I was recently asked about buy to rent and having thought about the conversation afterwards I was amazed at how indoctrinated into the jargon of the financial industry I have become. This was to the caller a simple mix of perfectly reasonable English e.g. I want to buy a property and rent it out. Buy to rent is just as much a perfectly reasonable a name as buy to let, but we have so much jargon in the industry it is easy to misunderstand someone and go off at a tangent.
Buy to rent could be confused with Rent to buy, however the latter is a scheme designed for tenants to rent a property with the intention of buying, whereas a buy to rent landlord may have no intention whatsoever of selling a property to his tenant. Continue reading Buy to Rent
Tenants need to know about how to cope in an emergency to protect rental properties from risk of damage in the cold weather, urges the National Landlords Association.
Many rental properties were damaged by flooding after burst pipes because tenants did not know how to switch off the water supply, claims the NLA. Continue reading Tell Tenants How to Deal with Emergencies, Urges NLA
There is a lot of talk these days about tenants needing security of tenure and organisations like Shelter would like Government to change legislation to force landlords to give tenants longer tenancies.
I acknowledge that tenants do need security and, as a landlord, I want to keep my tenants for as long as possible. Many people need to put down roots and build a life in an area but it is often difficult for them to do this when they are forced to move to a new home every six or twelve months. Continue reading We Need More Trust Not More Legislation and Regulation
A key skill for landlords is knowing how to work out whether an investment is profitable.
Yield is the tool that gives the required result – it is worked out by taking the rent received on a property in a tax year as a percentage of the cost of the investment.
For buy to let landlords, that simple calculation gives the gross yield – that’s without taking running costs in to account.
For example, an average home costs around £165,000, while average rents are around £713 per month. Continue reading Working Out if a Buy to Let Property is Profitable
When a tenant has a beef with their landlord, I’m the guy they go to. My job is to either negotiate or prosecute, depending on the circumstances. This occasional and random series aims to let landlords know the common complaints that are made about them, the laws that cover them and how to deal with it.
My flatmates and I have big rows about bills and I am freezing and the landlord is ripping us off.
I can’t tell you how many times I get this complaint.
You let out an HMO to 5 or 6 tenants and they bring many issues with them- as so many HMO tenants do. There are 2 house styles for dealing with it:- Continue reading Hands on HMOs – Don’t Shoot the Messenger #2
It’s all too easy to put down the cheapest flooring possible when furnishing a rental property. But unless you want to be continually replacing it between short lets, it is worth spending a bit of money ensuring it will look good and last. Continue reading Carpeting and flooring in your buy to let
Mark Alexander - founder of Property118.com
One of my favourite sayings is that optimists see the glass as half full and look for the opportunity in every difficulty, pessimists see the glass as half empty and look for the difficulty in every opportunity and entrepreneurs are opportunists who take positive action regardless of market conditions, taste the contents of the glass and quench their thirst by drinking the contents if it tastes OK. The fourth group are of course the economists. They analyse the problem for a couple of years before reaching their conclusion that the glass was too big.
The landlords I speak to fall into three distinct camps;
- those who are sitting on large chunks of cash and carefully snapping up bargains,
- those who are stuck in a rut because they can’t afford to sell, they can’t refinance and they are worried sick about interest rate rises and
- those who are oblivious to what might happen as we pull out of recession or are simply burying their head in the sand. Continue reading Has the credit crunch been good or bad for buy to let landlords?
Cannabis growers are a serious problem
Police, landlords and letting agents are in the front line of the fight against drugs in towns and cities across the UK.
Cannabis factories are a real problem in residential and commercial rental properties with a dozen or so raids a day on suspected growers.
To highlight the problem, here is a snapshot of cannabis related incidents that have all happened this week: Continue reading Landlords in the front line in war against drugs
Should you pay off B2L mortgage?
Buy to let landlords often wonder if paying their mortgage off early is a good investment.
The answer is it depends on the borrower.
Most of us prefer not to have debt – but as a property business, landlords need to recognise some debt is good and some is bad. Continue reading Should you pay off that buy to let mortgage?