8 Amazing "Urgent" Repairs That are Reported to Clapham Landlords

Naturally as an investor/estate agent/property professional I speak to a lot of people in the trade. I thought I'd share some of the most outrageous repairs we've been called out to - and when I say "repairs" I actually mean a massive non-emergency! Needless to say there were no emergencies and most can be solved with common sense.

So here we go, hopefully you'll find the tales as entertaining as I have!

1. Daniel White, local estate agent recants his tale - "...recently had a tenant kick off because his boiler was not working, I popped around before considering getting a plumber. When I arrived he was angry and was acting if it was my fault his boiler broken down but after 2 minutes minutes investigating, we found his gas pre-paid meter had run out of funds!!!! Apology, of course not.
   
   
   
   
2. Mandy Wilshaw, landlord recants she "had a call out to a property because there was no electric - the whole area had a power cut!"
   
   
   
   
   
   
3. Tradesman - Ally Menzies shared how he is called out to properties and "...the geezer was wondering why every time someone had a shower it rained downstairs!!!"
   
   
   He was kind enough to send in this picture which explains how badly fitted the shower screen was.
   
   
   
   
   
   
   
4. My very own - I was told about a "puddle appearing in the kitchen." When I asked the tenants whether they were a bit lazy with mopping up after they got out of the shower they insisted the floor was bone dry. I inspected, told them it was likely that the water is finding a way down, so mop up. It took them a month to come back to me to say that the issue hadn't gone away. A MONTH! Ultimately it was down to a leaky seal in the shower screen like Ally's example.
   
   
   
   
   
5. Pip Abbott told me about his sensitive tenant: "The blinking light on the smoke alarm in the landing keeps me up all night and I need to sleep!" I asked Pip whether the beeping bothered him in the end and he assures me the tenant took out the battery to stop it from doing that!
   
   
   
   
   
   
6. Rick Player had a less than positive experience letting to someone with a dog:
   "How on earth did the water overflow on to the wall and floor from the shower? Didn't you close the door when you showered?"
   
   
   Tenant "Well, it's difficult to shower the dog with the door closed, so we shower him on the bathroom floor!"
   
   
   To be fair they've done well not flooding the entire house, think of how bad that could have been!
   
   
   
   
7. Nearing the end of the list now - Dylan Stephens told me about his story about the blocked toilet. Every landlord's nightmare of course!
   
   
   Tenant: "The drains are blocked and water keeps running out from under the washing machine and into the basement room."
   
   
   DS: Have you put kitchen towel down the toilet. 
   
   
   Tenant "No"
   
   
   DS: "Why is there 9 inch cardboard tubes in the bathroom under the sign telling you not to put kitchen roll in toilet."
   
   
   Tenant: "We clean bathroom with it."
   
   
   
   
   
   
   
   
   
8. And finally - this has got to be today's winner!
   Jemma Bath  - "I was on my summer holiday when I wake up to a number of calls from a tenant in our Battersea flat asking me to call her back ASAP. So I call and she proceeds to tell me how there's an invasion of spiders and we need to call pest control. So here's me picturing hundreds of spiders coming through the window. I ask her "OK how many are there?" And she said "Well so far there's been three....!"

I hope you've enjoyed a light-hearted article. Do follow me on all the usual social media platforms if you want to stay abreast of the latest property investment news, trends and more. Looking to invest in property and don't know where to start? Start the conversation by email: jeroen@claphampropertyblog.com or join me at the Clapham Property Meet, the go-to networking meeting for new and experienced investors alike.

Where to find the best deals - in Clapham?

A lot of regular readers ask me where I source my property investments from. The truth is I'm something of an expert in finding deals "in plain sight..."

In plain sight? You mean through agents?

Yes, often times the properties that are the most attractive are the ones that have been sitting around for ages. The agent has lost interest, the owner disheartened about achieving the once "very realistic price" the agent pitched the asking price at. So then it's time to get to work...! Rightmove and Zoopla are your friend!

There are many other methods of finding great investments though, and a lot of good systems exist in order to have sellers calling you! Believe it or not there are people out there that make this a business (called sourcing). They could be property investors in their own right, like myself, who don't want to take a particular property because it doesn't fit their strategy (maybe capital gain vs cash flow, who knows) and they sell on the deal to a fellow investor for a fee. Once it's packaged up in a nice little box with a ribbon around it another investor could "buy" the deal from you and you've earned a sourcing/packaging fee.

Can I do this?

So if you are a starting investor and don't have any capital as yet, perhaps too little experience to invest 6 digit sums confidently, you want to be sourcing investment deals for others that are too busy to look around for bargains. Their time is money after all and they'd happily pay a few thousand pounds to bag a bargain. They, after all, do have 6 figure sums sitting there waiting to be invested. If it sits there it's not earning a good return so they'd happily pay you to kick start the returns.

Direct to Vendor?

A lot of the systems are indeed direct to vendor. You market to owners of properties for sale that could represent opportunities for investors. You could leaflet all day if you wanted but there are much cleverer systems than that...

So how do you start?

Well I'd love to give you an overview of how these systems work and help you source better investments. Be it for yourself or whether you want to become a professional sourcer, this event should give you an overview on the systems used by professional property investors to find themselves really good deals.

FREE, just register online!

Just before this month's Clapham Property Meet we're going to hold an interactive talk to discuss these methods (D2V and through agents) of deal sourcing. A talk not to miss if you want to get underway in property investment. If you want to make sure that you get a spot BOOK ON HERE.

We would love for you to stay and join us for the actual Clapham Property Meet also. David Clouter, investor of 30+ years experience will be doing a talk on Property Cycles. How to spot a downturn and make sure you're investing in the right property at the right time! BOOK YOUR TICKET FOR THAT EVENT HERE.

Buy to Let - is it still viable in south London?

An interesting question this week - I had a long standing client phone me and discuss why rents were on the slight decrease throughout his portfolio. It would seem the aftereffects of Brexit, stamp duty changes and many more things are still lingering in the south London rental market - he had to reduce some of his rents by £10pw or so. It's not massive, but a sign of the times still. 

First time buyers

Some may say that renting is less popular now than it was 12 months ago; more tenants are flocking to purchase their own home and stop spending (wasting?) money on rent. Let me tell you that this isn't true. Research suggests that the average age of the first time buyer has stayed fairly stable through the years, as the graph will illustrate. My common sense also tells me that tenants haven't suddenly saved enough for a deposit to go out and buy a property. 

What?So what has caused rents to stagnate? Well firstly we find ourselves in late spring-ish time, which is not quite peak letting time. As you'll know from my previous articles the best time to let your property is in August/September time; a time where students flock to London and the big firms are commencing their graduate programmes (and yes, of course housing is left til the last minute, creating the "gold rush"). This could have a part to play in a low/same rent being achieved on a new let, but we're talking renewals here. My client's tenants must have done a bit of research to ascertain they could get same/similar value elsewhere. They must see value elsewhere, so perhaps still a hangover from last year's new buy to let investors, all quick to offer a competitive price to entice tenants. Hardly professional is it, competing on price?

ImportantOn a new let therefore, it is crucial to differentiate on quality. I have always found it is crucial to dress the property like a show home. The old school of thought is "but they're tenants, they'll wreck it anyway" does not apply anymore (if it ever did!). Quite simply if you provide a quality product you will get better rent and in turn this better rent will more than likely be paid by someone who takes more pride in their home, ensuring that your property and its fixtures and fittings last longer, a win-win. Taylor Wimpey doesn't build show homes because they have nothing better to do, it works! So next time you are letting or selling an empty shell, think again. I have very good links with furniture suppliers and can help you furnish your rental or sales property in order to achieve the maximum price and more crucially achieve a quick transaction; after all, time is money!

Renewals

Alas there is little that you can do if you are finding that your tenants are reluctant to pay a higher price for your product. Perhaps it's time to be honest with yourself - is your property up to scratch? Is it offering the best quality it can? Can you not viably improve it any more? If you answer those questions honestly you will probably predict your rent level for next year...!

My expertise is, as you may already know, in residential buy to let, specifically in South London. Do you own properties that you think need some tweaking in order to get the best out of them? Perhaps you don't own any yet and don't know where to start? I have built entire portfolios for many of my clients and they are very happy with the returns they have been able to achieve. Residential property lettings gives a stable return and as I invest in South London you will know that the capital appreciation is fairly predictable and resilient in tougher economic times. If you are looking to invest or improve your current portfolio touch base via email and see how I can help you today. Email me on jeroen@claphampropertyblog.com and start the conversation.

Refurbishment tour Deptford

With works underway at my latest development in Deptford I've been inundated with requests for faces old and new to have a look around at the project in progress. I'm pleased to report that so far several visits have proven very useful and I was able to answer a lot of practical questions. 

Naturally I would like to offer the same value to my readers who may not have reached out to me in the past, so if you are one of the first 5 people responding to this you can join me and a few others on a group walk-around of my project in progress. 

During the walk-around we will cover:

• How to change a layout effectively without compromising rooms and making them useless
• Keep your exit strategy in mind
• Decor and finishing tips at builders merchant pricing, I'll show you where and how to get the prices and create the wow factor for peanuts. Remember it's got to look expensive without being expensive
• And much more of course

So if you want to tag along then send me a quick line to book a spot. I'm limiting this to the first 5 people, midday on 20th May. If you want to join and can make it then let me know and I'll gladly show you the project. Email me at:jeroen@claphampropertyblog.com And hope to see you soon. If you can't make this date then hopefully I'll see you at the launch day in order to showcase the finished product. 

The start of another project to maximise returns in South London

I did a short walk-through video of my latest purchase over in Deptford, I thought you may want to have a look to see how you could add value to your next rental property.

I will be reconfiguring the layout (much like my other project I'm running at the same time), so turning the property from 4 bedrooms to 5, but retaining a good amount of living/kitchen space. Naturally this will be open-plan, but I would say it's not going to feel cramped, the living space will end up being L-shaped, 5 metres in length by 3 metres. So roughly speaking that's 5x3 for the living area and 3x3 for the kitchen, very generous. In fact I also own a studio flat with similar dimensions just to put that into perspective - that whole flat can fit into the living room of this one! I digress however..

Why?

Well to maximise returns for rental you will have to increase a) the quality of the accommodation and b) you will have to increase the number of bedrooms. I can't very well extend beyond the upstairs unless I want to encroach on the neighbours, so by reconfiguring the space I will add a bedroom where the kitchen is currently. Ideal.

How?

Well you need to ensure that the walls aren't load-bearing of course before you go knocking things out. A structural survey is of paramount importance. Once that's out the way and the surveyor confirmed that none of the walls I wanted to move were load-bearing it was green light for the builders to go and turn my artist's impressions into reality.

Have a look at the video here and see what I'm doing: https://youtu.be/SVEINeRMYo4

Numbers?

You would think that simply buying a property and calling a room a bedroom instead of a kitchen or reception room wouldn't really add value. Well, normally it doesn't. In days gone by this trick has been used by many a landlord, taking a standard, two reception, three bedroom house into a 4 bedroom, 1 reception room house. I think we're all past this now, it may get a few quid extra in rent, but there's no value add (no, not even if you put up a partition wall in the once through lounge). So why is this different? Well, for one, I am totally refurbishing the property. My purchase price reflects the seller's situation. He wanted a quick, cash sale and didn't want to do any work. There were in excess of 10 people living there (of dubious immigration status as well I would guess) and he was looking for essentially a cash buyer. I have a great relationship with a bridging finance firm and the cash was ready within 2 days of request. To get there, however, was some task though as the seller, in his infinite wisdom, had not applied for various packs he needed to sell the leasehold interest, so the purchase took over 3 months. "Cash buyers only need apply..."

So for this 4 bedroom, 1100sqft property I paid a grand total of £305,000, plus stamp duty, costs, building work, etc will take me up to about £368,000 or thereabouts. I am planning to refinance the property and by using other 5 bedroom ex local authority properties as comparables I'd imagine the surveyor will agree with my estimate of £450,000, which is conservative. There are currently others on the market, which are of a lower standard of course (as this will be brand new and have 3 bathrooms) but they are unsold so I cannot consider these, really. A 75% mortgage would lend £337,500, therefore repaying most of my costs.

Summary:

£305 Purchase Price

£14 Stamp

£2.5 legals

£16.5 finance over 6 months

£30 building work and furnishing

£368 total

Refinancing on 75% of £450k (conservative) leaving 360-337=£23k in the property. So it's not No Money Down, but certainly Little Money Left In as they like to call it. Not too bad.

On the rental side increasing from 4 to 5 bedrooms means the rent will jump from £2200pcm to £2800pcm, so a healthy return even after mortgage costs (under £1000pcm). The property will cash flow nearly £2000pcm, or £24k per annum. That means that it will pay back the money I left in (23k) in about 1 year. That's nice.

So that's this project - are you looking to invest in a new buy to let? Or perhaps you are interested in co-investing in some of my projects? Whether you are investing, or yet have to start investing in South London get in touch with me via email if you want to see better returns. These projects are not fictitious, the figures are not plucked out of thin air. With nearly 15 years of South London property market experience I buy wisely for myself and my clients. If you are looking to have a chat in person why not come and join us at the Clapham Property Meet, the go-to social property networking event in Clapham. This month's meet is featuring Mark Barrett who will be giving an advanced talk on taxation - not section 24 and the like, you will know about all that I'm sure. So if you are looking to start/continue/advance your property investment come and join us!