Oops! We've let all the properties we had to let in Abingdon, Oxford and Kidlington. Lots of happy tenants and happy landlords but who else wants to take advantage of our fantastic service?
If you are tired of your agent charging you a percentage of your rent and adding fees for renewing a tenancy to the same tenant they moved into your property six months ago, perhaps it's time you looked at BlueDoor.
Showing posts with label advice. Show all posts
Showing posts with label advice. Show all posts
Monday, May 07, 2012
Friday, April 27, 2012
April News
We are still here!
BlueDoor is still giving good advice, charging fair fees, meeting our customers' needs and loving life in general.
Our tips for this month are these:
If you are thinking about re-vamping your rental kitchen have a look at Dream Doors
Keep your tenants happy by keeping your rent the same or increasing it by £5 per month at most. Being kind to tenants means no voids and no re-let fees.
If you are looking for a Buy-to-Let investment our advice is the same as ever. You should only look at one or two bed properties and avoid new build flats with huge management charges that will add at least £1000 to your costs per year. Landlords new to property investment or looking to expand their portfolio would do well to do a bit of reading about the best ways to do this to save tax and we have a stack of books in the office you can borrow to give you an idea of how you can manage your portfolio. Just give us a ring and we'll have a chat then point you in the right direction.
Thursday, July 07, 2011
No double beds in HMOs
Lots of sharers looking at our bigger houses ask us why there are no double beds in the bedrooms. This is why!
HMO regulations specify how many people can safely live in one house. If you have five double beds in a house with five bedrooms you could end up with an Iggle Piggle and an Upsy Daisy in each bed, making ten occupants and therefore breaking the HMO regulations.
Thursday, June 16, 2011
Mmmmm Tax from propertytalklive.co.uk
Landlords are being urged to ensure they are fully tax efficient after research shows many are failing to claim for the full range of tax allowances.
Buy-to-let mortgage specialist Paragon said landlords could offset many of the costs incurred through letting property against their income, but many were unaware of the full range of costs they could claim.
For example, Paragon's research shows that more than one in 10 landlords (13%) are not claiming for mortgage interest, despite it being a major cost for landlords.
Meanwhile, a third of landlords don't claim management or letting agent fees, with 55% of landlords not claiming for advertising costs incurred in letting their property.
Paragon's Tax Guide (prepared in association with Perrys Chartered Accountants), which can be downloaded from www.paragon-mortgages.co.uk/, helps landlords from purchase through to sale and provides comprehensive information on income tax, limited companies and Capital Gains Tax, in addition to the list of tax reliefs available to landlords and top tax tips.
Nigel Terrington, Paragon Group Chief Executive, said: "Good tax planning is key. How landlords implement, manage and run their tax affairs could have a major impact on landlords' property investments and their overall performance.
"Tax is a complex area and we are confident that our Tax Guide will help landlords obtain a better grasp of tax matters. It's vital that landlords take advantage of the allowances open to them to maximise their return on investment."
He added: "I'm sure when landlords take all of these costs into consideration it could generate a significant saving on their tax bill."
Buy-to-let mortgage specialist Paragon said landlords could offset many of the costs incurred through letting property against their income, but many were unaware of the full range of costs they could claim.
For example, Paragon's research shows that more than one in 10 landlords (13%) are not claiming for mortgage interest, despite it being a major cost for landlords.
Meanwhile, a third of landlords don't claim management or letting agent fees, with 55% of landlords not claiming for advertising costs incurred in letting their property.
Paragon's Tax Guide (prepared in association with Perrys Chartered Accountants), which can be downloaded from www.paragon-mortgages.co.uk/, helps landlords from purchase through to sale and provides comprehensive information on income tax, limited companies and Capital Gains Tax, in addition to the list of tax reliefs available to landlords and top tax tips.
Nigel Terrington, Paragon Group Chief Executive, said: "Good tax planning is key. How landlords implement, manage and run their tax affairs could have a major impact on landlords' property investments and their overall performance.
"Tax is a complex area and we are confident that our Tax Guide will help landlords obtain a better grasp of tax matters. It's vital that landlords take advantage of the allowances open to them to maximise their return on investment."
He added: "I'm sure when landlords take all of these costs into consideration it could generate a significant saving on their tax bill."
Thursday, May 26, 2011
Set up a limited company for my buy to lets?
The UK has become a nation of landlords! Before the economic downturn began, low inflation, stock market volatility, uncertainty over pensions, dramatic house price rises and less risky housing laws had combined with the success of buy to let to allow people to invest in property on a scale never seen before in the UK. Many of these investors need to seriously consider the benefits of holding property in a limited company, or if that is not possible, putting the assets into a property management company.
There are numerous ways to reduce tax by setting up a limited company for a property portfolio. Corporation tax rates are simply much lower than personal tax rates. Rental profits can be taxed at rates as low as 0%.
Higher rate tax payers in particular benefit enormously. If you set up a limited company for your properties, the first and most immediate benefit is that the first ten thousand pounds of profit is tax free because the corporation tax band is nil up to £10,000. For example, there would be no tax to pay on, say £9,000 profit, whereas the Inland Revenue would demand £3,600 in tax from a sole trader who pays higher rate tax.
After the first £10,000 of profit corporation rates rise to 19% on the first £300,000 of profit. Above that there is a sliding scale to a maximum of 30%. Without the protection of a limited company there would be 40% tax to pay on all profit and gains.
Another attraction of limited company status is that ownership can be transferred without incurring an immediate capital gains tax liability. If the property is inside a limited company a family member, for example, can subscribe some shares and ownership can pass to that family member tax free, as the value of the transfer can be held over for capital gains purposes.
A limited company can also pay out profits in the form of dividends, which do not attract National Insurance contributions at present. Although there is extra tax to pay if you extract dividends, a company can be an extremely powerful tax shelter if you can afford to keep reinvesting profits for many years.
Of course you need to consider the difficulties of extracting funds from the company. The company is a separate legal entity. It pays its own tax on profits and gains, can be sued for its debts and is the legal owner of the money it makes. If the shareholders want to take money out, there will be a tax charge. Wages, salaries and bonuses are the most expensive way to get money out of a company, but even so there can be a very significant tax saving and accumulation effect by using a limited company and this can, over time, lead to a fair difference in the size of portfolio held.
Apart from the tax issues there is also the valuable attraction of limited liability. For example if a tenant trips over a faulty rug supplied by you and decides to sue, your personal assets are outside the company and are protected.
Landlords and property investors can also form UK Limited Liability Partnerships for UK property transactions. An LLP is a body corporate with limited liability and legal personality. It is therefore a legally a type of limited company (but without a conventional share capital) which can function like a partnership in practice and which is deemed to be transparent for UK tax purposes, with the members of the LLP being treated as if they were partners in a partnership (which strictly they are not).
The advantages outlined above need to be weighed against those of being a sole trader. Sole traders purchase property as an individual in the hope of obtaining the capital gains benefits, but face a higher rate of income tax on net rental income, which can make capital repayment of borrowings seem expensive.
property management companies
Where it is not possible (or desirable) to hold properties within a limited company, the use of a property management company can also save vast amounts of tax. Property investors can consider a relatively new type of company, a right to manage (RTM), which is often now used in place of a Flat Management company. The RTM represents the interest of owners of dwellings that share common areas or rights, typically flats, to participate in the running of the common areas or exercising their rights of access.
Unlike a Flat Management Company there are no shareholders, but instead rights of membership are conferred on the parties concerned. The flat owners may force the managers of the building to accept the setting up of such companies. The Commonhold & Leasehold Reform Act 2002 came into effect three years ago and provides a right to leaseholders in flats to force a transfer of the landlord’s management functions to a company of their own – an RTM. Landlord consent is not required as long as relevant criteria are met. The right is exercised by serving a formal written notice upon the Landlord who may, after the appropriate periods of time have elapsed, become a member of the new company themselves once the right to manage has been acquired. Specialist advice should be sought if there is a dispute. The following criteria must be satisfied:
* The building must be self- contained ( or if part of another building , be capable of being redeveloped independently)
* It must include at least two flats
* At least two-thirds of the flats must be let to ‘qualifying tenants’ (i.e a leaseholder whose lease was originally granted for an original term of more than 21 years). There is no requirement for any past or present residence in the flats, or any limit on the number of flats which can be owned by one person.
* It can be part-commercial but the non-residential part must not exceed 25% of the total floor area
* The right to manage may only be exercised by a RTM company and the members of the RTM company must comprise a sufficient number of qualifying tenants. (The required minimum number of qualifying tenants must be equal to at least half the total number of flats in the building)
* The right relates to a building, so in an estate of separate blocks, each block would need to qualify separately and an individual RTM served.
Once formed, the company must formally invite any leaseholders that did not participate in the formation of the company to become members. The company itself must be limited by guarantee and not have a share capital and its Memorandum & Articles of Association must follow a specified form laid down by legislation. These companies are normally set up on the advice or under the guidance of a solicitor familiar with property law. Formation agents like Duport can form such companies quickly and easily.
flat management company
Developers in particular often turn to flat management companies, especially if they own blocks of flats where an arrangement needs to be made to deal with the running, maintenance and repair of the common parts of the building. The leaseholders of the flats are the members of the company. They may appoint a management agent to carry out the day to day work, or one may be specified in the leases with the freeholder. A flat management company is normally incorporated to manage a property or group of properties where there are multiple tenants. It is normally used to protect the interests of the leaseholders.
A Flat Management company has its Memorandum and Articles of Association specially drawn up to allow the company to own, manage and administer a leasehold or freehold property, which is normally divided into several dwellings units or flats, with each leaseholder owning a share in the company. The leaseholder will be obliged to transfer the ownership of the share to the new leaseholder when disposing of the property.
Flat management formation packages are often a solution for developers. The company can be tailored to the client’s specific requirements - for example with enough copies of Memorandum and Articles of Association for each leaseholder. Developers can choose between a company limited by shares or limited by guarantee. Either of these forms of incorporation provides limited liability for its members. Each company can also collect maintenance charges and any ground rents, arrange security, decoration, insurance etc.
The company limited by guarantee intends to provide a form of incorporation with limited liability suitable for a group of members with a mutual interest of a not-for-profit nature. The main advantage of using a guarantee company rather than a company limited by shares is that no stamped transfer is needed on changes of members (on sale of the related lease). The articles can simply provide for the membership of the outgoing lessee to terminate automatically when they cease to hold the lease, without the need for signatures.
Whatever the size or complexity of a property portfolio, limited company status deserves serious consideration. For top rate tax payers, especially those who want to reinvest some profits to grow the business rather than taking them all for personal use, the use of a limited company is probably a very wise move. The 19% rate of corporation tax is a real advantage in such cases and will make a difference to the bottom line. However, there are numerous issues to consider and because each business is unique it is important to speak to a qualified accountant and get specific advice.
There are numerous ways to reduce tax by setting up a limited company for a property portfolio. Corporation tax rates are simply much lower than personal tax rates. Rental profits can be taxed at rates as low as 0%.
Higher rate tax payers in particular benefit enormously. If you set up a limited company for your properties, the first and most immediate benefit is that the first ten thousand pounds of profit is tax free because the corporation tax band is nil up to £10,000. For example, there would be no tax to pay on, say £9,000 profit, whereas the Inland Revenue would demand £3,600 in tax from a sole trader who pays higher rate tax.
After the first £10,000 of profit corporation rates rise to 19% on the first £300,000 of profit. Above that there is a sliding scale to a maximum of 30%. Without the protection of a limited company there would be 40% tax to pay on all profit and gains.
Another attraction of limited company status is that ownership can be transferred without incurring an immediate capital gains tax liability. If the property is inside a limited company a family member, for example, can subscribe some shares and ownership can pass to that family member tax free, as the value of the transfer can be held over for capital gains purposes.
A limited company can also pay out profits in the form of dividends, which do not attract National Insurance contributions at present. Although there is extra tax to pay if you extract dividends, a company can be an extremely powerful tax shelter if you can afford to keep reinvesting profits for many years.
Of course you need to consider the difficulties of extracting funds from the company. The company is a separate legal entity. It pays its own tax on profits and gains, can be sued for its debts and is the legal owner of the money it makes. If the shareholders want to take money out, there will be a tax charge. Wages, salaries and bonuses are the most expensive way to get money out of a company, but even so there can be a very significant tax saving and accumulation effect by using a limited company and this can, over time, lead to a fair difference in the size of portfolio held.
Apart from the tax issues there is also the valuable attraction of limited liability. For example if a tenant trips over a faulty rug supplied by you and decides to sue, your personal assets are outside the company and are protected.
Landlords and property investors can also form UK Limited Liability Partnerships for UK property transactions. An LLP is a body corporate with limited liability and legal personality. It is therefore a legally a type of limited company (but without a conventional share capital) which can function like a partnership in practice and which is deemed to be transparent for UK tax purposes, with the members of the LLP being treated as if they were partners in a partnership (which strictly they are not).
The advantages outlined above need to be weighed against those of being a sole trader. Sole traders purchase property as an individual in the hope of obtaining the capital gains benefits, but face a higher rate of income tax on net rental income, which can make capital repayment of borrowings seem expensive.
property management companies
Where it is not possible (or desirable) to hold properties within a limited company, the use of a property management company can also save vast amounts of tax. Property investors can consider a relatively new type of company, a right to manage (RTM), which is often now used in place of a Flat Management company. The RTM represents the interest of owners of dwellings that share common areas or rights, typically flats, to participate in the running of the common areas or exercising their rights of access.
Unlike a Flat Management Company there are no shareholders, but instead rights of membership are conferred on the parties concerned. The flat owners may force the managers of the building to accept the setting up of such companies. The Commonhold & Leasehold Reform Act 2002 came into effect three years ago and provides a right to leaseholders in flats to force a transfer of the landlord’s management functions to a company of their own – an RTM. Landlord consent is not required as long as relevant criteria are met. The right is exercised by serving a formal written notice upon the Landlord who may, after the appropriate periods of time have elapsed, become a member of the new company themselves once the right to manage has been acquired. Specialist advice should be sought if there is a dispute. The following criteria must be satisfied:
* The building must be self- contained ( or if part of another building , be capable of being redeveloped independently)
* It must include at least two flats
* At least two-thirds of the flats must be let to ‘qualifying tenants’ (i.e a leaseholder whose lease was originally granted for an original term of more than 21 years). There is no requirement for any past or present residence in the flats, or any limit on the number of flats which can be owned by one person.
* It can be part-commercial but the non-residential part must not exceed 25% of the total floor area
* The right to manage may only be exercised by a RTM company and the members of the RTM company must comprise a sufficient number of qualifying tenants. (The required minimum number of qualifying tenants must be equal to at least half the total number of flats in the building)
* The right relates to a building, so in an estate of separate blocks, each block would need to qualify separately and an individual RTM served.
Once formed, the company must formally invite any leaseholders that did not participate in the formation of the company to become members. The company itself must be limited by guarantee and not have a share capital and its Memorandum & Articles of Association must follow a specified form laid down by legislation. These companies are normally set up on the advice or under the guidance of a solicitor familiar with property law. Formation agents like Duport can form such companies quickly and easily.
flat management company
Developers in particular often turn to flat management companies, especially if they own blocks of flats where an arrangement needs to be made to deal with the running, maintenance and repair of the common parts of the building. The leaseholders of the flats are the members of the company. They may appoint a management agent to carry out the day to day work, or one may be specified in the leases with the freeholder. A flat management company is normally incorporated to manage a property or group of properties where there are multiple tenants. It is normally used to protect the interests of the leaseholders.
A Flat Management company has its Memorandum and Articles of Association specially drawn up to allow the company to own, manage and administer a leasehold or freehold property, which is normally divided into several dwellings units or flats, with each leaseholder owning a share in the company. The leaseholder will be obliged to transfer the ownership of the share to the new leaseholder when disposing of the property.
Flat management formation packages are often a solution for developers. The company can be tailored to the client’s specific requirements - for example with enough copies of Memorandum and Articles of Association for each leaseholder. Developers can choose between a company limited by shares or limited by guarantee. Either of these forms of incorporation provides limited liability for its members. Each company can also collect maintenance charges and any ground rents, arrange security, decoration, insurance etc.
The company limited by guarantee intends to provide a form of incorporation with limited liability suitable for a group of members with a mutual interest of a not-for-profit nature. The main advantage of using a guarantee company rather than a company limited by shares is that no stamped transfer is needed on changes of members (on sale of the related lease). The articles can simply provide for the membership of the outgoing lessee to terminate automatically when they cease to hold the lease, without the need for signatures.
Whatever the size or complexity of a property portfolio, limited company status deserves serious consideration. For top rate tax payers, especially those who want to reinvest some profits to grow the business rather than taking them all for personal use, the use of a limited company is probably a very wise move. The 19% rate of corporation tax is a real advantage in such cases and will make a difference to the bottom line. However, there are numerous issues to consider and because each business is unique it is important to speak to a qualified accountant and get specific advice.
Thursday, June 17, 2010
Deposits or insurance?
The tenants' deposit is not the equivalent of a new-for-old insurance policy.
The government knows that tenants do a bit of damage here and there so they give you 10% leeway on your rental profit for 'wear and tear' per year. They also kindly allow you to offset any expenditure on your property against your profit to reduce your taxable profit even further.
Folks like HomeLet offer landlord insurance policies to cover damage by tenants or the burning down of your property at pretty reasonable rates.
Or you can self-insure by putting away a bit of your monthly rent and not using it all to finance expensive cars or three holidays a year.
So why oh why do some landlords want to squeeze the tenant all the time? Why have they forgotten that there is a little bit of risk in every investment and frankly you are better off with a flat or a house as an investment than you would be with Equitable Life, Kaupthing or AIG to name a few.
All landlords need to treat their properties like a business. If you had a sweet shop you would expect some seasonal ups and downs as well as the possibility of the credit crunch affecting the business in some way. Little and often would be the best kind of scenario with happy customers and repeat business keeping things on the right track.
Investing in property should be seen the same way; it won't always be 'making hay while the sun shines' and there may be bumps in the road but if you keep everyone happy and watch the pennies whilst maintaining your property in a good state (note that I didn't say perfect there) it will all work out in the end.
Fair and reasonable are the watchwords because the Deposit schemes aren't keen on greedy landlords and tenants don't like feeling that they are being taken advantage of.
If you are looking for a good book to read over the summer which will also help you get in the Landlord Mind Set try the 3+1 Plan which I've linked to at the foot of this page.
The government knows that tenants do a bit of damage here and there so they give you 10% leeway on your rental profit for 'wear and tear' per year. They also kindly allow you to offset any expenditure on your property against your profit to reduce your taxable profit even further.
Folks like HomeLet offer landlord insurance policies to cover damage by tenants or the burning down of your property at pretty reasonable rates.
Or you can self-insure by putting away a bit of your monthly rent and not using it all to finance expensive cars or three holidays a year.
So why oh why do some landlords want to squeeze the tenant all the time? Why have they forgotten that there is a little bit of risk in every investment and frankly you are better off with a flat or a house as an investment than you would be with Equitable Life, Kaupthing or AIG to name a few.
All landlords need to treat their properties like a business. If you had a sweet shop you would expect some seasonal ups and downs as well as the possibility of the credit crunch affecting the business in some way. Little and often would be the best kind of scenario with happy customers and repeat business keeping things on the right track.
Investing in property should be seen the same way; it won't always be 'making hay while the sun shines' and there may be bumps in the road but if you keep everyone happy and watch the pennies whilst maintaining your property in a good state (note that I didn't say perfect there) it will all work out in the end.
Fair and reasonable are the watchwords because the Deposit schemes aren't keen on greedy landlords and tenants don't like feeling that they are being taken advantage of.
If you are looking for a good book to read over the summer which will also help you get in the Landlord Mind Set try the 3+1 Plan which I've linked to at the foot of this page.
Saturday, May 29, 2010
The old types of agreement! Difference between Assured and Assured Shorthold Tenancy.
Assured Tenants
As assured tenancy is very different from an assured shorthold tenancy. An assured tenant has security of tenure which means that they have the right to remain in their home indefinitely should they wish. Most of these tenancies were created accidentally. For example perhaps a tenancy agreement was not drawn up when they moved into the property or perhaps the correct documents were not served on them when the tenancy was originally created.
Until 27 February 1997 in order to create an assured shorthold tenancy the landlord had to serve a special notice on the tenant called a "notice to quit", If this was not done for whatever reason the tenant will be able to claim the status of an assured tenant. The implications of this are very severe in that you will not be able to get vacant possession of you property.
It is also important to point out that you will not be abe to increase the rent annually as the rent will be set by the local rent officer from the rent office. In most cases you will be responsible for the upkeep of the outside of the property and your assured tenant will be responsible for the internal decoration
Selling An Assured Tenancy
Selling a property that is owned by an assured tenant doesn't need to be a complicated procedure provided you are selling to a company that is familiar with these types of tenancies. In this current climate they are pretty much un-mortgageable as banks and building societies will not consider the property as good security even though they are sold at a discount to there vacant value.
It is also worth noting that you are not required by law to provide a home information pack when selling a property with a sitting tenant.
As assured tenancy is very different from an assured shorthold tenancy. An assured tenant has security of tenure which means that they have the right to remain in their home indefinitely should they wish. Most of these tenancies were created accidentally. For example perhaps a tenancy agreement was not drawn up when they moved into the property or perhaps the correct documents were not served on them when the tenancy was originally created.
Until 27 February 1997 in order to create an assured shorthold tenancy the landlord had to serve a special notice on the tenant called a "notice to quit", If this was not done for whatever reason the tenant will be able to claim the status of an assured tenant. The implications of this are very severe in that you will not be able to get vacant possession of you property.
It is also important to point out that you will not be abe to increase the rent annually as the rent will be set by the local rent officer from the rent office. In most cases you will be responsible for the upkeep of the outside of the property and your assured tenant will be responsible for the internal decoration
Selling An Assured Tenancy
Selling a property that is owned by an assured tenant doesn't need to be a complicated procedure provided you are selling to a company that is familiar with these types of tenancies. In this current climate they are pretty much un-mortgageable as banks and building societies will not consider the property as good security even though they are sold at a discount to there vacant value.
It is also worth noting that you are not required by law to provide a home information pack when selling a property with a sitting tenant.
Saturday, April 10, 2010
Get Rightmove on your mobile
We have had a few calls from folks lately saying that they were down in Oxfordshire looking at properties which they didn't like only to go home and look at rightmove again and find a property of ours that they DID like. If you have an iPhone you never need to have that happen to you again.
Why? Because you can get an app for Rightmove!
You can download it for free and look at all the lovely pictures we use to advertise all our lovely properties. You can flick through them with your finger very easily and if you are near wifi it is amazingly fast.
Nice. Get your app and never miss a property!
Wednesday, March 17, 2010
Still Unusual
Two things you may or may not know about BlueDoor:
We don't charge renewal fees to Landlords or Tenants.
We don't do boards.
It is a little known fact that there are agents like us out there in the wilderness also not charging ridiculous renewal fees. We are proud to be one of them and wish that other agents would join us.
If you read the property sections of any weekend broadsheets you will probably have read a lot about unfair charges levied by agents on poor tenants and landlords and the moves by the Office of Fair Trading to force Foxtons to remove the unfair fees terms in their agreements.
Elsewhere you may have read about Estate Agents protesting that they cannot sell houses without having numerous boards on both sides of the streets of Hammersmith and Fulham and Brighton and Hove.
None of our properties stay empty for very long. The average is probably a matter of days rather than weeks and we achieve this by advertising properties in the best way possible: with lots of pictures and interesting advertising text. We don thave boards and it doesn't affect our ability to let properties.
In and around Abingdon it seems that agents can get a board up faster than they can get a property advertised on rightmove or their own website. How can a tenant find out anything about the property from a board? How many people will see a board in a no through road versus how many will see it advertised online when they are browsing in their lunch break?
Pictures are the key here. If a tenant can see a picture of each room they can really get an idea about whether they can see themselves in the property or not. This saves us time because only people who are really interested in the hose want to view it and it also saves prospective tenants time as they don't waste their afternoon looking at a place that they wouldn't have bothered with if they know it had a shower but not a bath or a mirrored bedroom ceiling or whatever.
Work smarter not harder, goes the saying. Well, we do work hard but we also work smart. You too can work smart by instructing us.
Paying just £65+VAT pcm for management and rent collection is pretty smart don't you think?
We don't charge renewal fees to Landlords or Tenants.
We don't do boards.
It is a little known fact that there are agents like us out there in the wilderness also not charging ridiculous renewal fees. We are proud to be one of them and wish that other agents would join us.
If you read the property sections of any weekend broadsheets you will probably have read a lot about unfair charges levied by agents on poor tenants and landlords and the moves by the Office of Fair Trading to force Foxtons to remove the unfair fees terms in their agreements.
Elsewhere you may have read about Estate Agents protesting that they cannot sell houses without having numerous boards on both sides of the streets of Hammersmith and Fulham and Brighton and Hove.
None of our properties stay empty for very long. The average is probably a matter of days rather than weeks and we achieve this by advertising properties in the best way possible: with lots of pictures and interesting advertising text. We don thave boards and it doesn't affect our ability to let properties.
In and around Abingdon it seems that agents can get a board up faster than they can get a property advertised on rightmove or their own website. How can a tenant find out anything about the property from a board? How many people will see a board in a no through road versus how many will see it advertised online when they are browsing in their lunch break?
Pictures are the key here. If a tenant can see a picture of each room they can really get an idea about whether they can see themselves in the property or not. This saves us time because only people who are really interested in the hose want to view it and it also saves prospective tenants time as they don't waste their afternoon looking at a place that they wouldn't have bothered with if they know it had a shower but not a bath or a mirrored bedroom ceiling or whatever.
Work smarter not harder, goes the saying. Well, we do work hard but we also work smart. You too can work smart by instructing us.
Paying just £65+VAT pcm for management and rent collection is pretty smart don't you think?
Monday, February 08, 2010
Sell, sell, sell. Buy, buy, buy
I could give this advice every day and if everyone I gave it to took my advice, everything would be ok.
Sell your big properties and buy small ones.
I give you that advice for free.
Have a look at rightmove at the cost of a 1 bed house or flat. Look at the rents on similar properties and do some maths.
The yields on smaller properties are good; they rent very easily; they rent to good people who work all day and those people tend not to make a mess.
Now think about buying just one and getting the smallest mortgage on it that you can. Don't overstretch yourself and go buying 5 of them and spreading your debt far and wide.
Three studios will give more income than one larger property but can cost the same to service. You reduce your risk in terms of voids because it is unlikely that more than one will be empty at any given time.
Sell your big properties and buy small ones.
I give you that advice for free.
Have a look at rightmove at the cost of a 1 bed house or flat. Look at the rents on similar properties and do some maths.
The yields on smaller properties are good; they rent very easily; they rent to good people who work all day and those people tend not to make a mess.
Now think about buying just one and getting the smallest mortgage on it that you can. Don't overstretch yourself and go buying 5 of them and spreading your debt far and wide.
Three studios will give more income than one larger property but can cost the same to service. You reduce your risk in terms of voids because it is unlikely that more than one will be empty at any given time.
Tuesday, January 05, 2010
Happy New Year Abingdon!
The new year has started very crisply hasn't it? The grass looked like frost on frost on frost this morning which was very beautiful.
My frugal tip for this time of year is to wear more clothes. Honestly! Add layers, ladies and gentlemen before you run to the heating thermostat. Having your home like the Bahamas while it is so cold outside is a recipe for condensation and mouldiness in cold spots like window and door lintels and parts of the house which are less well insulated.
This kind of thing isn't pretty but it won't kill you. A wipe with some white vinegar will get rid of the blackness and reducing the temperature inside the house will help the condensation too. Wiping the windows isn't a bad idea and a microfibre cloth from your nearest pound shop is the ideal thing to use. This problem can't me prevented entirely because you can't stop the cold meeting the warmer walls and windows of any house.
See my Topical Tip of the Month from this month last year for more ideas on keeping warm.
My frugal tip for this time of year is to wear more clothes. Honestly! Add layers, ladies and gentlemen before you run to the heating thermostat. Having your home like the Bahamas while it is so cold outside is a recipe for condensation and mouldiness in cold spots like window and door lintels and parts of the house which are less well insulated.
This kind of thing isn't pretty but it won't kill you. A wipe with some white vinegar will get rid of the blackness and reducing the temperature inside the house will help the condensation too. Wiping the windows isn't a bad idea and a microfibre cloth from your nearest pound shop is the ideal thing to use. This problem can't me prevented entirely because you can't stop the cold meeting the warmer walls and windows of any house.
See my Topical Tip of the Month from this month last year for more ideas on keeping warm.
Thursday, November 05, 2009
And a bit more on arrears
The best excuse yet for late rent payments was uttered over the phone to me last week.
Coutts don't do internet banking so I haven't been able to pay you.
Really!?! I know quite a bit about Coutts and they not only have internet banking but they also provide account holders with a personal banker who is available 24 hours a day to do your personal banking bidding. Perhaps this tenant's private banker was asleep for 2 weeks?
Oh well, perhaps the standards at Coutts are slipping....
Coutts don't do internet banking so I haven't been able to pay you.
Really!?! I know quite a bit about Coutts and they not only have internet banking but they also provide account holders with a personal banker who is available 24 hours a day to do your personal banking bidding. Perhaps this tenant's private banker was asleep for 2 weeks?
Oh well, perhaps the standards at Coutts are slipping....
Saturday, March 14, 2009
Still here
Crikey! You miss a call or two, people forget about the joy of emailing instead of calling and all of a sudden folks are wondering if we are still in business!
We are alive and kicking and very, very busy. You may have seen that our listings on rightmove and bluedoorlettings.com are numerous and splendiferous at the moment and this has led to lots and lots of viewings on lots of lovely properties. When I have been on the phone I've had a few tricky conversations with landlords this week about hitting the 'sweet spot' regarding rents. Thankfully (for them) those landlords seem to have come round to my way of thinking.
Humourous advert + ouchy rent = a good laugh but no interest.
Humorous advert + sweet rent = instant response from interested parties, very often within hours.
Would you believe that we had 61,715 summary views on rightmove in the last 28 days? The blog data is very much smaller and I am so ashamed that I am not going to post how may (few) hits we've had this month at all.
We have also been struggling with taking Bluedoor's back office into the world of terminal servers and remote desktops necessitating new printers and some rethinking. This is mainly all good but as a result of all this hocus pocus our statements will be printed in black and white from here on in which is a bit of a sad moment for us as blue is our thing. Perhaps blue paper is the way forward?
There aren't enough hours in the day to run the business and think about paper colour....
We are alive and kicking and very, very busy. You may have seen that our listings on rightmove and bluedoorlettings.com are numerous and splendiferous at the moment and this has led to lots and lots of viewings on lots of lovely properties. When I have been on the phone I've had a few tricky conversations with landlords this week about hitting the 'sweet spot' regarding rents. Thankfully (for them) those landlords seem to have come round to my way of thinking.
Humourous advert + ouchy rent = a good laugh but no interest.
Humorous advert + sweet rent = instant response from interested parties, very often within hours.
Would you believe that we had 61,715 summary views on rightmove in the last 28 days? The blog data is very much smaller and I am so ashamed that I am not going to post how may (few) hits we've had this month at all.
We have also been struggling with taking Bluedoor's back office into the world of terminal servers and remote desktops necessitating new printers and some rethinking. This is mainly all good but as a result of all this hocus pocus our statements will be printed in black and white from here on in which is a bit of a sad moment for us as blue is our thing. Perhaps blue paper is the way forward?
There aren't enough hours in the day to run the business and think about paper colour....
Sunday, February 22, 2009
Where is the board shepherd when you need him?
Here is another lonely lost board. Keeping very poor company too.
This one is lost near Rivy Field on the path that runs from the crossing by the junction of Audlett Drive and Thames View all the way to the Nature Reserve. If you are a driver and not a walker you wouldn't even know that this path exists. It is a mostly leafy and green alternative to walking along Audlett Drive or Radley Road which is much more pleasant than breathing in traffic fumes.
Most towns have their paths which can make getting about on foot easier than driving and Abingdon is no exception. It took me years to understand how Peachcroft was connected to Radley Road or Appleford Drive and I still can't quite believe that it can be so much quicker to walk from A to B than drive despite Mrs Simpson's assurances.
On a different note, this week's tenant Problem of the Week is mildew. Not Toxic Mold as found on US websites but just ordinary mouldy mildew caused by having the heating on too high, taking long hot showers, drying clothes indoors and not opening the windows enough. We have dehumidifiers out in 3 flats at the moment and have been giving tenants information on ventilation and wiping off mildew with a solution of white vinegar on a cloth.
Modern folk like to be hot and expect to be able to wear t-shirts and shorts indoors even in winter. To do that comfortably you need to have your heating on at about 25 degrees which will play havoc with the cold spots in your house and moisture levels in the air.
I'm not that old as you know but I am an avid wearer of lambswool jumpers in winter and very happy to keep one on indoors and keep the heating low. My dear wife is also a fan of wool and our younger two are big fans of layering but our older kids are hard as nails and only wear a coat when its snowing. I feel cold just looking at them.
My tips to prevent mildew are: keep a window open a crack during the day to keep air circulating, think about how to keep your body warm and not the air around you, fit curtains over your doors and windows to keep heat in, open the bathroom window after having a shower to let the moisture escape and lastly, turn the heating down and invest in some jumpers!
Tuesday, February 10, 2009
Flat fees - a disincentive for what?
This week two customers who I spoke to at the start of January have come back to me to say they don't want to instruct anyone else so can I come and take some pictures of their properties and get them advertised.
Great news as I was beginning to think they had forgotten about me! When I worked for a corporate company we had to chase up new landlord leads on a daily basis if a couple of days had gone by and we hadn't heard from them. I hated doing that and tried to avoid it if I could. Now, as you can imagine I don't do it at all. If they want bluedoor they will come to bluedoor, it is as simple as that.
It seems that the other agents who these two landlords invited into their homes proceeded to hound them on a daily basis offering them all kinds of inducements to instruct them which as you can imagine is pretty annoying - and off-putting. Our deal is our deal and everything I say when meeting a landlord for the first time is the same as what I say a week later. No deals, no discounts and no guilt trips!
Anyhow obviously our honesty, transparency, integrity and consistency have won out yet again and several folks are now sitting in their offices disappointed. Take note of the above my friends.
This latest landlord asked me a strange thing when he called me to instruct me though. He was wondering what incentive we have for increasing the rent on his property if we stand to gain nothing from any increase as we don't charge a percentage. Good question!
I hope that over time he will see that the honesty that I show upfront is also the honesty which drives our business. Our first adverts had the text 'Helping Landlords get more of their rent' You might have seen on in the Post Office in Abingdon or in the Property Weekly. That is what we still do. We do the best for our landlords and charge a flat fee for doing it. Simple and unusual but still true.
Great news as I was beginning to think they had forgotten about me! When I worked for a corporate company we had to chase up new landlord leads on a daily basis if a couple of days had gone by and we hadn't heard from them. I hated doing that and tried to avoid it if I could. Now, as you can imagine I don't do it at all. If they want bluedoor they will come to bluedoor, it is as simple as that.
It seems that the other agents who these two landlords invited into their homes proceeded to hound them on a daily basis offering them all kinds of inducements to instruct them which as you can imagine is pretty annoying - and off-putting. Our deal is our deal and everything I say when meeting a landlord for the first time is the same as what I say a week later. No deals, no discounts and no guilt trips!
Anyhow obviously our honesty, transparency, integrity and consistency have won out yet again and several folks are now sitting in their offices disappointed. Take note of the above my friends.
This latest landlord asked me a strange thing when he called me to instruct me though. He was wondering what incentive we have for increasing the rent on his property if we stand to gain nothing from any increase as we don't charge a percentage. Good question!
I hope that over time he will see that the honesty that I show upfront is also the honesty which drives our business. Our first adverts had the text 'Helping Landlords get more of their rent' You might have seen on in the Post Office in Abingdon or in the Property Weekly. That is what we still do. We do the best for our landlords and charge a flat fee for doing it. Simple and unusual but still true.
Sunday, January 25, 2009
Topical Tip of the month
It is freezing some nights isn't it? If you are cold, your pipes are too and if you drink the water from the bathroom tap in the middle of the night you might freeze your teeth! Brrrr.
Here are some tips from Direct Line insurers
Here are some tips from Direct Line insurers
• Insulate your pipes with preformed insulation, and replace the washers on any dripping taps - if the taps freeze, the pipe will get blocked.
• Know where your water valves are, and learn how to shut them off in case a pipe does burst.
• In very cold weather the heating will need to be on low, or set to come on a couple of times a day, especially if you're going away.
• Open the loft trapdoor on cold days to let heat in.
Click here to read more about protecting your home from leaks caused by burst pipes.
We Simpsons are about as frugal as you can be in lots of ways but we don't scrimp on keeping the house warm enough to keep the water flowing through the pipes. We don't have it like the Bahamas though! We use an oil filled radiator in our living room, freeze in the kitchen and get under the feather duvet at night but we keep the heating switched to constant and the thermostat on about 12-15 most of the time A few nights this month we have heard it click and the heating come on inthe small hours but this is a GOOD thing.
Keeping the chill off the house while you are at work means that it warms up more quickly when you get home. Your central heating switching on and switching off is good for the boiler and keeps it all from seizing up through lack of use.
If the bills worry you then save money elsewhere by taking a packed lunch to work, leaving your car at home when you can and asking your Mum or Gran for some tips on cooking from scratch to save on all those take aways!
Water going places it shouldn't can lead to scenes like this:
Thames Water had a broken pipe under the ground in front of this flat. The grass and weeds there grew like...grass and weeds but the flat was also curiously damp despite there being no leaks from anything inside and the shower pressure was very low. After investigating all possible causes we ended up calling Thames Water to check the pressure on the water main.
They found a crack and got some men out to fix it the same day. Thanks to our dehumidifiers the flat is now nice and dry and the problem is solved. Who'd have thought one call could make diggers appear so quickly! If only everything could be fixed so swiftly and without a bill to the landlord!
Saturday, March 29, 2008
Musings of a perplexed agent
This week has been a scramble to get people referenced, their money in and the keys into their hands after all the viewings over the holiday weekend. I don't think any other agents were open so all the folk looking for places to rent ended up on our doorstep.
I did a market appraisal on the Thursday and haven't heard from the prospective LandLady despite trying to call her to ask her if I had upset her. As I do in these cases I checked rightmove to see if it was on with anyone else.
It is: with FK. Why, I wonder? There is one picture of the front of the place and 3 bullet points including the fact that you could fit a table into the kitchen. No further description or interior photos.
When I met the LandLady she told me that her partner would be doing the negotiation of our percentage and I think I took the wind out her sails by telling her that there was no need to negotiate as we just have a flat fee £65+VAT for full management. She looked bemused and said that that was cheaper than any of the others had quoted her for just rent collection.
So why? Is it that I don't have a flash car or wear a shiny suit? Is it becuase I am honest about possible rents and I move good tenants in quickly and hardly ever have any voids?
If you have ever found us on the internet I'm sure you will agree that we show more picutres of properties than anyone else out there except perhaps LL (you know who you are you cheeky- fireplace-photograper-you) and he only does it on his sales properties. Our descriptions are interesting and often funny and really tell you something about the property.
Perhaps people think that you get a cheap service from us and they would prefer to pay a premium and get a premium service. I would turn that on its head and ask why pay a premium for the same service?
What do you get for that premium? It certainly isn't better advertising or viewings on a bank holiday weekend.
Hello to all those of you who have missed us. We miss you too: give me a ring you miserable lot. Its 01235 524800 or alternatively you can fax me pictures of my head made to look like Ming the Merciless on 01235 524500.
I did a market appraisal on the Thursday and haven't heard from the prospective LandLady despite trying to call her to ask her if I had upset her. As I do in these cases I checked rightmove to see if it was on with anyone else.
It is: with FK. Why, I wonder? There is one picture of the front of the place and 3 bullet points including the fact that you could fit a table into the kitchen. No further description or interior photos.
When I met the LandLady she told me that her partner would be doing the negotiation of our percentage and I think I took the wind out her sails by telling her that there was no need to negotiate as we just have a flat fee £65+VAT for full management. She looked bemused and said that that was cheaper than any of the others had quoted her for just rent collection.
So why? Is it that I don't have a flash car or wear a shiny suit? Is it becuase I am honest about possible rents and I move good tenants in quickly and hardly ever have any voids?
If you have ever found us on the internet I'm sure you will agree that we show more picutres of properties than anyone else out there except perhaps LL (you know who you are you cheeky- fireplace-photograper-you) and he only does it on his sales properties. Our descriptions are interesting and often funny and really tell you something about the property.
Perhaps people think that you get a cheap service from us and they would prefer to pay a premium and get a premium service. I would turn that on its head and ask why pay a premium for the same service?
What do you get for that premium? It certainly isn't better advertising or viewings on a bank holiday weekend.
Hello to all those of you who have missed us. We miss you too: give me a ring you miserable lot. Its 01235 524800 or alternatively you can fax me pictures of my head made to look like Ming the Merciless on 01235 524500.
Monday, June 04, 2007
Call me......
Bluedoor is always open. Any day of the week that you want to view a property I will oblige.
Any time of day that you want to view a property I will oblige.
If you want to view a property on a Sunday afternoon I will oblige.
If it turns out that said Sunday afternoon is hot and sunny and you don't fancy viewing a house - PLEASE call me to tell me you have changed your plans then maybe I could make plans for the sunny Sunday afternoon myself!
I don't even mind being dumped by text. Try me.
Any time of day that you want to view a property I will oblige.
If you want to view a property on a Sunday afternoon I will oblige.
If it turns out that said Sunday afternoon is hot and sunny and you don't fancy viewing a house - PLEASE call me to tell me you have changed your plans then maybe I could make plans for the sunny Sunday afternoon myself!
I don't even mind being dumped by text. Try me.
Sunday, May 13, 2007
Are you thinking of Buying to Let?
TOP TEN TIPS FOR NEW BUY-TO-LET INVESTORS
Like any investment, buy-to-let comes with no guarantees, but for those who have more faith in bricks and mortar than stocks and shares the following tips from The Money Centre can help ensure your buy-to-let investment is a success.
1. DO set aside money for the unexpected - such as a void period in rent or a boiler breaking down.
2. DO keep an open mind about what and where to buy. Talk to as many experienced landlords as you can and learn from their mistakes and successes.
3. DO think carefully before buying a property with maintenance issues. Money you save buying it may be lost by it being empty while you’re renovating or improving the property.
4. DON’T indulge your own taste in design and style of the interior or exterior of the property, as it’ll restrict its appeal. Keep it neutral and safe.
5. DO be cautious about buying properties off-plan. You need to stick to a specific timeframe in order to maximise your return and developers may not guarantee a finish date.
6. DO beware of companies offering cheap conveyancing. If a few pounds saved on conveyancing means a slow service you may lose the property.
7. DON’T skimp by finishing your buy-to-let property with second-hand furnishings, fixtures and fittings. If they don’t meet health and safety regulations you could find yourself in trouble.
8. DO be aware of the specialist insurance you need. Standard domestic insurance policies do not cover many of the eventualities that landlords face.
9. DO think carefully before leaving the management of your property to relatives or friends. Buy-to-let properties need experienced management to maintain tenant occupancy and maximise returns.
10. DON’T abuse the relationship you have with your tenants. Give plenty of notice before you visit and make sure maintenance problems are addressed quickly. Tenants are an essential part of your business plan and the relationship needs to be managed in a professional way.
From The Money Centre
If you need advice about buy to let just give me a ring. I can talk to you about good properties to buy, how to go about making offers to agents, what I can do for you in terms of our services and give you some ball-park figures for income and yield.
In fact, I can talk the hind leg off a donkey so I'll ring you back to save your phone bill! All my advice is free and you are under no obligation of course.
I'd really like to help you buy a fantastically lettable property so that it all goes smoothly for you. I feel awful when landlords come to me with a property that I know will be difficult to let and probably won't make them as rich as they had hoped.
Like any investment, buy-to-let comes with no guarantees, but for those who have more faith in bricks and mortar than stocks and shares the following tips from The Money Centre can help ensure your buy-to-let investment is a success.
1. DO set aside money for the unexpected - such as a void period in rent or a boiler breaking down.
2. DO keep an open mind about what and where to buy. Talk to as many experienced landlords as you can and learn from their mistakes and successes.
3. DO think carefully before buying a property with maintenance issues. Money you save buying it may be lost by it being empty while you’re renovating or improving the property.
4. DON’T indulge your own taste in design and style of the interior or exterior of the property, as it’ll restrict its appeal. Keep it neutral and safe.
5. DO be cautious about buying properties off-plan. You need to stick to a specific timeframe in order to maximise your return and developers may not guarantee a finish date.
6. DO beware of companies offering cheap conveyancing. If a few pounds saved on conveyancing means a slow service you may lose the property.
7. DON’T skimp by finishing your buy-to-let property with second-hand furnishings, fixtures and fittings. If they don’t meet health and safety regulations you could find yourself in trouble.
8. DO be aware of the specialist insurance you need. Standard domestic insurance policies do not cover many of the eventualities that landlords face.
9. DO think carefully before leaving the management of your property to relatives or friends. Buy-to-let properties need experienced management to maintain tenant occupancy and maximise returns.
10. DON’T abuse the relationship you have with your tenants. Give plenty of notice before you visit and make sure maintenance problems are addressed quickly. Tenants are an essential part of your business plan and the relationship needs to be managed in a professional way.
From The Money Centre
If you need advice about buy to let just give me a ring. I can talk to you about good properties to buy, how to go about making offers to agents, what I can do for you in terms of our services and give you some ball-park figures for income and yield.
In fact, I can talk the hind leg off a donkey so I'll ring you back to save your phone bill! All my advice is free and you are under no obligation of course.
I'd really like to help you buy a fantastically lettable property so that it all goes smoothly for you. I feel awful when landlords come to me with a property that I know will be difficult to let and probably won't make them as rich as they had hoped.
Friday, April 27, 2007
Ramblings on prices
I have a lot of theories about a lot of things but some of the theories I have about lettings are spot on.
One is that a property will only let for what a tenant is willing to pay for it. This sounds obvious but what I mean is that the prospective tenant for a one bed flat or a three bed house has a budget in mind based on a few things. Firstly how may people will be paying the rent, secondly how much the monthly mortgage payment on the house would be if they bought it themselves and thirdly there is a seemingly random relationship between rent and property prices.
Thanks to the internet it is very easy for anyone to find out what a house was bought for and when or how much similar properties are being sold for. Sites like http://www.nethouseprices.com/ have taken the mystery out of purchase prices and for a mere £3.00 Land Registry will sell you a pdf of the title deed of any property which lists its owners and any mortgagees.
This is why there is a ceiling on rents for a particular sized property which to some extent disregards its interior finish or its location. Furniture does not add a premium to the rent and neither do white goods. Tenants in this area expect white goods and beds as basics and in a lot of properties landlord's furniture is seen as a hindrance.
Tenants aren't silly, if they could buy the property for less than the advertised rent then they will do that instead. The days of landlords picking a price and tenants paying it are long gone which brings me to the last point about rent and purchase prices.
There's a funny thing in and around Oxford that if have a house to let which is worth between £200,000 and £250,000 you will get a rent of between £850 and £950 pcm. I can advertise these kind of properties on a landlord's instruction for £900 or £975 and get absolutely no hits whatsoever. If I drop this by even £25 I will get have the phone ringing off the hook. It seems that there is a magic number and that it is in the tenant's head, not the landlord's!
If this seems like a bad return there are a few things you can do; switch to an interest only mortgage on your rental properties then let through bluedoor. Our fees for full management are only £65+VAT which is £76.30 per month or less than 9% on that £850 rent.
If you are thinking of investing in property to let and aren't sure what to buy give me a ring and I will help you all I can. 01235 524800
One is that a property will only let for what a tenant is willing to pay for it. This sounds obvious but what I mean is that the prospective tenant for a one bed flat or a three bed house has a budget in mind based on a few things. Firstly how may people will be paying the rent, secondly how much the monthly mortgage payment on the house would be if they bought it themselves and thirdly there is a seemingly random relationship between rent and property prices.
Thanks to the internet it is very easy for anyone to find out what a house was bought for and when or how much similar properties are being sold for. Sites like http://www.nethouseprices.com/ have taken the mystery out of purchase prices and for a mere £3.00 Land Registry will sell you a pdf of the title deed of any property which lists its owners and any mortgagees.
This is why there is a ceiling on rents for a particular sized property which to some extent disregards its interior finish or its location. Furniture does not add a premium to the rent and neither do white goods. Tenants in this area expect white goods and beds as basics and in a lot of properties landlord's furniture is seen as a hindrance.
Tenants aren't silly, if they could buy the property for less than the advertised rent then they will do that instead. The days of landlords picking a price and tenants paying it are long gone which brings me to the last point about rent and purchase prices.
There's a funny thing in and around Oxford that if have a house to let which is worth between £200,000 and £250,000 you will get a rent of between £850 and £950 pcm. I can advertise these kind of properties on a landlord's instruction for £900 or £975 and get absolutely no hits whatsoever. If I drop this by even £25 I will get have the phone ringing off the hook. It seems that there is a magic number and that it is in the tenant's head, not the landlord's!
If this seems like a bad return there are a few things you can do; switch to an interest only mortgage on your rental properties then let through bluedoor. Our fees for full management are only £65+VAT which is £76.30 per month or less than 9% on that £850 rent.
If you are thinking of investing in property to let and aren't sure what to buy give me a ring and I will help you all I can. 01235 524800
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