Right ladies and gents, we are back in Dalkeith street, Birchills, Walsall again. Why, you ask? Well, I’m going to tell you. Firstly, and you may find this hard to believe, but Dalkeith street is blowing up right now, the level of interest from renters is insane. You may remember I mentioned in my last BTL deal post that I helped one of my clients rent out a two bed terraced just like this one recently! The second reason is as follows…I’ve repeated myself over and over again about renters’ expectations and what landlords actually provide. If you are serious about your property empire and want to maximise your portfolio as much as possible, what I am about to show you is the standard you should set yourself on every property you rent out. This is a bog standard two bed terraced house in the heart of Walsall, nothing at all special. However, by just investing a relatively small amount of money to showcase your let, this is what you can and should be achieving. I’m going to let the photos speak for themselves.
A belated Happy New Year to all my Blog reading friends!! Trust the holiday season has treated you all well. Now that you are rested, relaxed and rejuvenated I’m sure you have gotten into the full swing of things with vigour and enthusiasm. We’re already passed the middle of January 2018 and finally I feel like the dust has settled allowing me the opportunity to catch my breath to reflect on the past year.
Wasn’t 2017 eventful?! Last year was the greenest year in the UK. We broke all previous records by June 2017 when our use of wind, nuclear and solar power created more UK power than gas and coal combined. From England women winning the World Cup in July to an incredible breakthrough by scientists at University College London who have developed a drug that they hope could stop Huntington’s disease. To top the end of the year there was the Royal love story with the announcement of romance, a wedding between Prince Harry and Megan Markle and something close to the hearts of every buy to let landlord and homeowner in Walsall… the changes in the local property market.
So, let’s look at the headlines for the Walsall property market in 2017…
A modern two bedroom terraced house, Poppy Drive, Walsall, WS5 on the very popular Tamebridge estate. The full property details can be found here.
The marketed value is for offers over £125k. Personally, I don’t see this property selling at that price. I have written previous articles on similar properties that the asking price was around £110k, here are just three to have a look at:
Some properties have sold at around the asking price here, but realistically the selling price should be somewhere between £110k – £120k depending on the quality of the spec and that’s where I want to focus on next.
For the last 10 years, every private rental property must have an Energy Performance Certificate (EPC) rating before being marketed. The property is given an energy rating, very similar to those on washing machines and fridges with the rainbow coloured graph, of between A to G (A being the most efficient and G the worst).
New legislation comes in to force next spring (2018) for English and Welsh private landlords making it illegal to let a property that does not meet a certain energy rating. After the 1st of April next year, any new tenant moving into a private rented property or an existing tenant renewing their tenancy must have property with an energy performance rating of E or above on the property’s EPC and the new law will apply for all prevailing tenancies in the spring of 2020. After April 2018, if a landlord lets a property in the ‘F’ and ‘G’ ratings (i.e. those properties with the worst energy ratings) Trading Standards could fine Walsall landlords up to £4,000.
If you follow the Walsall Property Market News like I do (not just the residential) then, you will be well versed with past, present and planned future developments. Amongst the proposed £90m transformation of the town centre recently it has been announced that more than 100 jobs will be created by developing a piece of derelict land back into commercial use with a further £6.9m investment.
In recent years we have had the new 24hr Tesco, the Primark development (which was extremely busy on Saturday), The Quarter has just been finished with Poundland and B&M taking up occupation anytime now and there are plans to revamp The Saddlers Centre! So, with all this happening around the commercial side of property “what about residential” I hear you ask…?
Honestly I could write a book about this. Time and time again through my agency career I would have landlords calling me, desperate for advice after they’ve placed a “lovely” tenant in their property using a free (or low cost) DIY advertising website. The tenant presented themselves as honest, open, and above all very capable of paying the rent.
But the truth is a different matter. They got into the property by deception, and ended up costing these landlords thousands of pounds in damages, unpaid rent, and above all…the stress. These landlords had to cover the mortgage whilst funding the legal battle. One made very difficult because they weren’t aware of all the legislation surrounding lettings. This could prejudice their position in court. Didn’t serve the Prescribed Information? Didn’t register the deposit within 30 days? That means the tenant could actually sue you for 3 times the deposit amount! And there’s more…
It has been said that some 30% of the PRS is made up of accidental landlords (Source: Landlordnews.co.uk). Here lies the problem. As an accidental, or amateur (not a bad thing!) landlord, it is unlikely that they invest the time to make themselves aware of all the legislation surrounding lettings. There is a lot, but as the saying goes “you don’t know what you don’t know,” so most are blissfully unaware – until it goes wrong, and they can do with disastrous consequences!
A modern two bedroom terraced house, Pimpernel Drive, Tamebridge, Walsall, WS5. The asking price is £110k with Purple Bricks (01926 267659). The full property details can be found here.
Located on the very popular and desirable Tamebridge estate and therefore has the potential for long term letting.
There are some changes to be made in terms of the decor and the rear garden will need to be attended to. It has a modern kitchen and bathroom, gas central heating, double glazing and off-road parking.
This top notch property will attract a minimum pcm rental of £525.00 meaning a rental yield of 5.73% based on the current sale price.
If you would like an instant online appraisal as to the rental value of your property, please click here.
If you are thinking of getting into the property rental market and don’t know where to start, speak to us for impartial advice and guidance to get the best return on your investment.
For more information about other potential investment properties that we could introduce you to, or to ask about our thoughts on your own investment choices, call us now on 01922 311016, you can always email me on firstname.lastname@example.org.
Don’t forget to visit the links below to view back dated deals and Walsall Property News