Mayfair Group
Global Investments – Local Reach
Mayfair Group has developed a unique and simple way for investors to capitalise on the Global Real Estate downturn.
We Specialise in hands free investments that can provide investors Gross Yields of up to 25% per Annum. Our Investment properties offer up to 50% equity from day one thus giving our investors strong return on investment.
For further information please Contact
Us.
USA Foreclosure Property Rental FAQ'S
If you have any questions that are not answered in this detailed frequently asked questions pack,then please do not hesitate to contact us.
Q. Do you offer rental management for American property?
A. We aim to provide a hassle free property owning experience for our clients and therefore our properties are offered with full rental management services. Our appointed management company will take care of headaches of dealing with tenants and when your lease expires, will find new ones.
Q. What kind of rental yield can I hope to achieve from my investment?
A. Because of the low purchase price of the properties, we are able to achieve extremely high rental yields of up to 25% in the first year as your summer and winter tax is included in the price. In the second year the expected rental yield will be between 15% to 20% . We feel that this provides excellent cash flow for you and ensures that you can recoup the total investment in five years or less.
Q. Why is the second year rental yields lower?
A. The second year yields and there after are lower because the summer and winter tax have to be paid by you.
Q. What is the rental per month for these properties?
A. For a 3 bed, rentals are around $750 to $900. For larger 4 and 5 bedroom houses, this could be $1,000 to $1,400 per month. Right now the strong dollar is in your favour in terms of these rentals.
Q. Why are the management charges so cheap at just 10%?
A. This is because we are able to leverage economies of scale with our US letting agent partners to get you the best deal. This ensures that you can maximise your net rental yields and cash flow.
Q. What size houses are easiest to rent?
A. Three bedroom houses with 1 or 2 bath rooms.
Q. What is the rental market like in Detroit?
A. There is no shortage of tenants in fact the rental market for landlords at the moment is buoyant. This is mainly due to three reasons. Firstly, Americans are scared of buying property for fear of negative equity. Secondly, there is a large increase in employment due to government aid and investment in the city. Thirdly due to the fact that currently the banks are not easily lending to home owners or investors..
Q. I know unemployment is increasing in the US and that may affect my tenant's ability to pay rent. Is there any way to avoid this?
A. Many landlords are taking advantage of the 'Section 8' scheme whereby the government covers the majority of the rent. Irrespective of that, we source our property close to major employment centres and in desirable locations in the city to ensure that our properties will always be popular for rent and resale.
Q. That sounds good but do I risk getting bad tenants as sometimes it happens with the UK's 'DSS' scheme?
A. The American system is more closely monitored than the UK's DSS housing scheme and Section 8 applicants and tenants are required to abide by the rules. Failure to do this does result in eviction and permanent removal from the Section 8 scheme. This helps ensure that tenants respect the home they live in and the Section 8 scheme in general has very few evictions.Section 8 covers up to 95% of the rental amount and in the cases where, 60% or 70% of rent is covered, the landlord (or rental management company) collects the difference from the tenant. If the tenant does not pay, then after 30 days Section 8 officers are brought in to rectify the situation. Those paying a portion of the rent are generally employed but earn less than the designated median wage for an area.
Q. I have heard that a lot of people have lost their jobs in Detroit, so how can people afford to rent these properties?
A. Job losses throughout America are an increasing problem and for those that earn under the median income or who are struggling financially, the government has put in place the Section 8 scheme. We source our homes in stable neighbourhoods that are located close to employment centers such as hospitals, the local universities etc so that a an economically stable tenant is going to be found.
Q. Do I need to get home insurance?
A. Yes, we include the first years insurance in the price for you.
Q. What does the insurance Cover?
A. It covers you for fire, natural disaster, theft and personal liability cover.
Q. How long does it take to place a tenant?
A. Our management companies have a lot of people that are waiting to be housed through the section 8 scheme. Normally this is a back to back process upon the refurbishments being completed. The management company starts work on placing a tenant the day we have confirmation that we have won the bid.
Q. How will I receive my rental income?
A. The rental income from your property will be paid monthly into your preferred bank account.
Q. Do I need to furnish the property?
A. All properties are rented on an unfurnished basis. This is standard practice in the US where the majority of tenants tend to furnish rental properties themselves (including white goods).
For further information contact us on info@mayfair-group.com