Best Rent To Rent Property Strategy 2019 | Money Matters | Touchstone Education


(energetic music) – Hi everyone, hope you’re well, it’s Abby here, and I want to talk to you
today about some changes that are gonna be coming in, in June of this year. And why, why in particular, if you’re a property investor a property entrepreneur, or
starting out in property, you will want to know about these changes. So, last year, the government ruled that they’re gonna bring
in a tenant fee ban on letting agents in the UK. So this means, that letting
agents will not be able to charge an admin fee,
from this year forward, for any new tenancy agreements. This is absolutely massive, and last year we found out
this was gonna come into play on the first of June this year. So the first of June this year, letting agents will not be
able to charge an admin fee, Now this is huge, and this
has hit letting agents across the board. Usually because 40% of the
profit that letting agents make, is from admin fees, so suddenly you’re going
to wipe out their profit. The other part of the puzzle is landlords, they’ve not been happy with
letting agents for a while, a lot of landlords discuss the service that letting agents give, and the RLA surveyed all of it’s landlords in December 2018, with the new tenant fee
ban coming in place, and the landlords said that they’re thinking about coming
away from letting agents, and being particular, 56%
of the landlords surveyed, said they would not use a letting agent. Now, if you’re into property, like me, into rent to rent, this is massive. The reason why this is massive, is it’s gonna make getting hold of rent to rent properties easier. So the first of June comes, letting agents can’t charge fees, some of them are gonna go out of business, and there’s no two ways about that, some landlords are gonna take back ownership of their property and management of their property. What is the landlord gonna be hit with? They’re gonna be hit with
having to manage that property, having to manage arrears, having to manage disruptive tenants. So if you’re into rent
to rent, this is huge, because for me and my
business, I’m thinking, “well I can go to landlords now,” and say, “I will take your property for five years, I will guarantee the rent, I’ll look after it and I’ll
use it to make me money,” and I will be able to get
more rent to rent deals, like that over the line,
due to this happening. The other thing that’s gonna happen, is a lot of landlords
are gonna start selling, we’ve had Section 24 come into place, and it’s hit them this year, with their tax returns in January, and we now have letting agents,
issues, admin fees, banned, and the fact that now they’re
fed up with letting agents, so they’re gonna want to either, manage their portfolio themselves,
or sell their portfolio. When they’re gonna sell, I think a lot’s gonna
come onto the market, and I think there’s gonna
be huge opportunity, to get rent to rent deals,
to get lease options, and to get property below market value. So as you can see, the
government bringing in the tenant admin fee bans is
gonna be huge across the board, and us here in Doncaster,
we run an estate agency, we run a letting agency, and we’re already
preparing for this shift. Luckily for us, we only
started our letting agency three years ago, and we never
actually charged an admin fee. I think we charged £50 per tenant? So it’s not gonna wipe us
out, we’re gonna be okay, but we are estimating that, A – hopefully we’re gonna
get more new landlords a part of it, but B – we’re also estimating
the number of landlords that are gonna want to manage
their property themselves. So, if you are into, rent to rent, if you wanna get lease options, if you wanna get property
below market value, now is the time to start
putting stuff into play and putting feelers out there, to get hold of these landlords, who aren’t sure what they’re gonna do, who aren’t gonna be staying
with a letting agent, now is the time to strike. And what we’ve been helping people do on our mentorship program,
over the last month or so, is starting to prepare
and get ready for this, and what action they’re gonna take, to get hold of their landlords. So that’s it from me for today, just a few minutes of thoughts, that I thought you might
find useful, like I did. If you want to be part
of our Touchstone Family, and get updates like
this, and useful videos, please subscribe to our channel. Also in the comment box, let me know what type of content you
wanna see, what is useful, do you wanna see trends
and news in property? Do you wanna know about tax? What is it you’ll find beneficial that we can make sure we give more of? So that’s it, thank you for now. (outro music)

6 thoughts on “Best Rent To Rent Property Strategy 2019 | Money Matters | Touchstone Education”

  1. It's all happening…PS must have a direct hotline with the Landlord God!! Always seems to be well positioned these days!!

  2. Would be good to know if there is a recommended forum or Company that you would recommend to help me correctly issue a Section 21 as I want to sell a property of mine and am having trouble with paperwork that the local Council will accept as the Tenant is Housing Benefit…

  3. What will happen if we are working with agents to get properties? Agents won't be interested to find properties for us ?

  4. Fantastic video! I just have a question. Once you agree the monthly rent with the landlord, do you usually find tenants using letting agents or spareroom.co.uk? And once you the tenants are in do you use the lettings agent to manage the property for you? Thank you!!

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