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What is an Energy Performance Certificate?

Changes to EPC regulations in 2018 Landlords need to know about.

When it comes to property, do you know what an Energy Performance Certificate is? Even more to the point, do you know why new regulations in 2018 may impact you as a landlord? Well in this video, we’ll tell you why.

Hello, my name is Bevan Mottram, at Kelham Square Estate Agents, trusted in managing property for over 10 years in Sheffield.

What is an EPC? An EPC is an Energy Performance Certificate which gives a rating for your property on a scale of A to G. One for energy and one for carbon dioxide emissions. A, being the most efficient, and G, being the least efficient.

Now, what we’re concerned about, for the purpose of this video, is the energy rating. New regulations from April 2018 may require your rented property to be rated a minimum rating of E. This means if your property falls below that minimum level and is rated an F or a G, further works may be needed to increase that property’s energy efficiency.

Works could include loft insulation, they could include wall or floor insulation, or maybe a mechanical heating appliance such as the boiler actually needs updating. Let’s say, for example, it’s 15 years or older, it may be as simple as just replacing the boiler to get that energy rating up to the required standard. Our clients will have already been notified if their property may require additional works.

Thank you for watching. My name’s Bevan at Kelham Square Estate Agents in Sheffield, and we hope to see you soon. Bye Bye.

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Why invest in property.

Should I invest in property or other methods?

Hello, my name’s Bevan Mottram, owner of Kelham Square Property Management here in Sheffield.  

I think you should think exactly why you want to invest specifically in property.  Maybe you have a particular passion for property or maybe somebody’s just sort of said to you “oh you must invest in property, bricks and mortar, it’s a safe investment etc., etc.”.

Have you considered other investments, for example stocks and shares?  Have you got a pension? Do you want to invest in properties specifically for your pension?

So before you do actually start thinking about investing, just think why property and not any other investment vehicle.  

I really hope this short video was useful and you’ve picked up some small nuggets of information that will help you along your property investment journey.  If you decide that you want to pass over the management of that residential property to a qualified person or specialist, then please feel free to give us a call to chat over your needs and requirements.  

You can contact us 24 hours a day here on our website www.kelhamsquare.co.uk .  You’ll also find general information for landlords and for tenants, and you’ll also be able to browse our current properties to let.

Once again, thank you again for watching and good luck with your investments.  

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What are the benefits of property investing?

Benefits that may be associated with property investment.

Hi, my name is Bevan Mottram, owner of Kelham Square Property Management here in Sheffield.

Okay, so the benefits of investing in property, pre-2008 historical figures gave us or kind of said that every seven to ten years property doubled in value. Now do bear in mind that was pre-2008, it’s certainly not been the case in more recent years, so you have to consider property investing as a long term medium. I’d say at least five years to ten years.

Your return on investment can be good. Your yield on the property, if for example you’re looking to invest in Sheffield, should be anywhere between six percent and twelve percent, depending on property type.This is better than many current accounts or many savings account.

The other benefit of investing in property is that you are in control. It’s a physical bricks and mortar investment, so you’re responsible for the maintenance of the property, your obligations as a landlord and it can be a benefit for some that there’s no actual fund manager involved other than maybe a block management company or indeed, your letting agent. As an actual investment to yourself, you are in full control.

I really hope this short video was useful and you’ve picked up some small nuggets of information that will help you along your property investment journey. If you decide that you want to pass over the management of that residential property to a qualified person or specialist, then please feel free to give us a call to chat over your needs and requirements. You can contact us 24 hours a day on this website kelhamsquare.co.uk. On here you’ll also find general information for landlords and for tenants and you’ll also be able to browse our current properties to let. Once again, thank you for watching and good luck with your investments!

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Risks of property investment.

What are the risks involved in property investment?

Hello, my name’s Bevan Mottram, owner of Kelham Square Property Management here in Sheffield.

What are the risks involved in property investing? It’s 2017, and tax and stamp duty for example, they’re on the rise this year for landlords. My advice would be before you even consider buying your first property, speak to an accountant, or someone qualified to give you specific financial investment advice. Everybody’s situation is different. For example, you might be self-employed. You might own a business and employ other people, or you might be employed. Everybody’s tax position is different, so again, before you make any investment choices, speak to your accountant or person qualified to give you that financial advice.

Interest rates currently are at an all time low. The Bank of England base rate, for example, February 2017 is a quarter point, so 0.25%, which is an all time low, but with other considerations to think about, such as Brexit, what does that mean? What does that mean for the interest rate? What happens if you make an investment today and then the interest rate shoots up overnight, which can happen? It may go from a quarter point, and it might shoot up to 3%, 4%. You need to factor in the interest rate.

Of the risk associated with property investing are the more well known. Your first one is arrears. What if, for example, the tenant stops paying you rent? Again, for whatever reason, the tenant may lose a job. They may become ill. Many factors why the tenant may stop paying you rent, but if they do, what do you do? If, for example, you’re in week six now, and the tenant still owes you rent, and you’ve not taken action as yet, things could get a little tricky, so you really need to be aware of rental arrears and how to deal with them.

Damages can be expensive, which is why it’s important to get a good tenant in the first place. Again, it is a risk involved in investing, for example, a broken lock, a broken door, broken glazing can all be expensive, and if you factor this in over the year on top of other financial considerations such as block management charges, letting agent fees, there are a whole host of fees to consider during that time of that investment.

Void periods, another thing to consider. Void periods are the amount of time your property isn’t paying you rent. Let’s say, for example, a tenant leaves. Everything is fine, that property goes back on the market. It may be that it does take a while for that property to let. It could be four weeks, it could be six weeks. It’s quite common, for example, a client to come to us with a property to manage and their rental income is, say, 475 pounds per month, but your actual mortgage payment on a monthly basis is 450. There’s a very small profit involved sometimes in property investment. Can you afford to be six weeks short of rent?

I really hope this short video was useful, and you’ve picked up some small nuggets of information that’ll help you along your property investment journey. If you decide that you want to pass over the management of that residential property to a qualified person or specialist, then please feel free to give us a call to chat over your needs and requirements. You can contact us 24 hours a day on this website, kelhamsquare.co.uk. On here, you’ll also find general information for landlords and for tenants, and you’ll also be able to browse our current properties to let. Once again, thank you for watching, and good luck with your investments.

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Due Diligence Property Investing

What is due diligence and how do I use it?

My name is Bevan Mottram, owner of Kelham Square Property Management, here in Sheffield.

Okay. When it comes to the more enjoyable aspects of property investing, it’s important to be aware of a term known as due diligence. You often talk about investors paying due diligence, so this basically means your ability to research. Research, research, and research some more.

There are property investment clubs. There are so-called gurus, buy to let gurus that take your money and then give you advice. Be wary of these types of people and courses, and again, pay your due diligence on these guys. Just Google them. Have a look at reviews, for example, on property investment clubs, property investment gurus. It is, after all, it’s your investment. It’s a journey if you like, and it may be a learning curve for some, so enjoy the process. Take your time and learn as much as you can before you actually start investing in property.

Okay. Budget. How much have you got to spend on a property? It’s important to have a budget in mind for one specific reason. Budget will dictate an area. It will dictate a property type that you need to be looking at.

Okay. What area are you going to invest in? For example, Sheffield. Sheffield is the … I think it’s the fifth biggest city in the UK, so each large cities have micro-markets within them. What I mean by that is, say for example, you highlight, or you choose one area to invest in. That one area could have, for example, two streets 100 metres apart, one street’s a definite yeah, it’s a good investment. The other street is not so good an investment. Again, paying your due diligence is very important.

Talk to local people. Talk to the neighbours. Talk to the local shop owner. Talk to the local postman. These are all sources of really good information that you’ll not really find out about the area. Is it near other amenities which make a good investment? Good local schools, tram routes, bus routes, parking. Parking’s a major consideration.

I really hope this short video was useful, and you’ve picked up some small nuggets of information that’ll help you along your property investment journey. If you decide that you want to pass over the management of that residential property to a qualified person or specialist, then please feel free to give us a call to chat over your needs and requirements. You can contact us 24 hours a day on our website kelhamsquare.co.uk. On here, you’ll also find general information for landlords and for tenants, and you’ll also be able to browse our current properties to let. Once again, thank you for watching, and good luck with your investments.

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Letting agents fees Sheffield

What do letting agents charge?

Are you thinking about letting your property out for the first time or are you wondering what letting agents charge for their services? Well, maybe this short video will answer a few of your questions.

Hello, my name is Bevan Mottram, owner at Kelham Square, and we’ve been managing property in Sheffield for over 10 years.

The first question we get asked by prospective landlords is: How much do you charge? Well, that all depends on what level of service that you actually require. Typically, letting agents in Sheffield and across the UK offer three main levels of service, the first one being fully managed, the second one being tenant find only, and the third one being a rent collection.

So what exactly does each service mean? Well, the fully managed service deals with the whole process from marketing the property, finding a tenant, making sure your property is legally coherent, day to day maintenance and regular inspections all done for you.

The tenant find only service, maybe you’re an experienced landlord and/or you have a little bit more time on your hands. This service would market the property and find you a good tenant, then leaving you to deal with the day to day management of that tenancy.

The rent collection service: exactly what it says on the tin, really. Collection of rent on a regular basis, chasing any arrears, and again, then leaving you to manage the property on a regular basis.

So, what do these services cost?

Typically, for a managed service you’re looking at 10% of the monthly rent collected, plus a setup fee to cover administration and marketing costs. For the tenant find only, typically 400 to 500 pounds, and for the rent collection, again, typically around 5% of the monthly rent collected. Obviously, the prices quoted may be subject to be VAT.

If you’d like to discuss your requirements further or you have any other questions whatsoever, please feel free to visit our website www.kelhamsquare.co.uk.

Thank you for watching. It’d be great to speak to you soon. Bye bye for now.