Monthly Archives: April 2014

Cardiff Landlords the No Hassle 1200 Per Cent Return Investment

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Cardiff landlords the no hassle 1200 per cent return investment, if you were a landlord and began investing in property in 1996 when the first buy-to-let mortgage was released 18 years ago you would be sitting pretty right now!

The research carried out by Wriglesworth Consultancy and commissioned by Paragon Mortgages uses the following reinvestment assumptions, every £1,000 invested in an average buy-to-let property purchased with a 75 per cent loan-to-value (LTV) mortgage in the final quarter of 1996 would have been worth £13,048 by the final quarter of 2013.

This is a compound annual return of 16.3 per cent. The same investment in UK commercial property would have grown to £3,654; in UK equities (shares) to £3,082; in gilts (UK government bonds) to £2,924; and in cash to £1,949.

Around a third (32 per cent) of the total return to the mortgaged buy-to-let investor was income (rent less costs), and 68 per cent capital gains.

A buy-to-let purchaser buying entirely with cash would have seen each £1,000 invested grow to £4,791 by the end of 2013 – a compound annual return of 9.7 per cent.

The alternative of the investor who remortgaged to release equity to expand his/her portfolio more quickly would have turned £1,000 into an astonishing £33,051.

Future projections for landlords in Cardiff, South Wales and across the UK also look promising with projections suggesting that every £1,000 invested at the end of last year using a 75 per cent LTV mortgage would be worth £2,910 by the end of 2023 – an average annual return of 11.3 per cent.

So how can landlords across Cardiff and South Wales lock in the capital appreciation while removing the risk and hassle associated with buy-to-let investment property? The answer is quite simple, Rent Guarantee Cardiff offer landlords a no fee letting solution that guarantees up to 90% market rent with no void periods. So Rent Guarantee Cardiff remove the risk and tenant hassle from the letting process, so landlords can concentrate on receiving their rent on the same day each month and take advantage of the huge potential for capital appreciation.

If you would like to find out more about of no fee letting solution and how we can remove the risk and hassle from the letting process by providing a guaranteed rental income each month, please complete the short contact form below:

Cardiff Letting Agents with a Difference

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Cardiff letting agents with a difference

Rent Guarantee Cardiff are lettings agents but with a difference. We are run by an experienced portfolio landlord with a mix of property in Cardiff, across South Wales and London. We have a wealth of experience of managing a variety of properties, across several locations and dealing with the full spectrum of tenant demographics including housing benefit, LHA, professional tenants and students.

 How do we differ from other Cardiff Lettings Agents?

Our business model turns the traditional letting agency on its head. First of all we don’t charge any tenant finder’s fees, no monthly management fees or inventory fees. So absolutely no fees for you to pay!

Secondly, we take ALL the risk out of renting property as we guarantee you a set amount of rent on the same day of each month, whether you property is tenanted or not. There is no need to worry about tenants falling into arrears and never have to worry about the headache and the expense of tenant evictions.

To make things simple Rent Guarantee Cardiff offer a fully transparent service taking on board all the bad bits associated with renting a property, so landlords in Cardiff and across South Wales can concentrate on all the good bits of owning a rental property, a guaranteed rental income on the same day each month while sitting back and watching your property investment appreciate.

Rent Guarantee Cardiff unique business model also enables us to offer up to 90% of the open market rent through our guaranteed rental scheme which enable us to provide our landlords on average 20% more rental income than a traditional Cardiff letting Agents.

So if you are a landlord in Cardiff or have investment property elsewhere in South Wales and would like somebody else to deal with the bad bits, so you can concentrate on the good bits, why not get in contact today?

Cardiff Landlords Can Your Tenant Pay the Rent If They Are Made Unemployed?

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Cardiff landlords can your tenant pay the rent if they are made unemployed?

Unfortunately if your tenant is one of the 3.8 million households across the UK then chances are they can only pay their rent or mortgage commitments for a month after losing their job. Research by YouGov has found that almost four million households are just one payday from losing their home. An even more worrying statistic for landlords is the fact that 29 per cent of family’s 2.4 million households would face immediate eviction as they had no savings at all.

How can Cardiff Landlords Protect Themselves?

There are several options for landlords across Cardiff and South Wales to protect their property investment against rent arrears and voids periods. The first option is to purchase Rent Guarantee Insurance (RGI) which requires tenants to undergo and pass an in-depth credit reference and employment reference procedure. As with any insurance policy you must understand the T & C’s and there will be an insurance excess to pay, so landlords must keep money set aside to cover void periods until the Rent Guarantee Insurance (RGI) pays out.

A second option is to speak to a Rent Guarantee provider such as Rent Guarantee Cardiff; we provide landlords in Cardiff and across South Wales complete peace of mind by guaranteeing their rent for a set period of time, ensuring landlords receive their guaranteed rent on the same day each month with no set up costs or management fees. Unlike other rent guarantee providers who offer 70-75% of open market rent as a guarantee, Rent Guarantee Cardiff offer up to 90% open market rent.

Rent Guarantee Cardiff unique business model enables us to guarantee up to 90% open market rent, enabling Cardiff landlords and property investors to achieve a 20% increase of their rental income compared to using a traditional letting agent.  Plus you will never need to worry about evictions and legal costs, we cover that with at no extra cost.

If you are a landlord in Cardiff or other areas of South Wales and would like to discuss how much guaranteed rent we can offer you, please complete the short form below to receive a call from us:

3 Million UK Homes Owned by Part-Time or Accidental Landlords

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3 Million UK homes owned by Part-Time or Accidental Landlords

One of the UK’s largest estate & lettings agents has just released research based on its own database of over 65,000 properties across England, Scotland and Wales. The research has found that 93% of registered landlords own just 1 property, putting this into perspective that’s 81% of all private rental stock in England, Scotland and Wales, somewhere in the region of 3 million UK homes.

Landlords owning just 1 property could be seen as part-time landlords or even accidental landlords and as such may not be fully up to speed with the ever increasing amount of red tape and legislation being forced onto the Private Rented Sector (PRS).

Part time landlords and accidental landlords, just like professional landlords and letting agents are expected to keep up with legislation such as Tenancy Deposit Protection (TDP) and changes to the Benefits System, such as benefit caps and the introduction of Universal Credit. They may even need to gain Landlord Accreditation in selective licensing zones all while holding down a day job!

So the role of the landlord is becoming increasingly more complex, that coupled with caps to housing benefit and record numbers of tenant evictions for rent arrears in 2014, and ever more demanding and time consuming. However, on a positive note rents are rising and so are house prices.

So what if a part time landlord or accidental landlord could remove the red tape, the complex legislation, tenant management, rent arrears, void periods and costly and time consuming eviction process, but still have the good bits of owning and renting property, would that be an attractive option?

Rent Guarantee Cardiff takes all the risk and the bad bits of renting property away from landlords, so they can concentrate on the good bits. Receive their rent on the same day each month knowing they will not experience any rent arrears, void periods or headaches evicting tenants, and still have their cake and eat it, the capital appreciation from house price inflation.

Rent Guarantee Cardiff can offer landlords in Cardiff and across South Wales up to 90% of the open market rent and increase your rental income by at least 20% per annum if they currently let their property through a traditional letting agent.

So if you would like all the bad bits taken away and still get the good bits, why not get in contact today.

Eliminating rent arrears caused by tenants using credit to pay the rent

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Eliminating rent arrears caused by tenants using credit to pay the rent

Research conducted by the Debt Advisory Centre has highlighted an alarming trend of UK adults borrowing money via credit cards and payday loans to pay their rent and mortgages. The survey found that 6.5% of adults have used some sort of credit or loan to pay the rent or their mortgage, what is even more worrying is the fact that this figure has double since August 2013.

The research also delves deeper as suggests that men are twice as likely as women to use credit to meet their rent or mortgage commitments and the figure rises to 10%, one in ten UK adults aged between 18 and 34.

Spokesman for Debt Advisory Centre Ian Williams said: “There is nothing more important than the roof over your head, so to learn that so many people feel they have to rely on credit to pay their mortgage or rent, and that this figure has risen, is extremely troubling.”

With credit card interest rates at around 30 per cent per annum and payday loan lenders charging thousands of per cent per year, it isn’t long before tenants relying on credit to pay their monthly rental commitments are able to pay and fall into arrears.

With the trend of tenants using lines of credit to pay the rent on the increase how can landlords across Cardiff and South Wales eliminate rent arrears?

An easy way is to contact Rent Guarantee Cardiff to discuss how we can guarantee your rental income ensuring the following:

  • You get paid your rent on the same day each month whether the tenant has paid or not
  • You receive your rent on the same day each month whether your property is tenanted or vacant

Rent Guarantee Cardiff is a specialist Cardiff Lettings Agency that provides all the same services as a traditional Lettings Agent but with no set up fees or management fees and we can pay up to 90% of the open market rent.

To discuss how Rent Guarantee Cardiff can offer you up to 90% open market rent and increase your rental income by at least 20% compared to a traditional Cardiff letting agent, complete the form below:

Rent Guarantee for Cardiff Local Housing Allowance & Housing Benefit Tenants

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Rent Guarantee for Cardiff Local Housing Allowance & Housing Benefit Tenants

Most landlords will run a mile at the mention of Local Housing Allowance (LHA) rates and tenants on Housing Benefit (HB) and insurance companies just aren’t happy with the risk of providing rent guarantee insurance to this tenant demographic, but guess what at Rent Guarantee Cardiff we are more happy to provide landlords across Cardiff and South Wales a guaranteed rental income for a period of 3 years or more!

Yes, I will say it again, we will provide landlords across Cardiff and South Wales a guaranteed rental income for 3 or more years, with no set up costs, no managements fees or void periods even if your property is located in a predominately LHA area and only like to attract tenants on Housing Benefit!

This gets better as well! We can provide Cardiff landlords and property investors across South Wales with up to 90% of the open market rent each month on the same day, with no void periods, no council claw backs and no tenant interaction, what a dream!

Could renting your property get any better? We yes it can! On top of guaranteeing your rent for a period of 3 years or more, with no management fees or void periods we can also provide at least a 20% increase on your rental income over the 3 year period compared to a standard letting agent charging 10% management fees and 50% of the first month’s rent as a tenant find service. Take a look for yourself:

TRADITIONAL LETTING AGENT RENT GUARANTEE CARDIFF
Rent Agreed   £650.00 £585.00
– Agency Fee 10% + VAT £78.00 £0.00
– Guaranteed Rent Insurance 1.9% + VAT £14.82 £0.00
Net Rent to Landlord Rent After Monthly Fees £557.18 £585.00
3 Year Period Net Rent x 36 Months £20,058.48 £21,060.00
– Tenant Find & Set Up Fees 50% 1ST Months’ Rent + VAT (Assumes 3 Tenancies) £1,170.00 £0.00
– Typical Void Periods Over 3 Years 2 Months Out Of 36 £1,114.36 £0.00
– Inventory Costs Sign In & Out £150+ VAT (Assumes 3 Tenancies) £540.00 £0.00
Total Rent Received By Landlord Over 3 Years £17,234.12 £21,060.00
Average Monthly Rent Total rent Divided By 36 £478.73 £585.00
   
Extra earned renting with us £3,825.88
Extra Average Monthly Rent Earned With Us £106.27
Increase in rental income using our rent guarantee 22.20%

So let’s recap:

  • Yes, we will guarantee to pay you rent even if you property is in a predominately LHA area and likely to only attract tenants on Housing Benefit
  • You will not have to put your hand in your pocket to pay any set up fees, tenant finder fees or management costs
  • We guarantee you no void periods for the full 3 year term and will even cover any legal fees if we need to evict tenants
  • We guarantee you will have no interaction from the tenant regarding maintenance issues, we take care of that
  • Here’s the good bit again, we can offer up to 90% of the open market rent through our rent guarantee scheme
  • One more thing, we can increase your rental income by at least 20% if you are using a traditional letting agent

So if you are a Cardiff Landlord or South Wales property investor with a property either vacant now or with a tenancy coming up for renewal and the property is a Local Housing Allowance area and only likely to attract Housing Benefit tenants, why not contact us today and make your life a whole lot simpler