The Lettings Valuation – Its not just about the money

When you have a property and have decided to Let, this is the time to call you chosen local letting agent to visit the property. This is known in the industry as the Market Appraisal though some agents still call this a valuation. Technically this is not correct as a Lettings Valuation would simply indicate giving a suggested price which would not provide a Landlord with enough information to make informed decisions about letting on its own.

An agent should be able to provide you a rental price based on their opinion of the property, their experience of what has let recently in the area and in some cases as a mathematical calculation of the return on investment. The latter being not necessarily the correct way to price a property on its own merits.

As part of the process in determining what price to put the property on the market, an agent should be able to show you some comparables of what they have let in the area recently. They should be able to clearly indicate the condition and presentation of the property, what it went on the market and what it finally let at, the term of the tenancy and the caliber of tenant it attracted. A good Lettings professional will walk through the property with you and make suggestions. A little repaint here and there or new carpet could make a huge difference. Most people rely on their senses, Smell, Sight, Touch, Hearing and make “gut” feeling impressions based on this. If you have pets or smoke, the smell may be off putting, if the property has noticeable defects or falls down in some areas on presentation then it may give the impression of being well maintained likewise if surfaces are sticky or grubby to touch. Finally if the property is situated by a busy road or rail line and is noisy this may reduce a possible valuation. All these things need to be taken into consideration when making suggestions to enable the Landlord achieve the best rental possible.

The Lettings professional should then discuss with you what you want or need to achieve. If expectation and reality are poles apart the Letting Agent should be able to make suggestions to close the gap. This may depend on whether you have borrowing by means of a mortgage on the property.

Whilst it may be tempting to go with the highest price valuation, it’s important to get good justification from the agent as to how achievable the valuation is. Price the property incorrectly and you could waste weeks or months waiting for the right tenants to come along and end up accepting a lower than expected rental in the end. Once the void period is calculated as lost rental, nine times out of ten the Landlord would have been better letting the property a month earlier at the lower rental than waiting for the higher figure. Over-valuing is a well known trick that some more unscrupulous letting agents use to “win the instruction” as once you are in a sole agency agreement they can work on getting offers and eventually negotiate a lower price. When choosing your letting agent, price should only be one factor in the decision making process as the whole relationship with the letting agent should be considered with the view to this being a long lasting relationship based on mutual trust and respect.

SurreyLets director, Sally Asling believes that ensuring a new Landlord is supplied with all the information regarding letting their property in Surrey. Sally Says “On a market appraisal I would typically start with a walk through making notes of any defects that may need to be put right before letting. I look for issues that may fall under health and safety for lettings or for things that may cause a problem with any current legislation. Its amazing how many properties have potentially hazardous defects! After explaining this to the prospective Landlord we shall then typically move on the tenant they are likely to attract and I demonstrate comparitable property in the area. We discuss how the property should be presented and how best to market the property and what timescales should be expected. We talk about a realistic achievable price and the on the market price, along with insurances that can leave Landlords fully protected”

If you are thinking of letting your property in the Surrey area, Sally would be delighted to hear from you. SurreyLets can be contacted on 01483 282470 or by mailing info@surreyletsonline.co.uk

Reluctant Landlords ever increasing as we start 2012

Latest research from A.R.L.A (Association of Residential Letting Agents) indicated in its 3rd Quarter Annual Report that its members have reported that 47% of properties coming ont the market were from new Landlords who either couldnt sell or have decided to make a move without selling their own home perhaps waiting for property prices to rise. This is up on the 40% as reported at the start of 2011, but is a significant increase.

The further North the higher this percentage is, with a lower 17% of Landlords being termed “reluctant” in Central London.

Whilst the PRS (Private Rental Sector) is in dire need of more stock to meet the demand from prospective tenants, it’s also worrying that in these touch economical times these new Landlords may not realise that the practice of Residential Lettings and property Management is currently an unregulated business in the UK. Many Residential Sales companies whom are struggling have opened up Lettings departments, are cutting corners and more importantly have no professional association and do not hold client money protection insurance. If the financial situation worsens, these agents can “up and leave” leaving the Landlord abandoned and out-of-pocket.

Our advice to any first time Landlord, irrespective og how much experience they have in property through helping family and friends, should get in contact with an ARLA agent and take proper advice or returns, term, legalities and understand the services available to them.

SurreyLets is an ARLA lIcensed Letting Agent and would welcome and queries from Landlords who are considering letting their home.

Property Inspections – An insight gained

Guest Blog post by Ms Harri Snelling

I’m going into the second year of a Property and Marketing degree course in September and I am currently on an intern with Surreylets; looking at how the reality of the lettings Industry is.

This week I have been doing some routine property inspections with the director of SurreyLets, Sally Asling, and I thought I would share my first impressions.

In carrying out the Routine Property Visits, I gained a rare glimpse into not only how people live, but how they treat other people’s properties. In most visits I have seen that tenants are fully capable of looking after things with great care, and maintaining the property beautifully. However in some exceptions to this, I have seen that people can show little respect for property that isn’t theirs.

In carrying out routine property inspections which are described as a “visual walkthrough of the property” you are able to spot initial signs of people not looking after the property in the way they should or in the way in which the tenancy agreement dictates they should. In seeing these small problems early, then bigger, more expensive problems can sometimes be prevented.

I have found that expectations and realities of how people would treat someone else’s home can be quite different. I think it’s important to not be too naïve in thinking that everyone will treat something with the same great care as you yourself would, but can instead not treat a property as they should. Small things such as putting up large hooks with raw plugs which will leave a large hole in the wall and will require re decorating at the end of tenancy show little respect for the even plastered ceilings.

In one property I visited this week, there was a significant crack in the ceiling running the width of the property. On further investigation this ran parallel to an external join in the felt flat roof. On closer inspection the crack showed initial signs of water penetration. The tenant hadn’t noticed this fault as it was not very visual and difficult to show up on photography. However by seeing this crack in the early stages before the problem becomes more serious, as a letting agent we can offer the Landlord as part of the Full Management service, the option of getting a roofing contractor to provide a full report as to the nature of the problem.In the same house the tenant had allowed moss to grow on the external side of the window in the porch. In not adequately maintaining the property damage could be caused by the moss to the window embedding itself and causing costly repairs. In carrying out the inspection the tenant could be instructed to clean this, and prevent damage being caused to the window.

A letting agent during inspections becomes the ears and eyes of the landlord. In carrying out inspections a Landlord can be sufficiently informed enabling them to be proactive instead of reactive towards any problems.

I have felt it a privilege to be allowed into another person’s home and it’s become evident the importance of carrying out routine inspections for a Landlord. I can appreciate that whilst a letting agent cannot dictate how people live, it is important to recognize that certain standards must be met by the tenants in order that long term and expensive damage is not cause to the property. The Routine Property Inspection provides an opportunity for the Tenant to discuss any concerns they have with the property and for the agent to assist in ensuring the property is kept to standard giving appropriate and timely advice on maintaining a property in an acceptable way.

Short Term Lets – A great way to maximise your rental return if you are in a key event area

Short term lets were once frowned upon not only by Letting Agents but by Landlord clients alike mainly down to concerns over the legalities of letting on this basis and on the work involved in turnover. However, done correctly short term lets can be a profitable convenient way to fill voids and maximise rental income especially for people with properties in key areas of National Events like Henley regatta, Wimbledone Tennis, Racing at Epsom and of course the forthcoming Olympics!

With the right kind of support that you can expect from an ARLA regulated Letting Agency to guide you through the legalities, there is no reason why you cannot maximise your annual income by slotting in a short term let around key events.

The rise in Short Term Lettings popularity have spurred ARLA to share some Top Tips on how to approach the Short Term Let:

1. Pre-agree Bills- Tenant payment of utility bills over a short term can be problematic, therefore it is best to set a price to cover costs at the start of the rental period. This avoids the occasionally problematic issue of recouping or disputing costs.

2. Prepare the property for rent-As with long-term lets, it is wise to thoroughly clean the entire property and insure the small details, such as replacing light bulbs and clearing outside areas are done before prospective tenants visit or move in to the property.

3. Be aware of tenants expectations- With short-term lets, tenants often expect amenities that are not usually offered in the private rental sector; a common example is the assumption that the landlord will a provide cleaning and laundry service for bedding.

4. Be careful over payment -Offering a variety of payment options, where possible, can encourage prospective tenants. It should be noted, however, that taking cards can often represent an unacceptable degree of risk for the short term landlord. Regardless of payment type, it is always worth ensuring funds have cleared ahead of the start of the tenancy. If funds are being transferred directly to your bank account, it is always best to use a dedicated account.

5.Meet the incoming tenant -Do not arrange for keys to be collected through a third party other than a reputable agent. It is far safer to meet and hand over keys in person, explain the workings of your property and agree when you will collect the keys at the end of the let.
If you have a property you are considering looking letting for a short term period, SurreyLets are on hand to assist you. For a no-obligation confidential discussion about letting your property please call us on 01483 282470 or e-mail us at info@surreyletsonline.co.uk

11.6% increase in the average capital value of rental houses

The beginning of 2011 saw an influx of higher value property into the Private Rented Sector (PRS), according to the latest research from the Association of Residential Letting Agents (ARLA).

Research for Q1 2011 shows an 11.6% increase in the average capital value of rental houses, from £401,400 to £447,900. Previously, this figure had declined following the last market peak at £442,600 in 2007

This growth was driven by London and the South East, with a 14.8 per cent increase in average capital value in central London and 16.2 per cent in the rest of the South East. The rest of the UK experienced a drop (5.2%). According to ARLA, this growth is due to an increase in family homes coming onto the rental market, which generally carry a higher value than smaller homes.

Ian Potter, operations manager of ARLA, said: “We believe that this increase in the overall average capital value of rental properties has been driven by different types of home being offered to let. Today’s housing climate and uncertainty around jobs and income means many people are choosing to let rather sell their home, causing an increase in the number of family-sized homes available to rent.”

Sally Asling from SurreyLets comments that the ARLA report is a true reflection of the Letting Market in Surrey, where there has been the largest increase in instructions in the family homes area. Sally states “In my experience this is due to two factors. Firstly I agree with Ian’s comment that many families are choosing to let their home opposed to sell, and make their next move, the second reason being that many existing tenants in these properties are choosing to downsize and save money”

ARLA’s research shows that, of the 39 per cent of ARLA members reporting an increase in property coming onto the market because it could not be sold, the biggest proportion was for family-sized homes, with 66 per cent reporting an increase in semi-detached and 63 per cent reporting an increase in detached houses.

Mr Potter added: “While these changes do not necessarily mean individual properties are worth more money, they do indicate that there is increasing flexibility in terms of the types of property available to would-be tenants in the PRS.

“Landlords with a greater valued asset recognise that by using a regulated ARLA member, their money will be protected by a client money protection scheme, a service which many unregulated agents do not offer. ARLA members can also market the property more effectively through PropertyLive.co.uk, the only property portal which uses professional, regulated agents.”

This blog has been taken from (in part) the ARLA (Association of Residential Letting Agents) Website.
Sally L Asling

Director- SurreyLets Understanding People, Understanding Property
www.surreyletsonline.co.uk
Author – SurreyLets Guide to Letting

Changes to Housing Allowance from April 2011

The all important changes to the Housing Allowance that are effective from April 2011 are now coming into force. The largest change is that Housing Benefit will be capped at 4 bedroom properties and there are set upper limits for claimants. The reforms come at the end of a much debated subject on the economy with Mr Osbourne stating “We now spend more on housing benefit than we do on the police and on universities combined.”
Housing benefit was now “completely out of control” and in “dire need for reform”, he said, with some families receiving as much as £104,000 a year in housing benefit in some parts of London. Housing Benefit currently costs the government £21billion a year, compared with £14billion 10 years ago.

From 1 April 2011 the rates for Local Housing Allowance will be reduced across the country. The Weekly excess of £15 that some tenants were in receipt of will be removed.

The following are the limits on payments that will be made:

A limit will be introduced so that Local Housing Allowance does not exceed:
£250 a week for a one bedroom property (including shared accommodation)
£290 a week for a two bedroom property
£340 a week for a three bedroom property
£400 a week for a four bedroom property

The maximum rate of Housing Benefit will be limited to the rate for a four bedroom property.

Whilst currently, the only areas that are hitting these limits according to the VOA are Central London, and London’s Inner regions, areas such as SW London, and parts of Surrey like Guildford and Walton are coming close to the mark. To see how areas and allowance compare, please click here.

LHA will be set at the 30th percentile of rents in each Broad Rental Market Area, rather than the median. From April 2011 for new tenancies: existing tenancies not affected until 9 months after their annual review date (i.e. at least January 2012).

New limits on the amount paid according to the size of a property, including a cap of £400 a week on a four bedroom house, will affect fewer households more dramatically. A total of 21,060 will lose on average £74 per week.

The percentage of privately rented properties available to housing benefit claimants in central London will fall from more than 50% to just 7%

Other changes coming soon…..

Changes from April 2011 to April 2014
The deductions made from Housing Benefit will be gradually increased if there is an adult living in your household who you do not claim benefit for. An example would be a grown up child.

Changes from January 2012
The shared accommodation rate currently applies to single people under the age of 25 living in accommodation that they rent from a private landlord. This will be extended to people aged under 35.

This means that single people under 35 will no longer receive Housing Benefit based on one bedroom self-contained accommodation.

Changes from April 2013
Housing Benefit will be restricted for some people who are living in a property that is larger than their household size. This will apply to working-age customers renting from a social landlord.

Local Housing Allowance rates will be updated in line with the Consumer Price Index. The Consumer Price Index measures the average changes in the prices of consumer and services in the UK from month to month. It is the main measure of inflation in the UK; the government uses it for its inflation target.

In speaking to Landlords regarding these payment changes, the Landlords most affected are the Landlords with 5 bedroom properties who will now have a shortfall in the rental. As the areas in which I operate in Surrey, based on a four bedroom property in the Guildford area, the payment may well be the difference from £403.85pw reducing to £346.15 a week, a monthly shortfall from £1750pcm to £1500pcm, which will reduce available properties from approx 6 in 10 to under 3 in 10.

SurreyLets Director, Sally Asling, warns tenants that they should check their Tenancy Agreement and their entitlement before renewing a tenancy

Business : Britain needs its Mumtrepreneurial Businessess. Mumtrepreneurs need Digital help and Support

Back in 2010 I wrote this blog about the rise of the Mumtrepreneur and how I believe that 2010 is the biggest shift in this movement where over the coming decade many women will start their own business as an alternative to juggling the corporate world with a family.

With the rise in unemployment and the recession coupled with the cuts that squeeze finance over the next few years, many women are seeking a way to boost the families income. Some Mums are looking at returning to work and others are looking at how they can best utlise their skills to formulate their own business.

Since writing that blog I have met countless numbers of women who are doing just this. Business enterprises range from setting up a daycare dog walking business, hosting “sales” parties, offering freelance accountancy / booking services through to doing counselling or therapy courses and starting a new career. However the line of conversation that runs through all these encounters has been the issue of becoming digitally competent and confident in this new era of Business.

As I mentioned in my blog this week when I discuss why all small business should support the Digital Business Britain Manifesto, many women in this category were like me. Able to use a computer and holding a basic use of the internet, but with little idea about setting up a website, creating an online brand or blogging – tip of the iceburg skills before even digging deeper to online campaigns and SEO.

The beauty of the internet for women starting a business, is that they can work from home and create a successful online business brand. The web puts business start ups out there on a level playing field with other companies and a business can quickly establish it presence. Gone are the days where one needed huge capital to launch a business by getting premises, costly paper marketing and writing letters. The web has opened up countless doors and windows of opportunity.

The sting in the tail is that many women in this situation don’t know where to start. The web is a daunting place, creating websites, blogging, SEO, branding is about as alien as it gets. Its frightening and off putting.

………and it shouldn’t be.

It is such a shame that many ideas and start up ideas don’t get implemented because of this fear. Even more so, I see business start and struggle because the business owner has all this potential that they can’t sell because they don’t have the technical know-how to sell themselves online – the world largest shop window.

This is what makes me more determined than ever to support Penny Powers Digital Business Britain Manifesto. To Quote the Manifesto…” By effectively engaging in social business networks and using the internet to its full potential, these same individuals and businesses have the opportunity to share best practice, challenge established ideas and thought processes, ask for help, identify new customers and suppliers, build trust and collaborate with each other and their customers to accelerate their business development

This is what I see as the single biggest important knowledge that is crucial in the “Decade of the rise of the Mumtrepreneur”

Britain needs its Mumtrepreneurial Businessess. Mumtrepreneurs need Digital help and Support.

I support:
<img src="http://www.ecademy.com/images/

Why Small Business Owners should support the Digital Business Britain Manifesto

I have been curious recently about the Digital Business Britain Manifesto initiated by Penny Power, founder of business networking site Ecademy.

I was tempted initially to mock this and view the project as something not needed, something that seemed to me more a case of “each to their own” or “common sense” yet the more I have discussed this with people, the more I have been forced to examine my business and the may conversations I have had with other business owners over the past year, and in doing so, realize the importance of this Manifesto.

In her manifesto Penny Power States “Individuals and businesses, regardless of their size, have much to learn about how to ‘think digitally’ in the execution of their day-to-day business. A lack of understanding of the digital world means that many individuals and businesses are missing out on valuable growth opportunities. At the moment the internet is used as a transactional tool to buy and sell products or raise awareness. Few truly understand the potential of the internet and the positive impact it could have on their businesses. So there is an urgent need to teach business people how to embrace the digital world” This could not be a more accurate assessment of the here and now for many business’s

Since launching my company just over two years ago, I have undergone a monumental learning curve. Like many business owners of my age or similar, I was bought up in a time where the school had one or maybe 2 computers and we treated them as alien items with little or no understanding. Life takes over after school and you “learn on the job” all you need to get by. I was PC literate owning like most people a computer and as technology advanced got to grips with what was needed to download music or order online. I thought I was pretty pc-savvy until I started my own online business.

I was fortunate. I met inspirational people who were raving about Social Media at the time I launched my company. They blew me away with ways I could harness SEO and build a brand, putting me streets ahead of the competition. Suddenly, I was the one being asked to talk about social media and using the web – with my limited knowledge and application people were asking for my help, yet I knew just the tip or the iceburg. I gave my help freely until such a time I found it positively distracting from my business.

In this time I understood that I was very fortunate to have has such positive influences bought into my life to help me succeed. Not everyone has that and many are stumbling though the dark, doing OK, but not harnessing the power of the internet. As many people do when they don’t understand something, they rubbish it. We are all guilty of that. There is also something a little embarrassing at the age of 40 to confide you dont know and understand how Facebook, Twitter or blogging works. Digital midset goes way beyond this which many people don’t understand or realise. There is a need for Digital Training, but like most professions, it needs to meet a standard and be reguated for competence. As I understand it, this is another area Ms Power is campaigning for.

When I first read the manifesto I thought it was all stating the obvious. It probably is. That’s not the point here or the issue. The point is, Penny Power is bang on the money with her observations about most small to medium businesses in the UK. If she is right, which I have no doubt, then Britain will be left behind in the digital age. The change in the way we do business has changed and will continue to do so, but without changing the attitudes of business owners and inspiring new generations there is a real danger for UK Businesses.

The aim of the Manifesto states: “The Digital Business Britain Manifesto calls for the digital skills gap to be closed, encouraging UK businesses to develop a Digital Mindset, which will, in turn, enable them to leverage business growth opportunities.” Interestingly the Manifesto carries out what David Cameron can be quoted as saying “In the Internet age, we need to ensure that people aren’t being left behind as more and more services and business move online. But this issue isn’t just about fairness, promoting digital inclusion is essential for a dynamic modern economy and can help to make government more efficient and effective.”

Over the past two years I have been involved in many mediums of networking and attended close to 50 networking events as well as being involved in online networking. Some of these have been “ladies” events in platforms like Athena but the majority have been a collection of small and medium business owners like myself. The competency in understanding social media platforms and coming anywhere close to a digital mindset are very varied from a handful of competent users, with the vast majority seeing it all as either a time drain or feeling utterly overwhelmed at the word blog.

If this Manefesto can come some way into launching an initiative that installs confidence through teaching and supporting businesses to adapt a digital understanding, not only will businesses see the rewards, but it will help the country as a whole. A win win situation in my opinion. I hope as this pushes forward, some attention will be given to implementing qualifications in school at A level standard either as its own merit or combines in Business Studies as a whole, as these vital skills are needed by all companies heading into the future.

In understanding the aims of The Digital Business Britain Manifesto and seeing the potential this has to change us as a business nation, I can only see positive outcomes that will greatly benefit many business who may choose to implement all or some of the digital technology that is available to them. This is why I and SurreyLets proudly support this Manifesto and encourage others to do so also.

Sally Asling
Director
SureyLets Online

SurreyLets supports:

Treating people with compassion and kindness pays dividends

Moving house is up there with life’s most stressful things. In my job as Director of SurreyLets, I see the best and the worst of people, sometimes with the same people in the course of a day as the stress can mount up.

This month there is more stress with people all rushing to move before 6th April to beat the changes in Stamp Duty and whilst I don’t deal with Sales, with a large number of sellers moving into rented, and therefore we are involved in the stresses of the big move.

I’ve seen people lose a sale on the day of exchange due to gazundering, and Ive seen exchanges in the past few weeks push for completions prior to April. Tie this in with the procedure for letting a property and peoples emotions and tempers all start to fray.

Since running SurreyLets, I always have a philosophy that I don’t want to be seen as a stereotypical pushy agent caring more about the fee than the people. I therefore go out of my way to make each experience as personal and professional as I can placing a huge emphasis on respect, kindness and care.

Its not always easy. I still have to oversee processes of eviction with non paying tenants (not that often thank goodness) and I have to chase people for rental, I also have to tell people to tidy up and hoover, as well as tell people they have failed afford-ability checks or that they have bad credit. I am not always able to deliver good news.

However I learnt a long time ago, that so long as you deal with people with utmost honesty, integrity and kindness, then nothing is unsurmountable and everything is possible. When you treat people as individuals instead of statistics or stereotypes, you can find away to make things possible. It takes a little more time, a lot more understanding and negotiating and the fee is still the same at the end of the day. Some may say its a lot more work for no more money – and indeed I feel this is the way it would be viewed in the corporate world.

SurreyLets has entered its third year this month. An astonishing 80% of my business is on personal recommendation and referrals with many repeat customers. This I feel is totally down to treating people as individuals and applying kindness and compassion to everything I do.

When I launched my company I did so with the motto “Understanding People, Understanding Property” and I am pleased to say this, above all else, has what has been the key to success.

Its quite simply, not ALL about the money.

Wishing you a lovely day

Sally

SurreyLets – A Guide to Letting – A Free E-book for Landlords

Early this year I wrote and published the SurreyLets – Guide to Letting.

We have had an overwhelming reaction from past and future clients stating how informative and helpful the advice within the book is. As such I have decided that whilst the book is available in print at the cost of £4.50, the book will be available as a free PDF download from my homepage also.

The book was written to assist propsective Landlords who are thinking of Letting their property and give some general basic advice. It is not a DIY manual of how to let your home as the market is flooded with these, but this is a quick read to give you information that you need to know that your agent knows!

The PDF is now downloadable from my company homepage