Right now the number of people living in shared homes is increasing month on month, mainly because so many of us have been priced out of the market when it comes to buying a property, but there are both financial and personal reasons why people house share.
Why rent in a house share?
1) Moving Area
If your job or another reason is taking you to a new area, a house share can be a great short term solution before you get settled and find out where you want to live. Some people house share with this intention but it becomes long term accommodation. Also if you don’t know anyone in your new area a house share offers some instant friendships and companionship.
2) Leaving Home
Some people can’t wait to leave home and others are more nervous. With a house share you have the independence and responsibility of your own place, but also some house mates to have fun with.
Some people love their own company, but for others it can be extremely lonely so choose to house share.
We’re all affected by the economy and House Shares are an extremely financially attractive living solution. At Mistoria Estate Agents we have house shares with fully inclusive rents. This means everything is included, right down to the linen on your beds.
Living in a house share is usually much cheaper than renting your own place. You still have your own bedroom (which has a lock so plenty of privacy) but the bathroom, kitchen and living room are communal areas. Effectively by sharing you split the cost of these extra rooms. By sharing it’s often possible to live in a better property or in a better area than you could afford on your own.
Article 4 Direction regulations were established on 1 October 2010 by local councils to restrict the development of house share style properties. This affects all shared properties housing between 3-6 occupiers, who are not related to one another and is highly likely to take effect in areas with a high number of HMO properties ie; College and University locations. Usually, a local council will give one year’s notice prior to an Article 4 Direction becoming applicable.
In areas where Article 4 Direction has come into force, the impact is evident on both the home occupants and the landlords. These regulations affect HMO properties popular with students and other young people. For landlords considering purchasing in locations where the Article 4 Direction exists, one could buy and develop a property, then be unable to use it as a house share if refused planning, thus the rental flow on the property would be diminished. In addition, the value of owner-occupier houses can fall as the market for buyers is reduced.
Currently, in Salford, the Article 4 Direction is not yet in place and therefore, development can proceed without restriction, although Selective Licensing regulations have already been enforced in the nearby areas of Seedley, Langworthy and Weaste. This particular scheme is designed to tackle the most severe issues in the private rented sector, and intended to address the problems of poor quality landlords and anti-social tenants. It is hoped that through this process, both the management of the properties and the quality of the properties themselves, can be improved.
Mistoria Estate Agents and its associated group of companies are specialists in refurbishing, furnishing and managing properties within areas of Salford affected by Selective Licensing regulations. We ensure that these properties are fully compliant in terms of the required specification and graded well by the council, thus achieving a far greater rental income.
A new ruling by The Advertising Standards Authority (ASA) now means letting agents must now be much clearer about their fees for rental properties.
Certain estate agencies have been accused of hiding compulsory administration fees making it difficult for the consumer to really know what they were going to be charged for their rental properties.
The ASA have said that all prices now quoted must be transparent to ensure a much fairer system. Now when an agency is letting a property the monthly rent must be advertised alongside any extra admin fee to be paid including information about a property’s deposit, any rent to be paid in advance and also any contract fees involved. These changes are being made to protect all renters but especially vulnerable people such as first time renters and students from looking for a home.
With these new regulations in place consumers will now have all the information they need to compare prices and shop around, so that they can be confident when choosing a property.
Guy Parker, Chief Executive of the Advertising Standards Authority, said:
“Hidden fees are not only unfair, they hit those who are struggling hardest. Our ruling today makes clear that Letting Agents need to get their houses in order and treat potential tenants fairly.
Renting a property is a significant commitment. And for those who are new to the rental market, like students, navigating it can be particularly difficult. That’s why the ASA is clamping down on Letting Agents who hide fees. Today’s ruling makes clear that agents must include all compulsory fees and charges in their quoted prices. If the fees cannot be calculated in advance then the agent must make clear that fees have been excluded, and provide enough information for consumers to establish how fees are calculated. It’s now our priority to make sure agents across the sector bring their advertising into line.”
Mistoria Estate Agents have compiled some top landlord advice as to why letting your property to students is the way forward…
You can normally fit more students into your property than you would if it was a professional let. A three bedroom property can often accommodate 4 students meaning more rent for you, the landlord. It is possible to turn the lounge into a bedroom and make the kitchen the “social room”.
Students are prepared to live in areas that are not considered desirable by professional tenants, so the capital values of properties are much lower.
MORE RELAXED ON INTERIORS:
For undergraduate student tenants it is normally their first experience of life away from home, so the newness of the kitchen or bathroom suite is not always their priority when picking their accommodation. Having said that, landlords cannot afford to be complacent, standards are rising and mature and foreign students often demand professional levels of accommodation.
ADVANCES ON RENT:
Due to student loans being delivered in large installments some students find it works better to pay their rent in large lump sums in advance. In some cases the parents will pay upfront for each semester.
According to research, University towns have outperformed other towns in terms of house price growth.
Letting your property to students can be daunting but Mistoria Estate Agents can manage your property, from finding you tenants, looking after any maintenance and refurbishment issues to making sure your tenants look after your house.
We give Landlord Advice but more importantly manage EVERYTHING ensuring you have a regular income with no hassle whatsoever.
For information about buying investment property please take a look at MistoriaGroup.com
‘Mistoria Estate Agents’, part of the Manchester based property investment company, the Mistoria Group, have launched a ‘Best Kept House’ competition for those living in their rented student accommodation, with the winners receiving a week’s holiday in Ibiza and £1000 spending money.
The initiative, aimed at encouraging students to keep their rented homes clean and tidy, will entail a member of the Mistoria Estate Agents team inspecting each house per quarter, with a final winner chosen at the end of the tenancy in June. Entrants will be judged on a number of criteria, including maintaining cleanliness in communal rooms and individual bedrooms, in addition to ensuring that both front and rear gardens are kept in a satisfactory condition. Consideration for the environment is also a contributory factor in winning the award, with tenants encouraged to consider utility usage both carefully and sensibly.
Mistoria Estate Agents Director, Paul Gwynne said “We are delighted to be able to launch the ‘Best Kept House’ competition. Hopefully, it will present a fun and light hearted approach in inspiring our tenants to take pride in their rented homes and maintain them on a consistent basis. Most importantly, it also ensures that the house is returned to us at the end of the tenancy in its original condition, thus saving the landlord money over the duration of the lease.”