Sell your flat or apartment by spending a little bit of money on key areas. Ten improvements are listed below. Clearly some are more expensive than others. Do not do them all. Obtain blunt feedback from your estate agent from viewings he has arranged. Do not take it personally if he says your kitchen stinks or your blood red living room walls are offensive. Only complete those works that are deemed to be problems or disliked by prospective purchasers. The key point to remember here is the prospective purchasers will only visit your flat once or twice for a viewing. First appearances matter. They are more likely to be put off by a "personalised" or dirty property than a boring clean blank canvass.
1) Fit new kitchen worktops and/or cupboard doors. People genuinely buy a property on the cosmetic appearance of the kitchen! I know it is hard to believe but if the kitchen looks good it will sell.
2) Repaint bathroom walls clean or cover dirty fixtures and re-grout tiles. Dirty old bathrooms are a turn off. Clean or replace that old stained sink, toilet bowl and re-grout or replace tiles and the bathroom is sorted.
3) Plaster or paper over cracks. Where structural repairs and too expensive cover them up long enough to sell. Do not lie however about problems if asked. It is not illegal however to be economical with the truth.
4) Add shower to separate WC room. Nice bonus that sets your apartment above the rest of the market. Make sure you put in sufficient ventilation.
5) Replace carpet with modern wooden or laminate flooring. Sticky, dirty, pet hair ridden carpets are not an added bonus. Prospective purchasers love clean wooden flooring. This is not cheap but a major winner.
6) Replace plastic sockets and light switches with modern brushed metal finished ones. Simple touch that make your apartment seem expensive.
7) Replace/repair damaged or ill fitting doors. Buy cheap doors apply a lick of paint. A door that does not close properly or has a fist hole in it does not leave a good impression. Spend £100 and remove a negative image a prospective purchaser may otherwise have had.
8) Remove unfashionable ceiling hung lights. Replace with a modern fitting. If you are unsure what is fashionable ask someone "is this trendy" if the answer is no then get rid of it.
9) Refurbish wooden window frames by sanding down and painting.Show the view through your best window. Put a table in front of problem windows.
10) Repaint in neutral colors. Front door is the most important and should be to first to be repainted if necessary. Ceilings should always be painted with a white Matt paint to give the impression of space.
Wednesday, August 15, 2007
Monday, August 13, 2007
UK- Landlords How To Collect Rent On Time (2/10)
At least 21 days before the rent is due send out an invoice to the tenant.
The invoice should clearly state the following;
1) The total rent due and show the split on the invoice between the Net,Tax and Gross.
2) The due date.
3) Tax registration number should be on the invoice (if applicable).
4) The billing name should be exactly the same as the name of the tenant on the lease or as varied by associated documentation.
5) The dates the invoice relate to (i.e Rent due for period 25.12.2006-24.03.2007). The billing address should be the address where the tenant wants it to be sent (unless the lease states otherwise). Speak to the principal and establish this in advance of raising the invoice. Tenants can want the invoice sent to a third pary not limited to one of the following, Managing Agent, Accountant, Head office, Leased premises,Home address, PO BOX. This is not a problem as long as they confirm change of address in writing and as long as the invoice is billed to the name of the tenant on the lease c/o XYZ Managing Agent,ABC Town,FR8 2FC.
6) "Issued by" details which show the billing entity and explaining (where applicable) the relationship to the landlord or stating that the invoice was raised by the landlord.
7) Unique Invoice number.
8) Where to send payment.
9) How to pay (by Cheque, BACS, TT).
10) Remittance advice or tenant reference code should be enclosed so that the tenant can send this with his payment so that you can ensure that when the money is received by you you are able to allocate to the correct tenant account.
Getting one of the above wrong can cost you in numerous ways and will likely result in a delay meaning you not getting paid on time.
14 days before the due date make a courtesy phone call to your tenant and confirm with them that they have received the invoice. Confirm with them that the invoice is in the payment run and that they anticipate no problems paying the rent by the due date. Make a detailed file note of what date and time you called and the full name of who you spoke to, their position, along with their telephone number and office location. Now is the time to eliminate now any potential payment delay at the tenants end. This is proactive management of your property Investment.
The invoice should clearly state the following;
1) The total rent due and show the split on the invoice between the Net,Tax and Gross.
2) The due date.
3) Tax registration number should be on the invoice (if applicable).
4) The billing name should be exactly the same as the name of the tenant on the lease or as varied by associated documentation.
5) The dates the invoice relate to (i.e Rent due for period 25.12.2006-24.03.2007). The billing address should be the address where the tenant wants it to be sent (unless the lease states otherwise). Speak to the principal and establish this in advance of raising the invoice. Tenants can want the invoice sent to a third pary not limited to one of the following, Managing Agent, Accountant, Head office, Leased premises,Home address, PO BOX. This is not a problem as long as they confirm change of address in writing and as long as the invoice is billed to the name of the tenant on the lease c/o XYZ Managing Agent,ABC Town,FR8 2FC.
6) "Issued by" details which show the billing entity and explaining (where applicable) the relationship to the landlord or stating that the invoice was raised by the landlord.
7) Unique Invoice number.
8) Where to send payment.
9) How to pay (by Cheque, BACS, TT).
10) Remittance advice or tenant reference code should be enclosed so that the tenant can send this with his payment so that you can ensure that when the money is received by you you are able to allocate to the correct tenant account.
Getting one of the above wrong can cost you in numerous ways and will likely result in a delay meaning you not getting paid on time.
14 days before the due date make a courtesy phone call to your tenant and confirm with them that they have received the invoice. Confirm with them that the invoice is in the payment run and that they anticipate no problems paying the rent by the due date. Make a detailed file note of what date and time you called and the full name of who you spoke to, their position, along with their telephone number and office location. Now is the time to eliminate now any potential payment delay at the tenants end. This is proactive management of your property Investment.
Sunday, August 12, 2007
UK Landlords-How To Collect Rent On Time (1/10)
Whether you own Residential or Commercial property it does not matter. Getting the rent on time from your tenant(s) is the most important aspect of property investment management. This is the first post of ten (1/10) on this crucial subject.
It all starts in the drafting of a lease. Use a property lawyer. Do not use a template bought in a book store for £5. Do not re-write an old lease. Spend the extra money on a property lawyer.
Ensure any lease that you grant spells out clearly when the rent is due, how it is to be paid and what the penalties are for late and non payment. In a commercial lease in the the rents are normally due in advance on the usual english quarter days (25 March, 24 June, 29 September and 25 December) although there is currently pressure from various tenant groups on landlords to accept monthly in advance payments. Residential tenants usually pay monthly under the terms of their lease, ensure that the date is written into the lease.
Get your lawyer to draft a clause in the lease which requires your tenant to set up a Direct Debit facility to pay you. This prevents missing cheques and a whole host of other tenant excuses for not paying on time. Do you really want your tenant turning up to your office with a bag full of cash at 5pm or even worse a bag full of coins!
Set a high level of penalty interest (LPI) for late payment, 4% above base is fine. If during lease negotiations the prospective tenant questions this level of penalty interest proposed in the lease ask them if they intend paying the rent late every time it is due! If the answer is yes then you may want to consider whether you want them as a tenant or whether they will likely end up costing you money in bad debt write offs.
The lease should state that the "rent is to be paid on the due date whether formally demanded or not" and detail your remedies for non payment. These include (among many other things) on a commercial property, forfeiture and distress.
Get a rent deposit for residential tenants and possibly a third party to guarantee the lease.
Enforce the agreed lease terms from day one. Be consistent, hard but fair. Remember that the lease is a contract, the terms of which are freely entered into by both parties. Your tenant has signed this contract to say he/she agrees to pay the rent on the dates specified within the lease. Leave your emotions at home and remember this is business. Your rent collection performance has a direct influence on the success of your investment and your collection statistics are a direct reflection on how well you are managing your property investment.
It all starts in the drafting of a lease. Use a property lawyer. Do not use a template bought in a book store for £5. Do not re-write an old lease. Spend the extra money on a property lawyer.
Ensure any lease that you grant spells out clearly when the rent is due, how it is to be paid and what the penalties are for late and non payment. In a commercial lease in the the rents are normally due in advance on the usual english quarter days (25 March, 24 June, 29 September and 25 December) although there is currently pressure from various tenant groups on landlords to accept monthly in advance payments. Residential tenants usually pay monthly under the terms of their lease, ensure that the date is written into the lease.
Get your lawyer to draft a clause in the lease which requires your tenant to set up a Direct Debit facility to pay you. This prevents missing cheques and a whole host of other tenant excuses for not paying on time. Do you really want your tenant turning up to your office with a bag full of cash at 5pm or even worse a bag full of coins!
Set a high level of penalty interest (LPI) for late payment, 4% above base is fine. If during lease negotiations the prospective tenant questions this level of penalty interest proposed in the lease ask them if they intend paying the rent late every time it is due! If the answer is yes then you may want to consider whether you want them as a tenant or whether they will likely end up costing you money in bad debt write offs.
The lease should state that the "rent is to be paid on the due date whether formally demanded or not" and detail your remedies for non payment. These include (among many other things) on a commercial property, forfeiture and distress.
Get a rent deposit for residential tenants and possibly a third party to guarantee the lease.
Enforce the agreed lease terms from day one. Be consistent, hard but fair. Remember that the lease is a contract, the terms of which are freely entered into by both parties. Your tenant has signed this contract to say he/she agrees to pay the rent on the dates specified within the lease. Leave your emotions at home and remember this is business. Your rent collection performance has a direct influence on the success of your investment and your collection statistics are a direct reflection on how well you are managing your property investment.
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