Friday 19 June 2015

Tips and advice when renovating a Buy-to-Let

I purchased a one bedroom ground floor flat in Gorgie, Edinburgh last November with a plan to refurbish and rent it out. The property was in total disrepair. The previous owner had passed away and her son was selling the property. I viewed the flat on a wet and cold November evening and I could tell from the son who was carrying out the viewings that he was keen for a quick sale.
Kitchen ready to be ripped out.

I already had a decision in principle from Birmingham and Midshires so an offer was put in the following day and accepted very quickly.

You can see from the photos that the property needed a lot of work. I went through the usual headaches with lenders checking everything twice and wanting to know everything about my personal finances and affordability. I instructed Kevin Robertson who owns The Mortgage Specialist in Edinburgh to handle my BTL application.  His expertise in dealing with BTL mortgage applications was invaluable and I highly recommend his services. 

Wall stripping
Completing the purchase in late November meant I was going to hit a slow period over Christmas and New Year when the trades industry shuts down. My target for completion was the end of January and with a full refurb to do time scales were tight.

It's very important when renovating a property that you have a sequence of works and that you stick to it. Delays will, of course, occur. For example, my plasterer lost the keys to his van which had his equipment inside. This delayed things for 4 days and I ended up having to find a new plasterer.

Bedroom before refurb- lovely carpet!

Trades
If you are not experienced in property development and have had no prior dealings with tradesmen it is worth asking friends and family for recommendations.

Having owned ACE Property Management for 10 years I have built up a good stock of reliable tradesman and I'm always glad to recommend their services.

Ask for quotes and how long it will take to complete a job before anything is agreed. Getting a price upfront usually means that the electrician or plumber will not drag the job out and will want to move onto their next project as quickly as possible.

The trades I used-

Damp Proofing- As the property was a ground floor flat there were signs of moisture on the outer bedroom wall. This was treated and re-plastered. A pacifier vent was installed in the bedroom and lounge to increase the circulation of air throughout the flat.

Plumber- required to disconnect everything for the rip out. Reconnected the appliances in the kitchen along with installing the kitchen sink, shower and bathroom sink.

Electrician- to install electric heaters, connect kitchen appliances, refit lights, install smoke detectors in the hall and lounge as well as carrying out the nessesary safety checks.

Joiner- installation of the kitchen and odd jobs where required.

Window fitters- the old windows were removed and new double glazed units installed

Plasterer- some walls were damaged and needed a smooth coat to improve the new decoration

Decorator- papering and then painted walls, woodwork and ceilings throughout.

Carpet fitter- Vinyl flooring in the kitchen area and bathroom and carpets elsewhere.

Don't expect to call a plumber and have him pop round that day. Plan ahead and book in advance.

New kitchen, flooring and decoration complete
The flat was completed January 23rd and new tenants moved in January 30th on a 6 month short assured tenancy paying £550.00pcm.

I advertised the property on www.citylets.co.uk www.zoopla.com.uk  and www.lettingweb.co.uk along with ACE Property giving the flat exposure on www.acepm.co.uk , a shop window card on Bruntsfield Place and a "To Let" board at the property.

The flat is located in a popular area for young professionals and students so there was interest quickly and a deposit was put down after the first viewing.

Start of a tenancy
On entry I took dated photos throughout the flat, meter readings and provided the tenants with a written inventory. You must take time when setting up a tenancy because you will need your inventory and photos should there be problems during the tenancy or once the tenants move out.

Their deposit has been registered with Letting Protection Scotland  and the property has been added to the City of Edinburgh Council Landlord Registration database.

There are many things that landlords need to be aware of when renting a property, from safety checks to deposit registration. Don't think you can just move tenants in and collect the rent each month. Seek advice on current and changing regulations from experts who can guide you through the red tape and avoid any unexpected issues further down the line.

At ACE Property Management we have been renovating flats throughout Edinburgh for years and welcome the opportunity to meet landlords who require advice and guidance. We are happy to recommend our tradesman and enjoy getting a property to completion then sourcing quality tenants.



New heating and double glazed windows- ready to Let




Useful links-

for mortgage advice and guidance-
http://www.themortgagespecialist.co.uk/ .

Edinburgh Landlord Registration-
https://www.landlordregistrationscotland.gov.uk/Pages/Process.aspx?Command=ShowHomePage

Deposit Schemes-
https://www.lettingprotectionscotland.com/
http://www.safedepositsscotland.com/

























Friday 5 June 2015

My Periscope property journey so far.........

I am lucky enough to be pool side in Port de Pollenca, Spain as I write this article, safe in the knowledge that everything at ACE Property Management is in good hands. My experienced team have already told me to stop bothering them and to just relax and enjoy the sunshine.

You may be thinking 'What the hell am I doing blogging on holiday?', well when something's hot you have gotta move fast. I'm talking about Periscope.
If you follow me on twitter @acepropertyNash you'll by now be aware that I have been live streaming my portfolio of available rental properties since April. The app which is not even 3 months old yet is expanding rapidly and becoming an industry game changer in my eyes. I'm here to tell you that if you want to stay relevant you need to pay attention and keep up.

But there's more......... I'm not just talking about the power of a live walk through I'm also using it as a management tool. Periscope allows me to stay in touch with my staff, to keep landlords informed and up to date with ongoing repairs and with my tradesman who often try and describe a problem they have found, well now they can show me, LIVE! Brilliant......



Example 1;
How often has a plumber tried to talk you through a boiler fault or a leaking sink waste? You get the idea and can picture in your head what he is talking about but to actually be there with him, with the added benefit of being anywhere at any time meeting the other demands involved in this role, not only makes me more efficient and effective as a Property Manager, however, it could make how you report the repair to the landlord a lot easier. As the plumber streams the issue straight to me in my office I can see and interact with the issue allowing me to be far more knowledgeable when it comes to updating the landlord. Hey, if necessary, the landlord could also live stream and see the problem for themselves! Don't get me wrong, it's not about cutting corners, there are still times when you must attend a property to inspect repairs and check work but as a time saving tool this can not be over looked.

There is also the added bonus that the tradesman in the property can live stream to the agent and landlord privately. The app lets you stream openly to anyone that wants to view or you can restrict to specific viewers.

I believe solid relationships between landlords and agents are built on communication. Hidden costs and unknown repair bills are the main reasons for landlords moving agencies. Periscope will strengthen relationships letting your landlords know you are moving with times, improving your service by using the latest technology.

Example 2;
A tenant calls to report a faulty hoover. The first questions are always: "Have you changed the bag, checked the fuse?". If the tenant live streams the problem to you it possibly saves a tradesman call out. You have seen the problem and can react quickly, therefore saving time, money and inconvenience to both the landlord and tenant, respectively.

I watched my Property Manager, Charlie's live stream yesterday as he prepared to show a flat in Bruntsfield, Edinburgh. It was his first time and it was obvious he was nervous and slightly uncomfortable with this unique situation, however, he got the property details across and answered questions from viewers quickly and accurately. As a business owner on holiday to see my staff promoting our stock was very impressive.

Should there be any issues whilst I'm away my colleagues and I can easily connect through Periscope and I can advise and instruct on repairs or any issues.

The emergence of new technology and apps from the guys at @getretech , @gofalkon , @KnockerApp , @movebubble , @Pi_Labs , @benutech and @rightmovepro to name a few are improving the options and services we can provide to our clients. Renting or selling the market is evolving and the use of social platforms is continuing to shape our industry.

If you are new to Periscope and don't know where to start just follow Mark Shaw @markshaw and Alex Pettitt @Alexpettitt  . These guys are leading the way in Periscope training and brilliant streams. They are happy to answer questions and develop this exciting new app one video at a time!

A massive thanks to Mark and Alex as there streams have given me excellent tips and hints which are benefiting ACE Property Management and my clients.

You should also check out @UpYourPeriscope that offer 1-2-1 Periscope training and have published an online book to help us master the skill of streaming, LIVE!

 I can hear the older generation of Property Managers and agents grumbling now. They will not be ready to embrace change and advancing technology. "We've always done things this way and have had no complaints." That's fine but the younger generation, the generation of renters and young landlords will be using Periscope and trust me you'll be chasing the forward thinking companies when you try to catch up!