One way to add value to your home is by renovating it; another is through increasing the amount of accommodation, by either building an extension or converting something like the loft or a garage to create an extra living room or bedroom.

But if you don’t want to undertake that kind of building work, or you’re not able to because of planning or available space, the good news is, there’s another way you can add value – without calling any contractors!

If you invest some time and can spend a little money simply on the presentation of your home, that can carry a huge amount of weight when it comes to securing a buyer and getting the best possible price. The power of first impressions is the reason we have stylists on our team that work with photographers to create the best possible images for our clients’ marketing brochures.

Research carried out last year by The International Association of Home Staging Professionals found that the majority of homes that had been professionally furnished and styled sold for between 4% and 20% more than the asking price. And we know ourselves that when buyers see a home that’s beautifully presented, showing off every room at its very best and suggesting an aspirational lifestyle, they’re much more likely to see its value and make a strong offer.

So, here are our top tips on how to style your home so that you add real value. Not only could that mean securing a higher sale price, but you’re also likely to sell much quicker than other comparable homes on the market that are missing that all-important styling touch.

Maximise light and space

The lighter, brighter and more spacious a home looks, the better buyers tend to feel about it. That’s partly a reaction to rooms appearing larger than they expected and partly because you’re showing them that there’s plenty of space to fit in everything they’ll need to enjoy the home.

The first thing to do is tidy and simplify each room so that the interior space can ‘breathe’. You can still have photographs, ornaments and books on display, but just a few of each placed around a room is enough to show some personality, while still allowing buyers to easily visualise their own possessions in the space. If you’d like some advice on what to keep out and what you should put away while your home’s on the market, just give us a call and our stylists will be happy to help.

Once you’ve created more physical space, it’s then a case of using some optical illusions. Well-placed mirrors can transform a home, bouncing light around and giving an impression of depth, which is particularly helpful in narrower rooms and hallways.

And think about the size and orientation of both mirrors and pictures. The human eye naturally scans vertically before horizontally, so wall hangings with a ‘portrait’ orientation will give the impression of more height in a room. It’s also generally true that larger pictures tend to make rooms feel bigger than if you have clusters of smaller ones. If you don’t already have any larger pieces of artwork, there are many companies that will print images on canvases in a variety of sizes, very cost-effectively. Look through your favourite photographs – something like a unique shot of an attractive landscape can make a stunning feature in a room.

You can also emphasise the size of a room by having something that immediately draws the buyer’s eye to the furthest point from the doorway. That could be a particular piece of furniture, a large plant or a striking piece of art – just something that catches their eye as soon as they walk in. The same trick can be used outside, so that people are immediately encouraged to look down the garden, whether that’s to a lovely seating area or a brightly-coloured shrub.

Furniture

Given that a home is often the most expensive purchase many people will make in their lives, you’ve got to show that every bit of space they’re paying for is valuable, which means furnishing and styling rooms so that they have a clear purpose.

We find one room that often falls into the trap of looking a little like wasted space is a conservatory. So, if you have one, style it clearly as a peaceful sitting room or a light and airy dining room. Another common challenge is the smallest bedroom. No matter how tight the space, it’s important to style it so it’s functional, so set it up as either a single room or a study. For buyers who work part-time from home or maybe run their own small business, an office space can be just as valuable as a third or fourth bedroom and can make then feel as though they’re getting more for their money.

And make sure you allow furniture to ‘breathe’. In an effort to create more space, some people make the mistake of pushing furniture into the edges and corners – particularly in bedrooms – when this actually has the opposite effect. Spacing the furniture out a little will let buyers see that there’s plenty of room for it to fit properly, without feeling cramped.

Add warmth and colour

While light, neutral décor is certainly attractive to buyers as a basic canvas for your home, make sure you then brighten it up and add some personality with soft furnishings.

Pick a colour scheme for each room and put a few textured cushions and throws on chairs and sofas. You can go for a touch of glamour with velvet or fur, but limit the number and variety of accessories, otherwise it can start to look confusing. The idea is to add a splash of colour and interest, while not intruding on the overall impression of light and space.

Rugs can add warmth to wood or tiled floors and tend to work well in larger rooms. Generally speaking, try to avoid breaking up the flow of the flooring in smaller rooms and keep the number of accessories in proportion with the size of the space. A good rule of thumb is no more than one cushion for every seat and a maximum of two items on any surface.

Finally, make sure you have plenty of lamps around your home. They cast a much more flattering light than overhead fittings and can make rooms feel warm and welcoming, even on a dull day. Don’t forget to have some lighting outside, if possible, particularly if you’re accepting viewings in the evenings. Some solar-powered lights throughout the garden can also create a pretty effect and help make a memorable impression on buyers.

Lifestyle touches

When you’re selling your home, you’re selling a lifestyle, and if you can show people that you enjoy the space in a way that also appeals to them, it’ll encourage them to picture themselves there. And the more ‘at home’ they feel, the more likely they are to make a great offer.

The key is to pick the kinds of accessories that you see in aspirational magazines and boutique hotels, that buyers can easily recognise and identify with. Candles are a really simple and effective way of creating a welcoming atmosphere and, although you don’t have to light them all, some softly-scented candles in the main reception room and bedroom can help buyers to feel relaxed and connect emotionally with the space.

Plants and fresh flowers bring life to a room, so go for a mixture of greenery and colour throughout your home. Peace lilies are easy to care for and look great anywhere, while orchids are perfect for coffee tables and in bedrooms. Hand-cut posies of flowers are great for period and rustic homes, while longer, more elegant stems suit a modern style – and don’t forget to have a few glossy magazines on display as well.

The kitchen is traditionally known as the heart of the home, so make sure it’s beating! Have a lovely big bowl of fruit and a vase of fresh flowers on the counter tops, and then put some fresh bread on a board or cake on a stand before viewings.

Finally, in the bathrooms, have some fresh toiletries on display that have recognisable, aspirational branding such as Molton Brown or L’Occitane. Remember to keep a full set aside that you don’t use every day, then they’ll always look fresh for viewings. Finish the look in the bathroom with some clean co-ordinated towels.

As with soft furnishings, the golden rule with all these lifestyle touches is not to have too many and to place them carefully.

While you may have to spend a bit of money on styling your home, it should only be a fraction of what you’ll get back in terms of pounds on your sale price, so it’s certainly well worth the small investment.

So, whether you’re on the market already or just thinking about selling, if you’d like our advice on how you could add thousands to the value of your home through styling, call us on 01364 652652 or email katie@sawdyeandharris.co.uk and we can help you transform your space. We’re always here to help and would love to hear from you!

Maximising financial returns from property is key for many landlords. Here, we share five positive steps you can take to help protect your rental income.

For many landlords, rental income provides a valuable boost to their other earnings or pension. For some, it may even be their only income, while others might mainly use it to cover the cost of the mortgage and other expenses, as they wait for growth in the capital value. And some people use their returns from property to re-invest for future financial security.

Whatever your reason for letting, the rental income is important. And once you’ve made the effort to get your property ready to rent and found a suitable tenant who’s willing to pay a good market rate to live there, it’s wise to do everything you can to protect that monthly income.

Here are five positive steps you can take to help ensure you receive – and keep hold of – as much monthly rental income as possible. 

Reference thoroughly

Start out on the right foot by making sure you reference your tenants carefully. That normally means:  

• Asking tenants for 3 months’ bank statements. That will show you their regular income and expenditure and give you a good idea of whether they can afford the rent
• Carrying out credit checks. A basic credit report will tell you whether someone has a bad credit history or has any county court judgments (CCJs) against them
• Obtaining a reference from their previous landlord. You should ask them to confirm whether rent was always paid on time and in full, and if they would be happy to let to the tenant again
• Obtaining a reference from their employer. This is to confirm that they work for the organisation and should state the tenant’s current job role and take-home pay.

All this information together should give you a good idea of whether the tenant is likely to treat the property well and pay the rent as agreed.

Ask for a guarantor

Sometimes, perfectly reliable tenants simply can’t provide the proof of income we look for in our referencing process – for example, students or people who have just started a new job. And tenants working in certain industries, like hospitality, might be more vulnerable to losing their job through no fault of their own.

In this case, a good solution is to ask for a guarantor – someone who will be responsible for paying the rent if the tenant can’t. That person is usually a parent, but it could be a close friend or an employer. The important thing is that you reference them in the same way as you would a tenant and make sure they sign either the tenancy agreement or a separate guarantor agreement, which should include their details, details of the tenancy and how much they’re prepared to guarantee.

Some other key points to know about the guarantor:  

• Where possible, ask for the tenant to recommend someone who’s a UK resident, because it’s more difficult to recover debts from people who live in other countries
• Ideally, they should own assets so you have something to claim against if they don’t pay
• Try to meet them in person, or at least have a video call, so you can explain exactly what they’re agreeing to and answer any questions
• Every time the tenancy is renewed, they’ll need to sign a new agreement to confirm they’re happy to continue to be a guarantor.

Take out rent guarantee insurance

Rent guarantee or rent protection insurance can be a fairly cost-effective way of ensuring you’re not left out of pocket if a tenant can’t or won’t pay their rent. Many policies will cover you for the full rental amount for up to 12 months – with an upper limit – and include legal expenses in case you have to go through the eviction process to regain possession of your property.

If you don’t already have insurance to protect your rent, call us on 01364 652652 and we can chat through the cover we offer landlords.

Minimise voids

Any time when your property is standing empty, you’re losing potential rental income, so you’ve got to do all you can to make sure there’s as little time as possible between tenancies. Three key ways to do that are:  

1. Keep your tenant happy. If you communicate well with your tenant, respond quickly to any requests for maintenance etc. and make sure they have everything they need, they’re much more likely to stay longer. When there’s a change of tenants, some gap between the tenancies – even if it’s just a day or two – is almost unavoidable, so the longer you can keep the same one in situ, the better for your income flow.
2. Stay up to date with the market and tenants’ expectations. Standards in the rental sector are improving all the time, so if you haven’t had to re-let your property for a few years, you might not be aware of any changes in the market ‘norms’. Refreshing or upgrading some aspects of the property so it offers everything your target tenant is looking for should ensure a quick re-let at the best possible rent. See our blog: ‘How to present your rental property to attract the perfect tenant’. Finding the perfect tenant - Blog (sawdyeandharris.co.uk)
3. Advertise early and well. As soon as your current tenant gives notice, list the property with some attractive, up-to-date photographs. Importantly, make sure the rent you’re asking is realistic and competitive with other local rents. It’s much better to take a little less every month from a paying tenant on a 12-month agreement than to have the property sitting empty because tenants feel it’s overpriced.

If your tenant is approaching the end of their current tenancy, come and speak to us. We’d be happy to give you our advice on the current market and discuss how we could help you keep any void period to an absolute minimum.

Finally… Make sure you’re investing tax-efficiently

Once you’ve got your rental income, make sure you keep hold of as much of it as possible! Property tax is a complex and specialist area, so it’s wise to seek advice from an expert, who can help make sure you take rental profits and other gains in the most tax-efficient way, according to your own personal circumstances.

Over and above all these things, a big factor in the success of your rental is how it’s let and managed. Some experienced landlords who have the time and resources choose to handle things themselves, but the majority of landlords use the services of a professional letting agent.

At Sawdye & Harris, we have systems and processes in place to help ensure every aspect of a tenancy runs smoothly for our landlords, and our team is experienced in recognising and resolving any potential challenges early on.

So, whether you’re just at the start of your rental journey or you already have one or more properties, get in touch with us to discuss how we can help protect your rental income. Call us on 01364 652652 or email katie@sawdyeandharris.co.uk and we’ll get right back to you.

We know from experience that the better your home looks and feels when potential buyers come to view, the more likely you are to get an asking price offer.

 For many people, the decision about whether to buy a home is an emotional one, and we’ve found that, more often than not, they make that decision very quickly. By the time buyers see your home in person, they already know the size, layout and location, and the photos have been enticing enough for them to book the viewing. So this step of the buying journey is mainly about them making sure that your home is as good in reality as it looks in the brochure, and that it feels like the right place for them to live.

 Speak with your agent about how they can help.

You may already have your own thoughts about how your home should be presented for viewings, but it’s always worth speaking to your agent to get their input. We’re dealing with buyers and showing homes every day and can often suggest things that might not have occurred to you.

The best agents will have stylists on their team, who work together with a professional photographer to make sure that your home is shown in the most attractive light. Remember that these marketing photos are one of the key aspects that help to secure viewings, and that specific look is what your buyers will expect to see. So, while your home is listed for sale, the closer you can keep it looking to the images in your brochure, the better.

 Nevertheless, no matter how neat and tidy you are, there are always those last-minute tweaks and little jobs that need doing before a viewing. So here’s our handy checklist of 6 simple steps to ensure your home is perfectly prepared to welcome what could be your dream buyer: 

1. Make buyers feel great about your home before they even step through the front door

First impressions really do count, so think about how your home looks as buyers approach it. One thing that sellers often forget is to check how the ‘For Sale’ board looks – is it clean and straight? If there’s any damage, let your agent know right away and they can arrange for it to be replaced.

Try to ensure there’s somewhere for people to park their car, even if it means moving your own fifteen minutes before the viewing. Make sure the path to the front door is clear, the garden looks tidy and you have some welcoming potted plants at the entrance. Don’t forget the door itself – give it a wipe down, clean the handle and letterbox – and check that any outside lights are working properly.

2. Make the space shine

It’s really helpful if you can try to have the mindset that once your home is on the market, it’s no longer primarily ‘your’ home. You might have been used to leaving projects laid out across surfaces, having children’s toys and play equipment to hand and not worrying about keeping absolutely everything stored in its proper place. But buyers can often ask to view homes at quite short notice, so the cleaner and tidier you can keep each room, the less you’ll have to do at the last minute to get it ready for viewings.

If you can get used to living in a clutter-free way and manage to stay on top of the housework, then all you should need to do before potential buyers arrive is perhaps run the vacuum around and pop your teacup in the dishwasher!

3. Carry out a ‘fresh check’ on bathrooms

When it comes to bathrooms and toilets, your two watchwords are: ‘clean’ and ‘fresh’. As with the rest of your home, if you can make sure they sparkle on a daily basis, then you should only have three little things to do before a viewing:

1. Drop some scented disinfectant in the toilet or spray a gentle air freshener
2. Make sure the toilet lid is closed
3. Put out fresh towels.

Tip: Keep a clean set of towels just for viewings, so that you can make a quick switch and then swap them back out once the viewing is over!

4. A little bit of styling can make all the difference

When you’re selling a home, you’re selling a lifestyle, so think about what little touches will help people feel good about the space and make them want to spend time there. Candles, flowers, high-end magazines and pretty soft furnishings work well in reception rooms and bedrooms, while a fruit bowl and some fresh herbs will add life to the kitchen.

Use your marketing photos as a reference, and try to keep all these styling accessories in your home so that they just need a quick ‘condition check’ before viewings.

5. Fresh baking really does work!

It may sound like a cliché, but the smell of home baking really does appeal to buyers. Our sense of smell has a strong association with memory and can be highly emotive, so some freshly baked bread or cake in the kitchen might evoke memories of a happy childhood, while a coconut scent in a reception room, bathroom or bedroom might remind people of being on holiday.

If you can fill your home with aromas that remind people of happy times in their lives, it will help them feel good about it – and they’ll be more likely to remember it in greater detail after they’ve left. Just remember that less is more, and if you’re going for a fragrance, make it subtle.

6. Pet patrol…

Your beloved pet might be regarded as a member of the family, but not everyone is going to be a fan and some people may be allergic. The ideal solution is to take your pet out of your home while the viewing is taking place, but if that’s not possible, try to keep it contained in one room, along with beds, litter trays, etc.

If relocating your pet is proving tricky, you could ask your agent to tell prospective buyers about it, then let you know if they have any concerns and you can discuss the best solution.

At Sawdye & Harris, our team is always here to help, so if you have any questions about viewings or would like some more advice on creating the best possible first impression on buyers, just call on 01364 652652 or email us at katie@sawdyeandharris.co.uk. We look forward to hearing from you!

If you’ve ever searched online for a home yourself, you’ll know how many listings there are. The broader your search terms, the more results are going to come up, and then you start scrolling through…

So, what is it that makes you stop scrolling?

When you’re selling, how do you make sure your headline details stand out from the rest so that buyers click to find out more? Importantly, is the rest of your listing good enough to grab their interest and make them want to book a viewing?

The trick is getting the right balance of images and words: enough to whet people’s appetite so they’re keen to view, but not so much that they feel they’ve already seen everything your home’s got to offer. If you overdo the information, buyers could just put you on their shortlist and keep scrolling. Remember, the whole point of marketing is to get people through the door – so make them want more!

Photographs

Photographs are one of the most important features of your online advert. Around 90% of the information processed by our brains is visual, and we take it in tens of thousands of times quicker than text, so you really can’t overestimate the power of a great set of photos. Your main image should be your finest full shot of the front – and taking it at twilight with all the interior lights on can create a truly striking impression.

Then have between six and ten great photos of the inside and garden. You’ve got to show buyers the main rooms and some of the best features, leaving them excited about discovering the parts they haven’t seen.

Make sure your agent uses a professional photographer who can not only take the shots well, but also work with your agent’s team who are styling your home to create the best possible images. Interior shots look best taken on a bright day, so the photographer may need to make another visit to capture the all-important exterior twilight shots that will help ensure you have a great selection of images.

Buyers tend to connect with things that are both familiar and aspirational, so think about how different rooms look in glossy homes magazines and use that as a guide.

Here are some of the things you can do to get your home ready before the photographer and styling team arrive:

1. Vacuum and dust
2. Clean the windows and mirrors
3. Empty all the bins and put away your half-used toiletries
4. Tidy away any work, toys and kitchen clutter
5. Have some new candles, plants and/or flowers in the main reception rooms
6. Fill a fruit bowl for the kitchen
7. Straighten/plump up soft furnishings and towels
8. Take away rugs (plain floors make rooms look bigger)
9. Make sure all the light bulbs work, and have some spares, just in case!
10. Mow the lawn, prune the shrubs and flowers, and spruce up the garden furniture.

Then do your best to keep your home looking like that until it sells!

When your agent forwards the brochure for you to review, one thing to make a particular point of checking is whether the photographs flow ‘naturally’. Think about the route a viewing would take through your home and try to make sure the photographs follow that order, as far as possible. For example: the front exterior shot, then the hallway, followed by the living room, the kitchen, the staircase, the master bedroom, and so on. If the order makes sense, it will be easier for the buyer to visualise your home and may help create a stronger first impression.

The written details

Your headline and summary paragraph need to say what your home is, show where it’s located and make its best features shine in a way that entices potential buyers to look for more details. So, if your home is ideal for a family, highlight things like a fabulous open dining kitchen, games room, large garden and proximity to schools.

Then the bullet points should be between six and ten things that ‘snapshot’ the biggest selling features of your home. You’re trying to give buyers reasons to book a viewing, so make sure each point is a real benefit, for example:

• Unobstructed views across open countryside
• Master suite with private, south-facing balcony
• 24’ modern dining kitchen with Miele appliances and Rangemaster cooker
• Versatile, open-plan reception space
• Soundproofed home office with separate entrance.

Once people have seen the bullet points and been dazzled by your photographs, chances are they’re pretty much decided on whether to view. So, although they may want a little more information, they won’t want to have to scroll through reams of paragraphs describing every last detail.

The best approach is to have a short and sweet description of each room – the size and key fittings that will be included in the sale – and then any other particular features, like an incredible view, unique architectural detail or tech feature. At this stage, buyers really don’t need to know how many sockets or window locks there are; you’re just trying to get them interested enough to book a viewing, so stay focused on the key selling points.

Floor plans & PDF brochure

Floor plans really help buyers put room sizes into perspective and see whether the layout could work for them. They’re more-or-less standard these days, so make sure your listing has one.

Once you’re happy it’s correct, there are three things to check:

1. There’s a compass rose so buyers can easily see which rooms and areas of the garden face south
2. The total square footage is stated – that helps buyers compare homes to see how much space they’re getting for their money
3. The image opens at a decent size online.

A digital version of your full brochure should also be available as a downloadable PDF that buyers can save and print out. Although the agent may provide a hard copy at the viewing, many people like to check the brochure in advance to see if there are any photos or other information they might have missed – and it’s also useful for them to make notes on.

You’ve grabbed their attention – what next?

If you’ve ticked off everything so far, you should have buyers who are really keen to view. You’re halfway there. Now this is where the personal and professional skills of your agent come into play, to turn enquirers into buyers.

The buyer calls your agent

Some people know for sure that they want to view and they’re just calling to arrange the appointment. Other people have questions, and this is where an enthusiastic agent who’s familiar with your home can really help increase the buyer’s interest and firm up a viewing. So, check with your agent to make sure every member of staff has viewed your home and been briefed on any other relevant information, like whether you’ve found an onward purchase.

Whoever’s handling the enquiry should also qualify the person viewing, checking how they’re going to be funding their purchase and whether they have a home to sell. If you’ve found a new place you’ve fallen in love with and the person who wants to view hasn’t even put their own home on the market yet, there might not be much point booking an appointment. On the other hand, if they’re a cash buyer or they’ve sold and their buyer is desperate to proceed, they could be the perfect fit!

The buyer views your home

We’d suggest it’s always better to let your agent carry out accompanied viewings. Our experience means we know what information to give and how to sell the best features of your home; also, importantly, when the owner’s not there, buyers tend to feel more relaxed and talk more freely. That means we can usually get good feedback there and then and possibly even start negotiations on the spot.

Turning an offer into a sale

When a buyer really loves a home – and if your agent has done their job selling it! – they’ll often make an offer even after just one viewing. Your agent then has to negotiate the best possible price on your behalf, keeping you informed of every offer.

If your online listing is up to scratch and you’ve got your home looking its best, you should have plenty of interest. And if necessary, your agent can use feedback from viewings to make tweaks to your marketing along the way to ensure you’re appealing to as many buyers as possible. (See our recent blog, ‘What to do when your home isn’t selling’ - WHAT TO DO WHEN YOUR HOME ISN'T SELLING - 8 steps to boost your marketing - Blog (sawdyeandharris.co.uk)

Whether you’re already on the market or just thinking of selling, you can call us at any time for advice or to arrange a valuation – we’d love to hear from you! Call on 01364 652652 or email sawdyeandharris@gmail.com, and one of our team will get right back to you.

Some people are landlords because they’ve made a deliberate decision to buy property and rent it out. They’re part of the buy-to-let crowd, who’ve chosen to use property as an investment vehicle to grow their wealth.

However, there’s another group of landlords that more and more people are joining: those who’ve ended up letting property because of circumstance, rather than any pre-planned strategy. These people are known as ‘accidental landlords’.

So, is that you? Have you found yourself with a ‘spare’ property that you don’t want or need to live in? Perhaps you’ve:

• inherited someone else’s property
• moved in with your partner
• temporarily relocated for work
• moved house but not been able to sell your previous home…

Whatever the reason, if you’ve now got a property you want to rent out, it could prove a great investment for you, but there are a number of important things to know and consider before you think about moving a tenant in!

Why do you want to be a landlord?

With any new venture, the first thing is to be clear on your objectives, so take some time to really think about why you want to let this property, rather than sell it, and what you want to get out of it. Ask yourself questions like:

• How long do you want to let it for?
• Do you plan to move back into it yourself at some point?
• Have you got money to invest in getting it ready to rent?
• What are your investment priorities: monthly income or capital growth?
• What kind of tenant would you prefer?
• Do you want to manage it yourself or have an agent look after it for you?

Once you’ve got a fuller picture of what’s involved in being a landlord, you can make more detailed short, medium and long-term plans, but the basic questions above will give you somewhere to start when you’re talking to agents, financial advisers, etc.

Lettings rules and regulations

The next important thing to understand is that there are a huge number of very specific rules around letting property and being a landlord. Some are to do with the property itself, the type of let and the standard of accommodation you’re providing; some are about the rights and responsibilities of landlords and tenants; but there’s a great deal to know and understand to make sure you stay on the right side of the law.

It’s also important that you understand the contract with your tenant. If you’ve never rented a property yourself, you might not be familiar with the terms of a tenancy agreement and what you as the landlord can and can’t do while your tenant’s living in the property. In particular, if you’ve got an emotional attachment to a former home, make sure you’re happy to accept the tenant’s rights because, once you’ve agreed a let, it’s not necessarily a simple process to get the tenant out if you change your mind!

We’d suggest you work with an experienced letting agent, who’s been professionally trained and knows the business inside out, so can give you the best advice on how to ensure you let legally and successfully. We can guide you through what you need to do yourself and also take a lot of the responsibility and administration off your shoulders, saving you time and money.

Call us on 01364 652652 at any time if you’d like some help with your plans, and we can talk though our different letting and management options.

Check the mortgage

If there’s a mortgage on a property that was previously a main home for you or someone else, you need to get in touch with the lender.

In normal circumstances, a property with a standard residential mortgage can’t be rented out – you need to have a specialist buy-to-let product. This is because letting is considered higher risk by lenders than someone living in their own home, and the criteria for lending are different, so you may need to make a new mortgage application.

The exception is if it’s a sudden or temporary change in situation – for example, if your sale fell though at the last minute but you’ve moved on yourself and now need to let your previous home until it sells. In that case, you’ll still need to discuss it with your lender, but they might give you permission to let under your current mortgage, although probably with a higher interest rate applied.

Potential returns

As an accidental landlord, you might not have come across the concept of returns from property, but it’s important to know how to calculate your potential profits and return on investment so you can choose the letting and management strategy that’s going to work best for you.

In simple terms:

• Profit = rental income less costs (e.g. mortgage, maintenance, bills) – and you should calculate this on a monthly and annual basis. For a more ‘complete’ profit figure, you can also take into account any capital growth.
• Return on investment = profit divided by your investment into the property (any deposit you’ve had to put down, refurbishment costs, etc.) – this is expressed as a percentage.

You can do some research into the kind of rents you could charge for different types of lets and put together estimates for how much you’re going to have to spend – both up front and ongoing (see next section). Then use those figures to compare the likely profits and returns for different letting options.

You can also use your figures to compare property with other types of investment, so you can see how well it could work for you!

Your decision on how you let your property and the type of tenant you take will depend on how and when you want to see financial returns, combined with the time, effort and money you’re willing and able to spend on the property.

As a general rule, student lets and other types of HMO (House in Multiple Occupation) take more effort and cost more to run, but the monthly rental profit tends to be high, so they can work well if that’s your priority. On the other hand, letting a whole property to a family or a couple often means relatively low ongoing costs and less administration – the compromise being a lower monthly rental profit. However, you may be able to balance that with better capital growth over time, if you’re happy to wait a bit longer for your gains.

To get a true picture of your net return and profit, you’ll also need to factor inflation and tax into your calculations. The financials can take some time to understand, but once you have a system for tracking how well the property’s doing for you, you’ll be able to see where you can make adjustments over time so it runs even more efficiently and profitably.

It’s worth speaking to an independent financial adviser who’s used to working with landlords and can help you get to grips with the basics. As property tax is a very specialist area, they may also recommend you take separate tax advice.

Refurbishment and maintenance costs

Your initial and ongoing costs will affect how profitable your rental is, so it’s important to have an idea of what they’re likely to be.

The various health and safety rules around letting property mean you’ll almost certainly have to spend some money getting the property legally ready to rent. That could be as simple as installing smoke alarms and carbon monoxide detectors and getting the required gas and electrical checks. However, if you’re thinking about student letting and HMOs, the regulations are tighter, and you’ll have to invest more in things like fire safety measures (fire doors, extinguishers, etc.). You’ll also have to check with your local council about local building regulations and licensing requirements.

If the property hasn’t been refurbished for a while, you might need to invest in upgrading the fittings and décor. The level of finish required will depend on the type of tenant and let – that’s something an agent will be happy to help you with. Then you also need to put together a budget for repairs and maintenance going forward.

In our experience, the better a property is fitted out and presented, the more rent you can usually charge. It’s also more likely you’ll attract a good tenant who looks after the property and stays longer, meaning lower ongoing maintenance costs and regular monthly rental income without void periods. 

While there is a great deal to get to grips with – particularly if you’ve only recently found yourself in the position of being an accidental landlord – the good news is that there are plenty of people who can help, advise and guide you so that you could make a real success of letting.

We’re always happy to chat to accidental landlords, whatever stage you’re at. So, whether you’re still considering letting a property and would like some more advice on your options, or you’re ready to move ahead and just have a few questions about putting your plan into action, you can contact us any time. Call us on 01364 652652 or email sawdyeandharris@gmail.com, and one of the team will be in touch.