Polmennor Road vs Pengarth Rise, Falmouth

We were talking to a couple recently, who are considering entering the buy-to-let market and they were looking for advice as to whether a property in Polmennor Road or Pengarth Rise in Falmouth would make a better investment. They were interested in 3 bed family homes and whilst decent properties in both streets let well, we wanted to do a bit more research to help them with their decision. 

The average value of a 3 bed semi-detached property on Polmennor Road is around £225,000; whilst in Pengarth Rise it is 11% less, at around £200,000.

To better understand the investment opportunities available, we considered the rents of semi-detached properties in these streets. The average rent likely to be achieved on Polmennor Road is in the region of £850 pcm, giving an average yield/return of c.4.5%.  On Pengarth Rise the average rent is slightly lower, at around £795 pcm, with a similar corresponding yield/return of c.4.8%.

However, it is also good to consider capital growth and how the value could change over time. In 2006, a semi-detached house on Polmennor Road would have cost approximately £185,000 and on Pengarth Rise the average value was £176,000. This shows that the average property value on Polmennor Road has risen by 22% since 2006, and on Pengarth Rise has risen by 14%.

Ultimately, we found both streets to be good buy-to-let investment areas with Polmennor Road showing a stronger capital growth opportunity.

Belvoir Falmouth don’t sell property - we are lettings specialists, but we do give advice on what might make a good buy-to-let investment in Falmouth, Penryn, Helston and the surrounding areas. We don’t charge for this service but we would like to manage your property or help you find great tenants!

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Smoke and carbon monoxide alarms to become the law

Landlords will be required by law to install working smoke and carbon monoxide alarms in their properties, under new measures announced by housing minister Brandon Lewis. The government says the move will help prevent up to 36 deaths and 1,375 injuries a year. The measure is expected to take effect from October 2015, and comes with strong support after a consultation on property condition in the private rented sector.

 England’s 46 fire and rescue authorities are expected to support private landlords in their own areas to meet their new responsibilities with the provision of free alarms, with grant funding from government.

 Lewis said: “In 1988 just 8% of homes had a smoke alarm installed – now it’s over 90%.

“The vast majority of landlords offer a good service and have installed smoke alarms in their homes, but I’m changing the law to ensure every tenant can be given this important protection.

“But with working smoke alarms providing the vital seconds needed to escape a fire, I urge all tenants to make sure they regularly test their alarms to ensure they work when it counts. Testing regularly remains the tenant’s responsibility.”

 The proposed changes to the law would require landlords to install smoke alarms on every floor of their property, and test them at the start of every tenancy.

Landlords would also need to install carbon monoxide alarms in high risk rooms such as those where a solid fuel heating system is installed.

 Those who fail to install smoke and carbon monoxide alarms would face sanctions and could face up to a £5,000 civil penalty.

 Alan Ward, chairman of the Residential Landlords Association said: “This is a policy that we campaigned hard for, and was a key part of the RLA’s manifesto for the private rented sector.

“Proposals for funding to provide free alarms to landlords are particularly welcome and I look forward to seeing the details of this.”

Tenant Administration Fees - Are they justified?

Ed Miliband and the Labour Party recently announced that if they win the General Election they will introduce a law to stop lettings agents from charging tenants fees for renting property in a bid to provide a fairer deal for tenants.

We thought it would be fair to set the scene as it is now.

At Belvoir Falmouth we charge an upfront administration fee to cover the cost of some of the work we do on the tenant's behalf.  It is kept at a reasonable level and is openly discussed with tenants from the outset.  All our tenant fees are also clearly listed on our website so there is nothing hidden.

I know from personal experience that not charging this fee before referencing can leave you out of pocket when a tenant changes their mind or fails the checks.

Administration fees vary from agency to agency and some do seem very high. There are also agencies who charge tenants fees for other services such as check-in, inventory, deposit registration, check-out and tenancy renewal, all of which can all get expensive.

It's unclear whether these additional charges are included in the Labour Party plans. However, the upfront Tenant Administration Fee definitely is.

So if Labour are successful, how will we make sure that we don't lose money if a prospective tenant - with no financial risk to himself - potentially puts in offers on several properties at the same time, either to hedge his bets or, worst case, in the hope that at least one agent won't reference thoroughly and find out something he wants to hide?

Pass the Administration Fee to the Landlord?

There has been the suggestion that these fees will be passed on to the Landlord instead. And maybe where the administration fee is relatively small that will not cause too much concern.  It is more likely though that a number of things could happen as a result of this action.

- Rent Increases. Landlords may put up their rents to cover their increased charges.  Does this have any benefit for the tenant?

- Self Management. Landlords may choose to do-it-themselves rather than use agents.  Most Landlords who use agents do so because they don't have the time or experience to self-manage.  Electing to do so now could mean falling foul of increasing regulations, leading to potentially bigger costs in the form of fines. Is this the best situation for the tenant?

- Focus on cost. Landlords could look for the cheapest agent. This is so often a false economy particularly with the fines that can be incurred as a result of non-compliance with legislation. Again, is this the best thing for the tenant?

So what is the answer?

The Advertising Standards Authority ruled that agencies have to advertise all non-optional Tenant Fees and to identify and provide information on any optional costs that can not be easily quantified.

Tenants and Landlords can, and should, use this information when selecting which agencies to work with.

We do understand the sentiment behind the proposal and Belvoir is completely in support of a review of the private rental sector, however in this instance the proposal will not have the desired positive outcome for tenants.

Are New Builds A Good Choice For Property Investment?

A local chap came into the office recently to discuss investing in a buy-to-let property. He was thinking about buying off plan and wanted to discuss the investment potential.

Tenants love new build property and will often pay a premium for them in the right location.

House developers build for a profit and charge a premium for their product, so after buying, the prices may fall or hover around their sale price for a year or two and then start to rise in line with the rest of the market.

However for new owners there are advantages to new build properties. They come with guarantees and when minor problems crop up much work can be done under warranty (such as a problem with the newly installed cooker, extractor fan or the odd leak which appears as a snagging issue)

However pay attention to service charges, these can dent rents.

Belvoir Lettings Falmouth don’t sell property - we are lettings specialists, but we do give advice on what might make a good buy-to-let property in Falmouth and the surrounding areas. We don’t charge for this service but we would like to manage your property or help you find great tenants!

Is Client Money Protection important to you?

This week Monday morning began with a call to the office from a new Landlord:

‘Hello, I am about to complete on a flat in Penryn and I’d like to know what you would charge to manage it?’

Nothing to complain about there and it’s always nice to talk to a new Landlord. We had a brief conversation. I found out more about the property and the Landlord, and he found out more about the services we offer at Belvoir and how we can meet his requirements. We’re due to talk again later this week, so all very positive.

But one thing really struck me about this Landlord, his last question to me was ‘Do you have Client Money Protection?’

He’d heard horror stories about agents using the rents they receive to support their businesses, resulting in Landlords not receiving rents for several months, and in the worst cases the agencies going out of business and that rent never being passed on to the Landlords.

Client Money Protection (CMP) gives peace of mind to Landlords AND tenants by ensuring that your money is safe and isn’t being used inappropriately.

At Belvoir Falmouth we’re part of the National Approved Lettings Scheme (NALS)  http://www.nalscheme.co.uk/ and their CMP scheme, however there are other similar schemes such as ARLA and RICS.

We recommend following this Landlord's example and asking any agent you talk to whether they have CMP and then looking at that scheme's website to check they’re up to date.

Student Letting

Have a listen to our latest podcast from Pirate 2 Homes & Gardens Show.  This week it's all about student letting.

https://soundcloud.com/elvoiralmouth/belvoir-segment-12-student-letting

Are You a Pet-Friendly Landlord?

At my letting agency business in Falmouth we are proud members of the Lets with Pets Scheme run by the charity Dogs Trust, a scheme supported by the National Approved Letting Scheme.

Instinctively, most Landlords would prefer not to rent their property to tenants with pets. Almost immediately concerns are raised around issues such as the noise of a barking dog, furniture being scratched by sharp claws on a cat and the occasional ‘accident’ ruining carpets. This can make it very difficult for pet owners to find a suitable home.

However, nowadays roughly 48% of the population have a pet, so taking a more pet-friendly approach can dramatically increase demand for your property!

Our experience is also that people with pets tend to be looking for homes for the longer term. Anyone who’s ever moved house with a cat can tell you how traumatic it can be, so it’s not something to do on a regular basis.

Obviously concerns will still exist but these can be mitigated by asking for a larger deposit, inserting additional clauses in the Tenancy Agreement and agreeing that the tenant will carry out a full professional clean at the end of the tenancy. Also, you can ask key questions up front such as whether a cat will need a litter tray or cat flap, and how long a dog will be left at home alone.

With 20% of homes in our area being privately let, opening up your property to pet owners could give it the edge!

If you're a Landlord considering whether to open up your property to those with pets, or you're a tenant finding it impossible to find a property with your pet in tow, please give us a call to discuss your situation.

The Lets with Pets scheme also has lots of helpful advice and guidance for landlords and tenants available on their website Lets with Pets

Don't neglect your rental property over Christmas & New Year!

You can never fully switch off from your responsibilities as a landlord, whether that be taking on new tenants, completing deposit disputes or making sure your property is kept in good condition over the festive period. There are a couple of things you can do to make sure your properties are in order, ensuring the safety of your tenants and hopefully a stress-free Christmas and New Year for you.

Are your tenants leaving the property over Christmas & New Year?

The deposit protection schemes received a lot of claims following the severe winter weather in 2010. The majority were the result of burst or frozen pipes at student houses where tenants had left the property to spend Christmas with their families.

In the worst cases, burst pipes resulted in damage to carpets and flooring, kitchen appliances needing replacing and claims for lost rent whilst damage was repaired. Some landlords faced repair bills of several thousand pounds.

To avoid this stress and expense, you should contact your tenants to check if they’re going away to ensure that the proper measures are taken to avoid this kind of damage.

Here is some guidance on keeping your property safe during cold spells:

1.  Insulation – Ensure water pipes and tanks are lagged and insulated.

2.  Heating – Advise tenants to keep the heating on, at a minimum of 15 degrees, if they’re going away. It’s also sensible to open the loft hatch allowing air to circulate and prevent pipes freezing and bursting in the loft.

3.  Boiler servicing – Ensure that gas and oil boilers are serviced every 12 months.

4.  If the property is going to be empty for an extended period it’s sensible to have the heating/water system drained by a qualified contractor.

5.  Chimneys – Ensure they are swept once a year by a professional chimney sweep, ideally before the tenant starts using the fire.

6.  Smoke Alarms – Check that smoke alarms are fitted in all properties and that they are all working properly. Replace batteries as necessary. 

5 Myths about Student Letting

Over the years, many misconceptions have surrounded student living and the properties they rent, but the majority of these simply aren’t true. Here, we uncover five total myths...

1.     Students don’t care about location

Whilst students may have limited budgets, this doesn’t mean they’ll live anywhere in pursuit of cheap rents. Ultimately, they’re looking for somewhere within a couple of miles of their University campus and the town centre; so it’s crucial that you find a property to rent that’s in the right area.

2.     Students don't respect property

With students now demanding more, and properties with high quality furnishings, this myth is definitely no longer the case. Failure to respect the property, and landlords would struggle to find student tenants.

What this does mean, however, is that landlords with student accommodation to rent will need to invest in quality furniture and fittings, with a modern interior. Don’t scrimp with cheap furnishings, as it’ll need to withstand wear and tear, and in the long run, you could end up forking out for replacements.

3.     Students don’t mind living in grotty properties

Again, this is another total misconception – students today look for a comfortable property that they’ll enjoy living in. It’s worth acknowledging that whilst student tenants may not demand the best of furnishings and decor, their parents most certainly will if they’re asked to be a guarantor for the rent!  A scruffy, dirty student property will most definitely struggle finding (and keeping!) quality student tenants.

4.     Students don’t pay much in rent

While it's true to say that students would prefer to pay a low rent because of their limited budgets, it isn't true to assume that all students are like this. There is a growing demand for quality accommodation which means that students are willing to pay realistic market rates to enjoy these properties.

Additionally, when a house is recognised as an HMO, the reality that the property has undergone inspection to ensure it reaches a certain standard, will draw in students looking for good-quality housing; meaning higher rents can be charged.

5.     Student houses are too much trouble

Again, the vast majority of students are decent, hard-working people who have been undermined by the antics of a very small minority. So while there are some badly behaved students, most students today have too much invested in their education to cause problems for their landlord or their neighbours. Additionally, most students sign up for a year-long tenancy agreement, ensuring the consistent payment of rent – even when they’re not residing in the property during the summer months.

Now the myths have been uncovered, here is a total truth about renting to students: 

Student properties for rent are a good proposition

Essentially, the student accommodation sector is a buoyant one, and looks to expand with more and more students entering University each year in order to secure their future job prospects.  As such, the yields are better than general residential letting making student lets a good investment for landlords, provided they provide good quality accommodation and maintain their properties well.

There are many misconceptions about students and their demands for student accommodation; but in today's world, things have changed and their demands have dramatically changed because going to University is an expensive proposition.  As such, landlords are now catering to a more discerning type of student tenant. Those who get their offering right will enjoy quality tenants who pay on time and are a delight to have in the property.

Belvoir Lettings Falmouth don't sell property - we are lettings specialists, but we do give advice on what might make a good buy-to-let property in Falmouth and the surrounding areas.  We don't charge for this service but we would like to manage your property or help you find great tenants!

Why not call Annabel Leach on 01326 210304 for an informal chat or pop in to our office at 46 Killigrew Street, Falmouth TR11 3PP.

www.belvoirlettings.com/falmouth

Email:  annabel.leach@belvoirlettings.com

A cottage in Penryn vs a terraced house in Falmouth for better rental yield?

We were talking to a landlord recently, who was considering whether a 2 bed cottage in Penryn or
a 2 bed terraced house in Falmouth would make a better buy-to-let investment. He was particularly interested in which would offer a better rental yield. We set about doing some research to help him with his decision.

We have been reviewing current properties for sale at these locations and, at the time of writing
this article, there is a 2 bed cottage in Chapel Lane Penryn with a recently reduced asking price of
£149,950. This should achieve a market rent of c. £675 pcm giving an annual gross yield of 5.4%.
More if the actual purchase price achieved is lower!

This property last sold in 2008 achieving a sale figure of £129,000 meaning it has increased in value by over 16.2% since then, although some cash has been spent refurbishing it.

On Trevarth Road in Falmouth there is a 2 double bed end terraced house advertised with an asking price of £167,500. This house was last sold in 2007 for £154,000 showing an increase in value over a similar period of 8.76%. This property should achieve a rental figure in the region of £700 pcm giving an annual gross yield of 5.0%. However the downstairs bathroom can be a negative feature.

Ultimately, we found both properties to be good investments for rental yield but it will come down to careful selection of the property to achieve the best returns.

Belvoir Lettings Falmouth don’t sell property - we are lettings specialists, but we do give advice
on what might make a good buy-to-let property in Falmouth and the surrounding areas. We don’t
charge for this service but we would like to manage your property or help you find great tenants!

Why not call Annabel Leach on 01326 210304 for an informal chat or pop in to our office in Killigrew Street, Falmouth. 
www.belvoirlettings.com/falmouth  
Email: annabel.leach@belvoirlettings.com

Buying to Let - 2 bed cottage in Penryn

A cute 2 bed cottage located close to Penryn Town Centre with a separate living room, kitchen/dining room, two bedrooms and a modern wet room. Situated off the main route along an ope, this character property has a useful outside storage area and is within easy distance to the schools and university. With a likely monthly rent achievable of at least £700 (£8400 p.a.) and on the market for £154,950 this will give a gross return of 5.4%. Chip it down to £150,000 or lower and you will increase the return!

Belvoir Falmouth don’t sell property - we are lettings specialists, but we do give advice on what might make a good buy-to-let property in Falmouth and the surrounding areas. We don’t charge for this service but we would like to manage your property or help you find great tenants!

Call Annabel Leach on 01326 210304 now for a chat!

Mandatory Redress Scheme - 1st October 2014 - Is your Agent Compliant?

1st October 2014

New legislation that comes into effect today will make it a legal requirement for letting agents to register with an approved redress scheme.

As a Property Ombudsman Scheme member already Belvoir Falmouth are fully compliant and do not need to take any further action.

We have included the Property Ombudsman Scheme Q&A below which should provide you with further reassurance and peace of mind that we are fully covered. If you are with another Agent then you may want to consider switching to Belvoir.

You can find further updates by following on Twitter for any breaking news via @TPOmb

 What does ‘mandatory redress’ mean?

The government has introduced new legislation from 1st October 2014, which will make it a legal requirement for every letting agent and property management agent in England to be a member of an approved redress scheme.

The Department for Communities and Local Government (DCLG) approved The Property Ombudsman (TPO) scheme earlier this year, which ensures every TPO member is fully complaint with the new rules.

Letting agents: who are registered with TPO, what action do they need to take?
None - we’re completely covered! We’re fully compliant under the new legislation and no further action is needed. By registering with TPO we comply with the legal requirements by offering landlords and tenants a route to free, fair and impartial dispute resolution through the TPO redress scheme.

TPO is the largest scheme of its kind, with more than 11,500 lettings agents already registered with TPO and following the scheme’s unique Code of Practice, which represents best practice in the industry and has been proven to raise standards.

How will this new legislation be ‘policed’?
Trading Standards may well carry out random checks and mystery shops to ask agents to prove which scheme they are registered with, at which point you can provide them with a copy of your TPO membership certificate or unique membership number.

Any letting agent that has not signed up to an approved redress schemes will face a fine of up to £5,000.

Are you registered with an approved scheme?
Yes. We are registered with TPO, a government-approved redress scheme which is the largest of its kind with 65% of UK letting agents following TPO’s unique Code of Practice. Our membership with TPO means we fully comply with the legislation, which means in the event of a dispute arising, if you are unsatisfied with the result of our own investigation, you can have your complaint independently reviewed by the Property Ombudsman, which provides a free, fair and impartial service.

Are there any fees to pay for using TPO?
There are absolutely no fees or costs involved for a consumer to refer a complaint to the Ombudsman at TPO - regardless of how many complaints TPO reviews from a consumer. TPO is a not-for-profit organisation and is completely independent.

What is TPO?
TPO is the largest and longest-running property dispute resolution service – specialising solely in property redress. Their 24-years’ experience and unrivalled in-depth knowledge on all things property-related enables TPO to review complaints fairly and independently.

Further information about TPO and the complaints process can be found via www.tpos.co.uk, which also has a ‘Find a member’ tool where you can search for registered agents by company name, town and/or postcode.

WHY NOT CHECK TODAY AND SEE IF YOUR AGENT IS REGISTERED WITH A SCHEME?

Are You Interested in Buy-to-let in Falmouth?

Thousands are doing it across the country to prop up their pension, so should YOU be joining them?

The number of buy-to-let loans being taken out is at its highest level in four years.  Around £1 in every £7 lent on mortgages last year went to landlords.

There are a number of reasons for this.  Falling house prices in many parts of the country have prompted existing landlords to snap up more properties.  Banks and building societies, who are worried about lending to ordinary homebuyers, are happy to lend to landlords, who are viewed as less of a risk. 

Added to that, hundreds of existing homeowners are dipping their toe into buy-to-let for the first time. Some are doing it by keeping hold of their existing property when they move into a new home, and renting out the old one. Others, who don’t want to move, simply spot a bargain in their local area.

Meanwhile, with the dire savings rates on offer at banks, the returns on buy-to-let look appealing.  The average gross rental yield in Falmouth and the surrounding areas - a figure which shows rental income as a proportion of the value of a property - is between 4 – 5%.  By contrast, the average fixed-rate bond invested for 3 years currently pays around 2%.  There is also huge demand for rented flats and houses.

Before you get carried away building your property empire, you need to be sure it is right for you. It is a huge commitment, and though you could make a profit on your property, it needs to be treated as a business.

Belvoir Falmouth don’t sell property - we are lettings specialists, but we do give advice on what might make a good buy-to-let property in Falmouth and the surrounding areas. We don’t charge for this service but we would like to manage your property or help you find great tenants!

Call Annabel Leach on 01326 210304 now for a chat!

Email:  annabel.leach@belvoirlettings.com

www.belvoirlettings.com/falmouth

Buy-To-Let - Is Falmouth a good place to buy?

We have recently been speaking with a number of landlords entering the buy-to-let market about the importance of a balanced portfolio, when buying and renting out property.  The balance between buying properties that offer good monthly returns (high yields) but quite often offer poor capital growth (i.e. they don’t increase in value that much over the years compared with the average) versus properties that do go up in value more quickly but often offer a lower yield.

Rental prices in Falmouth range at the lower end from around £500 per month for a studio apartment to around £1400 for a large 4 bed detached house (not including the student market). An average 3 bed semi-detached house can be rented for around £825 pcm depending on location and quality.  As is well publicised, Falmouth is a popular choice with people relocating from other areas and good quality residential rental properties are in high demand.

So, does that mean you should buy a property in Falmouth as a buy-to-let investment?  Before we can answer that, you must really consider the capital growth vs yield question. Some buy-to-let investors often make the mistake of chasing yield over capital growth.  Some investors believe that by chasing high yielding properties, in say the less popular parts of Falmouth, they will make a faster profit than waiting for capital growth.  The problem with this is that to achieve a high yield you usually have to compromise on capital growth.

Therefore it would seem the most logical solution is to find a high yielding property in a strong capital growth area but these simply do not exist.  This is because there is generally a contrary relationship between yield and capital growth so the higher the yield, the lower the capital growth and the higher the capital growth, the lower the yield. Property investment in Falmouth is about balancing the two.

Not many landlords, especially those who use buy-to-let mortgages, can afford to service high levels of debt without a reasonable yield, which forces them to look at ways of making an investment affordable by finding the right balance between capital gain and yield.  

Yield is critical to the survival of a buy-to-let investment but it’s not the key to building wealth. Don’t chase yield for yield’s sake, but rather chase capital growth with enough yield to make it serviceable because in the long term it is the capital growth, not the yield that will generate you the wealth and the financial independence you may be seeking.

Belvoir Falmouth don’t sell property - we are lettings specialists, but we do give advice on what might make a good buy-to-let investment in Falmouth and the surrounding area. We don’t charge for this service but we would like to manage your property and help you find great tenants.  Call Annabel Leach on 01326 210304 or drop in to our office at 46 Killigrew Street, Falmouth for a chat.

Essential Questions to Ask Before Choosing a Letting Agent

Belvoir Lettings Falmouth reveal the essential questions you should ask an agent before signing on the dotted line...

Offering valuable services for landlords both experienced and new, a good property management agent can form a key part of your property investment strategy. And with a nationwide surge in lettings – and an influx of new agents entering the market on a monthly basis – there are certainly plenty to choose from... but making the right decision is essential for your property portfolio success.

“You need to ensure that the person or company you are trusting with your investment is going to provide you – and your future tenant – with the level of service you both require,” explains Annabel Leach of Belvoir Falmouth.  “A poor agent can potentially lose you a great tenant and cost you a lot of revenue if the service they provide isn’t of a high standard.”

So, how do you know which agent is the right one for you... and your property?

Key question 1: How will you advertise and market the property?

It is important to ask this question as you need to see that the company you choose will market your property in as many different ways as possible.  This will ensure you attract many quality tenants in a short space of time and help avoid the dreaded ‘void’ when a property is left unoccupied.

Will your agent use all available media?  For instance, do they have a highly-optimised website and will your property be seen on Rightmove, and the other popular property web portals?  How about a ‘To Let’ board to attract on-street attention and a window display at the agent’s office to further support this?

And let's not forget social media either.  Used creatively, Facebook and Twitter can let homes.

Key question 2: On average how long does it take for you to let a property?

Understanding how long it will take to find a tenant allows you to plan ahead.  Perhaps you need to complete some maintenance work before re-letting?  Or, importantly, you may need the rental income to pay your mortgage or other bills.

Another important factor is your asking price.  If you have time on your hands you can possibly hold out for a higher price. But, if you need to let quickly, you may have to be more realistic about the price you are asking.

Key question 3: Do you do credit checks?

“You need to make sure that the agent will do in-depth checks on prospective tenants so that the risk of the tenant falling into arrears is minimised,” says Annabel.

“At Belvoir Falmouth we carry out credit checks using Experian as this gives us an in-depth report of a potential tenant’s credit file and previous addresses.  It also shows if they’ve ever received a CCJ or have been declared bankrupt.  We also seek employment references to confirm their income, plus landlord references if they are currently renting.

 Key question 4: Have you already got a waiting list of tenants looking for properties?

You need to ask this question as many agents will claim to have tenants waiting for a property but are these claims genuine?  Does the agent register and pre-qualify applicants?  A pro-active agent will discuss the needs of all prospective tenants (applicants) in order to ascertain if they are serious motivated movers or 'serial lookers'.  If the agent takes time to talk to every caller they will gain vital information, such as where the tenant wants to move to, why and when.

Key question 5: How do you ensure you’re up-to-date with current legislation?

Asking this question is vital because if your agent isn’t keeping up-to-date with legislation, then it could potentially make you vulnerable... especially if the tenancy turns sour.

At Belvoir we actively make sure we are kept up-to-date with changes to lettings legislation. Our Central Office provide many staff training days that are available for us to attend and they keep us informed of any changes enabling us to ensure that our documentation fully complies with legislation.

Key question 6: How often will you visit the property once tenanted?

“This is a great question to ask because there are some agents who don’t carry out periodic inspections on properties,” says Annabel.  Checking on a property is advisable and we find this a great time to catch up with our tenants and see how they are getting on. It is also a good opportunity to assess any repairs that need to be addressed.

At Belvoir Falmouth we do our first inspection within two months, then continue to carry out regular inspections throughout the tenancy.

Key question 7: What services do you offer that go beyond the usual services expected from an agent?

Some agents will offer more services than others, so it’s definitely worth finding out exactly what they offer... or don’t.

For example, some will offer an out-of-hours emergency phone line for tenants, while others may provide use of their contractors for maintenance issues.  Perhaps the agent is happy to carry out viewings outside of office hours, or will make themselves available to accompany you to court in the event of an eviction hearing?  Maybe they offer educational workshops and seminars for landlords, or perhaps they are happy to advise on potential investment opportunities in the local area?

Each agent will offer their own bespoke range of services... but without asking the important key questions it’s impossible to access whether the agent you have short-listed to manage your property will effectively fulfil your needs.

Key question 7: How can I be sure my money is safe?

The best bet for a landlord is to use an agent that is a member of a professional body such as The National Approved Letting Scheme (NALS) or The Association of Residential Letting Agents (ARLA).  To become a member, the agent has to have their accounts audited regularly by a qualified accountant and has to hold Client Money Protection Insurance, so if there are any problems, liability to clients is covered.   You can check if your agent is in NALS or ARLA by searching at www.nalscheme.co.uk  or www.arla.co.uk . 

A good letting agent will also be registered with an ombudsman scheme such as The Property Ombudsman see www.tpos.co.uk .  Lettings and property management agents who join the TPO also subscribe to the Code of Practice for Letting Agents. 

 20 questions to ask an agent before you commit – at-a-glance ticklist

1.         What are your rates?  Does that include VAT?

2.         How do you advertise and market your properties?

3.         Do you put up a ‘To Let’ board?

4.         Have you got your own website and/or phone app?

5.         What kind of rental return can my property achieve?

6.         Have you already got a waiting list of tenants looking for properties?

7.         How long does it take for you to let a property on average?

8.         How do you do credit checks?

9.         How long have you been established and what is the company history?

10.       Do you advise on investment opportunities?

11.       How do you ensure you’re up-to-date with current legislation?

12.      How quickly will you start marketing a property once a tenant gives notice?

13.       How often will you visit the property once tenanted?

14.       Do you have an out-of-hours emergency service?

15.       Do you have trusted contractors or tradesmen that you use?

16.       How often will you communicate with me and the tenant?

17.       What’s feedback like from tenants and landlords? Do you have any testimonials?

18.       Have you won any industry awards?

19.       What services do you offer that go beyond the usual services expected from an agent?

20.       What trade organisations do you belong to?

Buy To Let Property Review - Falmouth

On the market with a local agent is this ex local-authority house in Pendarves Road with an asking price of £150,000. 3 bed semi Pendarves Road Falmouth

Pendarves Road in Falmouth comprises 81 homes.  Most of these properties were built in the mid 1930's.  Pendarves Road has an average current value of £146,083, which makes it one of the least expensive places to live in TR11, where the average house price is £244,148.

The asking price seems to be realistic however, as the property appears to be rather outdated, it is likely you will need some spare cash to prepare it for the rental market.

The property has a large power-shower which will be a selling point to some tenants, although a bath/shower combination tends to tick all the boxes.

Once in a suitable condition, it is likely that this property could achieve in the region of £750 - £800 pcm, giving a gross yield of c. 6%.

Three bedroomed semi-detached houses are always in demand in Falmouth and with some lovely views over to the river to the rear and a reasonable amount of on-street parking, this property would make a good investment purchase if the price was negotiated carefully.

Belvoir Falmouth don't sell property - we are lettings specialists, but we do give advice on what might make a good buy-to-let investment in Falmouth and the surrounding area.  We don't charge for this service but we would like to manage your property or help you find great tenants!

Annabel Leach Tel: 01326 210304  Email annabel.leach@belvoirlettings.com.