Growth Buys Houses

02/01/2025

Jean - The Tech Wizz

02/01/2025

Sam - Marketing Manager

24/12/2024

12/12/2024

Mortgage rates are creeping up

While the cheapest mortgage rates are edging down, the average rate across the whole of the market has been increasing.

28/11/2024

14/06/2022

Tenant Dispute Tuesday

The tenants refused to return the keys to the property until the deposit had been returned to them. The agents advised the tenant the keys must be returned and failure to return the keys by the deadline would result in a locksmith charge of £100 to change the locks.

The key facts are:
✔️ Tenants must allow an agent or landlord time to assess the property once they have vacated to allow a full check out inspection to be completed prior to the deposit being returned.
✔️ The landlord was unable to secure the property without keys, leaving them with no choice but to change the locks.

What did the landlord do right?
✔️ There was a check out inspection, clearly detailing the expectations regarding the property.
✔️ The landlord's agent chased the tenants for the keys and gave clear deadlines before taking further action.

Room for improvement
❗️ The tenants were under the impression a 'no strings attached' return of their deposit would mean the same day return which is unrealistic.

Learning point
💫 Ensure tenants are aware the property requires a full check and all keys to be returned before the deposit can be processed.
💫 If the agent had been clearer regarding the exchange of keys and deposit returns the charge to change the locks could have been avoided.
💫 A written document outlining how a deposit is returned would be good customer service at the pre check out inspection to manage expectations.

Here is the full case study:
https://www.tenancydepositscheme.com/wp-content/uploads/2019/03/Adjudication-Digest-March-2019-–-The-key-argument.pdf


Happy Tenant Happy Landlord Happy Team

13/06/2022

Having accurate information about your property portfolio is very important to make good decisions. Tracking the correct figures and metrics will help you make informed decisions and grow your property portfolio.
With this in mind here are 5 important metrics to track:
1. LTV (Loan To Value) - Knowing your LTV figures will give you an idea of your refinance options. Some lenders have criteria’s restricting the overall LTV of your portfolio.
2. Portfolio Total Equity – Your total equity will impact the amount you can refinance.
Portfolio Total Equity = Estimated Property Value – current mortgage/loan balances.
3. Portfolio Interest Cover Ratio – This figure is used by lenders when deciding on new mortgages. It demonstrates your portfolios resilience to increases in interest rates.
4. Net Cash Flow– Your cash flow once you’ve covered expenses.
5. ROI – Return on investment. The most important indicator of investment success.
ROI = Annual profit (after expenses) divided by the cash you have put into the investment.

Tracking the above metrics is important to keep a clear picture of the health of your investments and allow you to make decisions when opportunity knocks.

If you would benefit from a spreadsheet to help you tack the above metrics send me a message or pop a comment below.

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08/06/2022

Inspections

A brief overview of how to manage inspections.

More in-depth videos to follow.

07/06/2022

Tenant Dispute Tuesday

The landlord claimed the cost of a cancelled locksmith appointment and hotel costs for the next tenant due to the late return of keys.
The tenants offered to pay one days rent.

The key facts are:
✔️ The tenancy agreement outlined the landlords right to claim a promotion of rent if the tenants failed to vacate the property correctly.
✔️ The tenancy also outlined the tenants responsibility to pay for replacement locks in the event keys are not returned.
✔️There was no agreement between the landlord and the tenants detailing how the keys were to be returned.

What did the landlord do right?
✔️ The landlord was able to present a tenancy agreement detailing their entitlement to a claim against the deposit in the event the property is not vacated on time.

Room for improvement
❗️ The landlord would have completed a pre-check out inspection, outlining to the tenants the expectations for the property and the property hand over on the last day.

Learning point
💫 The landlord has not been reasonable expecting such a short void period. The landlord cannot be sure a property is fit for a new incoming tenant the day after a tenant leaves.

Here is the full case study:
https://www.tenancydepositscheme.com/wp-content/uploads/2019/09/Adjudication-Digest-January-2019-–-What-a-difference-a-day-makes.pdf


Happy Tenant Happy Landlord Happy Team