There was an interesting programme on recently about Buy to Let. It was on the BBC as part of its Inside Out series of programmes. The programme focused on the fact that a lot of people still believe that Buy to Let is a great way to get a good pension pot, which it is; however it showed that its not always a walk in the park!
There can be major pitfalls to becoming a landlord and it can cause some major headaches! 70% of landlords are amateur landlords and according to Paul Shamplina of Landlord Action there has been a 30-40% increase in evictions recently.
We have recently had a situation where our LHA tenant had her housing benefit stopped. She refused to go to the council to fill out a form to get it reinstated. Therefore we have had no rent paid to us since July 2014. She has also refused to pay top ups since shes been in the property, which is over 2 years. We had no other option but to start the eviction process.
The eviction took place last week, we have had to pay £2K in mortgage payments and £1K for the eviction and are now having to refurbish due to the mess she has left which will be another £2K at least. It is so frustrating that people like her think they can live rent free at the cost of the landlord. She was fully referenced when the agent installed her in the property, so I guess you can never tell. However it is so important to thoroughly reference somebody and do your due dilgence properly.
Watch the programme here on BBC iPlayer; and for the section on Buy to Let, skip to 11 minutes