• Welcome to DOSBODS

     

    DOSBODS is free of any advertising.

    Ads are annoying, and - increasingly - advertising companies limit free speech online. DOSBODS Forums are completely free to use. Please create a free account to be able to access all the features of the DOSBODS community. It only takes 20 seconds!

     

sancho panza

A quarter of landlords look to cut letting agents to reduce property running costs

Recommended Posts

My heart bleeds.

 

https://www.propertyindustryeye.com/a-quarter-of-landlords-look-to-cut-lettings-agents-to-reduce-property-running-costs/

 

A quarter of landlords would look to cut out letting agents to reduce the ever-rising taxes and running costs of their buy-to-let portfolio, new research claims.

A survey by Kent Reliance found that the average landlord now spends £3,571 per property on annual running costs, before tax or mortgage interest.

Landlords spent most on property maintenance at £1,086, followed by letting agents’ fees at £935.

Landlords said they would review all their costs, with some hoping to achieve savings of 30%.

The report warns that lettings charges could increase further once the tenant fee ban is introduced in June, adding that this may result in landlords either shopping around or self-managing.

It says: “Rather than see revenues fall, many letting agents may pass the costs on to landlords, who in turn will seek to recover their higher outlay from tenants in the form of higher rents where demand allows.

“It’s unlikely to make renting more affordable, simply turning an upfront cost into a higher ongoing monthly cost for many tenants.”

Almost half (46%) of landlords said they would reduce the amount they spend on property upkeep and maintenance to manage their costs, while one in five said they planned to increase rents.

Cumulatively across the private rental sector, landlords contribute a total of £16.1bn to the British economy through their spending, supporting thousands of jobs from builders and tradesmen through to accountants and letting agents, according to the report.

Adrian Moloney, sales director of Kent Reliance parent company OneSavings Bank, said: “Policies that increase the cost and complexity of being a landlord don’t benefit tenants – quite the opposite.

“Property investors will seek to protect their business’s margins, whether cutting their spending on elements like property maintenance and improvement, or raising rents.

“The recent reforms are also deterring new investment, especially from amateur landlords. This does little to tackle the housing market’s chronic undersupply of property.

“Further intervention could prove counterproductive with many landlords still coming to terms with change.

“A heavy-handed version of rent control that prevents them from absorbing rising costs, for instance, could prove to be a tipping point leading to a dwindling supply of rental homes. However, there is a real opportunity to align longer-term tenancies to fixed-term mortgage products.

“This would not only provide stability within the sector but provide a platform for the private rental sector and the government to work together to create a more positive outcome in the social housing debate.”

kentreliancecuts.jpg

Share this post


Link to post
Share on other sites

Kent Reiiance ..... not seen them mention on here before ...

KentBS - the LL friends.

Expensive - and a useless as letting agents are (and they've spread like locusts over the last 10 years) - IO BTL LL biggest cost is the debt.

Thats what they need to cut.

 

 

Share this post


Link to post
Share on other sites
Posted (edited)

Interesting topic - thanks for posting :)

Mixed feelings about this - when moving around the country working outside my area I would not have wanted to buy even if I could afford to - adding to landlords expenses means my rent will rise - landlords getting rid of an agent to self manage means I might be dealing with an incompetent "hobby" landlord (as opposed to an incompetent professional agent !).

Many smaller landlords are already selling up, the property market has slowed to record lows - bet now if prices will jump after Brexit or crash ( Bank of England has warned of up to 30% drop !). Supply & demand says rents will rise.

Landlord reasons include "Section 24" tax changes, increasing legislation (costing time & money) + risk of big fines, tighter BTL (buy-to-let) rules, additional 3% SDLT (Stamp duty) if they want to buy a property. Related - the first IO (interest only) morgages are coming to the end of their term so many non-landlords are having to sell their homes and downsize = more homes for sale ... 

Question : what happens when you have empty houses not selling + people sleeping on the streets who can't afford to feed themselves :PissedOff: 

Edited by Andersen

Share this post


Link to post
Share on other sites
39 minutes ago, Andersen said:

Interesting topic - thanks for posting :)

Mixed feelings about this - when moving around the country working outside my area I would not have wanted to buy even if I could afford to - adding to landlords expenses means my rent will rise - landlords getting rid of an agent to self manage means I might be dealing with an incompetent "hobby" landlord (as opposed to an incompetent professional agent !).

Many smaller landlords are already selling up, the property market has slowed to record lows - bet now if prices will jump after Brexit or crash ( Bank of England has warned of up to 30% drop !). Supply & demand says rents will rise.

Landlord reasons include "Section 24" tax changes, increasing legislation (costing time & money) + risk of big fines, tighter BTL (buy-to-let) rules, additional 3% SDLT (Stamp duty) if they want to buy a property. Related - the first IO (interest only) morgages are coming to the end of their term so many non-landlords are having to sell their homes and downsize = more homes for sale ... 

Question : what happens when you have empty houses not selling + people sleeping on the streets who can't afford to feed themselves :PissedOff: 

No.

99% of letting agents add nothing more than expense to the process.

 

Share this post


Link to post
Share on other sites
25 minutes ago, spygirl 🏆 said:

99% of letting agents add nothing more than expense to the process.

I agree with the sentiment but nothing more. Staying legal as a landlord needs commitment (keeping up with new legislation, licensing schemes, etc), many"Hobby" landlords are renting out a spare property (inherited, after moving in with Bf/Gf etc) and have other priorities in life. It's getting more difficult as time goes on for small landlords to stay legal - hence estate agents provide an essential service (me defending estate agents = a situation I never thought would happen !  O.o )

Share this post


Link to post
Share on other sites
13 minutes ago, Andersen said:

I agree with the sentiment but nothing more. Staying legal as a landlord needs commitment (keeping up with new legislation, licensing schemes, etc), many"Hobby" landlords are renting out a spare property (inherited, after moving in with Bf/Gf etc) and have other priorities in life. It's getting more difficult as time goes on for small landlords to stay legal - hence estate agents provide an essential service (me defending estate agents = a situation I never thought would happen !  O.o )

1 gas safety certificate a year,1x deposit in safe keeping.It's hardly rocket science.

 

Asking rents and rents paid are two very separate things.I've heard this whole 'rents will rise' thing and for retns to rise meaningfully several things need to happen,not least some commensurate uptick in real wages.That's jsut not happening.

Share this post


Link to post
Share on other sites
11 hours ago, Andersen said:

Question : what happens when you have empty houses not selling + people sleeping on the streets who can't afford to feed themselves :PissedOff: 

Presumably those people would be bankrupt landlords who didn't cash out early enough.  Don't know what would happen. A cold winter, I hope.

Share this post


Link to post
Share on other sites
Posted (edited)

 

13 hours ago, sancho panza said:

Almost half (46%) of landlords said they would reduce the amount they spend on property upkeep and maintenance to manage their costs, while one in five said they planned to increase rents.

Cumulatively across the private rental sector, landlords contribute a total of £16.1bn to the British economy through their spending, supporting thousands of jobs from builders and tradesmen through to accountants and letting agents, according to the report.

Reading that just makes me really angry, although, unlike some landlords', my blood boils only figuratively. 

Most spend as little as they can on upkeep, which is exactly the reason why shelter should not be a profitable monopoly!  Those 46% are either really bad at their chosen business, since they decided to spend money inefficiently, on the maintenance which they apparently didn't have to do, since they think they are able to cut those costs now.  Or they are lying? I know the answer to that one.

Also, since they do cut costs, the contribution to the economy is tiny compared to what it would be if the same houses were owner occupied. 

At least keeping everything until and after it falls apart is good for the environment in some ways, I'd give the scumbags credit for that.  

Edited by Bear Hug

Share this post


Link to post
Share on other sites
2 minutes ago, Long time lurking said:

A bit off topic and it`s just anecdotal ,but i have never seen so many places for sale by auction with sitting tenants ,to me this has to be a sign of desperation ,the pips are really beginning to squeak now

Houses, flats. Empty. For sale and To let boards up.

 

Share this post


Link to post
Share on other sites
Posted (edited)
5 hours ago, Long time lurking said:

A bit off topic and it`s just anecdotal ,but i have never seen so many places for sale by auction with sitting tenants ,to me this has to be a sign of desperation ,the pips are really beginning to squeak now

Lots of empty shop units, often for sale, in one local town that relied on tourists and/or conspicuous consumption.  The blood is being drained from the peripheries.

Edited by Harley

Share this post


Link to post
Share on other sites
1 hour ago, Harley said:

Lots of empty shop units, often for sale, in one local town that relied on tourists and/or conspicuous consumption.  The blood is being drained from the peripheries.

Watch the ratio of to let and to let/for sale and outright for sale. A shift to the latter will show that the commercial sector know that the game is up and the pips are squeaking. IN many ways town centre shopping centres may be the worst to hold - peripheral single unit shops are a more viable conversion compared to units buried deep in a retail only location where it just wouldn't work. 

Share this post


Link to post
Share on other sites
6 hours ago, onlyme said:

Watch the ratio of to let and to let/for sale and outright for sale. A shift to the latter will show that the commercial sector know that the game is up and the pips are squeaking. IN many ways town centre shopping centres may be the worst to hold - peripheral single unit shops are a more viable conversion compared to units buried deep in a retail only location where it just wouldn't work. 

For anyone,company or individual,that's carrying leveraged CRE into this mess,it's going to get toguh quickly.Was in Leicester market this morning for Junior Panzas soft commodity lessons and the walk in is coffee shops,taek aways,empty shops,pound shops and cahrity shops(on the main High St opposite M&S).

 

13 hours ago, Long time lurking said:

A bit off topic and it`s just anecdotal ,but i have never seen so many places for sale by auction with sitting tenants ,to me this has to be a sign of desperation ,the pips are really beginning to squeak now

Know a few leveraged LL's and S24 is really beginning to bite.

8 hours ago, Harley said:

Lots of empty shop units, often for sale, in one local town that relied on tourists and/or conspicuous consumption.  The blood is being drained from the peripheries.

Very apt turn of phrase if I may say.Really sums up what's happened in Leicester as the outlying shops go empty first.

Share this post


Link to post
Share on other sites
13 hours ago, Harley said:

Lots of empty shop units, often for sale, in one local town that relied on tourists and/or conspicuous consumption.  The blood is being drained from the peripheries.

I went to Bmouth te otehr week - trip down with brother takign his mate back down.

Stopped off for a look around.

Fuck, the areas is not far off Stoke.

Went up Old Chjrch  Rd for food. Most of shops are empty.

MnS gone from 'centre.

Have all the OAP died? Did all the homeless scum kill them.' I was very tempted to go and lay out some alci tramps fuckcing and cunting by the brdhouse, whilst there were some famileis around. its was 3pm.

 

 

Share this post


Link to post
Share on other sites
On 08/03/2019 at 12:32, Andersen said:

adding to landlords expenses means my rent will rise

 

No it does not, rent levels are set by what renters (collectively) can afford not the cost of the service provision. If costs were a factor in rents then prices would differ wildly between landlords who owned outright and those with mortgages.

Share this post


Link to post
Share on other sites
1 hour ago, spygirl 🏆 said:

I went to Bmouth te otehr week - trip down with brother takign his mate back down.

Stopped off for a look around.

Fuck, the areas is not far off Stoke.

Went up Old Chjrch  Rd for food. Most of shops are empty.

MnS gone from 'centre.

Have all the OAP died? Did all the homeless scum kill them.' I was very tempted to go and lay out some alci tramps fuckcing and cunting by the brdhouse, whilst there were some famileis around. its was 3pm.

 

 

Bmouth always was a shit hole, but i agree its worse now than ever.

I went down last year, the Ringwood ale pub is still in Westbourne, best thing about the place.

Share this post


Link to post
Share on other sites

Bournemouth was overun with scum 8 years ago when I lived down there.

A certain local slumlord who was always quite useful for me thus remains unmentioned cooked up deals with councils and social services in some real shitholes to have their hopeless cases parachuted into his Housing Benefit farms. As a business model it's worked a treat but Boscombe Crescent was as rough as anywhere outside London back then, by now I'd assume the whole town is crawling with nation's unwanted. It used to be Lansdowne roundabout and the jobcentre area were the only really shit central Bournemouth area, UV lights in KFC toilets, great stuff. 

Share this post


Link to post
Share on other sites

One in five will raise their rentals whilst the other four fiths won't...looks like one in five will have long voids and will eventually have to sell at a loss then! :-)

Share this post


Link to post
Share on other sites
On 08/03/2019 at 12:32, Andersen said:

Supply & demand says rents will rise.

So supply will drop as landlords sell properties and you think demand will increase accordingly... so who is buying the homes from the landlords?

Share this post


Link to post
Share on other sites
Posted (edited)

 

I saw a homeless scumbag sleeping on my street the other night, our house immediately gained 24% in price.

 

supply and demand innit bruv

 

Edited by Wig

Share this post


Link to post
Share on other sites
11 minutes ago, Wig said:

 

I saw a homeless scumbag sleeping on my street the other night, our house immediately gained 24% in price.

 

supply and demand innit bruv

 

You do make me laugh Wig...and who said `sarcasm was the lowest form of wit`...in my eyes it's the most superior! :-)

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Recently Browsing   0 members

    No registered users viewing this page.