Richard Thomson, SNP political researcher, in the comments to my previous post:
...you're assuming that landlords have full knowledge of their tenants earnings, and that they will always try to screw as much out of their tenants as they possibly can. That's just not how the property market works, I'm afraid.
Erm, when I was a BTL investor, I had four one-bed flats managed by a proper letting agent. Before taking on a new tenant they did a proper credit check, asked for payslips and an employer reference. So they knew how much the tenant was earning.
The phrase 'screw as much out of their tenants' is a tad emotive, but you won't be amazed to hear that I'd ask my letting agent at every change of tenancy how much I could re-let it for and whether it was worth tarting the place up a bit. If they told me that I'd be able to put up the monthly rent by £40 if I were prepared to spend £500 on new carpets and a lick of paint, I knew I'd have my money back in a year, so that's exactly what I did, especially as tenants stayed in for an average of two years or so.
So, er, that's exactly how the property market works, IMHO. And these people want to run a whole country?
Thursday 4 September 2008
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And presumably as a renter yourself now you had to do the same.
Yet another example of our professional political class being out of touch. No wonder so many of our laws are riddled with unintended consequences.
What a silly post, Mark. Still, the more you talk, the better I'm known.
I do all my letting myself, without using an agent. I look for a reference, but I don't look for evidence of earnings, since my only concern is that they'll look after the place and pay the agreed rent on time. I'd be surprised if you found too many private landlords who operated very differently.
A quick look at the local newspaper tells me all I need to know about the state of the rental market. I know what equivalent properties are going for, so I know what band I'm then prepared to negotiate within.
That's how the property market tends to work, at least it does if you're prepared to get your hands dirty and not allow an agent to cream off 10-15% for doing very little.
Incidentally, we do run a country. If the polls are to be believed, we're doing it rather well into the bargain. How's UKIP coming along?
... and the prices you see in the local newspaper include ones advertised by letting agents, and the tenants who come to view are comparing your prices with other landlords, letting agents and newspapers. Ultimately, the rents you charge are in line with the ones let via letting agents. That's how the property market works.
People like me advertise too. Anyway, it still doesn't alter the fact that lots won't require EoE, and for those who do, that only gives a snapshot as to what someone was earning at that point in time.
Earnings could go up or down from that point. You still have no reliable way of knowing what someone is capable of paying on which to base your hypothesised rent hike.
If the rent is set too high, the property will remain empty.
There is no reason to know what tenants earn.
PS Richard, the SNP is not running a country, it is spending taxes as it sees fit.
Speaking as a Scot, I hate the SNP.
Speaking as an Englishman, I love them
Richard Thompson.
I can make you very famous indeed.
Be careful what you wish for. You might just get it.
Especially when you put your name and address on your blog.
Silly boy.
Why on earth are you risking your property without getting proof of earnings?
Very risky I would have thought.
Its only a recent payslip or a bank statement after all.
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