MBM News
Dear Landlord
The purpose of this newsletter is to bring you up to date with how we at MBM are coping with the effects of the economic crisis, what steps and changes we are making within our company to continue to expand, whilst providing our existing landlord clients with an assurance that their property investment is being managed in a progressive and professional manner.
Current market situation
We are experiencing a consistent demand from potential new landlords for details of our services. Some of this potential is from clients who would prefer to sell their properties but are unable to do so because of the financial situation. Other individual landlords, appreciative of the fact that bank interest rates and most other forms of investments are at an all time low, are looking to invest in the property market, taking advantage of the present low property prices. Ongoing interest also comes from clients who have inherited properties, whilst a number of our investment landlords continue to expand their portfolios confident in the future long term benefits to be had from the property market.
From the tenants’ perspective, clearly there is still a large demand for rented property from people as a result of their inability to buy a home, whilst there is an increasing number who choose not to do so as a lifestyle choice. Ongoing demand for properties for single occupancy continues, whilst some tenants, well able to buy a property, choose not to do so in anticipation of further reductions in house prices.
The effects of these factors are:
Rental prices have dropped in the Derby area in the last 9 months by around 5-10%, whilst some of the larger property rentals have fallen by as much as 20%.
Tenants are more likely to try and negotiate on rental.
Tenant quality expectations have risen as a result of the property choice available to them.
We have experienced a slight increase in the number of would be tenants withdrawing from properties at the eleventh hour, in addition to a very slight increase in the number of monthly non payments by certain tenants, although the number of property repossession procedures which we have
been involved in within the last 12 months remains consistent at less than 1%, well below the national average in England and Wales of 3%.
MBM Actions
Each Thursday morning every member of our team is involved in a meeting at which every property to let, currently on our books, is reviewed. At this meeting we assess the amount of interest shown in each property, including the number of viewings and the tenants reactions to these viewings. This information is communicated back to the relative landlord as appropriate, along with any appropriate observations and proposals. In the main we have been pleased with the pragmatic approach of our landlords.
We recently undertook market research which focussed upon our pricing and service levels compared to those of our competitors. We were delighted with the outcome.
We have recently had our website redesigned and the findings of our market survey have been reflected on our site under the heading of the “Sensible Alternative”. This approach, which is relative to both landlords and tenants, emphasises why we believe that our company offers the best value for money in the area and hence the sensible alternative to the offerings of any competition.
MBM now subscribes to the services of the top three property portals in the UK. No surprise then that over 50% of both landlord and tenant enquiries come from these sources. In addition, regular advertisements and PR features appear in the Derby Telegraph, which we supplement with advertising in other local press as appropriate.
Staff training for all is important for us at MBM, as we are very aware of the introduction and implication in recent times of government backed schemes in the form of the HHSRS - The Housing Health, & Safety Rating System, the TDS - the Tenancy Deposit Scheme, and more recently the EPC scheme - the need for each property to have an Energy Rating Certificate (please see our website for further information). These things, coupled with the growing influence of the regulatory bodies and their reliance on the standards laid down by the Ombudsman’s scheme, plus the recent Rugg survey into the lettings industry (the general outcome of which recommends increased regulation of the industry), means that all staff must be aware of these moves and their implications.
We as a company are confident in, and continue to plan for, the future, and we trust that our business arrangements with you will be ongoing for many years to come.
Should you wish to expand your property portfolio then please do not hesitate to contact us for any advice you may feel we can provide.
Please be aware, as of March 2009, if you introduce a new landlord to us then we will be happy to pay you £75 for any such introduction.
Finally, if you have any comments which you wish to make that might enable us to further improve our service to you, we would be delighted to hear from you.
Best Wishes for 2009
From all at MBM Management