Rents Falling - FT

dopester

carolt wrote: »

It was much easier when the tenants just paid the asking rent.

Tenants are also under the squeeze... rising unemployment (1 in 2 firms planning job cuts), paycuts, less hours, increased energy and food bills.

The landlord took all that risk on for what the rental value would be of THEIR property, so now they have to sub the downturn. Tenants aren't responsible for paying whatever amount covers their mortgage. Get real you stupid landlord.

There is a lot of choice out there

Damn right there is.

carolt

But isn't our job just to pay their/mortgage/sub their pension? :rolleyes:

brit1234

As the recession and inflation get worse there is going to be increased pressure on rents to come down especially as rented stock increases from people who can't sell. It is going to be very bad for those investors who bought in the last few years. If not now but in a few months they will all be in negative equity. Thats going to hurt them bad as remortgage dates come up in both higher fees if they can get a re deal or as increasingly happening that they have to pay margin calls as they are so far leveraged.:exclamati

Microstar_2

At least that LL quoted above sounds like a real LL!

Yup, you can ask what you want and costs are rising. But not all LL's are saddled with BTL mortgages you know. My experience of letting during the last two downturns is that you can't get blood out of a stone. If potential tenants don't have the money then you won't get takers (or you'll get liars and messers). Mucking around costs money, a month's void will cost you around 10% of your annual take on the property. A bird in the hand is worth two in the bush, and all that.

dopester

[quote=carolt;13075729"I am a landlord in London and this sudden craze for tenants attempting to negotiate rents downwards is a nightmare for everyone.[/quote]

I had to go and find the link to read it in the full context.

How I Saved £60 A Week In Rent

Some of the comments following the piece are a right laugh.

A mix of arrogance, wishful-thinking, delusion, and fear, with the odd bit of wisdom there too.

The arrogant ones will be schooled by the market anyway so no need to get worked up about them really.

Two of my favourites from the fear/delusion category.

Why do we have people who are not investors (or even property owners) writing articles in property pages?

Your web page is circulated everywhere - probably some of my tenants read it? - £60 a week would cut my rentals by around 35% so please bear in mind that London and even other city locations are a completely different kettle of fish to rural locations; and think more careful on how you present these scenarios to prevent any potential knock on for country bumpkins such as I

Microstar_2

"I am a landlord in London and this sudden craze for tenants attempting to negotiate rents downwards is a nightmare for everyone. In the present climate the landlord too is experiencing soaring mortgage costs

Not all LL's...

and has set thre rent to cover those.

Cart before the horse I think.

You would be surprised to learn that the majority of landlords do not make much profit on their rent because if they do they have to pay it out in tax anyway.

Tell me about it!

The landlord has to include the cost of maintaining the property in the rental calculation and this can prove very expensive. The property has to be refurbished each time the tenancy changes which also costs a lot of money. I can see the attraction of a cheaper rent for a 2-3 year contract but with mortgage rates rising so quickly even this is very risky. What will happen if interest rates suddenly rise to 10%, the landlord will then make a loss and the property will be repossessed and the tenants will be in the street anyway. It was much easier when the tenants just paid the asking rent.

Somebody should have told this bloke that its a business and not an 'investment'.

[/quote]

Generali

Microstar wrote: »

It was much easier when the tenants just paid the asking rent.

Somebody should have told this bloke that its a business and not an 'investment'.

Business would be far simpler if people would pay what they were told rather than what they would like!

carolt

dopester wrote: »

I had to go and find the link to read it in the full context.

How I Saved £60 A Week In Rent

Some of the comments following the piece are a right laugh.

A mix of arrogance, wishful-thinking, delusion, and fear, with the odd bit of wisdom there too.

The arrogant ones will be schooled by the market anyway so no need to get worked up about them really.

Two of my favourites from the fear/delusion category.

Big thanks for posting the link. Must have been a bit sleepy this morning!

IveSeenTheLight

dopester wrote: »

and ISTL has already dismissed unemployment as having any bearing on house prices, as "people will just walk in to a new job."
.

Please please please stop misquoting me.
I have never said the the above.
You misquote so much its unbelievable. I've let a few slide as I do not want to start you hounding me again but once again, please, please, please stop misquoting me.

If you want to quote me, show a link saying what you claim I say.

IveSeenTheLight

dopester wrote: »

Congratulations on your 1 year-reprieve.

:yawn: there there pet.
Now go sit down by the fire, I'll take you for a walk later