Monty Bodkin

Registered with Property118.com
Friday 13th June 2014


Latest Comments

Total Number of Property118 Comments: 784

Monty Bodkin

8:26 AM, 20th June 2019
About 11 hours ago

Tenants "homeless" if rent is unaffordable? - new caselaw

Reply to the comment left by ameliahartman at 19/06/2019 - 22:26To answer your points.
Stopping the removal of section 21.
I believe they will only react to the consequences of their actions, "No DSS" is one of those consequences. I'm also optimistic the tide is turning against all the landlord bashing. They are currently holding an ineffectual but well meaning government inquiry into "No DSS" (why they don't simply ask genuine DSS landlords like Mick Roberts or Jonathan Clarke beats me).
Working tenants can be made redundant or be sacked.
They can, but they'll have redundancy pay and or reserve funds/assets (I check) and they are statistically far more likely to gain new employment than someone long term unemployed. Plus I check what quality of employment they have. e.g An experienced nurse is a lot lower risk and more likely to get a new job than a blog writer for a housing 'charity'.
Your working tenant might sublet the property
They might, but they are less likely to than a DSS tenant.
If Section 21 is scrapped, how will you deal with subletters?
As said previously -"Only taking on new tenants who I am 99% sure I'll never have to evict." If they do scrap it I'll go to 99.99% sure I'll never have to evict and I'm already increasing rents and building reserves to cope with the extra void times that would entail.
ANY tenancy is a risk
Of course it is (no need to shout!).
It is all about mitigating that risk.... Read More

Monty Bodkin

7:52 AM, 20th June 2019
About 11 hours ago

Tenants "homeless" if rent is unaffordable? - new caselaw

Reply to the comment left by ameliahartman at 19/06/2019 - 22:26
It's all about risk management.

I'll keep it simple and the figures rounded so non-landlords can understand;

*DSS tenants are twice as likely to be evicted.
*They are twice as likely to be in arrears.
*They are using the property 3 times as much as tenants out at work all day.
*They require twice as much management.

(There is a lot more to it than that but I'm keeping it simple.)

Now that extra risk and work costs.

In the past, DSS rates were set at the average for the area. So a landlord with a below average property could charge a premium for that extra risk and work, if so minded.

Then they changed it to the lowest 30th percentile. ie DSS rates only covered the rent for the worst third of rental properties in an area. Landlords could still make it work if they had properties in the lowest 10th percentile or they had the numbers and a big attitude to risk and were prepared to put the work in.

And then there's the good bit, they capped the DSS rates!
So what was the lowest 30th percentile was gradually eroded to the lowest 25th, 20th or even 10th percentile in some areas. It just ain't worth doing anymore for most landlords.

Not to mention needing an encyclopaedic knowledge of the benefits system and a huge bureaucracy pain threshold.

I genuinely have some DSS tenants 'cos they've been with me decades and I'm not completely heartless. But one more bit of daft legislation, landlord licensing scam etc could just tip the balance.

I'm certainly not taking any more DSS tenants on -It's business, not discrimination.

(N.B Keeping it simple and figures rounded so non-landlords can understand)... Read More

Monty Bodkin

20:57 PM, 18th June 2019
About 2 days ago

Tenants "homeless" if rent is unaffordable? - new caselaw

Reply to the comment left by ameliahartman at 18/06/2019 - 02:02
"What are WE doing to protest about the proposed abolition of Section 21? We are all against it, it would ruin our businesses, so what are we doing to stop it?

I don't know about the WE/OUR BUSINESSES bit, but as someone who is genuinely a landlord, this what I'm doing;

*Lowering my LTV.
*Increasing rents. (If I go bust, it's not doing my tenants any favours)
*No new DSS tenants.
*Gradual phasing out of existing DSS.
*Boycotting B&Q who support Shelter ...and others who do.
*Selling up as appropriate.
*Building up reserves.
*Fixing some mortgages long term to balance my lending.
*Making sure all properties are individually stress tested to current lending requirements -and way beyond.
*Getting out of licensing areas (last one left in Nottingham!).
*Only taking on new tenants who I am 99% sure I'll never have to evict.
*Not converting or building any new homes, or ever likely to do so again.
*Spending my working capital on improving my own homes for once.
-And I'm really enjoying spending it, I've finally got Sky telly, just like my DSS Tenants!... Read More

Monty Bodkin

8:45 AM, 15th June 2019
About 5 days ago

Should landlords have the right to refuse DSS tenants?

For anyone who isn't actually a portfolio landlord and who doesn't understand Whiteskifreak's pertinent remark about "stress test", here is a quick bluffers guide;

https://www.themortgageworks.co.uk/lending-criteria/portfolio-landlords

(TLDR; thirty quid a month per property on a portfolio of 37 doesn't cut it.)... Read More

Monty Bodkin

22:07 PM, 13th June 2019
About 7 days ago

Should landlords have the right to refuse DSS tenants?

Reply to the comment left by ameliahartman at 13/06/2019 - 20:37
"We now have 37 properties"

"We make on average £30 profit per property per month, at the moment. All of our properties together make our income"

Just to point out the obvious;

37 properties x £30 = £1,110 per month income.... Read More