英国经济

What to expect from the Bristol rental market in 2019

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1. Uncertainty 

The only truly certain thing about the 2019 rental market is it’s uncertainty.

The results of Brexit will likely effect the property market, as it is sensitive to confidence levels. However, while the outcome of Brexit remains uncertain, economists can’t currently make sure predictions about what is going to happen to future rent prices.

2. Good rental returns

Despite the unknowns of 2019, landlords are likely to make good returns on their investment. Rising rent prices and high demand for property mean landlords will have good opportunities to make money. 

Outside of London, Bristol has the highest private sector rental costs.
The median monthly private rent in Bristol is currently a staggering £873, with the most expensive streets in Bristol including College Fields in Clifton and Harris Lane in Abbots Leigh. In the current climate, landlords will be able to continue charging high rent for properties, and so maximise their rental incomes. 

Typical house prices are now nearly 10 times higher than the typical salary, while typical rents are equal to 41 per cent of typical wages.


https://www.resolutionfoundation.org/publications/a-western-union-living-standards-and-devolution-in-the-west-of-england/

3. Prices will continue rising 

High demands for rental property will continue to outstrip supply, with large numbers of tenants competing for every property. This will continue to push rent up. While some have reported a slowing of rental price increases over the last few months, it is likely they’ll continue to rise. 

Rent is expected to climb by a projected 15% over the next 5 years. This is partly because more people will look to rent as they can’t afford to buy their own homes.

The future then looks bright for landlords. High rental costs and high demand will lead to higher income. More on how landlords can further maximise their income here

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The 5 main types of Chinese landlord in the UK

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Chinese demand for buy-to-let properties has been increasing for the last couple of years. 

“Many real-estate agents and property experts in east Asia believe a new wave of investment is just getting under way”. 

https://www.theguardian.com/cities/2016/sep/29/inside-china-passion-foreign-property-investment-uk

While interest in London’s property market has declined recently, other UK cities have seen large increases in numbers of Chinese landlords. These Chinese landlord communities can be split into five groups.

1. The Chinese Overseas Landlord

A large number of Chinese landlords own and let property in the UK but live abroad. Property ownership is attractive to investors but the motivations of these landlords for buying and letting UK property varies.  Some do it for investment and prestige while others do it for emigration or education. These non-resident landlords face extra challenges when letting their property. Living abroad makes it harder for them to keep on top of what is happening their tenants, and language barriers make communication difficult. Regulations on tax for those living outside the UK are also complicated.

2. The young professional

These young people working in the UK have well-paid jobs and so extra income to invest in property. Buying back home in China is too expensive for many landlords, making property in the UK a more affordable option.

3. The academic and PhD student

A small group similar to the Chinese young professionals, these landlords are graduates who are still involved in the UK University system. They usually enter the UK property market to make income to help fund their studies.

4. The Chinese property investor

These landlords are Chinese investors living within the UK. They’ve typically successfully applied for an Investor Visa by making investments of £2,000,000 or more in the UK. Although they can’t invest in property investment, management or development companies, these landlords can own large numbers of properties in the UK. Looking to make large profits, they may be restricted by their lack of knowledge of the UK letting process and the regulations they must follow.

5. The Takeaway owner

This last landlord group is one of the largest Chinese communities in the UK rental market. They own one or more Chinese Takeaway restaurants, and buy properties with their profits to make a steady income. This isn’t on a large scale, and these landlords don’t own many properties. These landlords face the challenge of maximising rental profits while minimising the time they spend carrying out landlord duties.

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To solve the unique sets of problems these different landlords face, it’s likely landlords will look to appoint lettings agents. Rentalist is the only online property agent designed specifically for Chinese landlord communities in the UK. This means it is equipped to help solve these problems. Companies like Rentalist allow landlords to manage their properties, communicate well with tenants, break-down language barriers, and navigate the rules of UK property letting.

Read more here on how to identify the best letting agent for you.

英国经济

The real impact of the Tenant Fees Ban on landlords

What are Tenant Fees? 

Tenant fees are fees charged by landlords and letting agents that cover costs incurred during the letting process. They typically cover costs for: 

  • Basic administration
  • Referencing 
  • Credit checks 
  • Viewings 
  • Drawing up contracts

What is the Tenant Fees Bill? 

The Tenant Fee ban is expected to come in by spring 2019. It will make it illegal for letting agents and landlords to charge fees to tenants for these services. It also includes a ban on payments to third parties. 

The Government says it will create a more stable, secure and transparent rental sector. However, it is more likely to threaten the rental market.  

How will it impact landlords?

  1. Lettings agents still need to cover the costs of services. It is possible that letting agents will take the hit themselves, and will therefore see huge losses of a projected 200 million in turnover. This would not impact landlords. 
  2. It is more likely however that letting agents will pass on fees to landlords. They probably won’t pass these on completely, and so will take a hit, but they are likely to charge most of these costs to landlords. 
  3.  Landlords will then increase rent. They won’t be allowed to set the rent at a higher level at the start of a tenancy and then drop it down in order to offset the ban. However, they can increase the rent for tenants to cover the increases in their own costs.

If landlords’ cash flow position worsens, the most commonly cited coping strategy is an increase in rents for both new and existing tenants. 

http://www.arla.co.uk/media/1045728/letting-the-market-down-assessing-the-economic-impacts-of-the-proposed-ban-on-letting-agents-fees.pdf

Ultimately then, tenants won’t save money from the ban. The money for the fees will just come indirectly from rent. This means that: 

  • Less tenants will look to let privately, as more will see benefits to renting through a letting agent who can’t charge fees.
  • Property management will become more important as tenants will be able to move house more easily if they are unhappy.
  • Properties will become harder to let, as they become more expensive and less attractive. Properties are therefore less competitive. 
  • Less landlords will will look to enter the rental sector 

To summarise….

The Tenant Fee Bill is likely to increase rent and make the property market less competitive as landlords look to recoup the losses incurred by having to pay the fees themselves.  

With the ban in place, it will be beneficial for landlords to look at different options aside from traditional high-street letting agents. Using online letting options like Rentalist, that charge smaller fees for great landlord packages, can ensure properties are attractive by keeping prices competitive while maximising landlords’ rental income.

More information on maximising rental income can be found here.

英国经济

4 common landlord types and what to expect from them

Have you ever had a landlord ignore your emails when the boiler broke? Or maybe your old landlord used to turn up at your house weekly to check everything was okay? Landlords have a huge impact on your tenancy, yet no two are the same. Below are 4 types of landlord you might encounter and how they’ll effect your rental experience.

The Accidental Landlord

These landlords have stumbled into becoming private landlords because of the unstable housing market. The disadvantages of having an accidental landlord are that they don’t really know what they’re doing and will be slow to fix any problems. On the upside though they’ll probably be too disorganised to care about late rent payments or coffee stains on the carpet.

The Professional Landlord

The very opposite of the accidental landlord, these guys own tons of properties. They are part of a 2.5 million strong buy-to-let landlord community in the UK. Their vast experience and knowledge of the rental market make them easy and efficient to deal with.

But what’s the catch? 

Each tenant is just a number to them, and its likely you’ll lose when it comes to arguments over who has to change the light-bulb. 

Helpful Tip: Find out here what a landlord’s responsibilities are when it comes to getting things done around the house.

The Spare-Space Landlord 

We all know one of these. Looking to make extra money, they have squeezed a bed into their old office or shepherded their kids off to university so they can rent out the spare room.

As a tenant you’ll be living with the landlord, and so its crucial that you get on. If you do though, this type can turn out to be one of the best. Communicating with them is easy and they’ll always be on hand to help out with DIY.

The Overseas Landlord 

Non-resident landlords will probably manage their properties through agencies and so as a massive bonus you aren’t going to have to worry about your landlord turning up unexpectedly when you’re hungover in your pyjamas. There might be communication problems due to time differences and language barriers, but these can be overcome by using sites like Rentalist to make renting easier.

英国经济

New journey for us- Natwest Accelerator

We have just started the Natwest Accelerator program here in Bristol and it has been amazing so far! The people that you meet, the office space, the atmosphere are just incredible.

What you need to know about it

From the first-go Fintechs to the import and exporters, from the app makers to the risk-takers we believe in entrepreneurs. So we give them the power to start, scale and succeed. Our fully funded accelerator has 12 hubs across the UK.

Our Accelerator, Pre-Accelerator and Fintech have been tailored to empower entrepreneurs at any stage. It’s an amazing journey that is fully funded (yep, that means it’s free and we don’t even take equity in your business). We’re here for any entrepreneur who wants to grow.

We provide entrepreneurs with unique coaching, environments, digital learning and networks. Focusing on the key driver to success (that’s you, the entrepreneur) insight, support and challenge is provided by our trained coaches to take any business further, faster.

If your application is successful you will be offered a place on Accelerator or Pre-Accelerator designed to help you and your business grow and keep growing. We also have a bespoke Fintech for businesses in that sector. Read more about the programmes in the section below.

You don’t need any funding because all our programmes are completely free. Even better we don’t take any equity in any business we work with.

There’s no catch. We want to help you start or scale your business and make it succeed.

All we ask is that you commit to the programme as much as we will commit to helping you grow.

英国经济

Why you should take care when buying an old house

Old house- new house debate….. again!

What you need to know if you want to buy a house dating back to the Victorian era and rent it?

If you are new to be a landlord, our first suggestion is: Please avoid buying a house with a long history.

No one would deny that it is romantic to live in a property from the great Victoria’s era.

 Let’s face the fact: old houses are in 80% cases worse or more expensive than new ones.

Before this property is capable of being rented to anyone else, you need to pay for a package of fees, including the maintenance, refurbishment; that would be a hidden danger if you cannot use the rent to cover this.

Should you really want to buy a house with a classic taste, it is better for you to do a comprehensive quality testing before you seal the deal. You need to refer to every possible indicator and have a thorough check of the structure of the building, including the condition of the surface and mineral conditions.

Most of the old houses have a common problem, namely the foundation settlement, which will cause the house to tilt in severe cases.

Should you do find some problems with the house that you may not be able to handle them, you have to right to halt the process before the deal is completed.

However, buying an old house would be a rather smart idea, with only one condition—you need to be experienced expert in this.

Moreover, the average price of old houses would not be very forbidden. Because of this, it is possible for you to ‘buy low and sell (rent) high’ after an overall refurbishment. This approach is rather risky if you are not careful enough and solve every problem this property has.

All things considered, the most ideal and perfect suggestion for you here is to find a trustworthy agent.

英国经济

Messy tenants-how to tackle them and still be professional

Messy tenants: we al had them… But is it that bad actually?

1. Don’t get so stressed out.

It is important that you are aware of the fact that mess is just…mess. It can all be cleaned out. As long as they don’t do damage on your property, everything should be fine. Why stress when you can sit back and enjoy your time as a landlord? 

2. Communicate

The ting that we stress the most for messy tenants is communication. Ask them how they are doing, if they are okay, try to build a good relationship with them so you could tell them once in a while: “Hey how’s the house?”. They won’t feel intimidated but still will feel that they should keep the place nice.

3. Do it yourself

Why not do the cleaning yourself??

It is easy and you can genuinely make the place as you like it. Ask your renters to help you out. It will be kind of a community work for both of you.

I began my landlording career as a big proponent of the DIY approach. I was constantly running around like a madman from property to property, attempting to save money and address maintenance requests myself.
This didn’t last long, though. The final straw was when it took me three trips to Home Depot and about $500 to install a simple shelf in one of my homes — when I could have paid my contractor $100 to do it correctly on the first try. From that day on, I knew that adding “handyman” to my résumé wasn’t worth the fuss, and I started hiring pros.
Whether it’s repairs throughout the year or a deep cleanse after tenants move out, hire someone else to do the dirty work. Go out to dinner with your family instead.

More, here.

英国经济

SMALL SPACE: How to make the most of a small house/room

Make sure to have vertical lines

This will make your walls look taller, and if walls look taller, the room looks way bigger… trust us.

Storage, storage, storage

There are endless possibilities when it comes to dual-purpose furniture; from sofa beds to chairs with bookshelves in, you just need to use your imagination. For example, a vintage trunk easily doubles as a coffee table with added storage room. 
IKEA also sell a lot of pieces designed for small-space living, such as this amazing 2 in 1 lamp/stool combo.

Use bright colours, mostly white

Remeber how everyone says that they want to wear black because it makes them look thinner? Also, they hate wearing white because it has the opposite effect. That is why you should use white as a home colour. It makes everything look bigger.

All white is a fail-safe space enhancer, but there are so many ways to do it. Here soft neutrals add just the right amount of warmth, while the minimal wall decorations draw the eye to the window and the view beyond. The neat built-in wall unit keeps clutter tucked out of sight behind slick drawer fronts, creating a serene mood.

Windows!

There’s no rule that says you can’t push furniture up to a window. This bed is tucked neatly at the end of this small loft, rather than blocking the center of the room. Vertical blinds have been made to measure for privacy and to block daylight, and the window offers great reading light in the mornings.

Mirrors!

Creating the illusion of space with mirrors is a classic trick that works every time. Perfect for smaller bedrooms, a mirrored wall will visually double the space. This one does the job in style, its high position keeping the effect subtle and the antiqued surface looking elegant.

More,  here.

英国经济

Hotspots for buy-to-let in the UK 2018

If you are a landlord and you want to invest in new buy-to-let properties, here are the things you might want no know!

Some maths behind it:

We need to consider what a rental yield is:

When investing in property the most important thing at play is your ability to calculate rental yield. Whether you are new to investing in property or a landlord with a number of properties under your belt, it doesn’t matter – calculating the rental return on your properties is something that you cannot overlook.

Rental yield is the return a property investor is likely to achieve on a property through rent. It is a percentage figure, calculated by taking the yearly rental income of a property and dividing it by the total amount that has been invested in that property.

https://www.propertyinvestmentsuk.co.uk

So, we take the yearly rent from the whole property and we divide it by the sum we payed for the house/flat. Easy peasy.

Best places for buy-to-let Uk

Manchester

Manchester comes on the top of our list with 5.55% yield in July 2018. It also has Rental Price Growth 5.76% . 

Leicester

Yield: 4.88%

Rental Price Growth: 5.3% 

Kingston upon Hull

Yield: 5.02%

Rental Price Growth: 4.18% 

Swansea

Yield: 5.10%

Rental Price Growth: 4.08%

Cardiff

Yield: 4.20%

Rental Price Growth: 4.86%

Other advice

When looking for a city for buy-to-let, look for Univeristies because they make a place a hotspot. Especially good ones. Look for the best univerisities in the UK.

Also, try to find the average salary in that city, and what kind of people live there. So if you are looking for elderly tenants, Manchester might not be for you.

Look for cities which are accessible to you. Cities in which you can make inspections or fix things quickly.

More posts from this blog here.

http://blog.rentalist.co.uk/index.php/2018/08/28/types-of-tenants/

英国经济

Types of tenants

Tenants can be really different and want different things in a house.

Students

We can split them into a few groups too. The ones that party, and the ones that came to uni to study. Usually they are young, fresh, and don’t really look in furniture details or special features in the house. All they need is location and a good bed to sleep in after a night out. 

Students can be one of the the best tenants, or one of the worst. But what is amazing about them is that they always pay rent. MOSTLY.

As previously said, they look for location. This means that usually there is a set price for the properties in that area so you cannot charge more for your rent. 

Also, they cannot provide any credit reference, so think about that. Their income is either from parents, or loans. 

Given that most of your tenants will not be able to provide you with a credit reference, you are within your rights to ask for further guarantees instead of this. The most common course of action is to ask for a guarantor to pledge to meet the rent or any other bad debts in the event that the tenant defaults. This guarantor is generally a parent. You should always take a deposit of at least one month’s rent, and this should be secured immediately under the terms of the Tenancy Deposit Protection Scheme.

Young professionals

These are people who just stared working and usually don’t mind sharing a house. They are still fresh in life and like to go out, but usually not as much as students. 

They are one of the best tenants. They care about the cleanliness, they pay the rent,however, if any other career opportunity appears in their way, they will move out, so be prepared to say bye bye faster than you thought.

Families

Families offer you a financial security. These are the people who want their children to live in a good environment, so they will pay more for it and make sure it is well-maintained. They are quiet, usually stay for longer periods. 

So what’s the catch with them?

If they have children, they usually want dogs. Children and dogs can cause damage to the property, but don’t worry, usually these tenants are responsible and reliable.

Elderly people

You can rarely find them, but they are the most perfect catch, as they mostly have financial security, have time to clean and maintain, are quiet and really really nice in general. You could even get some tea when you visit them! Also, the chances are that they will stay for a longer period because they have no other prospects and usually don’t like changes

More, here.