City Living: A new book by a Bond movie actress has lots of property advice. Edel Morgan reports
From Bond movie actress to buy-to-let expert. Some would see this as a come-down in the glamour stakes but, for Fiona Fullerton, it has proven a lucrative career change.
Now a property columnist for the Mail on Sunday and with her own UK property empire, the publicity for her book Guide to Buying to Let refers to her as a "property investment guru". She says that landlords are no longer wicked types who bang down the door to collect the rent, but take a gentler "more stylish" approach.
Experienced investors may find the book a little basic but, for those starting out, it's a lively and easy read. It starts like a diary of letting disasters, from a burst boiler to having two of her Oxford flats lying empty for six weeks. When she couldn't let the Oxford flats, she kitted them out with widescreen TVs and DVDs to attract the professional market. Eventually she let one to "religious fanatics" who asked her to remove all the unholy technology.
Her message? Flexibility is key when it comes to surviving the rental market, as is a speedy response to market trends and the tenant's needs. In the UK, special low cost mortgages have revolutionised the rental market, but she says that anyone expecting to make a quick buck will be disappointed. Buy-to-let is full of pitfalls and the profit is really in capital growth rather than rental return.
Much the same could be said about the Irish rental market. It saw an influx of investors in 2002 after the Budget re-introduced mortgage interest relief, and a subsequent glut of rental accommodation in many areas. Investor activity has tailed off recently and tenants are becoming more vociferous in their demands.
The book maintains that whether you're aiming at the student market, middle market or the corporate let, in a sluggish climate it pays to be a cut above the competition. I know of one Dublin landlady who had a corporate let in an exclusive area which failed to rent for six months. She eventually found a tenant after dropping the rent substantially. The tenant would only move in if she replaced the furniture, as it wasn't to his taste.
In the good-old bad-old days, that tenant would have been told to take a hike and the property would have gone to the next person in the queue. Now if a tenant shows interest in letting a property but asks you to install a shower over the bath or provide extra seating, it might be wise to accommodate them.
Fullerton says if you've just bought a rental property, turning it around quickly is important to avoid losing money. If it needs to be renovated, get to know tradesmen in the area and order any materials or furniture needed when contracts are exchanged. If the house needs major work, decide on a patch up job so you can let it out quickly or go for a full renovation that will keep it on the market for 10 years.
There are tips on decorating. For a middle market property, keep it neutral, with one or two eye-catching pieces to lend a touch of class. A power shower in the bathroom is a good idea, as are fitted wardrobes and plenty of storage. At the lower end, paint walls in vinyl silk white (cheap and easy to clean) with eggshell on the woodwork. A hard-wearing industrial carpet is good - wood flooring an unnecessary expense.
For the student market, she says it is a false economy to buy cheap appliances. White walls, heavy duty carpets and chunky furniture are also recommended. The company let is the ideal but big corporations can be fussy about standards. It will need space for entertaining, the latest technology, and companies often prefer to deal with agents rather than the landlord to keep it all on a professional footing.
The book goes step-by-step through all the letting stages including drawing up a contract, compiling an inventory, maintaining and inspecting a property and preparing one for the next tenant. An interesting chapter deals with troubleshooting void periods. The first pointer is to make sure ads are placed before the end of the previous tenancy. If you can't get a tenant, ask yourself if you're being too fussy, perhaps demanding professionals only? Other questions to ask yourself include: is the decor up to scratch? How does it compare to the competition? Are you targeting the right market for the area? Could you be more flexible with terms and rent? Is there anything you can install to make it more attractive?
The section on investing in the holiday rental market is mainly geared towards the English market, but some tips are universal. She recommends keeping the furnishing cosy and warm, with hard wearing warm fabrics and some pictures, vases and rugs to give a homey feel. Good quality mattresses, extra blankets, good clean linen, a TV, DVD and fully equipped kitchen, and putting twin beds into one bedroom.
The final section talks about spreading risk by having different types of property in different areas and with different types of tenant in your portfolio. She also gives advice on how to handle the tricky tenant. "If you manage the property, as I do, it means employing all one's skills of diplomacy and tact, especially if you want him to stay. Keep the procedure very business like and deal with it as swiftly as possible. When contact is made, I always make notes and apologise profusely if I think it is necessary."
One gets the impression that Fullerton is playing the greatest role of her life.
