So one month into lockdown and how are things.

It certainly has created a lot of change good and bad in the world of property investing and the rental market. 

On the rental front we have had some tenants that have contacted us and are having difficulties, some losing jobs and some being furloughed.  Our response to them has been to work through these issues individually and look at the support we can offer.  If they are good tenants and pretty much all ours are then we have first helped them get the support that is out there that they may not have been getting and in some cases put a payment plan together which defers some of the rent until later in their tenancy.

We have as well had a lot of positives, we always purchase our properties in high rental areas and there have been a lot of key workers moving around.  Whether this was to move away from parents so they could self-isolate or have been moved by their employers into key places.  We had got ourselves prepared with property videos of every room so virtually viewing became the normal.  We still did all the rigorous referencing and checking and using key boxes and social distancing policies have successfully catered for all their requirements. 

On the development front we implemented a Corona Virus policy and continued working.  In the last month we have completed a 6 bed HMO and started on a new one which has an extension built under permitted development rights.  Materials has been the largest issue but a bit of creativity and amendments to the Schedule Of Works  has solved every issue.

PROJECT UPDATE

7 bedroomed HMO in Darlington 

This property is now fully let and functioning as a high yield investment within the Saltbox portfolio.  Nothing more to report on this as it settles into the rental section of the Saltbox group.  We manage all our own properties and properties for other landlords.  Primarily because most letting agents are pretty poor and managing HMO is difficult and needs specialised knowledge.  Saltbox has a rental team headed up by Alexandra the Letting Manager who runs this part of the business.  It was always important to me to have an end-to-end process from sourcing the deal to developing and adding value and then finally to actually make the investment return what it is capable of.  I do this for my own properties and by doing that I can offer the service to other investors and landlords.

6 bed HMO in Ripon

As I reported last month we managed to complete this project with a few alterations to materials due to Corona Virus effecting suppliers.  I am pleased to say that it is now fully let with 4 key workers already in the property and two more signed and ready to move in after lockdown is lifted.  There is always a little “bedding in” on a HMO especially when it is one that has gone through such an extensive development.  This was a very old listed building and one that was in a very sorry state when I purchased it.  It is now a super modern luxurious 6 bed HMO and to date is definitely my new favourite in the portfolio.

6 bedroomed HMO in Barnsley

The build team is now fully engaged with the new development.  An extension has already been built at the rear of the property. Chimneys have been ripped out and the internal walls built.  Electrics and plumbing are well on their way to be 1st fixed and the project is slightly ahead of schedule. 

7 bed property in Cumbria

My attention is now turned to preparing this project ready for the lockdown to be lifted.  When dealing with a full conversion and planning change requirements then it is very important to get all the steps right and the paperwork implemented.  I need this ready to go at the beginning of June so a lot of preparation is currently being done.   The design we have gives us 7 large rooms with a spectacular communal living space.  This could definitely be my new favourite in a few months time.

Our SA properties at the point of writing are still closed but we are getting a lot of interest for later in the year.  I think the nervousness of flying and travelling abroad has made people look more closely at options in the UK.  I am expecting a rather large bounce back and hopefully some revenue coming back in. 
 
In terms of acquisitions I am preparing to go into full purchase mode as I expect opportunities to be good.  It may take a little while for these to filter through but all my actions at the moment is to prepare for this period.  I am communicating with my investors and JV partners so they are also in a good position and ready.  Lets see what the next few months bring.