Property Wanted in Butetown, Grangetown & Splott

Cardiff Landlords I urgently need 3 or 4 bedroom properties in Butetown, Grangetown or Splott.  I have several clients looking to rent houses in these areas long term so we can offer you a long term guaranteed rental income!

Our Cardiff rent guarantee scheme takes away the hassle of being a landlord as we manage your property and pay you an agreed rental income on the say day of the month every month whether your property is tenanted or not!

If you have a 3 or 4 bed property in Butetown, Grangetown or Splott areas of Cardiff and would like to continue receiving all the benefits of owning a rental property without having to worry about being paid the rent or dealing with tenants day to day, do get in touch as we can guarantee you receive 90% to 100% open market rent for a period of 3 or more years.

Rent Guarantee for Cardiff Property producing Negative Cash Flow

Rent Guarantee for Cardiff Property producing Negative Cash Flow

Are you a landlord or property investor with a lemon property investment in Cardiff or South Wales? Don’t worry you are not alone!

But first what’s a “lemon” property?

According to investopedia a “lemon” investment is a very disappointing investment. A lemon is an investment in which your expected return wasn’t even close to being achieved, and more than likely ended up losing you some or all of the capital committed. Lemon investments can be associated with poor money management, economic factors, financial fraud or just plain bad luck.

So from a property perspective a “lemon property” is a property that is either in negative equity and/or producing negative cash flow on a monthly or annual basis. As we said if you have a “lemon” property in Cardiff you are not alone, thanks to the over development of Cardiff Bay.

There are literally hundreds of landlords and property investors who bought a “lemon” off plan during the Cardiff Bay property development boom when developers were offering cash back incentives. Now thanks to the huge over supply on new build apartments many of the Cardiff property investors and landlords who bought off plan find themselves with substantial negative equity.

It’s not just homeowners, landlords and investors who purchased property in Cardiff Bay who maybe the proud owner of a “lemon”. As we have already said it is not just negative equity, but also negative cash flow that turns your property investment into a lemon!

Negative Cash Flow

It sounds simple but negative cash flow is when the rent received by a landlord or property investor is less than the total monthly outgoings of the property. Prior to 2007/2008 many property investors and landlords weren’t overly concerned if their “lemon” property was producing negative cash flow as they believed equity growth far outstripped the shortfall caused by negative cash flow, but how times have changed!

Causes of Negative Cash Flow

There are numerous reasons why a property may produce negative cash flow on a monthly or annual basis.

These include:

  • Leasehold management charges
  • Maintenance issues
  • Void periods
  • Rental arrears
  • Drop in Local Housing Allowance (LHA)
  • Benefit caps

Future causes of negative cash flow:

  • Interest rate rises
  • Moving from a fixed rate mortgage to a Standard Variable Rate (SVR)
  • Unable to switch to a better mortgage rate
  • Universal Credit (UC)

Don’t worry if you are a Cardiff home owner, landlord or property investor with a “lemon” as Rent Guarantee Cardiff have a number of solutions that can help immediately if you are in negative equity and/or producing negative cash flow.

For a no obligation consultation and to discuss how Rent Guarantee Cardiff can unburden the load of negative equity and stress of a property that produces negative cash flow, contact us today:

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

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.

Guaranteed Rental Scheme Case Study: Helping with Negative Equity

Our guaranteed rental scheme has benefited a number of Cardiff & South Wales property owners with negative equity.

This case study highlights how a young Cardiff couple with help from our guaranteed rental scheme were able to move up the property ladder while keeping their existing property.

Background

We were contacted by a professional couple in 2011 that had a 2 bedroom house located in the Pontcanna area of Cardiff.  The property was in negative equity, but they had recently inherited money and had agreed the purchase on their forever home at a bargain price.

Their plan was simple, to purchase their dream home at what they perceived a bargain price while rent out their existing home which was in negative equity and wait for house prices to recover to release equity or dispose of the property.

The couple had no experience of being a landlord, finding tenants or property management experience, and coupled with the added financial burden of a second larger mortgage wanted the security of a guaranteed rental scheme, with no void periods or tenant hassle.

The couple had invited several local Cardiff lettings agents to provide a rental appraisal so had a clear understanding of the rental market and the rental income their property could achieve so were pleasantly surprised when we provided them with a competitive guaranteed rental income to be paid on the same day of each month, with no set up costs, tenant finder’s fees or management fees.

 Guaranteed Rental Scheme Process

As the Cardiff property in Pontcanna was on a residential mortgage we advised our client to obtain permission to let as well as advising them to obtain landlords insurance, a Gas Safety Certificate and an Energy Performance Certificate (EPC).

Once all the required documentation was in place a commercial contract for our guaranteed rental scheme was signed by both parties, highlighting any circumstances which may result in a breach of contract by either party, the responsibilities of both parties as well as the amount of guaranteed rent and the date on which it will paid each month.

Once the coupled has a confirmed completion date on their house purchase a date was agreed for when our guaranteed rental scheme would commence.  In the mean time we actively marketed our client’s property on major internet portals such as Rightmove and Zoopla, conducted viewings and fully referenced suitable tenants including credit check, employment references and previous landlord’s references at no cost to our client.

Prior to our client handing over the keys to their house a detailed inventory was carried out including photographs with our client present, to ensure they were 100% happy with the condition of the property at the beginning of the Guaranteed Rental Scheme and also at the end of the process before the property was handed back to them with vacant possession.

The tenant selected was an anaesthetist working on a 2 years secondment at the University Hospital Wales and was provided with a 6 month Assured Shorthold Tenancy (AST) agreement, once again a detailed inventory was conducted, a deposit was taken and logged with The Deposit Protection Service (www.depositprotection.com) and Prescribed Information and Terms of Business of The DPS all served within the required 30 day period therefore insuring both our Guaranteed Rental Scheme and our landlord client is legally compliant.

If you would like to find out more about our Guaranteed Rental Scheme please complete the form below to receive a call from one of the team: