Advice for a young novice landlord please?

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    Advice for a young novice landlord please?

    Hello everyone, Iam a first year university student here in manchester and recently I was gifted a considerable amount of money to start a business by my parents. Iam a complete novice in landlording but I'm planning on putting a mortagage down on 2 terrace properties just to experiment first. here in manchester and rent it out to students and possibly families. If anyone could provide me with advice of where I should invest in manchester, stuff I should read and how to deal with possibly older tenants due to my young age(I feel really awkward just thinking about it) I would really appreciate it. Iam willing to learn and I'm thankful for any useful advice and input from everyone on here. Thank you!

    #2
    Do a course on how to be a landlord before absolutely anything. And now is not a good time to invest as a novice.

    Comment


      #3
      If you must buy, buy a suitable house for uni next year and let rooms to your friends - you will save your own rent and learn a lot in the process!
      Unshackled by the chains of idle vanity, A modest manatee, that's me

      Comment


        #4
        Originally posted by Stargazer5201 View Post
        I'm planning on putting a mortagage down on 2 terrace properties just to experiment first.
        Why do you think you'll get a mortgage when you're a student? Do you have a regular income to pay the mortgage in the absence of rent incoming?

        Originally posted by Stargazer5201 View Post
        here in manchester and rent it out to students and possibly families. If anyone could provide me with advice of where I should invest in manchester,
        You're in a better position to answer this question than the rest of us. You are a student yourself in that area. Where are/would your fellow students look to rent?

        Originally posted by Stargazer5201 View Post
        (I feel really awkward just thinking about it)
        If that's the case, you should consider seriously whether this would work for you?

        Originally posted by islandgirl View Post
        If you must buy, buy a suitable house for uni next year and let rooms to your friends - you will save your own rent and learn a lot in the process!
        That.
        I am not a lawyer, nor am I licensed to provide any regulated advice. None of my posts should be treated as legal or financial advice.

        I do not answer questions through private messages which should be posted publicly on the forum.

        Comment


          #5
          Originally posted by Jon66 View Post
          Do a course on how to be a landlord before absolutely anything. And now is not a good time to invest as a novice.
          I read as much as I could on landlording basics and guides online and I also went over all of the tenant and landlord rights on gov.uk. are there any books that you would recommend? I understand that the current situation may not be the best time to let out due to the current restrictions set by the government on landlords. So I'm thinking maybe next year or after lockdown.

          Comment


            #6
            KTC,

            Why do you think you'll get a mortgage when you're a student? Do you have a regular income to pay the mortgage in the absence of rent incoming?

            My parents said they will sort out my mortgage because they decided support my decisions on the basis that I will pay them back eventually.

            You're in a better position to answer this question than the rest of us. You are a student yourself in that area. Where are/would your fellow students look to rent?

            The thing is, due to the current lockdown. I wasn't able to interact much with everyone at the university. I wasn't able to travel around the city either and now I decided to move back home. I'm still really ignorant on the area.

            If that's the case, you should consider seriously whether this would work for you?

            I mean I look younger than I should be(I'm 19 but I look like a 17 year old). I just want advice on how to deal with potentially older tenants.

            Comment


              #7
              Originally posted by islandgirl View Post
              If you must buy, buy a suitable house for uni next year and let rooms to your friends - you will save your own rent and learn a lot in the process!
              Thank you! I'll definitely consider that.

              Comment


                #8
                I can only comment on the resentment you might find about being a very young landlord. I was relative to you older at 36, even when I let to other people I could tell the resentment they feel that someone the same age of them is in a position to own a property. I think you will get pushback from people your own age and especially older that will see you as privileged that u own a house at such a young age. You need to be aware that you will get that people will be jealous of you and that can cause resentment even if you are the best landlord in the world. And you will have to know the ins and outs of this business. You are so young and you will find it easy it’s like learning a new language the younger you are the better. But a lot of being a landlord is experience and from that comes judgement. If you read this forum are you really prepared to put up with the s**t that goes with being a landlord in 2021. If I wasn’t already invested in this sector I would never do it now. And I think it’s just going to get worse.

                Comment


                  #9
                  Good for you - ignore the negative sentiments here and go for it!

                  I would suggest that a student rental is a difficult place to start - high maintenance, 'naive' tenants' HMO licensing etc.

                  I would start with buying a house for yourself for the rest of your Uni days and rent rooms to friends. You will learn a lot from being a home owner. Then, if you still like property, buy a single-family let - this is the easiest part of the market IMO.

                  Start slowly and learn as you go. Have a look at the Property Hub website - lots of helpful advice there.

                  My kids owned their own home through Uni - although I set it up and ran it for them - it saved them a fortune in rent and made money from income & Capital Gains.

                  Good luck

                  Comment


                    #10
                    I wouldn't start with 2 houses. I'd get one, live in it, let out rooms and then consider what to do when your uni course is finished. Being a landlord can be very demanding. You have to deal with the tenant's problems, often late at night and sometimes throughout the night. There's loads of paperwork too .

                    You'd be looking at around £190k + for properties in Manchester's student zone (eg Fallowfield, Withenshawe), then you'd be trying to ensure they comply with legal requirements, finding tenants etc, and studying at the same time. It's going to be a lot to take on.

                    When you finish your course you might be working in a different part of the country and landlording at a distance is difficult, unless you put it under management.

                    Now isn't a good time to get into the landlord business. If I was you I'd be flipping properties instead.

                    Comment


                      #11
                      jpucng62,

                      Thank you very much, that's the reason why I'm considering on buying instead of renting because it's cheaper on the long run. Can I ask you whether it is better to take on a long term mortagage or a short-term mortgage for buy to lets? Because the mortgage that I currently have can be converted to a buy to let mortgage after 5 years.
                      thank you!🙂

                      Comment


                        #12
                        I always go for long term mortgages because there are costs of time & money in remortgaging that I would like to avoid! Mortgage rates are pretty low right now, so as long as you intend to keep the property long term I would go for a long fix of at least 5 yrs or a lifetime tracker if you can get a good one

                        Comment


                          #13
                          What lies behind the decision to invest in property and become a landlord.
                          It's an odd choice of business for a younger person.

                          How you structure your business (personal or company ownership) can make a significant difference.

                          I would look at training from the NRLA - do not look at training from anyone else, particularly those who sell seminars online.
                          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

                          Comment


                            #14
                            As said look at the NRLA for training before you part with one penny - In terms of negative comments on the forum, i would look at them as constructive, they are pointing out what the issues are right now, in the last few years the PRS has changed beyond recognition and there are many LL's out there who would be out of the market right now if they could, just fully understand what you are getting into by taking your time on this. The BTL market was the obvious place to go back in the day, not so much now, so take on board what others are saying, it has been good for me but in the next 5 or so years i will be selling up as the EPC C changes come in, do not just look at how it is now, look at what is coming down the line. All the best what ever you decide.

                            Comment


                              #15
                              jpkeates,

                              I'll be honest, the reason why I decided to invest in the property market is that I see a lot of potential in property and that it is a somewhat stable sector to invest in despite the current scapegoating of landlords by the government and God knows what disastrous future policies that they will enact. Although it might sounds deeply immoral but given the current economic climate, I expect that the job market would become even more unstable thus more people would opt to rent(in cities and suburbia) so I want to invest in that sector whilst I'm young and have the capital to do so.

                              currently I wish to keep my business as private ownership but I may contact property management companies in the future if I decided to study a pHD etc...

                              I'll definitely consider signing up for NRLA for training!
                              thank you very much!

                              Comment

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