Another thing to add, some tenants like to cook, err, “aromatic” food, and the smell works its way into EVERYTHING in the property. Not a problem during the tenancy but it may well put off new tenants. I’ve ended up redecorating just get rid of cooking smells.

Once again thanks for the information, makes interesting reading. We are only looking in our local area and thinking about using an agent to do most of the work. The one we have spoken to so far is asking for 10% on the monthly rental and £250 finders fee, does that sound reasonable??

Thanks

I’ve managed 2 houses in E London for last 3 years that owned by a friend living abroad.

BTLs only better than a pension if you get house price inflation. so far so good but be warned. the tax benefits of pensions are pretty impressive.

Try to avoid paying a managing agent – that 10% wipes out half your income profit and they wont do a very good job.

Treat all tenants as customers (not serfs) and don’t go for the last penny of rent etc. happy tenants = less hassle, damage and voids.

I went 6 months this year without a phone call but the last 3 months was new windows in one house, new bath taps, replacement shower screen, change of locks, party wall agreement for neighbour’s loft and a few other odds and ends.

And obviously, be patient.

http://blog.northwooduk.com/2014/12/ready-or-not-here-it-comes-hmrc-vs-landlords/?cmsys=1342882381&cmref=82072771363176850607

But if she puts her money into a pension, then it disappears upon her death

Only some types eg an Annuity. If I die, my wife gets 100% of my current pension fund.

MrSmith, see that article you linked to there. As I landlord I applaud this approach by HMRC. Landlords who don’t pay the correct taxes are also the landlords who don’t adhere to the licensing laws and numerous other crimes which give the rest of us a bad name. Hopefully this will shake some of the bad ones out and make things better for tenants and landlords alike. Having to pay the correct taxes is nothing to be scared of in terms of making your choice to become a landlord or not.

we did, but not so much as a BTL but a “we’re moving out and can’t sell it so we’d better let it” kind of thing

good tenants are great. bad tenants are terrible. You MUST specify NO PETS and you MUST be prepared to enforce it. Otherwise you could end up with a house that stinks of urine & faeces, where the carpets need tearing out & burning, and the whole place needs redecorating. Not to mention the damage that dogs can do to interior doors.

Today we have just sold a BTL property. We bought close to us so that we could keep an eye on it and manage it ourselves. We are selling to release the capital for other projects. We have had good tenants and a pet dog in the property but we are dog people ourselves and met the dog before signing the lease. We also had some extra conditions added in to the lease around pet damage and had an additional pet deposit.

Overall it has provided a good return but I am not going to miss being a landlord.

BTL will be interesting when the eventual house price crash comes which it will at some point (if it’s not already started in London – yields are on the floor and even vested interest estate agents are forecasting a stagnant market/price drops).

If prices drop and yields are so low that there’s no ‘business’ model then it’s highly likely you’ll see a load of BTLs being sold in a panic – which will change the balance of supply and demand and you’ll see more drops and away we go…

All those people who have used a BTL as a pension will be selling at some point in order to realise the cash they’re going to live off:

a) they’re assuming house prices will continue to rise until that point
b) they’re assuming they won’t be selling in the middle of a bust
c) they’re assuming government can continue to boost the market – if governments were that in control of the market, why did they let the 2008 bust happen?

When ‘investments’ like BTL become fashionable amongst the general public and gain an aura of ‘you can’t lose’, it’s usually the time the wise get out…

On that note it’s worth noting that the Duke of Westminster publicly pulled out of prime London earlier in the year calling the peak, and that couple in Ashford who own 1000 BTL properties are trying to sell their portfolio…

This ^^ is all poorly informed bollocks.

When ‘investments’ like BTL become fashionable amongst the general public and gain an aura of ‘you can’t lose’, it’s usually the time the wise get out…

The general public became fully aware of BTL in about 2004 (or earlier). So it’s been too late by that mantra for a long time. In actual fact there are lots of niches where BTL still works well. As has always been the case.
It pays to study and understand your local market.

All those people who have used a BTL as a pension will be selling at some point in order to realise the cash they’re going to live off:
a) they’re assuming house prices will continue to rise until that point
b) they’re assuming they won’t be selling in the middle of a bust
c) they’re assuming government can continue to boost the market – if governments were that in control of the market, why did they let the 2008 bust happen?

Or not, as in reality keeping the BTL to live off the income is the reason you have it as a pension, only a few idiots buy BTLs expecting a value increase over a rental income. If you sell the BTL you need a good stable returning investment vehicle to create an income, errr that would be the BTL you just sold. I know lots of V old pensioner landlords whose kids are helping mum and dad manage their props to provide them with a decent retirement income.
So not many btl’s will get put on the market, not many btl owners will be affected by any nebulous price drop, and the last statement about the govt controlling the market, but not controlling the market is as ludicrous as it is self contradictory.

BTL will be interesting when the eventual house price crash comes which it will at some point (if it’s not already started in London – yields are on the floor and even vested interest estate agents are forecasting a stagnant market/price drops).
If prices drop and yields are so low that there’s no ‘business’ model then it’s highly likely you’ll see a load of BTLs being sold in a panic – which will change the balance of supply and demand and you’ll see more drops and away we go…

Aside from not knowing what makes you think you can predict the market, the effect of any price drop in purchase values may not have the effect you think.
For starters if BTLers get out then its likely lots of residential buyers will step in, which could drive a price boom. Secondly most BTLers are in it for the long term and actual house value is irrelevant if they bought before any price fluctuation they will not sell just because of declining asset value.
Rents tend to be much more stable than house prices, they lag behind house price increases, and generally hold when there are falls.

No, it’s not. The 10% is par for the course but I’ve not heard of anyone wanting a “finders fee” on top. Both will be +VAT as well. Work out what 10% + £250 + VAT is across a year.

See my earlier post about finding tenants yourself, it’ll cost you nothing but a little bit of time.

We find our tenants via Gumtree. Never had a problem (touch wood) and we get to choose who stays in our property.

dbcooper – theres only one record – and although your right in your statements , that record wont change.

trail rat, I’m not used to this, thanks.

Have you ever lived next to a house that’s rented out? – it’s awful. It’s usually badly maintained and the garden is poorly looked after. You may get a decent tenant every so often but it’s normally noisy sharers or a problem family. Over the last 10 years both houses either side of me have alternated between no problem owner occupiers & big problem tenants. Don’t do it – don’t risk inflicting nuisance neighbours on somebody.

Having seen what my sister-in-law did to the last two properties she lived in, I’d be very wary about who I was renting to…
Both basically needed gutting, and totally refurbishing inside.

However, the house next to me is rented to a slightly odd single bloke who has a cleaner and a gardener, the place is immaculate.

I guess the tenants can make/break the whole thing.

+1 dbcooper

Teef – do you need a hand lifting that huge, broad brush? It must be mighty heavy! 😉

Demographic behaviour is more likely governed by the quality of the area than the residents owner/tenant status. That said, I agree,people do look after what belongs to them a little better.

teef – Member

Have you ever lived next to a house that’s rented out? – it’s awful. It’s usually badly maintained and the garden is poorly looked after. You may get a decent tenant every so often but it’s normally noisy sharers or a problem family. Over the last 10 years both houses either side of me have alternated between no problem owner occupiers & big problem tenants. Don’t do it – don’t risk inflicting nuisance neighbours on somebody

I’m renting, I’m a well paid IT bloke with a wife and child, our house is immaculate.

There’s a million reasons people rent, it’s not always just for bad reasons.

We’re renting in goring for £1200 a month, believe be with a £2500 deposit we’re looking after the place very very well..

Demographic behaviour is more likely governed by the quality of the area than the residents

I don’t live a run down area – minimum house prices round here are £450k for a 2 bed terrace.

I’m renting, I’m a well paid IT bloke with a wife and child, our house is immaculate

As per posting:

You may get a decent tenant every so often