Strange as it may seem, property is still one of the best forms of investment, despite the global problems we’ve endured this last year. It’s never going to offer quick returs. You can’t buy a place one month and make the killing next month by selling on without touching the ground. The stages of conveyancing involved with fees clocking up on each dictates holding on to the property. In the intervening period, if it’s not the principal residence, then regular maintenance carried out and a good rental agent keeping on top of tenants will ensure maximum rental income is possible. As with every investment venture, research is needed into best areas for buying into the rental sector. Also if a property needs updating and refub before releasing to let, keeping to a sensible budget but not skimping or cutting corners also attracts a better and generally longer term tenant. Ensuring it’s kept in tip top condition will definitely produce more than adequate rewards further down the line.
There are many ways of looking at how to run a business – from the top down, the person who started it in the very begining to the hi tech smooth operation it has turned into. Having a robust facilities management team within the organisation these days is essential. There are so many areas covered within their heading. One of the key issues would be ensuring the company or organisation as a whole complies totally and unambiguously with the letter of the law. We see many tragic industrial accidents through a working year reported on the news. Eventually the inquests or official enquiry into these happenings always highlight a lack of expertise or simply not adhering to the rules – slapdash working practices that lead to an accident – and a death. The consequences for the folk directly at fault for not knowing or taking notice of the rules can be fines, imprisonment, loss of reputation and confidence and of course, loss of the business with all the good staff with it.
We definitely need more inspiration in the home decorating and interior design sector of advertising. With so many folk now at home, some genuinely working and others furloughed because they can’t, we need stimulus to get up off that sofa and really make a go of decorating to a high standard. Supermarket shelves are full currently with magazines aimed at the young would-be property developer. The sort that think they can buy a good house at auction and with a lock and a promise, turn it into a truly magnifient wonder home for twopence halfpeny. This will never be the case now as for many years, there’s been a very prominent programme based entirely on folk buying property at auction. As a result, being able to turn them around to become a good rental proposition or even better, a startling success if brought to the market for sale. It takes planning and a budgget. Plus endless paience and a good contractor to do the proper work!
If someone has some spare cash about, there’s little point in investing it in any bank based account. Investing in property has often been hailed as the best way forward. Obviously there have sometimes been as many bad times for that as there have been good, or so it seems. For the most part, property does give a good return but only if it’s bought at the right price and has the right ratio of money spent on doing it up along the way. Most areas will have a ceiling price and if someone’s buying to let it out for rent, then there’s most definitely a limited scope for ‘splashing the cash’. Unless the owner’s going to live in it for a few years, then spending a lot on high end refurbs in a run down working class terrace, that money will never be recouped. Better to make a tidy job of the renovation and stick to good quality budget refits which will impress and ensure a better quality tenant.
I’ve recently been in contact with some chaps who are busy building a fantastic holiday apartment in a tiny wee village in Cyprus. They’ve got a portfolio of seriously luxury end holiday rental homes. This latest is by far their most challenging a the terrain is seriusly rocky and there have been massive family arguments and fallings out. Over there land and property is left to the female side of the family – usually plots have been held in one family for centuries and this way ensures each generation has some scope for building if they so need. In the case of the 2 guys, the land was left to one of them by his father who had bought it as part of a syndicate . . . . . The scheme was granted all the permissions needed and so building commenced . . . . . without either owner being present. Bad move. Cypriot builders and developers are a very odd bunch! Communication is bad enough all year round but somewhat exscerbated when a steadying hand isn’t around.
You’d be amazed at the number of folk in one small housing development who manage to find something to do on their houses and gardens every hour of every day. . . . Where I live it’s quiet during the normal Monday to Friday week. The children are at school, most homes have both parents out working and so only a few of us home workers are around. Weekends of course are another matter completely – it can be bedlem at times! However this noise factor has been spread throughout the week lately – enforced quarantining. Power washing of the driveway and patio seems to be the major Monday task. Lawn mowing and scarifying on Wednesdays, as is now the clearing of the junk to the tip on Wed to Sundays. Lots of these executive detached houses are rented out permanently so management companies get their contractors to sort out problems inside but also deal with the gardens and landscaping. I’ve noted too that they get involved with maintaining the exterior of the properties by way of guttering and de-mossing of rooftops.
One of the key features of property maintenance plans is to ensure the unexpected doesn’t happen. Facilities management is a contractural arrangement with a company that literally does do all the supplies of hardware supplies; check, repairs or refit as necessary etc. for a monthly fee. This should involve ensuring all the legal aspects of the building are kept completely up to date. Knowing the lie of the land is sometimes overlooked when companies take on contracts. Are they aware of all the pipelines and utilities going in to the property; do they know whether the trees in the garden or just outside the wall/fence, are stable and who actually owns the land – the land boundary may not be as it first seems. This is very relevant if the tree falls or is blown over after hundreds of years of blissfull splendour. Ensuring the company holds really watertight personal and public liability insurance is critical – should that tree come down, injuring people and neigbouring properties. Knowing who owns trees, whether there are preservation orders on any and who to contact about them is a far more important matter than many contractors think.
This is a most peculiar winter – certainly the most challenging one we’ve had in a couple of generations. At this time of year we do expect to have the most challenging weather – always a lot of cold, interspersed with dense fog, freezing at times, maybe some lightweight snow and always some ice along the way. Well leading up to this point we’ve had endless rain, it’s been the most prolonged downpouring in centuries – this of course has cause absolute mayhem with flooding and several towns and villages are still struggling to get straight some months after they suffered this. Global warming and climate change are definitely blameworthy, as is the lack of envronmental maintenance in many areas. This is turn has a knock on effect on houses in those areas. Because it’s impossible to get insurance on a once flooded home, people don’t really bother with the upkeep as much as they might. This leads in time to rot and badly cared for outsides. Gutters are not replaced which lets more water run down the brickwork. Window frames are left rotting and this causes irrepairable damage. It needs expert maintenance teams to come in and really fix up these properties to make them fully habitable once more.
Oh how exciting it is when you get the keys to the first house you buy. With this thrill comes the down side . . . having to keep it maintained and fully safe and functional. The terms of the mortgage will insist on at least the basic jobs be undertaken to stop any problems actually starting up. Once someone gets the hang of it or chips in for another company to do this work, then they might think about buying another property and starting an property investment portfolio. Many people like to put their money into this kind of scheme as the banks and financial markets are so volatile and no interest seems to come our way. To buy at auction for a ‘song’ and have the house or flat renovated or just refurbished allows it to be rented out pretty quickly to start earning its keep. Then with buy to let financing, the next property is purchased and the actions repeated. With careful and prudent financial controls, the rental income will be sufficient to meet the mortgage payments plus all other costs associated with running the property and leave some spare for the investment pot.
Facilities management services are generally tailored to match a customer’s needs in that they combine various integrated services. These could include mechanical and electrical engineering, environmental concerns and technically challenging issues such as maintenance and condition of the building fabric and surroundings. Apart from the property and running of it – keeping the escalators and lifts operating safely, ensuring the power is available all the time and the aircon doesn’t break down in the height of summer. They can also deal with such things as asset tagging and recording – knowing exactly what is in each buzzing cabinet is amongst this section. Health and Safety concerns are always upper most in management eyes and the facilities management company will be fully coversant with current laws. Procurement is another huge area – from the catering side to the washroom and janitorial – including also the recycling and garage disposal contracts. Financial management and budget preparation together with tendering and negotiating annual service agreements go hand in hand with the other responsibilities.