Blogs and advice on Residential Property Management London
What is a property’s rental yield and how to calculate it
A property’s rental yield, also known as a property’s yield, is the annual return you achieve from renting out your property; in other words, it is essentially the amount of money you make in profit from rent. A property’s rental yield tells you the percentage return your rental income is generating against the property’s original purchase price.
Residential tenancy dispute What are tenancy disputes? Tenancy disputes are the formal method of resolving complications between a landlord and tenant. Tenancy disputes have the potential to be devastating to relationships between tenants and landlords, making the...
Learning to be a model landlord will reap big rewards. Property is business, and the more you put in, the more you’ll get out. Plus, it feels great to be an awesome landlord.
Thinking of purchasing a buy-to-let property? Prospective landlords need to familiarise themselves with the term ‘annual rental yield’, which is the gross amount of rent an owner is likely to receive over the course of a year. If you’re new to buying-to-let, working out rental yield is not too taxing. All you need to do is some straightforward sums.
It’s vital that a landlord has a comprehensive inventory with supporting photographs and videos at the end of a tenancy, especially when it comes to assessing what damage caused by the tenant is unreasonable and what might be considered ‘fair wear and tear’.
Wear and tear is a fairly simple principle but can cause landlords a great deal of trouble unless they understand how it differs from wilful or negligent damage caused by the tenant and what level of costs can be proposed at the end of the tenancy.
A certain amount of wear and tear is unavoidable in rental properties. Over time as tenants live in homes, some damage will occur. This isn’t a result of abuse or neglect by your tenants, meaning they can’t be held responsible for it. However, sometimes tenants do cause an unacceptable level of damage to furniture, fixtures and fittings which they’re liable for under the tenancy agreement.
What is involved in ongoing management and maintenance of a rental property?
Not all property investors are interested in being a landlord. The thought of actually dealing with all that property maintenance and tricky tenants can be very tricky The fact is, not everyone is suited to being a landlord. This can require immense amount of patience and perseverence.
As a landlord, you are constantly on call, you may find yourself dealing with a blocked sink on a Sunday morning. It is not for everyone.
There are ongoing tasks to take care of on a day to day basis. Once a tenant has moved into a property and all regulations are met;
You need to collect the monthly rental payments.
Manage repayments should your tenant fall into arrears.
Handle and respond to all maintenance enquires quickly and in a professinal manner.
Update all safety certificates as and when necessary.
Carry out regular property inspections.
A buy to let property investment is right for you of you prefer investments that are more tangible than stocks and shares.
Are willing to tie up your money for a long period of time
You accept that property prices can go down as well as up
You are willing to take the risk that you may not earn a profit on your investment
You understand and accept the additional risks that go along with borrowing money to buy a property
You understand and accept the costs and time involved in owning and running a property and the impact that this will have on your potential return.
When you become a landlord, you’re effectively running a small business and this comes with important legal responsibilities.
The main purpose of an inspection is to evaluate the overall condition of a rental property; specifically to check if everything is in good working order and reasonable state, both the interior and exterior. It’s also the perfect opportunity to ensure your tenants are behaving in an appropriate manner.
Inspections are typically conducted on a quarterly basis, but often reduced to bi-yearly after frequent positive inspections are conducted for the same tenants.
While it’s important to make regularly inspections, it’s equally as important not to make too many inspections as it could be deemed as harassment. In most cases, there isn’t a reason to make so many inspections, unless there are genuine repairs and maintenance issues that need attention.