To buy or not to buy....

That’s the question! Which way is the housing market in Middlesex going? Lots of people comment intelligently on this subject, but in reality, who really knows? I have a number of landlords who are looking to invest further in property in Teddington or Hampton but are concerned by the recent increase in house prices. Should they jump in now, or should they wait? I’d suggest the following:

·        Housing is a long term investment, not a short term one. Over the last few years people have forgotten this and have treated the UK housing market as a ‘get rich quick’ scheme. This could well have worked if you bought 2 years ago and want to sell now but to play the short game in property investing is a much bigger risk and requires a lot more time and effort. Those who work the long-term investment game, tend to remain relatively unaffected – they are under no time pressure and are unconcerned by the short term hikes or dips in fortunes. Teddington is such a desirable area that the likelihood of prices dropping significantly, if at all, in the future are exceptionally low.

·        It’s more or less impossible to pick the bottom of the market, and because of my first point, it shouldn’t really be necessary to do so. If you manage to pick it, I’d suggest it’s more by luck than judgement. To be successful, you just need to make sure you don’t overpay in whatever market you’re buying in. My most successful landlords are the ones that pick up the bargains – they study the market, don’t get pressured into buying by estate agents, but when a genuine deal becomes available they move quickly and decisively. You’ll often find the best buys are properties in poor condition – successful landlords aren’t put off by this and simply include the cost of works in whatever they are offering for the property. However bad the market, well presented properties always command a relative premium and as such usually aren’t the bargains people think.

·        As we stand currently, the sales market is moving slowly across Teddington and Hampton. The volume of sales being achieved by local agents has been low all winter, with the few sellers that there are often being over-ambitious on their sale prices. If this continues, there has to be further upward pressure on prices in the next 3-6 months which suggests that now is not the best time to invest. However, there will always be bargains out there and so, as long as you keep your ear to the ground, don't get carried away and double/triple check that you're not overpaying, then it will pay off in the end.

I continually maintain and build a list of landlords who are looking for more Teddington or Hampton property in the near future. When we become aware of a suitable property, we email round and generally someone picks up a decent deal. 4 properties have been acquired in this way in the last 3 months alone.  If you want to be included on these email lists, drop me an email and let me know.

Rebecca Smith

Want to get rid of a tenant....?

Getting rid of a tenant, when that tenant doesn't want to go, is never easy. It’s not usually necessary either, as the vast majority of tenancies don’t end up at the stage where the landlord ‘wants rid’ of the tenant. Occasionally, maybe in about 1% of cases, the landlord does need to end the tenancy. I had a particular case of this when I met a landlord whom I'd not worked with before. He owned 2 one-bed flats in the Harrowdene area of Teddington and he came to me for advise on how to evict a couple from one of the flats. It wasn't simple, but there were a few points which were worth noting:

1.       Any tenancy is always best ended amicably, because it’s quicker and cheaper. If you can persuade your tenant to leave within a reasonable period of time, that’s always going to be your best option. I've done a few viewings around Teddington recently with prospective tenants who told me that their current landlord had asked them to leave, for a variety of reasons. The tenants were happy as they had been communicated with openly and had been given plenty of notice to look for somewhere new. As such, even if you are having problems with your tenant, maintaining good communication is always beneficial.

2.       If things can’t be done amicably, you’ll need to apply to court for possession of the property. Certain notices have to be issued to the tenant beforehand and a landlord needs to make sure that all dates and tenancy paperwork are 100% correct or the court won’t hear the case. Note that if the tenancy deposit hasn't been registered in accordance with the rules, the landlord will not be able to make a successful claim for possession.

3.       The length of time it takes the court to award possession can vary massively. We had one case recently where the landlord applied at the start of a month and had possession at the end. Equally there have also been periods in recent years where the court has been 3 weeks behind with just opening mail, and as such possession has taken 3 months.

4.       If your tenant is in receipt of benefits, you’ll get no assistance from the Local Authority at this stage, although of course they’ll make noises about working with landlords at the same time. The Local Authority is responsible for re-homing anybody made homeless as the result of eviction, but they won’t do this until the landlord has been all the way through the court process, right up to the point of a bailiff visiting. As such getting rid of a Local Authority tenant can take time.

So what does it cost? Well if you go all the way through the process, you’re looking at about £400.00 in court costs, plus what ever legal fees you incur.  If you've purchased good quality landlords insurance (such as the one we sell!), you should get reimbursed for the lot. Alternatively you may need the services of a solicitor, although a competent lettings agent should be able to assist at reduced cost. Either way, evicting a tenant isn't a cheap option.

The main message, which won't surprise you, is that if you do manage your own tenancy, avoid an eviction situation wherever possible!

Rebecca Smith

Is an inventory REALLY necessary?

A landlord I met with who has a rental property just off Twickenham Road in Teddington asked me yesterday if he really needed an inventory. "It's unfurnished, yes? So there's nothing to list" was his understandable justification for thinking it wasn't necessary. However an inventory doesn't just record things that are in the property, it also records the condition in which the property has been given to the tenant, which can be really important when the tenancy comes to an end.

The reason for this is that the law now assumes the tenancy deposit belongs to the tenant. If a landlord wants to claim on a deposit, he must be able to prove that the condition of the property has changed during the course of the tenancy. If there's no record of the property condition at the start of the tenancy, its more or less impossible for a landlord to claim the condition has changed at the end. It has been this way since new deposit rules came in in 2007.

For this reason, a landlord without an inventory is on weak ground. I had a landlord with a 2 bed apartment in Hampton who insisted they didn't need an inventory - the property was unfurnished and they had never had one previously. The tenants didn't trash the property, but they did cause damage to a couple of carpets that the landlord wanted replaced. The tenants however claimed the carpets were in poor condition at the start of the tenancy and as such hadn't been damaged by them. When the deposit dispute went to adjudication under the new rules, the adjudicator was unable to decide which party was correct and as such awarded the full deposit to the tenant by default. The landlord thus had to pay for his own new carpets. 

To further enhance the landlords position, good inventories these days are done with a camera. This eliminates the potential for argument over what a written inventory actually means. "Painted door with small mark towards bottom" is ambiguous. A photo showing exactly what that small mark looks like can't really be argued with! Since the introduction of photo inventory's none of our landlords who have used one has ever lost a deposit claim to a tenant. As such there's an argument they are money well spent!

Rebecca Smith

Welcome to my blog...

My name is Rebecca Smith and I am the founder and owner of an independent residential lettings agency, based in Teddington, called Rebecca Smith Property Services Ltd.  I am totally passionate about property and have been for years so this really is the perfect job for me! :o) I read everything, watch everything and listen to anything that is about property and am picking up new information on a daily basis.

I decided to start a lettings business in Teddington after receiving consistently poor service from letting agents generally. Right throughout my life, from my time as a uni student through to being a young professional, I have rented property and experienced first hand how an agency 'could do a whole heap better'! I have now climbed onto the property ladder myself and am also in the process of building a property portfolio which means that I have first hand experience of what it's like being a landlord. Put simply, that makes me run my business better. 

I've decided to write a blog so that I can put my thoughts down on 'paper' and pass on lots of hints and tips which you hopefully find useful for your property investments in and around Teddington. I'll also be keeping my eye on the Middlesex and Surrey market and posting any particularly good buy to let deals which may interest you if you're in a position to add to your portfolio.

I hope you like it, please do let me know if you find something interesting or want more information on a particular subject. Chances are, I'll have experienced whatever it is, and so will be happy to offer advice.

Thanks!

Rebecca Smith