Rents rising again....

JanCee

Does the LL use an agent? Sometimes it's the agent that persuades the LL to increase the rent and they don't care that the tenant moves out because they make more money that way.

It sounds like you have found somewhere nicer to live anyway, better to move on and forget about it rather than wishing bad luck on others.

DpchMd

ilovecheese wrote: »

Yes we will move again.

I did compare other properties on the market, there were 18 two bed properties in the area with an average rent of £753.00 per month, our rent was already £770 so an increase to £810 is well over the average (and yes I did send this information to the LL)

I don't think I am being unreasonble, if she had just left the rent alone we would have stayed 5+ years, giving her a stress free let.

If she does get a cr**p tenant after us, maybe next time she will think-on about rent increases

You don't think this is unreasonable?

ilovecheese wrote: »

I hope the next tenant pays late - or never - refuses to pay for share of cesspool, and bugs her night and day over repairs.

All your landlord did was increase the rent at a rate below inflation. I'm not saying it was the right thing to do in the circumstances, but you seem to be personally offended by something that is perfectly reasonable.

I hate to think how you'll react when your mortgage lender increases your rate.

ilovecheese

JanCee wrote: »

Does the LL use an agent? Sometimes it's the agent that persuades the LL to increase the rent and they don't care that the tenant moves out because they make more money that way.

It sounds like you have found somewhere nicer to live anyway, better to move on and forget about it rather than wishing bad luck on others.

No she does not use an agent.

I just think she needs to have an experiance with an awful tenant so she realises how easy life is with a good tenant (someone who pays rent early and looks after the property) I just think she is very short-sighted.

crash123

ilovecheese wrote: »

No she does not use an agent.

I just think she needs to have an experiance with an awful tenant so she realises how easy life is with a good tenant (someone who pays rent early and looks after the property) I just think she is very short-sighted.

I agree that if you have good tenants it is best to leave everything as it is.

IveSeenTheLight

Percy1983 wrote: »

Sorry to ruin your argument again, I may be undercutting other businesses, but those other businesses charged to much to which my customers couldn't afford them, in all cases I have started doing something which wasn't done before I haven't lost other people business, just found a gap and occupied it. Some would say that is excellent business sense.

The BTl market found a gap (social housing sell off) and has (only partially) occupied it.

Some would say that is excellent business sence

IveSeenTheLight

The_J wrote: »

Why do you think the landlord would end up with a free house after 25 years?

A £250,000 mortgage at a low arbitrary rate of 5% would cost £1500 a month to pay off the mortgage in 25 years. There's no way rent on a property of that value would be £1500. More like £1000 which wouldn't pay the interest.

Not good random figures for a BTL business moodel.

Presuming the £250k is a mortgage amount, with 30% equity, the property would be circa £360k

There are areas where a £360k property would command a rental in excess of £1500 pcm

http://www-s.aspc.co.uk/cgi-bin/public/LiveProperty/298618?ID=FBMIOBGD#picture

http://www-s.aspc.co.uk/cgi-bin/public/LiveProperty/297366?ID=FBMIOBGD#picture

http://www-s.aspc.co.uk/cgi-bin/public/LiveProperty/299255?ID=FBMIOBGD#picture

http://www-s.aspc.co.uk/cgi-bin/public/LiveProperty/299249?ID=FBMIOBGD#picture

However there are far better rental yield opportunities than ones with the figures you propose

The_J

Obviously not assuming 30% equity. Since when does a tenant have to put up 30% equity? You cannot get a 100% BTL mortgage but to fairly compare the tenant and the landlord this is how you must calculate it.

You also appear to have said "areas" but provided only the Aberdeen "area". You're not one of those "Aberdeen nutters" are you?

chewmylegoff

IveSeenTheLight wrote: »

Not good random figures for a BTL business moodel.

Presuming the £250k is a mortgage amount, with 30% equity, the property would be circa £360k

There are areas where a £360k property would command a rental in excess of £1500 pcm

http://www-s.aspc.co.uk/cgi-bin/public/LiveProperty/298618?ID=FBMIOBGD#picture

http://www-s.aspc.co.uk/cgi-bin/public/LiveProperty/297366?ID=FBMIOBGD#picture

http://www-s.aspc.co.uk/cgi-bin/public/LiveProperty/299255?ID=FBMIOBGD#picture

http://www-s.aspc.co.uk/cgi-bin/public/LiveProperty/299249?ID=FBMIOBGD#picture

However there are far better rental yield opportunities than ones with the figures you propose

whilst i am not one to sniff at paying only 30% of the price of something up front and getting the rest paid off by an income stream, that is not what i would describe as "free".

in fact what it sounds like to me is investing £110,000 in an asset. that asset would then produce gross income of £1,500pm but net income after mortgage interest of £1,050 pm and management fees of 15% of gross rent of £225pm = net income of £225pm (or 3% per annum) before any other costs.

sounds !!!!!! in fact.

IveSeenTheLight

The_J wrote: »

Obviously not assuming 30% equity. Since when does a tenant have to put up 30% equity? You cannot get a 100% BTL mortgage but to fairly compare the tenant and the landlord this is how you must calculate it.

You also appear to have said "areas" but provided only the Aberdeen "area". You're not one of those "Aberdeen nutters" are you?

A Typical BTL has 30% equity to get the mortgage.

The discussion you was having was regarding whether the rents achieved would cover the mortgage, hence I considered that a £250k BTL mortgage would be on a higher priced property.

It's true I have more knowledge in the Aberdeen area, hence I provide evidence for it.
It's true that Aberdeen is a particularly strong BTL market.

I don't however think that investing in a strong market is an indicator of being a "nutter", moreover it's an indicator of making a sound investment choice.

IveSeenTheLight

chewmylegoff wrote: »

whilst i am not one to sniff at paying only 30% of the price of something up front and getting the rest paid off by an income stream, that is not what i would describe as "free".

in fact what it sounds like to me is investing £110,000 in an asset. that asset would then produce gross income of £1,500pm but net income after mortgage interest of £1,050 pm and management fees of 15% of gross rent of £225pm = net income of £225pm (or 3% per annum) before any other costs.

sounds !!!!!! in fact.

agreed, I in fact also said that Mr J's figures did not proove to be a viable BTL business opportunity, it may however more than cover the costs, which Mr J thought it would and could not do so.

One of the properties I have recently invested in is providing a greater than 12% return on my invested sum.
I'm happy enough with that.