No Property News is Good News

Updated: January 13, 2018

I’m sure reading the property news headlines this week makes most landlords want to get back into bed, tuck under the covers and sleep through 2018.

Man hiding under the covers having heard property news

One day we’ll wake up to really positive property news!

With the Times Newspaper reporting that the “Boom in Britain’s buy-to-let sector is coming to an end” to the Negotiator regurgitating figures from the National Landlords Association’s opinion poll warning that “20% of it’s members plan to shrink their portfolio”, it would seem that we’re in a little bit of a pickle…

On a side note,  the NLA’s press team are doing a great job of drip feeding negative news.  Now I’m not having a dig, in fact, we help a number of NLA members find tenants etc and our Client Money Protection insurance (which protects our clients money if we had to close doors) is provided by UKALA, the NLA’s Letting Agency division.

However, folks, let’s pick up on some positives please… like the fact that even though “tax changes will drive 46,0000 properties out of the private rented sector”, those who are able to hold onto their investment properties should continue to see the reward from long term capital gain and dare I say, increased rents due to stock shortages.

Not to mention that landlords can still offset their tax liability by using a company like ourselves to find and guarantee rent at a fraction of the price of a traditional high street agent.  I am still so surprised that after serving landlords now for 10 years, we are still talking about how much is being spent unnecessarily on agency fees.

A typical high street agent will charge you up to 15% + vat (and they shouldn’t even be quoting + vat, it’s illegal) per month to “manage” a property.

The average rent we collect on behalf of hundreds of private landlords around the Country is around £1350 per month – and our service charge is equivalent to around 3.9% on average.. and yes, that includes vat.

And not only do we collect and guarantee the rent.. we will find you great tenants, carry out references, secure the tenancy deposit, write up your agreement and pay your rent on time every month without fail.. all that for just £89 per month.  And the take up of our Platinum package has been fantastic!  It proves that landlords prefer a risk free let.

It’s great to be mindful about issues that may affect your business being a landlord – tax changes, legislation updates, right-to-rent, universal credit so on and so forth.

Yes, the market is a little tricky at the moment however, 1) people will always need a roof over their heads, 2) mortgages are still incredibly difficult to secure for first time buyers and 3) we are growing in population every day.

To me, it sounds like property is a safe investment.

Would be interested to hear your thoughts?

Jonathan Daines.

Founder.

Summary
No Property News is Good News
Article Name
No Property News is Good News
Description
I'm sure reading the property news headlines this week makes most landlords want to get back into bed, tuck under the covers and sleep through 2018.
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LettingaProperty.com
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5 Comments

  1. eamon January 14, 2018 at 7:05 pm #

    Thanks, as ever a really interesting and useful article. Could you explain the point about the +vat being illegal?( Have 2 properties and am sure the estate agent does this) `typical high street agent will charge you up to 15% + vat (and they shouldn’t even be quoting + vat, it’s illegal) per month to “manage” a property`

  2. Mark January 13, 2018 at 1:15 pm #

    I couldn’t agree more. There is only so much I care to read about bad landlords, market dips, buy to let tax etc etc.. let’s hear some good news for a change!

  3. Michael January 13, 2018 at 12:08 pm #

    Personally none of the recent changes have made me feel any different about my portfolio. I still intend to grow my portfolio and take early retirement. Without the portfolio, I would certainly be married to the grind for the foreseeable. I guess ultimately it depends what your portfolio means to you and how it affects your life.

    • Jonathan Daines January 13, 2018 at 12:56 pm #

      Thanks Michael. Good to hear your perspective as a portfolio landlord.

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