Buy to Let - How I made £100 @ month

dippy

But if the council has been paying the DSS tenant directly for those 8 weeks or more, will the council pay the rent twice to cover your loss?

kinster_2

dippy wrote:

But if the council has been paying the DSS tenant directly for those 8 weeks or more, will the council pay the rent twice to cover your loss?

Don't be silly, my answer was that it shouldn't have gone as far as 5 months.

If you don't take risks you don't get any where

dippy

kinster wrote:

Don't be silly, my answer was that it shouldn't have gone as far as 5 months.

If you don't take risks you don't get any where

I'm not being silly at all. Kinster has already said that the tenant had told the council he/she was in dispute with the landlord and the rent was being paid directly in the tenant's account.

Do you think the council will then just start paying the rent directly in your account because you asked nicely or your rents are in arrears? Would it be as easy as that?

thelaughingpoliceman

Remortgaging my own house to a buy to let was one of the best moves I have made.
With the equity I released I purchased my current home and my buy to let has been earning me £265 per month in rent. Plus it has increased in value on average a £1000 per month every month for 2 years.
My buy to let is in Brighton and Hove and I used a housing association that pays me direct every quarter, guaranteed rent for 5 years whether or not they have placed anybody in it.
They don't charge any commission for this service and the rent is very competitive.
At the end of the term it is in their contract to return the property to me in the condition they received it. They also carried out a fell inspection with photos of the condition prior to renting. Again at no cost to me.
Several local councils run similar schemes it is well worth getting in contact with them if you are thinking of dabbling.

kinster_2

dippy wrote:

I'm not being silly at all. Kinster has already said that the tenant had told the council he/she was in dispute with the landlord and the rent was being paid directly in the tenant's account.

Do you think the council will then just start paying the rent directly in your account because you asked nicely or your rents are in arrears? Would it be as easy as that?

What I am saying is that if your tenant is currently being paid directly and goes into arrears by 8 weeks or more, then the council will pay directly to the landlord. Well that's what my local council does.

kinster_2

thelaughingpoliceman wrote:

Remortgaging my own house to a buy to let was one of the best moves I have made.
With the equity I released I purchased my current home and my buy to let has been earning me £265 per month in rent. Plus it has increased in value on average a £1000 per month every month for 2 years.
My buy to let is in Brighton and Hove and I used a housing association that pays me direct every quarter, guaranteed rent for 5 years whether or not they have placed anybody in it.
They don't charge any commission for this service and the rent is very competitive.
At the end of the term it is in their contract to return the property to me in the condition they received it. They also carried out a fell inspection with photos of the condition prior to renting. Again at no cost to me.
Several local councils run similar schemes it is well worth getting in contact with them if you are thinking of dabbling.

Didn't you have to go through the council's housing accreditation scheme before renting through the housing association?

thelaughingpoliceman

No, the association inspected the house with me. Gave some advice for improvement eg window locks upstairs, and that was it. They were very helpful and amazingly efficient.

Natelle_2

We have rental investment properties ( 2 bed semi-detached) and would not rent to DSS tenants. A very close friend of ours rented out to DSS claiment ( single mother with child) and lost approx £1500 due to none payment of rent and damage when the tenant "did a runner". Benefit was paid to claiment direct but she did not pay rent in last 3 months.

If a BTL mortgage is required lenders will not accept DSS Housing Benefit tenants.

Our suggestion is only accept employed professional tenants who have been thoroughly veted if you want an acceptable long term investment on your hard earned money.

We invest to make money not to be social workers!

whitevandriver

Final update to an an old post.

Have agreed to sell my property with the sitting tenant to an associate for a net captal value profit of £8,000 on top of the £100 a month income.

BTL is a bit of a hassle but seems to me to be a valid way to make money.

I think that targeting non working mothers of two or more children as tenants in unfurnished or part furnished ex-council houses in areas near shops, schools, buses and trains is an excellent model.

I now have two children and a full time job rather than one child and a part time job so don't want the potental hassles that come with a BTL but there have been much harder ways of making £10K. I would put the total number of hours spent on the project in the last two years at somewhere between 40 & 45.

missk_ensington

Is £1200 a year really worth the hassle that things are broken, people are locked out at 3am, the boilers broken down on a Sunday and they've taken it upon themself to hire a plumber and bill you cos they couldn't get hold of you.... Then there the tax implcations, I am assuming your £100 is after tax? I do hope so.

Then there is CGT when (and if) you sell the property.

Then as mentioned, you can have tenants who decide they don't want to pay meaning you have to issue accelerated possesion proceedings taking several months and lots of money to get, and just hope it isn;t a single parent with one leg and a disabled kid you can kiss goodbye to your house cos you'll never get them out!

Alas, loss of income in the interim of tenants leaving and finding a new tenants (during which you still have to pay the loan with no income coming in from it).

Not worth it for £100 a month me thinks