What Does a Property Manager Do and Should I Hire One?
A property manager oversees the day-to-day operations of rental properties on behalf of the landlord or owner. Whether it is a business, residential or commercial building, there may be multiple occupants and the role of the property management is to help with things like collecting rent, sorting out building maintenance and repairs and in some cases, disciplining and evicting bad tenants.
The roles of property managers includes:
- Selling vacant units
- Screening tenants
- Collecting rent from tenants
- Coordinating maintenance and repairs
- Enforcing lease agreements
- Handling tenant complaints or disputes.
- Evicting of tenants
- Ensuring compliance of local and state property laws
- Financial reports
- Supervising on-site staff, builders or maintenance workers
As a busy landlord with a big portfolio, you may be more interested in building and growing your property portfolio and getting the finance and completing the sales. Therefore, you might want to sub out the property manager role to someone to deal with the day-to-day running of it.
This could be someone that is hired on an hourly rate, contractual basis, part-time or full-time. You may insist on having multiple property managers for the same building or the same manager for multiple buildings.
What Kind Of Building is a Property Manager Suited For?
A property manager is ideal for a residential or commercial building with a lot of tenants and rooms, both occupied or vacant. This includes student properties, office spaces, flats and homes that are rented out, residential blocks and more. Others buildings might include those where the owner or landlord is not regularly there, such as AirBnBs, holiday rentals, chalets, villas and more.
A property manager may be excessive for a one-off individual property, but rather look after a portfolio or a bit residence or commercial building which requires ongoing maintenance and a desire to keep lots of tenants happy.
A big residential block would be a good candidate for block managers or property managers, with lots of maintenance usually required and a lot of tenants to stay on top of.
How Much Do Property Managers Charge?
Property management fees will vary based on location, with property managers in London likely to be a little pricier. It may also depend on the type of property and the services provided. No doubt that newer buildings may be less maintenance compared to a huge building which is old and needs a lot of ongoing work.
Typically, property managers charge between 8% and 12% of the monthly rental income for full-service management of residential properties. If a building is generating £10,000 a month in rent, the property management agency or individual, will likely charge £800-£1200 per month.
But this may depend on various factors. There may also be reduced rates for the more tenants they manage and the economies of the building.
Additional fees might include leasing fees (equal to half or a full month’s rent) for finding new tenants, maintenance markups or advertising expenses to find new tenants.
For vacation rentals or short-term rentals, the management fee might range between 20% and 30% due to more frequent turnovers and hands-on management.
Is It Worth Hiring a Property Manager?
Hiring a property manager is worth considering if you lack time, live far from the property, or are inexperienced in rental management. Or if you are a busy landlord who needs to focus on growing their portfolio, accessing bridge finance, talking to investors and you travel around a lot.
Property managers can save you time and stress, ensuring legal compliance and minimising tenant issues. However, their fees can significantly cut into your rental income.
For small properties or if you’re hands-on and nearby, managing it yourself may be more cost-effective.
On the other hand, for owners with multiple properties, complex rentals, or little experience, a property manager can add value by optimising occupancy, reducing tenant turnover, and ensuring efficient property operations.
The decision ultimately depends on your situation, priorities and the complexity of managing your property.
How Much Can Solar Panels Add Value to My Property?
Solar panels could add anywhere between 2% to 4% to a house’s value; however, some solar experts say that this may not be immediate. While it is not clear exactly how long they will take to add value, what is clear is that solar panels will not detract from property value and could make it far easier to sell the property.
Installing solar panels on a residential property is a smart long-term investment as well as a step towards more sustainable living. Beyond adding value to the property, there are plenty of benefits to adding solar panels including reduced carbon footprint and reduced energy costs.
Here, we explore the different factors that could impact the amount of value that solar panels could add, how much money they could save you and how to get the most out of your solar panels.
How Much Do Solar Panels Add in Value?
Eco Experts say that solar panels can add 2% to 4% to the value of your home depending on their size, quality and age. Therefore on a £1 million home, it could add in the region of £20,000 to the property's value.
When a property features solar panels, it can make it more attractive to potential buyers - including buyers who want to make their home more energy efficient, reduce their carbon footprint as well as cost-savvy buyers who want to save on their energy bills on a long-term basis.
In certain areas, solar panels may be more valued than others, certainly if you are adding solar panels in London, this could add more value than in a colder part of the country where there is less sunlight.
| Value of The Home | Valued Added at 2% | Value Added at 4% |
| £500,000 | £10,000 | £20,000 |
| £600,000 | £12,000 | £24,000 |
| £700,000 | £14,000 | £28,000 |
| £800,000 | £16,000 | £32,000 |
| £900,000 | £18,000 | £36,000 |
| £1,000,000 | £20,000 | £40,000 |
How Does The Type of Solar Panel Affect Value?
The amount of value that solar panels add to a property will depend on multiple factors including:
- Size - the size of the solar panels play a role. As larger solar panel systems generate more electricity, they tend to add more value to a property.
- Efficiency - the greater the efficiency of the panels, the more sunlight they can convert into electricity and the more value they hold.
- Location - depending on where you have your property, your solar panels will get a different amount of sunlight which impacts their efficiency. That’s why properties with solar panels in sunnier regions of the UK will likely hold more value
- Energy prices - as energy costs rise, households have a greater potential to save with solar panels, making them a more appealing option.
How Much Money Can Solar Panels Save Households?
Electricity bills
UK households can save anywhere between £300-£700 annually by installing solar power - cutting their electricity bills by around 50-70%. The savings grow for bigger houses; for example, one- to two-bedroom houses could save around £290 per year whereas three-bedroom houses may save an average of around £480.
Energy Independence
When a house is fitted with solar panels, the household becomes less reliant on the grid for their electricity needs. This means they are protected against future energy price hikes and could save a great amount of money.
Government schemes
With the Smart Export Guarantee (SEG) scheme, homeowners have the opportunity to make money off their solar panels by exporting surplus electricity back to the grid in exchange for payment from the energy supplier.
What Are The Long-Term Financial Benefits of Solar Panels?
While it can take time to see the financial benefits of solar panels, they do come and they are substantial. In fact, solar panel systems typically pay for themselves within 6-12 years.
The initial cost of a solar panel installation, as of April 2024, is between £2,500 - £3,500 to £12,000 - £13,000, depending on the size and other key factors. However, after making that initial investment, your energy bills will benefit from significant reductions.
You can expect to save between £440 and £1,005 annually thanks to solar power installation. In addition, you could even earn money by selling extra energy back to the supplier grid for a fee.
Within around 6-12 years, depending on a range of factors, you will have recuperated your investment. Especially as energy costs increase, the payback period becomes even shorter.
Additional Value
In addition to financial benefits, solar panels also make your home more valuable from an environmental perspective.
When you fit solar panels on your residential home, you reduce carbon emissions by around 1.5-2 tonnes annually and help to contribute to a cleaner environment.
These panels can also be a huge drawer for buyers seeking a more sustainable lifestyle as the home aligns with their goals.
Choosing to invest in solar panels will help add value to your property and save you substantial money in the long- term, as well as making it a more attractive option to potential buyers. With a chance to save money, earn additional revenue and sell your home more easily, investing in solar panels is a worthwhile investment.
Can a home battery storage system really save you money? 5 things you MUST think about
This piece was kindly contributed by Dave Roberts, UK MD at energy storage specialist GivEnergy.
A home battery storage system can help you cut energy bills and carbon emissions. However, before diving in, there are plenty of factors you need to consider when choosing the right system for you. Break-even point, battery capacity, renewables, and everything else in between all require close attention. With high upfront cost, it’s important to see a home battery storage system as a long-term investment. Choose the wrong system, and you could end up with diminished ROI and slower payback periods. Choose the right system, however, and you’ll reap the financial and environmental rewards.
Here, we bring you five things you should consider before investing in a home battery storage system.
1. Upfront cost
How much you spend upfront will help determine how much a home battery can save you in the long-run.
The total upfront cost of a home battery includes the following:
- Battery unit and battery inverter
- Installation
… and if you want solar PV panels:
- Solar panels (number of, and quality of panels will affect overall cost)
- Installation
Here are the latest average battery and solar panel costs in the UK, according to figures from the Microgeneration Certification Service (MCS).
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Batteries
-
For an average 1-2 bedroom property with 6 panels
Around £2,500
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For an average 3-bedroom property with 10 panels
Around £4,500
-
For an average 4+ bedroom property with 14 panels
Around £8,000
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Solar panels
-
For an average 1-2 bedroom property with 6 panels
Around £4,216
-
For an average 3-bedroom property with 10 panels
Around £7,026
-
For an average 4+ bedroom property with 14 panels
Around £9,837
Other things to consider in upfront cost
Remember that a home battery storage system is for the long-term. You want a system which will help save as much money as possible over as long a time frame as possible.
Pay attention to the following when choosing a battery storage system:
-
Warranty / design life
Most home battery storage systems come with a manufacturer’s warranty, and will have a specified design life. (Note that those two figures aren’t necessarily the same length of time – design life will typically be longer than a warranty period.)
So, check that the system’s warranty / design life is in line with the anticipated savings to cover its cost.
-
Depth of discharge (DoD)
DoD refers to the amount, in percentage terms, of battery capacity which can be discharged safely.
For example, let’s say a 12kWh battery has a DoD of 85%.
85% of 12kWh gives you a total of 10.2kWh. So, in practice, you can only use 10.2kWh of battery capacity before it needs to be recharged.
Batteries with a higher DoD will allow you to get more out of your battery. As a general rule of thumb, 80% DoD should be a minimum for home batteries. Premium products may go up to 100% DoD.
In the long-run, it might be worth spending a little extra cash upfront on a battery with higher DoD.
2. Payback period
Otherwise known as ‘break even point.’ Payback period refers to the time it takes to make enough savings to cover the upfront cost of your system.
Think of it like this.
Let’s say you spend £11,500 on a solar PV and battery storage system.
You save £11,500 on bills over seven years. Your payback period is… seven years.
You save £11,500 on bills over eight years. Your payback period is… eight years.
You get the idea.
Calculating your payback period is essential to make sure you choose a system which will save you money.
Other than upfront cost mentioned above, here are a few other things you need to factor into your payback period:
- Cost of electricity (if you’re storing cheaper electricity from the grid)
- Average use of electricity (factoring in seasonal variations, addition of high-powered devices, etc.)
- Generation of renewables (if you have installed renewable technology)
Let’s delve into some of these in a bit more detail.
3. Electricity usage
Knowing roughly how much electricity you use is the next key step towards sizing a home battery which will save you money.
Electricity usage is measured in kilowatt hours (kWh).
Let’s say you have a washing machine with a 1500W (1.5kW) power rating. You use it for three hours per week. That gives you a total weekly usage of 4.5kWh.
Use this simple formula to calculate the electricity usage of any electrical household device:
Power (kW) x no. of hours used = usage in kWh
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Monitoring electricity usage
Fortunately, keeping track of how much electricity you use has never been easier.
For monitoring overall household usage, a smart meter will suffice.
Meanwhile, for individual devices, you may want to consider using smart plugs.
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Adding high-powered devices
Your electricity usage may change over time as you add new electrical devices in your home.
New washing machine? New dishwasher? Lucky enough to have a hot tub?
Make note of how much electricity these devices will use.
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Seasonal variations
Think about how your electricity usage will change throughout the year.
For instance, average UK electricity usage tends to spike during December and January, and then drop over the summer months.
If you have a heat pump, your electricity will increase whenever you heat your home.
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Sizing a suitable home battery storage system
Here’s one idea for sizing a suitable home battery.
Make a rough calculation of your peak daily electricity usage during the course of a year; this will likely be during the height of winter.
You can then choose a battery storage system with at least enough capacity to cover said peak electricity usage. This way, you can get the most out of your battery storage system, even when your electricity usage is at its highest.
4. Cost of electricity
We know what you’re thinking.
‘A home battery storage system is supposed to save me money on bills. Why do I need to think about the cost of electricity?!’
Allow us to explain.
Let’s say you don’t have the means to install solar PV panels. Perhaps, you don’t have the roof space. Or maybe, you can’t afford a solar installation.
Standalone battery storage is a viable alternative, especially for those on a smart time-of-use tariff.
Charge your battery during off-peak hours when electricity is cheaper, such as overnight. You can then use that stored energy to power your home during more expensive peak hours.
This way, you can avoid more expensive electricity charges.
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For example…
... let’s say you live in the northeast of England and are on Octopus Energy’s Agile tariff.
During June 2024, the average electricity price during peak hours is 30p per kWh. Meanwhile, the average electricity price during off-peak hours is 15.8p per kWh.
In theory, this means you could save an average of 14.2p per kWh of electricity used, assuming you charge and discharge your battery strategically.
If standalone battery storage is for you, think about how much electricity your property uses during peak electricity hours. Choosing a battery with enough capacity to cover this usage will help you maximise the money you can save on bills.
-
Even if you don’t have a standalone battery…
… factoring in electricity prices could still be important.
If you have solar, there will be days when your panels generate little energy. In this case, you may want to fill your battery up with cheap electricity from the grid to make up for the lack of solar.
-
Bear in mind…
… nobody has a crystal ball and can’t say for sure what future electricity prices will be.
Electricity prices depend on:
- Your supplier
- Your tariff
- Price caps
However, getting a rough calculation will still help you size the right home battery storage system.
5. Solar PV
Home battery storage coupled with renewables is the perfect combination.
You have a means of generating clean energy, as well as a means of storing it for when you need it most.
Note that…
… other renewable technology can be combined with battery storage: wind turbine for home, hydroelectric generator, etc.
However, due to scalability and relatively low cost, solar PV panels tend to be the renewables of choice for homeowners.
So, for the sake of brevity, let’s stick to solar panels for now.
Solar and storage
To make the most of your solar PV panels, you need sufficient battery storage capacity.
Otherwise, a lot of the solar energy you generate will be wasted.
You need to know the peak power of your solar array. This is measured in kilowatt-peak (kWp). This number tells you the maximum amount of energy your panels can produce in ideal conditions. (I.e., well positioned panels in direct sunlight.)
When sizing battery storage to complement your solar array, consider choosing a battery with at least enough capacity to store your panels’ kWp.
This means on days when your solar panels are generating as much energy as possible, you’ll be able to store as much of it as possible.
What about days when you don’t generate much solar?
Inevitably, there will be days when your solar panels generate little energy, such as during cloudy and overcast weather.
On days like these, you could consider storing cheaper electricity from the grid to make up for the solar energy you don’t generate.
In short, your home battery storage system can be a mix and match between solar, and a standalone battery.
If you’re not sure about solar…
… check out this solar panel calculator from Energy Saving Trust. This will help you determine what kind of solar PV array is right for you.
So, can a home battery storage system really save you money?
With thorough consideration, the right home battery storage system really can save you money. Not to mention you can significantly reduce your carbon emissions.
All things considered, it’s near-impossible to size a home battery storage which will exactly meet your needs. Your energy needs may change over time. You don’t know what the price of electricity will be in 5, 10, 15 years’ time.
However, you can get a system which is as close as possible to meeting your needs, if you do your homework.
Consider that upfront cost, calculate that capacity, and size up that solar.
This will give you the best chance of choosing a home battery storage system which will save you money in the long run.
Good for you. Good for your bills. Good for going green.
Is Having a Good Credit Score Important For Getting a Mortgage?
Yes, having a fair or good credit score is very important when applying for a new or existing mortgage. Your credit score is one of the things that mortgage brokers, lenders and banks look at when determining your eligibility, including other factors such as your income, equity in your current home, employment status, age and current debt levels.
By having a good or fair credit score, it not only boosts your eligibility for a mortgage, but can help you access the best mortgage rates on the market because you are deemed to be a safer person to lend money too. Over the course of the mortgage term, this could help you save hundreds or thousands of pounds per month on your mortgage bills.
Based on rates as of May 2024, a good credit score customer can pay 4.64% per month on their mortgage, compared to someone with bad credit who might pay 7.3% (Source: SimplyAdverse.co.uk)
What is a Credit Score and Why is it Important?
A credit score is a numerical value which gives an indication of how good you are to lend to - for products including car finance, mortgages, credit cards and loans. You are automatically given a credit score in the UK when you turn 18 and it is a score that you build up over time by paying off different things like credit card bills, utility bills and even mobile phone bills.
With your score ranging from 0-999 (higher is better), your credit score does not usually stay still, it is something that improves or decreases over time based on how well you are paying off your current debts and bills.
A credit score is important because it is essentially your ticket to financial freedom and the ability to borrow money through credit cards, get a mortgage and buy a house or even use car finance and buy a car. When it comes to credit cards and personal loans, credit checks are pretty much standard with every application. Without a good credit score, you will struggle to get access to mainstream financial products needed to live your life.
But with a bad credit score which is achieved by missing lots of payments over a long period of time, not only is it hard to get access to credit and finance, but you will always suffer by paying very high rates of interest.
How is a Credit Score Formed?
Credit score information is managed by credit reference agencies such as Experian and Equifax and when a mortgage broker or lender wants to check your score, they will usually pay one of these agencies a small fee each time.
The information about you is managed in real-time, so if you miss a payment today, if you will impact your credit score tomorrow - and so all potential lenders and creditors have an up-to-date insight into your financial position and will not lend to you if they are seeing recent defaults and payments in arrears.
Your credit score is made up of multiple things including:
- Payments history (35%)
- Amounts owed (30%)
- Length of credit history (15%)
- New credit (10%)
- Credit mix (10%)
Does My Credit Score Affect My Remortgage?
Yes, your credit score, whether it is good or bad will affect the rates you pay when you remortgage.
When you get a mortgage, it is often for a few years, such as a 2-year fixed or 5-year variable and after this period expires, you get moved onto the Standard Variable Rate (SVR) which is often very high. So it is common for people to remortgage under fresh terms, but if their credit score is worse since their first mortgage, the rates and terms could be significantly worse or they may struggle to get approved.
Does it Matter if My Credit Score is Getting Worse and I Need a Mortgage?
Yes, it does matter if you need a mortgage but your credit score is getting worse and you are behind on various payments. To get a mortgage and qualify for the best rates, you should have a stable income, employment, not more debt than you can handle and a good or fair credit score.
There are a number of things you can do to maintain your credit score or build it up, including:
- Using credit builder credit cards - this can help you get into the swing of paying off credit on time and this will help build up your score
- Join the electoral register - one of the easiest things you can do is join the electoral register for free and it adds credibility to your name and your credit status
- Close accounts you don't need - having multiple store cards or credit cards does not make your credit look good, regardless of whether you use them, potential lenders think that it is dangerous to have access to so much credit. So very simply, just remove the cards you don't use or need.
- Disassociate from people with bad credit - if you share joint accounts or credit cards with spouses or family members who have bad credit, you are often 'guilty by association' and it is assumed that you will be helping them financially, even if you are not. If you are sharing an account with someone with bad credit, simply go solo.
- Check your credit score regularly - you can check your credit report for just £2 or sign up with one of the credit reference agencies who will send you monthly updates or you can check on demand. Being on top of your credit score can be very useful to get that number as strong as possible.
Do Bridging Lenders Care About Your Credit Score?
Interestingly, not as much. For bridging lenders, they look more at the value of the property you are borrowing against or for and its potential value. Whilst some lenders and brokers do consider credit scores, it is not as vital to be approved and funded. Some providers just don't want to see recent arrears or bankruptcy, but some lenders offer bridging loans to help people come out of these circumstances, so there is certainly lenience.
What Jobs Are There For Accountants in Property Management?
Accountants play a pivotal role in the property management sector, contributing their financial expertise to various areas of the industry.
From property development finance to construction finance and bridge finance, accountants are integral to ensuring the financial health and success of property ventures.
Let's delve into the diverse career opportunities available for accountant services in property management in the UK.
1. Property Development Finance
In property development, accountants are tasked with managing financial aspects throughout the development lifecycle. This includes assessing project feasibility, budgeting, financial forecasting and overseeing costs to ensure projects remain within budgetary constraints.
Accountants also play a vital role in securing financing for development projects, liaising with lenders, and optimising financial structures to maximise returns on investment.
2. Construction Finance
Accountants in construction finance are responsible for managing the financial operations of construction projects. This involves budgeting, cost control and financial reporting to monitor project expenditures and ensure adherence to budgets.
Accountants work closely with project managers and contractors to track costs, analyse variances and implement cost-saving measures to enhance project profitability.
Additionally, they play a key role in managing cash flow, invoicing and procurement to maintain project liquidity and financial stability.
3. Bridge Finance
Bridge finance, also known as bridging loans, provides short-term financing to bridge the gap between the purchase of a new property and the sale of an existing property.
Accountants specialising in bridge finance assess the financial viability of bridge loan transactions, evaluating risks and returns to determine optimal financing structures. They work closely with lenders and borrowers to structure loan agreements, conduct financial due diligence and ensure compliance with regulatory requirements.
Accountants also monitor loan performance, manage repayment schedules and mitigate financial risks associated with bridge financing.
4. Financial Analysis and Reporting
Accountants in property management are responsible for financial analysis and reporting, providing insights into the financial performance of property portfolios and investment projects. This involves preparing financial statements, conducting variance analysis, and providing financial forecasts to support strategic decision-making.
Accountants also assess investment opportunities, perform financial modeling and evaluate risk-return profiles to optimise investment strategies and enhance portfolio returns.
5. Tax Planning and Compliance
Tax planning and compliance are critical aspects of property management, and accountants play a key role in ensuring compliance with tax regulations and optimising tax strategies to minimise tax liabilities.
Accountants advise property developers, investors and property management companies on tax-efficient structures, capital allowances and tax incentives available in the property sector.
They also assist with tax planning for property acquisitions, disposals and restructurings, helping clients navigate complex tax issues and maximise tax savings.
6. Financial Management and Control
Accountants in property management are responsible for financial management and control, overseeing financial operations, internal controls and risk management processes.
They develop financial policies and procedures, establish budgetary controls, and implement internal audit programs to safeguard assets and ensure compliance with financial regulations.
Accountants also monitor key performance indicators, assess financial performance against targets, and implement corrective actions to address variances and optimise financial outcomes.
Diverse Career Opportunities
Tthe property management sector offers diverse career opportunities for accountants, spanning financial analysis and reporting, tax planning and compliance, and financial management and control.
Accountants play a crucial role in managing the financial aspects of property ventures, ensuring financial viability, maximising returns on investment and mitigating financial risks.
With your financial expertise and specialised knowledge, find your next role to see how you can contribute to the success and sustainability of property projects and portfolios in the UK.
How Important Is Energy Efficiency When Buying A New Home?
When scouting for a new home, many factors are weighed up, from location to size. However, an increasingly important consideration is the home's energy efficiency.
Whether the property has energy efficient features including windows, doors, roofs, solar panels, boilers and more can be important to understand the running costs and also if they require upgrades.
Energy efficiency not only impacts the environment but also significantly affects your wallet. Let's look into why energy efficiency should be a top priority when purchasing a new home.
Long-Term Cost Savings
Reduced Utility Bills
Energy-efficient homes are designed to use less energy for heating, cooling, and electricity.
This reduction in energy consumption translates directly into lower utility bills. Features like well-insulated walls, energy-efficient windows, and modern heating systems can save homeowners a considerable amount of money in the long term.
Sustainability of Appliances
Energy-efficient homes often come equipped with appliances that are designed to be more sustainable.
This not only reduces energy consumption but also minimises the need for frequent replacements. For example, a high-efficiency boiler system with durable boiler parts can outlast less efficient models, offering both energy and cost savings.
Some Savings Include
Roof and loft insulation - Savings of £270 per year for an average house
Cavity wall insulation - Save up to £300 per year
Solar panels - up to £580 per year
Smart thermostats - up to £30 per year
Source: Gov.uk
Enhanced Home Comfort
Improved Air Quality and Comfort
Energy-efficient homes are better at regulating temperature and maintaining consistent airflow. This results in a more comfortable living environment with fewer drafts and cold spots. Additionally, many energy-efficient homes feature better ventilation systems, leading to improved indoor air quality.
Noise Reduction
Homes built with energy efficiency in mind often have better insulation. This not only keeps the home warm but also helps in noise reduction, creating a quieter, more serene living environment.
Environmental Impact
Reducing Carbon Footprint
One of the most significant benefits of an energy-efficient home is its reduced impact on the environment. By using less energy, these homes produce fewer greenhouse gas emissions, contributing to the fight against climate change.
Sustainable Living
Choosing an energy-efficient home is a step towards sustainable living. It reflects a commitment to reducing energy consumption and relying on renewable energy sources, making it a responsible choice for the environment.
Increased Property Value
Future Resale Value
Energy efficiency is not just a current trend but a long-term shift in homebuyer preferences. Homes with energy-efficient features tend to have a higher resale value and add value to a property. This is because potential buyers recognise the benefits of lower utility costs and the sustainability of the property.
Attractiveness to Buyers
As awareness about climate change and environmental sustainability grows, more buyers are looking for homes that align with these values. Energy-efficient homes are increasingly becoming a top choice for environmentally conscious buyers.
Conclusion: A Smart Investment
In summary, the importance of energy efficiency in buying a new home cannot be overstated. It offers a range of benefits, from cost savings and increased comfort to environmental protection and enhanced property value. When considering your next home purchase, give energy efficiency the attention it deserves. It's a decision that pays off in the long run, for both your wallet and the planet.
What Types of Finance Can Hotels Use To Raise Capital?
Like most businesses, Hotels often rely on cash flow and money coming in and out in order to run effectively. During slow periods, the use of finance can be essential to keep the hotel afloat and make it cash healthy, especially to pay suppliers, partners and their staff. Or perhaps, a hotel may be looking for finance to fund its expansion.
Where immediate cash is not available, the hotel can use its reputation, current revenue figures or the value of its existing property as security to raise the funds its needs.
The UK's financial landscape offers several options for hotels to access liquidity and support their operations and growth initiatives, as highlighted below including:
- Traditional bank loans
- Asset based financing
- Sales and leaseback
- Government grants
- Business loans and grants
- Private equity and joint ventures
- Alternative finance
- Debt restructuring
1. Traditional Bank Loans:
Just as in many other countries, hotels in the UK can secure financing through traditional bank loans. Whether you are a romantic getaway in Hampshire, a luxury hotel in Hertfordshire or a B and B up north, these loans come with fixed or variable interest rates and are typically structured with a predetermined repayment plan. Banks may offer term loans for specific projects, working capital loans to cover day-to-day expenses, or revolving credit facilities for ongoing flexibility. The availability of such loans depends on the hotel's creditworthiness and financial stability.
2. Asset-Based Financing:
Asset-based financing is a method where hotels use their assets, such as the real estate, as collateral to secure a loan. This type of financing allows hotels to unlock the value tied up in their tangible assets. In the UK, where property values can be significant, leveraging real estate for financing purposes is a common strategy. Asset-based loans can provide hotels with a lump sum of cash, often with more favourable terms than unsecured loans.
3. Sale and Leaseback
Hotels in the UK can explore sale and leaseback transactions to release cash tied up in their properties. This involves selling a property and then leasing it back from the new owner. While the hotel retains operational control, the sale generates immediate funds. This approach is particularly attractive when the hotel has valuable real estate but prefers to focus on its core business rather than property ownership. However, hotels must carefully assess the impact of leaseback arrangements on their long-term financial obligations.
4. Government Grants and Subsidies
The UK government provides various grants and subsidies to support businesses, including those in the hospitality sector. These funds may be directed towards specific initiatives, such as energy efficiency improvements or regional development. Hotels should stay informed about available government programs and take advantage of grants that align with their business objectives. Government support can provide a crucial injection of cash, especially during challenging economic times.
5. Business Loans and Grants
In addition to traditional bank loans, hotels can explore specialised business loans and grants offered by financial institutions and government bodies. These loans may have specific eligibility criteria and terms tailored to the needs of businesses. Grants, on the other hand, provide non-repayable funds and can be instrumental in supporting innovation, job creation, or community development initiatives.
6. Private Equity and Joint Ventures
Hotels seeking substantial funding for expansion or major projects may consider private equity partnerships or joint ventures. Private equity firms can inject capital into the hotel in exchange for equity ownership, providing a significant source of funds. Joint ventures involve collaborating with external partners, such as real estate developers, to share the financial burden and risks of specific ventures. While these options offer access to substantial capital, they also entail sharing ownership and decision-making.
7. Alternative Finance Options
The UK has seen the rise of alternative finance options, including bridge finance, crowdfunding and peer-to-peer lending platforms. Hotels can leverage these platforms to raise funds from a large number of investors or lenders. Crowdfunding is often used for specific projects or renovations, and it can also create a sense of community engagement and support.
Merchant cash advances are a very popular option, allowing hotels to receive money upfront which is paid back from future credit card and debit card sales. The amount you can borrow is based on annual revenue and can be anywhere from a few thousand to a few million pounds, but makes perfect sense given the popular method of payment amongst guests.
Such funding levels provide an excellent opportunity to invest in marketing collateral, including the ability to print business card layouts customised for each department.
8. Debt Restructuring
If a hotel in the UK is facing financial challenges, debt restructuring can be a viable option. This involves renegotiating terms with existing lenders to improve cash flow and financial stability. Extending repayment periods, consolidating debts, or negotiating more favorable interest rates are strategies that hotels may pursue to alleviate immediate financial pressures.
In conclusion, hotels in the UK have a diverse range of financial options to release cash and support their business objectives. The choice of financing method depends on factors such as the hotel's financial situation, the purpose of the funds, and the risk tolerance of the ownership or management. Staying informed about available financial instruments and working closely with financial advisors can help hotels make strategic decisions to optimise cash flow and navigate the dynamic landscape of the hospitality industry in the UK.
The Secret Life Of Skilled Locksmiths: Skills, Tools, And Techniques
The key to successful locksmithing is experience. The more you work with different locks and try different techniques, the more knowledge you will have to tackle any job. Locksmiths come across all kinds of situations in their line of work, and dealing with different people from all backgrounds is a big part of that.
So, locksmiths don't just need slick locksmithing skills. They also need to be confident in dealing with people, sometimes people who are experiencing the worst days of their lives. Having up-to-date training and the latest knowledge is just part of the job.
A reputable locksmith will arrive on-site with the right tools and equipment to do the job there and then. They're the person you call when someone breaks in, or when you're locked out, you need a key duplicated, or you want a security inspection to ensure your home or office is up to scratch. But that isn't all they can do. So, what skills do locksmiths rely on to get the job done?
Carpentry
A locksmith does more than just legally break and enter. They have to interact with the doors and windows as they safely gain entry or remove an old lock. So, a locksmith understands how every aspect of the parts function. They deeply understand how the locking mechanism works and how it impacts everything surrounding it.
So, they have carpentry and metalwork skills to safely change a lock without damaging windows and doors. They might not build a new window or forge a lock, but they are skilled enough to keep everything intact as they work with your locks.
Mechanical skills
A locksmith requires a diverse set of mechanical skills. While basic hand tools are crucial, their expertise extends beyond these essentials. In addition to operating key-cutting machines, locksmiths use grinders, sanders, power saws, and even hydraulic lock breakers. They also need the dexterity to change pins, tumblers, and springs.
Locks can be fiddly things, so the ability to disassemble locks of all types to repair or replace them is a big part of the job. There are additional skills involved when it comes to automotive locksmithing, from entering a locked vehicle to dealing with an ignition switch removal or installation.
Locksmiths are also skilled in dealing with control systems. In addition to special locks and digital access control systems, they are adept in installing and repairing CCTV systems. If it forms part of a security system, ask your locksmith whether they can handle it. You might be surprised to learn just how much your local locksmith has to offer. A highly skilled locksmith can also expand on existing electronic security systems and manage panic hardware.
Practical thinking, problem solvers
There is rarely just one option available to rectify any particular situation. An efficient locksmith thinks practically to devise big solutions to major problems. Any locksmith worth their salt is a quick thinker and takes time to analyse issues before offering a solution.
Not every locking mechanism is highly sophisticated, but many are, and the key to great locksmithing is finding the right remedy to any situation to ensure your security. They won't just repair the issue. They can also provide advice on how to protect yourself moving forward.
Communication
It might not be the most obvious skill a locksmith needs, but it is one of the most important. If you need a locksmith, you may be in a heightened emotional state, which means a locksmith needs to be able to handle the situation delicately. It might be the worst moment of your life, but they are highly skilled people who always take care of jobs like this. You are in safe hands, and a great locksmith will make sure you feel that.
Look for a reputable locksmith, and when you find one you trust, keep them on speed dial and share their name and number widely. Everyone needs a skilled locksmith to call, whether it's an emergency or not. If your security system fails, you can call a locksmith to carry out repairs, upgrade the system, or conduct a safety and security inspection to recommend updates to ensure your system is doing what it needs.
Filling The Gap: An Introduction To Crack Injection For Homes
Seeing the damage to your home is tough. If you suddenly spot a crack you're sure wasn't there before, it can feel like the world is crashing down around you. Don’t worry; We’ve all been there. There is a solution.
Most cracks are non-serious and easy to repair. Crack injection is a fast, affordable way to fix wall and floor damage. Knowing when to contact an expert lets you address problems before they become serious. An expert can help you choose the repair plan that suits you and your house.
What is crack injection?
Crack injection is an affordable way to stabilise a cracked wall or floor. It involves repairing the damage using a concrete solution. An expert may fill gaps with various substances depending on the situation.
An epoxy crack injection can bond any crack larger than 0.5mm and can be applied to a home's exterior and interior. The goal of an epoxy crack injection is primarily to repair an area's structural integrity and improve its water resistance. A quality epoxy crack injection should last for at least five years.
The different types of crack
The first step to assessing whether your wall needs to be urgently repaired is understanding whether a crack is structural or non-structural. Let's look in more detail at the difference between the two types.
Non-structural cracks
Also known as cosmetic cracks, non-structural cracks may be visible, but they aren't a serious threat to your home. They are typically small (less than 3mm wide) and follow little to no recognisable pattern.
Non-structural cracks are usually the result of internal pressure on building materials. They can form in response to several factors including, but not limited to:
- Temperature change.
- Inadequate concrete mixing.
- Poor weather conditions.
- Excess moisture.
- Hydrostatic pressure.
Just because a crack is non-structural doesn't mean it should be ignored. Although the damage is non-threatening to your home in the short term, moisture may enlarge the gap over time, which is why it’s always wise to consider using a waterproof membrane to prevent water damage. Given enough time, a tiny crack can become very large, increasing the risk of severe damage. Epoxy crack injection provides a long-term, watertight solution that can prevent excess moisture from causing further damage to your property.
Structural cracks
Structural cracks can be destructive to your home and must be fixed quickly. Fortunately, they are easy to identify. Structural cracks are usually long and wide (more than 3mm in width) and can form vertically, horizontally, diagonally, or in a step formation.
Structural cracks can be caused by several factors, including:
- Poor soil conditions.
- Poorly compacted fill soil.
- Water drainage issues.
- Bad weather.
- Tree roots.
- Inadequate foundational planning.
- Vibrations from traffic or construction work.
As they usually indicate a serious foundation issue, structural cracks often accompany other unwelcome problems, such as stiff windows, sinking or uneven floors, and drywall cracking.
Structural cracks can be hazardous and should be assessed by an expert immediately. A professional can offer you the most cost-effective solution guaranteed to fix the problem for good.
How serious is the structural crack in my home?
Before deciding how to treat a problem, you must know how severe the damage is. In general, we can place structural cracks in six categories.
- Hairline cracks: less than 0.1mm (no repair required).
- Fine cracks: 0.1mm to 1mm (no repair required, should be monitored).
- Distinct cracks: 1.0mm to 5.0mm (simple repair required).
- Serious cracks: 5.0mm to 15.0mm (more complex repair; brickwork may need replacing).
- Severe cracks: 15.0mm to 25.0mm (extensive repair needed, entire walls replaced).
- Structural damage: 25mm or over (requires significant repair work, structure unstable).
When is it time to contact an expert?
If the crack in your home falls into category three or above, it's time to contact an expert. DIY solutions are never the answer. They are impractical and usually only offer a temporary solution. Getting help from an expert guarantees that your solution will be long-lasting and effective.
Not all cracks are signs of a foundational problem, but it's better to be safe than sorry. If the damage is a symptom of structural damage, it could require more extensive work. Look out for cracks that are:
- Long and horizontal.
- Long and vertical.
- Uneven floors and stiff windows.
Cracks like these indicate structural damage caused by external pressure or subsidence. In these cases, It may be necessary to supplement crack injection with slab jacking to level out the building’s foundation. Contacting an expert will help you find the most affordable long-term solution.
The Art of Home Renovation: Breathing New Life Into Old Homes
Whether you actively pursued a fixer-upper because you wanted to breathe new life into a stunning old home or it seemed like a great way to get on the housing ladder, there is an art to home renovation.
Of course, it isn't as simple as HGTV makes it look, and you should always have a well-stocked first-aid kit on hand. Still, it's an undertaking that shows you how effectively you and your partner work as a team, and the feeling at the end of the journey is like nothing else.
If the home has good bones, your biggest concern is the decorative side. You might be able to install new kitchen cabinetry and appliances, but when it comes to plumbing and electricity, you should enlist the services of a skilled professional.
You should check with your local laws and regulations to find out precisely what you are and aren't allowed to handle yourself. You will also want to enquire about the permits you need for what work. You don't want to complete a job and have to tear it down because it wasn't approved.
Flooring, roofing, and windows
The flooring can make a dramatic difference to the look and feel of your home. While covering up old wooden floors has become a common tactic, you can sand and refinish yours instead.
Not only is it a cheaper option, but it also honours the home's originality. Of course, if they are too damaged, you may have no choice but to lay new floors, but aim for flooring as similar to the original as you can find.
Old homes often have old roofs, so it's one of the first things to take a look at. If there's an attic, you will want to look around to ensure there aren't any sneaky leaks. A home inspection should highlight any issues, but it's best to take a proactive approach to such a costly component.
Windows aren't just about letting light into your home. They also play an important role in keeping your home well-insulated. You want it to keep the cold out and heat in and vice versa in the warmer months. It's an expensive move, but it is often a necessity with older homes.
It's also key to managing moisture and avoiding damp problems and mould growth. Don't forget the security aspect; a locksmith can help you secure your home with window locks. A locksmith can also help you with new door handles and locks that match the grandness of the home but are in line with your new designs.
Lights, paint, and action
Lighting plays a major role in setting the scene. You don't have to go fully modern, but updating the lighting fixtures is a great decorative move, and choosing the right pieces is an effective way to brighten the space and create a bit of drama.
Remember, lighting is a story of layers. You want to work ceiling lights in, as well as floor and table lamps. How you tie that in depends on your theme and the overall aesthetic you opt for.
Paint is one of the easiest and cheapest ways to breathe new life into an old home. It dramatically transforms the backdrop of each room and gives you a completely different space to work with.
Think about the size of each room before selecting the perfect colours, and think of the overall theme and design style you are planning. You should opt for special additives to combat mould in wet areas, and be sure to go for a low VOC paint to be as eco-friendly with your renovation as possible.
Sight lines and focal points
Older homes are often more spacious, so it can be tempting to go big, leading to a cluttered look. Instead, look to take advantage of sight lines and create focal points.
A striking lighting fixture or furniture can transform a room's dynamics and draw all of the attention (just like a dramatic person). You can use art, mirrors, desks, or just about anything as the focal point and build around it.
That might mean letting go of all that clutter – it might be hard, but be ruthless. And with the clutter gone, you can incorporate a bit of greenery to bring a breath of fresh air into the space.
Home improvement is always a time-consuming effort, and it can be a costly one if you don't make smart decisions. Upcycle furniture where you can. It's easy enough to paint old pieces and change handles. The best way to proceed is to focus on one room at a time, especially if you prefer to DIY.
Post-renovation cleaning
After your renovation, it's essential to tackle the post-renovation cleanup. Renovations often leave behind dust that can settle in hard-to-see areas, potentially containing harmful particles from paint or plaster.
Additionally, remnants like nails or wood shards can be hazardous and attract pests. Chemical residues from paints and solvents require proper ventilation and thorough cleaning to ensure a safe living environment.
While you can clean yourself, professional after-builders cleaning services can do a much more thorough job of it and ensure every nook is addressed. Conclude by updating soft furnishings, which can trap residual dust, to fully enjoy your refreshed space.