We continue our series of interviews with prominent estate agents across the UK by speaking to Major Mahil, director at Belvoir Lettings in Birmingham
Could you please tell us a bit about your branch and the area you cover?
Belvoir is one of the largest lettings franchises in the UK, with nearly 150 offices across the country. I founded the Birmingham branch in 2007 after becoming disillusioned with the service I received from estate agents. I am a landlord myself, and I felt I could deliver a better quality service to landlords by drawing on my own experiences and my background in law.
Our main market is predominantly city centre apartments, ranging from one-bedroom studio apartments priced at around £400-500 a month up to luxury penthouses priced in excess of £2500 a month.
What is the lettings market like in Birmingham?
The city-centre market is very pro-active. Despite the success of the Help to Buy scheme, the fact is that many young couples and professionals simply cannot afford to purchase their own home, and renting remains the most viable alternative. We let around 30-40 properties a month, and sometimes we face issues with a lack of supply on the market. Landlords still aren't purchasing enough homes and tighter mortgage regulations are slowing things down a little.
We will often see six or seven tenants competing for one property, and in these instances we let landlords choose their preferred tenant rather than engaging in bidding wars. Six month tenancy agreements are the norm in Birmingham, with tenants reluctant to sign for longer terms. It is generally a furnished marketplace here, so we advise and assist landlords with adding furniture and decorating the property in an attractive but neutral manner before bringing it to the market.
What other services do you offer to landlords?
We offer a comprehensive service that takes landlords right through the process. We source properties for prospective landlords, providing rental market data, property portal figures and information about the types of tenants in search of a property in the area.
Once the landlord has purchased and furnished the property, we set about marketing it to tenants. We use Experian credit referencing and obtain landlord references, before setting up the tenancy and preparing the inventory. Inventories are vital in the current market due to the various regulations surrounding letting a property and the deposit protection scheme, so we always use a registered third party.
Do landlords prefer to have their properties managed on their behalf?
There has certainly been a change in the market. Five years ago landlords were much more hands-on than they are today. Now, many landlords want their investment to be stress free, and with tight and ever-changing rules to adhere to, using a management company can be an attractive option. We keep up to date with the latest legislation, ensure maintenance is completed quickly and professionally and keep EPC certificates up to date, taking the hassle out of the process.
What are your top tips for prospective property investors?
Research is a fundamental aspect of investing in property. Consider the location of the property very carefully - is it close to public transport links and the motorway? It is also vital to speak to a local agent about rental yields, local demand and the type of tenants you will be targeting.
I would also advise landlords to purchase newer properties, as they generally have fewer issues than older builds or listed homes. Also, remember to factor in any ground rent or service charges that may come with purchasing a property - these sometimes get overlooked when pricing up an investment.