How To Be A Successful Landlord: Interview With Richard Blanco

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Richard Blanco, dancer turned landlord, bought his first property in 1995 in Hackney, and has since bought 11 more properties and made a hugely successful business from buy-to-let. What’s his secret to success?

Portico estate agents interview London landlord and NLA representative, Richard Blanco, on how to be a successful landlord. Here are some key points they took from the interview:

1. When do you put your properties on the market?

“Knowing when to put your properties on the market is crucial. I engineer all of my tenancy agreements so that they end between February and June or September to October. Spring and early autumn are often the best times to let out a property – so you’re likely to achieve a higher rental price and lower void periods. I actually recently re-let a property for 12 months in August, and when I renew I will offer a 13-month contract so that the next tenancy ends in September.”

2. How do you pick an investment?

“I do have criteria for investment, such as a minimum rental yield, and I also prefer freehold houses that fit the needs of my target market. Most importantly though, a property must always have the potential to add value and it must be located in an area that is improving.”

3. What do you think about Crossrail’s impact and Crossrail 2?

“I’m a huge fan of new rail schemes as they can really lift an area and bring in professional tenants who are my target market. I think substantial chunks of the Crossrail corridor have matured in terms of potential – especially in central London and inner east and west London, but having said that, if you buy in these areas you are likely to be protected from any price falls. I’m certain there is still money to be made in outer London sections both east and west – but this is definitely a long-term goal. I mean, look at how long it took Brixton to regenerate even though the Victoria line arrived in the 1970s!

At the end of the day, we still don’t know the final route of Crossrail 2 so it’s hard to fully comment on its potential impact. I think the north east end of it will be most interesting as there could be greater gains than in already bloated Chelsea, Battersea and Balham.”

4. How have you reacted to the HMO licensing and looming tax changes?

“I have generally taken licensing in my stride. Three of my properties are subject to local authority licensing schemes and two more may be in future. It’s really important that you’re aware of new legislations; for example, my latest purchase in Newham is affected by Article 4 directions, so has to be let to a family.”

5. Do you recommend buying through a limited company?

“I manage my properties as a business through a limited company – and recent research shows that 40% of landlords are thinking of buying property through a limited company.  It’s important you do your sums before making a decision. Although you can set all finance costs against rental income in a limited company, you will pay tax on any money over £5,000 per annum that you withdraw from the company as dividends, with the highest rate being 38.1% – on top of the 20% corporation tax already paid.  And imagine setting up a company structure only to find in 5 years’ time that the government changes the tax regime again.”

6. Do you recommend a mortgage provider for buy-to-let?

“Yes – there are some fantastic deals out there are the moment! Virgin Money, BM Solutions, Godiva and The Mortgage works are still the quickest and all have good rates.  I never pay percentage fees but flat fees, because a percentage of a London property is a lot of money.  I like working with building societies, as if you can manage to develop a good relationship with one it can be really beneficial. Always make sure you have a commercial lender that you can work with, like Lloyds or Bank of Cyprus UK.”

7. What do you think of the future of buy to let now Theresa May is in government?

“Like many landlords, I am heartened that George Osborne was sacked. Theresa May and the new Chancellor Phillip Hammond say that they will be looking at measures to help support business and stimulate the economy. The construction sector is keen for the 3% stamp duty surcharge to be abolished, but I fear we will be stuck with the changes Osborne brought in.

Lenders are keen to continue buy to let as it is profitable for them and Bank of England proposed regulation has already been factored into how most of them operate.  George Osborne shifted policy to homeowners away from landlords and it is hard to predict whether this will continue to be the stance of Theresa May’s government. We’ll have to wait and see…”

Article Courtesy of: PORTICO

… LandlordZONE.

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Legal responsibility – N Power or Landlord?

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A tenant vacates a property and both the tenant and managing agent provided final meter readings to the utility company to terminate the supply of electricity and gas. However, N Power fails to terminate the utility supply. The property is then empty for 9 months with the service still connected and at the end of… Read more

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Landlords reminded over fire door responsibilities

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This week is Fire Door Safety Week – with landlords reminded of the importance of fire doors in rental homes. The week-long campaign aims to raise awareness and educate people of the importance of fire doors in commercial, public and multiple occupancy buildings. Landlords have a responsibility under the Regulatory Reform (Fire Safety) Order 2005 […]

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£1million spent on Travel Lodge accommodation in PRS perfect storm

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It has been reported that Peterborough Council have spent over £1million to house families in Travel Lodges since April This year. This is due to an increase in Homelessness in Peterborough from an average of 98 people per month to 150 in August. The Council is blaming this increase on the role out of Universal… Read more

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Landlord Action to feature in third series of Channel Five’s ‘Nightmare Tenants Slum Landlords’

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Following the success of the first two series, Channel 5 has commissioned a third series of ‘Nightmare Tenants, Slum Landlords’, with Landlord Action as one of the leading tenant eviction firms featuring throughout the twelve-part series. As rents spiral ever upwards due to continuing pressure on housing stock, the dramatic observational documentary will continue to… Read more

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Tenants Hit by Rise in Online Rental Fraud

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Strong demand for rental properties, particularly in the Capital, is bringing a surge in online fraud, where fake landlords trick would-be tenants into transferring deposits for properties that don’t exist. Police forces in the UK report a 44 per cent increase in the scam last year, claiming that around 3,000 people seeking accommodation contacted them. […]

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No Nonsense Tax Advice For Landlords

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Section 24 Tax Problems – Will your mortgage interest payments be taxed? The following breaks down, into three easy sections, the important questions of whether your mortgage interest payments will be taxed from 2017 onward, and if so what you can do about it. Identify the size of the PROBLEM, if indeed there is one at all What… Read more

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RLA members raise £1,500 for charity

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RLA members have donated goods worth £1,500 to charity via new app Gone for Good. Gone for Good asked RLA members to donate unwanted items from their properties to be sold to raise cash for a range of good causes. In the two months since the scheme was launched donations from RLA members have helped […]

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The Maluka Thanks George Osborne

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The following appeared this weekend in the comments section of an article published on the Conservative Home website:- I am The Maluka. I am a rich landlord without a mortgage (I had to look up ‘mortgage’ on Wikipedia for the word was not in my vocabulary). Currently I house many, more than 100, DWP tenants… Read more

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First HMO property but what about the future?

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I’m in the process of purchasing my first HMO property and need some advice on purchasing in my sole name, or through an SPV company as I understand the interest relief will soon be gone for sole investors along with other changes. What if the same reliefs get changed for limited and SPV companies? Or… Read more

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