DEMAND OUTSTRIPS SUPPLY!! Judith Davis PENYARDS PROPERTY MANAGEMENT

In the last part of 2009 and the first 8 weeks of 2010 the surge of power has shifted from tenant to landlord as the number of properties available for rent has dropped by about 50%. The reluctant landlord – who in late 2008 and early 2009 could not sell and was forced to let – has been replaced by the growing band of reluctant tenants. These include house hunters who have successfully sold their property but are unable to find somewhere to purchase due to the shortage of property available to sell, divorcees and the “priced-out” first time buyers. The reduction in available properties has also been fuelled by the number of investment landlords who are taking the opportunity to sell in a rising market.

Earlier this year ARLA – the Association of Residential Letting Agents - reported that
during the last quarter of 2009 41 per cent of its members had more tenants than
properties, up from 24 per cent in the previous quarter and 10 per cent in February 2009;
54 per cent of its members said that these tenants were being forced to rent rather than buy.

Some agents are reporting close to 100% increase on prospective tenants registering for a property to rent in January 2010, putting tremendous pressure in certain areas of the market. Some properties have more than one tenant wishing to proceed and this shortage of properties to rent is pushing the prices up. In the Winchester area rents in the £500pcm to £1800pcm are increasing between 5% and 10%, however the properties at £1800pcm and above are remaining static - for now.

Over the last 10 years the private rental sector has been growing steadily and accounts for 14% of the population. It looks like this increase will continue quite dramatically throughout 2010 as long as the supply is present.

Over the last six months at contract renewal rents have remained static or in some cases have even reduced. With the shortage of rental properties available this will be set to reverse dramatically and it is anticipated that rents will increase in line with the Retail Price Index at renewal.

It goes without saying that now would be an ideal time to put a property on the rental market. If you are thinking of renting please call Penyards Property Management for no obligation advice on the legalities, preparation of your property and a free rental appraisal.

For further advice please call Judith Davis, Partner, Penyards Property Management, 23 Southgate Street Winchester SO23 9EB Judith.davis@penyards.co.uk 01962 860303

UNPRECEDENTED DEMAND FOR JANUARY!  Judith Davis PENYARDS PROPERTY MANAGEMENT

As predicted in late Autumn 2009 the rental market in 2010 has started with a bang and not
a whimper! There has been unprecedented demand in all areas of the market across Hampshire with Penyards Property Management letting at least one property every day of the New Year.  As a result there is an immediate shortage of property available to rent.  The greatest increase in demand is from the “renting family” - the “would-be” first time buyers whose age has now increased from mid twenty to mid thirty and they still cannot afford the deposit to allow them to become home owners.  These people now have children and whilst they initially rented one and two bedroom flats they are now moving up into three bedroom houses.  Therefore the demand is high for this size property particularly in the price range from £1100pcm to £1800pcm. There is also increased demand from vendors who have succeeded in achieving a sale on their property.  They are selling at what they feel is a good price, moving into a rental property and waiting for prices to fall when they will be in a good position to pounce on a potential bargain. What type of properties are these tenants looking for? Older Victorian properties or the modern estate-type houses?  If the houses have been updated with contemporary bathrooms and kitchens then the more unusual period property is always appealing, as long as it has the convenience of private or off street parking and easy access to public transport.  Alternatively brand new contemporary properties appeal particularly with large open plan kitchens and living areas suitable for modern day living. Every available property should be presented well, with clean lines, neutral decor, good quality carpets and curtains and finishing touches.  It has been proven time and again that the property which is neutrally decorated will let much more quickly than its multi coloured competitor. The garden should also be well pruned with grass cut and borders neat and dug over. If you have a property which you are considering letting and would like free advice on preparation and the current letting legislation, all with no obligation, then please give Penyards Property Management a call.

For advice on the rental market and any queries on the law of lettings, property management and block management  please write or call  Judith Davis, Partner, Penyards Property Management, 23 Southgate Street Winchester SO23 9EB  judithdavis@penyards.co.uk  01962 860303  

 EXPERIENCE COUNTS!    

Twenty years ago Penyards Property Management opened its doors to the lettings market across Hampshire and has grown consistently ever since.  Over the winter of 1989/1990 Judith Davis and the owners of Penyards Estate Agents could see there was a growing need in the Recession of the early 1990s, just as there is now, for vendors who could not sell but needed to move on.  The answer was to enter the newly developing private rented sector, thus enabling unsuccessful vendors from other areas to also move. It was as if a light was switched on and all could see their way forwards - the housing market was freed up!  This was reinforced by new legislation covering lettings in the form of the Housing Act 1988 which gave greater protection to landlords who had previously lived in fear of “sitting tenants”.  The new laws meant that repossession of their property was made simple and there was now no difference legally between letting a furnished and unfurnished home.           Since the spring of 1990 Penyards Property Management has grown to a company letting and managing hundreds of quality individual and period properties throughout Hampshire.  It consists of a Winchester based team of 14 highly trained lettings experts with clients ranging from IBM and Vodaphone to B & Q and the MOD.  They pride themselves on being members of the Association of Residential Letting Agents which gives their clients total financial protection.   For the past two decades Penyards Property Management has worked with the many Housing Act updates and the new legislation covering furniture, gas, electricity, multiple occupation, health and safety and tenants deposits to enable them to provide a wealth of experience and information to guide new landlords through the venture of lettings.  If you are thinking of letting your home in the New Year and would like free advice on the laws of lettings, how to prepare your home and a rental  valuation please call  either Katherine Treseder Griffin (Lettings Manager),  Judith Davis (Partner), or Carolyn Sigward (Negotiator) pictured from left to right above.  

For advice on the rental market and any queries on the law of lettings, property management and block management  please write or call  Judith Davis, Partner, Penyards Property Management, 23 Southgate Street Winchester SO23 9EB  judithdavis@penyards.co.uk  01962 860303    

IS YOUR BLOCK LEGAL?

by Alan Davis, Partner,
Penyards Lettings & Property Management, Winchester

With the huge increase in new blocks of flats and housing estates comes the question of how the communal areas of these developments will be managed.  Will the gardens be maintained to an acceptable standard?  Will the stairways be kept clean and safe? 
Who will change the light bulbs in the hallways?  Who will ensure that the parking areas do not become a “free for all”? Who will organise and run the residents meetings, collect the ground rents and report to Companies House?   It is a strange concept that whilst the owners of a flat own the flat they do not own the land on which the building stands!  Nor do they own the flat indefinitely - there will come a time when the ownership of the flat will revert to the owner of the land, the Freeholder.   Most newly built blocks of flats/developments have a resident owned company which has responsibility for the management of the building structure and its common parts. Many of those companies
sub-contract the  day to day management to a Property Management company who organises the services and handles the legal and safety-related issues which arise, together with the accounting and service charges which are levied on the leaseholders.   Penyards Property Management has been managing blocks of flats around the city and Hampshire for 15 years and has in-depth experience in this field. Alan Davis, the Partner heading the Block Management Department comments, “This part of our business requires different skills to our Residential Letting and Property Management activity.  It is surprising how many residents running their own block management are not aware of the dangers and illegal situation they put themselves in by not taking professional advice.”   As every block of flats/development is unique, so is the service offered; tailored to meet the needs of the building and its occupants, with a management plan in place to ensure that exactly the right services are arranged for each building. Those plans include regular inspections of the site, arranging insurance, safety checks and organisation and management of resident meetings and AGMs.  

 For further advice on Block Management or any other queries on the law of lettings and Property Management  please write to Alan Davis, Partner, Penyards Property Management, 23 Southgate Street Winchester SO23 9EB, email alan.davis@penyards.co.uk or call    01962 860303    

RIDING HIGH ON THE STORM OF RECESSION!!

By Judith Davis, Partner,
Penyards Lettings & Property Management, Winchester

The team at Penyards Property Management have ridden high on the storm of the 2009 recession and feel that a period of calm is nigh!

Early in 2009 the lettings market was difficult – nobody was moving unless they had to for reasons such as job changes, divorce etc.  Nobody was selling and therefore were not moving into rented property either.  Everywhere was quiet on the housing front.  However, as we moved into the third quarter of the year the market has picked up dramatically for two reasons.  One - workforce mobility. Companies have begun to recruit and move staff again and due to continued uncertainty these new employees are renting rather than buying, so they have flexibility if their job does not work out. Two – the kickstart of the house sales market. In certain pockets there is a shortage of properties to buy – therefore in these areas houses are selling quickly at possibly inflated prices. These vendors are jumping out into rental properties and waiting, yet again, to see what happens next to house prices.  Will they continue to rise or will they flatten off?

Whatever the reasons, the rental market has become buoyant again, albeit with rents generally lower than they were twelve months ago.  The price fall has been particularly noticeable at the top end of the market where rents have dropped between 10% and 20%, while the lower end has seen a 5% to 10% reduction.   For landlords with tracker mortgages there is no problem at all, however, it is a bitter taste for those on higher fixed interest rates. Only the landlords who are sensible and reduce their rent quickly will survive with no void periods. 
The rental industry is moving towards 2010 with an air of positivity and eager anticipation as at last the housing market is once more upwardly mobile.

For advice on the rental market and any other queries on the law of lettings please call  Judith Davis, Partner, Penyards Property Management, 23 Southgate Street Winchester SO23 9EB judith.davis@penyards.co.uk 01962 860303  

LICENSING LIKELY FOR ALL LANDLORDS!

By Judith Davis, Partner,
Penyards Lettings & Property Management, Winchester

In future licensing will not only be for landlords of public houses, but also those of houses that are let. The Government is to insist that anyone who lets property (or even takes in a lodger) is to have a licence. This proposal is part of an initiative to “clean up” and raise the standards in the lettings industry.

This move has been met positively by tenants .. they feel that whilst they can be interrogated about their income, credit history and employment, a landlord who may be behind with their mortgage repayments and about to be repossessed can keep this information to himself. Whilst regulated agents will normally have a clause in their tenancy agreement confirming the landlord has authority from their lender, private landlords will not necessarily include this clause.

In spite of a current oversupply of rental property in most parts of England, still some landlords have not cut their prices or improved their product. Potential tenants at all levels still have horror stories of properties offered with squalid kitchens and bathrooms and filthy carpets. Unfortunately many landlords do not see themselves as professional business people. Licensing is designed to put an end to this. It is short sighted for these landlords not to realise that if they present their income stream properly – well decorated and finished in neutral colours - they will achieve not only a higher rental but protect their capital investment for the future.

The demand for rental homes is set to increase, particularly with young professionals being forced to delay purchasing a home due to loan shortage and unemployment fears. Now house prices are lower it is a good time for investment landlords to buy and supply this higher demand. Landlords should be aware that with licensing on the cards, they need to be professional, take advice from a regulated letting agent and get it right from the start. Penyards Property Management can not only advise on setting the correct price – imperative in this fluctuating market - but also the current minefield of ever-increasing legalities governing lettings and how to prepare property to ensure maximum rental is achieved.

There are no short cuts to maximising rental income .. it can end in tears if the new laws that have been introduced by the government over the last few years are not adhered to. Licensing is planned to eradicate amateur landlords and ensure that both landlords and tenants benefit – landlords by achieving higher longer term protected rentals and tenants with the comfort of a safe well presented home.

For advice on the rental market and any other queries on the law of lettings please call Judith Davis, Partner, Penyards Property Management, 23 Southgate Street Winchester SO23 9EB judithdavis@penyards.co.uk  01962 860303

PENYARDS PROPERTY MANAGEMENT ARE FUNNY FOR MONEY AND RAISE £640 ON THE STREETS OF WINCHESTER! - March 2009

For the 4th time Penyards Property Management have donned their red wigs, noses and fun clothes and stopped the traffic on Southgate Street, told jokes to the drivers, sold them cakes and purloined money for the fantastic cause that is Comic Relief!!

They are thrilled that their efforts early on the morning of Friday 13th March - Red Nose Day - raised so much money for people who are less well off than themselves.

Not only did they tell the jokes on Southgate Street, but set them giggling in the local businesses, at the station and even on the buses!!

It seems that in spite of there being a recession there are still some very generous people out there!!

THE ACCIDENTAL LANDLORD!
By Judith Davis, Partner,
Penyards Lettings & Property Management, Winchester

An eruption of To Let boards throughout the country has arisen as a result of the phenomenon of the Accidental Landlord. This is yet another reaction to the downturn in the sales market – family house owners who need to move due to a job relocation or similar but cannot find a purchaser. They can reluctantly reduce the price over and over again or instead let their home thus becoming landlords by accident! These landlords often choose in turn to rent another property in their new location – thus increasing the current upwardly spiralling rental market.

Rental prices until recently have increased steadily in line with the cost of living – however with the surge in supply it has become a tenants market and with an increased choice of property they are driving hard bargains to secure their new home, resulting in price reductions in certain pockets of the market. The larger family properties are being hit particularly cruelly by this downturn in rents while the one and two bedroom properties – being rented by those who would have been first time buyers given the chance – are holding their rental value. Already in London and some areas of the UK rents have fallen on average by as much as 10%.

What happens next remains to be seen – some Accidental Landlords who are struggling with a rental income not covering their “buy-to-let” mortgage may eventually decide to reduce their sales price and sell, possibly to other Accidental Landlord purchasers and so a new spiral will commence. Some tenants, on the other hand will be so attracted by the new-found bohemian lifestyle that they remain committed tenants, possibly forever. They can adapt their lifestyle and home readily to their good or bad fortunes within a few weeks and have plenty of capital to spend on life experiences – holidays – schooling – hobbies etc – not so easy when you have to sell and buy a home which can take many months and even then fall through!

These new and the existing landlords need to be realistic about how much rent they can charge – they will be competing with the growing number of landlords in the same position – ask too much and the property will lie empty.

One thing is certain – what the Accidental Landlord does next is of great importance to the economy as they will shape the future of the housing market.

For further advice on the rental market or any other queries on the law of lettings, property management and block management can be answered by writing to Judith Davis, Partner, Penyards Property Management, 23 Southgate Street Winchester SO23 9EB Or emailing judithdavis@penyards.co.uk or calling 01962 860303

HOW TO CHOOSE AN AGENT!
By Judith Davis, Partner,
Penyards Lettings & Property Management, Winchester

As the lettings market is growing at an alarming rate so is the proliferation of letting agents and private landlords, some of them not as qualified or experienced as others. If you are thinking of letting or renting a property it is therefore increasingly difficult to tell the “wheat from the chaff” to ensure, amongst other things, that either your largest investment, your home, or your dilapidations deposit is protected. So how does one go about choosing an agent who comes up to expectations and more!?

Many people are not aware that the lettings industry is not regulated by the Government and there is nothing to stop anybody with little or no knowledge setting up a lettings business. There is, however, the Tenancy Deposit Scheme which is a legal requirement but it is terrifying how many private landlords are still not registering their deposits and are therefore breaking the law. Tenants with private landlords should therefore beware!

Choose an agent who is regulated by one of the trade bodies such as ARLA or RICS. This will ensure that if the Agent “goes under” the tenants’ deposits and landlords’ rents will be securely bonded. A regulated Agent has to pass stringent tests and requirements, to include having their accounts audited and their staff trained in the minefield of legalities such as Gas, Electrical and Fire Regulations.

Experience of the agent is paramount – knowledge of the market and the years of building relationships with Relocation Agents and local companies cannot be acquired overnight. At Penyards Property Management we have over 20 years experience in the local market and the company is still managed and owned by the same Partners.

An adequate number of staff per property is essential, there is nothing worse than having a Property Manager away on holiday leaving the office so short staffed that there is nobody available to do a viewing or deal with a blocked drain!!

A presence on the main property portals such as Primelocation and Rightmove together with their own website and a dominant weekly advertisement in local papers is essential; how will the properties be properly seen otherwise?

For managed properties it is imperative to have 24 Hour Maintenance Cover to ensure that if a tenant has an emergency issue such as a cooker breakdown on Christmas Eve or a burst pipe pouring water through a ceiling then there is always somebody who can deal with it immediately. A call at 9:00am the next working day is of little help in those situations.

Finally if the decision is still difficult - ask around .. there is nothing like a personal referral from somebody you trust !

For advice on the rental market and any other queries on the law of lettings, property management and block management please write or call Judith Davis, Partner, Penyards Property Management, 23 Southgate Street Winchester SO23 9EB judithdavis@penyards.co.uk 01962 860303  

BUILDING BLOCKS FOR LEASEHOLD LIVING - 22nd August 2008
By Alan Davis, Partner,
Penyards Lettings & Property Management, Winchester

With the ever increasing number of flats being built around the city, more and more people are living in leasehold property and learning the trials and tribulations of living in shared buildings. Some unexpected concepts arise: for example one does not own a flat, but own an agreement to occupy the flat for a certain period of time.

Almost all recently built blocks of flats have a resident owned company which has responsibility for the management of the building structure and its common parts; most of those companies sub-contract the actual day to day management to a Property Management company who organise the services required, and handle the legal and safety related issues which arise, together with the accounting and service charges which are levied on the leaseholders.

Penyards Property Management has been managing blocks of flats around the city and Hampshire for 12 years and has in depth experience in this field. Alan Davis, the Partner in the firm heading this department of the business comments, “This part of our business requires different skills to our Residential Letting and Property Management activity, requiring much additional training particularly in relation to the complex legal relationships that can exist between the leaseholder, freeholder, management company and their managing agent.”

As every block of flats is unique, so is the service offered; tailored to meet the needs of the building and its occupants, with a management plan in place to ensure that exactly the right services are arranged for each building. Those plans include regular inspections of the site, to ensure that it is in good order, and that the services are operating correctly. The negotiation and implementation of the insurances which protect the building and its owners is part of the service, along with the organisation and management of the meetings and Annual General Meetings that are required.

If the building in which you live requires professional management, contact Alan Davis at Penyards for further advice and assistance.

For further advice on Property Management or any other queries on the law of lettings and block management please write to Alan Davis, Partner, Penyards Property Management, 23 Southgate Street Winchester SO23 9EB, email alandavis@penyards.co.uk or call 01962 860303

RISING RENTALS REAP REWARDS!!  - 19th June 2008
By Judith Davis, Partner,
Penyards Lettings and Property Management, Winchester

With doom and gloom in the sales market and the prospect of more to follow - what is happening to the rental market?

From January to May 2008 there was a steady supply of properties coming for rental albeit slightly down on the previous years.

Applicant tenants during this period were, however, in shorter supply.

People were only moving if they had to and the rest were just watching and waiting. Vendors were giving it one last go and leaving their houses on the market until the end of May ie after Easter and the two May Bank Holidays. Nothing changed for them, however, and as a result, since the beginning of June, the rental market has been booming! We have doubled the number of properties available throughout Hampshire to around 50. On average we are valuing 15 new properties per week and most of these are houses that are not selling!

In addition the supply of prospective tenants has risen threefold, followed by a dramatic increase in those making a quick decision to take a rental property. The demand is there for all types of accommodation from one bedroom flats at around £500 per month to the larger family houses for £3000+ per month.

In opposition to the sales market and as predicted, the rental market is most certainly on the up! Those few people who have managed to sell are moving into a flexible rental home and bedding down – eager to see just how far house prices will fall! With the prospect of a further 0.75% mortgage interest rise by the end of 2008 and borrowings more difficult to obtain, the fall will no doubt continue well into 2009. Some are predicting for many years.

The last time this drop in prices and rise in interest rates hit hard was at the end of the 1980s when disheartened vendors began for the first time to move over to the rental market. However, at that time the phrase “sitting tenant” was still very common – only with the introduction of The Housing Act 1988 and 2004 was greater protection afforded to landlords. Since then legislation has included the mandatory introduction of Gas Safety Certificates, Electrical Safety guidelines, Furnishings and Fire Regulations, Houses in Multiple Occupation, Housing Health and Safety Rating System, Tenancy Deposit Schemes to name a few - giving increased comfort and peace of mind for all concerned. In fact there has never been a better time to be a tenant or landlord! Unlike the late 1980s –the rental market is offering a safe alternative enabling people to move even if they cannot sell or buy a home.

A DAY IN THE LIFE OF A PROPERTY MANAGER! - 12th May 2008
By Judith Davis, Partner,
Penyards Lettings & Property Management, Winchester

Everybody knows what a Lettings Agent does but not many know what goes on behind the scenes in the hectic and challenging life of a Property Manager!

Once a property is let, if it is fully managed, the real work of the Lettings and Property Management company is only just beginning!

Usually by the start of the tenancy the Property Manager has visited the property, met the landlord and acquainted themselves with the house and any idiosyncrasies that may exist – from where the oil tank is situated and how to work the water softener to details of the gardener to how to clean the marble bathroom. Notes are made and added to the “bible” of detailed information already supplied by the landlord on forms provided by the lettings company. This will be the reference point while the property is managed.

Once the tenant has moved in the Manager advises the utilities and Council Tax Office of the new occupiers, transfers the services into their name and settles the final accounts on behalf of the landlords.

The Property Manager will also: Arrange annual gas and electrical inspections; visit the property every three months to ascertain it is being looked after by the tenant and to check for maintenance issues; report defects to the landlord; arrange works (this can be anything from boiler repairs to window replacement to full decoration/refurbishment to the property) and authorise payment of invoices.

At the end of the tenancy the Manager will negotiate the dilapidations to the property with the tenant and landlord, guided by the strict legislation of the Tenancy Deposit Scheme enforceable since April 2007. Necessary repairs and cleaning or gardening will be arranged and the balance of the deposit will be returned to the tenant less any costs for damages.

The Property Manager’s job is a daily challenge which requires diplomacy, accuracy, attention to detail, excellent time management and good negotiation techniques – it is a tough job demanding a high level of training but very rewarding when done well!

TENANCY DEPOSIT SCHEME … HOW SAFE IS YOUR DEPOSIT!! - 28th March 2008
By Judith Davis, Partner,
Penyards Lettings and Property Management, Winchester

On April 6th 2007 there was yet another massive leap forward in the world of lettings! The Tenancy Deposit Scheme came into force – and about time!!

Gone are the days that an unsuspecting tenant loses his deposit to a rogue agent or landlord who decides the rental property needs upgrading at the ex-tenants cost. Gone are the days that the student landlord unilaterally decides to replace carpets and redecorate the student house because he has £1000 plus deposit in his hands, burning a hole in his pocket and he knows the students wont expect to get their deposit back anyway! Gone are the days where an agent says to the ex-tenant “Im sorry there is nothing I can do as I act as landlord’s agent and therefore am duty bound to do what he asks”!!

The Tenancy Deposit Scheme (TDS) is the result of decades of campaigning by trade bodies such as the Association of Residential Letting Agents to provide yet another safety mechanism for landlords and tenants by ensuring the deposit held for damages at a rental property is used in a just and fair manner either by the landlord or the agent.

The result is that within 10 days of a tenancy starting the deposit MUST not only be registered with an approved “deposit scheme” (there are three Schemes) but a certificate provided by the scheme MUST be provided to the tenant. If this is not done severe penalties may ensue: the landlord will be required to pay three times the deposit to the tenant as a fine AND until the deposit is registered the landlord will not be able to repossess the property!! This penalty is rigorous and extreme – and it needed to be to protect the innocent.

Unfortunately not all landlords are aware of this new law and lack of knowledge will be no defence.

A detailed and timely process for the return of deposit after the end of the tenancy must now be followed and any disputed deposit amounts can be forwarded to an adjudication service for a decision to be made by a third party.

The above process indicates the paramount importance of stringent and detailed paperwork as the result of the claim by the landlord will depend on this.

As can be seen from the above unless a landlord or tenant has good experience of the law of lettings and involved procedures they would be wise to let or rent through an agent who is regulated by a lettings trade body and therefore can advise and act on preordained guidelines. These new rules and regulations protect a tenant’s income and a landlord’s property – however if the guidelines are not followed everybody can lose out – and not just pennies but large sums of money can be lost.