How To Avoid Empty Rental Properties The 7 Major Mistakes Landlords Make “If you’re looking to fill an empty property or want to know how to find tenants this book is for you. Daniel tells you the mistakes that landlords make and how to avoid them. You need not worry about finding tenants again. A must read for any landlord.” Ryan Pinnick – Landlord & Property Investor, Speaker & Mentor – www.ryanpinnick.com Daniel Burgess | www.discountletting.co.uk How To Avoid Empty Rental Properties The 7 Major Mistakes Landlords Make Daniel Burgess Published by www.nabo.biz First published in Great Britain in 2010 by NABO, 39-43 Putney High Street, Putney, London SW15 1SP Tel: 0208 788 9064 info@nabo.biz www.nabo.biz Copyright © 2010 Daniel Burgess, Discount Letting. Daniel Burgess asserts the moral right to be identified as the author of this work. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior permission of the publishers. Edited by Marie-Louise Cook Design and layout by Clever Marketing Systems Ltd, Waterlooville, Hants. Tel: 023 9226 1212 www.clevermarketingsystems.com Printed and bound in Great Britain by PPG Print Ltd. 18-21 Ordnance Court, Ackworth Road, Portsmouth, Hampshire PO3 5RZ Tel: 023 9266 2232 www.ppgprint.co.uk This book is sold subject to the condition that it shall not, by way of trade or otherwise, be lent, resold, hired out or otherwise circulated without the publisher’s prior consent in any form of binding or cover other than that in which it is published and without a similar condition including this condition being imposed upon the subsequent purchaser. British Library Cataloguing in Publication Data. ISBN Contents FOREWORD 5 INTRODUCTION: The 7 Biggest Mistakes Landlords Make... And How To Avoid Them 7 11 CHAPTER 2: How To Pitch Your Property At The Right Price 19 CHAPTER 3: How To Choose The Best Images For Your Advert 25 CHAPTER 4: How To Describe Your Rental Property To Attract Tenants 29 CHAPTER 5: How To Choose The Best Time To Market Your Property 33 CHAPTER 6: How To Choose The Best Contact Method For Potential Tenants 37 CHAPTER 7: How To Present Your Property In A Way To Win Over Tenants 41 -3- CONTENTS CHAPTER 1: How To Choose The Best Place To Advertise Your Property CHAPTER 8: How To Make Things Really Easy... And Avoid Empty Properties For Good 45 READER OFFER 47 Foreword Have you ever had trouble finding tenants? Have you stayed awake all night worrying where the next tenant will come from and who will pay the mortgage on your rental property? In the last five years I have presented for Rich Dad Education, Building Wealth (formerly Whitney UK), Martin Roberts ‘Making Money from Property’, Triumphant Events and other leading investment seminars in the UK. Throughout my experience as a property investor, landlord and entrepreneur I have learnt that the most important part of owning any rental property investment is proactively managing tenants in the property. It is really simple; if you don’t have a tenant occupying your property you won’t get paid and your returns on your investments will be reduced (or worse still, you could make a loss). -5- FOREWORD Well... you’re not alone. Most landlords at some point in their landlord career encounter difficulty when they don’t have a tenant for their property. If you’re like most landlords, when a tenant calls to hand in their notice you start worrying if and when your property will be occupied again. I have been involved in property for five years and during this time I have built a substantial property portfolio and experienced exactly the same concerns you have. My passion for property and building a successful business has meant that I now not only run a successful property portfolio but I also work with landlords and property investors across the UK offering guidance on how to build their portfolio and avoid the most common pitfalls of being a landlord. How To Avoid Empty Rental Properties FOREWORD I am delighted to write a foreword for Daniel’s new book as I have worked with Daniel and successfully used the services of Discount Letting on many occasions. Daniel is an extremely knowledgeable landlord and business owner as evidenced by the excellent business and service that he has created. The Discount Letting tenant finding service is an amazing system that every landlord should be using when looking to proactively manage their property thereby eliminating voids. I have often found more tenants and better quality tenants quicker than so called professional local letting agents using Discount Lettings Services. The information Daniel offers within ‘How To Avoid Empty Rental Properties’ makes you aware of the mistakes that many landlords make time and time again. If you put in place all the tips and guidance found within this book you will not only increase the returns on your property investment but you may even enjoy doing so at the same time. Best wishes, Ryan Pinnick Landlord & Property Investor, Speaker & Mentor www.ryanpinnick.com change@ryanpinnick.com -6- INTRODUCTION The 7 Biggest Mistakes Landlords Make... And How To Avoid Them Are you worried about getting new tenants for your rental property? Do you lie awake at night, wondering why you can’t find the right tenants? Would you like to find a less expensive and more effective way of reaching tenants than advertising in the local weekly newspaper or in your local shop? Finding suitable tenants quickly and minimising the time your property lies vacant is an essential part of making a success of your rental investment. Unfortunately, it’s a part that many landlords get wrong – they make blunders that mean their adverts don’t get seen or they do things that repel prospective tenants with the result their properties are left vacant for weeks, even months. Rather than bringing in profit, their empty rental investment ends up costing them dearly. Instead of extra money, their rental property brings sleepless nights, tension, stress, and additional costs as they struggle to think of ways to meet the mortgage. -7- INTRODUCTION Are you facing hefty mortgage payments for your rental property because you can’t find tenants? How To Avoid Empty Rental Properties If that’s you – if you’re struggling to find tenants for your property - this book will show you where you’re going wrong and how to fix it. By the end of this book, you’ll know exactly where you should be advertising to attract tenants, what to say in your adverts, what images to use to show your property in its best light, the most effective contact method to use with prospective tenants and how to give the best property viewings. INTRODUCTION And if you’re just starting out as a landlord, this book will show you how to avoid making costly blunders to ensure you get off on the right foot. I want you to avoid the mistakes that so many landlords make – so that your property investment fulfils your expectations and helps your bank balance to grow. You’ll find the seven biggest mistakes that many landlords make in this chapter – and in subsequent chapters you’ll find detailed information and tips to help you avoid making those expensive mistakes. But before I tell you what those disastrous mistakes are... I want to explain why I’m qualified to help you turn your rental ‘white elephant’ into the money earner you’d planned it to be. I’m Daniel Burgess, owner of Discount Letting. I started investing in rental property 10 years ago. Like you I had high hopes for my ‘property portfolio’ but before too long I was tearing my hair out, frustrated by the service I was being offered by letting agents. To be totally honest, I got so sick of shoddy service and of being ripped off that I decided to do it myself – I set up my own letting agency to service my properties. -8- The 7 Biggest Mistakes Landlords Make... And How To Avoid Them I thought setting up my own agency would make life easier but I’ve got to admit it was really, really hard work. I had even less time than before. I was running around doing viewings for my own properties and then, as other landlords heard about what I was doing and begged for my help, I was doing viewings for their properties as well. I started thinking there had to be a better, more effective way of doing what I was doing... and that’s when I came up with the idea of Discount Letting – something that took away the most stressful part of being a landlord – finding tenants. We advertise landlords’ properties on the five major UK property websites which attract millions of potential tenants. And that helps our clients avoid one of the biggest mistakes that many landlords make: advertising their rental property in the wrong place. In the 10 years that I’ve been running my personal portfolio of rental properties I’ve never experienced an empty property. Okay, a few tenants have decided to move out just before the end of their tenancy term because of work commitments and a couple of tenants have given me very little notice that they wish to leave but even then, I’ve been able to find tenants for every one of my rental properties and with enough time to complete the necessary administration work. -9- INTRODUCTION My experience has helped me to grow this product into exactly what landlords want – it gives them the choice of managing their own rental properties or of having a professional agency like ours manage it for them - whilst benefiting from the maximum exposure provided by a UK-wide letting agent that advertises their properties on the UK’s largest property portals. How To Avoid Empty Rental Properties Follow my advice and you’ll find a system that works. You’ll realise that being a landlord doesn’t need to be a stressful occupation. So what are the 7 Biggest Mistakes Landlords Make? 1. Advertising rental property in the wrong place 2. Setting the wrong price for the rental property 3. Not using images (or using the wrong images) in rental adverts INTRODUCTION 4. Giving a poor description of the rental property 5. Marketing the property at the wrong time 6. Not allowing prospective tenants to get in contact quickly 7. Presenting the rental property poorly In the following pages, you’ll discover what happens when landlords make those mistakes and most importantly, how you can avoid following in their footsteps! Follow the advice in this book and you’ll be able to attract the tenants you want and make the sort of money you dreamt of when you first invested in property – without stress, without sleepless nights and without massive expense. Daniel Burgess www.DiscountLetting.co.uk - 10 - CHAPTER 1 How To Choose The Best Place To Advertise Your Property There are several ways to advertise a rental property, but the fastest, most efficient way to find tenants is to advertise your property online. It can open up your property to a much larger audience and massively increase interest in it. Print adverts are nowhere near as effective as online advertising. For a start, they’re more expensive. And they’re very slow in comparison with online advertising. If you place an advert in your local weekly newspaper, you might have to wait six days until it appears. If there’s a mistake in your advert – for example, if the contact telephone number is incorrect or the property details are missing – it’s unlikely any prospective tenants will respond. That means you’ve wasted your money on the advert. And you’ll have to wait another week until you can place the correct version of your advert in the newspaper. That time delay could mean you have an empty property. 1. Internet a. When using the vast resource that is the internet to attract new tenants it’s vital that your property can be seen on the - 11 - CHAPTER 1 Online, your property can be viewed by millions of home searchers. Professional websites offer full descriptions without the need for abbreviations. They offer clear images of the property, a map facility offering the exact location, and much more. How To Avoid Empty Rental Properties largest property websites. The top five property websites are: CHAPTER 1 i. Rightmove (www.rightmove.co.uk) ii. FindaProperty (www.findaproperty.com) iii. Primelocation (www.primelocation.com) iv. Zoopla (www.zoopla.co.uk) v. Fish4homes (www.fish4.co.uk/homes/) b. Millions of visitors go to the biggest property websites. But to truly take advantage of the vast opportunities offered by the internet, you must choose the right website to advertise your property. Choose the wrong website and your advert might not be seen by anyone. By making sure your property is positioned on every one of the five property websites listed above you’ll be placing your property in front of millions of home searchers every month and greatly improve your chance of eliminating empty periods. The collective views from each of the mentioned property websites is about 75 million views per month (December 2009). c. Approximately 80% of tenants use the internet as their first port of call when looking for a new rental property, according to Rightmove. This percentage is likely to rise over time so it makes sense to place your rental property in the first place that tenant’s look. d. Rightmove reports that 58 million home searchers visit its website each month (December 2009). Virtually all of them will be looking for property somewhere in the UK. e. When home searchers visit property websites they have the option to complete a search of their desired area and the facility to specify and view the following details: - 12 - How To Choose The Best Place To Advertise Your Property i. Price ii. Property type iii. Furnishing type iv. View Images v. Full property descriptions f. By offering adequate data into a property search facility the potential tenant can search through thousands of rental properties. They can even expand their rental search to show similar properties a couple of miles out of their desired location. This is a valuable feature for tenants who are locating to a new area. It’s also valuable for landlords who want to attract new tenants from further afield. i. Changing the images ii. Changing the description iii. Offering incentives iv. Changing the rental price Being able to change information instantly is a fantastic benefit of internet adverts. The last thing you need when looking to find tenants quickly is that an essential price reduction due to a miscalculation cannot be completed for a couple of weeks or amended with the next print run. 2. To Let Boards a. To Let boards are a cheap form of advertising that work for a localised tenant audience. If your property is located in a remote position or you own an apartment within an apartment block that doesn’t allow To Let boards to be displayed then this is obviously not an option for you. - 13 - CHAPTER 1 g. The speed of the internet enables landlords to keep the property details fresh and up to date by easily carrying out the following tasks: How To Avoid Empty Rental Properties If you do own an apartment always ask the freeholder if you’re allowed to display To Let boards. A freeholder cannot stop you placing a To Let board in your property window but there again, how many people will pass by and notice a window sign? CHAPTER 1 b. If a tenant is prepared to go searching the streets for To Let boards and you’re allowed to display a To Let board then they can be an effective and cheap form of advertising but don’t make the mistake of relying solely on a To Let board to attract tenants. If you want to increase the likelihood of your property being rented, link online advertising with a To Let board. c. If you have a standard To Let board that you can use as and when you like then To Let board advertising is a good tool since it doesn’t cost anything. It’s a no brainer. 3. Local Newspapers a. Tenants rarely search local papers anymore for rental properties. Instead they begin their search on the internet (source: Rightmove.co.uk). Lots of local papers have stopped trading and others just aren’t delivered on a regular basis. Tenants find the internet more convenient to use - they can simply type in the sort of property they want and the search is done for them whereas in local newspapers, they have to spend time reading through the entire property section in the hope of finding something that suits them. b. From your point of view, the information provided in the newspaper can become outdated really quickly. It will take a few days if not weeks for the print advertising to be in the hands of potential tenants. By that time you may have decided that you want to change the rental price - 14 - How To Choose The Best Place To Advertise Your Property of the property or that you want to let the property out unfurnished. But it’s too late: the advert has been printed. What a waste of time and money! c. You’ll also find that newspaper advertising is expensive. (If you can find a free printed advertising service then go for it!) d. Paper advertising is nowhere near as effective as it once was. When newspapers were the main form of advertising for agents and landlords, everyone knew to check the papers for new rental adverts. Today, however, newspapers can’t possibly compete with the power and speed of the internet. 4. Text Message Marketing a. Text message marketing is an excellent service but one that’s really only used by agents. Letting agents (or at least good letting agents) store the contact details of potential tenants that enquire about their rental properties. When a new property becomes available they send a text message to all potential tenants that have enquired about similar properties in the past. Make sure your agent uses this service. b. Potential tenants can request information by texting their interest to the estate agent’s designated text number 24 hours a day, seven days a week. The agent receives the text and an automated system will arrange a viewing or prompt the agent to call within business hours. It’s a very clever and effective system when it’s used properly. If you’re using an agent make sure they use text messaging as a form of marketing. - 15 - CHAPTER 1 e. Local papers only attract local tenants. Tenants from further afield won’t receive a copy of the local paper so won’t get to see the property section. How To Avoid Empty Rental Properties 5. Email Marketing a. As with mobile text marketing, email marketing is an excellent service but one that’s really only used by agents. Agents (or at least good agents) can send an email to every potential tenant that has made an enquiry for similar rental properties in the past. CHAPTER 1 b. Tenants can request information by email 24 hours a day, seven days a week. Agents may have an automated system in place which arranges viewings for them or they may use the email service as a prompt to call the tenant direct to arrange a viewing. Email marketing is a must so make sure your agent is using it. 6. High Street Locations a. High street offices only receive enquiries from passersby or local searchers who are following up the information they’ve spotted on To Let boards. A high street agency is dependent on foot fall traffic. If the foot fall is low then there’s simply no point operating an office there. And that means the days of the high street-based agent are numbered. Many agents won’t want to continue to pay expensive high street rents when they can accomplish the same task in a cheaper office that’s off the beaten track. The problem for landlords is that the more expensive the high street agent’s office, the higher the fees will be. It is important to bear this in mind: those high street offices need to be paid for somehow. 7. Display Advertising In Shop Windows a. You can place adverts for display on notice boards in shop windows, supermarkets, post offices, community centres and any other place where members of a local community gather. It’s a cheap form of advertising that’s worth a try. - 16 - How To Choose The Best Place To Advertise Your Property As a landlord you have nothing to lose by using display adverts but don’t rely on them alone. As with To Let boards and high street locations, only passersby will see the display advert. b. Your advert will probably be one of many offering a range of services so if you’re going to use this medium, create an advert that will stand out. Consider putting the advert on a luminous card. b. Be very careful however about renting your property to a friend or family member. Mixing friendships and family with business is never a good idea; your property portfolio is a business and should be run like one. Only use word of mouth advertising if you’re 100% certain that you can work with family and friends. If you’re unsure about renting to a family member or friend then don’t use it - it could cause problems further down the line. 9. Local Contacts a. If you’re willing to accept housing benefit tenants contact the local council. This is a free form of advertising and will normally result in an immediate tenancy. If this option is of interest to you, start the ball rolling by calling the local council. b. Many large employers offer housing to their employees and are only too happy to pay a local landlord for their - 17 - CHAPTER 1 8. Word Of Mouth a. Word of mouth is the cheapest form of advertising. Tell your landlord associates, friends and family, tenants of other properties you may own, and anyone else you can think of. If you find a tenant via word of mouth you’ll have saved money on advertising. How To Avoid Empty Rental Properties rental property so if your property is in close proximity to large local employers, call them. CHAPTER 1 c. If you’re aware of a current accommodation project running in your area, get in contact with your local council or visit www.shelter.org.uk. 10. Success Tip: Making the most of the internet and online advertising is a must when looking for a new tenant. The key to finding a new tenant and eliminating empty periods now and at anytime in the future is to ensure your property can be seen on the UK’s largest property websites. If you only use one form of advertising make sure it’s online advertising so that your property can be found by millions of home searchers on the biggest property websites. It makes perfect sense to advertise your property where tenants look first. Getting the online advertising right will greatly improve your chances of eliminating empty periods forever. Call 0208 697 0984 or visit www.discountletting.co.uk for further information. - 18 - CHAPTER 2 How To Pitch Your Property At The Right Price Pitch your property at the wrong price and you can be sure you’ll be facing an empty period. Although overpriced properties do attract tenants it takes much longer and costs much more in advertising. Is the increased advertising spend and the threat of empty periods worth the risk when all that is needed is a sensible rental price from day one? Here’s an example of the loss incurred when an overpriced property is put on the market. The market rate for this type of rental property is £180 per week. Scenario 1: Property is let immediately at £180 per calendar week for a full year. A total rent of £9,360 is achieved. [£180 x 52 = £9,360] Scenario 2: The property is offered at £200 per calendar week. After an eight-week search for a tenant the property is let at £200 per calendar week for a full year. - 19 - CHAPTER 2 1. Get The Price Right Pitching your property at the right rental price is an extremely important part of marketing your rental property and should not be based on guesswork. The rental price and the advertising media that is used to advertise the property will either prevent an empty period or attract one. Getting the price and advertising method right are essential. How To Avoid Empty Rental Properties A total rent of £10,400 is achieved. [£200 x52 = £10,400] However because there was an eight-week delay in finding a tenant the rental must be averaged out over 60 weeks [8 weeks without a tenant + 52 weeks agreement. £10,400/60 = £173] CHAPTER 2 1. Research The Internet Before Setting Your Rental Price a. Market research can be carried out by visiting the following websites. i. www.rightmove.co.uk ii. www.findaproperty.com When you use either rightmove.co.uk or findaproperty.com property portals for your rental research, you’ll need to enter the first half of the rental postcode into the search facility. When you’re selecting the rental property criteria to be used within the rental search, keep the information as close as possible to the property detail you’re researching, with the exception of the rental price. To research the market rental prices for your area and property type put in a range of rental values, starting £300 below your anticipated rental price and £300 above your anticipated rental price. b. The search results will give you an indication of similar properties that are available in that particular area of the UK. It’ll give you a guide to the quality of available rental properties, the rental price of similar available and let properties, and the way that other properties are presented. - 20 - How To Pitch Your Property At The Right Price From your research, you’ll get a clear idea of a realistic rental price for a particular type of property located anywhere within the UK. c. To get more in-depth results, expand your area search by between one and three miles. d. If you collate enough data you’ll be able to pitch your property at the right price. This exercise will take you about 15 minutes but will save you hundreds, even thousands, of pounds in unwanted empty periods, as well as untold stress caused by those empty periods. b. Tenants can choose to search rental properties based on a ‘lowest to highest’ scale which will mean that overpriced properties will be found last. c. Because tenants can search through thousands of properties so quickly, those that are overpriced stand out like sore thumbs. Don’t fall into the trap of trying to gain high returns on your rental property at the tenants’ expense. Instead, make your main goal to have a tenanted property. Now that you own the rental property you should be - 21 - CHAPTER 2 2. Don’t Over Price Your Property a. Tenants can search thousands of properties at the click of a button. An overpriced property won’t receive many enquiries and is almost guaranteed to remain empty. Bear this in mind and make sure that your rental property price is pitched correctly. How To Avoid Empty Rental Properties looking to eliminate empty periods and find a suitable tenant quickly. High returns and great rental profits should have been calculated when buying the rental investment in the first place. If you overestimated the rental valuation before you bought the property you may now find that the returns are not so good. 3. Decide On Your Target Audience: DSS Or Professional CHAPTER 2 a. If you only want to attract professional tenants then make sure that in your rental advert you say ‘Professionals only’. b. If you’re happy to accept DSS tenants then make sure you say so within the rental advert. Better still approach the local council and let them know that you wish to take DSS tenants. There are many housing associations that will take on your property and guarantee your rental payments in return for a slightly lower than market rental. Some housing associations pay open market rates. You’ll be expected to sign a five-year deal and the housing association will find the tenant. This is a guaranteed way of eliminating empty properties. Before you take this route, remember to research all your options. c. If you’re happy with professional or DSS tenants then obviously use both options above. Make sure your rental advert indicates that you are happy to accept DSS or professional tenants. - 22 - How To Pitch Your Property At The Right Price 4. Look At A Tenancy Deposit Solution That Suits The Tenant a. Some tenants will have trouble finding the first month’s rent in advance and the six-week deposit payment that are normally required at the start of a tenancy. Some tenants won’t want to part with that sort of money even if they have it. To place your property in a good position in the market, why not try an insurance solution that requires no deposit from the tenant? There are a number of products on the market at the moment that can do just that. Remember: always carry out an advanced credit check on your tenant before signing your tenancy agreement. Most tenants will accept that a reasonable charge is required and will pay it. However, when it’s clear that landlords are trying to make extra money at the start of a tenancy agreement, tenants will move on and find another property. 6. Success Tip: Before setting your rental price make sure you’ve done your research. If you’re advertising your property at the wrong price, it’s likely to remain unoccupied. It could cost you thousands of pounds in mortgage payments. A good property offered at the right price will be snapped up within two weeks. So make sure your property is offered at the right price from day one if you’re looking to eliminate empty periods. Remember, just because you have high mortgage payments doesn’t mean the rental rate should cover them. Tenants - 23 - CHAPTER 2 5. Try Not To Charge Tenants Extortionate Fees a. Tenants are put off by large charges for administration, check-in inventory, etc. How To Avoid Empty Rental Properties CHAPTER 2 will pay the going rental rate but it’s up to the landlord to make sure the rental property is a good investment and that adequate research is completed before purchasing the rental investment. If your mortgage is too high and the rent doesn’t cover the mortgage then you’ve bought or inherited a bad investment. It may be worth selling the property as quickly as possible otherwise you may end up losing the property completely. - 24 - CHAPTER 3 How To Choose The Best Images For Your Advert Photos will rent a property 10 times quicker. 1. Photos will attract a tenant’s attention. Using photos in your rental advert will help you to tenant a property 10 times faster. Ultimately it’s the rental price that attracts tenants but if you’re pitching your property among tens or hundreds of other rental properties at the same price it will be the photos that make the property stand out and attract the tenant’s attention. Unlike sales properties, photos for rental properties don’t need to be taken by a professional photographer. The exception to this is if you’re tenanting a top end property in which case your agent would arrange for the photos to be taken professionally. A good rental property photo can easily be taken by a landlord. 3. When adding photos to your rental advert remember that tenants are most interested in seeing either a good kitchen photo or a good living area photo. This is the complete opposite to sales adverts and many professionals will tell you different. However it’s been proven that good internal photos tenant properties quicker than external photos. Tenants will normally only stay in the property for 12 months, so they’re - 25 - CHAPTER 3 2. The quality of the images you use does make a difference. However that doesn’t mean that each photo has to be an award-winner. As long as the image is clear and has been purposefully taken that’s all that matters. How To Avoid Empty Rental Properties more interested in the interior rather than the exterior. To attract tenants fast you need to appeal to what the tenants want and not what you or an agent think they need. It’s all about the tenants. CHAPTER 3 4. Provide your photos in the following order: a. Good internal photo of the kitchen or living area. b. Good internal photo of the kitchen or living area (opposite to above). c. Good bedroom photos. d. Good exterior photo. e. Views from the property. 5. Use at least three good photos. Not only will this attract tenants to your rental advert but it’ll also prevent time wasters from enquiring about the property when they can see from the photos that it simply doesn’t suit their needs. 6. Don’t go overboard with photos - no more than 10 photos should be shown. 7. It is important to know what images not to show. A photo that seems to have been taken by mistake (photo of a wall, chair etc) should not be offered, even if the purpose is to bulk out the photo section. If it’s not a good photo don’t use it with the rental advert. A point to bear in mind is that if you’re taking a photo of the bathroom, the tenant doesn’t need to see a close-up of the toilet. It’s unnecessary and will put the tenant off. Instead, provide photos that show a complete overview of the bathroom (showing the bath, shower, sink, and toilet). The photo should also incorporate a window if possible and show the decor of the bathroom. - 26 - How To Choose The Best Images For Your Advert 8. Success Tip: When advertising a rental property the very best photo to use as the main image (the first photo that tenants will see) is one of either the kitchen or living area. Rental property adverts work differently to sales properties and need to be displayed in a different way. Most estate agents show an external shot when selling a property. With rental property it’s the reverse. Tenants don’t want to buy the property: they are looking to rent the property for an average period of 12 months. They’re mainly interested in what the inside of the property looks like. That’s why you should appeal to tenants’ top priority by showing a great internal shot first. Forget what you’ve been told in the past and simply provide what your future tenant wants. - 27 - CHAPTER 3 If you’re looking to eliminate empty periods then make sure a good kitchen or living area photo is the very first image that your potential tenants see. This will greatly increase your chance of attracting tenants quickly and eliminate empty periods. CHAPTER 4 How To Describe Your Rental Property To Attract Tenants Get the description basics right and you’ll be well on your way to a life with fully tenanted properties. a. Price b. Location c. Property type d. Number of bedrooms e. Furnishing type f. Condition g. Decor h. Features of kitchen and living area i.Bonus features, e.g. parking, garage, views, swimming pool. j. Glazing type k. Heating type l. External features m.Local facilities, transport links, and venues close to the property n. Contact details - 29 - CHAPTER 4 1. What detail should be offered? Below is a list of the detail that tenants will be interested in when looking at your property advert. [At the viewing stage or sometime before, tenants will also ask about the council tax, utilities and any other additional charges they may be faced with.] Here are the details you must provide in your advertising: How To Avoid Empty Rental Properties Example template (tried and tested layout that works): CHAPTER 4 Price: £775 Per Month A recently decorated 2 bedroom Terraced house located in Smithfield Road, Town Centre, London, LL1 123. This property comes with a garden and garage with parking for 2 cars. Offered part furnished with white goods to the kitchen. The living area is presented in a clean and tidy condition and has been nicely decorated in neutral colours. There is a fitted kitchen with a tiled floor. The kitchen offers access to a 50ft garden. Upstairs there are two good sized bedrooms both offering good storage space and carpets. Bedroom one has been recently decorated in neutral colours and bedroom 2 is offered in good decorative order. Property benefits include double glazing throughout, and gas central heating. External features include a 50ft garden, a garage with parking for one car, and allocated parking for one car on the front driveway. The property location is just 5 minutes walk from all local amenities and local schools. Ideal for transport links into the town centre and motorway network. Professional and DSS tenants considered. To arrange a viewing please call John Smith on 12345678912 or email 1234@1234.com The above description offers 187 words [and 1119 characters including spaces]. The benefit of using online advertising is that you can post an advert this size to a massive audience. When using paper advertising, you’ll be constrained by the extremely limited number of characters that are allowed. Important Note: You’ll be unable to show your contact details within the larger property websites. The contact details that will - 30 - How To Describe Your Rental Property To Attract Tenants be shown will be those of the agent since it is the agent who is promoting your property. To advertise your property on the UK’s largest property websites visit www.discountletting.co.uk or call 0208 697 0984 for further information. 2. How much detail should be offered? a. For some reason landlords up and down the country seem to believe that a rental property description should be really long. This simply isn’t the case. A good rental property description will be between three and four medium-sized paragraphs long and offer good detail. (See Number 1 about what to put in your description the advertising template is tried and tested and always generates a good response.) 3. What is too little detail? a. A rental property description that simply states ‘One bedroom flat, furnished, nice view, and close to town centre’ will not attract any tenants. If this is the very best description that can be offered then the need to find tenants is not high enough on your agenda. Example template that should be avoided: 2-bedroom flat, furnished, London. Offers gch, dg, wm, re, dw. Outside features gr, dr. Call 01234 567 8911 - 31 - CHAPTER 4 b. A future tenant is not going to sift through pages and pages of text describing a rental property. Tenants will read the parts that are of interest to them and skip through everything else. It is for this reason that the text is best split into a few paragraphs and offered with bold subtitles. This will break up the text and make it more visually appealing plus it allows the tenant to pick out the sections they find most interesting. How To Avoid Empty Rental Properties 4. Don’t use lots of abbreviations. a. Not all tenants know what the abbreviations mean. If a tenant is confused about the rental description in the early stages they won’t take time to interpret them – they’ll move onto the next property instead. 5. Success Tip: Remember that you’re trying to attract a new tenant and eliminate an empty period for your property. The example template of a bad rental advert should be avoided at all costs. CHAPTER 4 Take at least half an hour to think about the good features that your property has to offer and write them in the style of the tried and tested template. This template will attract tenants who’re interested in the features you’ve listed. And it’ll discourage those who aren’t interested in the features of your property, thus saving you from potential time-wasters. A well written rental advert offering the appropriate detail will eliminate empty periods when used with the advice contained in other sections of this book. - 32 - CHAPTER 5 How To Choose The Best Time To Market Your Property When should you start marketing your rental property? 1. How early should a rental property be put on the market? a. A good property offered at the right price in the right area will go in one day. If rental property is in demand in your area you’ll have tenants queuing up to request a viewing. In these circumstances you can command a higher rental price and some tenants may even offer over the asking price. b. If you’re unsure of the rental demand in your area I advise you to advertise no later than one month prior to the end of a tenancy term if you’re looking to move in a tenant the day after the previous tenant moves out. c. You can always advertise your property two months prior to the previous tenancy expiring but most tenants don’t tend to look for a new property that far in advance. Most will look for a property four or five weeks before the actual date they wish to move in. 2. When is it too late to market a rental property? a. It’s never too late to market a rental property. If your property is going to become empty, take immediate action. b. Marketing the property less than a week before the - 33 - CHAPTER 5 A new property is most likely to attract an offer in the first two weeks, providing that the rental price is right and the presentation of the property is as it should be. How To Avoid Empty Rental Properties property becomes empty is very risky unless your property is either very cheap or located in a high demand area. Leaving it so close to the date the property becomes empty means you won’t haven’t allowed sufficient time for viewings, credit checks, signing of agreements, an inventory to be conducted, or for check-in. CHAPTER 5 3. What is the busiest time of the year for tenants? a. The busiest time of the year for new tenants looking for property is between March and May. Surprisingly, January is always a busy time too, although that doesn’t last much beyond the second week. The January rush has been attributed to family disputes and couples splitting up over the Christmas period. 4. What are the worst times of the year for attracting tenants? a. The summer holidays can be very slow which can make the search for tenants a painful one. Most tenants are thinking about their holidays, and the last thing on their minds is searching for a new rental property. Tenants who are searching for properties during that time can often negotiate fantastic deals as interest on rental property is low. However this doesn’t help landlords eliminate empty periods. Be aware that the summer months can be slow so either start advertising early or if possible, ask the current tenants if they would like to stay for an additional month or two at a reduced rate. b. The run up to Christmas is always slow. After about the second or third week in December interest peters out. Tenant enquiries pick up again in the period between Christmas and New Year, which is again believed to be - 34 - How To Choose The Best Time To Market Your Property the result of relationship disputes and break-ups during the Christmas holiday. 5. Success Tip: Always allow at least one month’s full advertising of your property. If you do receive a request from a tenant to move in early you can always ask the current tenant if they could move out sooner. Most tenants will be happy to take up your offer but will require a refund on rent paid. If at all possible, try to avoid looking for a new tenant during the lead up to Christmas and over the summer months. These are always slow so avoid them and you’ll have a greater chance of finding a tenant quickly. CHAPTER 5 - 35 - CHAPTER 6 How To Choose The Best Contact Method For Potential Tenants How should potential tenants contact you? 1. What methods of contact should be used? a. When you want to arrange a viewing, the main form of contact between you and the tenant should be by telephone. Any other form of contact may result in the loss of a potential tenant. Emails and texts are fine but they are no substitute for a phone call. When creating a rental advert always check, double check, and triple check the contact number that you have offered. If the contact number offered is incorrect, the advert will not work no matter how good the property is. 2. What methods of contact should not be used? a. Tenants like to talk to someone when arranging a viewing or discussing a property for the first time. Agents use email messages and text services as an initial form of contact but then follow up with a telephone call. Don’t use emails and texts to arrange viewings: take the time to call the tenant and arrange the viewing properly. Whilst speaking to the tenant you can also gauge if you - 37 - CHAPTER 6 If you offer a phone number in a rental advert always make sure that the phone will be answered or, at the very least, that there is an answering service. If you do receive a voicemail message, return the call as soon as possible to ensure a viewing time and date is arranged. How To Avoid Empty Rental Properties actually want them to rent your property. CHAPTER 6 b. Don’t use a box number. Some landlords believe it is a good idea to offer a box number so that they don’t get bombarded with phone calls from prospective tenants. This is crazy! The majority of tenants won’t spare the time to sit and write you a letter to request a viewing – they’ll move on to another property. Making tenants jump through hoops before they’ve even had a chance to see the property is insane. Make things too difficult and time-consuming for prospective tenants and they’ll move on to look at other properties. By making it hard for the tenants to get in touch with the person carrying out the viewings you’re one step closer to that empty period. Remember: the aim is to find tenants. Having potential tenants calling to arrange a viewing is exactly what you want. Offer a number that works and that is monitored at most times of the day. Always make it as easy as possible for the tenant to arrange a viewing. 3. When is the best time to arrange viewings? a. The best viewing time for a property is basically the time that is best for the prospective tenants. Yes, tenants will want to view a property at 6pm, 7pm, 8pm, and even later sometimes. They’ll also want to view the property at the weekend. Most tenants work so this is understandable. On occasions, arranging a viewing late in the evening or at the weekend can be a massive pain especially when you have other commitments. But it’s worth remembering that not having tenants will be more painful – think of all - 38 - How To Choose The Best Contact Method For Potential Tenants the mortgage payments you’ll have to make if your rental property remains empty. Leaving the comfort of your own home a few evenings a week is far less of a pain than thousands of pounds in unpaid mortgages. 4. Should bulk viewings be arranged? a. Bulk viewings are an excellent time-saver for the person carrying out the viewings. One trip to the property and you can carry out multiple viewings at one time. However, put yourself in the tenants’ position. If you turned up to a viewing and found that five other couples were also viewing the property at the same time would you feel comfortable? 5. Who should do the viewings? a. Viewings can be carried out by anyone. Conducting a property viewing is not a hard job – it’s one that almost any person can do. What is important to bear in mind is that you want the tenant to take the property, so simply escorting the potential tenant around the property as quickly as possible may not be good enough to entice the tenant to take the property. If viewings are conducted in a slap dash manner, potential tenants will not take the property. It’s important that the person conducting the viewing really ‘sells’ the property and its features whilst also paying attention to the tenant’s needs. - 39 - CHAPTER 6 If the person conducting the viewing takes one person or one couple around a property on their own they can sell the property and it benefits on a one to one basis which will be much more effective than five couples all traipsing around a property at once. How To Avoid Empty Rental Properties When prospective tenants are shown around by someone who’s enthusiastic about the property and obviously interested in them, they’re more likely to want to rent. That means allowing prospective tenants the time they need to explore the property and ask questions. CHAPTER 6 6. Success Tip: On occasions arranging a viewing late in the evening or at the weekend can be massively inconvenient, especially when you have other commitments. Bear in mind however that the biggest inconvenience for you as a landlord is an empty period that lasts for weeks on end and which could potentially cost you thousands of pounds. So remember the next time that a prospective tenant wants to be shown around your property in the evening or during your weekend that leaving the comfort of your own home is far less of a pain than thousands of pounds in unpaid mortgages. Try to accommodate potential tenants as much as possible when arranging a viewing. A little effort will go a long way to eliminating an empty period. - 40 - CHAPTER 7 How To Present Your Property In A Way To Win Over Tenants Win your future tenants over with the right property presentation. Think of a viewing as job interview: to give an immediate and good first impression, make sure your property looks its best rather than scruffy and dirty. b. If you have the funds and the time a quick splash of paint around a property is a very worthwhile investment. It will give prospective tenants the impression of a clean, tidy and almost new property. Recently decorated properties tenant quicker than properties offered needing attention throughout the new tenant’s tenancy term. If you can afford to give the property a quick decoration and time permits, do it. c. Always use neutral colours. Don’t pick the colour scheme that you like. Tenants will want to see neutral colours. This also applies to carpet and flooring if they are on the redecoration list too. - 41 - CHAPTER 7 1. How to present a property. a. When you show a prospective tenant around your property it’s crucial that it’s clean and tidy. Although they will understand that not all properties are kept in great decorative order all of the time, don’t imagine they have the ability to ‘overlook’ dirt and squalor. Even if the existing tenants are to blame for the mess, it will still reflect badly on you and the property. How To Avoid Empty Rental Properties 2. What should you promote? a. A clean and tidy property allows the prospective tenant to actually see what the property is like. Showing a tenant around a dark, dingy property is a sure way to turn the tenant off. Avoid this by allowing as much light as possible to flood into the rooms - keep the lights on and the curtains open. b. If the property has great views make sure they are pointed out. CHAPTER 7 c. If the property features great storage solutions then make sure they are pointed out. d. Whatever benefits will attract a tenant’s attention and generate interest should be pointed out by the person conducting the viewing. 3. What should be removed? a. Get rid of clutter and mess. The hallway and entrance of a property is the very first area that a tenant will see. They don’t want to have to pick their way over a pile of mail or bikes, bags, kids’ toys, shoes, or coats. If necessary, remove the clutter from the property for the short time that the tenant will view the property. b. Get rid of dirt. There is nothing worse than an untidy kitchen when carrying out a viewing. The potential tenant will want to see that the area where they will be preparing and eating food is in good order. No tenant will want to take over a property that is offered with a serious lack of hygiene. This also applies to the bathroom and toilet facilities. 4. Success Tip: When presenting a rental property to a potential tenant think of it as an interview. That’s an interview with the tenant that is completed by the person conducting the - 42 - How To Present Your Property In A Way To Win Over Tenants viewing, and an interview of the property that is carried out by the tenant. Make sure the property is at the very least clean and tidy. Prospective tenants don’t want to see a cluttered property with the current tenants’ belongings spread everywhere. Make it a priority to show a clean living area and kitchen. Remember that as a landlord you’re running a business and your rental property is your product. The tenant has a right to be choosy so make sure you have a good product. If at all possible a quick lick of paint will greatly enhance a property’s appearance. However this isn’t essential. CHAPTER 7 - 43 - CHAPTER 8 How To Make Things Really Easy... And Avoid Empty Properties For Good In today’s internet age the process in which tenants are found has dramatically changed for the better, as landlords and agents are now able to tap into a fast internet resource when looking for the right tenant. Discount Letting is a UK wide letting agent who offers landlords this service and more. Visit www.discountletting.co.uk to register your property in front of millions of home searchers. Discount Letting offers you, the landlord, a unique £59 Tenant Find Service, which allows you to manage your own rental property whilst benefiting from the maximum exposure provided by a UK-wide letting agent. The Discount Letting Tenant Find Service will place your property in front of millions of potential tenants. - 45 - CHAPTER 8 Gone are the days when tenants walked up and down the high street visiting one rental agency after another. Eighty percent of home searchers now simply go to their computer and visit the larger property websites such as Rightmove.co.uk, Findaproperty.com, Zoopla.co.uk, Primelocation.co.uk, and Fish4.co.uk. At the click of a mouse button, they can search through thousands of rental properties across the UK to find exactly what they want in terms of property and location. How To Avoid Empty Rental Properties Discount Letting also offers a Full Management Service throughout England and Wales and showcases your rental properties on the largest property portals including Rightmove.co.uk, Findaproperty.com, Zoopla.co.uk, Fish4.co.uk, Primelocation.co.uk and others. CHAPTER 8 At present, those five partner sites attract over 75 million views per month, so you can be sure that when you use Discount Letting your property will be placed in front of millions of potential tenants and the chances of your rental property staying vacant are greatly reduced. Whether it’s a Tenant Find Service or a Full Management service you can be sure to find the right rental product at Discount Letting. Simply visit the easy to use website www.discountletting.co.uk and choose the right product for you. - 46 - Dear Reader What would an empty property cost you? Don’t manage an empty property that costs you £100’s; advertise your property to 82.1 million home searchers every month on the UK’s largest property websites from just £59, and find your ideal tenant. And Guess What? Waiting tenants who have registered with Rightmove.co.uk, FindaProperty.com, Primelocation.com and Discount Letting will be sent your property details. My guarantee to you... In 48 hours your rental property will be shown on the UK’s largest property websites viewed by 82.1 million home searchers or your money back. Features of our tenant finding services: • Your property will be advertised to 82.1 million home searchers a month via the largest property websites in the UK including Rightmove, FindaProperty and Primelocation. • An email of your property will be sent to 1000’s of registered tenants looking for a property like yours. • You’ll have access to four credit checks. • Your property will be promoted within a Premium Display box on the Rightmove website. • You can request a rental report that will let you know exactly what price to advertise your property at. • A full rental description (3000 characters) and 10 images will be offered to potential tenants. • Enquiring tenants can request property details or arrange a viewing of your property by; Telephone, Email, and SMS (mobile text). • The arrangement of accompanied viewings* and unaccompanied viewings will be made with all potential tenants who make an enquiry regarding your rental property. • Landlords have access to a weekly report which details the number of enquiries that have been made by potential tenants. • Your property can be updated or refreshed at anytime. • You’ll have access to a Legal Pack worth £69 including; 1. Tenancy Agreement: Flat or house with a non resident landlord. 2. Tenancy Agreement: Flat or house with a resident landlord. 3. Tenancy Agreement: For a room with a non resident landlord. 4.Inventory Form - 47 - READER OFFER Discount Letting is the UK’s leading online letting agent. Providing letting agent services to 6829 landlords across the UK and presenting 23,762 rental properties since November 2004. 5. Notice Requiring Possession Notice 21(1)(B) 6. Notice Requiring Possession Notice 21 (4)(A) 7. Standing Order Mandate 8. Rent Guarantor Form • You’ll be able to download our guide book on how to avoid an empty property in a handy pdf version. Did you know... Jessica Blackwell from Thames Ditton, Surrey, KT7, advertised her property with Discount Letting and found a tenant within 5 days and successfully eliminated a void period. Jessica said... READER CHAPTER OFFER 1 “Thank you for your fantastic service. I was able to let the property within 5 days of the advert appearing and would now be grateful if the property could be removed from the listings. I appreciate having this wonderful alternative to having to go to an agent for their services. It has allowed me to personally vet and meet with potential tenants, which is very important to me. Again, I thank you, Jessica” So if... You’re serious about finding a tenant, Then... Take the next step. • Register your property and select your service option. • See your property on the UK’s largest property websites in 24 hours. Allow tenants looking for a property like yours to receive an email of your property. Find your perfect tenant and make void periods a thing of the past. Jo Ross from Chipping Norton, Oxfordshire, OX7, advertised her property with Discount Letting and successfully eliminated a void period. Jo said... “Please remove the advert from the site as it has now been let. Once again a very efficient and quick service, we have been lucky enough not to have had any voids since we started using Discount Letting!” Remove the fear of an empty property and look forward to a successful landlord future. Best wishes, Daniel Burgess P.S. What’s more, if you register today at www.discountletting.co.uk, I’ll give you a £5 discount on the standard price. Just type in the discount code 0q1garv9 when completing the registration form and we’ll deduct £5 straight away. - 48 - How To Avoid Empty Rental Properties The 7 Major Mistakes Landlords Make Packed with highly practical advice and tips, this book will help you to find the right tenants for your rental property fast. Letting Expert Daniel Burgess reveals how you can avoid the 7 major mistakes most landlords make plus... • • • • • • • • The best place to advertise your property How to pitch your property at the right price The best images for your advert How to describe your rental property to attract tenants The best time to market your property The best contact method for potential tenants How to present your property in a way to win over tenants How to avoid empty properties for good “If you are serious about attracting the very best tenants and avoiding costly voids, then this is the best book for you – I highly recommend you read it.” Nick Lyons, MD, No Letting Go. Award-winning UK-wide inventory company. www.nolettinggo.co.uk “This book will show you the mistakes landlords make when looking for tenants. If you’re looking to fill an empty property you must read this book.” John Parish, MD, Landlord Forum www.landlord-forum.co.uk NABO Accelerating your business success Daniel Burgess I’m Daniel Burgess, founder and Managing Director of the UK’s leading online letting agency. I have run my own property portfolio for over 10 years. My years of experience as a landlord and letting agent have equipped me with the skills and knowledge required to avoid an empty property. In the early days I found that finding a tenant for my rental properties was a daunting task. I made many mistakes and learnt a great deal the hard way. “How To Avoid Empty Rental Properties” tells you how to avoid the mistakes most landlords make and how to find ideal tenants every time.
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