Category: Chamberlains Updates

Calculating Your South Devon Buy-to-Let Return

A two-minute read to help you quickly determine the return on a buy-to-let property in South Devon.

If you’re looking for a property to rent out, it’s important to understand the numbers involved. You may have inherited a property and are thinking of letting it. Use the information here to identify if that is a prudent thing to do or if the capital from selling the property could be better invested.

Find the numbers

The simplest way to work out your gross return on a rental is to estimate some numbers. You can have a browse on the property portals to get a vague sense of what properties in your budget sell for and let for. These figures change across the country so it’s important to start with your own research.

Quick and easy

Here’s a simple calculation to get you the basic overview. Let’s use an example of a £150,000 property that rents out for £500 a month.

500 x 12 (months in a year) = 6,000 p.a.

Divide 6,000 by the purchase price of £150,000 = 4%.

For some investors, a 4% gross yield would be sufficient. Others look for higher but it’s all rather area dependent. Here in South Devon, we normally suggest looking to achieve around 5%.

Deduct your deductions

We’ve worked out your gross figures. But it’s the net figures that are the ‘money in your pocket’ numbers. To work these out, you’ll need to employ a little more guesswork. Better still, ask a local property expert, like us, who deals with these things, day in, day out. Then you’ll be closer to an accurate estimate. The figures you need are:

• Solicitors’ costs (if you’re purchasing a property)
• Landlords’ insurance
• General property maintenance
• Agency fees
• End of tenancy cleaning costs

These can be off-set against your income for tax purposes.

Taxes, taxes, taxes

It’s reasonably straightforward to submit your tax returns yourself. They need to be done annually and submitted by the following January. It’s recommended though to use an accountant. They will be up to date with all the latest options open to you. Not only that, they can often help in other areas, like looking at your pension or investment options.

For rental opportunities in South Devon, get in touch with us on 01626 365055. Our lettings specialists can help you consider the market and the best options out there for you.

© Chamberlains 2021

 

National Children’s Day

In this two-minute read, we look at ways to promote children’s wellbeing.

The past year has been challenging for kids, so let’s make them feel special on National Children’s Day (NCD) on Sunday 16 May.

The lockdowns of the last year hit children particularly hard. While little ones often say they want to skip school, the reality is many find its structure reassuring. (Sadly, some also feel safer at school than they do at home.

Not only did lockdown mean children couldn’t be with their friends, for many, it also meant less exercise and more screen time – and their mental health suffered as a result.

Currently, about one in six children has a diagnosable mental health condition (source: Place2Be). But with the Covid-19 crisis easing in the UK, we can start to turn the situation around.

Here are eight ways you can mark NCD with your child.

Bake

Don’t feel pressured to whip up a fancy showstopper – simple cupcakes or flapjacks will go down just as well. After all, for most children, the best bit is dipping their fingers in the mixture.

Draw

There’s something incredibly calming about sitting with your child and drawing. It’s a great way for kids (of all ages) to express themselves.

Lego

You probably stepped on plenty of primary-coloured plastic bricks during lockdown, but when did you last make something with them? The internet is awash with brilliant Lego projects, from pencil holders and tissue boxes to volcanoes and monsters. Get creative with your child.

Talk

Children often struggle to put news headlines into perspective. For example, a survey of 1,000 children found that 47% were anxious about dying from Covid-19 even though the death rate among under-18s is extremely low (source: Action for Children Wales). Take time to chat to your child about their concerns. Don’t dismiss their fears but put them into context.

Exercise

One of the best ways to improve wellbeing is to get moving. Run, walk, skip or swim with your little one.

Let them teach you

Adults are always telling kids what to do. Reverse the roles and let your child teach you something, be it their favourite computer game or how to do a handstand. Watch their confidence grow when they get to play expert.

Make a playlist together

We’re guessing your taste in music is different to your child’s, but there must be some common ground. Discuss your favourite tunes and make a playlist. You’ll be able to listen to it again and again.

Plan a special meal

Celebrate NCD with a swanky home-cooked meal. Devise the menu with your child, and then make it memorable. Light a few candles, put some music on, and serve up a tasty feast (and don’t forget pudding)

From all of us here at Chamberlains, stay positive.

© Chamberlains 2021

 

 

 

Low-Fee Agents: Why South Devon Sellers Should Beware of Rock-Bottom Deals

In this two-minute read, we look at why low agent fees don’t equal top selling price.

Unless your name is Elon Musk, selling your home will probably be the biggest transaction you make in your lifetime. So, who will you entrust to get you the best deal?

Option 1: You go for the agent with the lowest fee. This agent is a doppelgänger for Del Boy, but you love the idea of saving yourself a few hundred quid in fees.

Option 2: You go for an agent who makes properties look and sound A-M-A-Z-I-N-G. The fee is a little higher, but they have a reputation for achieving sales that are above asking price.

Do the maths

The agent in Option 2 offers the best value because they will put the most money in your pocket.

When an agent cuts their fee, they’re cutting back on the time and money they invest in marketing a property.

They might sell your home, but they won’t get the best possible price for it.

Here are five ways to tell if an agent will offer you good value.

• Images

Top agents use quality photography to capture properties at their best. Grainy, shadowy photos taken on a smartphone are a turn-off for buyers.

• Property descriptions

Look at how agents market properties online. Do the descriptions create an aspirational picture? Or are you reading a list of measurements, plug sockets, and radiators? Good agents will also include a floorplan in listings.

• Bringing a property to market

If an agent brags that they can have your property on the market by tomorrow, run for the hills because they’re cutting corners. The best agents have a tried-and-tested launch strategy that takes more than 24 hours to implement – but adds thousands of pounds to a sale.

• Long tie-ins

An agent who is confident that they can sell your home doesn’t need to lock you into a lengthy tie-in (some agents push for 20 weeks’ exclusivity).

• Social media

Even if you’re not on Instagram or Facebook, many buyers are, so go with an agent with a strong social media presence. Look for engaging posts that cover more than properties for sale. Community content, mortgage updates, and sneak peeks are big winners.

We all love a bargain (that’s why Poundland exists), but with a low-fee agent, the person who lands the great deal is the buyer, not the seller.

If you’re thinking of putting your home on the market, get in touch with us here at Chamberlains. We’ll exhaust every possible avenue to secure the best price for your home.

© Chamberlains 2021

 

A three-minute read for landlords

Having a rental property can be a great way to earn some extra income. Like anything, there are a variety of things that can go wrong. We break down five of the most common ones. 

The wrong property

Being a landlord means running a business. You’re not buying a property for you to live in. Tenants often have very different expectations when looking for a rental property. Don’t turn down a great opportunity because you wouldn’t like to live in it.

The wrong tenant(s)

Choosing a good tenant is the second most important decision you’ll make as a landlord, (selecting an excellent letting agent being the first). Rushing into it without applying the correct referencing and selection process could put you at risk. You can end up out of pocket with unpaid rent, no deposit to cover damages, or even squatters.

The wrong timing

Unexpected maintenance is a normal part of owning property, as you may well know from your own home. Tenants often don’t notice little things that need immediate attention. This is because they’re not the homeowners. What can start out as a small leak can quickly turn into a massive problem if not attended to promptly.

The wrong tradespeople

If your rental is not in the area where you live, you might struggle to find decent tradespeople. One common problem, even when you’re local, is finding someone who is great at their trade and available at short notice. You can end up with shoddy work that you have to repair later. We can recommend trusted local traders. 

The wrong paperwork

In the UK, there are over 300 rules and regulations governing property rental. These can vary across the different countries. If you don’t have the right paperwork in place, if things go wrong and you end up in court, you will always lose. It doesn’t matter the ‘rights and wrongs’ of the situation at that point. If you don’t have every box ticked, the judge will always award against you.

The solutions

Treat your rental property like a business. Don’t buy with your heart. Find great tenants who understand and accept the correct referencing procedure. Don’t let to a friend’s “cousin who really, really needs the help right now, pretty, pretty please!”. Carry out regular property inspections, especially at the start of a new tenancy. Don’t fall into the trap of doing it all yourself. The government regularly changes the paperwork requirements. The advice online is often out of date. Don’t risk it. Use a lettings agency with the three Es – Experience, enthusiasm and expertise.

We’ve been helping landlords in South Devon for years. We know the pitfalls and how to help you avoid them. With regular training and professional bodies, we stay on top of the inspections and paperwork so you don’t have to.

© Chamberlains 2021

In this three-minute read, we celebrate those working in the noblest of professions – nursing.

As it’s International Nurses Day next week, we thought we’d share this brilliant quote with you: “Save one life, and you’re a hero. Save 100 lives, and you’re a nurse.”

International Nurses Day is on 12 May (the birthday of Florence Nightingale, the founder of modern nursing). It’s a chance to thank a profession that has given so much during the pandemic.

Nurses have served on the Covid-19 frontline for more than a year, delivering high-quality professional care along with unstinting compassion and kindness.

This was most apparent at the height of the UK crisis when hospitals banned visitors to stop the spread of the virus. It fell to nurses to provide soothing words and comfort to the critically ill.

And let’s not forget the nurses who work in other parts of the health system such as care homes, hospices, cancer units, and paediatric wards. They truly bear witness to birth and death and the journey of life in between.

To mark #NursesDay, here are four inspiring nursing stories:

– When East Londoner Laszlo Kelemen isn’t working as an NHS nurse, he volunteers as a Red Cross emergency responder. Laszlo has attended car crashes, house fires, and major incidents including the 2017 London Bridge attack and the Grenfell Tower blaze.

– Vasu Lingappa is a senior nurse with University Hospitals Coventry and Warwickshire NHS Trust. Earlier this year, Vasu won praise from the Duchess of Cambridge for his compassionate care throughout the Covid-19 crisis. During one patient’s final moments, Vasu held his hand while playing music by the man’s favourite band, Bon Jovi.

– Alma Ainslie-Davies is a nurse with the end-of-life charity Marie Curie in the Grampian region of Scotland. Alma spent 24 years in the Army but changed careers after witnessing Marie Curie nurses care for her late mother. Alma now works to ensure the terminally ill enjoy respect and dignity in their final days.

– Viveki Kapoor works in a Delhi hospital. She has nursed for 22 years but has never seen anything like the Covid-19 crisis currently engulfing India. She told the BBC: “I’m so tired at the end of the day that I can fall sleep anywhere. I don’t even need a bed anymore.”

You can show your support for nurses by sharing #NursesDay on social media on Wednesday.

All of us here at Chamberlains, would like to thank the nursing community for their dedication and service.

© Chamberlains 2021

 

In this two-minute read, we look at ways sellers can identify genuine buyers.

With demand currently outstripping supply in the housing market, sellers are in the driver’s seat, but there is still one hazard that could derail a sale: the flaky buyer.

In a hot market, it’s not uncommon for panicky buyers to make an impulsive offer or go beyond their financial limits.

A buyer might do this because they fear that prices are rising and the market is getting away from them. Or perhaps they’ve been outbid in the past and don’t want to lose out again.

Whatever the motivation, the result is the same: the buyer isn’t committed and drops out weeks or months into the sales process.

Not only is it frustrating for the seller but it could also cost them financially if they’re part of a chain which then collapses because the parties involved grow impatient.

Here are some tips to help you identify genuine buyers.

–         Arrange a second viewing. If the buyer makes an offer after the first viewing, your agent should arrange a second visit to see if they are still as keen as mustard. The buyer should be quizzed about their plans for the property to see if they’ve thought through the purchase.

–         Do the admin. Ensure your agent gets the buyer to fill in an offer form that includes details about their mortgage provider and solicitor. It’s preferable to go with a buyer who already has their ducks in a row.

–         What’s the story? Chat to the buyer about why they are moving. If they’re expecting a baby and have family in the same street, it’s a fair bet that they’re the real deal. If they know little about the area or their story keeps changing, question if they are committed to the sale.

–         Ensure the lines of communication are open. Ideally, your buyer will keep you informed of their progress on the survey, searches, and chasing solicitors. Be wary if things go quiet quickly.

–         Work with an experienced agent. Even though it’s a buyer’s market, a good agent can streamline the process for you. They’ll be good at spotting the genuine buyers from the chancers.

For more advice about selling your home, contact us here at Chamberlains

© Chamberlains 2021

 

In this three-minute read, we look at how landlords can avoid getting a bad insurance deal.

If you’re a landlord looking to take out insurance or renew a current policy, there are a few things you should know.

The insurance market is “hardening”, or in other words, insurers are tightening their belts.

The rising costs of claims due to extreme weather events such as last year’s Storm Dennis and low interest rates (meaning insurance firms make less on their investments) have hit the industry hard.

As a result, insurers are upping the cost of premiums and employing other – less obvious – tactics to increase their bottom line.

But first, a quick reminder

Landlords need specific insurance; a standard home and contents policy will not suffice. Landlord insurance is usually a condition of a buy-to-let mortgage, but even if you’re debt-free, it’s worth getting. (You hope the worst won’t happen, but if it does, you’ll be covered.)

Standard policies include buildings and liability cover, although you can also opt to include things like legal costs, accidental damage, or loss of rent.

Insurance tips for South Devon landlords 

Follow this checklist to get the best deal

– If you already have a policy, read it thoroughly before you start your research. It might not be the most exciting few hours of your life, but your diligence could save you time and money in the long run.

– Note in your diary when your policy is due to expire and leave yourself enough time to shop around. You won’t get the best deal if you’re in a last-minute panic.

– Look at what the premium covers. Is there a gaping omission that could leave you exposed? If it’s an existing policy, has your coverage been reduced?

– Check the standard excess (excess rates have been creeping up). The policy premium might be appealingly low, but if the excess is high, you could wind up paying more in the long run.

– Be aware that some types of claims have a higher excess. For example, escape of water (which covers leaks and burst pipes) has a higher excess as it’s a more common occurrence.

– Check the rules around vacancy as some policies become void if the property is empty. As there could be a rise in tenant turnover when furlough ends later this year, ensure your policy gives you a bit of leeway on vacancy periods.

– Have your paperwork to hand when talking to insurers. They’ll want to know (and see proof of) the age of the property, state of repair, and claims history.

– Some policies only cover certain types of tenants – for example, professionals – who are viewed as low risk. It may pay to include other tenant groups, such as students, in your policy to give you more flexibility.

For more advice about protecting your rental property, get in touch with us here at Chamberlains.

©Chamberlains 2021

 

 

In this three-minute read, we look at a study that found some landlords were putting themselves and their investment at risk by cutting corners on checks and maintenance.

Landlords are leaving themselves exposed to the risk of criminal and civil prosecution by failing to conduct critical safety checks and taking a back seat on maintenance, a survey of renters has revealed.

The study by property management platform Plentific found that a surprisingly high proportion of landlords aren’t meeting their legal responsibilities regarding gas safety and that in some cases, tenants are handling maintenance and repairs.

The survey of 1,000 tenants found that:

• 46% of private tenants don’t believe their gas appliances have been checked in the last year.
• 52% of private tenants don’t have a gas safety certificate.
• 56% of private tenants don’t have a carbon monoxide alarm.

What the law says

Annual gas safety checks must be carried out at all rental properties by a qualified engineer and all tenants should receive a copy of the subsequent safety report.

Landlords who fail to meet these obligations could face prosecution – and be fined or imprisoned.

Furthermore, landlords could wind up embroiled in a civil suit if a tenant is injured or killed in a fire, explosion or carbon monoxide poisoning at the property.

Other maintenance issues

The survey also looked at how landlords respond to maintenance concerns raised by tenants.

About 40% of private renters said requested works were completed within three days, although overall, the average was ten days.

Issues raised included damage to the garden (26%), property damage (24%), ­maintenance (21%), and electrical problems (20%).

Worryingly, 37% of renters said they had organised repair works themselves (20% with permission from the landlord, and 16% without).

We would advise landlords in South Devon to oversee maintenance and repairs (or to entrust a property expert like a letting agent to handle it) to ensure that work is done to a safe standard for a fair price.

Faulty work could result in further problems down the line or damage to your property that proves costly to rectify.

Managing your responsibilities

Being a landlord comes with a host of legal responsibilities. If staying on top of all the paperwork and red tape feels overwhelming then you could benefit from working with a reputable letting agent like us. We can shoulder the burden for you and will advise you expertly and honestly.

Let us take the stress out of managing the property and use our experience to make your life a whole lot easier.

Please get in touch with us here at Chamberlains if you have any questions about property management.

© Chamberlains 2021

 

 

 

In this two-minute read, we show you how to make your South Devon home a healthier place for the planet.

Yesterday was World Earth Day. People across the globe were encouraged to be more mindful about the impact we all have on the planet.

But doing our bit for Mother Earth is a process and not an event as this article explains.

In our own homes in South Devon, we can continue to do things to help the Earth.  Here are some ideas.

Go local

The supermarkets are undeniably convenient. If you can though, frequent farmers’ markets. You’ll be reducing air miles, which is good for the environment and your health. It also means you’re not supporting the unethical, polluting mega greenhouses in places like the south of Spain. You can more often reuse egg boxes or berry baskets when revisiting your favourite stalls. There are also likely to be fewer plastic stickers on the produce.

Buy in bulk

Buying in bulk reduces the amount of plastic waste. You’re not buying lots of little ones just to throw them away. You can also often reuse the same containers too. This is great for cleaning products for the house or for humans. It’s also a great way to buy food. You’ll be doing good for the planet and your wallet too. Loo roll bought in bulk from hotel suppliers will reduce the amount of plastic wrapping around the packets. (You can also buy paper-wrapped toilet paper.)

In the garden

Prioritise native plants. Replace your lawn with short native grasses or, even better, plant vegetables. Use kitchen waste to create compost. Invest in a worm composter, or an electric one if you’re in a flat. You can even compost dog poop! (This is a special process, don’t just throw it in with your kitchen waste.) Buy seeds in bulk. Take any plastic containers back to the garden centre. Capture rainwater whenever you can to reuse later.

With the children

Refuse free pens and instead get refillable ones. Buy paperclips in bulk or get a staple-free stapler. Join your local library to borrow books and magazines. Teach children to draw or cut near the sides of pieces of paper. This offers more chances for reuse and instils the thoughtful use of resources from a young age. Always recycle used paper, after both sides have been filled. Make a bug hotel for the garden to encourage pollinators and explore the interconnectedness of the planet.

What eco-friendly ideas do you use at home? We’d love to hear your suggestions.

© Chamberlains 2021

In this two-minute read, we look at useful information which you might want to share with your agent to satisfy inquisitive buyers.

You can often tell whether a viewer is keen on a property from the questions they ask. And in our experience, the more specific the question, the warmer the prospect. When it comes to preparing for a sale, the more information that you can share with your agent, the better. Here are five typical questions to get you thinking.

• What are the neighbours like?

Your viewer is envisioning living in your property. Help them do this by letting your agent know the demographic of your neighbourhood. A good agent will assess the viewer’s preference and highlight those neighbours accordingly; families, elderly people, professionals, students, etc. Add extra information if you can: Are they friendly, quiet, helpful?

• Where are the closest bus stops?

Go a step further and provide information on the bus routes and the frequency of the service. If it’s only a ten-minute ride into town, or there’s a direct service to the leisure centre, let your agent know.

• Which way does the garden face?

For those with outside space, most people want to know which way the garden faces. If you’re unsure, there’s a helpful app called Lumos, which will point you in the right direction (excuse the pun!). Garden furniture purposely positioned in sunny spots will show potential buyers where to go for a bit of R&R.

• Where do the kids next door go to school?

It’s good if you can let your agent know which school catchment your property sits in. It’s great if you can tell them where the local kids go. Parents’ school preferences vary – with some prioritising the same school as local friends over Ofsted reports.

• Which takeaways deliver here?

If a buyer is wedded to their weekly teatime treat, this will be essential information. If you have a recommendation, let your agent know – you might tempt prospective buyers with new or unique culinary delights in your local neighbourhood.

If you’re thinking about a property move and want to know more about what information to start collating (or if you have a recommendation for a local takeaway), feel free to get in touch.

© Chamberlains 2021