You may be aware that Brexit and coronavirus have made it difficult for tenants to find good quality London property to rent. Although many people left the city for a lifestyle change in the countryside, the trend is shifting. Over the past few months, the demand for rentals has significantly increased. The reason for this is that people are looking to return to London. Plus, domestic and international students are returning to campus. What’s more, the type of rental property is limited as most tenants are searching for the same sort of property… a place with enough space to work from home with a garden or terrace. Finally, thousands of people have lost their jobs, had their income reduced or lost their homes during the pandemic. Now they are struggling to find a suitable home to rent within their budget. What’s the solution to this housing crisis? Introducing the Reka […]
landlords
The 7-Step Guide to Being a Responsible Property Manager
Whether you are a new landlord, or if you have owned property for years… it’s good to know your property management responsibilities. That’s why we have put together our 7-step guide to be a responsible property manager. The Essentials of Property Management Property management is about taking care of the investment property to ensure you maximise your rental return. This involves the following activities: Setting rent at the market price Screening tenants to ensure they’re suitable Collecting rent from tenants Keeping tenant vacancy rates low Providing maintenance and repairs to ensure the property is safe Consistent communication with tenants Managing the income and expenses associated with the property 7-Step Guide to be a Responsible Property Manager Below are the key steps you need to be aware of as a Property Manager: Step 1: Screening potential tenants You need to ensure that you use a rigorous screening process to find the best […]
The Best Places to Rent in London
If you’re considering renting in London, it can be challenging to decide where the best place is to suit your lifestyle. Do you want to be close to public transport? Do you want a share-house accommodation to meet new friends? Do you have a family? Or do you need something that suits your pets? To help you decide, here are the best places to rent in London, based on your lifestyle, family situation, hobbies, and budget. If you are on a budget: The average rent in London is currently £2,892 per month. Affordable rent is anything below £1,200 to £1,500 per month. The following boroughs have quality places to rent in the affordable range: Sutton – with average rental prices of £1,405 Croydon – with average rental prices of £1,375 Barking – with average rental prices of £1,305 If you are a young professional: Young professionals have a variety of […]
How to Attract Good Tenants for Your Property
Finding the right tenants is key to making sure your property is looked after. But there is a balance between making sure you’re not missing rental payments because your property is empty and dealing with troublemakers. Here are our tips to making sure you attract the right tenants for your property, so you can receive a stable rental income. Tip 1: Figure Out Who You Want to Rent to You need to first think about who your ideal tenant is so you can appeal to them. For example, there is always a high demand for rental properties that allow students and has communal shared spaces. This not only reduces the rental amount for students, but it also serves as a social outlet. Tip 2: Get your property “rent-ready” Before you list your property, make sure it is ready for potential renters. This means making sure it is safe, well-maintained, and […]
7 Tips on How Landlords Can Survive the Pandemic
If you’re a landlord, the pandemic has likely impacted you in some way. Maybe that’s with extra commercial cleaning to HMO common areas, undertaking socially distanced property viewings and dealing with the eviction notice periods. What’s more, according to a recent survey undertaken by National Residential Landlords Association (NRLA), you may have some tenants that have built up rent arrears. Around 840,000 private tenants are in rent arrears, which began during lockdown. This impacts young tenants and self-employed people, with one in five tenants having debts of more than £1,000. The worst hit was in London, where 9% of private renters are in arrears. Established landlords or HMO property owners with a strong portfolio may be able to absorb the rent arrears. But what about landlords that rely on the rent as the sole income source? Below we’ve listed 7 tips to help these landlords survive the pandemic. Tip 1: […]
Pros and Cons for HMO Investment
You may have seen HMO investments increasing in popularity, even with recent legislation changes and COVID restrictions reducing rental demand in some areas. Before you decide if it is best to invest in an HMO instead of a standard buy-to-let property, we want to bring you the pros and cons of HMO investments, so that you can decide. Firstly, what is an HMO? An HMO is a ‘multi-let’ rental property with three or more tenants, not from one household/family, that share amenities. This can include: A house which is split into bedsits or units A house, or flat share, where each of your tenants has their own tenancy agreement Students who live in shared accommodation The pros: One of the most significant advantages of investing in an HMO is that it will generate a rental income increase of three to five times a standard buy-to-let home. The property will help provide more people with affordable accommodation. Cash flow […]
Brexit: what is the impact on the property market?
Now that Brexit’s uncertainty is behind us, we have collated our research to summarise the impact of Brexit on the property market. What we’ve found are positive signs for property investors. Post-Brexit Factors that Impact Property Investors Low-Interest Rates Remain Competitive The Bank of England has reduced the base interest rate to the lowest it has ever been in UK history. The 0.1% rate was chosen to help stimulate the economy after the impacts of the COVID-19 pandemic. This low rate will benefit property investors, first-time homebuyers and people who want to remortgage their home as we depart the EU. First-Time Homebuyers The record-low interest rate is attracting first-time buyers to get started in the property market. They have the benefit of being exempt from paying stamp duty (for property under £300,000). With more homebuyers coming onto the market, this stimulates the property market and gives confidence to sellers and […]
Technology Changes Impacting Property Management
COVID has brought about unprecedented challenges. However, some changes have had far-reaching benefits to property managers, landlords and prospective tenants. Here we share some technology changes that we have implemented in property management. Zoom Meetings With physical restrictions and lockdowns, most people have gotten used to using Zoom calls to connect with colleagues, family, and friends. Zoom calls allow you to stay in touch, see people and be connected. It is a great tool for work/life balance, which is why we find it beneficial for rental inspections. We do this one-on-one with the prospective tenant, so they can ask questions and see areas they are particularly interested in. The prospective tenant jumps onto the call, and we show them around the property – walking them into each room, opening cupboards and looking under furniture. Not only does this ensure social distancing, but it also means the prospective tenant can see […]
Pros and Cons for the Rent2Rent Strategy
There has been media speculation recently about whether Rent2Rent is a feasible investment option. We’ve collated information to bring you the pro’s and con’s of Rent2Rent so you can decide. What is Rent2Rent? Rent-2-Rent is when a property is let on a single let basis to one person (say the head-tenant) who has been given the right to sub-let some or all of the rooms, by the landlord. Rent2rent companies or head tenant will probably live somewhere else and will have the responsibility to sub-let the rooms to separate tenants, usually four or less. They will be responsible for paying the property’s single let rent and the bills. They will make profit by pocketing the difference. The Rent2rent or head-tenant provides the landlord with a guaranteed rent, meaning that even if the property is vacant, they will be responsible to pay the agreed letting amount to the landlord. Why would […]
How To Help Our Frontline Workers
In addition, the NHS is running a recruiting campaign to encourage more overseas nurses to come to the UK to help during this COVID pandemic. This means there are thousands of key workers that may need somewhere to rent. At Reka Property Management, we offer discounts to key workers. This includes reduced rent, discounted property management fees, and savings on HMO related projects. It is our way of saying thank you and offering support to our key workers. As landlords, you are in a unique position to help and support our frontline workers, while ensuring you receive rent. The property market is quiet in some HMO areas due to COVID restrictions, lifestyle changes and loss of work. This has resulted in an increase in vacant HMO rooms. If you are struggling to fill your rooms during the pandemic, then we recommend the following: 1. Offer Discounted Rent One way to […]
