The Green - October 2009
Fitz-Gibbon Reports Strong Demand for Longer Tenancies
By Louise Smith, Assistant Manager, Fitz-Gibbon Richmond
Given the increasing amount of complex legislation affecting our industry, its vital lettings staff are trained to fully understand the various types of tenancy available and advise clients about everything from energy performance certificates to houses of multiple occupation and the tenancy deposit schemes. At Fitz-Gibbon, we invest heavily in staff training and as we enter the last quarter, two and three year tenancies are becoming more commonplace as families seek added security in uncertain times. Many need to budget ahead and know where they stand financially whereas others are open to rental increases in line with the RPI.
We've also received multiple requests from tenants wanting tenancy agreements without a break clause. Given our proximity to the German school in Richmond, this has been particularly true for German families whose children will be attending the school for a number of years. This is good news for many landlords but requires careful consideration by both parties. Indeed, we've recently let a four bedroom house on the Vineyard for a full year with all rent paid in advance.
The Lettings Division in our St Margarets office has now been up and running for a year and the business is growing due to new and corporate business, the relaxed availability of investment funding and reduced sales prices as investors are acquiring properties again. Four years after our rebrand we're currently in the process of refurbishing all of our offices, including knocking through the Richmond Office to create more desks for staff. In fact, 2009 has been our most profitable year in twelve years thanks to our solid reputation and valued clients.
In the current market, reasonably priced and well presented properties are generating a lot of interest and even attracting multiple offers so property stock levels have reduced compared to the levels seen three months ago. This change also reflects movement in the local sales market as some homes have gone under offer for sale. The lettings market around Chiswick and Richmond remains solid and rental yields have increased upwards of 10% in the past two years. A typical flat worth £400,000 with a 5.2% yield in 2007 would give a yield of 5.7% in today's market because although the capital value may have dropped to £325,000 rental prices remain the same or higher.
In Richmond, one bedroom properties are currently achieving between £220 and £288 per week, two bedroom properties are valued between £277 and £460 per week and family homes start at £690 per week for a three or four bedroom property and £1,150 for a five or six bedroom home. We're looking forward to a busy market in the run-up to Christmas!
To arrange a free market appraisal call Louise Smith, Assistant Manager Richmond (020 8892 8921) or why not pop into your local branch; 128 Sheen Road Richmond, 1 Sutton Court Road Chiswick or 127 St Margarets Road Twickenham.
Smoothie Operators
Fitz-Gibbon ensure clients' homes gain maximum exposure
OVER THE YEARS Susan Fitz-Gibbon, of local lettings agency Fitz-Gibbon, has been asked many times why the Partners haven't 'taken the plunge' and developed a fully fledged sales service. The answer is obvious - this business has been taking lettings seriously for twenty years and given it the respect it deserves. I'm beginning to wonder if Susan has a crystal ball tucked away somewhere Ð how could the Partners have foreseen so much Ð but when you look at how the company has developed over the last twenty years, it's clear the Partners' business acumen is less about luck and more about astute judgement.
"Lettings is a highly specialized industry and we know what we're good at" says Susan. "It's always interesting that when estate agents lose market share in sales they naturally lean towards 'opportunities' in the lettings market but nine times out of ten, they fall off the band wagon and we're always there to pick up the pieces; assisting new clients and retaining loyal landlords. Indeed some local sales agents are using sales staff for lettings functions in the current climate but this strategy is dangerous due to the complex nature of lettings. Staff can too easily use the wrong type of tenancy agreement or fail to fully understand legislation affecting their clients like that relating to Houses of Multiple Occupation".
"Staff need comprehensive training and we're constantly bucking market trends; recruiting new staff and investing in training even in the face of the global credit crunch. So while many long standing businesses are experiencing uncertain times, we've introduced ARLA's technical awards for office managers and launched a branded new fleet of Mini Coopers across the local area. Furthermore, we've increased marketing spent, ploughed investment into our offices and distributed corporate literature throughout our catchment areas". Sure enough, Fitz-Gibbons 'summer smoothies' campaign proved a huge hit this summer and just for years after the company's rebrand, every office is being refurbished with shocking pink walls in the company's signature cerise pink.
"Our clients are loyal and demand a lot, and as they well should. You really do get what you pay for so not only de we invest heavily in marketing but have had a dedicated Press Officer on-board for almost six years giving clients' homes and our business maximum exposure. We always aim to ensure clients and tenants have our expertise at their fingertips via key publications and property titles, plus landlords trust our experience and knowledge because we've spent years specializing in lettings. For any business, client commitment proves invaluable especially when it comes to Property Managers".
Fitz-Gibbon's team of Property Managers are based at HQ in St Margarets and I'm surprised to hear they don't just deal with new boilers, gardening and redecoration. "We're just completing a major project in W14, costing in excess of £80,000, and I'm putting the finishing touches to a £13,000 refurbishment in Riverview Grove W4" explains Lisa Dunsby, Property Manager. "Our W4 client is in Longbeach, California so I've designed a new kitchen, overseen its installation and arranged a complete overhaul of the drains and gutter work.
Meanwhile new electrics are being installed in a pre-war property in Mount Ararat Road and I've been overseeing insurance claims for homes with flood damage Ð as well as arranging all the necessary repairs of course!. For many of our clients, Property Management is an invaluable part of our service."
020 8892 8921
www.fitzgibbon.co.uk