Guildford rental market - trends

As an Arsenal fan I hate to use the infamous quote of greedy Ashley but "i nearly crashed my car" when i heard a government minister on Radio 5 live say that he expected landlords to reduce rents as the amount of housing benefit paid was going to be capped. Guildford is an expensive place to live compared to other parts of the country but it is one the best places to live, you get what you pay for. It does have high rents like London and Boris' prediction of ethnic/class cleansing like Kosova, as DSS tenants are kicked out of their homes has to be a real threat to some people.
What is the likely fall out in the long term? Will rents go unpaid / fall into arrears? Are landlords with DSS tenants concerned?
In Guildford, I feel the government have completely misread the rental market if they think rents will fall. We are forever being kept informed of house prices by the media but when do we ever hear about average rents? Rents are souring, in Guildford we have seen a 10% rise in rents within a year due to a shortage of stock. There is a chance stock levels will improve soon as mortgage lenders relax rules, keep rates historically low and as more lenders come back into the market (N.B Parragon). Yields are 6% or better at the moment due to falling house prices so it is a good time to invest as we continue to fail at building new homes, long term capital growth is almost guaranteed.
It is my gut feeling that even the most understanding and caring Landlords will simply serve notice on tenants that can't keep up their payments, after all, we all have a mortgage to pay and we don't do it for charity. With high demand from young professional tenants that can't afford to buy, they will simply move professional tenants into their property without reducing the rent, in fact, if the tenant had been in for a while they may find they will get a higher rent when re-letting!
It's a free market but let's hope Boris' prediction are not seen throughout the South East and a balance can be made between Landlords getting the rent they deserve and people not being told in a Norman tebbit style "to get on your bike".

Foxtons debt to be re-financed?

http://www.negotiator-magazine.co.uk/article/foxtons-financing-under-discussion-1459

Services - discount

BELVOIR! Lettings in Guildford, The Sunday Times Gold Award winning letting agent are proud to offer discount to all NHS, Police and Fire Brigade staff.

We will offer 20% discount to all landlords for properties let through us in postcodes GU1-GU7.

We will offer 30% discount to all tenants on the admin and referencing fees if they rent a property through us.

We also donate to Phyllis Tickwell Hospice for each property we let.

Guildford Letting Agent gives tips to Landlords

I have just lost a property! The LL managed to let the property himself, we only had it for 2 days and he found someone through gumtree.
Despair!!
But for who......?

We were instructed on Thursday, conducted viewings on both Thursday eve and Friday then Saturday morning the LL calls and says the property has been let to students. They are moving in on Monday!!!
I asked if he had referenced them, did they have a guarantor, had he done credit checks on each tenant and their guarantors? He replied everything was fine...so what could I say but "well done" even if i was a little sceptical about the quality of the referencing.

Today, Friday (4 days after they moved in) I have been phoned by the neighbours (they saw our board) with complaints regarding the new tenants behaviour, noise and general attitude. We could not help as we were not managing the property.

The tip today is if you feel you can let a property legally and reference tenants yourself then please do it. If you are just chancing your arm to save some money in the short term, one day, maybe not this year or the next one it will come back to bite you on the bum if you cut corners.

Average house is worth £300k in Guildford, would you trust someone off the street with that kind of investment without checking them out?

Belvoir are The Sunday Times Gold Award winning letting agent for 2010. Let! us do all the work.

Guildford Landlords tips

I thought I would write a little bit about how to spot if your letting agent really adds value to you. Many landlords will let properties themselves and never have issues and think everything is fine, they often ask "what is the point of an agent" especially if they have had a poor experience from a lazy uncommunicative agency.
This week Belvoir lettings Guildford has arranged an EPC for a customer at £40 (no VAT to pay), this compares to £115 plus VAT from a well known competitor. This competitor is probably making money out of arranging the EPC rather than trying to add value. If a customer sourced it privately the EPC would cost circa £75. Ask to see invoices, ask if they add a commission for work organised by them, with Belvoir lettings Guildford we try to save the landlord as much money as possible not charge them as much as possible!
We also, through our local contacts were able to fix a long term broken sink for £35 for a landlady. She had put off fixing it because she was convinced it would cost £hundreds and need an entire new sink. This is how we try to add value, ask your agent if they are trying to save you money by using the best contractors or worse still they are adding a commission.
I would also recommend to look at tenant find only fees that are structured so you have to pay again during the second year of the tenancy, what are you paying for? Check the small print and try to use a firm that has a one off charging system. You know I am about to tell you how Belvoir Lettings Guildford have one off charging for tenant find only services....
We also don't charge a letting fee on fully managed properties when we source a new tenant for you, although there is a £60 admin fee, we just continue collecting 12% of the rent and your property continues to be filled and cared for!

Guildford Letting Agent gives tips to Landlords

My tip today is to make sure any tenant that states they want to take your property signs an agreement to lease at a future date plus gives you £500 holding fee (depending on monthly rent). The agreement to lease is a simple document stating that if the tenant withdraws before the tenancy agreement is signed the landlord is protected for any financial lose e.g. rent or re-advertising fees. The contract also protects the tenant in case the landlord withdraws without good reason and loses money due to, say, hiring a removal van and the deposit paid to do so. Obviously failing references is a good reason, so if both parties are serious an agreement to lease and a holding fee protect both parties and give peace of mind.

BELVOIR! Guildford take on a high quality 7 bed house

For those that have been following my tips for tenants and landlords I apologise because today I shamelessly want to blow our trumpet as we move on to bigger and better properties.We have just taken on the property decribed below:
A 6-7 bedroom executive Tudor style house set in an exclusive private development, with excellent transport links and local schools. This high standard property benefits from 3-4 reception rooms, 6 bathrooms of which 4 are en-suite , designer kitchen with dining space and centre piece worktop area, utility / changing area linked to 1 acre mature landscaped grounds boasting heated swimming pool, Jacuzzi, summer house and integral double garage. The property has neutral modern decor throughout whilst creating character through exposed beams and wooden latch handle doors to compliment, to enhance the quality each room has wired in speakers, modern spot lighting and a ceiling fan.
On the ground floor is the lounge, dining room, study, kitchen, utility area with shower, WC, coat room and entrance hall which leads to the first floor where there are 5 bedrooms with 3 en-suite bathrooms plus the main family bathroom. There is further storage space from the gallery / landing by the stairs up to the second floor. The top floor has a further bedroom with en-suite and walk in wardrobe plus a further family room or 7th bedroom.
Photos can be viewed on our website. IT is available for £9500pcm through Belvoir Guildford.
The property is an executive home, I would be grateful if this link was sent to any relocation agent. The property is in Walton-on Thames near St george's Hill and Weybridge. So if you know any top executives looking to move to Surrey or the suburbs south of London - let me know.

Guildford Letting Ageny gives tip to tenants looking to rent in Guildford

Firstly, let your fingers and mouth do the viewings. A good letting agent will show plenty of photos and give a good description of the property hence filtering out unsuitable properties. DON'T start arranging viewings if in your heart you know you want a garden and unfurnished if a property seems lovely but has no outdoor space and is offered as furnished. Although in renting there will always be more compromises than when buying having a thorough 15 minute chat to the agent about your requirements, situation and any property will save you time. You shouldn't view more than 3 properties or else you aren't being honest to yourself or the agent with your real desires and will probably get them muddled up in your mind. A good letting agent will help with these discussions and almost discourage a viewing if the property isn't right for you. At Belvoir Guildford lettings and property management we will ask about your current set up, why and when are you moving, work circumstances, preferences relating to parking, gardens, furnished, pets etc and then talk to you about the property available to rent - for example we currently have a property with a small kitchen and we will tell you and ask if this is important to you, if you say you cook a lot then we will say that perhaps this one isn't for you. We tell you about the layout, which floor it is on etc
A good lettings agent will only show you a property that ticks all the essential boxes. So happy hunting and do yourself a favour by asking the letting agent lots of questions before arranging the viewing.
visit us at www.belvoirlettings.com/guildford

Tips for tenants

When searching for a property make sure you know what you are looking for before asking to conduct viewings. Don't arrange 5-6 viewings on the same day, you just wont rememebr each property individually and might lose the one you liked. When you phone the agents about a property ask questions about the property - does it have a freezer? What size is the bedroom? Which floor is the flat on?
If you know you don't really want a ground floor flat then don't go and see one! Whilst visiting ones that in your heart you know you aren't going to want you are most likely giving time for other tenants to see the one you do want. A good agent almost wont let you view the property and will talk to you about move in dates, affordability, referencing criteria , move in costs and the type of property you really want before letting you view a property - they are doing you, any current occupier and themselves a big favour - this is real customer service. So today's top tip is, if you aren't able to compromise on something don't waste your time viewing it, get yourself a viewing at a property you may want by asking the agent as much as possible about the property before trying to arrange a viewing. Happy hunting!

LL top tip - Why do i need an inventory?

An inventory is an essential document that provides a written and/or photographic record that details the fixtures and fittings of a property and their condition as well as the condition of the property itself. This must be updated, amended and recreated and the beginning of each new tenancy.
Since the introduction of the Tenant Deposit Scheme in April 2007 the importance for an accurate inventory has never been more important.
One of the main features of the scheme is to resolve disputes relating to the amount of deposit to be returned to the tenant, the inventory will play the main role in this process. An inventory is your evidence but also gives the tenant peace of mind when they move in.
At the end of the tenancy if there is a dispute then the independent adjudicator will look at the inventory , check in and check out to make help make his / her decision. A good inventory will speed this process up and keep costs down. Without an inventory there is no way of proving any dilapidation, this could cost £1000s in worst case scenarios.
Many experienced landlords may tell you they never take a deposit and have never had a need for an inventory, but generally these properties will be hard to rent out to quality tenants as it sends an unprofessional message to the tenant plus these landlords most likely have higher maintenance costs than those that use deposits and inventories.One day they will get a poor tenant that damages the property and they will not have any way to recoup the losses.
In summary tenants expect to pay a deposit, they want an inventory for their peace of mind and it helps landlords gain a better return on their property in the long term.

LL hint

When your letting agent deducts money from your monthly statement, make sure you ask to see the actual invoice from the contractor. If you are already paying for fully-managed service and they are adding 10% you need to think about swapping agents.

Landlord hints and tips

Today my advice to any landlords or prospective landlord is quite simply shop around for an agent even if you are totally happy with your current one or prefer to do it yourself. Not all agents offer the same service, sure we all use the same websites, newspapers etc to get your property let and charge similar fees (although I bet our TT find only service beats most people locally) but some agents will give the reassurance of service more than others. Ask them in depth questions regarding your responsibilities and see if they appear knowledgeable. Ask them what is the penalty for failing to register a tenant’s deposit? How long have they got to do this? Is this for all tenancies?
The deposit needs to be registered within 14days of receipt for all AST agreements or a fine of 3 times the deposit plus the deposit could be payable!
Ask them when would you not use an AST agreement? If the rent was over £25k pa (or £100k pa after Oct 1st 2010) or if it was let to a company and not an individual, or not their main home or if they enjoy diplomatic immunity, if it is a holiday let, is the landlord resident....these are just some of the factors affecting the type of tenancy.
The bottom line is, if you get the agreement wrong you may struggle to get repossession of your property!!

Hints and tips for Tenats and Landlords

3/7/2010
Tenants - Always register your full details with your letting agent, this will put you ahead of other potential house hunters when a property comes onto the market.
Landlords - Make sure any tenant moving in to your property signs for a thorough "check in" and inventory stating they agree with the condition of the property. If you do this yourself be sure to cover all utilities and action needed by the tenant in an emergency
www.belvoirlettings.com/guildford

A sad story

I met a lovely couple last week that have 2 flats they rent out, they need the income to pay the mortgage. They had been using an agent that was not a memeber of any regulated body such as the government backed scheme NALS (National Approved Letting Scheme). The agent started to face financial difficulty and failed to pass on 2 months rent to the landlords. Alarm bells were ringing, as was the agent's phone, but no one answered. On visiting the agent's office they found the company had gone into administration, the owner disappeared and the deposits spent! The agent did not have Client Money Protection Insurance in place.
This couple now have to cough up their own money to pay the deposits back to the tenant when they move out, plus the loss of 2 month's rent on 2 flats! £4000 loss!!
So what's the story and learning points.
1 Always use an agent that has Client Money Protection Insurance in place
2 Make sure they are members of a regulated body - the best one is NALS but ARLA are good too.
3 If an agent uses the tenant deposit scheme and actually sends the money away you are in even safer hands
4 Franchise agents have to stick to rigorous standards to keep their franchise licence and are independently audited twice a year
5 Only use agents that are members of The Property Ombudsman as this gives extra security and the avenue of complaint if dissatisfied with any part of the service
6 Beware agents that aren't VAT registered,a small saving, as it implies they are a 1 man band and perhaps not a serious long term business
7 If the rent is late, ask for evidence from the tenant (bank statements) to get to the truth quicker.

Hope this is of some help, call me if you need any further reassurance or have an ongoing issue at the moment. Belvoir Lettings Guildford 01483 537200

Tenants move in must do's!

TENANT MOVE-IN GUIDELINES
Letting Agent Guildford

• Ensure that you have signed all of the relevant documentation
ie: Tenancy Agreement, Standing Order Instruction, Inventory

• Once you have arrived at the property you should take time to fully check the Inventory and Statement of Condition against the property, inc. any fixtures and fittings, within the allotted timescale. Note any amendments and return signed inventory to the letting agent's office. If the inventory is not returned within the agreed timescale it will be taken as understood that you accept the inventory as it stands so take care.

• Ensure that you contact the relevant utility companies to inform them of your new address, and the date your tenancy commenced.
ie: Gas, Electricity, Water and Council Tax
Your Letting agent should be able to inform you which utility companies are the current suppliers to the property. Should you choose to change suppliers you must inform your Letting agent, providing them with the details.

• Ensure that you take a note of all meter readings to report them to the utility companies when you contact them. The readings should also agree with those stated on your inventory.

• We strongly suggest that all tenants protect themselves with appropriate Contents insurance, suitable for a rented property, which should include sufficient cover for accidental damage to landlord’s goods, and we trust you will make the necessary arrangements. Contact your agent if this is not in place and you would like to discuss the matter further.

Pro-actively finding a tenant

I am currently seeking a tenant for 1 bed flat in Guildford,so what I am actually doing for my client the Landlord?
Firstly I am keeping her up to date each week with feedback on my actions and before and after each viewing. Like any agent we will load it up onto the main websites plus our own, plus the local property webpages, plus the newspaper, plus the shop window. This will probably be enough to get a tenant, but a good agent will work on other methods too.

Business networking, twitter, facebook, social events, chasing down "wanted" ads, using advanced software to match the database of previous TT enquiries to the current property and a new one :-bluetooth marketing. Imagine having the property details sent to every bluetooth active mobile phone within 1km!! It is this energy that sets aside a good agent and an OK one.

Getting value for a Landlord

I notice many Landlords insisting on a monthly rent for their property even when it is still void and only being marketed in local free listings. I am sure a large proportion manage to get their property let quick enough but it only takes 1-2 weeks of void to cause a real hole in the annual return. Many agents might be willing to offer the property to market and add some rental charges on top to cover everyone's needs. However, the TT could move on again shortly creating a vicious circle when they spot something similar that is cheaper.
My advise is to choose an agent that understands your longer term goals and rental income needs. Getting £50 less amonth on £1000pcm = £600 over a year, so as soon as the void goes over 2.5 weeks you would be out of pocket if you didn't drop the rent. A one off TT find charge of £500 looks very attractive if the void becomes 1 month. Asking an agent to add their fees on top is an option, but some charge more than others so do your research and get a feel for whether they just want your money or are truly going to find you a quality tenant.If your property is overpriced it isn't going to be let quickly.
Sometimes accepting less each month and working with an agent (as long as you know they are trying to help you not themselves)is by far the best option in the long term

Guildford letting agency stands up for standards - Property News- Property - getsurrey

Guildford letting agency stands up for standards - Property News- Property - getsurrey

Social Media Marketing

Quite simply check out twitterfall, twitter @nicktadd, @4walls.

1 bed flat £975

Belvoir lettings has a luxury furnished 1 bed flat to rent in Central Guildford, 2 mins walk from London Rd station available 1-6-10 for £975pcm - must be seen!

Long term client relationship

A Landlord will look for many things from his or hers letting agent, mainly good tenants that pay the rent, look after the property and no void periods. Many agents can get these basic things right (although some could do better reducing voids!)but my advise to a Landlord is to look under the surface. Ask about rent guarantee insurances, who offers value on these products, ask if the agent is a member of NALS or ARLA, these smaller things that can not be a the forefront of one's mind can lead to big savings in the long term.
Be very wary if an agent values your rent at a figure that seems too high, can they really achieve this for you or are they flattering you for your business?
Agents that are not VAT registered should set alarm bells going especially if you want a fully managed service, small business would suggest little chance of your property being well maintained - how much can 1 person do on their own?

HMO Planning Law change

From today, 6th April 2010, an amendment has been made to the Use Classes Order of The Town and Country Planning Act. What this means is that if you rent a house to three or more unrelated individuals it will require planning permission. In simple terms the law changes the definition of a 'Class C3' dwellinghouse from 6 unrelated individuals to 3 and created a new class, 'C4 HMO.' In practice the planning permission will change the class form C3 to C4. The law is not retrospective and so a property currently occupied by 3 or more unrelated individuals will not need planning permission. Please remember that use of a property by more than six tenants may have needed planning permission under the old rules and this has not changed.

The law becomes more complicated when the use of the property fluctuates over a period of time between C3 and C4 use. Most commentators feel that there is no need to apply for planning permission to change back from C4 to C3, but opinion is divided as to whether you need to apply for planning permission every time the class changes to C4 or whether once permission is granted this remains in place for a certain period of time.

The best advice is to contact the planning department of the local council. Remember that the law was designed to assist councils in deciding whether there are too many HMO's in a particular area. They will be the enforcing authority and I would suggest that their interpretation of the legislation should also be yours.

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http://www.getsurrey.co.uk/property/news/s/2067588_belvoir_lettings_come_to_guildford

Signs of a good letting agent

A good agent will keep the Landlord up to date at least weekly with what marketing they are performing on his/ her behalf, a summary of how it worked, viewings created, performed and planned and feedback on how any viewing went.

New builds in Guildford

Over the last 2 days we have joined up with Haydon Place and Boxgrove Gardens show home teams. These fantastic new build flats and town houses in central Guildford represent a great invetment opportunity for buy to let landlords. I would expect an annual rent of c21,600 for the Hornbeam at Boxgrove at a sale price of 375,000 (3 bed town house, garden, parking etc) which crudely predicts a yield of 5.77%!! Belvoir Guildford offer a full Buy to Let advise scheme whether you are looking to enhance your portfolio or start from scratch for the first time we can help you through the process and inform you of your obligations, predicted costs and most of all point you in the right direction on what to buy!

Electrical tests in your property

Are they mandatory? Well no, the law only insists on the EPCs and a gas safety record however i would advise any Landlord that if anything ever happened in their property due to the electrics they are still going to be liable. It makes great sense and gives the tenant peace of mind to have all appliances PAT tested annually AND have an electrical wiring check. At Belvoir we strongly urge this with all our properties.

Get value from your Letting agent in Guildford

All letting agents share the same passion to let their properties quickly but do they all reference the tenant comprehensively? A good agent will not only check credit history and have firm guidelines for when a guarantor is required but they will also check current employers and previous Landlords. Belvoir Guildford carries out all 3 checks and is therefore able to offer excellent value Rent,Legal, Building and Contents Insurance as the underwriter is aware of our great track record.

Contractors

Today we are meeting with are pool of contractors to check their identification and certificates for Gas safe register and Electrical NIC EIC, we will discuss how our Landlords need any repairs to be carried out as a priority and at special rates. As we are able to offer regular work to these contractors we pass on the savings to the Landlords and the tenants feel well looked after. Remember, Belvoir Guildford insist Landlords only pay the price on the contractors invoice, creating a big saving for them.

Tenancy news - ASTs

The Housing Act Rent Threshold Increase (England and Wales)

Please note that this legislative change does not apply in Scotland or Northern Ireland

The Government have announced that the Rent Threshold Limit will be raised to £100,000 per annum as from 1st October 2010. What this means is that the tenancy agreement used for any rent below a monthly figure of £8333.33 will be the assured shorthold (AST). By introducing this measure the government envisage that more tenants will have their rights strengthened and protected by legislation. Any rent over £100,000 will be subject to the normal contractual tenancy practices.

For reasons not fully explained by the Government the rise will apply retrospectively but the full legislation has not been published so this phrase may be misleading. What is likely to happen is that existing contractual tenancies up to £100,000 per annum will become ASTs from the date of the legal change.

There are 2 main consequences arising from this legislation - the deposit and notices.

1. The deposit
Tenancies that fall into the Act from changeover date are likely to need their deposits protected immediately and the necessary prescribed information issued.

Commentators are divided on possible problems arising from this as it could be argued that all tenancies falling into the tenancy deposit regime after 1st October 2010 will automatically be in breach of the requirements to protect deposits as they will have had their deposits placed into protection more than 14 days after they were received. However, we did not have to protect existing deposits when TDS legislation first came in but it was required for renewals and it is uncertain how the law will adjudicate on this matter. Certainly courts have given short shrift to the argument that ASTs existing prior to the introduction should have had their deposits protected at that stage.

Potentially, the various tenancy deposit protection schemes will face a sudden rise in the number of tenancies being registered with them and, presumably, in the number of disputes they have to resolve. Those disputes will, naturally, be for greater sums of money and will inevitably be more complex. This may prove hard for schemes to deal with under their current financial and business constraints.
2. Notices
The procedure for evicting tenants will be the procedure laid out in the Housing Act 1988, so you will need to serve a section 21 or section 8 notice rather than a notice to quit.

However there may be a problem with tenancies which are due to end less than two months after 1st October 2010. Agents/Landlords will not be able to serve valid section 21 notices giving the statutory minimum two months notice to end the tenancy after the date to bring such tenancies to an end at the end of their fixed terms. It is not clear if a notice served before changeover would be valid for the purposes of section 21 and it could only be so if the deposit had already been protected prior to service.