Rents Up Again - New Record High....

IveSeenTheLight

Still more: -

14) Arrange for a gas safety certificate (renewable annually)

15) Arrange for an Electrical Safety Certificate (not required by law but should there be a claim against anything electrical in your letted property, you have to be able to prove you have taken sufficient precuations

16) Arrange for Energy Performance Certificates to be provided

17) Set up a TDS

18) Arrange for a lease to be written, signed, authorised and potentially guarantored.

19) Know your tax implications (be prepared to provide a tax return). This could be outsourced to a large extent to an accountant for a cost.

20) Know the legal position of being a landord and keep up to speed with law changes on letting property. Know your rights and responsibilities

21) Oooops, I missed potential tenant viewings

The tenants have not even started a tenancy yet!!!!!!!!!!!!!

Percy1983

IveSeenTheLight wrote: »

You're not considering this properly.
Buying a BTL is not the same as buying a house.
You have to calculate the Rental Yield to ascertain if it is a viable business or not.

However, as you have accepted there is work in securing the asset, the next stage (assuming all refurbishment / upgrades are completed and you have engages in with the necessary professionals would be to: -

6) Register as a landlord (In Scotland but expanding to some counties). This also incurrs a cost.

7) Advertise the property (Another cost)

8) Vet applicable tenants (Credit reference)

9) Create a Property Manual (Including out of hours support)

10) Arrange / Carry out a property deep clean

11) Arrange for an inventory

12) Arrange property insurance

13) Liaise with property Factor (another fee to be considered)

All the above and so far the tenants have not signed the lease yet!!!!!!!!

Well figuring a rental yield doesn't take very long, I admit I may be able to do that quicker than most so maybe I discount that too much.

Yet again I see more time, still doesn't add up to a free £100k properties worth yet.

Could you not get an agent to do most of the above for you (at a cost) to which is it worth paying them or saving the money doing it yourself?

IveSeenTheLight

Percy1983 wrote: »

Well figuring a rental yield doesn't take very long, I admit I may be able to do that quicker than most so maybe I discount that too much.

Yet again I see more time, still doesn't add up to a free £100k properties worth yet.

As I've listed, this is before the tenant actually starts the lease.
You seem to have thought there was no work involved.

P.S., you shouldn't put a valuation on what you will receive as this may vary widely.

Percy1983 wrote: »

Could you not get an agent to do most of the above for you (at a cost) to which is it worth paying them or saving the money doing it yourself?

You could involve an agent, but that would increase your expenditure and thus either reduce your profits or increase the rents.

I thought you wanted rents lower, not higher.

Remember, time is still a cost.

Percy1983

IveSeenTheLight wrote: »

As I've listed, this is before the tenant actually starts the lease.
You seem to have thought there was no work involved.

P.S., you shouldn't put a valuation on what you will receive as this may vary widely.



You could involve an agent, but that would increase your expenditure and thus either reduce your profits or increase the rents.

I thought you wanted rents lower, not higher.

Remember, time is still a cost.

Sorry if I have given the impression I think they is no work involved, fair enough on final house valuation.

Just asking if agents are cost effective, ie cost x but save y hours kind of sum.

Anyway I am trying to quantify all the above work, 30 hours enough? (really is finger in the air, please let me know if it should be more).

So you have done all that work to get tenants in, how much work is needed monthly/yearly?

wotsthat

Percy1983 wrote: »

Well by definition any business could do the same, my hourly rate is variable per job, the average is above minimium wage.

So I could employ somebody and send them to all the same jobs, they would work so many hours and the time they have spent would bring in enough to pay them above minimum wage.

My point on that one is I take a hit on smaller jobs to do whats right for the community I am not pricing out competition, they won't touch it.

I really don't understand how I am selling based on guilt, form what I am seeing people are quit happy to be buying, honestly I don't understand the reasoning to this question, please explain?

The schools income is all legit last time I checked.

How am I preventing others doing for free, the school can book anybody and if somebody offered to do it for free I am sure they would take them up on the offer (I haven't tied any customers in to contracts).

We've been around this loop a couple of times already.

You don't have a highly ethical business - you're just a nice guy who has a business. The only difference between you and a BTL owner is that you sell photos/ DVD's and the BTL sells accommodation.

I'm sure there are BTL owners that are perfectly horrid but then again picking up a camera doesn't make someone a saint either.

Percy1983

wotsthat wrote: »

We've been around this loop a couple of times already.

You don't have a highly ethical business - you're just a nice guy who has a business. The only difference between you and a BTL owner is that you sell photos/ DVD's and the BTL sells accommodation.

I'm sure there are BTL owners that are perfectly horrid but then again picking up a camera doesn't make someone a saint either.

The problem is I haven't cornered a market or bought up rare resources.

The basic premise of me claiming my business is ethical is I have based my business on doing whats best for the community rather than maximium profit.

The problem I have with BTL is its all about maximium profit with little regard for the good for the community.

This is how council/housing association are considerably cheaper as they aren't out for massive profits but to provide affordable housing.

You may disagree but surely you can at least understand my point of view.

wotsthat

Percy1983 wrote: »

The problem I have with BTL is its all about maximium profit with little regard for the good for the community.

I don't know many BTL owners but they all run their businesses like you i.e. they prefer to charge a competitive price as this leads to a long term if slightly lower return.

One couple I know have owned a BTL since about 1996 and have had about 4 lots of tenants in that time. They've averaged less than a couple of hours a month work on the project so they're delighted and the tenants are happy having competitively priced accommodation and a nice landlord.

How many BTL owners do you know?

mayonnaise

Percy, this 2nd business you started in August, is it less or more ethical than the video business?

Percy1983

mayonnaise wrote: »

Percy, this 2nd business you started in August, is it less or more ethical than the video business?

Well so far usinf the same ethics, it the photography side.

I will say the actual product I am thinking of offering to schools isn't in place yet but here is what I am thinking.

Currently the school photos can cost £40-£50 if you want a few copies in many sizes.

ie, £20 for a 10x8, £15 for 4 x 6x4 and another £15 for another 6 or 8 of a smaller size.

So I am thinking potentially a pack choice like the above at £15, but then additional prints at cost + 5p-10p with a choice of being framed or not.

In short I see currently photographers make there money on one pack and just laugh there way to the bank if people buy more than one, I intend to make my money on one pack and be fair with all additional prints.

As said finer details to be planned, but how does it sound?

mayonnaise

Percy1983 wrote: »

As said finer details to be planned, but how does it sound?

Sounds good, mate.
But aren't school photos taken during school hours?
I read somewhere you have a day job as an accountant, how you going to make that work? And you haven't replied on how much time you would spend editing the average school video project like an nativity play.