buy to let council tax warning and other warnings

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How about using a property guardian?

http://adhoc.eu/great-britain/

lighting_up_the_chalice

ptwparkinson wrote: »

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

That wasn't a decision taken by your council. That was a decision taken by central government, who pay the Housing Benefit. Your council just administer the rules.

ptwparkinson wrote: »

flytipping into empty yards have to be cleared and paid for by the landlord ( another reason for alley gates )

Another reason not to have voids, which will attract this sort of thing, along with break ins, valdalism, theft, drink/drugs etc etc etc etc etc.

ptwparkinson wrote: »

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

The council may appear to take the side of the tenant, but selective licensing is about regulating landlords, specifically gangsters, out of area landlords and speculators happy to leave properties empty. It's landlords who have the right to refuse to grant tenancies to unsuitable tenants. Selective licensing helps those landlords who want to see the standards within the area rise by getting rid of the landlords who don't give a stuff who they rent to as long as some rent ends up in their pockets. Get rid of those landlords and you might have half a chance of getting some tenants in your voids. Having said that, it rather sounds as if you may be part of the problem, not the solution.

ptwparkinson

I went in with my eyes open .
I formulated a business plan .
I knew what I was doing at the time .
Read my posts thoroughly and you will realise that I am suffering because I am being robbed of rent , central heating systems etc etc etc
If the tenants paid their rents just like I pay my mortgages and have done throughout my entire life --- there have been lots of times before I got into Buy To Let when I was struggling to keep the roof over our heads but I would put in extra hours and do weekend work to keep afloat --- the people who are on benefits who don`t pay rent don`t pay their rent because the would rather spend the rent money on booze , drugs and fags --- so my business plan is failing because of the crimes which have been committed against myself
I did not get into Buy To Let to line my pockets and buy powerboats etc etc --- I got in to try to build a future for our two children because it s gonna be pretty bleak out there -- I don`T drive flash cars --- I don`t wear expensive clothes and I rarely treat myself to anything --- my only hobby is flightsimming because I can no longer afford to fly aeroplanes which was my hobby when I was in well paid jobs as a freelancer -- I managed to get one son through a good local private school --- he got 4 A plus 3 A`s and 2 B`s -- just finished his A levels and is heading onto Uni in September to do Physics -- the younger son goes up to senior school in September but I really can`t afford to send him the same way unless some miracle happens .. perhaps my gold mining shares will come good -- who knows
Anyway I am saying all of this because it seems that a picture is being painted of myself being a greedy capitalist --- no I wasn`t duped by seminars I stayed well clear and when everyone was jumping into off plan deals I stayed well clear --- I am now 61 and I just really have to keep going now and not lose my faith --- but I think that there are worse things to come for us all -- one of my problems is that I am taxi driving to pay the bills and I find it difficult to find the time to visit the properties and find tenants so I have a fixer who finds tenants locally and does the repairs etc but he is now getting fed up with the way in which tenants behave --- tried an agent recently --- 7 weeks have gone by and they haven`t found me one tenant --- all they want to seem to do is carry out repairs etc and charge me three time what my other man is charging and then they don`t even return phone calls -- so they will get their marching orders next week unless they can prove that they can deliver --and the comment about the drop in base rates --- well it`s the only thing that has kept me going and kept my head above the waterline --- all of the profits have been spat back into the properties to replace stolen boilers etc and repair the damage that has been done -- then as landlord you have to pay mortgages , building insurance , insurance for central heating breakdowns etc , agency fees , TAX , repairs and refurbishments
look at the figures
rent 75.00 ( should be 85 but 75 seems to be what you can get )
x 52 = 3900 take off 8 weeks voids 3900 - 600 = 3300


out
mortgage £ 1500 pa
insurance £300
council tax 8 weeks 160
Accountancy £ 100 per property £100
Repairs £ 750 ( this could be to replace carpets , broken doors , locks , windows . leaking taps and myriad of other things )
Central Heating insurance £ 576 if you go with BG but it can be had for say £ 300 elsewhere


Add it up and show me where the profits are ---- if the rents had carried on rising the way they should without a credit crunch in line with earnings then the rents now would be about £ 110 per week and that would have been delivering profits but the council have as I have said actually dropped rents and they don`t seem to want to increase them so we are screwed !!!
I gues the lesson to be learned from myself is that ne matter how good things are at a certain time -- the economy can turn around and bite so hard that you wonder when your wounds will ever recover AND I believe this --- only become a landlord if you can buy for cash and do not be tempted to buy in the cheaper areas --- BUY WELL and then you can jump onto the roller coaster !!!!! because if you are mortgaged up to the hilt the banks are predators and they can always come and just pull the rug from beneath your very feet --- AND DO NOT BELIEVE THE CRAP YOU WILL GET FROM MORTGAGE BROKERS AND FINANCIAL ADVISERS DO YOUR OWN RESEARCH TO CHECK WHAT THEY HAVE TOLD YOU AND THEN CHALLENGE THEM IF NECESSARY AND THEN YOU SEE THEM BACKING DOWN AND LOOKING FOR A BETTER PRODUCT FOR YOU -- most of them are just in it to line their own pockets and let you take all of the risk !!!

lighting_up_the_chalice

ptwparkinson wrote: »

I went in with my eyes open.....


........ do not be tempted to buy in the cheaper areas.......

Eyes wide open? Really? Why did you think they were so cheap? You can't possibly have thought it was because the tenants were so reliable and the returns so good that they drove the price DOWN.

These cheap houses are (and always were) cheap for a reason. They are a nightmare to manage, cursed by all the issues you mention (and a few more) and a magnet for the dregs of society no other landlord would touch with a barge-pole. And, of course, any decent tenant will run a mile from the area, because they can.

That's not rocket science. That's just common sense.

Unless you have the time and resources to micro-manage these properties, the best advice you will ever read is "Get out... Get out now!". Leave these properties to the gangsters and rogue landlords they attract, with their neckless, thick armed rent collectors and casual attitudes to landlord/tenant legislation/repairs. THEY are the only ones able to squeeze a profit from them.

Pixie5740

It sounds like you benefitted when HB was paid directly to you and the government would pay the full whack on whatever rent you were charging. This was an unsustainable burden on the tax payer...the coffers are empty.

Are there not circumstances where the council can pay the LHB directly to the landlord? Circumstances such as the tenant being in rent arrears of 8 weeks or more, or tenants with drug and alcohol problems, or tenants who have consistently failed to pay rent in the past.

Flashmanchop

Personally, being a little harsh - you need to concentrate on getting a ptroperty fixed up into a liveable condition, and get them let asap for hatever the bedroom rate is. one by one you can get them filled.

you need to learn what type of individual you are dealing with, and what the risk is in getting, or not getting your rent. run it as a business, so think of it as one.

schwam66

dont mean to hijack your thread with my own question but curious as to how it works with the council then. Say i wanted to rent the house i own now and move into a new house, obviously i have to tell the morgage company and get the right insurance and all that, but what about the council? i would need to transfer the council tax into the tenants name? or could i just leave the council stuff in my name and have tenant pay me that way to avoid the council wanting to take their extra bits? just curious....again sorry to post on your thread about something other than your issue...hopefully you will hit on a bit of luck and things will get sorted :-)

Pixie5740

schwam66 wrote: »

dont mean to hijack your thread with my own question but curious as to how it works with the council then. Say i wanted to rent the house i own now and move into a new house, obviously i have to tell the morgage company and get the right insurance and all that, but what about the council? i would need to transfer the council tax into the tenants name? or could i just leave the council stuff in my name and have tenant pay me that way to avoid the council wanting to take their extra bits? just curious....again sorry to post on your thread about something other than your issue...hopefully you will hit on a bit of luck and things will get sorted :-)

What extra bits are the council going to be taking?

If your property is in Scotland then by law you must register with the local council as the landlord for that property.

If you let the property as a HMO then depending on the type of HMO then by law you may have to register it with the council.

In the case of a HMO then you, as the landlord are responsible to paying the council tax although this should be factored into the amount of rent charged.

If it's not a HMO then you just inform the council that you are moving out and the tenant is moving in. This closes you council tax account for that address and opens a new one for the tenant.

The very fact that you are trying to find ways around paying whatever fees might be due to the council at this early stage is ringing alarm bells that you should not become a landlord.

lincroft1710

schwam66 wrote: »

dont mean to hijack your thread with my own question but curious as to how it works with the council then. Say i wanted to rent the house i own now and move into a new house, obviously i have to tell the morgage company and get the right insurance and all that, but what about the council? i would need to transfer the council tax into the tenants name? or could i just leave the council stuff in my name and have tenant pay me that way to avoid the council wanting to take their extra bits? just curious....again sorry to post on your thread about something other than your issue...hopefully you will hit on a bit of luck and things will get sorted :-)

You have to ask the mortgage company's permission to rent the house out. They may grant this or insist you take out a "buy to let" mortgage.

In law the tenant is responsible for paying the Council Tax, the exception is if the property is a "House in Multiple Occupation" (HMO) when the landlord is responsible.

schwam66

Pixie5740 wrote: »

What extra bits are the council going to be taking?

If your property is in Scotland then by law you must register with the local council as the landlord for that property.

If you let the property as a HMO then depending on the type of HMO then by law you may have to register it with the council.

In the case of a HMO then you, as the landlord are responsible to paying the council tax although this should be factored into the amount of rent charged.

If it's not a HMO then you just inform the council that you are moving out and the tenant is moving in. This closes you council tax account for that address and opens a new one for the tenant.

The very fact that you are trying to find ways around paying whatever fees might be due to the council at this early stage is ringing alarm bells that you should not become a landlord.

the extras were in regard to the OP he mentioned something about £500 extra or something if i remember right so i was just curious how it all works.....wouldnt be HMO and i wouldnt try to side step around the fees, was just curious about how it all works, thanks.