BUYING TO LET?

An investor should:
* Plan to be a Buy to Let landlord over the medium to long-term as it is an investment
that produces a variable combination of rental yield and capital appreciation.
* Make an objective business decision when purchasing a property based on research
of the needs and requirements of the local market, not based on personal taste.
* Be aware that the rental market is fast-moving with fluctuating supply and demand.
This can influence achievable rental levels and occupancy rates.
* Take informed advice from both professional letting agents and specialised financial
advisers from the beginning.
* Get your sums right, will the rent cover borrowings and costs, after allowing for void
periods?
* Remember you will be responsible for buildings insurance and the insurance of
fixtures, fittings and your own furnishings.

A Letting Agent should:
* Demonstrate a comprehensive understanding of the legalities, regulations and
obligations which apply to landlords, tenants and agents.
* Provide realistic and up-to-date guidance on supply and demand based on a
detailed local knowledge of the market.
* Hold professional indemnity insurance, separate client accounts and a client money
bonding scheme, and employ trained, qualified staff.
* Have access to a complaints process over the service standards of letting agents and
to procedures for resolving disputes over deposits between landlords and tenants.
* Be a member of ARLA (Association of Residential Letting Agents). This is the only
professional and regulatory body solely concerned with residential lettings.

PREPARING YOUR PROPERTY FOR LET

You’ve found the right property and the purchase has been finalised. Now it’s time to
think about decorating and furnishing. WRONG!!!
Every week your new property lies empty waiting for furniture deliveries etc. is costing
you money. With planning and foresight you can minimise your expenditure and get
the maximum out of your investment.
Time spent in planning and preparation is invaluable and should begin when you have your
offer accepted. It most cases there will be a few weeks between this and completion. It is
essential that you use this time to refine your ideas and options and work out your budget.
Wise decisions, planning and preparation will all convert into profit.

Timescales
Excluding any building work or renovations, you should allow a minimum of three
weeks to decorate and furnish. If you are doing this yourself this timescale will depend
on how prepared you are.

Before you begin:
1. Decide on your target market and projected rental return.
2. Set a budget for decorating and furnishing, draw up a list of items to purchase and
allocate provisional sums to each one.
3. Obtain floor plans from your estate agent or measure the property and draw up to xscale.
4. Compile a decorating and furnishing scheme for all rooms.
5. Source and select all furniture and check on availability. Provisionally book any
professionals you may require.
6. Remember these simple rules – start by choosing a look that you are happy with
and that suits the style and age of the property. Go for good quality furnishings and
a neutral colour scheme that creates a feeling of light and space. Keep it clean,
light and simple.

Identifying your target market
Decide on whether your property will be let furnished or unfurnished – your letting
agent will be able to advise you on what is expected in your particular area. It’s
often the case with city centre apartments that landlords are expected to provide
everything including towels and bed linen. Two sets of linen for each bed is
required. Remember you can always add smaller items if your tenant insists on it to
secure an agreement.

Setting a budget for decorating & furnishing
You should already have devised a budget for decorating work, materials and
furnishings prior to the property purchase and built this into your business plan.
Having established your target market you will now be able to refine this and decide
on the amount and standard of furniture you are going to supply. If you do not
furnish to a high enough standard you may have difficulty in attracting your ideal
tenant. Equally if you furnish too sparsely the property may not provide a proper
welcome for prospective tenants. On the other hand, spend too much and it may
be money wasted.
Make sure your budget is realistic and allow a contingency fund (about 10%) of
the furnishing budget. You may not need this but it is immediately available if
required.

Obtaining a floor plan
This does not have to be meticulous but it will save you time and money in
specifying items and budgeting if you know how many square metres of flooring the
property has and you can plan the size and placement of furniture. It is also worth
measuring the windows so that you can make an estimate for window blinds or
curtains.

Create decorating schemes for all rooms
If you don’t create a decorating scheme you could end up with a mish-mash of
styles and colours. A scheme will also save time in sourcing materials and you will
know what you are looking for and get it right first time.
Decide on the colour scheme and style of each room in advance, even compiling a
colour board including samples of fabric and swatches of wall paint colours. You
could also use reference photographs for the type of look you are trying to achieve.

Sourcing and selecting furniture
Remember you won’t be able to walk into a retailer and purchase everything you need
straight off the shopfloor. In most cases you will need to order and wait up to 12 weeks
for delivery. This will obviously have an impact on your furniture choice.
Discounts are often available on display models and once you have asked around you
will have a good idea of what is available in the timescale you require. Once you have
chosen an item, ask the retailer to check stock and give you a firm lead time for delivery.
Consider whether it is practical to make your own curtains or use a professional. Time
spent making them may be time best spent elsewhere. The same goes for decorating.
When choosing a sofa try and go for removable and washable covers, particularly if you
go for a pale cream colour. You may want to consider a sofa-bed particularly if you
have a one bedroom flat or small second bedroom. This can the be marketed either
as a study or second bedroom. Bedside cabinets and table-lamps are also a must.
Short of time to do these? Why not ask our Home Services people to help you?
What is Accord Home Services? They are a team of professionals who are
able to complete preparation work to present your Investment property in the
best possible light, on time and to a fixed budget.
Ring us to find out more

TENANT SAFETY

Furniture and Furnishings
From January 1997 any furniture supplied as part of a new letting must
comply with the Furniture and Furnishings (Fire) (Safety) Regulations. These
regulations require that the fabric and filling of upholstered furniture be made of fire
resistant material and pass the ‘smouldering cigarette’ and ‘match flame’
resistance tests and carry a label confirming this. Generally items manufactured in
the UK after 1990 are likely to meet these standards and display the
appropriate label. These regulations apply to sofas, armchairs, cushions, bean
bags, beds, mattresses, pillows, sofa-beds, futons, loose and stretch covers for
upholstered furniture.
Items excluded are antique furniture manufactured prior to 1950, carpets, curtains,
pillow cases, duvets, , bed linen, loose covers for mattresses.

Gas Safety
Gas Safety Regulations (1994) apply to appliances and equipment using the main
gas supply and require that:
1. The landlord of a rented property must have a gas safety check carried out
prior to a let and annually thereafter. A copy of the appropriate record must be
given to the tenants. Gas fittings and flues must be maintained in a safe
condition.
2. If any appliance is dangerous or defective it must not be used and must be
repaired or replaced as soon as possible.
3. These gas checks can only be performed by a Corgi-registered engineer.

Electricity
A landlord has a duty to ensure that any item supplied as part of a let are safe. This
is to minimise the risk of injury, death or damage to property and includes electric
cookers, microwaves, toasters, kettles, TV, video, washing machines, dishwasher,
electric blankets, fuses, cables, plugs, sockets etc.
Whilst there is no specific statutory requirement at present, ARLA strongly
recommends to landlords that appropriate ongoing checks are made and kept up
to date. Detailed written records should be maintained of their make, serial number,
condition and date of test. Any equipment showing obvious defects should be
either repaired or replaced. Things to check for would be fraying or damaged
insulation, old or exposed wires, poorly fitted or cracked plugs, scorch marks or
damaged sockets, plugs without sleeved insulation pins.