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/





















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!

Renting properties to tenants with pets.

My landlords generally have a 100% NO attitude towards any kind of animal in their properties and I can understand why. My dog Cooper. A large 3 year old Golden Retriever likes to chew shoes, he sheds hair and he has been known to give the lounge rug a good soaking when still damp after a walk.

Cooper

But what to do when your property is empty and the only interested viewers have a pet? I'll tell you what you do,  you start questioning your no pet policy.

We recommend that landlords consider a pet when a well referenced tenant applies for a property with a furry friend. We advise that a double deposit should be taken along with a clause in the lease that the property should be professionally cleaned after their tenancy.

If possible try and get a reference for the pet. The tenant may be coming from a rented property. Hopefully the previous landlord had no issues and is happy to provide a glowing reference.

Sofa scratched by a cat

When inspecting your property during a tenancy make sure that you check curtains and sofa corners as cats sometimes use them as scratch posts. If there are litter trays in the property make sure the tenants are doing their best to combat the smell as it can last well beyond a single tenancy.

Having owned ACE for 10 years now I have had many interesting pet stories from house rabbits living in kitchens, budgies that do not live in cages and a tenant that blocked the toilet when trying to flush her dead rat! She expected us to pay for the plumber!

Communication with a tenant at the start of the lease on how you expect the tenancy to be carried out with a pet in situ is crucial to a smooth running tenancy. Make sure both you and the tenant are on the same page with cleaning costs and repairs to damage caused by the pet and make sure your inventory and photos taken at the start of the lease are accurate.

Why the property world needs Periscope!

I was introduced to Periscope on Monday night during a networking event on Twitter. Once a week Estate Agents UK host a #prophour event where members of the property industry from all across the UK can bounce ideas off each other and discuss current topics relating to the property market.

I was asked if I had started using Periscope for my business. Not knowing what it was I searched Google and did my homework. I discovered that several well known people, e.g. Chris Moyles and our very own local celebrity here in Edinburgh, Grant Stott were using it so I dug a little deeper.

Periscope is the new social platform which launched in March this year. The app is owned and run by Twitter so it is easy to use and the service it provides is excellent, not to mention the potential millions of people it can reach at the click of a button. I think it may just change the game in the property industry, let alone the rest of the online world.

Check this out! Periscope allows you to stream live videos anytime you like on any subject you like and followers can interact and comment as you are filming, genius! It's different to YouTube because it's LIVE! You are not filming and posting later. You may say "it's just FaceTime" but it's not because you can interact with followers all over the world. It's not just for calling your granny in Australia, although feel free to do so if you wish!

Today I posted four videos and picked up 3 followers. I posted an introduction about myself and my business, completed two property walking tours and a short video on the very hot topic of #proptech. I'll blog on that another time. Don't laugh, but I was nervous this morning when I went live! Why was I nervous you might ask? I have no followers and nobody would be watching! Well it's not easy to just think of stuff to say off the cuff and be all property expert Phil Spencer! As I was talking about my business and the day ahead I was joined by some viewers who commented on my beard and nothing else. I rambled on, lost my train of thought but I got through it.

Once I had finished it hit me how good this app just might be. I can promote all my properties and potential viewers can tune in and walk around them with me in real time whilst asking questions. Within my portfolio of landlords I have overseas clients that would love a real time walk through for their inspections. Being able to interact with clients online during a live feed is definitely a selling point when pitching to new landlords.

The For Sale market could benefit in a similar way. Overseas buyers have to make do with pictures and floor plans and sometimes a video when a seller pays for that sometimes pricey added extra. Periscope would enable an agent to walk around a property and interact with a potential buyer. Answer any questions on site, give measurements and feedback to any questions. That is a powerful tool that can not be overlooked.

Viewers could also live stream to their partners if they could not make a viewing. Possibly creating a quicker decision to purchase instead of having to arrange second viewings. Given the current market across the UK buyers are having to move quickly more often than not to secure a home or investment.

I intend to use Periscope to develop ACE Property and the relationships we have built with clients over the last 10 years. I am going to embrace this new platform and hopefully you will see the benefits and join me.

The beauty of Periscope is that it's for everyone. I am going to utilise it in my industry but it will spread like wild fire in every industry. If you are a chef, would it not be great for your fans/followers to interact with you while you cook? If you work in fashion would it not be awesome to ask for comments on designs from your trusted followers as and when you are spitballing ideas?

I could go on but I'm sure you get the picture. This app is going to grow and the time is now to get involved. I am actively posting and will be doing live interviews with other property experts within the next week so please follow me on Twitter @acepropertyNash and get involved!

Finally why not check out my videos. I'll be posting throughout the day. Let me know what you think and please get in touch with any questions.

You will need to download the app to view. It takes seconds.........do it!

 

 

Edinburgh student rentals

It's safe to say that the student market in Edinburgh is booming. At ACE Property Management we have been renting 1 beds to 6 bedroom HMO properties all over the city on behalf of our landlords to students looking to move in during August and September. Students are starting to enquire about properties earlier and earlier each year and we were fielding interest as far back as January. Rents have been maximised where possible and the high standard or our properties helps to attract the best quality of tenant across the board.
 

An HMO (3 bedrooms or more) property in Marchmont with double bedrooms, good décor and well maintained throughout should command £400.00 per room minimum. If advertised with good pictures on the major portals like www.citylets.co.uk and www.zoopla.co.uk the phone will be ringing red hot.

We have recently rented two 5 bedroom properties over looking the Meadows for £475.00 per  person creating a £2375.00pcm rental. We had tenants qued outside the door prior to the viewing and had to run the viewing on a one in one out system as there were so many interested students.
 
Most students ask if possible for a lease to run from Aug/Sept to May/June the following year. ACE run student properties on 1 year leases and once discussed most students are able to accommodate a year. Make sure though that during inspections there are no rooms being sub-let. Tenants with placements abroad during the summer months often try and move someone else in to take over their liability for rent. The new tenant could cause damage and disappear leaving a headache for an agent or landlord to resolve at the end of a lease.
 
Make sure inventories and photographs are completed and agreed with student tenants at the start of a lease. It is not unheard of for students to throw a party during the year and for the property to take a hit! Don't get me wrong some student properties are clean and tidy all year with tenants handing a flat back in just as good if not better condition than they got it. But there are some that need a professional clean and repairs done on exit so the inventory and pictures become extremely important. The Tenancy Deposit Scheme will handle deductions and disputes so make sure everything is set up correctly at the commencement of the lease.
 
During a student tenancy access for inspections and maintenance will be required. Believe it or not sometimes students don't answer their phones or EVER get back to you. I'd recommend always e-mailing a tenant so that there is a trail of communication and you can prove that you have tried to make them aware that access is needed. Try to avoid going into a property without consent unless there is an emergency. Communication with your tenants is crucial to keep relationships strong.
 
Many landlords try to stay clear of students. Our portfolio www.acepm.co.uk has a strong mix of professional and students lets and both provide different problems every now and then. When renting to students be sure to get previous landlord references, guarantor agreements and increased deposits when required. I can not stress enough that setting everything up correctly at the start of a lease will reduce the chances of problems during and after a tenancy.

Usual links-
Tenancy Deposit Scheme
https://www.lettingprotectionscotland.com/
http://www.safedepositsscotland.com/

Edinburgh Council HMO info-

http://www.edinburgh.gov.uk/info/20058/private_housing/372/houses_in_multiple_occupation_hmo