News from the Residential Property Investor, the bi-monthly magazine for RLA members other artilces from the June / July 2001 issue RPI news archive

New landlords should look to the long term - June / July 2001

Inexperienced and potentially 'bad landlords' are being lured into the rented property market in the hope of a 'quick kill', the RLA has warned.

'The forum on our website is full of comments, questions and even some horror stories posted by people who have entered the marketplace without fully understanding the role of the landlord', commented RLA chairman Martin Moylan. 'A bad landlord, or one who does not fully understand his role, can make tenants' lives a misery and reflects on the sector as a whole'.

There is currently an opportunity for investors, but only for those who realise property is not a short term investment and that managing rented property involves cost and commitment. Currently properties that are unsuitable for letting are being bought, while 'novice' landlords are getting themselves into legal difficulties.

'Lenders are handing out money but not asking investors the right questions', said Moylan.

The RLA is advising would-be landlords to make London conveyancing firm EasyMove is claiming a record for 'the fastest ever private purchase'.

Sinan Dogan, a cash buyer, took possession of the Leyton house he was buying just five and a half hours after making an offer.

EasyMove puts the average time taken between acceptance of an offer and exchange of contracts at 62 days, with a further four weeks for completion.

Obtaining a formal mortgage offer would normally take at least five days. In this case there was no mortgage involved and the vendors had papers ready.

'I don't think we could do it this fast every time but there is often no need for things to drag on for months if all the parties work together', said EasyMove manager Michelle Hadjisimou. Easy does it sure they understand the requirements of the role before investing, to investigate their local rented markets and rental returns, and to consider to which type of tenant they wish to rent.

'We would urge caution to anyone who sees buy to let simply as a way of making a fast buck'.
 

other artilces from the June / July 2001 issue

• Asylum seeker threat
• Earnings link points to house price fall
• Dome Minister takes on housing
• New landlords should look to the long term
• Where tenant must act as tax agent
• 'Reasonable steps' absolve blam
• Easy does it
• House prices still risingt
• Alternative to gas
• Regeneration VAT incentive falls down
• Lease preparation costs to be disallowed