buy to let council tax warning and other warnings

ptwparkinson

I made the right choice at the right time but the situation has deteriorated out of all proportion since the beginning of the credit crunch --- it was going well until then and then the councils dropped all of the rents and brought in rules like one person in a 2 bed house can only get the minimum rent --- one problem is that in these areas there is very very little one bed accomadations ---- flytipping into empty yards have to be cleared and paid for by the landlord ( another reason for alley gates ) in the areas where I have paid for licenses the councils have done nothing ---- the council takes the side of the tenant all of the time -- I could tell you things that would make your hair curl

ptwparkinson

the bill for licensing is not passed onto the tenant -- the landlord pays for it and there is a fee of over £ 100.00 every year for monitoring and another £ 500 bill after 5 years --- it`s just another way of the councils snatching money off us and expanding these departments so that they give jobs to their favourite friends --- I have seen this happen on a regular basis ----

jjlandlord

Sorry to be blunt, but if you have 20 properties just in "these areas" (c.f. other thread) then you are a professional landlord who's expected to have a plan and know what he's doing when relying on benefit tenants.

However, I do agree that some councils are politically motivated, or worse.
They seem to want to drive private landlords out of the market, but they don't have any social housing. Either they are insane or they are just cynical with a plan to take over, somehow.

whalster

Many local councils now lease property usually on a commercial lease of a minimum five year period . They will renovate to a habitable standard .
From what I have seen in my area although many landlords avail themselves of this it is not something I would personally do however in your situation it must be worth looking into .

A good number of landlords I have talked to though have let the, on this basis and are two years into the lease or so and have not factored in an increase in interest rates which may come back to bite them .

If you can do this do it factor in a couple % bas rate rise and just cover costs for a few years .

Also check with your mortgage providers to cover yourself as most specify AST's .

Good luck

harrys_dad

You complain about the effects of the market crash on your ability to let your houses and generate income. This is the same crash that has led to interest rates on your mortgages being at an all time low for the last 5 years. If you cannot balance your books even with rates this low you need to get out now before they rise again. You are a business man with a failed business plan.

BillJones

It's sad when someone tries their best with a new business, and finds that it failed, but it sounds like this is the situation which you are now in.

I can understand not wanting to crystallise your losses now, and wanting to in effect take another "roll of the dice", but that's not often the best strategy. One of the first things that I was taught in my training to be a trader is an awareness of the psychological pitfalls that lead you to take your profits too soon, and run your losses too far. Your post implies that you may be doing the latter.

Flashmanchop

I have to ask why your properties are empty.
All mine in "poor" areas are full up, and voids are measured in fractions of a %. I only ever ask what the eligible weekly rate is, and ensure I get the rent within hours of them getting it. you soon learn how people work and what your chances are of recovery.
I'm not trying to teach you to suck eggs, but with 20 properties, yes, you will have bother, and council tax bills, but this should be manageable.

Conrad

My number one rule is only accept the very best tenants - geeky types that just never pay anything late. I don't bother with references, I just look at their last few months Bank stats and see how they are with money managing.
Nobody rough, slightly disorganised, needy, splitting with partner etc etc.


Many LL's I know are not nearly choosey enough and sure enough they get all problem tenants.


OP - I was posting on this very forum in 2006 saying a crash was coming (based on what I'd read on the housepricecrash website). There's an old adage in business about not buying at the peak and it was pretty reasonable to assume after a decade of growth a crash was a possibility.


Hang in there, the economy is improving and prices will go up everywhere in time. Now is the time to be confident about the future, but remember another bust will come in a few years don't be a muppet like those that get swept along at property seminars and buy at peak.

KMMT

It is very difficult to be sympathetic to someone who has brought 20 properties to let out. There is a need for rental properties, but I know you would not be complaining if you were lining your pockets! You brought too many to try & make money & it has failed. Take the hit & realise buying properties to let isn't the easy money maker some people would believe!

pinkshoes

You benefited when it was going well, and now need to put plan B into place...

No one can predict the housing market, economy, and what will happen in each area, so you need to deal with it and move on.

Ultimately, it's ONLY money, so just take a loss and sell for whatever you can get, then invest more wisely (if possible) next time.