Tag Archives: yahoo
Airbnb popularity is a growing threat to residential landlords
The Airbnb phenomenon that is soaring in popularity is a growing issue for private sector landlords as tenants embrace the trend without checking if their tenancy allows them to do so. According to the UK’s tenant eviction firm Landlord Action the number of cases where tenants have sub-let properties without their landlord’s permission has trebled. It point out that aside from breach of tenancy agreement and additional wear and tear to the property, landlords are left exposed to being in breach of their mortgage terms and buildings insurance. The share economy is a growing phenomenon, with models such as Airbnb giving people a platform to view themselves as a business. But according to Landlord Action founder Paul Shamplina it is also enabling those who do not have the right to do so, from profiting from someone else’s asset. An example is Joy Philips, a landlord who decided to let out her West London home so she could afford to take time out to volunteer at an orphanage in Africa. She thought she had found the perfect tenant in a young doctor who wanted her home for a three year lease. It all seemed very promising until she started receiving emails and calls from her neighbours complaining about the volume of people coming and going at her house. Joy was shocked to discover that her house was not being used as a home for the young doctor, but being rented out room by room as a boutique hotel on the Airbnb website. Making thousands over the rent being paid to Joy, her tenant was breaking the no sub-letting clause in her contract. By having so many people in the house, Joy’s home insurance was also at risk of being void. She was forced to give up her volunteer work in Africa to return to the UK and got in touch with Landlord Action in the hope of getting her property back. ‘We have had concerns for some time now regarding the protection of properties which are being uploaded and offered as holiday lets via Airbnb. We continue to receive a growing number of instructions from landlords who want us to start possession proceedings against tenants who have sublet their property via Airbnb without consent,’ said Shamplina. ‘Whilst Airbnb do provide a level of protection for hosts, naturally certain conditions and limitations do apply. My concern is that there is not enough safeguarding with regards to obtaining proof from the individual who is advertising the property that they are the legitimate owner. Or, if they are a tenant, that they have consent from their landlord to rent out the property in this way,’ he pointed out. ‘We have seen cases where, quite clearly, tenants are making thousands of pounds from exploiting the service to a high volume of holiday makers on a weekly basis. In a recent case, it… Continue reading
Latest data suggests slowing in residential markets in UAE
The residential property market in the United Arab Emirates seems to be going through a period of stabilisation with some locations seeing growth and others recording a slowdown. In the first quarter of 2016 sales and rental prices in upcoming, inland neighbourhoods across the UAE are rising while in prime areas they are falling, according to the latest property report from classified website Dubizzle. It records an increase of up to 13% in sales and rental prices in emerging locations such as Al Ghadeer, Al Reef and Al Furjan, when compared to the first quarter of 2015. For example, property sale prices in Abu Dhabi’s Al Ghadeer and Al Reef rose by 3% and 4% respectively when compared to the same quarter in 2015, while rental prices for one and two bed apartments in Al Reef rose by 9% while three bed apartments in Al Reef rose 11% and in Al Furjan in Dubai rents for one bedroom apartments increased by 13%. Meanwhile, prices in more established, central areas have dropped, for example rents dropped by 10% for one and three bedroom apartments in Abu Dhabi’s Corniche when compared to the first quarter of 2015. The same trend was seen in Dubai, where sales prices for properties in mature locations such as Business Bay, Dubai Marina, Downtown Dubai and Jumeirah Lakes Towers fell by between 8% and 10%. Business Bay saw rents for one bedroom apartments fall by 5% and two bedroom apartments were down by 4% while the rental price for three bedroom apartments remained unchanged. Data from property firm Bayut also records falls in some locations in Dubai in the first quarter of 2016. Rents were down by 3% year on year and sale prices down 6%. The firm believes that as more and more households move to the suburbs, investment opportunities in areas like Dubailand and Dubai Sports City could become more enticing. It suggests that the increased popularity of these localities coupled with low property prices has resulted in rental yields as high as 9%. ‘We think Dubai’s suburbs are ideal for both new home buyers who can still benefit from low prices and investors, who can enjoy impressive rental yields thanks to these areas’ rising popularity,’ the report says. Continue reading
Office space demand increased across major Australian markets in first quarter
Demand for office space across major Australian markets is on the rise in 2016, according to new data from Colliers International. According to the firm’s latest Office Demand Index, a total of 507,799 square meters of demand was recorded in the first quarter of 2016, a 33% increase from the fourth quarter of 2015. Large businesses looking for more than 3,000 square meters of office space accounted for over 50% of the total area enquired for in the first three months of 2016, while representing just 9% of the total number of enquiries, by volume. Small businesses looking for 1,000 square meters or less accounted for almost 80% of the total number of enquiries recorded in the first quarter this year. ‘We have found that compared to this time last year, on average, businesses are enquiring for more space,’ said Simon Hunt, Colliers International managing director of office leasing. ‘On a national level, the average area enquired for as of the first quarter of 2015 was about 888 square meters. In the first quarter of 2016 it increased to 1,050 square meters,’ he added. Notable increases were recorded in Brisbane, where average size required increased to 1,287square meters in the first quarter, up from 774 square meters in the first quarter of 2015, and Canberra, which recorded a significant jump in average size enquired for from 1,167square meters to 1,942 square meters. There was also an increase in average size requirement in the Sydney CBD, from under 1,000 square meters in the first quarter of 2015 to over 1,600 square meters in the first quarter of 2016. Locations that saw a small drop in average size included Sydney Metro and Melbourne CBD. ‘This quarter, we have seen the greatest number of large businesses enquire for office space in almost 10 years, which has contributed to the increase in the average area currently in demand,’ Hunt said. ‘This trend is also flowing through to transactions. In the first quarter of 2016, we have seen an increase of more than 15,000 square meters or 22% in the amount of office space leased. Larger businesses are doing the deals at the moment and this is showing up in both transactional and demand data. In the coming months, we expect smaller businesses will also increase their activity,’ he added. According to Simon Crouch, Colliers International head of tenant advisory, much of this smaller demand had been created by the compulsory acquisition of buildings associated with the Sydney Metro project. ‘Since February 2016 we have been appointed by 10 businesses averaging 300 square meters in size who require expert advice to help them through the relocation process,’ he pointed out. Continue reading
