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Benefitting from Opportunities Created by a Changing
Environment: An introduction to rental schemes for landlords
that challenge traditional approaches
Ciaran O’Shea
Group Head of New Business
Who is Orchard & Shipman?
• National Providers of Housing and Property
Management Services to both public and private
sectors
• Provide a full range of Residential Sales & Lettings
services (through the Campsie brand)
• Commercial Agency & Property Consultancy Services
(with a team of qualified RICS surveyors)
Orchard & Shipman plc:
Some of our Clients
Orchard & Shipman plc:
Nationally Recognised
Our Journey
1988 - West Drayton - Estate Agency
1996 - Staines - Estate Agency
1999 - Slough - Estate Agency
2002 - Hillingdon - PSL
2005 - Edinburgh PSL and Acquisition of Campsie Lettings
2007 - Midlothian, East Lothian & Scottish Borders - PSL
2009 - Southwark – PSL and Edinburgh - Lettings & Advice
2010 - Brighton & Hove – PSL
South Gloucestershire - Housing Advice
BAA - Portfolio Management
2011 – Bromley – PSL
Enhanced Edinburgh Letfirst
What you will get out of this presentation
• Information on changes within the current
economic environment that affect the lettings
market
• Understanding how you can identify and
manage risk whilst maximising the return on
your investment
The Changing Environment
• Buy-to-Let market; increasing demand on limited funding
• First time buyer mortgage applications; deposit constraints
• Demand for rental properties increased; especially in London and
the South East
• Cuts from government to overall spending including welfare and
benefits; affects entire PRS
• Sustained unemployment figures and potential for double dip
What this means for landlords: Threats
• Availability of finance and buy-to-let products
• Increased cost of borrowing; product types, interest rates and
fees
• Value of assets (re-financing); lack of flexibility and detailed
mortgage application assessment
• Length of term / tenure of investment; short term wins or long
term gains
• Changing tenant profile; increased arrears and voids risks?
Threats cont’d...
• Local Housing Allowance (LHA) rates capped
£250 per week
One bedroom property
£290 per week
Two bedroom property
£340 per week
Three bedroom property
£400 per week
Four bedroom property
• Single room rate; extension to the under 35s for room rate
e.g.: claimant aged 33 living in central London currently entitled to £250 per week
this will reduce to £137.50
This will mean shared accommodation, will HMO’s (Homes of Multiple Occupation)
work for you?
• New entrants to the market; vendors, funds and institutional
investors
What this means for landlords: Opportunities
• Significant growth in the residential lettings market
• Increased viability of leasing schemes; 50th vs. 30th percentile
• Potential change in legislation; ability for councils to discharge statutory
duty in to the private rented sector
• Increased demand on the private rented sector by the public sector
• Increasing sources of private funds for developments; we have seen
stamp duty and Real Estate Investment Trust changes (reduction in
costs)
• Changes in the market place; from owner / occupier to long term renting
• More stock available for lettings?
How can landlords benefit?
Maximising the return on your investment by choosing
the right product and managing agent
• Private Sector Leasing (PSL)
• Letfirst
• Traditional Residential Lettings
Private Sector Leasing
• Private Sector Leasing (PSL) is designed to;
• offer a financially secure and attractive package to landlords
• deliver quality accommodation to tenants
• reduce the financial impact of providing temporary
accommodation on local authorities
• be used for homelessness prevention, temporary
accommodation and discharge of homelessness duty
Your Choice: Private Sector Leasing
The Benefits
Guaranteed non-stop monthly rent
No agency, legal or management fees
Long-term leases from 3 years upwards
Free professional property management service included
Property returned dilapidation free (exc. fair wear and tear)
De-risks landlords from rent arrears, void periods and tenant
damage
WE TAKE THE RISK
Letfirst
• Letfirst with Orchard & Shipman is designed to;
• remove some of the risks usually associated with renting
• guarantees your rent and pays it directly to you
• find the right tenant for your property
• Our full management and maintenance service comes as standard
with Letfirst.
• Your own dedicated Property Manager will keep in touch with you
at all times providing you with extra reassurance and peace of
mind that your property and interests are in safe hands.
Your Choice: Letfirst
The Benefits
Guaranteed rental payments
Competitive market rents
Professional and value for money management and maintenance
service
24-hour emergency property protection
Dedicated property and tenancy management
GUARANTEED RENTS:LONG TERM TENANCIES
Residential Lettings
• Campsie Residential Lettings;
• branches in Windsor, Staines, Slough, West Drayton
• property management, rent collection and let only
• members of ARMA and ARLA
• in-depth local market knowledge
• long term relationships with landlords
• focus on tenancy sustainment
Your Choice: Residential Lettings
The Benefits
Guaranteed rent through rent and legal costs protection plan
Thorough tenant referencing
Regular property visits
Regular reviews of rent levels
Renewal negotiation
End of lease deposit resolution
Free tenant deposit scheme membership
PROFESSIONAL PROPERTY MANAGEMENT
In Summary
• These are uncertain times
• Opportunities are available
• The key to success to managing your investment is:
• identify and manage all areas of risk
• selecting the right product
• Selecting the right managing agent
Thank you
For more information contact us on; 020 3301 5993
or
Email : [email protected]
or
Visit our website: www.orchard-shipman.com