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 Journey1988 - 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 – PSLSouth Gloucestershire - Housing Advice

BAA - Portfolio Management

2011 – Bromley – PSLEnhanced Edinburgh Letfirst

• 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

What you will get out of this presentation

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

• 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

£250 per week One bedroom property

£290 per week Two bedroom property

£340 per week Three bedroom property

£400 per week Four bedroom property

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 LettingsThe 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 5993or

Email : enquiries@orchard-shipman.com

or

Visit our website: www.orchard-shipman.com