Tag Archives: guru

Rent to Rent Discussed on Radio 4 today in the next few minutes! Landlord Action, Latest Articles, UK Property Forum for Buy to Let Landlords

This Broadcast was meant to be last Wednesday but is instead being run today  between 12pm-1pm.

Paul Shamplina, Founder of Landlord Action will be taking to the airwaves on BBC4’s You and Yours show, to highlight the shocking risk to landlords of the latest money making strategy to sweep the property industry, “Rent to Rent”.

It’s a simple concept: Rent a house, then sub-let the rooms to sub-tenants and make as much profit as possible. Rent to Rent Discussed on Radio 4 today

This is a mushrooming phenomenon which has seen hoards of “experts” writing blogs, books and seminars on how to get started and even running courses costing up to £500 on how to bring in tens of thousands of pounds with virtually no out-lay. One such “guru” includes Daniel Burton who claimed he earned £35,000 a month from the get-rich-quick scheme.  Last week, The Guardian revealed he has gone missing, leaving tenants and landlords across London hundreds of pounds out of pocket.

The idea behind how it works involves a tenant (or “renter”) offering a landlord a guaranteed amount of rent for a set period, say three years. “This amount is likely to be less than its actual market value but the landlord, in theory, is happy because the property is let and he does not need to worry about lost rent, void periods or tenant issues for the foreseeable future” says Paul Shamplina.  The tenant agrees to look after the property, take care of maintenance issues and in some cases even carry out a refurbishment on the property. Then, the tenant sub-lets as many rooms as possible to willing sub-tenants who are happy to rent a converted lounge or dining room and live in a house shared with six other strangers. The “renter” then creams a profit on the difference between the rent he is paying the owner/landlord and the rent coming in from the sub-tenants as a result of the multi-let.

Mr Shamplina has been asked to discuss the latest craze and how landlords might get unwittingly caught up in this scam and, what they should do if they are. He comments “I have several concerns over the legal practices of this process and how it affects the very landlords it claims to ‘support’. In my view, if it is not carried out diligently the landlord loses control of the property which is where the problems begin.  I suppose I speak from being at the sharp end of dealing with evictions but I would advise any landlords entering into such an agreement to tread very carefully.”

To hear Paul’s views on rent to rent, tune in to You and Yours on Radio 4 from 12pm on Wednesday 16th October 2013.

In the pre-recorded interview Paul Shamplina mentions various tips for property owners considering Rent to Rent, one of which is not to accept Assured Shorthold Tenancy Agreement as these are not the appropriate contracts. Recently, Landlord Action announced they are now an alternative business structure regulated by The Law Society and have joined forces with The Law Department, headed by solicitor Justin Selig whose name you will recognise if you are a party to the Class Action groups fighting the West Brom Mortgage Company and Bank of Irelands decisions to increase the margins on their tracker mortgage products.

Having recognised a need for a professionally drafted commercial lease template to be readily available to Rent to Rent companies and property owners Property118 teamed up with Justin Selig to produce one.

The lease contract templates, guidance notes and notices are now available for immediate download for just £97 exclusively via Property118.com

The reason the contract templates are so competitively priced is due to economies of scale, the real cost of drafting a contract of this nature is thousands. Sufficient pre-orders of the contract template via Property118 made it viable to produce the documents and to share costs to arrive at this incredibly low figure.

If you are a property owner and you are being offered a “Guaranteed Rent” deal which allows your tenant to sub-let then this lease template is also for you as it protects your interests. If your tenant wants permission to sublet and you’re being offered a Company Letting Agreement or an Assured Shorthold Tenancy, that’s the wrong contract and should sound warning bells.
Guaranteed Rent to Rent Lease Contract Templates now available for download

Order the "Rent to Rent" lease contract template

  • Price: £ 97.00

 


Landlords Warnings – Will You Survive the Mayhem? Latest Articles

Have you read the book recently published by Mary Latham yet?Mary Latham

I’ve been talking to Mary about some of the topics in it this week and O – M – G this is going to ruffle feathers!!!

This is certainly not your bog standard “how to buy to let” book by all accounts, but if you know Mary you’d never expect that of her either. If that lady has a bee in her bonnet best stand well back I can tell you.

I have to confess to not having read the book yet as I’ve been off on tour around Eastern Europe but I will be getting hold of a copy very soon as it’s been getting some amazing reviews.

I could have done with having this book with me whilst flying to Russia or the Czech Republic over the last few weeks. We all know how boring flights can be don’t we? I’ve also heard that reading this book is a great way to avoid getting DVT as it will get your heart pumping LOL.  As there are just 147 pages of content is just about right to read on a flight, a long journey or if you are off to a nice beach this year ….

Based on the reviews I’ve already read I am looking forward to getting stuck in yet slightly pensive at the same time. When an ordinarily optimistic landlord like Mary Latham, who has with 40+ years experience in being a landlord, says she see’s the storm clouds gathering and explains why we should ALL take notice.

The book is available as a paperback for £4.64 including delivery and just £1.36 if you are happy to read it on Kindle or the Kindle App for iPad. Either way, click here to order your copy.

Reviews posted on Amazon.co.uk

5.0 out of 5 stars An essential read for those wanting a balanced view of the property market in the UK,
A detailed thoroughly researched book from an experienced landlord.

This book although in some parts quite technical covers the parts that all the get rich quick schemes manage to miss out. The questions that they ask you to save to the end of their presentations and never manage to answer and the risks that many will look into – when they come to it.

Mary covers the latest legislation, the impact of austerity measures, the banking crisis and the topics that would be almost unbelievable if it were not true! (Landlords being charged thousands to dispose of their tenants rubbish bins and recycling) to the impact of Universal Credit on Landlords and those that are unfortunate enough to have to claim benefits.

Some say the combination of these factors will create the perfect storm and others a tornado that will impact our lives significantly. Whatever boat you’re in this book is essential reading to ensure you understand the facts and then put countermeasures in place to ensure you are not a victim of this crisis. Written by a true expert and recognised as such by the National Landlords Association and Homestamp – ignore this perspective from a full time landlord at your peril.

5.0 out of 5 stars A well worth read!

As an established landlord I was unsure whether the book would be worthwhile to me. How wrong could I be!!! I benefited from an insight into a seriously experienced property guru who briefed the reader in a clear and coherent way of real life experiences, past and present legislation as well as money saving tips and references for landlords. The money I have already saved by following just a one of her expert tips has already compensated for the cost of the book twenty fold. Unlike a text book, the author writes in a light hearted way but with an underlying seriousness. I would unreservedly recommend this book to any landlord whether they are a novice just starting out or a well established agent/landlord.

Lots more equally positive reviews here.

When you have read the book yourself please do me a favour and post a review in the comments section below as well as on Amazon.

PLEASE buy this book (and READ IT!), if for no other reason than to help me say thank you to Mary for posting over 600 helpful comments on this website alone!  We are talking about less than a fiver people – COME ON!

This is the link to Amazon to BUY THE BOOK

PS – best to do it now whilst you remember.

Mary Latham


Negotiating with estate agents Latest Articles, UK Property Forum for Buy to Let Landlords

Negotiating with estate agentsOver the last few days a newbie property investor called Craig has been picking the brains of myself and Mary Latham by email. Yesterday we got talking about negotiating with estate agents and the advice we shared with Craig is well worth sharing here so that others can benefit from it too in my opinion. Between us, Mary and I have 64 years of experience in buying property as an investment. This number will grow massively as others share their opinions and as more questions and answers are added to this thread.

Negotiating with estate agents

Having viewed properties which match your requirements in terms of attracting the right tenants – a good agent will always call to you to ask for feedback. When they do, tell the agent that you really liked the property and would love to buy it but you think it’s priced too high for you to want to make an offer. Continue reading Negotiating with estate agents


Renting by the room – a FREE guide to maximising profits Landlord News, Latest Articles, Property News

Renting By The RoomA new ebook has been released by Spare Room and is available to download as a PDF via Property118 free of charge. It’s called “Renting by the Room – A Guide to Maximising Rental Profits”.

The media has a fascination with house prices, and together with Property Investment gurus and Estate Agents, spend a lot of time talking about the money to be made from investing in property. However, they rarely mention the single biggest factor in maximizing your return on investment – renting property by the room.

Why?

The truth is that renting by the room can bring in two or even three times the income of the same property let as a single unit. So why does it feature so rarely on property programmes or investment research reports?

Perhaps there’s a belief that this type of letting is too complex for amateur landlords to handle? Maybe they want to keep the juiciest returns for themselves? Either way, it’s high time someone challenged the status quo, and revealed why savvy property investors and landlords are getting into renting by the room.

SpareRoom’s Guide to Renting by the Room reveals:

  • The Origins of Generation Rent
  • The Growth of Flatsharing
  • The Benefits of Renting by the Room
  • Where the Demand for Shared Housing is strongest, around the UK
  • … as well as a Case Study of a Property Expert who only rents to sharers, and a Special Offer to get discounted advertising on SpareRoom.co.uk

To download your free copy, simply enter your name and email address below.

Download the FREE Guide to Renting by the room


Oven Cleaning is one of the biggest issues in a rented property Landlord News, Latest Articles, Property News

ovenOven cleaning is one of the biggest issues and this article is to help Landlords present this particular item in their property in its best condition for an inventory inspection and help tenants bring an oven back to its initial clean state when leaving the accommodation.

Let’s put it into perspective, the cleanliness of a property makes up 51% of tenancy deposit disputes and some of which can be attributed to people forgetting or missing an item to be cleaned, another is that differing people have differing ideas of what is clean. Let me give you an idea how we all think the same but differently.

Picture a cat in your head,
How big is it?
What is it doing?
What colour is it?

While we have all just seen a cat in our minds eye, some cats will be small, medium, large. It might be sleeping, sitting, jumping around and any colour you want. Nevertheless, it is still a cat. The same is true for cleaning, someone might have actually worked very hard to clean a property but yet it is not you to your high standard. Maybe they just don’t know how to do the task correctly and yes some are just simply too lazy to do it. It is a rare situation that we know which of these statements is true for a given household and it might be a combination of all of these factors.

There is a continuum for the level of cleanliness form: never been cleaned, attempted but still dirty, cleaned to an average household standard up to what we call in the inventory profession “cleaned to a high domestic standard” and “cleaned to a professional standard” the best of course being a professional clean.

Here is a list of key phrases I use when describing the cleanliness of an oven from best to worst:
1. As New
2. Cleaned to a professional standard
3. Cleaned to a high domestic standard
4. Clean to a domestic standard
5. Partly cleaned
6. Needs finished clean
7. Not clean.

I must add that fortunately, most inspection I do I only have to decide if the cooker/oven has been cleaned to a domestic or professional standard.

If you look at the picture below, this is an oven an oven cleaned to a high standard but its condition is excluded from our discussion on cleaning. This is a worn oven and unless you have prior information, to this picture, it is not possible to say if this is through damage or due to age and fair wear and tear.

 

This oven is clean but through age and use, it is marked and even rusted at the sides.

Then we have the oven that is clean to a high domestic standard that is to say it is grease free but there are still baked on marks.

 

You should also watch out for chemical residue, many of the excellent oven cleaning products on the market leave residue marks on surfaces if you don’t wash off the product fully, which technically means the oven is still partially dirty, need a finish clean.

There are several very good cleaning products on the market. But there is one that I prefer to use it gets the job done and is fairly easy to use and normally takes a clean to domestic standard to a professional clean level. It is a strong chemical so you have to be careful and follow the manufactures instructions it is “Oven Pride”. Please note that I don’t have shares in the company and I am not getting any benefit for mentioning this product my motivation for mentioning it is to   help anyone who reads this article in particular Landlords and Tenants.

About the author of this Post

Sydney Lewis A+ Inventories

Syd Lewis has been a private landlord for over 20 years, he is an accredited member of the National Landlords Association (NLA), Residential Landlords Association (RLA), Sponsor of the Good Landlords Campaign, a full member of the Association of Professional Inventory Providers (APIP) and a Certified Electrical Portable Appliance Tester (NIPIT). He is passionate about what he does which is providing residential inventory services, PAT testing and marketing floor plans for Agents, Landlords and Tenants. Inventories start from £56.00 to find out more see:-


How I doubled my money in three seconds on a property deal Landlord News, Latest Articles, Property News

How I doubled my money in three seconds on a property dealOK, so I wrote this headline and added an image to attract your attention. I really did manage to double my money on a property deal in three seconds, however …….

Yes, there’s a catch – but you probably guessed that didn’t you?

Please allow me to share a story with you, it is relevant to everybody in the property investment business and particularly newcomers. Continue reading How I doubled my money in three seconds on a property deal


Guaranteed Rent – A Warning for Landlords Buy to Let News, Cautionary Tales, Landlord News, Latest Articles, Lettings & Management, Property Investment News, Property Investment Strategies, Property News, UK Property Forum for Buy to Let Landlords

Guaranteed Rent Warning for LandlordsA growing number of Landlords are falling for a “Guaranteed Rent” scam which enables a landlord or an agent to sublet a property.

There are several examples of how this works, below is a relatively “clean” one, I will share a much nastier example of how landlords are being stung as comments begin to appear in the forum thread below this article:- Continue reading Guaranteed Rent – A Warning for Landlords


The Truth About Buying Repossessed Property Landlord News, Latest Articles, Property News, Property Sales & Sourcing, Property Sourcing

All the property “gurus” (and I’ve really started to despise that word) advocate buying BMV property – “you make your money when you buy the property not when you sell it” as Robert Kiyosaki (the guru’s guru) says.

One of the best ways of doing that is buying repossessed property at below market value. Given the state of the economy, you can find plenty of these deals through estate agents and auctions and, if you are buying large numbers direct through the asset management companies. It helps enormously if you are a cash buyer and at the very least you need to have funding already in place as the seller will always want to see proof of funds before even considering an offer. Continue reading The Truth About Buying Repossessed Property


Property Refurbishment – A guide for newbies Buy to Let News, Landlord News, Latest Articles, Property Development, Property Investment Strategies, Property News, Property Sales & Sourcing, Property Sourcing

I spent most of yesterday with a lovely couple from Luton who emailed me asking for some guidance. After exchanging several emails we decided to meet and they came over to Norfolk. They have six buy to let properties at the moment, a decent liquidity fund and plenty of equity in properties. They wanted advice on how to get into property refurbishment.

The day started with a trip to my accountants in Norwich where we discussed the difference between property investment and property trading. It is important to have a very good idea of whether you intend to sell for a profit or to hold as an investment before you do any deal as investment and trade are taxed and financed very differently. Continue reading Property Refurbishment – A guide for newbies


Guru crash! UK property scams discussed Buy to Let News, Cautionary Tales, Landlord News, Landlords Stories, Latest Articles, Personal Development & Motivation, Property Investment News, Property News

UK Property ScamsWhen it comes to deciding where & how to invest, one of the most vital things a novice investor can do is to become an expert on due diligence and research … not just of potential property deals, but also of people and companies offering portfolio building services, joint ventures, mentoring and deal sourcing.

The property investment world has a seedy & un-regulated under-belly patrolled by wealth creation gurus.   Many novice investors fall prey to their charms and promises of easy riches. Continue reading Guru crash! UK property scams discussed


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