How to determine Market Value (MV)

Market Value

Your aim to negotiate a substantial discount on a property can only be achieved by understanding and establishing the market value. There are several ways to work out the market value of a property.

Firstly, collect comparables in the area by researching property magazines, newspapers, websites
and similar properties on sale.
This process once collated, can be used to find the market value of a property.

Secondly, ask approximately 3 estate agents for their view on the market value of properties in specific areas. Once this information has been passed on to you, work out the average price.
This process can be employed for letting agents to find the rental value of a property.
You can also obtain records from the Land Registry of properties sold within the area and over specific time periods. However, there will be a fee for this information but it will give you a realistic picture of how much the properties are being sold for.

Homebuyer’s Survey
A Homebuyer’s Survey and Valuation (HSV) is a report accepted by the Royal Institution of Chartered Surveyors (RICS) as a credible way to determine the valuation of a property. This type of report covers many major structural defects that may be discovered in the valuation. The report also covers defects in the roof, loft space, flashing, chimneys woodworm, damp and dry rot plus other lesser known defects.
The HSV does not cover 100% of the possible problems that can occur within a property, however, the report is sufficient and thorough enough for the lenders to rely on for mortgage purposes.

Buildings Survey
A Buildings Survey is a very comprehensive way to establish the defects and valuation of a property. It generally covers a more detailed inspection and results in a thorough understanding of the state of a particular property. This kind of survey is better suited to properties with structural problems or a property that may have been empty for a long period of time.

What Does a Good Property Management Company Provide?

Property Management Company

A good property management company will streamline the process of renting your investment property and managing tenants. What differentiates the good from the bad comes down to some universal areas. This article outlines those necessary traits.

1. Responsive Service.

If a manager doesn't handle all incoming leads quickly, you can believe that they'll move on to the next place. In a market where the competition for renters is stiff, you need to jump on every opportunity. Also needless to say, they should be located within a reasonable distance from the property.

2. Ability to deal with all types of tenants.

Being a landlord sometimes requires less-than comfortable interactions with tenants. If you either can't bear with the idea of confrontation, this isn't the role for you. At the same time, understanding and compassion is a key trait. If you lose your temper easily or tend to act out of emotion, hire someone else. In the event that a tenant turns out to be a deadbeat, they handle the eviction process and legal proceedings for all damages.

3. Experience in Marketing and Applicant Screening (Judging the good from the bad).

One bad tenant can turn your profitable venture into a money pit. You will benefit from an established procedure that a property manager uses. Appropriate market analysis, tenant screening, statement accounting will ensure that your property is well-managed. In most states, a property manager must be a licensed real estate agent, which means they understand the laws and duties that are required.

4. Guru of Home Maintenance and Repair.

While much of the time will consist of quite enjoyment on behalf of the tenant, maintenance and repairs will occasionally be necessary. Whether it's unit preparation between tenants or a plumbing issue, the Property manager will supervise all work done by preferred vendors.

5. Value for Service. No Markups.

The industry standard is 8-10% of collected rent and 50% of the first months rent for tenant placement. While this will lessen your overall return, it ensures that you're property will be well-managed. There should be no markup on maintenance or repair, and any funds resulting from late-fees or penalties should be yours in full.

A Property Management Company is essentially a partner in your rental business. A company that exhibits these traits will become an essential entity and ensure you the best chance of success. Don't be afraid to contact multiple companies to find the one that best delivers on these crucial areas.

How to Rent My Property

Property for Rent

One of the most common questions landlords often ask of us is "I can't find tenants - please can you help me rent my property?" or "what do we need to do to rent my property quickly?".

Often we are shown the property of landlords who are struggling to find tenants, yet on many occasions we can tell within minutes of walking through the door, why they have had little interest. Usually with just a little bit of work, these properties can be made more rentable, without having to commit a large budget.

Some tenant find principles

Most tenants will view five or six properties before choosing one to rent; and will often make up their mind based on a single viewing. After considering the type of tenant you want to attract, you need to help them choose your property over the others.

To successfully rent my property it is essential you know your market. The location and type of property you have to rent will in most cases dictate the type of tenant you should try and attract. Which ever category of tenant you are after, it makes commercial sense to attract the best tenants you can. If you want professionals in your property then you need make your property appeal to the expectations of that type of tenant. If you are after students, LHA or house share; then your property needs to attract tenants who look for something different.

So if "how do I rent my property" is a question on your mind, here are some key pointers to help you rent your property quickly.

Rent My Property - Our Top Tips

1) First impressions: The tenants' first view of your property is made as they walk up road or up the drive. How does your property compare with others on the street? How does it look through the windows (often the first things prospective tenants see are the backs of curtains and blinds)? Outside; a tidy garden, clear path, freshly cut lawn, clean walls and paint work, have greater tenant appeal.

2) Clear the clutter: If your current tenants are messy, consider waiting until they have left until you show prospective tenants round. New tenants often cannot see past the clutter and therefore struggle to see themselves living there. If previous tenants have gone and left clutter inside or out - get rid of it.

3) Re-fresh and fix: The decoration and presentation of your property will affect the speed of letting and the rent you will achieve. Pay special attention to the paint on the walls (plain paint is often best); the carpets and the floors. Clean and repaint where necessary; fixing any broken door or drawer handles and taps. You are setting a standard so you should refresh according to how you would like your property to be looked after (and grubby properties attract grubby tenants).

4) Focus on the kitchen: Many tenants look at the kitchen more than any other room in the property. If you are to spend money on any room in the house, make this the one you look at first. If your kitchen looks "tired" then a repaint and new cupboard handles can make a major difference for a minimal cost. Any loose doors need to be fixed or replaced. Appliances do not have to be new but they should be clean - especially ovens and hobs.

5) Do not worry about "white goods": Your property should supply a cooker as a minimum; other appliances are beneficial but not essential. If there are not any "white goods" in your property then you may be best waiting until tenants view the property before deciding whether to supply them (you have to maintain them if you do). Some tenants already have their own. You can always state to viewers that you will supply if required.

6) The bathroom: The second most important room in the house is the bathroom. A "tired" bathroom will put many tenants off. It does not need to be new but it should be clean and clear of clutter. All units and bath sides should be firmly fixed; taps and showers should work smoothly. Showers are now a modern day necessity so if your property does not have one, consider installing an electric shower over the bath as your property will rent quicker if you have one.

7) Carpets and floors: If your property has old or worn carpets, with heavy patterns or dark colours; consider replacing them with more modern, plain carpets. A good choice of colour can brighten up a room and make it feel more spacious. An important room to look at is the living room. If your budget is restricted, this is the room to look at first. With the right choice you will recover the cost with the extra rent you will likely achieve.

8) Windows and views: You can never let too much light shine into your property. Make sure all windows are clean and any curtains are open when tenants are shown round; and remove any old net curtains. You should supply curtain rails but curtains are not essential as tenants often prefer to provide their own to personalise the property. If your property has good natural light then use it and if at all possible conduct viewings during daylight hours.

9) Lamps and shades: It is possible to improve the appearance of a room with new lights and/or shades. In many properties for rent these are old or have never been cleaned, contributing to a grubby feel. New shades can add that finishing touch. Subtle is best as anything unusual runs the risk of not appealing to the tenants taste.

10) Furniture: There is little difference in rent values for furnished and unfurnished properties. Smaller furnished properties can appeal to younger tenants; the recently separated; or students. Larger properties generally attract families who tend to bring more furniture with them. If you are willing to supply some furniture, don't rush out and buy it in advance. Prospective tenants may not have the same taste as you and involving the tenant in the buying decision can be a plus point for your property over others.

11) The final clean: The last yet most important action to rent my property is the thorough clean. This means doing more than just going round your property with a vacuum cleaner. A full professional clean can transform your property from average to desirable. For less than a week's rent, it will make your property stand out and attract a better quality tenant.

Rent My Property - Final Thoughts

All landlords hate to have an empty property but rushing to rent my property without investing time to refresh and prepare it, can mean your property is empty for longer. It is better to adopt the principle that you are competing with other landlords and you want to attract the best tenants you can in your target market.

When competing to rent my property, you are usually better to refresh your property as above - even if it takes a week or two to complete and comes with a small cost. It will help you rent your property to a better tenant, who is prepared to pay more rent. Your property may ultimately rent faster.