The voice of a landlord
I wanted to share with you the insights of a landlord that I know, I would love to hear your comments on his thoughts. He is a small landlord who got into property to boost his pension.
I’ve been steadily losing cash every year since I started a decade ago. This is because at the height of BTL purchasing we found, much too late, that properties were talked up way beyond their actual worth. Now we see a reduction in many areas towards the real values and that has cost us dear. I don’t mind admitting that my tax return to date shows a running loss of £152k. And I’m a pensioner and I have had to sell my home to pay bills.
And we don’t hear much mention of the burgeoning industry in this property game – Property Management Companies. They are waxing nice and fat off the backs of us. Some of them might not provide much in way of a service but they sure know how to issue an invoice. These rank amongst the current areas of greedy operations that are a huge burden on landlords, and particularly where we cannot alter the contractual arrangement tied up by legality and / or apathy by owners too tired or confused to attempt to break the stranglehold on their properties.
The result is misery for many thousands of landlords who have struggled to keep up payments out of rents that actually remain appreciably lower today than ten years ago. One reason is that many resident owners could not sell their own homes and so put them onto the rental market which thus became more competition for smaller landlords in particular, and provided a ‘tenants’ choice’ market forcing lower rents for landlords in order to fill their properties.
Yet the Government says little about that today. What we do hear about are the boom times in London and the S.E. and their perception of a property landlord making hay while the country suffers from lack of housing and so they are determined to make us all pay right across the country.
But the real truth is that, as a landlord, I take care after my three properties, I keep them in good condition with refurbs where required and am considerate to my tenants despite suffering with rents. I have no choice about that. Yet I feel under pressure from the Gov’t authorities to knuckle under increased rules that are not actually necessary and will cost me even more money. But why? If my occupiers are happy (one has been with me for six years) and I have no complaints, why must we suffer more pain and anguish?
I also think that – with all the reasons given here – I am a huge contributor to provide a decent society whose tenants have good homes at reasonable cost. The truth is that with my costs I am actually subsidising my tenants – rather than beating them into submission as some critics would have us believe.
I would like to know the views of any others to my views expressed here and if enough of us agree then we should put our views of the ‘small’ landlords before the Government before they become even more draconian.
Whilst bearing in mind, of course, that some members – at least – of the Government and MPs own properties as landlords themselves.
Furthermore, regarding mortgage companies and banks – mortgages on all my three flats were awarded relatively short BTL terms. Two for 10 years, one for just six years. That one caused me no end of trouble and stress – I did nothing wrong and missed no payments but was treated as though my subsequent problems simply did not matter, they just withdrew support and left me to stagger along on my own.
To conclude, after having drawn us all into toxic debt by their greed, banks are the only industry that – unlike most businesses – they too often fail to look after their own customers. They can afford to- even governments depend on them and they know it yet they continue to operate pretty much as they please.
We know that the treasury wants us to cough up more but by hitting small landlords they will force decent people into penury whilst allowing bigger companies to manage and thrive. This will be a huge mistake and lead to long term problems that will ultimately make many reliant on the state.
A very heart felt insight from a landlord what are your thoughts?