy. Should a dispute arise an independent arbitrator may be appointed to resolve the dispute.

THE INVENTORY

Since the Introduction of the Tenancy Deposit Protection scheme, the provision of an objective inventory or schedule of condition has become more important than ever before. Tenancy law experts have said that an inventory is as important a document as the Tenancy Agreement itself. An Inventory and schedule of condition should be completed at the start of the Tenancy. This is the only means of proving the condition of a property at the time a Tenancy commenced. Without such a document, under the terms of the Tenancy Deposit Protection Scheme, should a dispute arise, it will be very difficult for a Landlord to prove a claim for damages against the Tenant. An Inventory and Schedule of condition should, ideally, be completed by a third party as it is often difficult for an owner or occupier of a property to be objective. As an experienced letting agent Reece Lloyd Craig can provide a detailed Inventory and Schedule of Condition which is signed by the Tenant at the beginning of the Tenancy and can then be relied upon when assessing the condition of the property at the end of the Tenancy.

FULLY MANAGED OR TENANT FIND

There are many factors to consider when deciding whether or not to manage your own rental properties. The geographical location of the property, your other commitments, all the legislation to be dealt with, dealing with repairs, problems, rent arrears and so on.

OUR FULLY MANAGED SERVICE PROVIDES:

• Marketing, advertising and conducting viewings at the property if required
• Tenant selection, introduction and referencing
• Preparation of the Tenancy Agreement
• Preparation of the Inventory and schedule of condition
• Transfer of rental income
• Arranging routine repairs and maintenance
• Regular property visits and reports
• Notifying utilities at the beginning and end of tenancy
• Optional Rent Protection
• Free legal protection up to the point of court proceedings

OUR TENANT FIND ONLY SERVICE PROVIDES:

• Marketing, advertising and conducting viewings at the property if required
• Tenant selection, introduction and referencing
• Preparation of the Tenancy Agreement
• Collection of first months rent and deposit

As a managing agent with a large portfolio of properties, we are able to provide a professional service and we now find that, more and more tenants have a preference towards managed properties, feeling more secure that they will be dealing with a reputable company and will have an easily accessible point of contact.
As a Landlord or property investor, if you have a good Tenant it is worth looking after them, having there tenancy professionally managed. Further more, with the benefit of professional management, you can rest easy knowing your property is being looked after, your tenant is happy and you as a Landlord are complying with all the regulations and legislation that you need to.

WHY REECE LLOYD CRAIG?

Reece Lloyd Craig have a wealth of experience in all areas of the property market. With Professional staff, a wide range of services, high profile offices and extensive marketing and advertising Reece Lloyd Craig are ideally placed to offer the property solution you are looking for.