Whether you’re a new landlord looking to buy a property to convert or an experienced investor planning to convert a current investment property into an HMO, you need to be aware that conversions can be challenging, as well as rewarding. Of course, the many benefits of converting an existing property to an HMO include: increased rental return multiple tenants leading to a reduced risk of vacancies tax advantages with a reduction in VAT potential increased property value creating affordable accommodation for tenants …however, there are some essentials you need to know before you consider converting an existing property to an HMO. Depending on the features of your property, converting it into an HMO can be a compelling investment with very profitable rental yields, but it does require more work and maintenance. Essential 1: Is it the Right Property? The first essential item to consider is whether the property you want […]
property development
Landlords Secure a Cash Bonus When Helping Vetted Tenants Get Their Own Home
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 […]
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 Beginners Guide to Converting Your Property into an HMO
If you are considering converting your current property into an HMO to increase your rental income while providing more people with affordable accommodation, here’s how to do it. Step 1: Plan First Before you consider converting your property to an HMO, check that it is in the right location for an HMO. Ideally, your property should be in a busy student area or close to good transport connections to attract tenants. Step 2: HMO Licensing When you convert your property to an HMO, you’ll need an HMO licence to ensure that the property is safe and compliant. We recommend that you contact your local council before planning your conversion to find out what you need to include in a compliant HMO property. If you want assistance with your application, you can talk to us about our HMO Licensing service. This service includes identifying what is needed in an HMO property […]
What Will the HMO Market Look Like, Post-COVID?
As a landlord, you are probably aware that more people than ever rent a property rather than own. This is due to affordability, lifestyle choices and wanting to free up income for investment opportunities. If you’re an HMO owner, then the pandemic has likely impacted you with extra commercial cleaning to common areas, undertaking socially distanced property inspections and dealing with changed eviction notice periods. We believe HMOs are still a solid investment, even during COVID times, as they are an attractive accommodation choice for people wanting shared houses. However, its interesting to see what the HMO market will look like, post-COVID. Below we’ve listed three trends that may impact the HMO market post-COVID. Trend 1: Working from home Working from home has been an ongoing trend during the pandemic with attitudes regarding working from home improving substantially. One question you may be thinking, is whether most people will continue to […]
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 […]
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 […]
The Real Value of Property Management for Landlords
Whether you have one property or eight, knowing the real value of property management is essential to help you be effective, organised, and profitable. Here we outline the real value of property management. What is Property Management? Property management is the operation, control, and maintenance of investment properties. In other words, it’s about taking care of your property, so you maximise your rental return and profit. Property management includes the following activities: Ensuring the rent is at market price Screening tenants to ensure they’re suitable and can legally rent in the UK Collecting rent from tenants Keeping tenant vacancy rates low Consistent communication with tenants Providing maintenance and repairs in a reasonable time and with minimal disruption to your tenants Managing the budget Preparing the Tenancy Agreement and lodging the deposit in a government-approved deposit protection scheme Ensuring your property is safe Ensuring the property is not overcrowded Ensuring you have […]
