22nd November 2021
What Has The Pandemic Taught Us and How Has The Market Changed?
So what is the 'Halo Effect'? In a very interesting snapshot of the latest 2021 rental stats produced by Zoopla it appears that whilst the rental figures for city centres are still falling the surrounding commuter belt is rising and demand outweighs supply! This is prevalent in most of our major cities including London, Manchester, Leeds, Birmingham etc. Central Birmingham for example has shown a decrease in rental values by 3.4% but in surrounding boroughs such as Bromsgrove, Sandwell and Wolverhampton rents grew by an average 5%. The Halo Effect! The main reason for this appears to be COVID-19 and the numerous lockdowns we have had to endure. People moving out of City Centres to find more indoor and outdoor space. Houses with gardens in these areas are experiencing the largest growth. So, should this change your strategy if you are buying a rental property or is this a temporary glitch? It is very difficult to advise either way at the moment but i do believe this pandemic has and will change the way we live and work for many years to come. Inner Cities will bounce back as we exit this pandemic but I do believe 'The Burbs' is where I would be putting my investment money at the moment and for the long term. ...
Lettings are your bread and butter … how about increasing your profit by 40% AND delivering a better service to your clients and tenants? Lettings are a vital component of every estate agency, but managing a letting business is hard, costly and time consuming. Doing it right isn’t easy and demands a high level of expertise and experience, which doesn’t come cheap. Not only is it essential to employ experienced property managers, there’s a whole bunch of annual licenses, training and fees to pay. Including; Client Money Protection Scheme Professional Training Management Software Non-resident Landlord Scheme MARLA Membership Bank Fees for client accounts The list feels endless when you’re running an agency. But, the value of running a lettings business speaks for itself, despite the high costs there’s still plenty of profit to be made. But what if there was a way to offer better service, without any of the management headaches that come along with rental properties, and increase your letting profits by up to 40%? Sounds like one of those ‘too good to be true’ type of deals right? Well, it’s actually not as far fetched as it sounds. It all comes down to outsourcing. Not off-shore, or to an impersonal call centre, but to a highly professional (and focused) property management company who have better systems, more experience and a one stop shop for both tenants and clients. You get to keep the profits and drop the costs. Your clients don’t see it as outsourcing, because the whole service is branded with your name. Both landlords and tenants will see an immediate...
COVID-19 CRUNCH – what your tenants are thinking about. Many tenants (new and existing) are thinking about their position in ways none of us could have predicted. Some are asking for protection during times of lockdown, payment holidays if their income is interrupted because of a national crisis, or even break clauses that allow them to terminate a contract early should their income be permanently affected by COVID. Is it feasible to offer this type of coverage for tenants? How would that impact rental value? Or is there another way to tackle the issue? What most Landlords, and Tenants don’t realize is that Tenants have a basic form of these rights anyway! That is, if a Tenant is made redundant, can no longer afford the rent, and requests to leave during a fixed term period, the law stipulates that you must ‘mitigate your losses’. This means you must make every effort to replace them as a tenant and release them from their contractual obligation. COVID-19 specific clauses It is feasible to offer COVID-19 specific clauses that, (a) Will help let your property and, (b) Help you achieve a better rent? The short answer is yes and yes. In reality the government already protects tenants from being penalized if they need to get out of a lease owing to unforeseen circumstances. So, why add a new clause? The key to success with any tenant is communication. The more comfortable they are with you, the more likely they will reach out to have difficult conversations. It’s common sense really, but sadly a lot of property management personnel in agencies have been trained to treat the tenant as the enemy. A lot of property admins regard the...
What Has The Pandemic Taught Us and How Has The Market Changed?
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