Tenants, Love them or Not They are Key in Deal Packaging

Tenants are a key part of any deal packaging proposal and David shares some great tips about how the property market is changing. Rents have been stuck for a significant amount of time but now they are on the rise and as a deal packager you need to understand the impact of Section 24, why there are fewer rental properties available and why it’s vital you have up to date rental figures for your area to make sure you are presenting the best opportunities to investors.   KEY TAKEAWAYS Being a buy to let landlord is a business Incrementally section 24 has meant you can subtract less and less mortgage interest The presentation can make a difference to the level of rent and the ceiling level for rent is not determined by the street. The buy to let market has contracted since 2016 but with government incentives, the property market as a whole has continued to grow On average in the last year rents have risen by 6% There are fewer rental homes available which has impacted rents The long term impact of there being fewer rental properties is now being felt by tenants Tenants going into the property market looking to rent have approximately 50% of the choice they had two years ago A contraction in the market and fewer rental opportunities mean that tenants are seeing rising rents Make sure you have the up to date rental figures for your area   BEST MOMENTS ‘Section 24 has started a metaphorical fire in the rental market’ ‘Make sure you know the market rent and don’t be afraid to put it up’   VALUABLE RESOURCES  Property Sourcing Profits Podcast https://www.progressiveproperty.co.uk/ https://unlimited-success.co.uk/ https://www.facebook.com/groups/progressivepropertycommunity/ Property Investors podcast   ABOUT THE HOST David is a property expert with over 25 years’ experience and his own portfolio of 26 units. His current rent roll is in excess of £10k per month. He is also a partner in a Deal Sourcing and Packaging business in the North West of England and has sourced over 250 properties for investors since 2004. In recent years he has, by necessity, had to develop an expertise in LHA strategies. This area is increasingly becoming a niche for him, and he enjoys empowering other landlords by sharing the knowledge he has gained. The ultimate purpose when sourcing properties in this sector for investors is to minimise risk while maximising profit. He has had to find answers to the challenges of Tenant Find, Management, ensuring rents are paid and the transition to Universal Credit. These are strategies he uses in his own business and also on behalf of investors. His investor clients regularly achieve annual gross yields of over 20% with high occupancy rates and voids resolved, sometimes within hours.   CONTACT METHOD https://www.linkedin.com/in/david-siegler-7b126316/ https://www.facebook.com/DavidSieglerInvestments/