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You’ll probably know this already if you are a landlord, but if you don’t yet, you should get to know it – because rental yield is important!
But, what is rental yield and what do you, as a landlord in Ashton Under Lyne need to know about it?
Put simply, rental yield is a way to measure the return on your investment. There is your gross yield and your net yield, which are both important, but take different things into account.
Let’s say you rent out a two-bedroom property in Ashton Under Lyne for £850PCM.
As an example, if you originally purchased the property for £150,000 and you divide the annual rent (£10,200) by the amount you invested (£150,000) and times it by 100, you get a percentage, and that’s the gross yield. In this case 6.8%.
Gross yield is a fairly basic figure but it gives you a good idea about what you’re getting back. However, there is also net yield. This is similar to gross, but you also take into account the additional costs you incur as a landlord, such as insurance, maintenance, solicitors, agents, mortgage, and so on.
This net yield is helpful because you can look at exactly how much it costs you to be a landlord and shows you where you could reduce costs to increase your yield.
Deciding what a good yield is might be different, but anything above about six or seven per cent is good.
Our team at Alex Jones are adept at helping people make the most of being a landlord, and we have come up with a list of five ways landlords can increase their rental yield.
1. Review Rents Regularly
Here’s a simple way of helping to increase the rental yield. At the appropriate time, look at the rental income on a property – can it be raised to be more in line with the going rate? Make sure you keep within your contractual agreements, though and remember that while a rental increase may be right for you, if a tenant has been with you for many years and has caused you no issues, do you want to upset the applecart?
2. Review Your Outgoings
Let’s look at what you are spending on your property. Do you automatically renew your insurance, or is there a more competitive alternative on the market? If you use a plumber, are their costs expensive, or can someone do the same job for a lower price?
Keep on top of your outgoings, and set reminders to look at alternatives when the time comes. Being a landlord is a business, so treat it as such.
3. Check Your Mortgage Renewal
You may have a buy-to-let mortgage for your property, but is it still the right one? Many different products are being brought to market, so when you’ve come to an appropriate point in your mortgage agreement, have a look around.
Always be mindful about switching. Keep an eye on the media for different products and even though it might not be the right time immediately, make a note so that you can go back to it when you are ready.
4. Invest Wisely
When you are thinking about becoming a landlord, do your homework. Look at where to spend your money, but also at the type of property. Do you want a newer property with less maintenance, or do you want an older place with the risk more could go wrong?
If you have a plan and it works, don’t deviate. If you have a good yield because you’ve got a newer home, stick with the idea when looking at another buy to let.
5. Be a Better Landlord
You’re more likely to get a better yield if you have a great property and great tenants (and yes, both can be achievable). But, can you be a better landlord?
- Do you add quality fittings?
- Do you respond quickly to issues?
- Do you get things fixed promptly?
By being a great landlord, you’re more likely to attract great tenants and be able to justify higher rents.
You assess a house and a tenant – why not assess yourself and see how you could be a better landlord. It makes business sense.
Having the right tenant in your property is more likely to help with yields. If they look after the house, your costs are likely to be lower.
Of course, for total efficiency, we suggest you consider using a lettings agent to help manage your property portfolio. A full expert property management service will help you make the most of being a landlord.
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Who doesn’t love a nice glass of wine? A drop of rose in the summer perhaps, or a crisp, dry white? Maybe a full-bodied red is your choice?
Imagine balmy summer evenings spent in the garden of your new home in Tameside with a tipple, or cosy nights in front of a roaring log fire supping a glass or two – so many of us enjoy wine in moderation as a way of relaxing and socialising with friends in our homes.
But are you the type who chooses the most expensive bottle because you think that price means quality, or do you go for the cheapest bottle because as long as it doesn’t give you a rotten hangover, you don’t really care?
Do you feel that choosing wine is difficult? Well, actually, you may be surprised to learn that understanding good wine doesn’t have to be as tricky as many profess it to be.
Expert Wine Tasting Is Not as Difficult as It Looks
Learning how to taste wine properly will help you understand the flavours you enjoy and support your palette to differentiate between the unique tastes and textures associated with wines.
Those with significant expertise in the area would love us to believe that the tasting process is convoluted. However, that is not the case at all. Four simple steps should be followed to allow you to taste and evaluate your wines, evoking all senses.
You must take a good look at the wine you are about to enjoy under natural lighting. Assess the wine for its tone and colour, which can be used as an essential benchmark when comparing it to others.
Smelling the wine prepares your brain for what you are about to taste. Our sense of smell has a significant impact on how our brains process flavour, so this is an essential step in the process. Remember to keep your mouth slightly open whilst smelling to get the most from this step.
At this point, you finally get that all-important taste of the wine. Take a small sip at a time, allowing the liquid to linger on your tongue slightly before swallowing. This will enable you to consider the taste and texture fully.
This does not mean you have to fill out a complex notebook comparing and contrasting. But instead, consider the flavours you appreciated and how they compare to similar wines that you enjoy.
Always Check the Middle of the List
When dining out in a restaurant, most guests don’t want to appear cheap by ordering the least expensive wine option on the list. This is why the second least expensive wine is always the most popular on any menu!
Additionally, many people panic when handed the decision-making duties and simply opt for the wine at the top or the special that the restaurant is promoting.
Sommeliers and restaurant managers tend to hide their favourites somewhere in the middle or towards the end of the list to reward those who are paying attention.
Wine, and Taste, is Personal
Your taste in wine will be entirely dependent on the diet you have enjoyed throughout your life.
There is considerable pressure, especially when just getting into wine, to choose something profound. Opting for an ‘ordinary’ Chardonnay or Merlot can feel like somewhat of an embarrassment.
However, there is nothing wrong with sticking within the taste range you enjoy. If in doubt, ask the sommelier for any recommendations based on your current favourites.
Expensive Doesn’t Always Mean Better
To analyse wine price points, you must first understand what makes a wine expensive. There are three key factors to consider.
Most of us are under the assumption that older wine is always better, but that is not entirely true. For every extra year of ageing, expect to add anything up to another £1 per bottle. However, ageing only has a dramatic impact on red wines. So, if you are partial to a glass of white, it is likely that you are paying above the odds.
Most of the best wines across the world are aged in oak barrels. This process adds extra flavours and improves texture. For red, the oak ageing process adds deep flavours such as chocolate and nutmeg. For our white wines, the oak often adds vanilla flavours.
Some grapes are simply more expensive, with costly and luxurious vineyards factored into the retail price. Additionally, the import cost will undoubtedly affect what the customer pays.
So, does this mean expensive wine is always better? No. It is entirely context specific.
It is also worth remembering that ‘expensive’ is personal. What some would consider expensive barely breaks the threshold of decent wine for others.
While a £20 bottle is probably going to be a little smoother than one at £4, once you start getting into the professionals’ realm, many people simply cannot tell the difference.
Choose Wines from Different Regions
We are all used to seeing the regulars on the menu and in the supermarket: Australia, Chile, and Italy. However, if you notice a wine from an unusual region, it will likely be one of the best available.
It often means that the venue, supermarket or off-licence has gone out of its way to source the drink, indicating it has something unique to offer.
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Whether you are a green fingered fanatic and can’t wait to pull on your gardening gloves and get stuck in, or if you consider the maintenance of your outside space as just another household task that you need to tick off a list, you can’t deny that the imminent arrival of summer is the perfect time to update and refresh your garden.
From the planting of spring flowering bulbs to sprucing up your winter-weathered garden furniture, keep reading to find out how you can make your garden summer ready in six simple steps.
1. Get underway with weeding
Possibly the most boring and time consuming of all the garden maintenance tasks is weeding, but unfortunately it is a crucial step in getting your garden summer ready.
Start by removing any weeds that have accumulated in your flower-beds and then look to remove any dead plants from around your garden.
You can also tidy up your borders using a strimmer or an edging tool.
2. Tend to your lawn
After a long winter without a trim, your lawn is no doubt in need of a good mowing. It is always best to mow your lawn when it is dry, and you should also leave the grass clippings where they fall as this will provide the soil with moisture and nutrients, resulting in a healthier lawn.
Now is also the ideal time to aerate your lawn. This can be done either by hand with a fork, or with an aerating machine.
3. Fix up your fence
Fences can take quite a battering over the winter months and nothing can make your garden look as neglected and uncared for as a faded wooden fence. Therefore, it is vitally important that you repaint and treat your fence to ensure it looks its best once the sun starts shining again.
If you have painted your fence previously, you should first strip off this colour before you start the re-painting and treating process.
The colour of your fence is completely dependent on your personal preference although it should be noted that darker stains can make your garden appear smaller. If in doubt, try and choose a shade that will complement the plants and flowers in your garden, as well as any garden furniture that you may have.
4. Set up a scrubbing station
Depending on the items you have in your garden, you may have a fair amount of cleaning on your hands. From a rusty BBQ, to grubby outdoor seating, to debris littered decking; essential cleaning will definitely be on your list of tasks for ensuring your garden is summer ready.
To remove rust from your BBQ, simply mix one cup of baking soda with a little bit of vinegar, apply to the affected area, leave for half an hour and then scrub away with soapy water and a sponge.
Outdoor tables and chairs can also be revived with just a bucket of warm soapy water and a bit of elbow grease.
5. Sow your seeds
Whether you favour flowers or prefer growing a selection of edible plants, now is the perfect time to start deciding what you want to grow and where. Once you have established your preferred plants, you should start ordering your summer flowering bulbs and seeds.
Now is also a good time to hunt down and eliminate any hibernating garden pests that may attack and destroy your precious plants and produce once they awake from their slumber.
You can either use a shop bought pesticide, or you can make your own soap spray that will effectively eliminate any pests. Simply mix one tablespoon of dishwashing soap with one gallon of water and spray directly onto the insects.
6. Install a water butt
Keeping your garden looking fresh and vibrant requires a lot of watering, especially over the warm summer months. Using water from your tap can send your utility bills spiralling if you have a water meter fitted, so instead, install your own water butt.
There are a wide variety of sizes and styles to choose from including slimline options if you do not have much space and second-hand butts available on eBay if you are keen to save money and do your bit for the environment.
Other water saving tips for your garden include:
- Using a watering can instead of a hose pipe
- Watering your plants when the temperature is at its coolest, either first thing in the morning or later in the evening
- Not overwatering your plants
- Not worrying if your lawn becomes scorched, it will recover quickly once the rain returns
If you are getting your property market ready and planning on moving to or within the Tameside area soon, why not telephone us on 01612929223 or call in. We’ll be happy to advise you on our available properties in the area.
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There is a dance we do when it comes to buying and selling a property! In most cases, you’ll want to sell your property first and then buy another property second because this means having a greater deposit to work with and enough funds to cover all your moving costs. If you sell at the right time, then you can potentially sell your house fast and for the asking price or, if you can start a bidding war between multiple interested parties, in some cases, greater than the asking price.
Seasonal Selling: Housing Market and Selling Expectations
Spring is a great time to sell and traditionally is the season when lots of properties come to market. Potential buyers are not away enjoying their summer holidays, there is that feeling of warmth and renewal in the air, and in general, many people want to move during this season simply because it means they can settle into their new home during the warmer, more pleasant months of the year.
Summer has windows of opportunity for selling your home but it’s important to understand that this is also a time when families will be preoccupied either with taking care of their children who are off from school, or away on holiday. That said, many people do have extra time in the summer due to taking time off work and may potentially fit viewing houses into their schedules.
Like Spring, Autumn is another traditionally great time to sell. Try to get your property up and ready – clean it, declutter it and stage it – before the summer ends. This way, you can get it on the market by late August ready to woo those fresh September buyers!
Winter is busy with preparations for Christmas, which means that after December 1st you may see buyer activity slowing down. Come January though, the market usually picks up again ready for that all important leap back into Spring!
Other Considerations When Putting Your Home on the Market
It’s not only the season that can make a difference to the best time to put your home on the market. These other factors also play a part:
Planning Works Nearby
If there are big road works or building works going on outside your property, you might want to wait until these are completed. Objectively, it should only improve the value of your home, so it may be worth holding off!
Conversely, you could also use planning works in progress to boost the value of your home whilst it’s on the market. For example, if new transport links are being built nearby this could attract more buyers to your property. Be aware of what is being done near you so that you know whether to wait or whether you can use it to boost value.
The Housing Market
In some cases, the housing market will be booming, and the value of properties will be so high you will want to ensure you take advantage of this and get a sale as fast as you can. In this case, it is best to hire professionals to come in and deep clean and stage your home so you can sell it fast, whilst the market is hot.
A recession or political uncertainty is always going to have an impact when selling your home, but you do have other options whilst you wait for the ideal time to put your house on the market. If your mortgage is entirely paid up, you could rent your property out until the best time to sell. This way you can also benefit from an income. If you want to rent out your home but still have a mortgage, then you will need to speak with your lender to get the necessary permissions and switch to a buy to let mortgage.
Be Prepared in Advance No Matter What
Of course, you want to sell, above all else, so whatever the season, it’s important to be ready. This means having your finances in order, getting your home in order, decorating and making minor improvements and repairs, and ensuring your property looks its absolute best and so attracts views. A house that is ready to be sold is far more attractive to buyers than one that is not!
If you are considering putting your house in Tameside on the market, talk to us at Alex Jones on 01612929223 for the best possible advice.
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Photographs are an essential step when selling your home in Tameside and are integral to an effective marketing strategy.
Your photos need to look fantastic and stand out in a busy market. The images need to be an accurate and honest representation of the property, which is why staging your home before the professional photographer arrives is crucial.
If you are not hiring professional home stagers, there are some simple steps you can take to prepare your home in the best possible way before we send our professional photographers out to capture your home at its best!
Pay Attention to the Front of The Property
Even the nicest of cars cause distraction. Remove your vehicle from the driveway to give the viewers the full impact of the outside space and an unobstructed view of the front of the property. Additionally, ensure garage doors are closed. Small changes will make a significant impact on the overall quality of the photography.
If you usually keep the bins at the front of the property, ensure they are hidden away out of any shots. Thoroughly clean windows and windowsills to provide that the all-important front image of the home is immaculate.
Take some time to tidy the front garden, giving the best first impression. Mow the lawn, trim back any hedges and remove any empty plant pots that may be lying around.
Make Your Gardens Attractive
Gardens are often a huge draw for potential buyers, both those who are breaking free from the rental market and those climbing up the property ladder. Gardens are subject to personal taste, but neat lawns, clean decking, smart patios and clearly defined eating areas are what buyers want, so take time to prepare them before the arrival of your photographer.
Showcase Your Bedrooms
Remove any signs that may be stuck on bedroom doors, especially common for children’s rooms. Store away any children’s toys which may eliminate part of your target audience. If you don’t have the storage room, hide them in the car while the photographer is working!
Make all the beds and plump up the pillows. If any cushions are looking past their best, hide them out of shot. Items like this can do more harm than good and make the whole room look tired.
Add Sparkle to Your Bathroom
Bathrooms and kitchens are the main rooms that can really draw viewers to a home. Simple hacks in the bathroom can drastically elevate your photographs. Simply make sure the toilet seats are down, and mirrors are sparkly clean with no watermarks or smudges.
As bathrooms are often small, create space by being as minimal as possible. Store away cosmetic items such as shampoo, lotions, or razors. The bright colours of the bottles can be unattractive and distracting when photographed.
Remove Kitchen Clutter
Kitchens are the heart of the home, and a beautiful kitchen is often the factor that convinces unsure potential buyers. Clear all surfaces, leaving minimal appliances in view. This will prevent clutter from causing distraction and give the illusion of a bigger and fresher space with plenty of work surfaces.
Don’t Distract with Electronics
Turn off the TV and any computers and make sure there are no loose electronic devices left on countertops, which are distracting for people viewing the images. The last thing you want to see are beautiful images of your home with a distracting TV show in the corner of the otherwise perfect image.
Let in The Light
Open curtains and blinds wide to let the natural light flow through the home. Your photographer will then be able to manipulate the light to show your home in the best, most natural way possible. If you have blinds, open them tilted upwards. This will push the natural light towards the ceiling, allowing it to illuminate without being too harsh for photography.
Give Your Pets a Day Out!
Although you love them, it is best to keep pets out of your listing photographs whether it is a cat, dog or hamster, if possible, remove the pet from the home for the whole day, as this will give you an excellent opportunity to clean, ready for staging, and prevent them from getting in the way of the photographer.
In addition to the pet itself, make sure any pet toys, food bowls and beds are out of shot. Furthermore, tidy up the garden, ensuring no waste or pet toys are lying around.
Call the friendly team at Alex Jones Estate Agents now on 0161 292 9223 – we use professional photography as standard!