[Finance] Buy to Lets

[pure_white]

I thought you talking about the club buying players then letting them out on loan!

 

[SK1NT]

I have one rental property. A little 1 bed which i bought in 2005. I disagree with the concept of renting but i became an accidental landloard as my misses and i wanted to move into a property together soon after i just bought. (owning 1/2 rentals i suppose it ok) people who own 10s of properties is not right)

Anyway as most have said renting is just sooo difficult. You are taxed massively now on the rent. You have the estate agency fees. Previously you only needed to do a gas Safety Cert now you need the full Electric one too. Just this is an extra £300 a tenancy term. Inventory costs etc etc. Cost me £1000 to update my fuse box. On top of all this there are the tenants that leave the place a shit hole, the threats, the grief. I have had to take days off work several times to redecorate after awful tenants (I am a good landlord) The calls on sat eve or a Sunday morning because something has gone wrong and they demand it to be fixed instantly.

The positive is after 25 years i will own it, but i do not and will not make any monthly profit until then. In fact i am out of profit each month. I am happy i kept this place and grinded through the really hard times however i would never get another rental. It has just been made too hard in recent years.

 

[Papak]

All of the above, tax benefits eroded, both gas and electrical safety checks, I use an agent on a finder's fee only (Half the first months rent plus VAT) and I now insist on a 12 month minimum contract with no break having had what looked on paper the perfect tenant apply based on earning multiples who decided to leave after only 6 months and buy due to the stamp duty holiday.

I also go for the top of the market, I offer a nice period property in a fantastic location, quality white goods included and I have trades available at relatively short notice to sort out any issues.

Voids are unavoidable (excuse the pun) and it is a tough way to earn a bit of extra income.

I also put a bottle of Moet in the fridge for any new tenants to make them appreciative and hopefully alleviate any trivial issues down the line.

 

[mikeyjh]

I have one rental property. A little 1 bed which i bought in 2005. I disagree with the concept of renting but i became an accidental landloard as my misses and i wanted to move into a property together soon after i just bought. (owning 1/2 rentals i suppose it ok) people who own 10s of properties is not right)

Anyway as most have said renting is just sooo difficult. You are taxed massively now on the rent. You have the estate agency fees. Previously you only needed to do a gas Safety Cert now you need the full Electric one too. Just this is an extra £300 a tenancy term. Inventory costs etc etc. Cost me £1000 to update my fuse box. On top of all this there are the tenants that leave the place a shit hole, the threats, the grief. I have had to take days off work several times to redecorate after awful tenants (I am a good landlord) The calls on sat eve or a Sunday morning because something has gone wrong and they demand it to be fixed instantly.

The positive is after 25 years i will own it, but i do not and will not make any monthly profit until then. In fact i am out of profit each month. I am happy i kept this place and grinded through the really hard times however i would never get another rental. It has just been made too hard in recent years.

I'm not sure why you would "disagree with the concept of renting", people need to rent, there are dozens of reasons why they need to do so. I'm in that group of people who you describe as 'not right', obviously I disagree! I provide the aforementioned service and do it to the best of my abilities. The things you describe in the second paragraph are absolutely normal, they are the costs of running a business and providing a home for someone. That's the problem for 'accidental landlords' and people who think they can just get a tenant to pay off the mortgage and get a free and easy income (not aiming that at you), it's a lot of hard work and/or expense. We don't have mortgages on any of our houses, we do all out of tenancy maintenance and refurbishment ourselves pay ourselves the most modest of modest salaries (and a little interest income) and then the company doesn't turn too much of a profit. That's the reality, if you're expecting to make handsome profits each month on a single house or flat, you're going to be disappointed.

For the record, your gas safety is every year and should cost in the region of £60, the EICR is only every 5 years and should be < £100 unless you need work.

 

[Justice]

I have one rental property. A little 1 bed which i bought in 2005. I disagree with the concept of renting but i became an accidental landloard as my misses and i wanted to move into a property together soon after i just bought. (owning 1/2 rentals i suppose it ok) people who own 10s of properties is not right)

Anyway as most have said renting is just sooo difficult. You are taxed massively now on the rent. You have the estate agency fees. Previously you only needed to do a gas Safety Cert now you need the full Electric one too. Just this is an extra £300 a tenancy term. Inventory costs etc etc. Cost me £1000 to update my fuse box. On top of all this there are the tenants that leave the place a shit hole, the threats, the grief. I have had to take days off work several times to redecorate after awful tenants (I am a good landlord) The calls on sat eve or a Sunday morning because something has gone wrong and they demand it to be fixed instantly.

The positive is after 25 years i will own it, but i do not and will not make any monthly profit until then. In fact i am out of profit each month. I am happy i kept this place and grinded through the really hard times however i would never get another rental. It has just been made too hard in recent years.

If your agency is charging you £300 per year for an EICR they are ripping you off. It’s valid for five years or change of tenancy.

 

[BN9 BHA]

If your agency is charging you £300 per year for an EICR they are ripping you off. It’s valid for five years or change of tenancy.

I’m not surprised that he’s SK1NT

 

[Uncle Spielberg]

Might want to look at a let to buy. I have done this for a few NSC members recently. Happy to help

 

[SK1NT]

If your agency is charging you £300 per year for an EICR they are ripping you off. It’s valid for five years or change of tenancy.

Was including the Gas Cert in that too.

 

[SK1NT]

I'm not sure why you would "disagree with the concept of renting", people need to rent, there are dozens of reasons why they need to do so. I'm in that group of people who you describe as 'not right', obviously I disagree! I provide the aforementioned service and do it to the best of my abilities. The things you describe in the second paragraph are absolutely normal, they are the costs of running a business and providing a home for someone. That's the problem for 'accidental landlords' and people who think they can just get a tenant to pay off the mortgage and get a free and easy income (not aiming that at you), it's a lot of hard work and/or expense. We don't have mortgages on any of our houses, we do all out of tenancy maintenance and refurbishment ourselves pay ourselves the most modest of modest salaries (and a little interest income) and then the company doesn't turn too much of a profit. That's the reality, if you're expecting to make handsome profits each month on a single house or flat, you're going to be disappointed.

For the record, your gas safety is every year and should cost in the region of £60, the EICR is only every 5 years and should be < £100 unless you need work.

Everyone's a critic... Renting pushes up house prices as there are less houses available to buy (FACT) I don't like seeing people struggle own a home. If you are in the category of owning "a lot" of rental properties then yes i do disagree with it, although i understand that you are providing a service and being a good landlord.

I agree with the really hard work renting. I have rented for over 15 years. Renting is not like printing money, it's for the long run and it is a lot less profitable that a decade and more ago. Once mortgage free then you get the rewards. I guess buying a property outright is probably the best place to put your money for now with interest rates so low.

I can't remember what i paid but i think it was about £125 for gas and elec. My flats in SW London, i don't know if this makes a difference.

 

[Justice]

Was including the Gas Cert in that too.

I was just surprised when you said per annum EICR I charge on average £250 anyone who does it for peanuts isn’t doing it properly. The gas cert is £60-80 per annum,EICR every five years. Agents are slimy shits looking to make a quick buck on everything, Say I quoted £2000 for a job they quote £2500 to the landlord they work against you not for you.

 

[Herr Tubthumper]

I was just surprised when you said per annum EICR I charge on average £250 anyone who does it for peanuts isn’t doing it properly. The gas cert is £60-80 per annum,EICR every five years. Agents are slimy shits looking to make a quick buck on everything, Say I quoted £2000 for a job they quote £2500 to the landlord they work against you not for you.

I think it’s incredibly harsh to say agents are “ slimy shits looking to make a quick buck on everything”. I have been using an agent in Brighton, one of the bigger ones, for a long long time and I wouldn’t say they work against me at all. I wouldn’t say they work for themselves other than they are a business which is run like a business. There’s good and bad in all sectors of the economy.

 

[SK1NT]

I was just surprised when you said per annum EICR I charge on average £250 anyone who does it for peanuts isn’t doing it properly. The gas cert is £60-80 per annum,EICR every five years. Agents are slimy shits looking to make a quick buck on everything, Say I quoted £2000 for a job they quote £2500 to the landlord they work against you not for you.

you're spot on there... to avoid this i arrange the plumbers, sparkies etc... which makes a lot more work but saves as you say a fair bit.