Letting and London go together like wine and cheese - it’s a housing system that’s a fully embedded part of our city’s eco-system, and complements our city’s ever-changing way of life.
So it’s no surprise that many want to grab a slice of the property space in any borough they can find. But as the Government plans to set out a minimum standard across the private rented market, would-be landlords are turning to different methods to ensure they stay on the right side of this standard.
What does SE5 and the surrounding area have to offer?
First, the facts. Southwark, the home of SE5, is a very competitive market, and having someone on your side who knows the area like the back of their hand is vital.
According to the National Census, the Southwark population grew by 6.6% between 2011 and 2021 - making it the seventh most-populated borough in London. Put into perspective, that’s 76 people living on a piece of land the size of a football pitch.
This forecast is only set to continue in its upward trend. Demand for homes is skyrocketing across the country, and the increasing rental market is trying to keep up.
So where should you stake your claim?
Camberwell
Thanks to its high-speed connections to Central London, Camberwell has transformed into a bustling neighbourhood, without losing its leafy, village-like charm.
Peckham
Over the years, Peckham has become a place renters have fought tooth and nail to call home. Why? It's unpretentious attitude. At its heart it’s a place where everyone can feel welcome.
Denmark Hill
Securing a property to rent in Denmark Hill gives you enough reason to feel smug. Though prices are rising, they’re much cheaper than neighbouring Peckham and Brixton, without putting off the key target of the area - young professionals and families.
Brixton
In neighbouring Lambeth, Brixton has undergone a huge transformation in recent years - turning into a fashionable place that draws people from all walks of life. Home to a covered market, vibrant nightlife, and diverse music scene, it’s no wonder renters want to live here.
Dulwich
Dulwich is the epitome of an urban village. With its plethora of greenery and excellent schooling, it’s little wonder that landlords want a slice of this area. You need to act fast if you wish to join other landlords as properties aren’t on the market for long.
No matter where you choose, you need to carry out in depth research to ensure you’ll see a return on your investment - and there are a variety of ways you can do this.
Build your business
Despite the relatively passive nature of the income, when becoming a landlord, you are creating a business. As it is a business, it needs to be set up and managed as such. For instance, do you have the legal infrastructure in place to protect it?
There are two main routes to being a landlord, and each have their advantages:
• Private sole ownership
• Through a limited company
Sole ownership is usually how your business will begin. Once you build your portfolio, you can create a limited company to reap the tax benefits that would not be accessible to a landlord with one property. However, one property is much simpler to run - as you may be responsible for the majority of the running, depending on how you choose to let your property.
This may be frustrating if you live far away from your rental property - but there are ways to make your life as a landlord much easier.
Software
Across the country, many landlords are choosing to rent properties beyond their local areas, even from overseas. This has led to dependency on external management systems to allow them to govern their business from afar.
Increasingly, computer software has been developed to help landlords manage their properties from one place. However, cutting through the noise to find the software that’s right for you can be difficult.
Any respectable landlord software will help with the following:
• Property and tenant details
• Rent management
• Legal documentation
• Supplier information and management
• Tax reports
• Accounting i.e property expenses
• Loans
• Deposit information
• Online storage for all documents
Simply put, your software should allow you to manage your property from one place, but it will still need a certain amount of your time and energy. For larger portfolios, or if you want a more ‘hands-off’ approach, an experienced hand is always appreciated.
Property managers
Another popular option is to gain the services of a property management firm. These can range from large-scale companies that focus solely on rentals nationwide, to smaller local firms that specialise in their immediate surroundings.
Despite gaining the knowledge and expertise of a property management company, you are not dissolved of responsibility to your property and your tenants - but you do have practical support, guidance and day-to-day running that makes the process less time-intensive.
You are obliged to ensure the tenants have a home that is livable, soon which will be subject to government guidelines; supply the means for repairs; and meet the minimum safety standards.
However, a property management firm can be your tenants’ port-of-call when it comes to reporting repairs, depending on the management package you choose. A good property manager will do more than just communicate with tenants and report problems back to you - they will offer you advice on everything from redecorating to pricing your property, and ensure the smooth running of your rental.
At Urban Village, we’re not only in the business of selling, but helping landlords manage their properties, no matter the size of their portfolio. Our local knowledge and personal touch makes us a popular choice as we’ll market your property to the tenants you’re looking for. Discuss your plans with our expert team today; contact info@urbanvillagehomes.com.