Zero to Hero: The new breed of landlord who’s also an agent, blogger and investor

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“I won’t win every landlord so I might as well teach them how to do things properly,” explains Portsmouth-based investor and entrepreneur Tom Soane (main picture), who runs landlord workshops as well as the popular Anonymous Landlord podcast as a way to share his and others’ experience.

Soane, who runs a fast-expanding portfolio of properties, insists the information and advice is all free and promises to answer every email and help wherever he can.

“I’d love to offer a landlord support service one day,” he tells LandlordZONE, “where they could get a quick answer to everything.”

Empire

In the meantime, he’s busy growing his business empire in Hampshire. Soane started his career as a letting agent, then became a mortgage advisor before starting up his own agency – local online platform Pink Street – in 2012.

After getting some mentoring, he figured that scaling up was the way to go and first bought the Whites agency in Fareham followed by four more acquisitions in quick succession: Taylor Garnier in Wickham, Tenant Finders in Southsea, YesCanDo in Havant, and Principal Properties in Waterlooville.

Soane is still growing his own portfolio of properties around the country – mainly buy-to-let houses for a fast exit if needed – using the capital to re-invest.

4,000 properties

He’s also on the lookout for more agencies around Hampshire and aims to eventually reach his target of having 4,000 managed properties, up from the current 1,000, to become the biggest independent letting agency in the county.

Lettings make up 80% of his companies’ business and Soane explains that he’s taken learnings from each firm to hone his model.

“The difference between mine and other companies is the people I employ and having robust processes for everything,” he says.

He predicts that in the future, the PRS will witness larger property owners creating agencies for their own portfolio, and his next project builds on that: a portfolio management firm for those landlords currently using multiple agencies for their properties around the country, giving them a single point of contact – opening the door for him to buy agencies in other areas. “I love to keep busy,” he laughs. “It’s also a way of leaving a legacy.”

Read more ‘Zero to Hero’ stories.

View Full Article: Zero to Hero: The new breed of landlord who’s also an agent, blogger and investor

Landlord wins battle with council over ‘typing error’ that stopped him selling property

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Benefits landlord Mick Roberts (pictured) is fuming that he’s spent hours chasing up his local council after it mistakenly billed his daughter for rubbish clearance but refused to speak to him when he tried to clear up the admin mess.

Nottingham Council sent him a bill addressed to his daughter back in 2016, without any explanation about what it was for.

When he called to explain the error, officials told him they could only talk to the person named on the bill – so he didn’t pay it.

And when he recently came to sell the house, Mick’s solicitor alerted him to a £417 charge which he then connected to the incorrect historic bill.

“Their legal department said they wouldn’t talk to me as I had a solicitor dealing with the complaint when in fact my solicitor was just doing conveyancing work,” an exasperated Mick tells LandlordZONE.

“It’s so frustrating that they won’t just pick up the phone, as it could all be sorted out so much more quickly.”

Typing error

The council has acknowledged the “unfortunate typing error” and explains that the charge related to the removal of rubbish in 2015, which it has now refunded. It told him that this now won’t appear on a search.

A spokesman says professional conduct rules prevent, “communication with a person in relation to a subject in which that person is represented by another solicitor, without permission from that other solicitor”.

She adds that the complaints team doesn’t have access to the individual council departments’ files, information or knowledge, but that they work out who can deal with the complaint before passing on a response, so that citizens don’t have to contact multiple departments.

Mick isn’t satisfied and plans to take his complaint to the Local Government Ombudsman but doesn’t hold out much hope that it will take any action.

“This absurd Nottingham Council complaints process is meant to wear us down and give up trying,” he adds.

Read more about Mick Roberts.

View Full Article: Landlord wins battle with council over ‘typing error’ that stopped him selling property

LATEST: 18% of rented homes will need £10,000 spent on them to achieve EPC band C

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Nearly one-fifth of private rented homes would need work costing more than £10,000 to bring them up to an EPC Band C, according to the latest PRS figures.

The English Housing Survey Private Rented Sector report for 2020-21 found that these were more likely to need larger sums of money spent on them to reach a C than those of social renters but less likely to require the greatest spend of £15,000 or more compared with owner-occupiers.

Energy efficiency improvement costs were estimated at between £5,000 and £9,999 (45% of PRS homes), while almost a third (31%) could be improved for under £5,000.

At the other end of the scale, 18% of homes would cost more than £10,000 to improve to at least a Band C, and a further 6% of homes would require £15,000 or more.

2025

The government is currently considering proposals that would mean all new tenancies started after the end of December 2025 would need a minimum EPC rating of C while all existing tenancies would need this from December 2028.

In 2020, most private renters lived in properties with a Band D (45%) and C (39%) while 10% lived in homes with a Band E, and 4% were in the lowest rated homes with Band F or G.

Read more about energy efficiency laws.

Private renters generally lived in poorer performing dwellings compared with social renters; 63% of social renters’ homes had a Band C and only 1% lived in houses with a Band F or G. Private renters in London (50%) were more likely to live in a property with a C rating compared with the rest of England (36%).

The report puts the poorer energy performance of the private rented sector down to the fact it has a higher proportion of the oldest (built before 1919) and generally less well-insulated housing stock than the social sector.

Read the report in full.

Read more about EPCs

View Full Article: LATEST: 18% of rented homes will need £10,000 spent on them to achieve EPC band C

This feels like it should be criminal?

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For the last month, the freeholder of my property has blatantly refused to supply my conveyancing solicitor (and I) with a copy of the Building Insurance Certificate & Policy to which I am legally entitled ‘free of charge’.

Despite daily requests since the beginning of June from solicitors

View Full Article: This feels like it should be criminal?

Halifax House Price index inflation continues with supply imbalance

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The Halifax House Price Index jumped by 1.8% in June with annual inflation at a record 13% the highest since 2004. The average house price now stands at £294,845.

Northern Ireland continues to display the highest annual inflation in the UK at 15.2%.

View Full Article: Halifax House Price index inflation continues with supply imbalance

A Guide to Commercial Bridging Loans

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If you are trying to finance a commercial property project but are struggling to pin down a mortgage, taking out a commercial bridging loan could be the answer. However, as with any type of borrowing, it’s important to know all you can before agreeing to anything and signing on any dotted lines. 

So, with this in mind, join us as we not only run through what a commercial bridging loan is exactly but also highlight some of the key benefits that they can offer. 

What is a Commercial Bridging Loan? 

In simple terms, a commercial bridging loan is a short-term financing arrangement secured against the perceived value of a commercial property. 

Whether it be an office space, hotel, warehouse, shop or retail unit, these loans can be taken out by more or less anyone who works in a commercial space and offer a great alternative to a mortgage. In fact, a commercial bridging loan actually comprises two separate types of products within it – what’s known as a bridging loan, and a commercial mortgage. 

In essence, the bridging loan allows the initial commercial property purchase to go through, whereas the business mortgage sets up a longer-term financing arrangement with a lender. 

What Are the Benefits of a Commercial Bridging Loan? 

As we’ve touched on already, commercial bridging loans can offer a huge number of benefits. These typically include: 

• Quick Turnaround Times. Verus Capital is one example of a lender that can arrange a commercial bridging loan in as little as one to two weeks, making them particularly useful whenever you need to access funds quickly. This might include, for example, when buying a property at auction, where it won’t always be possible to set up a commercial mortgage in time for the sale to go through. 

• Short Term Arrangement. Commercial bridging loans can typically be repaid over a period of between one and 24 months. Therefore, if you are waiting for capital to come through but need quick access to funds, taking out a short-term commercial bridging loan could prove a lot more beneficial than a mortgage. 

• Added Flexibility. If you are trying to purchase a commercial property that’s derelict, or in dire need of repair work, you’re unlikely to be eligible for a mortgage. However, taking out a commercial bridging loan could provide you with the funds you need to get this repair work done, helping you secure a better mortgage deal later on. 

Which Situations Are Commercial Bridging Loans Useful For? 

While on the topic of unmortgageable properties, there are a number of other situations where taking out a commercial bridging loan can prove incredibly useful, as proved by their recent boom in popularity. 

These situations largely centre around times when needing a quick cash flow injection into your business. Whether it be to cover a tax bill, pay for new lines of stock or cover any unexpected staffing costs, taking out a commercial bridging loan provides quick and easy access to funds when you need them most. 

Likewise, if you are looking to expand your business by purchasing new commercial premises, a commercial bridging loan can provide you with the funds you need to move more quickly. 

What Are the Eligibility Criteria for a Commercial Bridging Loan? 

Unlike other forms of borrowing, there are no set eligibility criteria for taking out a commercial bridging loan. However, there are a few key things a lender will look for in your application. These include: 

1. Exit Strategy 

When applying for a commercial bridging loan, your lender will be looking to determine how likely you are to be able to repay what you owe. 

More commonly referred to as your exit strategy, you will need to inform your lender on how you intend to repay the loan – whether it be through selling the property in question or taking a commercial mortgage out on it. 

The lender will then assess certain conditions within your application, such as the property’s location and how much renovation work is required, before letting you know whether you’ve qualified for a loan or not. 

2. Credit Score

As with pretty much any type of borrowing, the better your credit score is, the more likely you will be to get approved. 

Therefore, it’s important to keep track of your credit score and make sure it’s looking nice and healthy when applying for a commercial bridging loan. 

While the lender will be basing the bulk of their judgement on your exit strategy, having a poor credit score could hinder your likelihood of being approved. So, being able to show that you’re a low-risk prospect will certainly help your chances. 

3. Significant Industry Experience 

While on the topic of proving you’re a low-risk prospect, showing that you have significant experience in both the buying and selling of commercial property will also significantly aid your application. 

Likewise, your lender will want to see that you are a profitable business with a good track record. Therefore, by showing them your accounts are all in order and outlining any future business plans you have, this could convince them you’ll be able to afford the repayments expected of you. 

How Can I Apply? 

As a slightly more niche type of borrowing, you will need to source a specialist commercial bridging loan broker when applying for a commercial bridging loan. 

They will then have the market knowledge and experience required to not only secure a commercial mortgage for you but also ensure you get the best deal possible for your specific circumstances. 

View Full Article: A Guide to Commercial Bridging Loans