Tuesday, 29 January 2013

Property of the Week

£100,000 - 32 Beacon Road, Beeston, Nottingham, NG9 2EY

Reduced by £10k - on market since 20/04/2012
Last property sold - 50 Beacon Road (2 bed) sold for £112k in Jun 2010
Close to Nottingham QMC Hospital, popular with NHS staff - On good bus routes - Close to Beeston town centre - Close to train station
Ready to let immediately
Approx rent - £525pcm - Gross yield = 6.3% (based on asking price alone)

Wednesday, 23 January 2013

Gayrigg Court, Chilwell, Nottingham, NG9 5ND

Gayrigg Court, Chilwell, Nottingham, NG9 5ND
On market since 14/12/2012
Last property sold - 12 Gayrigg Court (3 bed) sold for 92k in Jan 2012
Will benefit from the new tram system eventually (approx 2014/15), this should be good for capital growth
Ready to let immediately
Approx rent - £525pcm - Gross yield = 6.3% (based on asking price alone)

Wednesday, 14 November 2012

Property of the week

8 Newton Drive, Stapleford, Nottingham, NG9 7GS - £105,000
Click here to see the property on Rightmove

This property has been marketed since 15/06/2012, the price initially started at £110,000.

A similar property on Newton Drive sold for £114,950 on 27th April 2012.

The property is situated near George Spencer School which is highly sought after, it should therefore Let readily and attract long term tenants. It will also benefit from the Toton Tram service which will help with long term capital growth.


It should let out for approximately £550pcm, so you are looking at a gross yield of around 6.2% (based on the asking price alone).

Thursday, 1 November 2012

Questions & answers

We have a legal team at Belvoir Lettings that all of our landlords can make use of (via our staff),  please see some questions below that have previously been asked, and the answer:

*(info supplied by the Belvoir Legal Helpline)
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Question:
I had a new tenant move into a property whereby the electric cooker was not working for 7 days. The tenant has brought in receipts for dining out which amount to over £211 and wants reimbursement. Can he do this?

Answer:
The tenant deserves some compensation for the non-use of the cooker but would suggest this is in the ball park of £20-30. It certainly does not give the green light for the tenant to eat out at restaurants etc.
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Question:
We have a tenancy where husband was the only tenant, although his wife and children also live at property. Husband and wife are splitting and husband moved out. We issued a Section 21 to terminate the tenancy 30th August. Husband paid rent to this point. We have today received a call from the council, who advise that they are searching for a property for the wife and children but no joy as yet. She will not be out by 30th August. I don't think the husband will continue to pay rent as says not his problem. Do we just go ahead with possession order although the tenant will have surrendered tenancy but wife not moved out?

Answer:
The tenancy continues, for the tenant, until such time as he grants vacant possession, therefore it is his problem. If the wife and children do not move out his tenancy continues whether he lives there or not and he remains liable for the rental and upkeep and care of the property. The tenant has not surrendered the tenancy, as again he has not granted vacant possession. Therefore you can start possession proceedings whilst bearing in mind that until vacant possession is obtained the tenant remain liable. I suggest you make him aware of this without delay, if he will not accept this suggest he takes his own legal advice.
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Question:
Gas safety record - Tenant on holiday for the next three weeks, did not inform us of extended time away. We contacted her regarding arrangement of the test and asked if the engineer could go in with keys, but she has refused access. Should we write and say she is in breach of contract by not allowing access?

Answer:
Yes; point out it is your statutory obligation to do this test. Ask her if someone could represent her and accompany the engineer into the property. Copy your letter to the local authority, so that is on record that you tried to fulfil your obligation. Also, as you suggest, include in the letter her further breach of the terms of the tenancy agreement by going away for an extensive period without notification. Make sure that you make a diary note for the test to be done as soon as possible, which would appear to be upon her return.

Question:
A tenant has sent a text saying that someone tried to break in and could we send someone to repair the broken lock. Both the landlord and tenant say this is not their responsibility.

Ask the tenant for a crime number as this should have been reported to the police if this incident is genuine. If it is genuine then the landlord is responsible for the upkeep of the structure of the building, therefore this will be his responsibility.
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More to come!

Tuesday, 16 October 2012

Landlord looking to sell

8 Brookfield Mews, Sandiacre, Nottingham, NG10 5DG 


Please see the rightmove link for extra detail.

We are currently in the process of re-letting this property, however the owner has expressed interest in selling. We have Let this property out since June 2008 and the first tenant stayed for over three years.

Its current rental value is £695pcm, it has recently had a light re-refurbishment (décor, new carpets) and it is ready to Let immediately.

Sandiacre is popular with professionals as it is located half way between Nottingham and Derby. It is also within minutes of the M1.

Offers in the region of £175,000.

Gross yield based on asking price = 4.7%

If you are interested in submitting an offer, please let me know.

Friday, 12 October 2012

Property of the week

 9 Stevens Road, Sandiacre, Nottingham, NG10 5FU -  £95,000
LINK TO RIGHTMOVE

Click on the rightmove link above for further details.

This property has been marketed since 20/04/2012, the price initially started at £99,950.

The average sold price on Stevens Road based on the last 5 sales is £108,299 (data collected since April 2009).

The property will Let out for approximately £525pcm, so based on the asking price alone you are looking at a 6.6% gross yield. This will obviously improve with any deduction you get on the asking price.

We have Let several properties in this area before and they always go quick. This property appears to be ready to Let out immediately.

One thing to consider; the property has had two sales fall through since it has been marketed. This shows that the property is obviously popular, however I would want to confirm why those sales have fallen through. It is often to do with purchasers not securing finance, however I would recommend an in depth building survey to be safe.

Wednesday, 3 October 2012

Think rental & property management is easy?

There is a common perception that rental and property management is quite straight forward. On a lot of occasions it can be, however, as a landlord, you and the managing agent you employ are likely to face at least one unforeseen event involving one of your tenants at some stage. If not dealt with properly, you can face large fines (£1,000 - £10,000+), a caution from the police or even a prison sentence.

See one example below, this is an article I read in the 'Landlord Buy-to-Let Magazine' (Issue 35, page 20):

"Three landlords have been successfully prosecuted by Birmingham City Council following their failure to maintain a House in Multiple Occupation (HMO). 

The council started legal proceedings against Abdul Jabber, the owner, his wife, Azrah Begum, and the owner's brother, Gul Bahar, citing three breaches on the Management of Houses in Multiple Occupation. They were prosecuted for 'Flagrant, and dangerous, breaches of legislation' following a fire that occurred at the property in the early hours of 27th October 2011. The fire service was called upon to rescue people from inside the building.

Following the fire, officers from Birmingham City Council inspected the property and found that the property had not been sufficiently maintained e.g. several smoke detectors were still covered in their original wrappings.

On 29th August 2012 all three defendants pleaded guilty at Birmingham Magistrates' Court and were fined a total of £3,000 for the offences, a victim surcharge of £15 each, and were ordered to pay the City Council costs totalling £3,814.

The council has issued over 1700 orders since April 2006, ensuring that management standards and housing conditions in the private rented sector are maintained, and demonstrating that there are many landlords in Birmingham who comply with the specified regulations".

Have you ever moved 3 individual sharers in to a property? You may or may not know this, but you have created an HMO. The definition of an HMO is 'A house which is occupied by three of more unrelated persons, who do not form a single household'. This even includes a 'couple' (not married) and a single house mate. By doing this there are several regulations that you must comply with such as supplying certain size fire doors, fire extinguishers, fire blankets, wired in smoke alarms etc. There are two different types of HMO (Licensed and unlicensed), both of which have different regulations.

If Abdul Jabber and his family had employed a professional and licensed agent like Belvoir they would have been informed of their obligations as landlord...................

More stories like this to come.