Tag Archives: South Wales

Rent Guarantee for Cardiff Property producing Negative Cash Flow

Posted on by
Reply

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:

Bank of England has no intention of dampening UK property market

Posted on by
Reply

Bank of England has no intention of dampening UK property market

Some good news for landlords and property investors and those house holds trapped in negative equity, but not so good news for those looking to get their foot on the first rung of the property ladder as The Bank of England has appeared to rule out intervention to cool the UK’s housing market and escalating signs of inflation nationwide, saying policy was ‘not the right tool’.

Speaking at the launch of the Bank of England’s Inflation Report, BoE governor Mark Carney said the Bank’s financial policy committee would monitor affordability and debt overhangs, however.

Despite annual house price growth breaking into double digits for the first time in four years this month, with the Nationwide index up 10.9%, the Inflation Report downplayed inflationary pressure.

‘Activity in the housing market picked up by less than expected at the time of the February Report,’ it said with mortgage approvals averaging 70,000 a month, 10,000 below forecast.

‘Approvals are likely to rise over the rest of the year but to a lower level than expected three months ago. A growing share of recent mortgage contracts has been attributable to borrowers with loan to value ratios above 90%, though this proportion remains below pre-crisis levels.

‘New lending at high loan to income ratios has surpassed pre-crisis levels, particularly for high-value properties, including those in London. With growth in the stock of lending remaining subdued, however, the debt to income ratio of households in aggregate has continued to edge lower.’

It added that the current historic low in interest rates mean that repayment requirements remained a relatively low percentage of household income.

The report toned down recent warnings by the BoE’s deputy governor for financial stability Jon Cunliffe who said it would be ‘dangerous to ignore’ the momentum of house prices.

That followed testimony by BoE officials Spencer Dale and Andrew Haldane to Parliament in which they cited the housing market as a source of risk for the UK economy.

If you are a landlord with investment property in Cardiff or South Wales and like to continue receiving the benefits of house price inflation but do not like the hassle of managing tenants then Rent Guarantee Cardiff may have the ideal solution.

Rent Guarantee Cardiff offer a no fee letting solution in Cardiff and across South Wales. Our unique guaranteed rental scheme offers landlords complete piece of mind as they received their rent on the same day each month with no void periods and none of the hassle associated with managing a tenancy and a buy to let property.

Rent Guarantee Cardiff are often able to offer up to 90% of the open market rent increasing rental income by at least 20% when using a traditional letting agent.

If you would like to find out more information about Rent Guarantee Cardiff no fee letting solution, please complete the short form below to receive a call from one of our team.

Cardiff Landlords Does Your Tenant Pay The Rent on Time?

Posted on by
Reply

Cardiff landlords does your tenant pay the rent on time?

As landlords and property managers we all know how infuriating it is when your tenant doesn’t pay the rent on time. The time consuming process begins: making phone calls, sending texts and emails which often go unanswered. The longer the calls, texts and emails go unanswered as landlords we become anxious and begin to doubt whether the tenant going to pay?

 What is the solution?

If you are a landlord with an investment property in Cardiff or other areas of South Wales, we can guarantee your rent is paid on the same day every month as we become your tenant. No more wasting time on the phone calling, texting or emailing your tenant chasing the rent. No more anxious waits and sleepless nights wondering if your rent is going to be paid.

At Rent Guarantee Cardiff we ensure you are paid on the same day every month with no void periods and no tenant hassle and best of all absolutely no set up fees or management fees!

Using Rent Guarantee Cardiff we guarantee to increase your rental income by at least 20% if you currently use a Cardiff letting agent to manage your buy to let investment property.

If you would like to discuss how Rent Guarantee Cardiff can provide a guaranteed rental income and ensure you never have to chase a late payment again, please complete the short contact form below:

Cardiff Landlords the No Hassle 1200 Per Cent Return Investment

Posted on by
Reply

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

Posted on by
Reply

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?

Posted on by
Reply

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

Posted on by
Reply

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

Posted on by
Reply

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

Posted on by
Reply

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

Are You Prepared For Your Next Void Period?

Posted on by
Reply

Are you prepared for your next void period? A study by the National Landlords Association is found that a staggering 90% of private landlords say they haven’t factored in the financial impacts of void periods when letting their property.

Of the private landlords surveyed when questioned how they propose to cover the cost of a rental void 19% responded by using their day job earnings, 17% when questioned would use existing savings and a 16% said they would just accept the fact their property was not let.

34% of landlords who responded to the NLA survey said they had experienced a void period in the last 12 months.

According to the NLA, the findings suggest that a significant number of landlords may not have a business plan in place when they start letting.

“It’s imperative that prospective landlords don’t underestimate what they’re getting into,” said Carolyn Uphill, chairman of the NLA.

“We’ve always said that being a landlord is a business and to run it successfully means you have to plan for the future to make sure you avoid the pitfalls such as voids.

“We recommend budgeting for 10 months’ rent in any 12-month period to allow for missed rental payments and voids. It’s also essential that landlords carry out checks on potential tenants to minimise their risk of non-payment.”

At Rent Guarantee Cardiff we provide private landlords with an alternative solution , our guaranteed rental scheme is the perfect way to eliminate the void periods, while ensuring your property is managed by a professional Welsh accredited landlord.

If you have a property in Cardiff or across South Wales and would like to find out how you can eliminate void periods while not incurring any agents and management fees, please complete the short contact form below: