If I told you that, over the last 3 years, of the 150 properties that I have sourced, refurbished and now manage a large number for my landlords/investors, only 2 had had rental arrears or voids in this period. Most property investors would not believe it as many landlords have had serious financial issues and have either left or are leaving the Private Rented Sector (PRS).
Over the last few years, renters have been under serious financial pressure. In the first instance, the Covid 19 Pandemic was brutal. Many renters were furloughed thus had reduced income. Many lost their jobs or had no work, especially if they were on zero hours contracts. If you were self-employed there was almost nowhere to turn to! This led to massive rent arrears. When the Government then banned Section 21 Eviction, this led to a crisis for BTL landlords in the PRS. Many were not able to service their mortgages and many lost their properties. Many decided to sell up as it was the final straw.
For those landlords who struggled through and came out the other side, they were then hit with a double whammy; the cost of living crisis then hit, with renters forced into a similar situation with costs of utilities, food and basically, everything spiralling out of control. This has inevitably led to more rent arrears. This, together with further potential Government legislation on EPC upgrades (now shelved) and the potential Rental Reforms, banning Section 21s, is seeing PRS landlords leave the sector like never before.
It is quite remarkable then, that throughout this 3 year period, less than 2% of the properties that I have sourced and manage for my investors/landlords have had any arrears or voids. How is this possible?
Well, for several years I have worked with social housing providers, charities and Local Government and secured long-term contracts to provide quality housing for their vulnerable tenants. Some of their requirements are slightly different to the general PRS, but not that dissimilar. They then can sign up for 2, 3, 5 and even 10 year contracts. The rents are virtually underwritten by Local or Central Government, so your investment is much safer.
As the cost of living crisis and housing crisis continues to escalate, all of my social housing providers and charities are asking me to supply more and more houses and demand is growing exponentially.
More importantly, the yields are also very high, but with virtually no arrears or voids, profitability is far better than you could imagine.
Many of the charity tenants are the most vulnerable in society, so there is even the added ‘social conscience benefit’ of giving something back. Furthermore, if there is any tenant damage to the property, the Charity pays to put it right!
So, to summarise:
· Virtually no voids
· No rent arrears
· Long-term Government backed contracts/leases
· Any tenant damage is put right by the charity/SHP
· Much higher than average gross rental yields (8-14%)
· One stop shop ‘hands free’ investment as Locate Property can source, refurbish, find charity tenants, then manage and maintain your property for you.
So, don’t think that being a BTL Landlord is dead and buried. Contact me either through my website or on 0330 577 1660 or via email at david@locate-property.co.uk and I can talk you through how it all works, what the returns are and how you can make serious long-term income.
Take a look at this website and look at the short film at the bottom of the home page which explains what we do. Also look at the case studies and investor testimonials for further information.
Locate Property is completely compliant with all the relevant bases covered including:
· Members of the Property Redress Scheme (PRS)
· Locate Lettings arm is covered by Client Money Protection (CMP) which protects both the tenant’s and the landlord’s money
· Members of the Deposit Protection Service (DPS)
· Registered with HMRC for Anti Money Laundering Protection
· Registered with The ICO for privacy & data protection
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