Landlords' Feedback

Pabloed55

Hi All

Hopefully asking this isn't taking liberties but I am hoping to do a bit of informal market research with people who are landlords, either reluctantly or otherwise.

I have read this forum quite a lot but only posted one thread to get some advice about tenant problems in a house we were renting out.

Now that has been sorted and with the subsequent economic malaise that we are in, like many other people I have been thinking about potential business ideas as ultimately I would LOVE to work for myself one day.

One area that is interesting me and a potential business partner is the property management field. I see a number of firms doing it, some more high profile than others and claiming to be brilliant at it but I also here a lot of negative things from people who have used firms in the past or currently are.

So, I was hoping that I could maybe get people's viewpoints and opinions of any experiences they have of having used property management firms and what for them would make them use a firm, or if they wouldn't use one, why not? I have tried speaking with the Landlords' Association but when I explained what it was about they pretty much didn't want to know and were more interested in trying to put me off doing it.

So, whilst I and my potential business partner both have been and are landlords and have been through the whole spectrum of experiences, I would really like to hear the thoughts of others on this to try and understand the market, whether you consider yourself to be a professional landlord or a relucant one.

Many thanks

Paul

dumbo

Hi Pabloed55, I have recently become a landlord with 2 properties in my portfolio, I know its very small. I did not use a property manager when looking for a tenant for the simple reason that I feel they do not properly vet tennants & I have heard a lot of stories where houses are not looked after the way they should have been by the property management company. On the plus side I do like the idea of havng someone else manage the property after I have chosen the tennant as it means that I would have no further contact with the tennant, but I feel that the costs for this can be quite high also.
Hope this has been of some help to you.

ballyblack

Anybody have any comments on this site??

http://www.abode-ni.com/pages/guaranteedRent#


.

saverbuyer

As with everything read the small print. I hate to the think of the calibre of tenant they attract to pay this "guarantee".

A.L.D.A

There are a number of common problems.

The first tenants and it is a common complaint that they are not vetted properly. That is a lot easier said than done. I have heard of all sorts of problems; drug dealers, growing hemp by hydroponics, Police raids etc. Then you have false identities, the character who sets fire to the furniture before leaving etc etc. That is the extreme end, but you can have other problems such as music and parties, pets and their fleas. Yes fleas you don't see when you return the deposit, lots of them. They reside in carpets and furnishings as do other parasites.

The second is maintenance. You need good contacts with plumbers, electricians etc who do not mind being called out virtually 24/7.

Common areas need to be kept clean and maintained by whatever means.

Contracts are important, but are only as good as the tenants.

Forgot to mention the person who rents for a short period, copies the keys, and returns 6 months later to steal anything movable.

36square

I think you'll find a reluctance among landlords to pay for a full management service that involves looking after the property as opposed to just finding tenants. They'll always think that they can get a job done cheaper than you have.
However, I think many people, including myself, would be attracted to a service that handled the legal and asministrative side of the business. That would include finding out as much as possible about potential tenants. It's the landlords responsibility to vet them. Some will accept undesirable tenants since the rent will be guaranteed by the DSS and the risk of having to refurbish is greatly eased by full tax relief on the cost although I suspect that quite a few landlords in NI are operating outside the tax system.

saverbuyer

36square wrote: »

I think you'll find a reluctance among landlords to pay for a full management service that involves looking after the property as opposed to just finding tenants. They'll always think that they can get a job done cheaper than you have.
However, I think many people, including myself, would be attracted to a service that handled the legal and asministrative side of the business. That would include finding out as much as possible about potential tenants. It's the landlords responsibility to vet them. Some will accept undesirable tenants since the rent will be guaranteed by the DSS and the risk of having to refurbish is greatly eased by full tax relief on the cost although I suspect that quite a few landlords in NI are operating outside the tax system.

All eating into those sub 5% yields.:eek: Without capital application there's no chance of making any money. And it isn’t coming anytime in the next 20 years.

36square

saverbuyer
You probably wouldn't want to go out and invest in a property for a sub-5% yield, but if you have owned a property for for more than 10 years the historic yield would be much more attractive. I agree that yields in NI are low which indicates that property prices are still too high.

saverbuyer

36square wrote: »

saverbuyer
You probably wouldn't want to go out and invest in a property for a sub-5% yield, but if you have owned a property for for more than 10 years the historic yield would be much more attractive. I agree that yields in NI are low which indicates that property prices are still too high.

With property prices back to 2004 levels you would need to have the property for longer that 10 years to have an attractive yield particulary if it's been interest only for the whole time.

You should really be looking at 10%+ yield to make it work.

A.L.D.A

If you can rent at £5000 a year you do not want to be paying more than £50,000 for the house. There are now opportunities to do that!

saverbuyer

A.L.D.A wrote: »

If you can rent at £5000 a year you do not want to be paying more than £50,000 for the house. There are now opportunities to do that!

Based on current HOUSING BENEFIT levels.