Keeping your tenants happy in Exeter

The value of properties up and down the country are still increasing, so it is more important than ever to provide your tenants with a comfortable home where they will be happy to stay for a long term, there will certainly be other landlords willing to do so if not. 

This does not mean that it is necessary to fully refurbish all your properties every six months, however there are a few simple steps that can be taken to ensure your tenants stay for the longest time possible.

The first and possibly most important question to ask yourself, and answer honestly, is if you walked into the property, would you live in it in its current condition?  If the answer is no then there is work to be done.  Modern and clean is not a tenant luxury, it is a basic requirement if you are to secure a decent tenant at the right rent. 

Neutral décor does not have to cost the earth to achieve, especially if the costs are spread throughout the length of a tenancy, perhaps put 10% of the monthly rent into a “refurbishment fund”, with the average rent being around £750pcm, after a six month tenancy you would have £450 towards some new paintwork.  Also remember some of these costs, subject to your personal position, are tax deductible.

Once you have got your tenants, you should be trying to keep hold of them.  There is a very simple message here and that is; a good landlord is an attentive and responsive landlord.  Don't hide from them, ignore them or hope they will go away.  Deal with their issues as soon as possible.  This simply means that you listen to their needs and act on them.  If you use a managing agent, listen to their advice, they will be trying to make the most of your investment for you and they will be able to advise on where best to spend your money.

If you want your tenants to remain happy, give them the tools that they need to keep the property in good shape. This could mean supplying that lawn mower which you were not going to offer originally, however, by offering one you are ensuring the continued support of your tenants and you are also giving your property the best chance to remain in good condition for as long as possible.

These are the basics and many landlords choose to go far above and beyond these points; they are the ones whose tenants stay for 3, 4, 5 years plus.

If you would like more advice on how to look after your property or how our “Cashback for Landlords” scheme could give your property the cash injection it needs to bring it back to life, please come and see us at our office on South Street or call us on 01392 254488.

Exeter owner occupation

Last week, a couple from Crediton, came into our office to discuss potentially investing in Exeter for the first time.

As our regular readers will know, the initial consideration you must make before investing in property is the balance between annual return and capital growth. However, what affects these two things in Exeter are very varied and complex.  The quantity of property and whether property is owner occupied or socially rented has a big difference on yield and capital growth.

It is worth looking at where the largest proportion of rented vs owner occupied properties are, will this have an effect on house prices and annual returns?

In 2011, the area of Exeter with the highest percentage of owner occupation was EX3, with around 75.2%.  This correlates to the average property value, currently at £395,158, and the highest in the Exeter area, however gross yields are in the region of only 2.7%, therefore it may not be the best place to invest for annual returns but the capital growth should be strong.

On the reverse side, in 2011 properties in EX1 and EX4 had the lowest average prices of £227,605 and £222,601, and owner occupation of 56.50% and 57.16%.  Looking at these figures I feel it is safe to say the higher the percentage of owner occupation, the higher the property price.  Interestingly, EX4 has the highest average rent of £916pcm, giving a gross yield of around 4.9% so if you are looking for a higher annual return, this is certainly one of the areas I would focus on.

There are numerous reasons why EX4 may be a preferred area for rental properties, there are lots of good schools, Exeter University draws students and employees, the Met Office and excellent access into the city centre.

There has been an increase in the number of households privately renting and this could be linked to the decline in the number of households getting on the housing ladder, usually by way of a mortgage. Those who read our recent article “How affordable are Exeter properties” will understand the difficulties buyers are facing.

To discuss investing in Exeter as there are many points to consider, please come and see us at our South Street office or call 01392 254488.

Prepare your Exeter property for winter

Extreme weather such as unexpected snow, strong winds and gales like we have experienced in the past couple of winters can put a huge strain on our homes, leading to burst pipes, boiler breakdowns and big bills.  

All it takes is a few simple checks (preferably BEFORE the first cold snap) to get your home winter fit.  Here's how.

Do Some Pre-Winter Maintenance

A few spot checks around your home will reduce the likelihood of winter rains, wind and cold causing structural damage. 

* Clean out the guttering and check for any leaks or damage.
* Cast your eye over the roof from ground level to look for problem signs such as loose or missing tiles. Check that TV aerials are securely fixed.
* Look out for cracked, loose or missing pointing or rendering on exterior walls and have this fixed before water finds it way in.
* Get your boiler and/or central heating serviced by a Gas Safe Registered engineer.
* Clear out leaves and debris blocking up drain grilles and clean patios and footpaths before they get slippery from a build-up of dirt.
* Have chimneys and flues swept if you use an open fire or wood burner.
* Get your insulation up to scratch - lag pipes and water tanks, fit draught excluders and insulate your loft properly.
* Make sure your smoke alarms and carbon monoxide alarms are in full working order.
* Show every adult and teenage member of the household where the stopcock is, plus where to turn off electricity and gas supplies in case of emergency.
* Keep a list of useful numbers handy in case of emergency. Include your plumber, gas installer, electrician and doctor.

Whether your property is one you live in yourself or rented out, we all have to take responsibility for the effects of extreme weather.  Landlords of rental properties should also show due diligence in making sure that the above checks are carried out on their properties both to avoid additional expense to themselves and discomfort and inconvenience for their tenants.

Here at Martin & Co Exeter, we can give advice on the types of precautions you should take and also who you can call if you need help with any of the suggested actions.  We want all our tenants to be happy and comfortable in their homes throughout the winter, together with ensuring our Landlords get the steady income from their rental property with a minimum of hassle.  Why not give us a call to find out how we can help you?

The rise of Exeter stamp duty

I recently read an interesting article looking at the rise in the stamp duty that has been paid in the south west.  New figures show a £1.5 billion rise in the total Stamp Duty Land Tax yield from residential sales in 2013/14.

While conducting sales appraisals I am finding that I have to discuss stamp duty with more and more sellers, especially when looking around the £250,000 mark and in my opinion it is also restricting some house prices.

There have been around 50,000 transactions in Devon, Cornwall and Somerset alone and those who read my recent article “How affordable are Exeter properties?” will know the area is not the easiest for first time buyers – these transactions gave the treasury around £250 million in 2013/14.

It is interesting to see what happens when you work out the current and future income the treasury may receive.  The average price paid for a property in Exeter over the past three years was £232,730 and there were 7088 transactions, bringing in £16,495,902.50 in stamp duty.  The current average price for a property is now £256,675 pushing it over the 3% threshold, due to an increase in values of around 8.5% over the last year, and assuming the number of transactions remains the same over the next three years, this would then bring in £54,579,372!

If you are looking to invest in property come and talk to us at our office on South Street so we can work out the best options for you.

If you would like to read the article you can find it here; http://www.exeterexpressandecho.co.uk/House-price-rises-Devon-prompt-stamp-duty-reform/story-23044044-detail/story.html

Willmott Dixon to build £7.6 million Steiner academy

Willmott Dixon have been chosen to construct a new 4,707m2, two-storey facility alongside a full refurbishment to Thomas Hall, the grade II listed building that was formerly a hall of residence for the university. 

The project will also include construction of a separate hall and kitchen, six kindergarten classrooms, new car parks and landscaping of the grounds. It is planned that the Steiner Academy Exeter will open in September 2015 and accommodate 624 full time students aged between four and 16 years old.

For a landlord this can only be good news, many construction workers will be involved in the build and they will need somewhere to live.  Furthermore, following the construction, the parents of these extra 624 students will surely want to be nearby, considering the students could be at the school for 12 years, this could make a very nice long term let!

http://www.willmottdixongroup.co.uk/news?actv_news_news_id=371