Check, double check and check again.
Many potential problems any landlord is going to encounter stem from not doing the correct background checks at the outset. This may sound simple but it is amazing how many this is not done as many landlords are anxious to let their property as quickly as possible.

Always ensure you know the background of your tenant, their rental history, their employment situation and their credit status. Even first time tenants should be a able to provide good solid references, but don’t take these at face value; remember, you can always undertake your own background checks through companies that specialise in that area, including checking criminal records.

If all of this seems a little too much and you don’t know where to start, engage the services of a good Letting Agent who will be able to do all these checks for a small fee.

Maintain a good relationship
It is imperative that you have a great relationship with your tenant and this starts on the first day you have any dealings with them, even before they move in to your property. When you are showing them around prior to the rental, note any issues they may have and if you agree to repair or change something, ensure it is done before they move in. It is important for you to remain consistent, courteous and professional at all times.

Pre-empt any potential issues
Visit the property from time to time to check for any maintenance needs and attend to them quickly, leaving your tenants with outstanding or recurring problems can cause resentment and distrust. You can minimise the problems of damage & maintenance by using durable hard wearing materials, such as washable paint throughout, use carpets in dark colours and stain protect them, or use good quality vinyl. Speak to the neighbours; this is a great way to find out if there have been any noise or anti-social behaviour problems that can be sorted out before they get out of hand.

Keeping up to date with what is happening with your property and tenants can avoid any problems before they arise and the main thing to remember when dealing with your tenants is, to remain consistent, courteous and professional at all times.

As the availability of local social housing is contracting due to government spending cuts in the social housing budgets, the market for good quality private rental accommodation is expanding to fill the gap. This expansion is fantastic news for the first time landlord looking to get into the rental market, with interest rates and property prices at an all time low there has never been a better time to utilise your savings or equity in an existing property to boost your income. With up to a 15% return on your investment Happy Homes Investments can help you get your savings working for you again.

Call us today for a free consultation.

Historically Buy-to-let mortgages have always come at a premium so for many balancing the income from the property against the expense of the mortgage has given them cause to steer clear of property investment, but with a growing rental demand come higher rents and rental income.

‘The good news is that, although buy-to-let lenders have tightened their criteria with higher deposits and rental cover calculations, rising rents make it is easier for landlords to meet these demands,’ says Melanie Bien, director at broker, Private Finance.

Steering clear of high street lenders and going through a specialist broker with access to ‘limited distribution’ mortgage deals, can uncover some gems. Mortgages for Business for example, is currently offering a 3.99% two-year discounted tracker in return for a 25% deposit, for all types of landlord.

Bear in mind however that, while fixed rate buy-to-let deals are available, they tend to be disproportionately expensive – and interest rate rises are looming large on the horizon. Credit Scoring requirements for the most competitive buy-to-let deals are also pegged high so it’s worth applying for a copy of your credit file through one of the credit reference agencies if you are in any doubt.

Since the beginning of the year lenders have begun to change their lending patterns and started to look more favourably at the first time landlord rather than the professional landlord. Not surprisingly these new buy-to-let customers are borrowers who have large credit balances earning very little interest who have become very disillusioned with standard bank accounts and are now looking for alternative ways of getting a decent return on their investment.

With the lenders easing many of the restrictions around buy-to-let mortgages such as deposits, interest rates and other criteria thus making them more affordable and readily available, coupled with the demands on the rental market increasing month on month and rental income providing a better return on investment than your standard bank accounts there has never been a better time to become a property investor.

With up to a 15% return on your investment Happy Homes Investments can help you get your savings working for you again. Call us today for a free consultation.

Many private landlords had expressed their concerns even before the General Election, about the Government’s plans to pay housing benefit to tenants rather than straight to landlords since this had caused a growing rental arrears problem.

One of the key changes planned for next January will be to encourage younger tenants to live together in shared properties rather than more expensive one-bedroom flats. The Shared Accommodation Rate currently limits the benefit a single person under 25 can receive to the average rent charged for a room in a shared house.

There are also not enough shared properties to accommodate the increased demand the Coalition’s proposed cuts will trigger; Shelter says 87% of local authority housing officers it surveyed already had difficulty finding places for under-25s on the shared accommodation rate. It says this shortage will become acute when the net includes those up to the age of 35.

The Government has defended its proposals on several grounds. One argument is that the cut in benefits might encourage more families to take in lodgers under the rent-a-room scheme, where some of the income is tax-free. Steve Webb, Liberal Democrat Pensions Minister, has said, “As young people start to realise they cannot get benefit for a flat on their own and start to look for lodgings, another family who may have lost income through redundancy might wish to let their spare rooms.”

At Happy Homes Investments we always advise using a fully qualified and reliable letting agent to ensure the reliability of your tenant.

Robert Kiyosaki (motivational speaker and author of the “Rich Dad, Poor Dad” series of books sums up the definition of an investment perfectly “To be an asset it must pay you cash every month, AND appreciate in value”

Far too many “investors” concentrate on the later part of this quote and forget about the income, many are enticed by the promise of a huge growth in the value of their property and are left with a cash flow negative property (outgoings and commitments higher than rental income) that they cannot sell, there is no longer the guarantee that a property will immediately increase in value as soon as you have done any alterations or repairs, Many investors are then left with a liability which they have to pay out cash for month on month. The results of which are:-

Reduction in your standard of living, an investment is supposed to enhance your lifestyle not restrict it.

Problems should your other income streams fail through unemployment, dividend payments; this may force you to sell your property at a loss causing more financial problems.

Increasing your portfolio becomes impossible if you are already subsidising 1 property at £200 per month do you want to increase this to 10 properties and £2000 per month.

It really is important to do your homework and ensure you purchase a property that gets the balance between income and growth right and the only way this can be done is to follow the steps laid out to you throughout our guide.

1. Find the right property
2. Pay the right price
3. Keep refurbishments within budget and timescales
4. Factor in any hidden costs
5. Ensure you have tenants ready to move in as soon as the property is ready

At Happy Homes Investments we ensure these points are covered every time for every investor, as we want to make sure our Investors buy a good solid investment not a liability.

There are various way you can go about setting your rent many of them have pitfalls so don’t just go with the one source. So where can you turn to

Letting Agents.
The Letting Agent will have a vested interest in what rental you charge don’t forget they take a percentage each month

Adverts in the paper.
These can only give you a guide line, and can be between £50-£75 per month out; specifics of decoration and facilities in the property can demand a higher rental

Estate Agents.
Like the Letting Agent they have a vested interest in selling the property and can easily inflate any potential rental income

Personal Viewings.
This is the only sure fire way of putting your rental into the correct bracket. Take time out to go on a few lettings viewings preferably in the same street as your own property, compare the fixtures and fittings along with the decoration against that of your own property and an absolute must is to look at how long this property is taking to be let, if this is over 4 weeks then it is probably overpriced.

Don’t forget to review your rental charges on a regular basis and ensure all rises are suitable for the type, locality and condition of the property

Beware of getting emotionally involved; you’re not going to be living there. This is a business not a home. It is so easy to spend £5,000 extra on “creative luxuries” on a job and at the end discover you’ve not added a single penny to the achievable rent. What a waste.

Also think about time overruns. There is nothing that annoys tenants and letting agents more than being told a moving in date, only to find the refurbishments aren’t complete by the date you set. So the tenant is left either homeless or living on a building site.

Beware also of under spend; cheapest isn’t always the best value for money. You want that new kitchen to last 10 years otherwise you’ll have to spend more money replacing it every five years or so. Tenants don’t like living in properties that start to “fall apart” and they are likely to vote with their feet, leaving you with an empty property, no income and the mortgage to be paid. A false economy if ever there was one.

A great way to avoid many of these pitfalls is to use a quality reputable company such as www.buildingservices.com or www.buildingsolutionsmidlandsltd.co.uk

Some see the private rental market as the only option in the current economic climate, tough mortgage criteria and the Government’s cuts to the Social Housing Budget.
The high demand for rental property means that many landlords are able to maintain a god level of rental income whilst enjoying low mortgage interest payments and so maximising their return on investment.

Deals taking longer than they need to.
A solicitor can if they work at it get a deal through to completion within 2 weeks (Happy Homes record is 8 days)
A solicitor can also delay a deal by up to 5 months either by good negotiation for your benefit or dragging their heels to your detriment.
Deals falling through.
If a solicitor is not chasing all the parties involved it is possible for the deal to quickly sour and leave you without the property
Hampering your relationship with your letting agent.
Letting Agents like to have a firm date they can pass on to prospective tenants, if your purchase is delayed this delays everything down the line, you could risk loosing good tenants as the Letting Agent will soon find them another home.
The vendor taking an alternative offer.
If things are taking longer than expected, the Vendor rightly or wrongly could start looking at other offers being put in front of them, again this could result in you loosing the property.

There are a few easy steps to take to help you build a good relationship with your Solicitor: -

Use them as much as possible
Sit down with them at the start and outline what you are expecting from them and what they are expecting from you.
Get all the necessary forms from them in advance; this can be done before you even instruct them to work for you.
Try to get The Vendor to use a solicitor your solicitor deals with on a regular basis, this way each will know what the others requirements are and you may even be able to speak to both solicitors to move the process along (this does need the vendors permission to do this)
Use a recommended solicitor that knows the Buy to Let market, a good one Happy Homes works with and can strongly recommend is www.Fraserbrown.com