Week 90: Forget Plan A...Plan B is Better

Ninety weeks in and it’s back to plan B! Do be prepared for this as you will be going backwards and forward a lot on projects. Factors beyond your control will happen and you will have to make swift decisions to reflect the changing nature of the renovation. For us it was the option of a holiday let. We have missed the peak staycation season and with a mortgage repayment of £780 a month we have had to give this some serious thought as defaulting on mortgage repayments is not an option if I want to grow my portfolio. But, maybe it's for the best as I have no holiday let experience other than from my own personal travels. Also, given the fact that the rental income is seasonal and erratic in nature when compared to say a regular let, puts us more at risk. Perhaps for a third project I can cope with the irregularities that come with the monthly rentals but, it being my first, I think the stability that comes along with knowing an exact figure is just too much to ignore at this stage..

Talking to serviced accommodation management (aka: holiday lets) companies was a good experience and was something we strongly considered and was looking to go forward with, so no time wasted. We spoke to the mortgage broker and he came back with a quote which was pretty steep, it makes you think about your profits. So we called around some HMO (House of Multiple Occupation) management companies. There were so many that managed properties in Skegness and around the area but none in Wainfleet, this made me very nervous. I kept calling and getting the same answers, however, finally we had a breakthrough, one said yes. The lady sounded very confident and reassured me that they have several properties there and that they can rent out the rooms fairly quickly. Now all we have to do is get the house ready in the span of a few short weeks. 

Luckily, I am not phased by this as during my early days of what I call my property career I did nothing but read & re-read, attended courses with some events and knew exactly what was required and how to go about it. I remember some saying all this good for nothing attending this and that is a waste of time. You should jump right in and over analysing is wasted time. Even then I just smiled and took it on the chin and so glad I did as now I am not running around like a headless chicken trying to learn a new concept in the midst of renovating, applying for a mortgage and getting off the bridge finance. Sometimes you just have to trust your own judgment. I even had a mate saying: 'you get a house and stick some tenants in, how hard can it be?’ I say, do a good job and do it once, no point turning out a crappy product and forever making amendments because you never set it up right in the first place, where is the logic in that? These are real people with real families and real lives. Please don’t cut corners and create great private housing out there. 

You have a social/moral obligation and it’s not always about filling your own pockets. Provide solid accommodation and you will have long term tenants and let's face it ‘happy tenants’ make ‘happy landlords.’ Period.