Last week we finally exchanged on a property in Quebec Ct, which is in Seymour Place, W1. The property is only around the corner from Cumberland Hotel in Marble Arch, where prices range from £171 per night; and this rate is probably the lowest of the low seasons.
The reason why this is noteworthy, is because one of the main reasons why this property is being purchased is for it to be short let, meaning rented for a time period of less than six months. Renting at £170 per night would mean the yearly rental will be £62k, giving a gross yield of 10% on a purchase price of £625k.
In W1, this is unheard of, these are the yields you typically get in the north of England, where you sacrifice capital growth for yield. There the prices don’t go up for years, but there is surplus cash at the end of every month, after paying your mortgage.
The property was purchased by a client who bought it blind, despite this being the first deal he has done with us, purely off the back of a referral. We attempted to conduct a viewing but couldn’t make the times match, and the time for doing the deal came before we could arrange a viewing. The quick exchange was propelled by the freeholder expressing interest in purchasing the property for a higher price. This gave us the impetus to exchange quickly.
Although given the current uncertain, and at best flattish, market, my opinion is low end flats will still be selling fast. We are focusing on getting properties which have high yields, but are in solid locations. This is generated through two ways, one is through room lets and the other is focusing on properties which are favourable for short lets.
We have two properties that meet this criteria in the pipeline. One in Camden, an area which is undergoing major regeneration, this property is perfect for the student market, and can be rented on a room basis to obtain a rental of nearly 10% on a purchase price of half a million. The other is a deal which refuses to die in Covent Garden, this one due to its locality is perfect for short letting.
Both of these deals are ready to be concluded, we have the contracts in and the lawyers are ready for a quick exchange. It is rare where you’re able to obtain the best of both worlds, a high rental and to purchase in an area where you have tremendous capital growth. The current market allows you to pick up these gems. Get in touch, if you would like to take advantage of this market.
A clean and a sparkle isn’t enough
Adequately preparing your property for tenants is of the utmost importance, as failing to do so gives the impression that you may be a lazy or incompetent landlord.
Good presentation increases the value and desirability of your property, and first impressions count! If the property is in bad condition during a viewing, there’s not much of a chance that the tenant will want to live there.
Preparing a property for tenants can seem overwhelming, even if you’re a fairly experienced landlord. No matter what your experience, it’s totally normal to feel stressed – preparing a property is about a lot more than just cleaning it, after all.
The best place to start is normally with the decor of the property.
When preparing a property as a landlord, you have to pay no attention whatsoever to your own personal tastes. Strong colours and patterns are a no-go, as they date quickly and can be difficult to repair/maintain.
Both should have neutral decor, and should have all appliances and installations working. For example, check that everything such as fridges and ovens work in the kitchen; and that all of the taps in the bathrooms function as normal. One of the most common faults that tenants find in their properties after moving in is that the shower or bath doesn’t work.
Central heating
Consider replacing the boiler if it is over ten years old, and has failed more than twice. Remember – if a boiler begins to need multiple repairs, it’s likely that it will continue. It’s nearly always cheaper to replace a boiler as soon as it begins to need repairs, instead of forking out for multiple repair costs.
Anything else?
Use carpet or flooring from a well-known supplier. If you need to replace any in the property in the future, it’ll match the rest of the property.
As an overall rule, everything in the property should be as clean as it can possibly be. It may seem like common sense to most people, but you’d be surprised at the number of tenants that have viewed houses with dirty countertops or baths, amongst other things.
Regardless of the number of properties concerned, it’s important to be prepared with all of the contracts and legal information you need at all times.
It’s all too easy to get overwhelmed with paperwork and the like, however it is important to get it right in order to avoid breaking any laws.
It may seem like a lot of hard work and effort in order to get your property ready, however, if you do not have the time, or do not wish to make the time, then contact Sow & Reap, as our team will turn your property around in next to no time and have it ready for your new tenants.
