Tag Archives: Renting Property

By Steve Roulstone

Part 4; Just how flexible is the house?

Finally in my humble opinion, you need to consider how easy the property will be able to be used as a rental house, not just for you as Landlord, but also by the Tenant. It is these practicalities that will be in the mind of any possible Tenant when they visit the house in the first place and my experience of such is littered with examples.

Furniture.

The number of times a rental has fallen through because the Tenant could not get his furniture (usually the settee) in the lounge is by far the most common. The size of room is not usually the issue, rather where are the doors situated. I myself have turned down a house because the Landlord had built a conservatory with an entrance from the lounge, which meant there were three doors and a fireplace to contend with. The end result was a total lack of wall space. There is also the issue of tight corners and narrow staircases. They do still exist and if for example the bedrooms do not have fitted wardrobes, you have to imagine how such large pieces of furniture are able to be manoeuvred around any tight corners.

Gardens.

Now for the big one! It is to be hoped that the garden is not the main reason anybody buys a rental home, but a fiddly set of borders and rockeries are a definite disadvantage to a Tenant. Exactly the opposite of flexible! It should also be remembered that just because a garden is immaculate when handed over, does not mean that the Tenants are expected to know when to cut plants back or down in accordance with the RHS Gardening year book. The expectancy on a Tenant to look after a garden is that of what is considered reasonable in very general terms. In other words, one man’s Eden project is another man’s Butterfly garden. Both are acceptable, providing they are not left alone completely. So make them easy to start with, it will pay in the long run. I am not suggesting concrete wall to wall, but perhaps a new lawn is better than a rockery and vegetable patch.

Decoration.

If you are lucky (just like my Landlords) The Tenant will rent for several years and decorate top to bottom himself. As a Landlord I have never been so lucky. So you need to consider how easy it will be for you to decorate, which will be needed along the way and ideally between Tenants. This means that dado rails and wallpaper are not the best way forward. Anaglypta however is perfect, because you can apply a coat of paint easily and quickly. Likewise anything other than sapele doors are more difficult and will probably need several coats. White painted doors fit the bill, look clean and are again neutral in colour and therefore better all round. The point being that these issues are not deal breakers, but by changing or decorating or dealing with them at this stage, you could remove difficult decisions from a later date and make the property more flexible during its lifetime as a rental property.

 Thats all folks!

This four part article is by no means the definitive ‘what to do when buying’, but hopefully it is a big enough one to provide you with a basis to start. In all seriousness it is your Agent (and everybody else you know who is a Landlord) that will help fill in the gaps. I have said before you will be surprised just how many people you know own at least one other property which is rented out. One thing for sure, is that the trends we are currently experiencing show no signs of slowing down. Even quite periods, the like of which we have witnessed since Easter are only a week away from a busy one. Only two weeks ago, we were discussing just how many properties we have available at present. After what are possibly two record weeks renting those very same properties, I know the ‘we need more properties to rent’ discussion is only a couple of days away!

By Steve Roulstone

Part 3; Will the house be popular with Tenants.

The next area for consideration when buying a house for the rental market, now you have your major suppliers sorted and know the property itself is sound of construction, is to look at the area itself and what facilities are going to attract Tenants to rent your property. The prime example is always the schools but access to public transport can be equally as important.

Style of House.

And in this case I do mean style! If you moved in tomorrow, would it provide everything you wanted? Would your furniture (and therefore anybody else’s) fit with the decoration. Making it easy for a Tenant to move in to a house is half the battle, if they do not have to compromise because their furniture does not ‘go’ with the decoration they are being asked to make a decision. If the decoration is neutral then it is one less decision to be made and that might just be the reason why your property is chosen. This means not only decorating as needed but fitting new carpets as well. Nowadays, the range available means that it is possible to find a quality finish such as the range of Berber which will be very pleasing on the eye and still hard wearing.

Bathroom and kitchen.

Now for the two most important rooms in the house. I always say it because people remember the description when put like this, that Tenants must be able to see themselves cooking in the kitchen and naked in the bathroom. This principal has never changed and with the number of properties available, if you are making a decision now then it is one to bear in mind from the start. A small kitchen does not allow for the vision of playing the chef and similarly a cold bathroom or one with poor decoration does not encourage people to feel comfortable in the house! These are important matters and ones that are not to be forgotten. I would suggest if the property you are considering does not offer these two rooms in good order, then either add the cost of replenishment or look elsewhere. I well remember looking at a house to confirm the Landlord had found a good property only to realise that it had no bath, just a shower. They are therefore ruling any Tenant with a small child out of the market for their home. Why reduce options if you do not need to?

Amenities.

So now let’s consider what is outside the front door and what your Tenant is liable to want. As mentioned, a house in a good school catchment area is always going to be popular. So you will need to find this out, although the price will reflect this as well (as would the achievable rent) but this will be the very reason why this property will cost more – popularity! Next, how do they get about? Is the local transport system close to hand, nobody wants to walk a mile to the bus stop, especially if kids are involved (this will just mean Mum and Dad Taxis Ltd!) On the other hand is it close to a local station, or a place of employment such as a hospital? By looking at the area and scoring the pluses against the minuses you will get a clear picture of how popular a property could be, but be realistic, those of us who like the countryside sometimes find it difficult to see why others do not. This is not about your opinion, but that of others, be sure it is their opinion you are thinking about.

Flexible.

Finally, look at the options for Tenants; this is a lot simpler than it sounds, because it is what the house offers that enables Tenants to use the house in differing ways.  In its simplest of forms, does the house have more than one reception room? Is there a garage or a shed, or a conservatory? All of these are going to allow the property be utilised in a more flexible manner. The more flexibility a Tenant can see in the home, the more reasons they can find to rent it. I well remember one of the reasons a house in Stafford was chosen above another was because there was a small office at the rear of the garage that was accessible from the house. The Tenant saw just how he was going to separate his children from the household when they had homework. Even though it was a smaller property than the other options he had, it was the flexibility that worked for him and the reason why that property won over others.

Knowledge is all.

The important point at this stage is to think about the scenarios around renting, imagine yourself in the house and how you would live in it and remember that the Agent you choose will be a vital source of information on all of these areas. This and all sources of information should be considered at this stage.

By Steve Roulstone

Part 2; Make sure it is sound for the future.

In this second of four Blogs about buying a house to rent, I am going to concentrate on the property itself and its long term sustainability. A rental property as an investment should be looked at as at least a ten year term. This is the period of time that history suggests all property will show an improvement in value in. That is what you are purchasing after all, an investment, so at this stage it is important to be sure the property is going to give you the life span you wish for trouble free. Of course, that cannot be guaranteed at such an early stage, but there are several areas that can be researched now to limit any possible expensive problems further down the line.

Floors.

The first major area is the floors on both levels. What are they made from, do they look in good order, is there any evidence of damp on the lower floors? Are the carpets in good order? Does the property smell of damp? If there is a cellar, do not forget to look at the floor boards that will be exposed, this will help you understand the condition of the floor above. Problems apart from damp are if either electrics or heating have been installed as a secondary installation.  Alterations to a house are not always under the heading of modernisation. In the rented house I currently live in, so much was cut away from floorboards to cater for Central Heating pipes, new boards have had to be installed.

Roof.

If at all possible, always look in the loft. Old or badly fitted roof trusses can cost a fortune to replace and if you do not get in to the loft (You can always take your own step ladders and torch) you may never find out. Although it is not just the roof of the house you are looking at that will give any problems away. Have the neighbours had new roofs? If so why? No harm in knocking on a door to find out.  Upstairs the problems to watch out for are the same, only this time the damp will be from the roof, so look out for signs of damp ceilings or condensation spots, such as old bathrooms with new appliances, the two do not always go together.

Electrics.

Two points for consideration here, firstly have the electrics been modernised and secondly do they need to be modernised. To look at the latter first, with today’s electronic requirements, a lack of plug points becomes a serious problem. I have known Tenants to phone and ask for increased plug points when a property only had two per room, and because the Landlord said no, they moved. Risk of an empty property is always to be avoided! The point that must be considered is do you want Tenants to have to run extension cables everywhere? If plug points are not supplied, they will have little option. Therefore re-wiring is a cost that will have to be born at some stage. If it has already been done, then a certificate by a competent electrician will have been provided. You will need to see it before proceeding, to prove the installer was competent and that the work was carried out to safe standards. Because of your duty of care to a Tenant, without such evidence, it would be difficult to prove you had provided it!

Heating.

Another area where DIY installations are to be avoided! I was once asked to manage a house, where the DIY work was so bad, three Tenants could have died in the same instance, two from electrics and the third gassed because of lack of ventilation. Luckily we checked it all first. Central Heating which works and is efficient is a given nowadays. It has to be remembered that the selection of property is growing, cutting corners with either insufficient heating or inefficient heating is a situation to be avoided. Therefore, if new heating has been fitted then again, you need to know when and by whom? Ask for running costs as they should give you a feel for a problem if you think one exists. The boiler is then the piece of equipment that could cost the most, check its age and if it has been serviced on a regular basis?

Eyes open.

The first viewing, which if possible should be avoided at a time when the property is empty (else who will answer your questions?) Is the time to remove yourself from the feeling of being a proud owner of property. This is the time to consider all possible problems, who owns which boundary? Is it clear where boundaries lie? I always stop in each room and turn slowly, then do the same outside, front and back, garage and sheds, this is the best time to walk away – before you have actually started!

By Steve Roulstone

There have been several questions asked and answered in the press lately, covering several aspects of buying a property to rent. So I have decided to write down what we at Castle Estates consider to be the most important matters for consideration when buying a property for the rental market.

Parts 1 through 4.

I will be writing the Guide in four parts dealing with what to do from the start to completion. This is not meant to be a comprehensive list, rather pointing you in the right direction. Other matters are bound to arise as you progress through financing, choosing an Agent, dealing with Insurance and then finding the property and making comparisons to decide which property is best value for money.

Part 1; Choosing your Finances, Insurance, Accountant and Agent.

Before you even arrange your first viewing of a property, it is a good idea to ensure firstly that you have the right finance to be able to purchase a rental home, especially with the current mortgage availability. Size of deposit will be crucial and by speaking with a mortgage broker (always better to ask your friends for a recommendation if you are unsure, you will be surprised just how many are also Landlords!) you will get a feel for exactly what calculations are needed to ensure the mortgage will be covered by the rent.

Insurances.

It is popular now to call Buildings Insurance for a rental property Landlords Insurance nowadays. It is not, it is Buildings Insurance, but you would still be better to speak to those who specialise in the rental market rather than mainstream Insurance providers, who always seem to offer Landlords Insurance as a premium. Some Mortgage Companies now insist on their own Insurance policies, ensure you are aware before committing to a mortgage what the cost is. It could make your mortgage less competitive! There is also proper Landlords Insurance to be considered. Your Agent will assist here, but Industry recognised meaning of Landlords Insurance is a policy that offers Guaranteed rent if the Tenant fails to pay the rent and Legal expenses to remove the Tenant as quickly as possible and of course, using Industry specialist experts to carry out the role!

 Accountants.

Unfortunately, Income from your rental property is taxable. Therefore you should seek advice from an Accountant so that your income is properly accounted for at the end of each year. When this additional income is small, I know that some consider an Accountant to be a cost they could do without, but speaking from experience, I have never been disappointed by the savings they have been able to make, compared with the cost of ensuring you are legal with the Taxman. By law, we have to advice Income tax offices of every penny paid to Landlords each year.  Therefore if the taxman knows what has been earned from the property, it makes sense to ensure you have claimed against every bit of allowable expenditure you can. The best person to do that for you is an accountant!

Agent.

Well I would suggest Castle Estates wouldn’t I! The legality surrounding this market means that we would suggest a professional Letting Agency to look after your property. In short, these are some of the reasons why; Ability to credit reference Tenants, Regular property visits, Time served arrears chasing systems, Knowledge of the industry and the law, Professional Inventories, Professional agreements and clauses and a network of Maintenance Contractors. What you need to do is choose one before you start. Make sure they are associated with a professional industry body and belong to such organisations as Safe Agent and The Property Ombudsman. After all, they will be able to advice you at every turn and all at no cost until such time as you yourself are earning from the property. (A genuine case of free advice)