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What Is Property Management

May 27, 2012 By Leave a Comment

Property management relates to the operation and management of residential (e.g. residential property to rent in Liverpool), industrial, and commercial properties. It is the same as any other type of management in any type of business. A property management company operates everything on behalf of the landlord. E.g. duties may include credit and background checks on tenants, advertising vacancies for landlords, responding to and addressing maintenance issues, and accepting rent from the tenants.

A property management company, like any other business will charge you a pre-determined fee for their services…. because it adds value, in relation to time and expertise.  Most property management companies and specifically those dealing in houses for let in Liverpool will charge a certain percentage of the gross rent collected every month.

In order to save this money, you could complete all of the required jobs yourself. But, if you have lots of properties to manage, you may find all these tasks, daunting. Always remember, tenants are not very easy people to deal with. A serious property person will always invest their time on other core issues of the this type of business venture. Time is the most important factor so it’s always worth using the services of a professional property management Liverpool based company.

If you need anymore answers or would like a property management company you can trust…  call Bluerow Lettings on 0151 709 9638

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Why Would You Buy A Property… Hidden Costs

April 10, 2012 By Leave a Comment

Do you know the full cost of buying a home?

 

Here are some expenses you will have to keep in mind.

The cost of your property isn’t the only price you see on in the estate agents window. For example, a lot of buyers, especially first-timers, go over budget on the purchase of their house simply because they haven’t factored in stamp duty.

This means if you have a property to let in Liverpool, you’re in a strong position, as prospective buyers simply wouldn’t be able to afford the full cost of buying a property… particularly first timers.

Here is what a buyer needs to think about;

Home Insurance

Costs vary with this one. It’s a postcode lottery, the same city and depending on your property could mean you pay as little as £170 or as much as per £700

You probably won’t be able to get a mortgage without having it, or at least having the intention too.

To keep costs down;

  • Shop around
  • Consider switching from your mortgage company to a general insurance provider;
  • Use a good broker that will shop around at renewal time for competitive quotes;
  • Fit high-quality locks on exit doors and windows;
  • Fit a smoke alarm and insurer-approved burglar alarm;
  • Join your local Neighbourhood Watch scheme;
  • Keep valuables to a minimum.

Stamp Duty

Stamp duty is a tax levied by the government on the transfer of properties. Depending on the cost of your property this will be a big one;

  • 1%: Properties of £125,000 to £250,000, but first-time buyers are exempt until 24 March
  • 3%: £250,000 to £500,000
  • 4%: More than £500,000
  • 5%: More than £1m, residential property only

If the purchase price of your house is less than £125,000 you won’t need to pay stamp duty.

Furnishings

Obviously these costs are subjective, but we all know that a bed alone can cost over £1000 and the same for a couch. If you haven’t budgeted, you’re new property could look really really minimal.

You don’t have to buy your furniture all at once, but I’d imagine a minimum of £10,000 to have a standard amount of furniture and fittings.

Moving Costs

If you have a few houses to let Liverpool, you’ll be very aware already of the moving costs. Few people realise that estate agent’s fees can be massive! I’ve heard of fee’s as much as 6% of the value of the property. Remember these are open to negotiation and can vary between 1% and up to 3% of the purchase price, depending on where you live and the state of the market in your area.

Actually moving will incur costs, and some of you may need a storage solution. You’ll need to be proactive in adding these costs to your budget.

Solicitor’s Fees

Expect to pay solicitors fees of around £550 for a house with a purchase price of £100,000.

So if you want to have a regular income and you have a property available to let, you’re in a very good position.

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Filed Under: Do your sums, Furnishing, Insurance, Study the Market Tagged With: , ,

Take Note When Renting Out Your Property

February 28, 2012 By Leave a Comment

Renting Horror Stories

In the last couple of weeks we’ve heard some real horror stories about tenants in various property to let in Liverpool. I thought I’d share a couple of quick stories then give you advice on how to avoid these pitfalls.

Problem – Not paying rent

Some of the most common and worst experiences involve this type of circumstance. Usually it’s a friend, maybe they’ve had some recent issues and need a house to let in Liverpool. You’re more open to them as prospective tenants, but take heed! We’ve heard horror stories from independent landlords about friends that only end up paying rent for the first couple of months, and then sneak away. You can sometimes be easily persuaded by people you know, as they imply the trust you need. The result is you skip over the must needed checks that are designed to protect you from this type of problem.

Resolution

Don’t even think of missing out on credit checks! Please don’t forget to take a security deposit… It’s a mandatory requirement. This will ensure your prospective tenants are not only solvent enough to pay, but have an incentive. Another trick is ‘power distance’ (the further you remove yourself, the more power you have)! If you have a lettings agent collecting rent, they can be as nasty or as nice as needed. They can collect rent from friends, enforce the rules, and basically do all the nasty work without any fear of compromising your friendship.

Problem – Renting to family

On request of another family member, you decide to rent to a cousin or relation you’re not that close with. They wreck the house, may sell some fixtures and furniture, and destroy your reputation with neighbours. When they leave, you need some serious repairs before you can bring in another tenant. They talk to family members and persuaded them that the property was already in disrepair and use phrases along the lines of… “when we moved in, the place was already missing…”

Resolution

The same resolution as above, checks, checks and more checks! You should always take detailed lists of the property fixtures, fittings, and previous damage. Walk round with the tenant and point these out to all interested parties. A lettings agent, will be vastly experienced at this and knows all the potential trouble spots. I can’t stress enough that letting agents just have an eye for these things, and will make sure the handover is watertight. They will also pull no punches! They won’t create any animosity between family and yourself, and will quickly be able to produce signed documents that can settle the disputes.

Problem -  Pets In The Home

We know of animal lovers who once they’ve their own place, start collecting animals. You may have initially only agreed to an outside dog, but later down the line, you’re made aware of lot’s of dogs and cats. Sometimes they may alter your garden, extra fences, I’ve even heard of a basements full of animal cages, that they couldn’t possibly keep clean and smell free!

Resolution

You must detail specific acceptable and unacceptable areas in the contract. You should have a keen dialogue with neighbours and if anything comes up, arrange a visit. Lettings agents will be able to give you air tight contracts which can include penalties for unacceptable additions to the property and unwanted animals.

Conclusion

Basically, you need to smart when renting out your property! A property management company can take away the hassle and be as involved as much or as little as you wish.

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Filed Under: Checking on tenants, Insurance, Pick tenants with care Tagged With: , ,