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ComPropSolicitor
- Original Poster
- #42
disagree with the business comment. Being a landlord affords you the luxury of staying in employment i.e. job security and career progression. Whilst earning a passive income on the side. Owning a business consumes your life. I have had them before - they EAT money like there is no tomorrow and there is so much competition that if you stand still for 1 year you have lost your place as market leader. I know what I would rather do...
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billybob99
- Original Poster
- #43
They are't cut out for that. That's why they want to go down the tried and tested method of what they think is passive income. When its not really passive.
People seem to be getting passive income confused with regular income.
Passive is someone making a website, writing 30 blog posts and then earning £500 a month from affiliate sales.
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ComPropSolicitor
- Original Poster
- #44
The only depressing thing is that I have done this before - and, it's just not possible. I have had blogs with thousands of natural traffic hits per month paid for traffic paid experts to fine key content to sell and never made more than circa £10.00 a month. If you are doing it then I am really impressed. But my experience tells me its just not possible (certainly not with 30 posts).
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Got to agree with AllupHere. 40k into property to make a few 100 quid per month and pray to God the property market doesn't crash/ interest rates don't increase. In 10 years time you might be making a few grand per month if everything goes your way.
40k into starting a half decent business and you can be 'rich' by most peoples standards within a year or 2.
40k into starting a half decent business and you can be 'rich' by most peoples standards within a year or 2.
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billybob99
- Original Poster
- #46
That is fair play.
But CamperReport.com earns $8k a month, passively from Ads and Amazon Affiliates. It generates 100,000 pageviews per month.
I've used a lot of these techniques to get my portfolio of websites (my web properties so to speak) all generating a few bob (nowhere near $8k) a month but it pays all my bills.
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My rental properties (which I have owned for 25 years) are in London so can't speak for Hull but the main points to bear in mind (apart from those already covered above) are:
1. HMOs are always problematic, not just because of licensing requirements but because the nature of them means that you will have a high turnover of tenants. You may also have anti social behaviour to deal with. This means that it will be a lot of hassle for someone, whether you or a managing agent.
2. You will have to factor in the cost of an accountant to prepare and file your company accounts. I pay well over £1000pa for mine which will eat into your small profits as will the management fees and the gas inspection/boiler repairs etc.
3. This may not affect Hull but it is certainly affecting other universities - Brexit is causing EU students to look elsewhere. Some non EU overseas students are also put off from coming here because of the perceived hostility towards foreigners. Many universities are on the brink of financial disaster. Some universities will have to shrink or close. A point worth bearing in mind if you are looking to students for your rentals.
4. The other large group who rents single rooms are EU migrant workers. They are dwindling in number too.
5. Property prices in London are still falling - some areas have lost 20% of their value already. If London house prices continue to fall then the effects will eventually ripple out to other parts of the country. Although it may take a couple of years to reach Hull, if you do take a 75% mortgage and your property value drops then you may find it difficult to remortgage or may be forced to add more cash to get the ratio back up.
6. Many landlords have exited the BTL market in that they are either not buying or starting to sell off their portfolios. In my area the preferred rental property is a one bed flat -these would have been snapped up by investors in that agents had lists of investors who would buy anything - now they are languishing unsold on the market - too expensive for first time buyers and no longer attractive to investors. So certain property types will fall in value for this reason alone, especially if a glut of them comes onto the market. The anti Landlord legislation hasn't fully come into force yet so some landlords are still hanging on but not for much longer.
7. The government is hostile towards landlords and more and more legislation is coming out to thwart them. The removal of mortgage interest relief followed by the increased stamp duty is nothing compared to the removal of the section 21 notice which is in the pipeline. We are gradually going back to the protected tenancies of the 1970s.
But having said all of that, at the end of the day it comes down to the maths and it may work better in Hull where houses are cheap than other parts of the country.
1. HMOs are always problematic, not just because of licensing requirements but because the nature of them means that you will have a high turnover of tenants. You may also have anti social behaviour to deal with. This means that it will be a lot of hassle for someone, whether you or a managing agent.
2. You will have to factor in the cost of an accountant to prepare and file your company accounts. I pay well over £1000pa for mine which will eat into your small profits as will the management fees and the gas inspection/boiler repairs etc.
3. This may not affect Hull but it is certainly affecting other universities - Brexit is causing EU students to look elsewhere. Some non EU overseas students are also put off from coming here because of the perceived hostility towards foreigners. Many universities are on the brink of financial disaster. Some universities will have to shrink or close. A point worth bearing in mind if you are looking to students for your rentals.
4. The other large group who rents single rooms are EU migrant workers. They are dwindling in number too.
5. Property prices in London are still falling - some areas have lost 20% of their value already. If London house prices continue to fall then the effects will eventually ripple out to other parts of the country. Although it may take a couple of years to reach Hull, if you do take a 75% mortgage and your property value drops then you may find it difficult to remortgage or may be forced to add more cash to get the ratio back up.
6. Many landlords have exited the BTL market in that they are either not buying or starting to sell off their portfolios. In my area the preferred rental property is a one bed flat -these would have been snapped up by investors in that agents had lists of investors who would buy anything - now they are languishing unsold on the market - too expensive for first time buyers and no longer attractive to investors. So certain property types will fall in value for this reason alone, especially if a glut of them comes onto the market. The anti Landlord legislation hasn't fully come into force yet so some landlords are still hanging on but not for much longer.
7. The government is hostile towards landlords and more and more legislation is coming out to thwart them. The removal of mortgage interest relief followed by the increased stamp duty is nothing compared to the removal of the section 21 notice which is in the pipeline. We are gradually going back to the protected tenancies of the 1970s.
But having said all of that, at the end of the day it comes down to the maths and it may work better in Hull where houses are cheap than other parts of the country.
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I have got a business that I’ve worked hard at to get to 750k ish turnover, but don’t really enjoy it. Property I do but it’s perdoanl preference
Internet seems simple just tried and done just shy of 1k this week on sales yes profits not great but still 400 after all costs. I’m happy with that I don’t want to be a millionaire want to earn as much as I can but need to get life balance right at the minute I admit I haven’t. Property will let me do this and main business will probably be sold in next few years
Internet seems simple just tried and done just shy of 1k this week on sales yes profits not great but still 400 after all costs. I’m happy with that I don’t want to be a millionaire want to earn as much as I can but need to get life balance right at the minute I admit I haven’t. Property will let me do this and main business will probably be sold in next few years
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100% not that simple. It is not just a case of getting a management company and job done?
I was a landlord, in 2 years we had:
A tenant who burnt the carpet and then denied it. Bit of hassle finding the receipt showing it was fitted a day or 2 before he moved in.
We had a tenant who grew a cannabis farm in the property. Same tenant took some bricks out to put her ventilation for the farm in there. She also painting the house using what I can only assume was a sweeping brush. She took the carpets up and put wooden flooring down... badly. She left a load of crap in the house... the garden... the path out the back. She did not tell us she had moved out, the rent just never cleared one month. We then had to issue a S21 (2 months no rent), keep hold of her crap for a few weeks to see if she came for it (knowing she would not).
None of it was worth chasing through the courts.
You will also have your self assessments to do.
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Again 6 monthly is to long especially if they seemed dodgy which they must have done.
Everyone has a bad story about a bad tennant I got locked up for fighting in streets with one. Now make sure agent goes to where they are currently living with 10 Mins notice to discuss property saved some head aches. If house is a dump just a simple call as passing and sorry you have been unsuccessful someone else has rented it, if kept like you expect rent to them
Everyone has a bad story about a bad tennant I got locked up for fighting in streets with one. Now make sure agent goes to where they are currently living with 10 Mins notice to discuss property saved some head aches. If house is a dump just a simple call as passing and sorry you have been unsuccessful someone else has rented it, if kept like you expect rent to them
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What if they don't seem dodgy though?
Wouldn't want to rent from you if you do check more than every 6 months and want to turn up at my present address...only ever had 1 check done whilst renting (and passed) and have rented for 10 years or more...must not look too dodgy! LOL
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If they seem dodgy polititely told it’s been rented and they were unsuccessful
Every agent I deal with initially does a min of 3 months and I deal with the main agents and some small independents
Your agent wants sacking, no check in 10 years? It’s not just to help landlord it’s also make sure that property is upto scratch for tenant. Yesterday thenagent did one found fence leaning and issue with door repaired today And cost was minimal to repair. If fence had been left for say another year probs need complete new fence. Tenant buzzing with swift and quick repairs thinks I’m superman
Every agent I deal with initially does a min of 3 months and I deal with the main agents and some small independents
Your agent wants sacking, no check in 10 years? It’s not just to help landlord it’s also make sure that property is upto scratch for tenant. Yesterday thenagent did one found fence leaning and issue with door repaired today And cost was minimal to repair. If fence had been left for say another year probs need complete new fence. Tenant buzzing with swift and quick repairs thinks I’m superman
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The lady was not dodgy or did not appear to be, she was a receptionist for a solicitors and had 2 kids under the age of 10. She came across very professional. We think what happened is that she started seeing some lad and he was a bit of a bell end and roped her in to his way of ilfe, but who knows, she could just be a scrote that came across well.
She was in there for 11 months. We visited after 2-3 months and 3 months later, there was a problem with a window so we sent round a tradesman who told us the house seemed fine - we assumed this meant it was how we last seen it, that was my mistake 100%, but we had no reason to doubt any problems.
The point I am making is that tenants will not treat the property like you would expect, people lie to get out of paying for things. It is not a case of renting it out, leaving it to the agent and collecting money - there are headaches. If you leave it to the agent, they will put their bit on top.
Rather than make accusations or assumptions about how I run things, why not ask the questions first?
She was in there for 11 months. We visited after 2-3 months and 3 months later, there was a problem with a window so we sent round a tradesman who told us the house seemed fine - we assumed this meant it was how we last seen it, that was my mistake 100%, but we had no reason to doubt any problems.
The point I am making is that tenants will not treat the property like you would expect, people lie to get out of paying for things. It is not a case of renting it out, leaving it to the agent and collecting money - there are headaches. If you leave it to the agent, they will put their bit on top.
Rather than make accusations or assumptions about how I run things, why not ask the questions first?
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Estate agents have all my trademarks details, so any issues they call them they go out usually just do it if wasy fix or if over £100 drop me a quote. So far this year spent 240 on repairs that I’m happy with, all houses I have are done well and everything possible is done to make sure don’t grt any issues going forward. Your right tho the perfect tenant can easily end up to be a nightmare and you do get them.
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I would say the first few years will be hard for you, all profits will be lost to some scumbag who non-pays for months and leaves you with eviction costs and work to do in the property, thats how it is in the cheap areas, you just have to accept it,
Although the yields are very good, 10-15% in my area (south wales) this is because nobody has any cash and cant afford to buy, you will never struggle to find a tenant, but choose wisely
once you break through the 8-10 properties barrier the costs of someone non paying or being evicted can be covered easily, and you can accept it much easier, it becomes a business cost. but its hard work getting there
for ref, i have 17 units currently, all let I've had as many as 25, but thats due to buying ans selling renovations also, there is very good money to be made there, great for raising deposits
Ryan
Although the yields are very good, 10-15% in my area (south wales) this is because nobody has any cash and cant afford to buy, you will never struggle to find a tenant, but choose wisely
once you break through the 8-10 properties barrier the costs of someone non paying or being evicted can be covered easily, and you can accept it much easier, it becomes a business cost. but its hard work getting there
for ref, i have 17 units currently, all let I've had as many as 25, but thats due to buying ans selling renovations also, there is very good money to be made there, great for raising deposits
Ryan
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