Podcast Summary
Learning from Setbacks and Seizing Opportunities: Despite experiencing setbacks, hosts encourage learning and taking advantage of networking opportunities like meetups and industry events. London house prices continue to rise, but more affordable options exist in other cities.
Despite the hosts, Rob and Rob, experiencing their own setbacks in 2016, they encourage listeners to learn from their mistakes and take advantage of opportunities like meetups and industry events. The hosts recently attended successful meetups in Rayleigh and St. Albans, and they praised the knowledgeable meetup leaders and the networking opportunities. Additionally, they held a successful open day for RMP and Yellowlettings, which featured expert panels and charitable contributions. In news, London house prices continue to soar, with the average cost being 14 times the average earnings, while other cities like Leeds and Glasgow offer more affordable housing. This trend suggests that growth outside the southeast may be stronger in the coming years. Overall, the hosts emphasize the importance of learning from setbacks, networking, and staying informed about market trends.
Lesson learned from a costly eviction process: Thorough tenant referencing is crucial to prevent costly and time-consuming consequences, even if it seems inconvenient or time-consuming.
Taking shortcuts in property management, particularly when it comes to thorough tenant referencing, can lead to costly and time-consuming consequences. This was a lesson learned the hard way during an eviction process, which was the first for the speaker after over a decade of letting property. Despite acknowledging the importance of referencing, the speaker admitted to being naive in this instance due to the tenant's willingness to pay six months' rent upfront. However, the speaker discovered that the tenant was self-employed and unable to provide adequate proof of income, leading to the need for eviction. The experience served as a reminder to always prioritize thorough tenant referencing, even when it may seem inconvenient or time-consuming. The company's research on property market trends also highlighted the potential for slower growth in expensive cities like London, Oxford, and Cambridge, while regional cities may offer more affordable options with greater upside potential.
Landlords: Don't Overlook Potential Red Flags: Thorough background checks and due diligence are crucial for landlords to prevent uncooperative tenants and manage unexpected situations. Even in the worst-case scenario, professionals can help navigate the eviction process and minimize impact on time and income.
Landlords should be cautious when renting out properties, even if tenants can provide upfront rent for several months. Blinded by the convenience and the money, the landlord in question overlooked potential red flags and ended up dealing with an uncooperative tenant who eventually disappeared without notice, leaving the property vacant. The lesson learned is the importance of thorough background checks and due diligence, as well as having professionals help navigate the eviction process. Even in the worst-case scenario, the situation can be managed, and the impact on the landlord's time and income may not be as significant as anticipated. Another important takeaway is that landlords may encounter unexpected issues, but it's crucial to examine each situation carefully to determine what actions could have been taken to prevent similar problems in the future. Additionally, the landlord shared an experience where tenants disappeared without notice, leaving for their home country, which emphasizes the importance of conducting proper background checks and referencing tenants before renting out a property.
Unexpected challenges as a landlord: Encountering unexpected tenant issues can be costly, but showing patience and assessing tenants' track records can lead to positive outcomes.
Being a landlord comes with its fair share of unexpected challenges. In this case, the speaker took on a property with tenants already living there, and unfortunately, they had to leave abruptly due to job loss, potentially related to Brexit. The tenants left the property in less than ideal condition, causing the speaker to miss out on rent and spend money on repairs. Despite the initial setback, the situation eventually turned around with the arrival of a new, reliable tenant and a slight rent increase. Looking back, the speaker acknowledges that while he could have pursued rent guarantee or eviction, he chose to assess the tenants' track record and give them the benefit of the doubt, which paid off in the long run. Ultimately, being a landlord requires patience, flexibility, and the ability to navigate unexpected situations.
Lessons from challenging tenants and property issues: Despite unexpected tenant departures and property issues, thorough due diligence and proactive management can lead to stronger tenants and increased rent. Annual refurb plans can help spread out property costs.
Even if you encounter bad tenants or face multiple issues with a property, it doesn't necessarily mean the investment is a failure. The speaker learned this lesson when he had tenants who left after two years due to circumstances, and later faced numerous property issues. Despite the challenges, he emphasized the importance of thorough due diligence and noted that the tenants' departure led to a stronger tenant and more rent. On the other hand, property issues can be unavoidable, and the speaker shared his regret for not having an annual refurb plan to spread out costs. Overall, dealing with tenants and property issues requires proactive management and a long-term perspective.
Dealing with unexpected maintenance costs in older rental properties: Regular maintenance and proactive measures can help minimize unexpected costs in older rental properties. Consider replacing old appliances, having an emergency repairs policy, and building financial reserves.
Property maintenance can be costly, especially for older properties with outdated systems. The speaker shared an experience of dealing with multiple issues in their rental portfolio, including faulty boilers and leaks. They acknowledged that some of these issues were due to bad luck, but others were likely due to the age of the properties. The speaker suggested that proactive measures, such as replacing old appliances before they fail and considering an emergency repairs policy, could help mitigate unexpected costs. They also noted that while building insurance may cover some damages, like leaks in flats, other expenses, like boiler repairs, may not be covered and could result in higher costs for older properties. The speaker emphasized the importance of having financial reserves to cover unexpected maintenance expenses. Overall, the discussion underscores the importance of regular maintenance and proactive measures to minimize costs and ensure the longevity of rental properties.
The importance of a proactive letting agent: Finding a reliable letting agent through networking and referrals can save time and money by effectively managing rental property issues.
The quality of your letting agent can significantly impact the management of your rental property. The speaker learned this the hard way when a leak in one of his older properties led to extensive damage and the need for a new kitchen. Despite having a fully managed property, he ended up handling the situation himself due to his agent's lack of initiative in providing solutions. This experience emphasized the importance of having a proactive and competent letting agent who can effectively manage issues and minimize both time and financial costs for the property owner. Networking and asking for referrals at local property meetups can help in finding a reliable letting agent. Additionally, having an assistant to handle agent communications can also be beneficial in managing your properties more efficiently.
Embrace the challenges of property investment: Property investment involves setbacks, but maintaining a long-term perspective and staying calm will help you overcome them and achieve success.
Property investment involves challenges and setbacks, but it's important to keep a long-term perspective. The people and companies you work with will have ups and downs, and things will go wrong at times. However, these issues are often insignificant in the grand scheme of things and should be viewed as part of the learning process. It's essential to stay calm and not let small problems disrupt your overall strategy. Remember that property investment is a long-term game, and the upsides, such as capital growth and regular income, come with the occasional downsides. If you can accept this and maintain a positive attitude, you'll be more likely to succeed in the long run. As the speakers in the discussion emphasized, they've experienced their fair share of challenges, but they've also enjoyed many successes and continue to grow their portfolios. So, in summary, be prepared for the challenges that come with property investment, but don't let them deter you from your long-term goals.
Join the property investing community and share experiences: Listeners encouraged to join forum, share stories and leave iTunes reviews for support. Recommended podcast players for better listening experiences: Overcast for iPhone and Downcast for Android.
Sharing experiences and learning from each other is an essential part of the property investing community. Rob and Rob encouraged listeners to join their forum and share their war stories, lessons learned, and frustrations. In return, they invited listeners to leave iTunes reviews to help lift their spirits when things go wrong. As a resource of the week, they recommended the Overcast podcast player for iPhone users, which is better than iTunes for speeding up episodes. For Android users like Rob, Downcast is a preferred choice. Both apps offer better podcast listening experiences once a listener has discovered their favorite shows. Don't forget to subscribe to the Property Podcast on your preferred podcast app to stay updated with new episodes every week.
Experimenting with live deals assessments on our property podcast: Listeners enjoy the live deals assessments on our property podcast and appreciate the convenience and control of the audio format. We'll continue providing valuable content and doing live assessments weekly.
Listening to podcasts, like our property podcast, offers more control and convenience, ensuring you never miss an episode. Last week, we experimented with assessing deals live on air, and the response was overwhelmingly positive. Your feedback, through various channels, confirmed that the audio format was engaging and enjoyable. As a token of appreciation, we'll be doing another live deals assessment episode next week. Don't forget to subscribe to our podcast to stay updated on all our episodes, including Ask Rob and Rob on Tuesdays. We're grateful for your support and look forward to providing you with more valuable content. Until then, have a great week! For show notes, past episodes, and to leave a review, visit thepropertyhub.net/podcast.
