Archive for the ‘Geordie Landlord’ Category

Geordie Landlord “And now for the ugly”

Thursday, November 10th, 2011

And now for the ugly

Geordie Landlord

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Where was I last time I wrote about the merits of being a Landlord?

Ah, I was sitting in the sun in France enjoying a bottle of Chateau Mouton-Rothschild 1982 pre-empted by a small beer and, for those who know me well, followed by a Baileys. What a combination! And let me also clarify for these of you who might have got the wrong impression – I wasn’t wearing a gold thong [Ed – was it actually pink then?].

However, today, back in the UK and some weeks on, I am sitting in my shorts and T-shirt wondering when to put the heating on as we approach Christmas. Of course, I will spend monies ensuing tenants are happy, but the heating in our own home won’t go on until the big day – 25th December 2011 (and only then for a couple of hours).

 

“This has cost me £2,500 so far in lost rent, £1,000 in legal costs (so far) and probably a sh*thole of a house when I eventually recover it…”

 

 

But onto the “ugly” parts of being a landlord inferred from the title of this piece.

Previously, I have gone through what I expect from a Letting Agent on a “good” basis and the good can quite easily become bad with disgruntled tenants, who can become enraged by poor communication and lack of action.

But I have also had the “ugly” – the “Letting Agent” who had worked for a reputable company and set up herself with promises of how she could run my portfolio in the North-East (see previous blog on “managing from a distance”), who took my money and appeared to be doing a job, but hadn’t done one Gas Safety Check in three years, although I had been charged for it.

I know that maybe I should have done more due diligence, but I trusted her and her (claimed) integrity. Unfortunately, nearly a year on from her being sacked, I still have the aftermath of her “managing” these properties with a Section 21 being issued to one of “her” tenants, subsequent Section 8 (followed by a court date a few weeks ago, which we won) and now Bailiffs are being instructed as the tenant has failed to return the keys. This has cost me £2,500 so far in lost rent, £1,000 in legal costs (so far) and probably a sh*thole of a house when I eventually recover it with even a basic refurbishment costing £3,500 to £7,000, maybe more…

 

“The other “ugly” I shall mention is a London Agent (who may still be active in the property world), who liquidated his registered company after getting my deposit returned it.”

 

The other “ugly” I shall mention is a London Agent (who may still be active in the property world), who liquidated his registered company after getting my deposit returned it. In my view, this is surely fraud, or maybe theft, but it’s certainly not above board! I am out of pocket by a few thousand pounds, which I am trying to recover in some format from the Liquidator. He knew what he was doing and I was left exposed.

So should I call the police? Would they be interested?  Apparently I came off lightly as he has stung others for a lot more.

To end on a positive, there are many good Letting Agents around who do an effective job, but my advice is to beware the thieves and  sharks who don’t know what they are doing and are in it for no-one but themselves because they also exist too.

About the author:

Geordielandlord originates from Newcastle but has lived in Windsor most of his life, stilling getting drawn back to the North East occasionally to eat proper food. He spent over 20 years in corporate life with serval blue chip companies and in the latter stages of corporate life, starting building a property portfolio as a hobby.  Management of portfolio is now a full time business, with the portfolio stemming from Windsor, through to London, Chesterfield and a number of streets in Middlesbrough. Once suited and booted, his normal attire now is in shorts and trainers (in most weathers) but he dons a suit occasionally for business meetings to offer advice on all aspects of business, or property. His own website can be found at www.coach4success.co.uk

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Geordie Landlord “Good agents, bad tenants and fine wine”

Thursday, September 15th, 2011

Good agents, bad tenants and fine wine

Let’s start this time with the “good”…

I am sitting writing this overlooking some sunflower fields “en France avec un vin rouge”, whilst on holiday.

Actually maybe the vin rouge isn’t specifically the “good”, as anyone who knows me will realise that more than one glass and I might as well write the rest of the day off. But the question I had to ask before I left for my holiday was “can I rely on my letting agents to manage for me, simply and effectively and without issue, keeping me advised as to what I need to know whilst I am away?”

“This means with a good letting agent I can go on holiday and not have to worry”

“Good” (to me), as business in its simplest form, is the right people and effective two way communication, backed by trust and integrity.

This means with a good letting agent I can go on holiday and not have to worry, although this morning I have had reports of a ceiling collapse in a house in Middlesbrough (apparently the ex-child living there urinated in the bedroom on the floor leading to a weakening of the wood). However, the problem has been identified, the matter is in hand and being sorted out with the minimum of fuss. Obviously it’s another cost to me, but it may be covered on the insurance.

Regulated letting agents (ARLA etc.) will advise that it is always best to let with a regulated agent. I would normally agree but I actually have an independent agent, a lady who lets a few of her own properties and manages some of mine as well – and she is great. My main agent is proactive on communication, with solutions to issues being promptly presented after investigating to see how serious it is. Bad agents, on the other hand, will hurriedly suggest repairs which might be over-costly and unnecessary. I once had washing machine problems where a total replacement was recommended by an agent, but on checking it was only the waste pipe that was blocked at a cost of only £20 to fix. Quite different to the £400 for a new machine!

An agent needs to know all the regulatory requirements and keep up to date. However, I do find that it comes to the worst problem tenants and there is an issue with eviction, then it always comes back to me. I have, through a solicitor, issued a Court Order yesterday for eviction as the tenant didn’t respond to a Section 8 (issued due to breaching the tenancy agreement, typically by non-payment of rent). The agent is working with me on this one and I hope will continue to support me in the future. I shall update in due course, but hopefully the eviction won’t involve the complication of barristers and so on.  

Sometimes I have been guilty of wanting to keep too close to what’s happening with my properties, not letting the agent do what they are paid to do. Personally, I need a realistic and commercially viable rent, minimal voids and communication on both good and bad, noting that as a landlord we often only get the “bad” with things like late rent payments, ceilings collapsing, evictions, a “banged up” tenant (as explained by his partner who advised me he is in prison).

“Could I manage my portfolio by myself, as has been suggested by some?”

So this is my general view of “good”, when it comes to agents. It isn’t rocket science – as I said it’s simply about good people and two way (proactive) communication.  I haven’t gone into too many specifics on “good”, as I shall do this in the future. I will first deal with the “bad and the ugly”, to follow.

Could I manage my portfolio by myself, as has been suggested by some?  I manage a few but with a portfolio that ranges from Windsor, to Heathrow, London, Chesterfield and into Middlesbrough, not forgetting overseas, it would be difficult.

Let’s hope that my current agents maintain the good relationship we currently enjoy and work with me to ensure that the properties are well managed commercially and with good tenants. Let’s hope they avoid, as one ex agent did, suggesting that I call up a tenant to ask why the rent was late because I “had a better relationship with them”. Fully managed? I think not…

Of course, these are just my personal views and I’m sure some will have different ones.

And with that it’s back to my wine. Unfortunately, I shall still be checking my Blackberry later today, but I hope that all remains in order so I can continue relaxing in the sun in my gold thong

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Geordie Landlord: The trials and tribulations of remote property management

Friday, July 29th, 2011

As someone born in Gateshead and having worked spent part of my early life on an Open Cast Mine (I had to get that in from the start) before moving to sunnier climates in the South I decided to “spread my risk” and invest out of the heartland that I know well, buying a portfolio of properties in Middlesbrough. Of course, my local Estate Agent in Windsor warned me against it, suggesting I continue to buy in the town-centre and within walking distance of the stations, shops, good pubs etc.

However, the infrastructure of the Middlesbrough area in 2005 was visibly improving with new roads, retail parks, health clubs etc. Run down, boarded up houses were being bought up by investors (and a few first time buyers). The economy looked strong and the signs were right for getting involved.

“The economy looked strong and the signs were right for getting involved.”

As usual, I bought and refurbished, refinanced and bought more, quickly owning a number of houses in several streets. This should have made things easier by spreading my risk. 

It didn’t.

In reality it has been a nightmare! Although I have managed to realign and put (generally) right, I have had over the years the (supposedly) experienced Letting Agent (who wanted to start on her own and set up with a  number of properties to manage) charge me for Gas Safety Certificates that have not been completed, carry out limited repairs meaning that the houses fall in to a worse state of repair with less viable tenants, put the “wrong” tenants in initially without any referencing and,  when I challenged for rents that hadn’t been paid, made many, many excuses including “six friends and family had died within a six week period, including the Gas Safety Engineer who couldn’t provide certification as he had died on Christmas Day”.

I have some good tenants, who have integrity and try to work with me (and a new Letting Agent you might not be surprised to hear) but many who claim benefits (which is not an issue at all if justifiable) simply don’t give a shit.  To that end I recently had a house refurbished after tenants moved out and the quote from the builder started with “remove excrement from the back yard” – it was also on the back door. Ironically, once refurbished, the (ex) tenants asked if they could move back in. You can probably guess what my response was! I have been to meet all current tenants in recent months but it is not a good idea to do this before 11am as the planned visits from 9am didn’t happen as no one was out of bed.

“…the quote from the builder started with “remove excrement from the back yard” – it was also on the back door.”

(I might share more thoughts on tenants in Middlesbrough in future, and tenants in general, as it isn’t just Middlesbrough where it can go wrong, or hopefully right). 

The message here is to be very careful when buying out of the area you know well. You have to place your trust in someone to remotely manage for you, with honestly and integrity, and hope to work with tenants on the basis that “it is my investment, but your home”.

A friend of mine a few months ago asked for some advice on driving back on the M1 from Halifax to Windsor. He said he was considering buying a few houses in Halifax as “they were cheap and the yields were good”. I asked who would manage them for him and he said “a friend of a friend”. I asked him if he trusted them. He considered this for a moment and said “no”.

“Consider carefully before “spreading your risk” in the wrong area and trying to manage from a distance.”

My advice to him was not to buy them. People/clients don’t like to be told not to buy anything. They like to have their, often uninformed ideas endorsed – without due diligence.

But be careful. Consider carefully before “spreading your risk” in the wrong area and trying to manage from a distance. Sometimes the devil you know really is better!

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