What would you do? Newbie landlord looking for advice!

Passing on the properties to your kids is obviously important to you. Have asked them whether they actually want to be landlords when you pass the reins to them? If the answer is no, then ask yourself whether it’s really worth the hassle. If yes, employ the services of a good lawyer, gift a substantial proportion to them at purchase and put in place a deed of trust to manage the income split (you can keep all the income even if you only have a small percentage). Caveats apply – I am not an expert, please make sure they don’t divorce etc …

I would have to agree with those respondents who advised against buy to let. A perfect storm of different factors have made it unworkable for all but the larger individual and corporate operators in my view. These include:
– a punitive tax regime
– high interest rates
– potentially costly changes to EPCs
– huge forthcoming changes to regulation and compliance, all to the landlord’s detrement
– increased legal help for tenants to prevent landlords gaining possession of their properties.

I have joined the many other landlords that are selling up.

Reply to the comment left by DPT at 31/01/2025 – 09:11
Thought I’d respond to all to say thanks, again. With your feedback I’m moving away from the idea of becoming a landlord and looking at the alternatives some have suggested.

It’s clear a lot of you are getting out of the game and selling up. It makes me wonder what is happening to the people who were renting your abodes. Maybe a poll would be useful (if it can be done on P118) to ask whether landlords are selling to:
a) the people already renting
b) another landlord with existing tenant
c) another landlord with new tenant
d) the general public looking for a property

Reply to the comment left by Steven F at 31/01/2025 – 09:41
I am a landlady in Wales which has had stricter regulations, licensing etc than England for some years. My properties have been mortgage free for many years. I only ever bought family houses, not flats or HMOS. It is not just income, its capital growth over the long term. I have all long term tenants, getting the right one is important and I would rather take less rent and a good tenant any time. I also invested in the stock market in 2000 for a sum of £75k and bought a 3 bed property at the same time for £80k. The £75k investment is now worth only £120k, has minimal income. The £80k property is now worth £275k and is currently paying me back rent of £850 pm. Its a no brainer for me. However, you have to take into account IHT, CGT, possible care home fees etc as to how you would structure buying them. You could diversify and just buy one or two from your funds.

Reply to the comment left by colette at 31/01/2025 – 19:41
some actual positivity about Land lording. If ts as bad an investment as the majority on here are making out why do we consistently see David Coughlin putting doom and gloom fear mongering ads and articles on here saying how awful BTL is and how poor an investment it is then offering to rescue all the poor landlords by buying their houses at a knock down cost ?
Well said, good research and tenant selection is key

Ask yourself why so many PRS landlords are getting out, many long term landlords.

I started my exit when the Renters Reform Bill raised its head. The final straw is The Renters Rights Bill which says it all and the PRS is not the place to be now after 30+ years.

Some tenants are good but you still have the final responsibility for dripping taps, boiler stops working, wants new cooker, fixtures broken, storm damage etc,
But when tenants are bad they are usually very very bad. When they stop paying the rent you still have the outgoings and repairs.

And it’s really hard to get tradesmen to take on small repairs. A whole bathroom replacement is fine, but even then there’s so much shoddy work done, but no one wants to change a single tap cartridge.

My 29 year old daughter has seen the stress it brings her whole life and refused to consider even the Rent a Room scheme never mind taking on a whole property. She says never ever would she be a landlord. So flatmates had an AST for the bedroom and a licence for the lounge, kitchen and bathroom and I had the problems when their boyfriend constantly stayed over more than 4 days a week (can turn the property into an unintended HMO and even more regulation/legislation).

I’ve also let to Housing Associations, and the properties trashed after 3 years and the mould = knocking back to the brickwork, new everything including floorboards
.
Think many many times before coming in to the rental business, and it is a business that can be really stressful, And too many management letting agents are not up to the job, another stress to add.

Buy your kids properties as gifts while you can and spend the rest enjoying retirement. You will have work and stress if swapping your current job for one as a landlord. And this government will ensure you cannot pass your rental properties on to your kids. You may never even regain possession of them.

I would look at other books besides Rob Dix, he has a column in the Times and on at least two occasions has given incorrect or ill-informed advice

Law pack and Which? are better, just make sure you get latest editions with all the changes as up to date as possible. These are professionally written.

HI Steven.

It’s no longer what it was. We have 4 properties and now on the last renting cycle after 20 years.
The priority for investment was pension, tax free investments, property. Probably tax free is now the top given Ms Reeves attack on our pension pots.

As you are close to retirement I would be including inheritance tax. On current changes to this we will lose about 70% of our wealth the day after death ! That’s the reward for 50 years of work, paying taxes all the way. Landlords are also easy targets for taxes and penalties. Regulations are a mine field. Do you want to leave a rental property portfolio for your family to sort out ?

We are spending more and more time managing the properties and tenants, with increasing risk arising from the new Renters Rights Bill. Enjoy your silver time.

Get yourself good financial advice. Go for the highest qualifications like for example Chartered FInancial Planners. Go for those that offer a fixed fee (not a % of your wealth), and if you proceed then those charging no more than 1.85%, all up or also consider passive management, 0.5%.

Good luck.

Reply to the comment left by robert fisher at 01/02/2025 – 07:39
Makes you wonder doesn’t it? think it through. The answer is in the offer price he buys yours at. The profit is made on the purchase. Then ask who is actually buying? Out of my 17 sales so far only 2 went to BTL’s and one was a tenant in situ. 14 to first time buyers and up graders.

Reply to the comment left by dismayed landlord at 01/02/2025 – 10:55
i get he’s offering a service and that the discounted offer is up to you to accept, ,i take exception to the continual scare mongering ”articles” he keeps posting as adverts to drum up business . BTL is still a good place for your money long term so long as you are aware of the pitfalls and do things properly. Not for the faint hearted or for those highly leveraged