Friday, Nov 27, 2015

In Richard Dyson's dream world, tenants prefer amateur landlords to companies

Torygraph: Annihilation of buy-to-let and the politics of envy

"But the most telling point is that there is no such vilification of corporate buy-to-let."
I'm like a broken record here but no one in their right mind would prefer to rent from an amateur instead of a professionally run company. And since UK renters get the worst value for money in the world, can this guy seriously be surprised that BTL is despised? If our bread cost more than anywhere in the world and was stale, people would not be pleased with the UK's bakers...

Posted by mombers @ 12:06 PM (5911 views)
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7 Comments

1. letthemfall said...

Depends on the amateur surely. I've rented from amateurs in the past and have been fortunate to have good experiences. On the other hand there are small "professional" outfits who are nothing short of crooks. The rental market is full of venal incompetents, well represented on both sides.

Friday, November 27, 2015 01:41PM Report Comment
 

2. icarus said...

Is it envy or is it just Osborne going after soft targets (see previous post)? Maybe they're soft targets because they are seen as elbowing out FTBs? Anyway, trust the Torygraph to bang on about 'envy'.

Amateur/professional distinction is difficult as @1 and because some 'amateurs' have quite a few properties. A lot can depend on the estate agent, assuming one is used. EAs can vary regarding fees and bond required, taking responsibility for ensuring repairs are undertaken and demands on quitting tenants regarding 'leaving the property as you found it'. 'Amateurs' probably vary too according to whether they have a mortgage on the property vs having owned the property for some time.

Friday, November 27, 2015 03:46PM Report Comment
 

3. mombers said...

To me, a professional landlord ideally is a company that owns a whole block of flats and rents them all out. All sorts of economy of scale and risk pooling that you simply don't get in the mom and pop sector. No risk of having your home sold out from underneath you by a speculator, and a long term, professional outfit has a budget for maintenance so things get repaired as soon as they need to instead of you running the risk of someone's other bills taking precedence.
In my opinion, amateurs who own many properties are not really amateurs. Not sure why someone with 10 or even 5 properties wouldn't put them in a company and use the tax advantages (company car, home office, etc). But that does prevent you from using abusing principal primary residence relief on CGT I suppose.

Friday, November 27, 2015 04:44PM Report Comment
 

4. Pig said...

I guess if you're doing well, there's less opportunity for growing wise.
Can't help smiling at the premise of the article - but then its easy to love the folly of a child.

Friday, November 27, 2015 07:17PM Report Comment
 

5. taffee said...

Let's take a step back for a minute...btw was crushed in 2008/2009......'investors' since then have been totally lucky courtesy of hmg policies NOT astute in fact bearing in mind interest rates were likely to rise and help to buy was nowhere
To be seen.....bit like dotcom investors.....suddenly they were seen to be fools for not selling

Saturday, November 28, 2015 06:25AM Report Comment
 

6. tenyearstogetmymoneyback said...

Icarus

I have no complaints whatsoever about the lettings agency which I used for two rentals.
However, they had plenty to complain about with the amateur landlords they were dealing with.

In fact with the first one they decided they wanted nothing to do with him any longer which is why they suggested I moved to the second.
The main problem was his Granddaughter who had lived in the property before who had every bailiff in Dorset chasing her. Of course whenever they turned up at the door etc I just sent them to the lettings agency :-)

The second one was more business like and things went fine until he realised he could make more money by selling the bungalow (which was actually his Mothers) and buying two flats. To the lettings agencies credit they were happy to not take the keys back until the last day of the notice despite the fact that its buyers were moving out of their place two days earlier.

After two enforced moves in less than three years and with no sign of any HPC happening I decided to buy where I am now.
I think the agency was annoyed to be loosing a good tenant who always paid the rent on time (it was actually on standing order) etc.

Saturday, November 28, 2015 04:01PM Report Comment
 

7. icarus said...

10years - in my limited experience EAs do seem to vary along the lines I mentioned - and much of the variation in those terms seem to be down to the agent rather than to the landlord. I didn't offer any opinion about whether agents in general were helpful or not.

Sunday, November 29, 2015 11:12AM Report Comment
 

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