One of London’s largest housing associations is to undertake a comprehensive safety review across a six-block residential development following expert advice that the construction of the buildings may be putting around 1,000 residents at risk. Notting Hill Genesis (NHG) asked all residents living in the Paragon Estate to leave immediately
British Olympian and World Champion sprinter Richard Kilty has officially launched a new housing development in his hometown – the ‘Teesside Tornado’ unveiled The Sycamores in Stockton-on-Tees an £18.7m Keepmoat Homes development that forms part of the Council’s ambitious town centre renewal plans. Being built on the site of the
How housebuilders can prepare for the First Homes scheme In February 2020, Secretary of State for Housing, Communities and Local Government, Robert Jenrick, announced the Government’s First Homes scheme. The scheme will see thousands of new houses being built across the UK, aimed to help more first-time buyers onto the
Mainstay Residential has announced a fresh appointment in the north west – expanding its presence into Manchester’s evolving Piccadilly neighbourhood. Mainstay will provide services to the area’s Paradise Wharf development, a trio of schemes – Junction Works, Whittles Croft and Jutland House – perched along the Ashton Canal and close
The Manchester-based developer and asset manager has created three businesses – Unify, Unify Energy, and CubicWorks – to overhaul the way it delivers facilities management, fit-out and utilities services to clients. Unify will provide a range of integrated facilities management solutions, including mechanical and electrical repairs and maintenance, energy, cleaning
Housebuilders have defended proposed planning changes allowing up to 40 to 50 homes to be built before an ‘affordable homes’ quota kicks in. Last week the Local Government Association criticised the government for the proposals, which it claimed would have resulted in 30,000 fewer homes being built over the last
V7 Asset Management and BauMont Real Estate Capital have appointed LSH as letting and managing agents on their new project at Thames Valley Park, Reading. BauMont acquired buildings Four and Five from Microsoft in March 2020 and retained renowned redevelopment and asset management company V7 for their exciting new project.
Angel Central Shopping Centre has appointed Lambert Smith Hampton’s (LSH) Belfast-based property and asset management team as its managing agent to help out with the site’s £16 million redevelopment. Due to be completed in November, the £16 million shopping centre masterplan by CBRE Global Investors will create further retail, additional leisure and
For property managers working in the UK rental market, times have changed dramatically since the pandemic hit hard. But, the good news is that many of the emerging trends are proving beneficial to the market. Demand for rental properties up Strong demand for rental properties has continued with economic uncertainty
Whether you’re a landlord or you simply want to make money with real estate, understanding how to manage property properly is essential to your success. You don’t just need to know how to fix things when they break. Any first time landlord/property manager needs to take on many jobs when
One of London’s largest housing associations is to undertake a comprehensive safety review across a six-block residential development following expert advice that the construction of the buildings may be putting around 1,000 residents at risk. Notting Hill Genesis (NHG) asked all residents living in the Paragon Estate to leave immediately in order to protect their health and safety while further investigative work is undertaken. NHG said that it would ensure that all residents living in the Paragon Estate were able to access safe alternative accommodation this week. It will also work with residents to find a longer-term solution to their housing needs where necessary. The further investigations will establish the full extent of the structural and fire safety issues that have been uncovered at the development and identify next steps. Earlier building performance issues, together with fire safety issues related to the cladding and the subsequent new government guidance since the fire at Grenfell Tower, triggered a series of safety checks at Paragon, undertaken by technical consultants, which have each revealed further problems with this development. Notting Hill Genesis said the action it has taken to address these risks as they have arisen, include establishing waking watches and temporary alarms, and introducing simultaneous evacuation procedures, but the latest advice has prompted the group to act in order to protect its residents. Kate Davies, group chief executive of Notting Hill Genesis, said: “First, I want to say how sorry we are to residents that we have had to take this action and disrupt their lives. But, as a not-for-profit housing association, our priority is to provide safe, affordable housing. We always ensure the wellbeing of our residents, so while we are incredibly disappointed to have to make this decision, we believe that we have no choice but to ask people to leave their homes on the Paragon estate. “I understand that Paragon residents may feel angry or alarmed by this news, as they have every right to be. This is a very distressing time and we are genuinely sorry for the huge amount of disruption and uncertainty that this situation will cause. “This is a complex situation and we don’t yet have all the answers. We are working to uncover the full extent of the issues at Paragon so that we can provide residents with clarity about timescales, next steps and options as quickly as possible. “We are doing all we can to support people who live in Paragon through this difficult situation. We have identified safe accommodation for everyone to move into this week and are providing financial as well as mental health and wellbeing support to help them do that. We are also giving everyone a dedicated caseworker to discuss their specific needs both now and for the longer-term where necessary.” Paragon is a development of six blocks containing a total of 1,059 homes in Brentford, Hounslow. It was developed by Berkeley First, part of The Berkeley Group plc. The estate was owned initially by the former Presentation Housing Association, which became part of Notting Hill Housing – now Notting Hill Genesis – in 2009. Notting Hill Housing group, which became part of Notting Hill Genesis group in 2018, acquired Paragon in 2009. The six blocks consist of the following: Block A – a five-storey building consisting of 41 units of intermediate market rent. Block B – three interconnected buildings of four, five and nine storeys with 107 shared ownership leasehold units and 72 intermediate rent. Blocks C, D, E and F – 17, 12, 12 and five-storeys respectively, hold a combined 839 units of student accommodation which is occupied by students nominated by the University of West London. There is no suggestion that any other buildings in the Notting Hill Genesis portfolio will require a similar approach to the one being taken at Paragon. Buildings are being investigated and prioritised based on factors such as height, external materials used and evacuation procedure, and residents informed if further investigation or remedial work is required. Where necessary, and in consultation with fire safety assessors, interim safety measures such as simultaneous evacuation procedures, supported by 24-hour patrols and temporary alarms are in place.
British Olympian and World Champion sprinter Richard Kilty has officially launched a new housing development in his hometown – the ‘Teesside Tornado’ unveiled The Sycamores in Stockton-on-Tees an £18.7m Keepmoat Homes development that forms part of the Council’s ambitious town centre renewal plans. Being built on the site of the recently demolished Victoria Estate, The Sycamores scheme, located directly behind Splash Sport and Leisure Centre and near to the new Hampton by Hilton Hotel, is an integral part of the Council’s ambitious town centre regeneration plan. Incorporating Healthy New Town principles, the scheme is designed around over 200 mature trees on the site to create a high-quality scheme in an attractive landscaped environment. The Teesside Tornado scheme will form the North East corner of the new transformed town centre and complements the refurbishment of the Globe Theatre and other enhancements at the northern end of the town centre. Work on the £18.7m, 143-home scheme started earlier this year and the project is a joint collaboration between top ten national housebuilder Keepmoat Homes and Stockton-on-Tees Borough Council. Richard, who as a child lived on the demolished Victoria Estate was invited to officially launch the development and unveil the new show village which provides a glimpse of what the town centre living will be like in the transformed area. Ian Prescott, North East Land and Partnerships Director at Keepmoat Homes, said: “We’re delighted that Richard has joined us to formally launch The Sycamores and witness the changes that are taking place in his hometown and on the site where he once lived – he’s a fantastic advocate for the area and a local sporting icon. “Keepmoat has a long-standing partnership with Stockton-on-Tees Borough Council which has delivered the regeneration of the Mandale Estate in Thornaby and the Hardwick and Swainby Road estates in Stockton. The Sycamores is potentially the most ambitious and exciting project taken on by the partnership to date.” Councillor Nigel Cooke, Stockton-on-Tees Borough Council’s Cabinet Member for Regeneration and Housing, added: “We are delighted that The Sycamores is progressing well and it’s an honour to have Richard launch a new development here in his hometown. “The site is the latest piece of the jigsaw in our town centres fightback and offers a variety of affordable, high quality housing just a stone’s throw away from local restaurants, leisure facilities, shops and transport links that will no doubt appeal to a range of residents. “We’ve said all along that we have to revitalise our town centres and high streets in different ways – encouraging people to live in or nearby them is key to our vision for the future.”
How housebuilders can prepare for the First Homes scheme In February 2020, Secretary of State for Housing, Communities and Local Government, Robert Jenrick, announced the Government’s First Homes scheme. The scheme will see thousands of new houses being built across the UK, aimed to help more first-time buyers onto the property ladder. When building for first-time homeowners, housebuilders need to consider their specific needs. Here, Nick Cowley, managing director of windows and doors manufacturer Euramax, explores how housebuilders should prepare for the First Homes scheme. The First Homes scheme aims to make home ownership more attainable by providing homes at a discounted price of at least 30 per cent. In the UK, house prices can be as much as 15 times the median salary, excluding many from purchasing. By selling houses for less than the open market price, the Government hopes to help people buy homes in their local communities. Even with a discounted housing price, first-time buyers are likely to be on a tight budget and will favour ready-to-move-in homes that require minimal modification. Therefore, it is important that housebuilders construct new builds to be as practical as possible, so that first-time buyers can move in comfortably and enjoy their homes right away. Safety first Home security is a top priority for any homeowner. With around 350,000 burglaries occurring across the UK every year, a comprehensive home security system is a sensible investment. However, security measures can be a costly upgrade that first homeowners could probably do without. Housebuilders should choose windows and doors with integrated safety mechanisms that will give new homeowners peace of mind that their property is secure. Around 74 per cent of burglars in the UK enter through the front door, and housebuilders should be mindful of this when designing their new builds. Security technology is rapidly developing, and housebuilders may want to integrate SMART window and door locks into high-spec new homes. SMART locks can be combined with sensors that alert homeowners if a window or door has been left open. This can then be managed remotely via a smartphone, giving homeowners complete control of the access to their home, no matter where they are. Besides thinking about SMART technology, homeowners must build with structural security in mind. Composite doors offer the highest level of protection. They are made of sturdy structural frames and glass-reinforced plastic, which makes them ideal for protection against burglars. Taking a two-fold approach to new build security will give first-time buyers confidence in their property right from the start without the need for costly enhancements. Energy efficiency Another outgoing that first-time buyers will be keen to keep low is running costs. Although new homes are already roughly 50 per cent cheaper to run than an equivalent Victorian house, improving the energy efficiency of a new build should be prioritised by housebuilders. In a 2019 report, the Committee on Climate Change recommended that all new homes should use no more than 15 to 20 kilowatt hours of energy per square metre per year (kWh/m2/year) to keep warm. However, Government statistics suggest that the actual figure is nearer 60 kWh/m2/year. Using up to four times the amount of energy recommended comes at an extra cost to homeowners, so housebuilders should select materials and building components that contribute to lowering energy expenditures. Up to 30 per cent of a home’s heat is lost through its windows, so choosing the right window style is crucial to improving energy efficiency. Windows need to be as non-conductive as possible, to keep the cold out and the heat in. Euramax offers double-glazed PVCu windows that are rated A for energy efficiency. Both the air between the windowpanes and in the PVCu frames are good insulators of heat, which helps to improve the consistency of a home’s temperature and prevent heat loss. Selecting energy-efficient windows will not only reduce costs for new homeowners, but it will also reduce national domestic energy consumption. Domestic energy consumption accounts for around 28 per cent of the UK’s total energy use. If housebuilders ensure that new builds are as energy efficient as possible, the industry will support the UK in meeting its target of zero net greenhouse gas emissions by 2050. Modern design According to a survey conducted by Barratt Homes, only half of first-time buyers intend on staying in their first home for over a year, yet in reality, 71 per cent stay for four or more years. Housebuilders should build with this in mind, by choosing components that are designed to retain their appearance, reducing the need for frequent replacements. The average first-time buyer in the UK is 34 years old, meaning many will be hitting other life milestones at the same time as home ownership. Whether it’s marriage, children or a new pet, a first-time buyer needs a house that can adapt to suit any change in lifestyle. PVCu windows and doors are a practical option thanks to their strength and durability. However, they are often considered an unstylish solution because of the misconception that they cannot be customised. At Euramax, our products come in a range of colour options and glass designs that can be customised to suit the desired house style, be it traditional, modern or anything in between. What’s more, our windows come with a ten-year guarantee, which means new houseowners will be safe in the knowledge that their new property will be fit for purpose however their lifestyle may change. With more than four million people in the UK living in sub-standard accommodation, it’s important for the housebuilding industry to prepare for the First Homes scheme to allow them to work with the Government to reduce this number. By carefully considering the unique needs of the first-time buyer market and selecting housing components that meet them, housebuilders can be sure that new properties will serve their owners for years to come.
Mainstay Residential has announced a fresh appointment in the north west – expanding its presence into Manchester’s evolving Piccadilly neighbourhood. Mainstay will provide services to the area’s Paradise Wharf development, a trio of schemes – Junction Works, Whittles Croft and Jutland House – perched along the Ashton Canal and close to the renowned Ducie Street Warehouse. The development will be managed under the company’s Integrated Property Management (IPM) portfolio – its holistic solution for higher-end properties with care delivered by an award-winning team. Mainstay’s Associate Director for the North West, Kate Magill, said: “The team is over the moon to have been appointed to manage Paradise Wharf. “On a personal level, I am particularly excited as I’m proud to call Manchester my hometown and have spent most of my working life managing properties in the area. Paradise Wharf has gained a reputation as one of the city’s gems and I intend to treat it as such.” The nearby Ancoats district, recently named as one of the world’s ‘coolest’ neighbourhoods to live in by both TimeOut and The Times, has led to a surge in demand for residential properties in the area. The 114-unit Paradise Wharf development is located close to both Piccadilly Station and the wider city centre – making it a prime choice for both commuters and residents. Mainstay was selected by Paradise Wharf Management Company (PWMCL) following a competitive tender process. The company will officially take post from 1 October. Paradise Wharf Management Company said: “We are really excited to have appointed Mainstay to manage Paradise Wharf. We were really impressed with the approach of Kate and her team. They bring some fantastic experience and have some great ideas to improve the development. We feel that Paradise Wharf is safe in Mainstay’s hands.” Mainstay Residential has experienced exponential growth across the north west, having been retained on Urban Splash’s Castlefield masterplan – including Burton Place, Moho, Timber Wharf and more – for a number of years. The company also recently announced appointments on McGoff’s Downtown scheme in Salford and Royal Quay in Liverpool. Its appointment on Paradise Wharf cements its status as one of the region’s largest and most active property management companies.
The Manchester-based developer and asset manager has created three businesses – Unify, Unify Energy, and CubicWorks – to overhaul the way it delivers facilities management, fit-out and utilities services to clients. Unify will provide a range of integrated facilities management solutions, including mechanical and electrical repairs and maintenance, energy, cleaning and specialist cleaning, while Unify Energy will provide energy as a managed service to help occupiers across Bruntwood’s property portfolio to cut costs. Meanwhile, CubicWorks will offer construction, refurbishment and fit-out services alongside mechanical and electrical design and installation. Chris Oglesby, chief executive of Bruntwood, said: “We’re excited about these three disruptive ventures and their potential to shake-up the provision of FM and contracting services across the UK. “Organisations of all shapes and sizes expect more from their property than ever before and we know what it takes to deliver not just excellent spaces, but excellent experiences and services within them. “So, for us, Unify and CubicWorks are very much a part of our ongoing evolution as a group.” Bruntwood’s chief operating officer Richard Burgess will assume the role of chief executive of Unify. The new business unit employs 350 people, 250 of which have transferred to Bruntwood from its existing FM suppliers. Unify has secured 30 contracts so far, entering its first full financial year with an £8m order book as it continues to target occupiers of commercial office and public sector buildings, national retailers and industrial and logistics occupiers. Unify Energy will offer energy as a managed service and sub-metering to Bruntwood customers and other building landlords and property agents. Its chief executive is Sarah Martin, currently director of utilities at Bruntwood. The aim is to offer an alternative model to the single-meter system typical to multi-tenanted buildings, where landlords and agents have to split energy bills with occupiers based on square footage. Unify Energy, as a fully licensed supplier, can provide metered energy bills directly to each occupier instead, “giving customers and landlords a more accurate and compliant managed energy service”, Bruntwood said. Unify Energy will also explore opportunities on behalf of its clients for on-site energy generation, in line with Bruntwood’s goal of generating 30% of its energy on site by 2030. Meanwhile, CubicWorks will be headed up by three Bruntwood directors – Shan Khambata, Mark Spavin, and Mark Wright. The business will aim to “rip up the rulebook” and adopt a consultative and partnership-led approach to project management. “It is not your average construction refurbishment and fit-out company…more like a construction partner,” according to Bruntwood. The firm has been appointed by developer Bywater Properties to refurbish its £2m Northstar office scheme in Manchester’s Northern Quarter. It will also become a supplier to Bruntwood Works and Bruntwood SciTech. More than 50 employees from Bruntwood’s project contracting team have transferred into CubicWorks.
Housebuilders have defended proposed planning changes allowing up to 40 to 50 homes to be built before an ‘affordable homes’ quota kicks in. Last week the Local Government Association criticised the government for the proposals, which it claimed would have resulted in 30,000 fewer homes being built over the last five years. But the National Federation of Builders, NFB, said raising the limit from the current ten homes threshold to 40 or 50 wouldallow more small developers to build homes. NFB housing and planning policy head Rico Wojtulewicz said: “Negotiations on affordable homes has meant that developments have been delayed by up to two years. If you raise the threshold for building affordable houses then more homes will be built throughout the country.” Affordability challenges being addressed Mr Wojtulewicz that added first-time buyers’ access to help-to-buy would still enable them to get onto the first rung of the property ladder even in hotspots like the South East. Currently, developments of more than ten homes must have a 20 to 30 per cent ratio of affordable properties. Mr Wojtulewicz said this had acted as a deterrent for many smaller developers. LGA housing spokesperson and Swindon borough council leader David Renard said: “Proposals to exempt developers from having to build affordable housing on certain small sites are of huge concern. With rising housing waiting lists and record numbers in temporary accommodation, we desperately need to be building more affordable housing, not less.” Mr Wojtulewicz said since 2018when the cap on local authorities’ housing revenue accounts was lifted, it was now possible for them to contractlocal builders to create council homes. He pointed to forthcoming first home legislation where local first-time buyers are to be given a 30 per cent discount on new build homes in their area as another affordable homes measure. Brokers Hank Zarihs Associates said the changes would help SME developers especially in the wake of the current Covid-19 crisis survive and make it easier for them to gain construction loans.
V7 Asset Management and BauMont Real Estate Capital have appointed LSH as letting and managing agents on their new project at Thames Valley Park, Reading. BauMont acquired buildings Four and Five from Microsoft in March 2020 and retained renowned redevelopment and asset management company V7 for their exciting new project. The properties will undergo a comprehensive refurbishment which will focus on wellness and sustainability, creating an exciting prime office environment that brings the best of the town centre amenity and workplace trends to Thames Valley Park. The buildings comprise of a total of 155,585 sq ft and are located just off Junction 10 of the M4, perfectly situated for access to Heathrow airport within 30 minutes and Reading train station is just two miles away. Tom Fletcher, Head of LSH’s Reading office, said: “We’re thrilled to be working with V7 and BauMont on this exciting project. We’re seeing a solid level of activity in the Reading office market and we truly believe that, once complete, this workspace will transform the perception of business parks leading to it becoming a magnet for occupiers migrating from London who are seeking to diversify their operational footprint.” Hazel Nancarrow, Director of Property and Asset Management at LSH, added: “We are excited to be working with an asset manager who is as passionate about transforming underperforming buildings as we are providing stand out management and occupier experiences, and we look forward to supporting V7 and BauMont in realising the true potential of these two buildings over the coming months and years.” Chris Hunt, Co-founder and Director at V7 Asset Management, commented: “We have had a really positive experience of working with LSH on several other properties and were particularly impressed by their enthusiasm for results in lettings and their drive for community and environmental sustainability across the properties that they manage, so they were the natural agent of choice for this instruction.” The refurbishment will see Building Four (69,370 sq ft is PC in 2021) and Building Five (86,215 sq ft PC summer of 2022) undergo an extensive refurbishment offering new amenities including a concierge reception and event management, outdoor terraces, indoor and outdoor gyms, tree-house meeting rooms and independently run Cafés by local baristas.
Angel Central Shopping Centre has appointed Lambert Smith Hampton’s (LSH) Belfast-based property and asset management team as its managing agent to help out with the site’s £16 million redevelopment. Due to be completed in November, the £16 million shopping centre masterplan by CBRE Global Investors will create further retail, additional leisure and restaurant space plus an outdoor terrace area. Phase one investment works included the redesign of an existing car park into new retail and leisure space and the creation of a 15,500 sq ft flagship retail unit for Uniqlo. The second phase of the transformation includes the elevation of the 12-tonne Angel Wings sculpture, while an existing retail unit is to be converted into a restaurant. “We are delighted to be appointed on Angel Central, particularly at such an exciting time for the scheme following significant investment from the landlord. CBRE GI has worked hard to elevate the shopping experience at this centre with additional space and a new layout. We very much look forward to being part of the successful future of this landmark scheme,” commented Gary Nesbitt, head of property and asset management at LSH in Belfast. Located in Islington, the centre has tenants that include Uniqlo, The 02 Academy, Vue Cinema, L’Occitane, Wagamama and bespoke fitness operator FRAME.
For property managers working in the UK rental market, times have changed dramatically since the pandemic hit hard. But, the good news is that many of the emerging trends are proving beneficial to the market. Demand for rental properties up Strong demand for rental properties has continued with economic uncertainty and tighter mortgage lending driving people away from house purchase. At the same time, shortage of new rental properties has kept rent levels up. UK rental income in June was on the rise — up 1.1 percent on average compared with equivalent figures for June 2019. However, the difference in rental variations was quite significant. In the North West, for example, average rents in June were up 6.6 percent on the same period in 2019. In contrast, the South West saw an increase of just 1.8 percent for the same period. The East of England saw no change, while the North East and South East saw decreases with Greater London experiencing the biggest fall of 1.8 percent. There was a surge in demand for rental properties in May, but supply was not keeping up, in contrast to the boom in build-to-let. . Build-to-let increasing Build to rent (BTR) is one of the fastest growing sectors in the UK property market. According to recent figures from the British Property Federation, there are now 167,853 BTR homes in the UK, up from 157,512 in Q1 2020. BTR properties are owned by companies and custom-designed for rental by multiple occupants. They carry strong branding, making them easier to market than individual properties. Unlike private accommodation, BTR properties provide management services and offer shared facilities such as gyms. They are designed to appeal to long-term renters who may not be able or interested in buying a home and provide long-term stable revenue streams compared to private fluctuating short-term income. House prices more affordable Demand in the wider housing market has been stimulated by the Chancellor’s Stamp Duty holiday, which has made house purchase more affordable, particularly for properties under £500,000. As an example, Bromley in South East London saw an astonishing 83 percent rise in enquiries following the announcement. Rightmove calculated that a buyer in London would save around £15,000 on average. That lower cost is also encouraging landlords to increase their portfolios to take advantage of sustained demand for rental properties. Technology adoption increasing The pandemic and the subsequent lockdown have accelerated the adoption of technology in the rental market -a sector that has traditionally lagged behind the rest of the property market. That can make it easier for property managers to do business. The ability to put property details online and integrate sophisticated search functions can make it easier to match tenants and property owners. It also improves convenience for tenants, giving a competitive advantage to property managers offering online search. The wider availability of online data on trends makes investment planning and resource allocation more accurate and effective, helping property managers improve ROI on rental properties. For property managers with smaller rental portfolios, online tools are available to simplify property valuation. Adding information on details of the property – the number of bedrooms, whether the property is larger or smaller than average and an estimate of its condition – into the tool provides a professional valuation in minutes. Arranging and conducting viewings in person can be very time consuming. The lockdown forced landlords to offer virtual viewings by video and this is now recognised as a practical alternative by both tenants and landlords. There is a cost to produce the initial video, but this can be used for multiple viewings and may be more cost-effective than the same number of personal viewings. Landlords lifes are also being made easier. Letting agent comparison sites like Rentround help landlords save on their agent fees and recoup more rental property profits Going online to speed up processes Access to online databases can simplify and speed up processes like tenant identity verification or credit checks, which are essential elements of the letting process. Similarly, landlords or property managers are now able to customise tenancy agreements online before digitally sending them to the tenant and having them electronically signed. One of the main aims of property technology is to create ‘frictionless transactions’. Creating online rental documentation, accepting digital signatures on contracts exchanged online and online payment systems to simplify rent collection are examples of the way technology is changing the traditional property management/tenant relationship. As well as saving time and money, online transactions improve customer service and convenience for tenants. Communication with tenants can be improved by making greater use of videoconferencing tools like Zoom or Cisco Webex, which has been widely adopted during the pandemic. Those tools also improve communication with colleagues and other property professionals such as lawyers, letting agents and surveyors. Property managers who want to work with letting agents can make significant savings by using online services. High street agents’ fees cost 8 percent or more of the rental price for advertising, interviewing and credit checks. Online agents’ charges for a similar service attract an average set fee of around £50, with Portico Direct charging just £1 to advertise on Rightmove, Zoopla and On The Market. Navigating the new landscape Continuing change in the rental market coupled with economic uncertainty poses many challenges for property managers. However, adopting the many innovations and benefits of property technology can help managers maintain greater control and improve the efficiency of their operations.
Whether you’re a landlord or you simply want to make money with real estate, understanding how to manage property properly is essential to your success. You don’t just need to know how to fix things when they break. Any first time landlord/property manager needs to take on many jobs when they’re just starting out. How you manage a property could make a big difference to your success. Short term rentals are becoming more popular, but long term rentals are one of the best ways to make passive income. The best thing about it is that even if you only put 20% down on a property, you will receive 100% of the rental income. Not having time shouldn’t be an issue, as a local property manager could take care of everything for you. However, you could save a huge sum of money if you do some of it yourself. Here, we’ll go through 10 things all property management beginners should know. Transparency is Key Managing a property the right way involves a lot of hard work, communication, and transparency. Setting expectations by going the extra mile for people in the properties is a must – the only way you can land yourself in hot water is if you fail to communicate or set the wrong expectations. For short term rentals, if you list a feature not available in a property it’s not important as long as you communicate to resolve the issue quickly. If you leave it to fester and don’t say anything, it could end in a complaint. Being as transparent as possible when listing and describing the property can save plenty of headaches and complaints later on down the line. 2. Get To Know The Property and Save Headaches Upon purchasing a property to rent out, make sure you get to know it as well as you can. Knowing what systems and elements are involved and the lifespan of those systems is key, as you need to be prepared to care for them appropriately. A lack of preventative maintenance will result in complaints at the very least, at most, a huge repair bill and even a serious accident. 3. Reinvest in the Property Before You Rent It Out Reinvesting in the property before you rent it out could mean making it far more attractive and attracting guests who want more luxury. People will pay good money to rent a luxurious property. 4. Do The Maths – A Financial Plan Is Imperative Make sure you have a good idea of how much revenue your home is likely to generate, taking into account the location, the level of luxury, the size, and the amenities. This will also depend on who you plan on renting it to, for instance, families looking for something long term or couples looking for a short term stay. 5. Work Alongside A Real Estate Agent A good real estate agent can offer some great advice pertaining to the industry and property management. However, they should understand the business, so do your research to find someone suitable. This will do you the world of good during the early stages. 6. Should You Use Finance To Fund Your Purchases? Knowing where you’re going to find the money to finance your purchases is crucial. Banks and societies will offer buy to let finance, but you may need to consider things like home loan refinancing or restructuring so you can free up capital to achieve this. A private loan, business angel, or another source of cash could also work depending on what you believe to be best for your venture. Property is a debt driven business. You do need to take on some level of debt before you can really enter the property market. Even cheap properties are expensive commodities. Unless you have a large amount of cash in reserve, going into debt is the only way to achieve your goals. 7. Your Strategy Regarding Personal Use Of course you can use your own property, but if you’re using it as a vacation rental then you don’t want to be there during peak times. Make sure you’re strategic about your personal use and stick to the off season if you can. 8. Think Of It As A Hospitality Business When running the place as a rental, you should think of it like a hospitality business. Consider the care and attention that many hotels and other types of accommodation provide to their clients. It should be second to none, and the extra mile will ensure that these people consider coming back again and again. A property management company can help with this, but you do need to have a genuine desire to please the people who stay in your property. Treating them like valued friends will go a long way to making sure they give you a good review and help you to build your reputation. 9. Come Up With Realistic Pricing One of the biggest mistakes that property managers can make, is renting out a place with the pricing set too high. Your approach should be realistic, so do your research. What are others charging for similar properties in similar areas? You need to use this information to come up with a price that people will pay. You should work hard to find the sweet spot if you want to have a high occupancy rate. 10. Build a Solid Relationship With Your Housekeeping Team Having a housekeeping team that you can trust is essential. If you’re going to own property and rent it out, a high level of care and attention when hiring your team will make the biggest difference to client satisfaction and your reviews. A team that overlooks the details will only reflect badly on you and your service. Complaints and negative reviews will make your business suffer. Set your expectations clearly when you find a team and then work on building that relationship. If you’re just starting out as a landlord or getting into property management, the
