Author Archives: Aspen Woolf

From an Interesting History to Works of Art – Regenerated Toxteth is Now a Great Place to Invest

Posted on by Aspen Woolf

For many people, Liverpool’s Toxteth area is synonymous with the 1981 riots where a civil disturbance broke out between police and local youths. However, despite the negative image this portrayed, its repercussions only highlighted the greater need for social stability and increased investment across Liverpool’s inner-city areas.

What’s occurred since has been a vast improvement of Toxteth’s local economy and employment prospects, echoing that of Liverpool as a whole. Twelve months on from the Granby Four Streets regeneration, work is still ongoing to improve the lives of those who live there.

Today, Toxteth is a hotbed of investment, buoyed by relatively inexpensive housing and attractive rental yields. Its close proximity to the city centre, Baltic Triangle, and Liverpool’s universities has appealed to property developers from all over the country, meaning that regenerated Toxteth is now a great place to invest.

Liverpool is a city full of amazing culture and history that is ripe for investment, especially inner-city Toxteth

Image credit: Beverley Goodwin via Flickr

Cultural Ties

One prominent investment has materialised with the old Coleman’s Fireproof Depository on Park Road. The historic red-brick building is to be converted into luxury apartments and set for completion in Q2 2017.

Developers have been keen to modernise whilst retaining the building’s original Victorian features – a constant theme of various regeneration schemes across the city. This desire to preserve original architecture is largely because of Toxteth’s interesting social history and cultural roots.

Toxteth Turner Prize

Image credit:ALANM via Flickr

For example, the creative development of Toxteth’s notable ‘Welsh Streets’ – where work to convert 35 properties into 25 energy efficient homes is underway – saw the 2015 Turner Prize awarded to a collective art group who redesigned homes in the Granby Four Streets neighbourhood. Many of those homes are now let or available to buy at under market value.

Buy-to-Let Opportunities

Toxteth comprises numerous terraced homes within a relatively small area. This provides many buying opportunities for investors, buoyed by a huge demand for accommodation when second year students leave their university halls.

Often moving out in large groups together, landlords capitalise on this by converting rooms to maximise rental income. With over 50,000 students in Liverpool, you’re guaranteed to have enquiries as soon as the property is placed on the market.

Many of Liverpool’s inner-city areas, such as Toxteth, lie within an exclusive band where house prices remain below the national average but are steadily increasing in value. With a strong rental market to boot, this produces attractive yields of around 7-10%.

Toxteth has great rental yields making it a great place to invest right now.

Image credit:broady via Flickr

Living in Toxteth

Toxteth lies just south of central Liverpool and has great transport links into the city centre, notably with numerous bus routes servicing the area. Likewise, Brunswick railway station is close by which operates on the Northern Line of the Merseyrail network.

As well as the ongoing work around the Welsh Streets and Granby Row areas, other developments include a new block of flats and restaurant planned on the historic Princes Road, the conversion of the former Liverpool Savings Bank on Park Road, and the previously noted Coleman’s Depository renovation.

This shows that investors are confident to plough their money into Toxteth, helping boost the local economy and provide further employment. Of course, this enhanced social stability means that the 1980’s volatility is a thing of the past as  the area continues to see even more investment in the coming years, especially in the thriving buy-to-let sector.

If you’re ready to start your Toxteth investment journey, contact us today.
If you’d like more information, you might be interested in A Look into the History of Coleman’s Fireproof Depository and Investing in Toxteth is a Step in History and New Luxury.

Great News for Landlords as Demand Outstrips Supply on Property Sales

Posted on by Aspen Woolf

Landlords should have no problem renting out their property in the current climate as demand for homes has begun to outstrip supply across the country. A well-documented lack of house building has played its part, as well as affordability problems for first-time buyers.

This has pushed many into the rental sector, with estate agents experiencing high volumes of enquiries as soon as a property is placed on the market. This provides fantastic peace of mind for landlords, knowing that long periods of inactivity won’t dent rental income.

Low House building Levels

The construction sector in the UK is stagnating with output slipping by 1.1% between July and September compared to the previous quarter. This has contributed to an increase in demand as more people struggle to find a place on the property ladder.

To amplify the problem, the number of affordable homes built between 2015 and 2016 fell to its lowest level for over two decades. Just 32,100 new-builds were constructed within this period, compared to 66,000 the year before.

The response from the Theresa May government has been to propose vast house building schemes over the next few years. This is further good news for landlords, providing more opportunity to extend their property portfolio when homes are complete.

Demand is outstripping supply thanks to low house building levels and rising house prices

High Prices

As some potential sellers are remaining cautious in the current climate, fewer properties are being placed on the market. This shortage of supply, combined with a low ratio of house building, has pushed up prices in various regions of the UK.

This positive trend has been taking place for an extended period now. Average house prices have risen by over 35% since early 2011 with a further increase of around 8% over the last 12 months alone.

During this same period, wages haven’t risen anywhere near these levels which pushes first-time buyers and average earners onto the rental market. This new ‘Generation Rent’ do this reluctantly but have no other option.

There are many positive signs for landlords in the current economic climate

Post-Brexit Climate

In many ways, leaving the EU has created an even more desirable climate for landlords across the UK. The temporary period of uncertainty has seen demand for rental properties increase as prospective sellers sit still on their assets.

With the private rented sector dealing with a 10% rise in enquiries over the last year, rents have increased to around £850 due to sustained demand. Furthermore, tenants are becoming increasingly okay with moving into house or flat-share accommodation to bring down their rental outlay.

Positive Signs for Landlords

The severe lack of supply will see house prices rise and continue to generate a high ratio of people looking to the rental sector. As the government seeks to build more homes across the country to counter this, activity in the market will increase and help landlords extend their portfolio.

The opportunity to own your own home for many Britons is becoming increasingly out of reach. This will boost the buy-to-rent sector, generating increased rental yields and further capital appreciation.  Overall, with demand remaining high, landlords are guaranteed a quick let, as well as a good rental income per month.

If you found this interesting, you may also enjoy How Transport Can Affect Property Markets.

Posted in UK

Rated in the Top 20 Places to Live in the USA, Charlotte, North Carolina, is Ripe for Investment

Posted on by Aspen Woolf

A survey by U.S. News & World Report earlier this year ranked metropolitan cities by their quality of life, cost of living, job prospects and property values.

Charlotte, the most populous city in North Carolina, came out 15th on the list – an impressive achievement considering the competition.

The high ranking has echoed the city’s thriving property market, where house prices have encountered a steady rise overall throughout the current decade.

Charlotte park and skyline

Image credit: James Willamor via Flickr

Living in Charlotte

Miriam Weiner, product manager of Real Estate at U.S. News, notes:

“The Best Places to Live ranking accounts for the most important concerns people have about where to live, such as cost of living, employment opportunities and access to good schools…
Top-ranked areas not only have steady job markets, but they also have attributes that contribute to a high quality of life – affordability, low crime rates, shorter commute times and quality health care.”

Seeing as Charlotte performed so well in the rankings, this shows how its inhabitants are happy with the general standard of living and their prospects for the future.

Charlotte housing with terraces

Image credit: Daniel Lobo via Flickr

As a prospective investor, it pays to find areas with a strong local economy and high employment rates. This both guarantees you’ll have enquiries for your property, as well as assured rental income should you decide to let.

Charlotte, with its vibrant banking sector, offers a fantastic opportunity in this regard. It encompasses the second largest financial centre in the U.S, only behind New York, and an increasing number of foreign companies seeking investment. This in turn leads to higher mortgage approval rates and more confidence in the property market overall.

Charlotte Property Market

The Vice-President of real estate analytics company RealtyTrac, Daren Blomquist, is confident Charlotte is a safe bet when it comes to an investment:

“All the data we look at indicates Charlotte is in the midst of a housing boom that is strong, but not too strong, which means it is sustainable and will continue through 2016, at least.”

This view is backed up by the President of Allen Tate Co, Pat Riley, who concludes that the path of sustainable growth from 2016 will continue next year.

Charlotte city centre

Image credit: James Willamor via Flickr

Price appreciation at a steady rate means that houses remain affordable for the average earner and thus encourages activity in the market. Combined with robust employment figures and increasing economic investment, this makes acquiring property in Charlotte a wise move for long-term investors.

As the largest city in North Carolina, your options for investment across the state are substantial. In one area in particular, around the West Boulevard-Freedom Drive intersect, house prices increased by an impressive 70% within the last year but still remain at a median of around $110,000.

This is highly attractive for investors looking to make their money stretch further. Combined with the fact Charlotte is thriving socially and economically, as shown with the U.S. News & World Report survey, there’s no reason why the city’s property market won’t continue to perform well into 2017.

If you’d like to know more about investing in Charlotte, contact us today.
If you’re not quite ready, you might enjoy How to Invest in American Real Estate.

Posted in USA

House Prices and Rental Yields – How Expensive is Your Area [Interactive Infographic]

Posted on by Aspen Woolf

The following infographic provides a concise view of individual property details across various UK cities. Simply selecting a blue map marker will reveal the area’s average house price and expected rental yields, allowing you to compare and contrast at the click of a button.

Also revealed is the number of sales in the previous year, current average asking prices and current average rental prices and yields– a big help for property investors seeking their next purchase. Over 100 areas are listed, from Truro in Cornwall, all the way up to Lerwick in the Shetland Islands.


Investing in Toxteth is a Step in History and New Luxury

Posted on by Aspen Woolf

Liverpool’s inner-city areas contain some of the UK’s hottest property right now. With house prices below the national average and producing healthy rental yields, investors across the country are taking notice.

One such area is Toxteth, just south of Liverpool city centre, that has benefited from extensive urban regeneration schemes since the turn of the century.

Despite this modern investment, developers and locals alike are keen that the original architecture and character of the area is preserved as much as possible.

Coleman Fireproof Depository Building

The renovation of the old Coleman building is a standout example. Well recognisable in the area due to its standalone, red brick façade, the property sat empty for many years and fell into poor condition. However, ongoing developments are set to transform the iconic building into a set of luxury apartments by mid-2017.

Coleman's Fireproof Depository Warehouse is being renovated into luxury apartments

Coleman’s Warehouse is being renovated into luxury apartments.
Image credit: Radarsmum67 via Flickr

The designers and developers were keen to preserve its historic features, such as the Victorian iron doors and old-style goods lift, whilst modernising the interior décor. Echoing Toxteth as a whole, this approach of transporting older buildings into the 21st century whilst maintaining their original charm is appealing to many investors.

Granby Row

Liverpool is noted for its rows of terraced housing and Toxteth encompasses its fair share of these traditional Victorian buildings. Perhaps the most well-known of these are the Granby Four Streets, a collection of terraced homes subject to multi-million pound refurbishment since 2010.

The roads in the Granby Row multi-million pound refurbishment

One of the roads in the Granby Row multi-million pound refurbishment won the Turner Prize in 2015.

The regeneration project gained nationwide attention when the Cairns Street project won the Turner Prize in 2015. This showcased the commitment in keeping Liverpool away from the stereotypical and sometimes bland modernisation schemes that take place elsewhere.

Welsh Street

This attitude has been extended to the planned regeneration for Toxteth’s Welsh Streets neighbourhood, resulting in 25 revitalised energy-efficient homes in the area. Plans to demolish the historic tenements, including the childhood home of Ringo Starr, were previously blocked by former communities’ secretary Eric Pickles.

Instead, the drive to preserve their traditional Victorian architecture whilst refurbishing the interior to modern standards was favoured. This is just another example of how the area is being transformed whilst still maintaining a foot in history.

Victorian architecture of Welsh Street

The Victorian architecture of Welsh Street is being preserved

Investing in Toxteth

Toxteth in general is an attractive part of Liverpool to invest in. With lots of properties, its close proximity to the three main Liverpool universities guarantees a steady stream of tenants every year, along with rental yields of around 7-10%.

Transport into the city centre is also very accessible, especially with properties near Aigburth Road such as the newly renovated Coleman building. Brunswick train station is also close by, providing quick access into the city centre and across the North-West.

Despite some previous prejudices about the Toxteth area, signs of social instability have been eradicated with numerous investment schemes and a stronger local economy. The older, more traditional homes have been modernised but still retain their original charisma, providing a wealth of opportunities for property investors.

If you’re ready to start your Liverpool investment journey, contact us today.
If you’re still want to learn more about Liverpool and why it’s a great place to invest your money now, you’ll find more reasons in Why Invest in Liverpool.

Liverpool: Why Invest in the Hollywood of the North?

Posted on by Aspen Woolf

As a property investor, it’s in your best interests to locate real estate within a region with a strong local economy and high growth potential. That’s why Liverpool should be high on your list when considering an investment – a city blessed with a rich cultural heritage, but with much to look forward to as well.

Regeneration Schemes

Liverpool has been subject to all sorts of development schemes since the turn of the century, a clear indication of investment confidence in the region.

The MIPIM UK, a distinguished real estate event attracting a host of business and property experts, will be attended by Liverpool City Region representatives to sell the North-West region. Promoting the event is Ellen Cutler, head of Invest Liverpool, who points out that:

“Liverpool has really come into its own in the last ten years, with developments like Liverpool One, the Arena and Convention Centre breathing new life and confidence into the city.

“This is a dynamic, accessible region with a brilliant world-class brand backed up by solid, significant investment that is driving forward growth across the region.”

There’s also the recent £40 million restoration of Lime Street, producing an impressive “facelift” for one of Liverpool’s main road links, and the government-backed £130 million Stanley Docks regeneration scheme.

Stanley Docks is part of a £130 million regeneration scheme.

Stanley Docks in Liverpool
Image credit: SPDP via Flickr

Furthermore, plans for the new £2 billion Knowledge Quarter are also picking up speed. The five year project is set to produce a world-class destination for science, technology and innovation specialists in the vicinity of Liverpool’s prominent educational institutions.

Life in the City

Although much is made about the city’s musical legacy and sporting achievements in years gone by, that doesn’t mean Liverpool is stuck in the past. There’s an eclectic range of activities for people of all interests to enjoy, aided by a vibrant nightlife and a social population.

Liverpool is full of important cultural history and still has an active culture scene and night life.

Liverpool Metropolitan Cathedral
Image credit: Matthew Black via Flickr

The city has benefited from a thriving economy in many ways. For example, Liverpool has more people in employment than ever before and a healthy number of vacancies to boot. This is good news for the buy-to-let sector as workers are more likely to rent properties with a guaranteed income behind them.

Investment Opportunities

A stable local economy will see property increase in value and attract more people to the area, a trend likely to entice shrewd investors in the current climate.

This is all fuelled by a thriving buy-to-let sector and healthy student population, guaranteeing tenants year in, year out. As another bonus, Liverpool produces some of the highest rental yields in the country, helped by the fact house prices are lower here than the national average.

Hollywood Comparisons

The Liverpool Film Office, currently celebrating its 25th birthday, is enjoying a purple patch having recently hosted the box office film Florence Foster Jenkins, starring Hugh Grant and Meryl Streep.

Liverpool is the backdrop for a number of great films and television programmes.

Foyle’s War being filmed in Liverpool
Image credit: Beverley Goodwin via Flickr

Liverpool has become a draw for film companies due to its location-friendly scenery and cooperation from local businesses. As more film companies seek out Liverpool for their productions, this can only be good news for the city.

With increased investment and employment rates in the city, combined with relatively low house prices and a thriving buy-to-let sector, there are plenty of reasons to be choosing Liverpool – the Hollywood of the North – as your next investment venture.

Considering investing in Liverpool? Check out our latest investment opportunities.
If you’d like to know more about investing in Liverpool property, you might be interested in our top six Liverpool postcodes to invest in.

What Should I Do with My House – Let it or Sell It?

Posted on by Aspen Woolf

There is no simple answer to this question and much depends on your personal circumstances. However, if you can afford to let out your current property and still move into a new home, this continues to be the best course of action despite any post-Brexit concerns.

Why Let?

Letting is highly desirable for numerous reasons. Firstly, it provides an additional income per month with little to no risk involved, hopefully whilst the property gains value. There’s also the added long-term security of owning bricks and mortar.

For those unsure of their future plans, perhaps due to work or family commitments, letting out your home also means there’s the option of moving back in at a later date.

Should you sell or let your house?

Why Sell?

Obviously, selling up gives you access to instant cash – far more than you’ll have by letting. If you’re planning on moving home and need a large equity sum, selling it is the best option. This makes even more sense if prices are decreasing and you want to extract the best possible price for your home while you still can.

Many people are unsure of whether it’s the right time to sell and what impact Brexit has had on the property market as a whole. Despite some mixed signals, it appears that the Referendum result won’t have dire consequences for the UK property market.

Brexit Aftermath

Some homeowners are understandably concerned that leaving the EU will have an adverse effect on their property. However, despite the falling pound, it looks as if the usual trend of supply and demand is holding up.

This is pushed by the current shortage of housing, a bittersweet circumstance that has kept house prices stable on the whole and still rising in some areas such as Liverpool, Manchester and Leeds.

Demand for property is still high despite Brexit.

A survey from the Royal Institution of Chartered Surveyors shows that buyer enquiries increased during September and October, another sign that confidence in the market remains.

Points to Consider

Owning multiple properties can bring complications if mortgages are involved. The simple question is, can you afford to keep up with the required payments on all your homes?

If choosing to let, rental income should ideally be able to cover your mortgage payments, although this in itself needs further consideration. For example, will the property always be occupied? Prolonged vacancy may make it difficult to pay the mortgage. Also, will the property require any maintenance work? It’s your responsibility to cover these costs throughout the year.

There are a lot of things to consider when deciding whether to sell or let your house.

As a side note, also bear in mind that the terms of your mortgage may actually restrict or prevent renting out your home in the first place. To get around this, taking out a new buy-to-let mortgage will be required, although this may result in additional arrangement fees as well.

The general consensus is that property values will rise in the long-term as speculators realise Brexit isn’t as detrimental as some Remainers are making out. With this in mind, it is likely that letting your property in the current economic climate is recommended.

However, by taking mortgage and tax payments into consideration, selling outright may be your best option. If you’re unsure of which way to go, it’s suggested you seek advice from a professional estate agency on the matter.

If you’d like more information on the current rental market, you may be interested in how property rentals are exceeding property sales for the first time since the 1930s.

Posted in UK

Dubai Expo 2020 – The Effects on Property Prices

Posted on by Aspen Woolf

In 2013 it was announced that Dubai will play host to the renowned Expo world exhibition in October 2020. As well as exuberant celebrations and high anticipation for the UAE city, the reverberations of the result were also felt throughout the property market.

As the event draws closer, estate agents and property speculators are confident the Expo 2020 event will have positive consequences for property prices in Dubai.

The positive effects of Expo 2020 are already being felt in Dubai.

Image credit: Sam Valadi via Flickr

What is Expo 2020?

From October 2020 to April 2021, a series of technological events and presentations will be on show around Dubai, attracting the world’s leading individuals and companies exploring networking opportunities.

Because the universal exhibition hasn’t been held in the UK for over 100 years, it may not be within the public conscience domestically. It is a very important event however, helping to boost the economy of the host city to a great extent.

The positive effects of Expo 2020 will be very rewarding for Dubai and the UAE as a whole. An injection of £30 billion will be pumped into the economy, supported by an influx of around 20 million visitors and helping create nearly 300,000 new jobs in the process.

Dubai property prices are set to rise in 2017.

Image credit: J D Mack via Flickr

Dubai Property Market

Indications show that the Emirate’s property sector is already starting to perform well after periods of uncertainty from 2008, even without the benefits of Expo 2020 taken into consideration. Property prices have stabilised and look set to increase from 2017 onwards, aided by Dubai’s thriving tourism sector and ongoing government investment schemes.

Rental yields in Dubai can reach up to figures of around 8-10%, especially in the apartment sector located around the Dubai Marina location. With property prices remaining stable but expected to rise closer to 2020, it’s worth considering an investment during the current climate.

Effect of Expo 2020

The UAE government is sparing no expense preparing for Expo 2020. Huge investments are being made to improve the infrastructure of the city to cater for large visitor numbers and provide entertainment. Work has also begun on a structure known as The Tower, designed to be bigger than the Burj Khalifa.

New investment opportunities are now under construction in Dubai.

Image credit: Joi Ito via Flickr

Real estate will benefit from these mega investment schemes in particular. The general consensus is that this increased investment from wealthy foreign buyers will strengthen confidence and increase Dubai property values, even after the exhibition has ended in 2021.

Likewise, due to the significant influx of workers and tourists to Dubai in the build-up to Expo 2020, the rental market in particular looks an attractive prospect for buy-to-let investors. Of course, construction and hospitality staff require somewhere to stay, as do wealthy businessmen who will visit during the exhibition.

Investors looking for long-term growth potential should consider an immediate purchase of a Dubai property and take advantage of the healthy rental market. Being prepared to hold this real estate through Expo 2020 and beyond will reap the biggest returns on investment as prices are expected to rise in the long term. Not to mention the rental income gained during this time.

If you’re ready to invest in Dubai, get in touch.
If you’re not quite ready to invest yet, you might be interested in some more reasons why the time is right to invest in Dubai.

Dubai Property Investment? The Time Is Right Now!

Posted on by Aspen Woolf

Buying real estate in the Dubai property market is something investors should be considering during the current climate.

Numerous indications show the most populous United Arab Emirates city, famed for its more liberal and glamourous lifestyle, is on the verge of major investment and expected property price increases through 2017.

As Dubai has many things going for it right now, we’ve taken a look at why a property investment there is becoming an attractive prospect for international buyers.

Political and Social Stability

It’s perhaps natural to think the Middle Eastern region is constantly under threat of political upheaval and even war. However, there’s no such concern for the UAE, a country that has more relaxed laws and a general respect for other cultures. This has allowed Dubai to prosper as a tourist destination during the 21st century.

 

Dubai has many benefits for both expats and tourists

Although an Islamic country, the laws are beginning to relax for non-Muslims in the city. For example, residents can drink alcohol at home and in certain venues with an alcohol license. Likewise, a recently passed law allows non-Muslim expats to include property in their will should the worst happen.

Of course, many expats are also drawn to Dubai because there is no enforced federal income tax legislation within the United Arab Emirates. In terms of a property purchase, there’s even more good news for investors with no VAT or capital gains taxes to contend with, along with no annual property charges either.

Expo 2020

Dubai was chosen as hosts of the Universal Exposition, or Expo for short, to be held in 2020. It involves the staging of a majestic public exhibition showcasing a wide range of events, attracting a staggering 20 million visitors in the process.

 

There are events coming up in Dubai which will boost the property market.

An Oxford Economics report declared that the impact of hosting the exposition would be extremely beneficial to the economy. Nearly 300,000 jobs will be created in the build-up to the event, with a lasting legacy to boost the whole region.

For property investors, acquiring a Dubai property right now is recommended before the Expo 2020 boom starts to hit.

Optimum Prices

Shrewd investors take advantage of favourable buying opportunities in the market and, right now, Dubai is one of them. Current property values are on the relatively low side after recent drops in price, but are expected to rise as we approach 2020.

 

Now is a great time to investment in Dubai property.

Another bonus is that rental prices have remained the same, thus improving yields significantly for landlords. Average rental yields can range from 7-10% per annum, far higher than the average for other major cities around the world.

Because of this, it’s favourable to consider buying as opposed to renting. In the current climate, it may actually be less expensive to obtain a mortgage than pay rent in the long term. Rents are also expected to increase as Expo 2020 draws closer and wealthy financiers come to town.

Property in Dubai offers more value for buyers than other prominent cities around the world. A report by estate agents Knight Frank shows that you’ll get around seven times more space in square metres with a Dubai property purchase than you would in London, Monaco and Hong Kong.

Numerous experts believe the Dubai property market is maturing, mainly because prices have remained stable since mid-2014. This shows confidence is returning and will soon attract investors looking to take advantage of these long-term growth opportunities within the city.

If you’d like to know more about investing in Dubai, get in touch with us today.
If you’d rather stick with investing in the UK but are worried about the current market climate, you might be interested in why there’s no prospect of a housing market crash.

What Should Every Landlord Know About Tenant Referencing?

Posted on by Aspen Woolf

For landlords in the UK, the integrity and reliability of your tenants will determine the success of your property portfolio. A staggering £5 billion is lost in unpaid rent and property damage every year, leaving landlords out of pocket and with a difficult fight on their hands to claim compensation.

To reduce this likelihood, it pays to thoroughly scrutinise potential tenants before they move into your property. Although plenty of tenant referencing agencies have emerged in recent years, not all of them are as effective as they should be – the statistics show that landlords are still being seriously affected by arrears and repair costs.

Tenant referencing companies should provide the most comprehensive background checks on your behalf. Before utilising their services, landlords should ensure the following is  provided.

Identification Checks

A good place to start is with simple I.D verification. If dealing with foreign tenants, it’s actually required by law to check their residential status under the 2014 Immigration Act. If you are housing illegal immigrants, a fine of up to £3,000 can be imposed for each tenant.

 

Get more than credit checks when getting a new tenant.

Credit Checks

Credit checks alone aren’t sufficient in testing the competence of a tenant. Despite being advertised as such by some referencing agencies, they’ll only trigger a warning if the individual has a county court judgement or other adverse payment defaults. Most tenants won’t be included in this category so, although a necessary part of the process, they aren’t fully reliable.

Supporting Documentation

During the application process, prospective tenants must have all the required supporting documents to verify their submission. Ensure any paperwork is an original, authentic copy, hasn’t been tampered with and contains genuine photo I.D certification. Look for any further discrepancies within the documents, such as an inconsistent bank statement.

 

Make sure you're comfortable that your new tenant can afford the rent.

Income Reference

With the proper documentation at your disposal, you can find out the affordability prospects of the tenant. Verify their job title, employment status, salary and any other income before leasing out your property. So many landlords sacrifice this aspect of their referencing in favour of the immediate earnings. This will come back to haunt you if the tenant can’t keep up their rent in the long-term.

Previous Landlord Testimonial

A fantastic way to supplement the aforementioned checks is to simply enquire with the tenant’s previous landlord, if applicable. However, you should go further than the obvious “did they pay up on time” line of questioning. Ask of their general attitude and care towards the property, as well as their reliability and responsiveness to enquiries.

 

Doing a number of checks into your new tenants will be a good investment in the long term.

A bad tenant is simply a drain on your investment and is likely to lead to an infuriating, costly eviction process further down the line. As a landlord, it’s your responsibility to assess tenants as strenuously as possible, using a reputable referencing agency for full clarity.

During the interview stage, don’t be scared to ask in detail about the individual’s history, expected income and supporting documentation. Try and strike up a positive rapport with them, showing how you’re a reasonable landlord and will be on hand if any problems arise. This way, they’ll be less inclined to betray your good nature and disregard your property.

Now is a great time to get into the rental market or build your property portfolio. If you’re interested in learning more, check out our article on how property rentals are currently exceeding property sales.