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Over the past five years, landlords have been hammered by increasing regulation that squeezes margins and brings more and more red tape into the private rented sector.The Government has said that this is to "professionalise" the sector and ensure that landlords treat their property holdings like a business.Whilst that is a very laudable goal, it seems there is little point in adding new regulation if existing legislation is not being enforced and each new piece of red tape seems to end up having the opposite effect to that intended.Investment commentator, Graham Rowan, describes this as "landlord death by 26 cuts".
Here is a screenshot of Graham's original list:If you want to start adding your landlord voice, a reminder that Property Tribes is partnered with the Residential Landlords Association and PT members can claim a 25% discount off membership.What has impacted most on you and your business over the past 5 years and do you see anything optimistic about being a landlord at the moment?SEE ALSO - Section 21 - curated threads, news, & videosUP NEXT - Councils failing tenants and good landlordsDON'T MISS - Number of private landlords in declineNOW WATCH:
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
I have the greatest respect for both Vanessa's and Graham's knowledge and experience but I found myself shaking my head throughout the entire interview. I completely agree that the changes can be devastating to some landlords, but this does not represent all private landlords.
Being emotive, I could conclude that as I haven't chosen either the option to get out or get militant, I must therefore be in the third category of criminal, which is clearly not the case.
A large proportion of private landlords are getting a hard time at the moment, but its not all private landlords and its incorrect to make that association. What's happening is not fair, but its happening.
Instead of get out or get militant, how about get educated and get creative?
Third category of criminal? Not sure what you mean by that.By getting militant, we said join a landlord association. Getting educated could be a by-product of that. Perhaps "get engaged or get out" would be more appropriate?
At 6:56 "... rogue landlords, let's call them criminal because that's what they are..."
I'm not confident that the RLA, NLA, etc. will influence any significant change, but I respect them as organisations. There is now another organisation, claiming to be a militant landlord association, for whom I have no respect whatsoever.
Get engaged or get out sounds a lot more positive
As I see it, the issue with rogue vs criminal, is that the former is ill-defined and used for generic smear campaigns on all landlords, by groups such as Shelter and Gen Rent plus many commentators, whilst "criminal" has the benefit of being at least definable. Often "minority of rogue landlords" turns into "landlords" a couple of paras later, whilst never acknowledging eg that Tenant Satisfaction in the PRS routinely runs at about 85-90% (EHS).
"Rogue" has even made it into the Government's official Guidance for the Tenant Fees Act. I'll leave aside that parts of the Guidance are self-contradictory gibberish.
I think the Landlord Associations are more impotent than militant.
Get out or get engaged isn't correct either.
I have no need to get out, I also have no need or desire to engage with the truly awful, embarrassing campaigning currently taking place.
It is very easy to see a lot of doom doom doom
And the changes are really going to hurt some landlords more than others
But what is Dyslexic Landlord seeing
I am starting to see opportunity
I know my personal BTL will see me through the rest of my life and quite a comfy one too I have hopefully my Private pensions to come in a few years and I can now see the end of the Tunnel with S24 due to some Landlord Shuffle ect
So why do I see opportunity The reason is my Company structure
The company works to build wealth and make a business more professional To build within the company has lower taxation than Personal BTL
Ie pay 45% Tax in your own name pay 19% Corporation Tax in a Company so it has huge advantages
It has a down side ie How do you extract the profits
I look upon my company as the mini market hopefully to be a Super Market in future
and you can have scale in a Supermarket and professionalise it too
We all have to die ?? and I believe a Company Strategy helps a lot with planning succession
I am happy to live of my personal BTL and I am more than happy to use my Company to build family wealth
Passing over to the next Generation of Dyslexics has to be considered
If you have been a landlord for the past 15 20 25 years you should be sitting in a good position as I am
so why not plan for something larger if it turns you on
Graham talks a lot of sense But he is missing the point Houses will always been needed and if we can provide good homes for our customers and make a few bob its still worth doing
so its Business as Usual for me If I find the right deals to do and the right yield
I am more interested in selling the baked beans every day than being concerned with the Capital Value of the Supermarket
and yes I will still use pensions for my wife and I and who knows for my Son and his children
and who knows I might just get the Bentley and the Aston
They have done it so why not Me Too?
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
Have you done any sensitivity analysis as to what happens to your company model if, for example, Corporation Tax goes to say 26% or 30%?
Given that the CGT rate for rental property is higher than usual, I see no reason why they wouldn't do that for Company owned assets wrt to the normal small business CT rate.
Yes I have factored in a Higher rate of CT
its still better then a 45% personal Tax rate in personal BTL
I find this article very interesting. It makes me challenge some of the dilemmas I have in my mind around this topic. Quite a few of the things that are being introduced are quite fair, because it helps towards the professionalisation of the industry. However what I do disagree with is the approach the government has taken in terms of introducing these measures at the cost of the landlord.
For example why charge extra CGT compared to any other product of a similar type in the country or the removal of mortgage interest as a cost. For any other industry, a interest on a loan is a cost to the business.
I personally think the government should introduce a more voluntary scheme to have landlords have their properties registered on a government databse. This would generate a unique ID for a property & then have a rule that you are not legally allowed to advertise your property without this ID. This service could be completely free. What this however do is bring some of the rogue landlords out of the woodwork as they might not be able to advertise their rooms on these online sites without the government being aware of it. The good landlords wouldn't mind this becuase they are already open with the government when it comes to managing the business.
Its probably a sell what I'm suggesting here for everyone but I think the gov needs to find a cheaper and easier way to get the Good landlords on boards as the bad one continue to be off their radar irrespective of the policies they are introducing.
Disclaimer: I'm not a legal expert or an advisor on any subject. A mere landlord using open forum to share ideas and experiences.