Insane rent increase.

fez said:
This risk that landlords take on is almost 100% BS. Let’s ignore the fact that house prices almost everywhere are rising at an insane rate and cut right to the chase. Being a landlord is largely ******* easy, you can pay someone to do 99% of the work if you want, you make money every month AND you have someone else paying off your mortgage.

Barring a catastrophic disaster you are taking a tiny risk for massive profit at someone else’s expense. Probably someone far worse off than yourself.

My partner has a house that brings in about 500 more than the mortgage cost every month (she isn’t even charging market rate), the house has nearly doubled in value in the last 12 years and she has to do very little apart from occasionally talking to the company she pays to manage it and every 5 years or so she has to pay out a chunk to replace large items I.e the kitchen or bathroom or all the carpets.

In about 15 years she will have a house worth probably 3x what she paid for it which is paying her more each month than a lot of people earn and it won’t have a mortgage on it.

The housing market is a mess and anyone who says otherwise is burying their head in the sand or doesn’t want to admit that they are fantastically lucky and are benefitting from other peoples misery in some way.
Click to expand...

I had tenants whom were in and then didn't pay for almost 9 months, took loads out the house and disappeared abroad. That loss and the destruction of property was very expensive and I almost lost everything from that. I'll never see the loss income or similar.

There is risk and cost involved. Yes making huge profit isn't good but making an additional £50 to £100 a month to have in a pot to try and cover shortfalls, periods of no rent, redecoration, major maintenance and such forth add up.
 
Curlyriff said:
I had tenants whom were in and then didn't pay for almost 9 months, took loads out the house and disappeared abroad. That loss and the destruction of property was very expensive and I almost lost everything from that. I'll never see the loss income or similar.

There is risk and cost involved. Yes making huge profit isn't good but making an additional £50 to £100 a month to have in a pot to try and cover shortfalls, periods of no rent, redecoration, major maintenance and such forth add up.
Click to expand...

That is a very rare occurrence and not really an argument against the fact that the vast majority of landlords make very good money over the long term. Even if you lost £50k on that, by the time someone has paid off your mortgage for you in x years, you will still have made a good return. As I have said before in this thread, you can always come up with edge cases that buck the trend but most people do very well if they have more than one property and rent them out.
 
Curlyriff said:
I had tenants whom were in and then didn't pay for almost 9 months, took loads out the house and disappeared abroad. That loss and the destruction of property was very expensive and I almost lost everything from that. I'll never see the loss income or similar.

There is risk and cost involved. Yes making huge profit isn't good but making an additional £50 to £100 a month to have in a pot to try and cover shortfalls, periods of no rent, redecoration, major maintenance and such forth add up.
Click to expand...

Didn't you have landlord insurance to cover all that?
 
fez said:
This risk that landlords take on is almost 100% BS. Let’s ignore the fact that house prices almost everywhere are rising at an insane rate and cut right to the chase. Being a landlord is largely ******* easy, you can pay someone to do 99% of the work if you want, you make money every month AND you have someone else paying off your mortgage.

Barring a catastrophic disaster you are taking a tiny risk for massive profit at someone else’s expense. Probably someone far worse off than yourself.

My partner has a house that brings in about 500 more than the mortgage cost every month (she isn’t even charging market rate), the house has nearly doubled in value in the last 12 years and she has to do very little apart from occasionally talking to the company she pays to manage it and every 5 years or so she has to pay out a chunk to replace large items I.e the kitchen or bathroom or all the carpets.

In about 15 years she will have a house worth probably 3x what she paid for it which is paying her more each month than a lot of people earn and it won’t have a mortgage on it.

The housing market is a mess and anyone who says otherwise is burying their head in the sand or doesn’t want to admit that they are fantastically lucky and are benefitting from other peoples misery in some way.
Click to expand...
Amen brother. My wife and I earn about £60k/yr and **** away £14.5k of that on rent for a two bed terraced house. Tack on petrol, bus/train fares, food, energy bills, phone bills, insurance, school uniforms, etc and you just don't have a chance to raise the £40k you need to even START looking at getting on the property ladder where I am.

Our landlady tried to crank the rent up by 25% last year and we managed to negotiate to rent direct from her since the agency has been so crap to keep the rent the same price. If she decided to do it though, we would be done because the prices in our area HAVE gone up that much and we just can't afford that on top of the bloody energy price and NI increases.
 
Surveyor said:
Didn't you have landlord insurance to cover all that?
Click to expand...

Live and learn but this we're from people I'd known for almost two decades before moving in, had been over for Xmas and holiday together before and then that happened after 2.5 year of being tenants fine.

Nothing, no explanation. Just zero communication and in ability to get anywhere to resolve.
 
Curlyriff said:
Live and learn but this we're from people I'd known for almost two decades before moving in, had been over for Xmas and holiday together before and then that happened after 2.5 year of being tenants fine.

Nothing, no explanation. Just zero communication and in ability to get anywhere to resolve.
Click to expand...

Plenty of people are like that. Fine until something happens that makes it easier to be a **** than a good person and you find out what they are really like. I'm sure they will have justified it to themselves in some crap way.
 
Lol at the people blaming increasing house prices, and seemingly also all of lifes problems, on landlords :cry:

This thread is hopeless
 
wnb said:
This, new boilers, boiler repair and a roof repair and one tenant leaving a house like a dump ate all the profit.
Click to expand...


Then sell the house for what you paid to a first-time buyer (plus inflation), break even and let someone else escape the rent trap.
 
cheesyboy said:
When you fix a property you own, who do you bill for your time?
Click to expand...

The same as anyone self employed, I don't get paid a fixed hourly rate for every hour I work, my business invoices customers, my business pays out any costs it incurs and I get to keep the difference (profit) as income which I declare and pay income tax on. That's true for any small business. Some businesses quote customers based on an hourly rate but you can't bill customers for e.g. doing quotes, or picking up parts, or doing your own accounts, so all small businesses have to bill customers allowing for all the extra costs and time that go in to providing that service.
 
andybird123 said:
The same as anyone self employed, I don't get paid a fixed hourly rate for every hour I work, my business invoices customers, my business pays out any costs it incurs and I get to keep the difference (profit) as income which I declare and pay income tax on. That's true for any small business. Some businesses quote customers based on an hourly rate but you can't bill customers for e.g. doing quotes, or picking up parts, or doing your own accounts, so all small businesses have to bill customers allowing for all the extra costs and time that go in to providing that service.
Click to expand...
But when you fix your own property, your customer is yourself. You're not providing a service or a good. That's why it's not a real job any more than when I mow my lawn.
 
smeemi said:
Same except for have a flat I am renting out to students. Anytime they have an issue, whether a light bulb needs replacing or there's a communal flat leak, I'm responsive and try get there asap.

They will be moving out in August and I plan to sell the flat. People automatically think landlords are scummy. I own a house and a flat. I did not intend to become a landlord..

I have lost about 50k on my flat, paid 260 in 2017, worth about 210 now. Flat prices have gone way down.

Buy to let is also not profitable. I don't make any money on it, probably lose money, especially when you factor in the price of the flat.

I will be selling it in October this year as there's too much regulation coming in and I can't be arsed with it. It's like a part time job that doesn't pay.
Click to expand...

Where is your flat?

Around here Flat prices continue to go up. 2 beds are £350k up from around £300k just a few years ago. Chingford, Greater London

Rent would be around £1500.
 
Last edited:
Depends what you want, I used to rent in some rather nice places but the constant price rises etc forced me to buy, I could only afford a cheap place so bought on a slightly rubbish estate, but at least it's cheap as chips and it's mine, sure the area ain't brilliant but it's a small price to pay.
 
Le Clandestin Brun said:
Lol at the people blaming increasing house prices, and seemingly also all of lifes problems, on landlords :cry:

This thread is hopeless
Click to expand...
I mean, imagine if every property currently being rented was on the market for sale. I have friends who have been offering over asking price on properties and don't even get a call back because competition is so fierce. The whole housing market is buggered for first time buyers and all the people buying up properties to rent them doesn't help that at all.
 
Devrij said:
I mean, imagine if every property currently being rented was on the market for sale. I have friends who have been offering over asking price on properties and don't even get a call back because competition is so fierce. The whole housing market is buggered for first time buyers and all the people buying up properties to rent them doesn't help that at all.
Click to expand...
Yes. My LL asking me if I ever thought about buying in the area. It's hard to buy one house when many folks have two.
 
Another way to look at it is that having a roof over your head is a basic need along with food and water. When you have more than one roof you are denying someone else the ability to have it. Good landlords are needed, however costs are increasing and there are some really bad landlords out there. I might be jaded by my own experience - recently moved out of a 5 bed property after 10 years with a young family. Landlord never decorated, did the bare minimum she could get away with and didnt comply with laws on renting. She is now expecting me to put the property back to the original condition it was when I moved in and is looking to charge me over £3k.
 
Devrij said:
I mean, imagine if every property currently being rented was on the market for sale. I have friends who have been offering over asking price on properties and don't even get a call back because competition is so fierce. The whole housing market is buggered for first time buyers and all the people buying up properties to rent them doesn't help that at all.
Click to expand...
But that would make the existing shortage or rental properties worse driving up rents for those that actually want/need to rent. The problem with the UK property market is a simple lack of supply across the board we need to build thousands more homes but there is no desire for this from Government of any colour they all set targets they never intend to meet.
 
You must log in or register to reply here.
Back
Top Bottom