Greetings, I Come in Peace

[AVJ113]

Hello all, I am a prospective landlord. I will be arranging my first mortgage in principle today as a start to my evil buy-to-let empire. As a total newb, what would be the one piece of advice you would give after your years of experience as a landlord?

[Section20z]

Don't do it.

[Slackjawedyokel]

Check the EPC. Rented houses are supposed to be EPC-C by 2025 for new tenancies. You don’t want to have to tear the place apart after a few years to add insulation. If I was buying, I’d want at least EPC-B to add some future-proofing.
Good luck!

[jpkeates]

Know why you’ve chosen this type of investment over all the other possibilities.

[AVJ113]

Don't do it.

1. What are the main reasons behind this advice?
2. If you could go back in time and invest in something else, what would it be?

[royw]

Wait until you know about the new legislation and carefully consider what happens when things go wrong. If you are unable to remove an obnoxious tenant you may wish you'd invested elsewhere. I'm not buying any more until I know, atm I'm more likely to sell.

[AVJ113]

Check the EPC. Rented houses are supposed to be EPC-C by 2025 for new tenancies. You don’t want to have to tear the place apart after a few years to add insulation. If I was buying, I’d want at least EPC-B to add some future-proofing.
Good luck!

Thank you - I've only been here five minutes and already I've gained some vital information!

So presumably a lot of people here are going to have to do exactly that before 2025. What is the general strategy? Wait until the tenancy ends then upgrade? Wade in and do it now in preparation? Pay your sister's boyfriend's mate for a 'C' certificate?

I assume before long houses with a C or above are going to fetch higher prices on the market?

[AVJ113]

Wait until you know about the new legislation and carefully consider what happens when things go wrong. If you are unable to remove an obnoxious tenant you may wish you'd invested elsewhere. I'm not buying any more until I know, atm I'm more likely to sell.

I didn't know new legislation was on the horizon; do you have any links to what the expectations are?

[AVJ113]

Know why you’ve chosen this type of investment over all the other possibilities.

Yes I have my head wrapped around that, thank you.

[royw]

I didn't know new legislation was on the horizon; do you have any links to what the expectations are?

Google renters reform bill.

[Turbine Terry]

Be very very careful who you accept as tenants. Use a very rigorous selection process involving many questions and meet them face to face. There are many posts on this and other forums about what questions you must ask and what checks you must do. If you get even the slightest bad feeling about them, do not accept them as tenants. Tenants will lie (shocking I know!). You will find many tenants with issues in the background (CCJ's, no references, not enough income etc) will try and talk you into renting to them. Do not do it. Demand is massively above supply at the moment, better to have the house empty for a while and wait for good tenants than accept ones that could cause you issue. Once they are in they can make your life hell and cost you many thousands. Bad tenants: I've been there, done that, got the T-Shirt and learn't the very hard way.

[doobrey]

2. If you could go back in time and invest in something else, what would it be?

Countless options that would have required a crystal ball, but a realistic one (which didn't, particularly) would have been Berkshire Hathaway.

General advice would be prioritise ISA over other investments.

[AVJ113]

Be very very careful who you accept as tenants. Use a very rigorous selection process involving many questions and meet them face to face. There are many posts on this and other forums about what questions you must ask and what checks you must do. If you get even the slightest bad feeling about them, do not accept them as tenants. Tenants will lie (shocking I know!). You will find many tenants with issues in the background (CCJ's, no references, not enough income etc) will try and talk you into renting to them. Do not do it. Demand is massively above supply at the moment, better to have the house empty for a while and wait for good tenants than accept ones that could cause you issue. Once they are in they can make your life hell and cost you many thousands. Bad tenants: I've been there, done that, got the T-Shirt and learn't the very hard way.

Thank you. I was thinking of using a service to locate and secure tenants. Does anyone have any views on that?

[Slackjawedyokel]

Thank you - I've only been here five minutes and already I've gained some vital information!

So presumably a lot of people here are going to have to do exactly that before 2025. What is the general strategy? Wait until the tenancy ends then upgrade? Wade in and do it now in preparation? Pay your sister's boyfriend's mate for a 'C' certificate?

I assume before long houses with a C or above are going to fetch higher prices on the market?

I’m in an unusual position in that I have a couple of cottages in the middle of my land (I’m a farmer), so I can’t do what I’d otherwise do and sell them off. They’re scraping an EPC-E and to bring them up to a C would mean spending serious cash (estimate 100 to 150K each) but this would make the already small rooms even less liveable. Also my wife and I have always talked of building a retirement house there in the future when we retire (10 to 15 years).
It makes no sense to spend a lot on the existing houses - we are currently looking into demolishing them and rebuilding a proper low-energy house to let out as holiday accommodation (the site has cracking views).

If you can’t stand the heat etc; I’m getting out!

[theartfullodger]

If you want peace, don't go B2L.

You might make money from BTL or you might not.