The joy of being a landlord

[Quartz]

The landlords are keeping the purchase market too high for prospective buyers.

Cite?

If you remove landlords from the equation then the influx of availability can lead to cheaper (relatively) purchase prices, and more people will be able to buy.

Cite?

I presume you're talking about private landlords, but they'll just be replaced by corporate landlords. That's the efficient way to do it anyway since a company can offset mortgage repayments against income, unlike private landlords. Setting up a company isn't exactly difficult or expensive.

There's so much housing out there, it's just not affordable, or available to normal people.

If it's not affordable then even landlords won't buy it: they need to have tenants.

 

[Quartz]

161 properties unoccupied for 2-5 years (charged 100% council tax)

Do remember that - especially in expensive areas - properties vacant due to the owner's death can take a long time to sell thanks in part to probate.

 

[Quartz]

you can build a block of flats without parking,

Parking doesn't cover just cars but bikes of all varieties too. Do you really want residents to carry their motorbike to the top floor?

As the population expands of course local authorities need to make sure there are sufficient facilities in the area,

Local authorities? You mean you, the council tax-payer.

 

[Quartz]

Either stay on the side lines and earn your pittiful 6%, go big and do it properly, or be quiet.

Go calculate the cost of being between tenants. Not only the lost rent but the costs of evicting the existing tenant, the costs associated with reletting, and so on. It's often more cost-effective to keep the tenant.

 

[Quartz]

So maybe 4 or 5 months in the year you can let it out but then what happens the rest of the year?

On Skye the season is 9 months of the year. I presume it's similar for other areas.

 

[Quartz]

Just like if you scuff a wall in the house.

Unfortunately the deposit is limited.

No way to make a profit now if you have a mortgage and pay 40+% tax on rental income.

Look into transferring it into a company.

 

[Quartz]

It might make people wonder why Councils are still banned from building and running more Council houses.

Cite?

 

[Quartz]

So really what this means is the private rent landlords/landladies are really over charging if a loss can be made like this and be ok with the income.

Speaking as a landlord whose tenant is supported by the council, I think you're misunderstanding: the landlord isn't taking a loss but earning less. And by renting to the council the landlord likely doesn't need to buy payment insurance, so it's swings and roundabouts.

 

[Quartz]

What was suggested was landlords rent at below market rates and make up the difference with capital gains when they sell. Thats subsidising rent. For what reason is unclear.

And it assumes that property prices will increase above inflation.

 

[Quartz]

That's still 3 or 4 months lost rent. Plus the money to renovate the flat for new tenants.

 

[Quartz]

Let's not worry about the fact that these people have stacks of debt and probably struggle to put food on the table.

Assumptions on your part.

 

[Quartz]

My heart bleeds. It's such an injustice when you can't turn the least well off in society into a guaranteed, hassle free income stream, isn't it.

Okay, I challenge you to put your money where your mouth is. You have a pension, right? That pension fund likely holds shares in properties or owns properties outright. So I challenge you to write to your pension manager and ask that all non-payments of rent are to be deducted from your pension.

 

[Quartz]

We need government to start building masses of council housing with legal provision that it cannot be sold off.

What's stopping your local council from building?

 

[Quartz]

If you're paying off a mortgage that cash is profit. Sure. You might not be able to access it now, but you can later.

That's not correct: you have to allow for Capital Gains Tax when you sell, maintenance costs, agency fees, and much, much more. And if you're a private landlord you get taxed on your rental income before paying the mortgage. And your asset - the property - is not readily fungible: it can take a long time to sell.

 

[Quartz]

So what you are saying is really its a crap and difficult business proposition and that a lot of smalltime landlords have overstretched beyond their means and this added risk cost is passed onto the renters.

No. I said what I said and no more.

 

[Quartz]

Developers say they aren't making enough profit to build.

Can you give a cite? Because I regularly lunch with someone who builds for developers and - at least hereabouts - that's not what he reports. I used to know an actual developer but he died early this year, so all I can say of him is that he made a good living.

 

[Quartz]

Our management company keep trying to get us to increase our rents.

Yes. Remember that if you put up the rent the tenant could leave and a month or two without rent is going to be a big hit - and don't forget the expense of renovating the property for new tenants. That 'increase' could take years to recover.

 

[Quartz]

There's a guy on youtube that does inspections of new builds and some of the stuff he's finding (very regular uploads) are amazing given how basic and obvious they are,

Don't forget that he'll only be putting the interesting stuff - the failures - on YT and he'll probably be inspecting houses all day every day.

 

[Quartz]

or worse, an MP...

Steady on!

 

[Quartz]

You should take professional advice. In particular you should look into whether or not you should proceed on a personal basis or form a limited company.