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New Lettings agency aims to minimise void periods in tenancies
28th January 2008
The current cash crunch in the credit market may lead to Colchester landlords having to fork out for higher monthly repayments on expensive buy-to-let mortgages, whilst at the same time facing a lack of tenants and stockpiles of vacant flats.
The alert comes from Richard Jones, manager of Colchester’s newest lettings agency, Lettings Solutions, which opens its doors this week in Colchester town centre. The company’s distinctive orange and grey boards are now going up in the town centre and throughout north Essex.
Richard adds: “One of the biggest challenges, which Lettings Solutions has been set up to address, is to support landlords who have properties in the area, who are misleadingly being told they can achieve monthly rents at up to more than 20 per cent above the market rental levels.
“These unrealistic figures are then not being achieved and so the flats remain empty - a distortion which is resulting in hundreds of empty flats up for rent in the town.
“Our new specialist lettings agency is committed to achieving a tenant for up to five years, if required, for a wide range of properties.
“Lettings solutions offers a range of packages which are designed to minimise voids in tenancies, which are expensive to the landlords and wasteful of valuable accommodation,” explains Richard.
He reveals that a single national website is listing a record 339 flats to let in Colchester this week - an excess which Lettings Solutions, is determined to address.
Lettings Solutions which is launched this week says the huge numbers of buy-to-let landlords buying “off plan” – without seeing the finished building - has led to about one-third of all properties on new developments becoming available to rent at the same time, causing competition for tenants and pressure on achievable rent levels.
Richard adds: “That is a huge amount of flats. Without any doubt Colchester is suffering a glut, particularly two bedroom flats, for rent and the potential tenant has a big choice.
“Either these flats will continue to stand empty or landlords will need to appreciate that it is more important not to have a void in the tenancy.
“It is better to achieve a consistent level of rent rather than these improbably high rental levels which means many flats are currently standing empty.
“Lettings Solutions believe it is crucial therefore to price at a realistic level within the market band.
“We take the view that it is pointless for landlords to hold out for another perhaps £50-a-month, so as to raise another £600 annually, when you may have lost £700-a-month on an empty flat with no tenant and that loss will take a landlord over a year to recoup.”
Lettings Solutions will market a range of properties within an hour of Colchester, offering a comprehensive and detailed marketing package.
Richard Jones, who has over 13 years experience in estate agency up to Senior Manager level and who is himself a landlord, says Lettings Solutions will offer a range of service levels from finding tenants, through to rent collection and a fully managed service.
He adds: “Our strength will be that we are run by a landlord for landlords and we will give honest opinions. We understand the local market and the need for reliable economic rental assessments.
“Our aim is to achieve the highest sustainable level of rent for landlords with a minimum of expensive voids.
“There is still a strong demand but it is very price- sensitive and landlords need support and expertise in carrying out research to make sure they are asking a realistic rent. We are happy to advise prospective buy to let landlords on potential rent levels when they are appraising possible purchases. “
For more information, and to contact Lettings Solutions, call 01206 244750 or email info@lettings-solutions.com
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