damar
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Dec 27, 2016 7:50:12 GMT
Post by damar on Dec 27, 2016 7:50:12 GMT
Hi,
This property has been empty since purchase, what generally happens with this scenario? do we keep advertising until the term ends, look to sell ?
Any ideas
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pom
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Dec 27, 2016 19:13:51 GMT
Post by pom on Dec 27, 2016 19:13:51 GMT
Not sure offhand how old that one is but it happens sometimes - that's why it's important to be diversified - I had one property that was tenanted when purchased but then ended up vacant for a year, but have had others that have been consistently rented out from day1
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ben
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Dec 27, 2016 21:27:54 GMT
Post by ben on Dec 27, 2016 21:27:54 GMT
As far as aware they just hold them but see no reason why they can not have a vote and see what people want to do if has had no tenants for a long period of time.
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damar
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Jan 2, 2017 7:20:47 GMT
Post by damar on Jan 2, 2017 7:20:47 GMT
The reason I ask, is because in one of the areas where I rent out property the local council charge a 50% premium on the council tax for empty properties, when a property is empty for any length of time, it takes a very long time to claw that money back with the rental income.
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kaya
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Post by kaya on Jan 2, 2017 14:57:27 GMT
Interesting that you like both the hands-on and hands-off approach. This is a 3 year deal that propertymoose have offered, so investors arguably have to be prepared to stick it out, or else sell up if they do not like the way it is going (and obviously many do, on several properties, and sometimes at a loss). Having said that, with several HMO deals struggling with occupancy, perhaps annual reviews (and thus votes) are required on 'non-performing' properties (say, less than 50% rental yield after 1 year being available to rent). A further concern is the limited market for such properties - they could take a long time to sell, especially at a profit, so early marketing might well be preferable. |
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damar
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Jan 3, 2017 8:07:03 GMT
Post by damar on Jan 3, 2017 8:07:03 GMT
The reason for hands off, is I recently started my own company, so I am unable to get a good BTL mortgage deal until I had two years worth of accounts, So I dipped my toe into the crowd funding scene.
The property I had, where this was an issue, I dropped the rent, as paying the mortgage and 150% council tax, plus minimal utilities, was not ideal, and a reduction of £30 (6%) in the rent, seemed a better option.
It may well be that councils implement this to keep the rents low in that area, I would always advocate lowering the rent, and receiving a return, than holding out and paying out.
In my case, the outgoings, were £260 a month (council tax and mortgage) so it would of taken nine months of the original rent, to cover just one month of void.
After dropping the rent the property rented, within two weeks, and the loss turned into a profit.
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adrianc
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Jan 3, 2017 8:28:29 GMT
Post by adrianc on Jan 3, 2017 8:28:29 GMT
It may well be that councils implement this to keep the rents low in that area No, they implement it to reduce the number of empty properties.
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