OpenRent Community

Are any landlords leaving or planning to leave the industry?

As the tax changes bite and the constantly changing regulations drag us into becoming accidental criminals.Is there anyone on here that’s had enough and ready to quit?
Or worse, wants to quit but can’t get out!

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I wont buy any more residential unless its for my chidren. I have already put my money into comercial units as its far less hassle. and decent money

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I bought 3 flats 12 years ago. I was losing money on them for the first several years because of interest rates and using a managing agent. Lower interest rates and using Openrent has enabled me to stay in the game. We are now making a useful profit which supplements our pensions. Having said that, we are now in our late sixties and it would be nice to retire ‘properly’ and not have flats to look after. I thought we would have been able to sell by now for a good profit, but they’ve only increased in value by about 25%, so I’m hanging in to see if they go up to the point where there will be a decent profit after selling costs and capital gains tax.

what kind of commercial are you doing and how’s it all work as i want in and out of private renting now Colin?
I look for commercial property freehold on rightmove yet it always seems like millions of pounds for anything?

I want out and im ready for the exit door

Andrew8 I have bought shops with either office or flats above . My last buy was a 4500 ft sq warehouse on a small housing estate. I constantly look on the net at all sorts. so you get to know whats what. I must admit I was very fortunate with the last one As I just happened to go past before the auction , saw a lady struggling with the shutter, stopped to help, she showed me around, I said this is worth more than the guide of x I will offer xx. I then dropped her off a t the agent ,one hour later it was agreed. One month later paid for. Just in the right place at the right time. She even refused a higher offer! (that has happened to me3 times in 20 years)

I’ve decided to start reducing my properties as starting to get fed up of the scales always balancing against us and its all for the tenants now

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Completely agree with you Rob. While I would like to get out, we’ve just bought another flat! Interest rates are punk, so where else to invest? That’s the crux of it.

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stopped buying when osborne added 3% stamp duty, started selling when they stated they would remove section 21. successive govts have pulled the arse out of private rental. no taper relief on sale price, so many many rules had enough why work just to pay tax

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We only have one flat, but will probably sell it when the present tenants leave. We are in our early 70s and bought it as a supplement to income and won’t get such a return on anything else, but I think in a few years time, we won’t want the bother. It has increased in value in the time we have had it.

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Yes definitely as soon as I can sell!

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I can see it going back to the 70’s when there were no rentals available, or you had to pay a steep amount of “key money”, which in London was thousands of pounds, to get through the door.

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Would key money be regarded as a fee nowdays which is illegal now ?

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I bought 3 houses last year and planning to buy a minimum of another 3 ( I’ll try more than that) this year.
Despite all the rubbish, I manage to make a nice profit.
Properties is my business and passion.

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Yes, feel I am part of the drift out. Partly personal circumstances, but the worry is overtaking the enjoyment.

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Hi Dimitar, do you have your properties held within a company?

Hi Jim, yes.

All new purchases are held that way.

I would do the same if I was still resident in UK, as I’m tired of the constant hassle of residential tenants and new costly regulations.
A minimum 3+ year FIR commercial lease would be far less hassle. Having said that it’s OK at the moment as I have a decent letting agent, with a reasonable record of decent tenants. Other than a few emails and the free flow of money for repairs etc, I have little to do with it, and the nett income is still substantial enough to keep me happily retired in the tropics.

Until the world economy improves I cannot see an alternative with a better ROI. If / when the economy improves I would consider selling up and investing in my planned overseas developments, if I’m still around then :slight_smile:

I would offer one piece of advice, from my experience, those of you who are more interested in long term investment as opposed to income, should concentrate on single family residences as oppose to multi unit buildings. Tenants tend to stay longer and there are less neighbour issues, no communal spaces and fire alarms to tend to, and they are far easier to sell on when the time suits you, in the right areas of course. Or better still, as Colin does, concentrate on commercial property, but do your homework and research very thoroughly.

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Yes, started selling after 25 years as everything is against us. Would have liked to continue but we get robbed by tenants not paying rent all the time, have properties thrashed & now they are not only taxong us to the hilt but also trying to criminalise us for providing a good service.

Definitely not worth it and I also advise anyone thinking of becoming a landlord not to take the plunge.

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Absolutely am, Jim.
Had enough of it. Being a UK landlord is now, for me at least, a totally joyless experience.
In the process of selling my very last one.
Not even renting my place in Spain anymore due to being royally rogered by both management and, last year, just too high a proportion of the guests.
Fed up of essentially having to trust people who then are in an ideal position to abuse the privilege. And they do with some propensity.
I feel so sorry for myself I could eat my own socks!
But seriously, yes… going after two decades in the industry, that’s why and… can’t wait to be rid of all the dross of it.
I now am enjoying the capital.
Because I’m worth it!!

Peter
Member NLA

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