4 days ago
I'm an old-school landlord – the future of the rental market terrifies me
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It struck me today, as I was organising a batch of electrical certificates (rental properties must have electrics checked every five years), how all my tenants are the same ones I rented to when the contractor last visited five years ago.
In fact, for two thirds of the properties, they are the same tenants as when I received the previous certificate 10 years ago.
Electrical certificates were not made law until 2020 for new tenancies, and 2021 for existing, but I've been carrying out these checks for much longer than that. I may not have been required to by law, but seeing as, by law, I've been required to provide safe accommodation, it's something I've always done.
Something else that I've always done is use the same contractor for the same properties. It may not sound competitive, but I value customer service over saving a few pounds, and it's worked very well for me. Of the properties I manage myself (I operate a hybrid model whereby I self-manage some and have agents for others), I give the tenants the contractors' contact details and urge them – if faced with an issue – to contact the contractor directly.
In my 21 years of being a landlord not one tenant has ever abused this system.
Considering the trust I've built up over the years with my tenants, I was struck by how much trust has been eroded from the rental sector while reading about rental supply being at an all-time low.
With the exodus of what the Americans call 'mom and pop landlords' – the likes of most smaller-scale British private landlords – tenants are now being forced to stump up thousands of pounds for purpose-built shells from large corporates.
It makes me feel very old-school, and sad.
As a portfolio landlord, I know I'm in the top percentile in terms of the number of properties I own. But whether you have 100 or one, I think the reasons for providing accommodation to someone, in return for rent, doesn't really change: it makes you feel good.
I know that line of thinking flies in the face of many people's views of landlords, and successive government policies designed to destroy the sector, but bear with me: being a landlord is a good thing.
I enjoy helping people out. I like fixing problems – I was called by a tenant who's broken a tap while writing this! I adore my properties, and I love that people are able to build their lives and stay with me for many years. I enjoy that we can have a relationship, for want of a better word, and that when times get tough (I've had tenants die, divorce and get into debt), I can point people in the right direction.
But it's not just practical stuff. Tenants with private landlords can also benefit from the little nuggets of an area we get to know – which doctor's surgery is the best, the new bars that have opened, which streets are best avoided. The stuff no corporate call centre staff will ever grasp, no doubt because they've likely never visited the place, let alone have any knowledge of the ins and outs of the actual property.
Of course, I also know my tenants should probably buy their own place at some stage. But I think we can often lose sight of the fact that's not something that suits everyone, and renting a property is an option that should be made available to most people – should they want to.
What terrifies and angers me the most about where the rental market is heading is how expensive and corporate this whole sector is becoming. I remember a time when if you wanted to rent a hovel for a pittance, you could. It may not have been much, but at least it would have been a roof over your head in return for not much money.
Those days are gone. It shows the impact of regulations on improving the sector, which is a good thing – but at what cost have these changes come about? You see, every improvement has to be paid for in some way, and that, dear reader, only ever leads to higher rents.
Over the past few years, I have sold a lot of properties. It wasn't really that I wanted to, but the changed tax law on Section 24 and upcoming EPC changes meant I had to reevaluate my business. It's been a difficult time, but an enlightening one.
I had the choice – I still have the choice – to sell everything, but I don't.
Being a landlord is a right pain at times, but it's also a rewarding lifestyle and investment choice. This year I celebrate 21 years in the landlord business and honestly, I can't think of anything else I'd rather do with my life.
