A London accommodation agency is desperately seeking Irish landlords with central London properties and offering to turn their investments into top earners. With corporate clients lined up to move in, Go Native is looking to expand its property portfolio and believes the service it offers will find great appeal with Irish property owners and investors looking to maximise their return.
Go Native is a London accommodation agency specialising in the short term corporate lettings market, offering a comprehensive service to both landlord and tenant. With a portfolio of over 300 central London flats, with average occupancy levels of between 85 and 95 per cent, this agency proposes to achieve rental yields 30 to 50 per cent higher than standard long-term yields.
Currently, about 5 to 8 per cent of Go Native's client base is Irish, and it is looking to quickly expand those numbers, says Pauline Howlin of the agency. "We want to target Irish people who have properties in central London, preferably those with one and two-bedroom apartments. There are huge numbers of absent owners here, people who formerly lived full-time in London and have now moved back home but have chosen to retain their properties and still use them occasionally.
"We are very flexible; owners can make their properties available to us when it suits them. As long as the property is available for a minimum of three months in any 12month period we will work around whatever dates suit the owner, thereby maximising the return on the property. For potential clients, we can also offer advice on purchasing. We have clients waiting to move in."
Go Native is also targeting landlords with a small portfolio of centrally-located properties letting to the long term market. "A growing number of landlords who buy for investment are making their properties available for short to medium-term rentals and are enjoying significantly higher yields than would be achievable on traditional long-term rentals. Returns can be as much as 20 to 40 per cent higher," according to Pauline Howlin.
"Flexibility and a good corporate client base are the key to our service," she says. "We have well-established relationships with a growing number of corporate clients who have a constant flow of overseas staff through their London operations. We liaise with the Human Resources departments of ABN AMRO, Bank of America, Deutsche Bank, Price Waterhouse Coopers, Paramount Films and Disney. We also work closely with business and leisure travel agencies throughout the US, South East Asia and Europe."
Targeting the corporate lettings market produces higher returns on a property, but very high standards of accommodation are demanded. Corporates require apartments that resemble hotel suites, with top-of-the-range facilities, furnishings and services. Go Native has certain standards for potential accommodation. Location, size, decoration and appliances are high on the checklist, but Pauline Howline says "sometimes, even if the current state of the property is not up to the standards required but the potential is there, we will recommend that the landlord undertake certain work and then we will put it on our books."
Hands-on management style, regular upkeep of the properties and a personal service to a guest are the benchmarks of the accommodation service. The fee is between 15 and 20 per cent plus VAT of the gross rent payable throughout the term of any tenancy arranged through Go Native. Personalised services include property operating manuals, local guides, 24-hour laundry and dry cleaning service, home shopping deliveries, cleaning and maid services and emergency call-out services in the event of guests locking themselves out of the property or an alarm being activated.
The London property market offers better rental returns to Irish investors. In recent years Dublin property prices have risen to levels comparable with London prices; one can expect to pay in excess of £200,000 for a two-bedroom city centre apartment in Dublin, while a similar apartment in London goes for £225,000£250,000 sterling.
Initial expenditure is more expensive in London but the rental yields are higher, so investors can expect to gain more in the short and long term. British financial institutions have a specially tailored Buy to Let mortgage at competitive rates, aimed at those buying property as an investment.
Although the Irish property market is booming, certain tax restrictions have been introduced that deter investment in the lettings market. The London lettings market is very developed with substantially higher rents achievable there than in Dublin. Landlords can expect to achieve over £500 sterling per week for a central London corporate market property.
The West End, Kensington, Chelsea, St Paul's, the City areas, the Docklands area and other central areas are the preferred locations for corporate lettings. A two-bedroom apartment in any of these areas can expect to achieve between £550 and £700, or between £2,000 and £3,000 per month. While high rents can be achieved for corporate lets in Dublin, the same amount or quality of stock is not available.
Although higher rents are achievable in this sector, landlords were often reluctant to take this route preferring to sacrifice the higher yields for long-term tenant and income security. The short-term market was viewed as risky and very high maintenance. With a long-term tenant the landlord is guaranteed that the property is earning on an ongoing basis. There are no such guarantees in the corporate or short-term market even when a very professional agency has the property on its books.
GO NATIVE can be contacted on 0044 207221 2028 or at www.gonative.co.uk
