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Many landlords ‘have not recognised the need to educate themselves’

How do you potentially balance property buying and management with a full-time job? What strategies have you developed to build wealth and generate passive income? 

When it comes to investing in property there is a lot to learn. 

Generic education has become one of the most important tools for landlords, according to Paul Shamplina, a director at Hamilton Fraser Group and founder of Landlord Action. 

“One of the most common excuses I hear from landlords is ‘I didn’t know’,” he said. 

Whether you are new to property or a long-term investor, it is important to keep on top of tax and regulatory changes, along with a wide range of other commitments. 

Shamplina continued: “We enter education from a young age and then later, may take the path of further education which best suits our skillset or interests. 

“No matter what we do, we are always learning. For example, when we start a new job, more often than not, we’re given training and guidance.” 

Shamplina feels that part of the problem with the PRS is that for many, becoming a landlord started off as a “lucrative hobby, not a job”.

As the sector has grown, it has become entirely necessary to put some policies in place to protect the consumer and raise standards, just as a business would have in place for its employees and customer. 

However, legislation has come so thick and fast that many landlords have struggled to keep up and have not recognised the need to educate themselves as a landlord. 

He added: “If you are a landlord that likes managing your rental property yourself, building a relationship with your tenant so that they are encouraged to stay longer and treat your property as a home, that is fantastic.  

“However, the latest count I read, was there are now 176 rules and regulations relating to letting a property, so my advice is to simply learn, learn, learn. 

“I tell all the landlords and letting agents I train to go online at the beginning of the day before they get stuck into work mode, emails and calls, and just read what is going on in our industry.

Shamplina advises BTL landlords to visit various websites dedicated to the PRS, including Landlord Today. 

He also advises landlords to join a landlord association such as NLA or RLA, as, in his view, they “provide the latest news, campaigns, lobbying, market trends and sign posting of recommended suppliers, as well as an advice line”.  

He continued: “Being part of this community of professional landlords means collectively we have a stronger voice. This I have seen first-hand while sitting on the Fair Possessions Coalition in response to the government’s intentions to abolish Section 21.  

“Along with many other organisations and associations in the industry, we’ve come together. We need more of this going forward.

“Landlord Redress will be mandatory in the not too distant future. Personally, I think this will be a positive move which will force landlords to be accountable, responsive and more compliant when renting out a property. And yes, this will require more learning because it means the consumer, your customer, will be able to make a complaint about your service.

“It’s tough enough working full time, being a parent, running your own house, etc. So, if you simply do not have the time to be a professional landlord, find a tenant, deal with all the compliance paperwork, arrange an inventory and handle regular communication with your tenants, I strongly advise you to use a managing agent.”

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    Why do we need to educate ourselves far too late for that even if we were interested, we know what its all about just red tape to destroy us but keep us jumping through hoops in the mean time. 177 rules for us why not scrap 150 of those as its certainly nothing to do with quality affordable housing. Its all about computers that has destroyed the world but you are all too obsessed with your lap-tops & iphones to you know the difference, it now takes more time to deal with compliance red tape than to provide the property, even to make a phone call could take 2 hours well done, regulations should only be incidental to the main business, not the main issue or a bigger obstetrical than providing quality affordable property itself this is not sustainable. Perhaps one day we'll have a space storm knocking the Satellites, will you be equipped or remember what real work is, you certainly do not now, how will you cope when pressing your buttons or rubbing your fingers on a piece or glass don't work anymore. I built my first house by my own hand with only hand tools in Ealing 47 years ago, no hand out, grant, help to buy or build no family support possible & Dad rip, incidentally which I still have the house but now I have to educate myself to deal with all the crap from the digital Academic guys that gave 10 years going to University to learn how to muck everything-up, now living off our backs, congratulations.

    Paul Barrett

    Interesting my now deceased Grandfather inherited money from his father who built Lindfield Gds in Ealing.
    When his wife died he lost interest which is why there is now a church and the end rather than houses.
    Not sure whether he rented them out but he made enough for my Grandfather to buy a farm.

    Perhaps LL today should consider something similar!!

    The e children still have some of the houses.
    I might inherit them from my mother!!
    Obviously hope that doesn't occur anytime soon.
    But know I would sell and invest elsewhere .
    Ealing is horrendous.
    Great if you're a plane spotter.
    Can't miss them as they roar over the house!!

     
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    Agreed I too renovated and built my own homes from the late 70s onwards, no hand outs and living in a caravan in the back garden, I even done much the same with most of my investment properties, sad the way things have changed, and certainly not for the better.

     
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    @ Paul, I have a friend, we go back to early school days, a hands on farmer, no range rovers or crap like that, a very happy guy, at 67 I'm a bit to long in the tooth to retrain as a farmer.

     
  • Paul Barrett

    I was thinking as a strategy to pass on property wealth via land as there are tax advantages doing so.

    I certainly DON'T believe the PRS will remain viable.
    The attack on the PRS is just unsustainable.
    Any more of these just makes being a LL simply untenable; educated or NOT!

    WE even have that Khant Khan advocating rent controls!!

    More silly lefty ideas with every potential to infect the body politic.

    God help us if the Tories pick up on this

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    I suppose we could survive on the land as well and be self sufficient, as our ancestors did for thousands of years, its second nature to us wouldn't have same constant stress & sacrifice as been a LL, then again that too has been destroyed with the educated clan whether it be chemicals, pesticides and technology. We could tackle a horse for sure but the guys on some building sites have more harness than a horse plenty of red tape there to.

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    It matters not how adept you are at keeping up. Short of quitting PRS you never know from 9ne year to the next what new barriers will be put in place to you a) getting rent b) getting your investment back. Looks like CGT is going up, after LR being abolished a year ago. Insider says it will be 20%, 40% and 45% as of April 2021. That after a year of no rent. Honestly you couldn't make it up.

    Matthew Payne

    When the CEBR are predicting house prices to fall in 2021 by 14% with that slide about to start shortly, the one thing the chancellor needs to do is stimulate the market as he has done with stamp duty to combat that potential disaster in a year when the economy will need all the help it can get after CV19 and leaving the EU. It seems like Hari Kiri to prevent LLs from selling before the end of March with the current 6 month notices, and then 5 days later, tax them far greater if they then try to in a market when prices are potentially going to be in freefall. Cold winds will blow for quite some time if your insider is correct.

     
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