Property Investors, Affiliate Income and HIPS – More Baloney!

I recently received a magazine in which a Get Rich Quick in Property Guru was harping on about how “Property Investors” - (funny that these guys never refer to “landlords” who have to actually get in and do real work like arrange to get fixes for boilers, sort out tenant issues etc, but let’s leave that aside for now) - could make money by other sources of income linked to their property sourcing business.

The guru referred to how investors could make thousands each month by becoming a letting agent for other, er, investors, how they could do a spot of mortgage broking on the side or how they could make lots of cash each month by running affiliate schemes for landlord products such as we do on our Landlords Services page.

Not Much Money Here!

What a load of baloney as they would say in New York.

Most letting agents I know do OK, but they are not rich - and the work is very hard indeed involving long and antisocial hours dealing with difficult tenants and more than a few awkward landlords. And as the barriers to entry to become a letting agent are so low, profits have always been and always will be on the low side.

Or Here.....

The same goes for mortgage broking.

Right now mortgage brokers are having a very hard time in the buy to let arena as volumes are low and as more and more people go direct to the lenders (hardly surprising as there are so few lenders to choose from.)

And as to affiliate income, well I know from experience that even with our own busy site there is not much money to be had from that source either. A few hundred pounds a year from one of our insurance affiliates and that’s about it.

Maybe these guys have to promote these ideas about other sources of income because too many of their clients are so disappointed when they find they cannot make the £s they were promised at seminars through the route of No Money Down or Cash Out Property Deals, so they have to sweeten the clients up a bit and tell them the Holy Grail of Get Rich Quick is still possible. As they say in New York, again, Forgeddaboutit!

HIPS

So, Labour is the only political party that wants to persevere with the Home Information Pack (or HIP) in its current form.

My view is that it was too bad the current Government allowed itself to be bludgeoned into jettisoning the Property Valuation Report, which was to have been in the HIP when it was originally designed.

What should have happened was the Valuation Report should have been included in the pack provided by the seller.

It could have been made to be valid (or extendable at low cost) for say a minimum period of 6 months. And as a neat side benefit, this would have helped ensure only serious sellers put their property on the market in the first place – which seems sensible to me.

So why didn’t they do this?

The Banks and RICS Scuppered the Best Plans

Well, the net effect would have been to reduce the number of valuations that were done overall and so this idea may not have appealed to those with vested interests in the valuation business – namely RICS and the mortgage lending banks.

The banks (who make a pretty penny out of Valuation Reports) moaned about how no buyer would trust a report produced by a vendor. (Really, even one done by an esteemed RICS surveyor?)

Unfortunately, the government (back then as close to big business as ever) believed this nonsense and didn't face down the surveying industry or the banks on the issue.

And so we ended up with a HIP that, without a valuation, was not much use to buyers at all.

MORE ABOUT LETTINGFOCUS AND WHAT WE DO

LettingFocus.com is the home of landlord information.

I’m David Lawrenson, a landlord and property investor myself for over 25 years and author of “Successful Property Letting” – the UK’s top selling commercially published property book for the last 3 years.

Services to Businesses and the Public Sector

Primarily I am a consultant to banks, local authorities, social housing providers and other organisations – helping them with their landlord facing or buy to let product strategies and services.

For example, I help banks improve their buy to let mortgage lending practices and I help housing association / local authorities find private landlords (private rented access schemes, local letting agency models etc.)
I also write for property websites and am regularly quoted by the broadcast media.

Services for Private Landlords

We also find some spare time to help landlords and property investors by coaching them in how to make money in the private rented sector using ways that work, which are ethical, fair to tenants and which involve minimal risk to the investor.
We pride ourselves on giving independent unbiased buy to let advice on either a one-to-one mentoring / coaching basis or through our occasional group seminars. With no links to property firms, developers or bridging loan providers we can advise on where and what type of property to buy for investment and when to buy it. We also show you how to manage tenants properly.

AT OUR WEBSITE LETTINGFOCUS.COM:

THE HOME PAGE OF THIS BLOG click here: Blog

THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page

For general info on our CONSULTING click here: Consultancy and Seminars

ONE TO ONE PRIVATE CONSULTANCY click here: Property Mentoring

NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors:
Next Property Investment Seminar and Networking Event

We have OFFERS on a range of services and products for landlords too; click here including landlords insurance, tenant referencing, tenancy agreements and more: Services and Products for Landlords

TO READ CLIENT TESTIMONIALS – both commercial and private click here: Testimonials

BUY “SUCCESSFUL PROPERTY LETTING” click here: Buy the Book at Amazon plus anything else you fancy at Amazon.co.uk

To JOIN our Free QUARTERLY NEWSLETTER simply send an email to david@LettingFocus.com - Please note we WILL NOT send spam or sell our mailing list to advertisers!

IF YOU HAVE A SITE WHY NOT LINK TO THIS BLOG OR TO OUR WEBSITE?

IF YOU SELL SERVICES TO LANDLORDS, YOU COULD BE A PARTNER ON OUR AFFILIATE PROGRAMME.

PLEASE GET IN TOUCH!

See our TWITTER PAGE: http://twitter.com/LettingFocus

Copyright of Blog: David Lawrenson 2009. This blog is updated roughly once a week usually on a Monday or Tuesday.

TO VIEW RELATED POSTS select a “Category” at the bottom of this page.

Energy Performance Certificates or EPCs - Get Ready says Letting Focus

OK, here is today's second blog - and time for another dig at the banks.
All landlords have to have an Energy Performance Certificate (or EPC) done on any property where a new tenancy starts from October 1st.
But here is an interesting tale that shows the potential confusion.
A reader emailed me today to say that he just had an energy performance certificate done. He got a lousy score so he had it done again. This time he got a much better score. I’ll let him take up the story…
“I invited the relevant Accreditation Scheme firm to whom the first Assessor was linked, to reconsider. This they did, both promptly and politely and wrote to me confirming the original assessment was correct.
However, the second one is now saying that they had assumed the flat was a middle floor flat (described quaintly by the first DEA as an "end of terrace top floor flat"). On reflection, they said, although the flat is accessed from the middle floor there are no dwellings above it and so it is as the first DEA described. A reconsidered report is promised.
As I understand it, I can avail myself of no overarching mechanism for checking both reports and delivering a final verdict on them. So far as I am concerned I cannot discover, unless I enroll on a DEA Course and pay my £3000, which, if either, is right.
I realise I could have said nowt and retained the latest EPC as being the best. I suspect Hazel Blears' civil servants wont be losing much sleep over this!”
An interesting tale and I expect many landlords will be confused come October.
Just to remind you, EPCs are another new requirement we will have to comply with and pay for. The EPC must be given to a new tenant and each EPC will last for 10 years.
The good news is that all existing tenancies that pre-date October 1st won’t have to have the EPC done until you re-let.
On a related theme, the real story on EPCs and whole HIPS saga in general is that valuation reports should have been part of the package made available to property buyers.
But the banks and the mightily powerful RICS were very worried about losing their nice little earner from doing multiple surveys for different mortgage applicants on the same property.
So they lobbied the government and muddied the waters. Some guff was spun about buyers not trusting a valuation report done for the vendor - even though it was the same RICS people who would have done the valuations.
Mmm, work that one out!
The government fell for it hook line and sinker and the valuation report was not included in the HIPs package which makes HIPs of limited use in speeding up the house buying process.
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ABOUT LETTINGFOCUS.COM and DAVID LAWRENSON
I’m David Lawrenson of property investment expert lettingfocus.com.
I’m the author of “Successful Property Letting - How to Make Money in Buy to Let” which for the last 2 years has been the UK’s top selling property title - buy the UK's top selling landlord book.
It is fully up to date with all the recent changes to tenancy deposit schemes, HMOs, licensing, capital gains taxes and it has new sections on buying property below market value.
I’m an expert property journalist, property speaker and a well known landlord blogger
I contribute to newspapers and a host of property websites, write a number of columns in the press and I can provide landlords coaching
I also work as a consultant helping banks, building societies, housing associations and web portals with their buy to let and property products and services and am a regular speaker at property shows.
You can read more of my blog & find details of my networking, advice, property mentor programme at my website.What’s unique about lettingfocus.com is that we offer you help as an independent property investors coach because unlike most people in the buy to let and property “advice” business we are not linked to a property company, a developer, an agent or bridging loan financier and do not receive commissions from any of these sources.If a property investment is lousy – We’ll tell you straight and we will tell you all about buy to let and property investment - the good and the bad and we won’t make silly promises that you’ll become a millionaire overnight.
Copyright: David Lawrenson 2008. This blog is updated once a week.
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HIPS Postponed says LettingFocus

What a mess!
What should have happened was that the government should have stood up to the mortgage lenders and RICS and told them to find a way of having a valuation report included in the home condition report (HCR) prepared by a vendor.
Instead, they let them off the hook - and binned the HCRs.
Why did the lenders and RICS oppose this?
Maybe they were worried about losing the income stream that having multiple surveys done for different buyers on the same property bought them.

ABOUT US

LettingFocus.com is the home of landlord information.
Hello, I’m David Lawrenson.
I have been a landlord and property investor myself for over 25 years and am author of “Successful Property Letting” – which has been the UK’s top selling property and buy to let book for the last 3 years.

We help landlords and property investors make money in property by coaching them in ways that work, which are ethical and which involve minimal risk to the investor.
We pride ourselves on giving independent unbiased buy to let advice on a one to one mentoring and coaching basis as well as through occasional group seminars.
Unfortunately, in the UK today, property advice in the UK is still largely unregulated and what counts as “good advice” is too often more about making the promoter money than giving useful information to the investor.
With no links to property firms, developers or bridging loan providers we can advise on where and what type of property to buy for investment and when to buy it.
We also show you how to manage tenants properly.
We also do consultancy for banks, local authorities and social housing providers – helping them with their landlord facing or buy to let product strategies. We also write for property websites and are regularly quoted by the media.

AT OUR WEBSITE LETTINGFOCUS.COM:

THE HOME PAGE OF THIS BLOG click here: Blog
THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
ONE TO ONE PRIVATE CONSULTANCY click here: Property Mentoring
NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors:
Next Property Investment Seminar and Networking Event
We have OFFERS on a range of services and products for landlords too; click here including landlords insurance, tenant referencing, tenancy agreements and more: Services and Products for Landlords
For general info on our SEMINARS AND CONSULTING click here: Property Seminars, Networking Evenings and Consulting
TO READ CLIENT TESTIMONIALS – both commercial and private click here: Testimonials
BUY “SUCCESSFUL PROPERTY LETTING” click here: Buy the Book at Amazon plus anything else you fancy at Amazon.co.uk

To JOIN our Free QUARTERLY NEWSLETTER simply send an email to david@LettingFocus.com - Please note we WILL NOT send spam or sell our mailing list to advertisers!
IF YOU HAVE A SITE WHY NOT LINK TO THIS BLOG OR OUR WEBSITE?
SELLING SERVICES TO LANDLORDS – YOU COULD BE A PARTNER ON OUR AFFILIATE PROGRAMME. PLEASE GET IN TOUCH!

See our Twitter page: http://twitter.com/LettingFocus

Copyright David Lawrenson 2007 Back to main site: www.lettingfocus.com

Letting Agents Check Those Letting Agencies Contracts Carefully

Lots of estate agents are now busy telling people they will do a HIP for you for free. However, as Elaine Moore points out in last Saturday’s ever informative FT, there is a big catch.
She says, “If you are selling a house where the estate agent provides you with a Hip, it belongs to them - not to you.”
So, if you later to to sell it with another agent, or take it off the market completely you’ll probably be hit with a pulling out fee.
As I have said before, you need to carefully check all clauses in any contract you sign with agents – be they letting agents or estate agents.
If I had a pound for every landlord who suddenly finds to his surprise that 6 months down the line his letting agent wants a fee because the tenant has renewed, I would be a richer man. (If the original tenancy contract is just renewed, there should be little if anything for the agent to do – and certainly nothing that justifies a 5% or higher fee.)
Back to main site; www.lettingfocus.com
The link to the full text of the FT’s article is here: http://www.ft.com/cms/s/55ae3f74-fa2f-11db-8bd0-000b5df10621.html

AT OUR WEBSITE LETTINGFOCUS.COM:

At LettingFocus we give independent advice to landlords and property investors.
We also provide consultancy to banks, property websites and public sector bodies, helping them with their buy to let and landlord facing products.

THE HOME PAGE OF THIS BLOG click here: Blog
THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
ONE TO ONE PRIVATE CONSULTANCY click here: Property Mentoring
NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors:
Next Property Investment Seminar and Networking Event
We have OFFERS on a range of services and products for landlords too; click here including landlords insurance, tenant referencing, tenancy agreements and more: Services and Products for Landlords
For general info on our SEMINARS AND CONSULTING including corporate consulting click here: Property Seminars, Networking Evenings and Consulting
TO READ CLIENT TESTIMONIALS – both commercial and private click here: Testimonials
BUY “SUCCESSFUL PROPERTY LETTING” click here: Buy the Book at Amazon plus anything else you fancy at Amazon.co.uk

To JOIN our Free QUARTERLY NEWSLETTER simply send an email to david@LettingFocus.com - Please note we WILL NOT send spam or sell our mailing list to advertisers!

IF YOU HAVE A SITE WHY NOT LINK TO THIS BLOG OR TO OUR WEBSITE?
IF YOU SELL SERVICES TO LANDLORDS, YOU COULD BE A PARTNER ON OUR AFFILIATE PROGRAMME. PLEASE GET IN TOUCH!

See our Twitter page: http://twitter.com/LettingFocus

Copyright: David Lawrenson 2007.

HIPS (Home Information Packs) Are Getting Slimmer By the Day says LettingFocus.com

It seems that another bit of the Home Information Pack - the property search documents from the local authority - probably won't be mandatory when HIPs start on June the first.
People selling property will instead only need show that searches have been requested.
The Home Condition Report - a key part of HIPS - was made optional ages ago.
So, it seems HIPs are slimming down by the day.
Apart from the Energy Performance Certificates the only key things you need are the evidence of title and the sale statement.
The Royal Institution of Chartered Surveyors has called for the launch date to be pulled and so have other worthy bodies - but the Government is ploughing on.
But don't forget though - if you sell privately to someone you know and don't market the property, plus if you sell property with the tenants in it - i.e. not with vacant possession - you wont need to provide a HIP.

MORE ABOUT LETTINGFOCUS AND WHAT WE DO

LettingFocus.com is the home of landlord information.
I’m David Lawrenson, a landlord and property investor myself for over 25 years and author of “Successful Property Letting” – the UK’s top selling commercially published property book for the last 3 years.

Services to Businesses and the Public Sector
Primarily I am a consultant to banks, local authorities, social housing providers and other organisations – helping them with their landlord facing or buy to let product strategies and services.
For example, I help banks improve their buy to let mortgage lending practices and I help housing association / local authorities find private landlords (private rented access schemes, local letting agency models etc.)
I also write for property websites and am regularly quoted by the broadcast media.

Services for Private Landlords
For private landlords and other investors in the private rented sector, we do just two London seminars each year.
We also find some spare time to help landlords and property investors by coaching them in how to make money in the private rented sector using ways that work, which are ethical, fair to tenants and which involve minimal risk to the investor.

We pride ourselves on giving independent unbiased buy to let advice on either a one-to-one mentoring / coaching basis or through our occasional group seminars.
With no links to property firms, developers or bridging loan providers we can advise on where and what type of property to buy for investment and when to buy it.
We also show you how to manage tenants properly.

AT OUR WEBSITE LETTINGFOCUS.COM:

THE HOME PAGE OF THIS BLOG click here: Blog
THE HOME PAGE OF OUR MAIN SITE click here: LettingFocus Home Page
For general info on our CONSULTING click here: Consultancy and Seminars
ONE TO ONE PRIVATE CONSULTANCY click here: Property Mentoring
NEXT SEMINAR AND NETWORKING EVENT for Landlords and Property Investors:Next Property Investment Seminar and Networking Event
We have OFFERS on a range of services and products for landlords too; click here including landlords insurance, tenant referencing, tenancy agreements and more: Services and Products for Landlords
TO READ CLIENT TESTIMONIALS – both commercial and private click here: Testimonials

BUY “SUCCESSFUL PROPERTY LETTING” click here: Buy the Book at Amazon plus anything else you fancy at Amazon.co.uk
To JOIN our Free QUARTERLY NEWSLETTER simply send an email to david@LettingFocus.com - Please note we WILL NOT send spam or sell our mailing list to advertisers!

IF YOU HAVE A SITE WHY NOT LINK TO THIS BLOG OR TO OUR WEBSITE?IF YOU SELL SERVICES TO LANDLORDS, YOU COULD BE A PARTNER ON OUR AFFILIATE PROGRAMME.
PLEASE GET IN TOUCH!

See our TWITTER PAGE: http://twitter.com/LettingFocus
Copyright of Blog: David Lawrenson 2007.
This blog is updated roughly once a week usually on a Monday or Tuesday.TO VIEW RELATED POSTS select a “Category” at the bottom of this page.