Rents Up Again - New Record High....

IveSeenTheLight

Percy1983 wrote: »

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).

Sorry to be dismissive, but that really made me chuckle.
30 hours wouldn't be enough for me to really start to get to know the local market (one item I listed), let alone all of the other items.

Percy1983 wrote: »

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

That really depends and varies year on year.
For example, I tend to put a lot of work in up front, upgrading and refurbishing properties before I let them out.
It means I have a lower risk of being called out for any issues / maintenance requirements.
As the years go by, the risk increases and you have to spend a little longer.

I bought a 4 bed house a couple of years ago, put in a new kitchen, replaced carpets throughout, painted throughout.
There was a couple of minor niggles when the tenants first went in as they needed to understand how some things worked and somehow managed to break a window latch which I got replaced.
Since then, the last 18 months, I've not had to do much.

Another flat I bought about 7 years ago was also refurbished before I leased out. I've been called out a couple of times for the boiler, but since it's maintained and serviced regularly, I can easily get out the boiler company should there be something that requires anything more than bleeding the system.
I've been called out more times for lost keys than any real issues (although once the students flooded the kitchen so I had to get the flooring replaced).
I did replace the windows about 2 years ago, although now I'm looking at the shower and upgrading the consumer unit.

A third property (another 4 bed terraced house) the tenants have been keen to keep serviced themselves, so I have had little to do on that property.
The thing is, as a tenant of 7 years, who looks after my property, they have benefited by staying at 2007 rents, so it's a win win situation.

One factor you need to consider is that effectively, your always on call. Because it is an investment, I'm invested in responding to any issues ASAP to ensure that a) my property is kept maintained and b) the tenants see the efforts I make and hopefully look after the property accordingly.

As another poster mentioned, I market my properties lower than the market average, but maintain higher than average, this is why I have had a total of 16 days void spread across 3 properties in the last 7 years.

I've benefited by increased profits over the years as my mortgage cots have lowered whilst taking the opportunity to increase rents BETWEEN tenants.

Overall, I believe I am an excellent landlord, reflected in the flat twice being leased out without advertising as the leaving tenants recommended friends to take on a new lease.

Percy1983

ukcarper wrote: »

I can't see them building enough in the south east to reduce prices enough to enable the low paid to buy or rent privately without hope.

I don't think all BTL landlords are exploiting every penny they can.

If they aren't in it for profit what are they in it for?

On a lighter note, see what I have to put up with!
http://www.youtube.com/watch?v=2vR4LeL0yzE

:rotfl::rotfl::rotfl:

wotsthat

Percy1983 wrote: »

If they aren't in it for profit what are they in it for?

Happy smiles?

ukcarper

Percy1983 wrote: »

If they aren't in it for profit what are they in it for?

On a lighter note, see what I have to put up with!
http://www.youtube.com/watch?v=2vR4LeL0yzE

:rotfl::rotfl::rotfl:

They are in it for profit but that's not the same as exploiting every last penny.

IveSeenTheLight

Percy1983 wrote: »

The problem is I haven't cornered a market

Neither have I, 3 BTL properties in god knows how many is hardly a monopoly.

Percy1983 wrote: »

or bought up rare resources.

I'll give you that, the thing is, this is partly why I invested in property. Because I could see the resource becoming proportionally rarer and wanted to hedge my families future.

You wouldn't begrudge any person provisioning for their families future now would you?

Percy1983

wotsthat wrote: »

Happy smiles?

Lower prices bring those in.

ukcarper wrote: »

They are in it for profit but that's not the same as exploiting every last penny.

So many are charging the same as council houses?

ukcarper

Percy1983 wrote: »

Lower prices bring those in.



So many are charging the same as council houses?

If they did that they would be losing money.

Percy1983

ukcarper wrote: »

If they did that they would be losing money.

Are you sure, I have done the sums and I could make money renting at council rates.

IveSeenTheLight

Percy1983 wrote: »

So many are charging the same as council houses?

Panarama did a show a couple of weeks ago where a council house tenants was paying more of 50% of his income on rent AND then he still needed to pay council tax.

Daylight robbery I tell you.

Did the housing minister take the council to task asking about the costs and profit margin? No.

Actually if you consider it, the profit margin the councils have may far exceed that of a small entrepreneur burning DVD's , let alone BTL LL's with higher cost properties / mortgages.

Can you therefore consider Council houses income with private rentals income if you are not considering the costs of each?

The funny thing is, the BTL market only PARTIALLY FILLED THE GAP created by the council house RTB scheme.
Indeed, there are insufficient private rentals to drive down the market price.
You should be campaigning for more private rental properties.

And thus we are back to the Supply issue.

Percy1983

IveSeenTheLight wrote: »

Neither have I, 3 BTL properties in god knows how many is hardly a monopoly.


I'll give you that, the thing is, this is partly why I invested in property. Because I could see the resource becoming proportionally rarer and wanted to hedge my families future.

You wouldn't begrudge any person provisioning for their families future now would you?

The problem is your provision for your families future is jepordising another families future.