Buy To Let Parasite

shaz77_2

Hi All,

I recently read an article on Yahoo in which most of the posters hated people who properties to let, is this a general feeling?

From the outset I should say that I bought a property to let, it was a problem house that needed (and still needs) a lot of improvements done to it and I have to work 2 jobs and use whatever income I get from the property just to keep my head above water.

Do people think that being a Landlord is easy?

BitterAndTwisted

Most of the resentment is probably driven by envy. Some of which is understandable considering how completely out of reach owning property is to lots of people. And I would agree, an awful lot do think that being a landlord is easy when they have never actually been one. What could be so hard about raking in hundreds of pounds of rent a month?

theartfullodger

If you NEED the rent every month then, with respect, bad place to be.

You may get the Tenant (or agent) from hell and get no rent for, say, 7 months whilst you pay o pond legal etc costs. And repairs.

You need financial & emotional reserves ...

Is it easy?? Yeah, if tenants are good, there's no unexpected repairs, interest rates don't go up, government doesn't change tax or letting rules.

After 10years you start to get the hang of it......

Artful (Landlord & parasite)

DVardysShadow

shaz77 wrote: »

... I recently read an article on Yahoo in which most of the posters hated people who properties to let, is this a general feeling?

This country is closer to a revolution than it has been at any time since the general strike of 1926.

Bear in mind that in terms of income most people can afford to buy property. But in terms of backing assets, many people who can afford a property on income are denied because they lack the assets. At the moment, people who do not own property cannot buy. But those who own a property can very easily get another.

In this kind of situation, it does not take Einstein to work out that the havenots will resent the haves with a passion. Essentially there is a huge transfer of wealth in progress right now [and the BTL'ers should not feel too comfortable, because they may lose their shirts very quickly as this plays out].

When it comes to putting people up against the wall and shooting them. I fear that this will impact much more on the BTLers than on the bankers and the media barons who are probably more responsible for the present situation than the BTLers themselves

brit1234

The resentment against buy to let investors is caused by pricing out first time buyers. They targeted mainly first time buyer start up properties, have unfair tax advantages and now are charging ever increasing rents despite the state of the economy.

Every time we here about buy to let portfolios and house shortages of course it will make first time buyers angry.

At least the days of rapidly rising portfolio equity, gearing are now over. It just makes us angry that interest rates have been slashed to bail landlords out as they go into negative equity and the cost of prudent savers.

Benji

I think 'bad publicity' is more news-worthy than 'good publicity'. Unfortunately, there are still a number of slumlords in the country renting substandard properties - usually to those who are desperate enough to accept whatever is offered.

Landlords who rent decent properties at sensible rents don't tend to attract the same opprobrium.

Callie22

I'm a tenant. I don't enjoy renting because the protection for tenants in this country isn't great, but I don't have a problem with btl landlords per se. Heck, if I had the capital then I'd probably do it myself. What I do have a massive problem with is anyone who runs a business badly, and I'd argue (respectfully ) that there's a huge, huge problem in this country in that on average, btl isn't seen as a business by the majority of people who 'control' and participate in it.

I come from a family where both my grandparents and parents were (and still are) self-employed, so I know probably better than most people how hard to you have to work to make a business a success. The issue I have with *most* btl landlords is that they don't work at their businesses at all - I'd argue that the majority of the professional landlords who post on here are not at all representative of the average UK btl landlord. *Most* btl landlords don't really have a clue what they're doing, don't treat what they're doing as a business, don't have even a small contingency fund for repairs and provide pretty poor service, on average, to their customers. Most landlords don't view their tenants as customers at all. As a tenant, it's pretty galling to spend the equivalent of a couple of month's worth of take-home pay to move, and then have to spend the first day in your new 'home' scrubbing someone else's filth off the house, and then find out that repairs and maintenance haven't been done and you're going to have to spend months dealing with various problems. In what other business could you treat a customer like that? And whilst I accept that there are 'bad' tenants, I honestly do think that's rare and as the demographic of renters changes, that will become even more so.

Equally, I think bad customers aren't exclusive to btl and it's something you have to accept - my family's various businesses have suffered numerous times because of fairly major customers who haven't paid, that's life (and business). I don't really hold with this 'poor me, I can't sell my house and I've *had* to become a landlord and it's terrible, everyone should feel sorry for me and the tenants should be grateful' attitude. Nobody is forced to be a LL, and if you're not prepared to put the work into the business then you shouldn't do it. Nobody in business should expect 'gratitude' from a customer either ... it's an exchange of cash for a service, nothing more (and in every business, some customers are complete idiots and shouldn't be out alone, that's also just the way it is and something you have to put up with).

So that's the problem I have with btl (that and letting agents, but that's a different issue ...) I don't think that LLs are parasites, but I think that btl needs a massive overhaul to become more professional.

Hammyman

DVardysShadow wrote: »

At the moment, people who do not own property cannot buy.

Rubbish. My friend is a first time buyer. He's just bought a 6 bedroom house for £100k on a 5% deposit earning £30k as a lorry driver.

Anyone who has a clean credit history, enough money for a deposit and has a job which pays enough can buy a house. I'll admit the latter does stuff up a few people in the South East but thats what happens when you get too many stupid people wanting to live in the same place and there's insufficient accommodation. A lot of people in the south east would do a lot better if they moved 100 miles away from London. The sensible ones already have done.

DVardysShadow

Callie22 wrote: »

... So that's the problem I have with btl (that and letting agents, but that's a different issue ...) I don't think that LLs are parasites, but I think that btl needs a massive overhaul to become more professional.

I agree. While the Assured Shorthold Tenancy has increased the availability of rentals, in terms of social cohesion it is a disaster. It is encouraging short termism and is developing a slowly transient population of involuntary drifters who have no stake in the communities in which they live.

DVardysShadow

Hammyman wrote: »

Rubbish.

I would still say that it is harder now to get started with a first property than at any time I have known previously - and easier to buy a second than any time I have known.

And it is completely true that many people who do not own property already cannot buy. To a greater extent than ever before.

dawyldthing

DVardysShadow wrote: »

I would still say that it is harder now to get started with a first property than at any time I have known previously - and easier to buy a second than any time I have known.

And it is completely true that many people who do not own property already cannot buy. To a greater extent than ever before.

but the other side of it is as a nation less people save and more spend every penny they have. I know countless people who have an expensive car, clothes, expensive holidays but don't have a penny in the bank as its all on credit.