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You Have To Run Your Rent 2 Rent Company As A Business · The Property Unleashed Podcast

• 0:00
  Speaker 1: Think of your property investing as a business.
• 0:02
  Speaker 1: Hello, my name's Mark Fitzgerald and it's great to have you joining me here today.
• 0:17
  Speaker 1: So you're getting started in property, or maybe you've already got started.
• 0:21
  Speaker 1: At the end of the day, you want to be treating your property investing as a business.
• 0:26
  Speaker 1: Why, you may be asking.
• 0:28
  Speaker 1: Well, there are so many benefits from running your property investing as a business.
• 0:33
  Speaker 1: Now, if you're looking at getting started with the rent-to-rent strategy, you want to be setting yourself up as a business.
• 0:40
  Speaker 1: There are tax benefits.
• 0:41
  Speaker 1: There are a lot of benefits from having a limited company.
• 0:44
  Speaker 1: I'm not going to go into the ins and outs of all of those here, but it's stuff that obviously I help my clients and my students with, as well as they build their property businesses.
• 0:53
  Speaker 1: But if you set yourself up for success, as I like to say, and you do set yourself up as a business, then you can run and manage it all more efficiently.
• 1:03
  Speaker 1: You can potentially sell it in the future.
• 1:05
  Speaker 1: So I run and I manage and I own rent-to-rent businesses with the HMO strategy and the service accommodation strategy as well.
• 1:14
  Speaker 1: Both of those are great strategies when doing this for cash flowing business.
• 1:19
  Speaker 1: They're not the only strategies that you can use as well, but they are a great way to get you started.
• 1:25
  Speaker 1: By offering the owner of property a guaranteed rent, it can really put you in favor and it can help you to start to build your own business in property using other people's properties.
• 1:37
  Speaker 1: Equally to that, as I say, it's not all about rent-to-rent.
• 1:41
  Speaker 1: There are other ways that you can do this.
• 1:44
  Speaker 1: There are other ways that you can acquire property.
• 1:47
  Speaker 1: There are other methods that you can use to work with landlords, to work with investors as well.
• 1:52
  Speaker 1: It's not just rent-to-rent.
• 1:54
  Speaker 1: Rent-to-rents the both word, rent-to-rent is what you hear all of the time, because it's easy to put out there, and there are a few people out there who have obviously got a few rent-to-rents and that's all they know.
• 2:05
  Speaker 1: They haven't been living and breathing it.
• 2:07
  Speaker 1: I've been doing this since 2019.
• 2:09
  Speaker 1: So I've been doing it a wee while now.
• 2:11
  Speaker 1: I've made plenty of mistakes along the way, and that is why I like to help people now that want to get set up, want to have the answers.
• 2:20
  Speaker 1: If you like, do I have all the answers?
• 2:22
  Speaker 1: I've got quite a few answers, but also the community that we put together has a lot of answers as well.
• 2:27
  Speaker 1: Why?
• 2:27
  Speaker 1: Because people are living and breathing it and doing this sort of thing.
• 2:31
  Speaker 1: So when it comes to getting started in property, maybe using the rent-to-rent strategy, that's predominantly what we talk about more on this channel, because those are my businesses.
• 2:42
  Speaker 1: When I got into property, I wanted to set up a business.
• 2:46
  Speaker 1: I wanted to have a brand, I wanted to have a business and I wasn't looking at being the biggest property manager in my area by any means, shape or form.
• 2:55
  Speaker 1: I just wanted to be the best at what I did, and that's what we've set out to do.
• 3:00
  Speaker 1: And we've tweaked things, we've pivoted, we've changed things, we've given properties back.
• 3:05
  Speaker 1: We haven't always kept all of the property deals that we've done, but if we've ever given a property back, we've given it back in a better condition than we received it.
• 3:15
  Speaker 1: We've also renegotiated with landlords and we've also renewed with landlords as well and, of course, taking on more properties.
• 3:23
  Speaker 1: It's a business.
• 3:24
  Speaker 1: Okay, remove the emotion.
• 3:26
  Speaker 1: It's not thinking I'm going to get this one property, I'm going to have this one property for five years, no matter how I'm going to run it or manage it, and I'm trapped into that and if I can't do this, if I can't do that, I'm going to struggle.
• 3:40
  Speaker 1: You've got to be running it.
• 3:42
  Speaker 1: Remove all of that emotion as a business using the relevant contracts, the relevant agreements.
• 3:48
  Speaker 1: So management agreements, lease agreements, as we always say, don't be using ASTs and if you're working with letting agents which of course can be a great source of leads for you don't be just looking at using their contracts.
• 4:01
  Speaker 1: If you can build up the no-liking trust, you really want to be showing them proper.
• 4:05
  Speaker 1: You know rent-to-rent, if you like contracts, property management contracts and agreements but if you need help with that, then reach out to us because we do have packs where we have the relevant contracts that you can use.
• 4:19
  Speaker 1: Now also on that caveat, I'll just mention it here while I'm here Visit thepropertyunleashcom for free tools and resources.
• 4:25
  Speaker 1: You can listen to podcast episodes, there's free training there, there's ebook guides on rent-to-rent service accommodation, hmos, deal sourcing all of that great stuff At thepropertyunleashedcom thepropertyunleashedcom, I think if you just put the propertyunleashedcom it comes up with some sort of dog's home.
• 4:43
  Speaker 1: I don't know where that comes from, but anyway, I digressed.
• 4:46
  Speaker 1: So we want to be a limited company because what you can think about in the future is potentially having a holding company and your rent-to-rent businesses or your property businesses if you're doing different businesses underneath this holding company, then what you would have is they would pay money to your holding company each and every month and that is you being able to build a financial fortress.
• 5:08
  Speaker 1: Now, don't worry about that too much at the start.
• 5:11
  Speaker 1: I do see a lot of people getting hung up with that.
• 5:13
  Speaker 1: They haven't even got a deal and they're like well, how many businesses do I need?
• 5:16
  Speaker 1: How shall I settle these different businesses up?
• 5:18
  Speaker 1: Don't worry about that yet.
• 5:19
  Speaker 1: Let's worry about getting you set up compliantly.
• 5:22
  Speaker 1: To start with, it doesn't cost hundreds and hundreds of pounds to set up a limited business.
• 5:27
  Speaker 1: In fact, it costs about £10.
• 5:29
  Speaker 1: If you do it at its cheapest, £20 will get somebody else to do it for you.
• 5:33
  Speaker 1: So if you're talking to any specialists or accountants or anything like that that want to charge you £5,000, £600 to set up a limited business, I wouldn't bother.
• 5:43
  Speaker 1: You're just getting your trousers pulled down.
• 5:46
  Speaker 1: How do I know?
• 5:47
  Speaker 1: Because I had it done to me.
• 5:49
  Speaker 1: I told you I made plenty of mistakes, didn't I?
• 5:51
  Speaker 1: I had it done to me with my first accountant, not my current accountant, I'll have you add.
• 5:56
  Speaker 1: They do charge me, obviously a premium, a bit more of a fee, to do so, but they didn't charge me.
• 6:02
  Speaker 1: I mean, it was about £600 to set a company up.
• 6:05
  Speaker 1: I was naive and I spent that money and I wish I hadn't.
• 6:10
  Speaker 1: So I'm telling you all you don't need to do this, but you do need to make sure it's done properly.
• 6:16
  Speaker 1: So do make sure that you go to the relevant people and get it signed up at the right place.
• 6:21
  Speaker 1: Okay, you can Google it, it's all there for you.
• 6:24
  Speaker 1: You don't need me to tell you how to do it.
• 6:26
  Speaker 1: At the end of the day, as we all know, the cost of living isn't getting any cheaper.
• 6:30
  Speaker 1: I say this time and time again because people are saying well, I'm struggling with my bills, I'm struggling with this, I haven't really got any money, I don't know what to do.
• 6:37
  Speaker 1: I'm at the wits end.
• 6:38
  Speaker 1: Start something, start something for yourself, start something, but know what you're doing.
• 6:43
  Speaker 1: I always say know what you're doing.
• 6:45
  Speaker 1: You can lose money with rent to rent, with any property strategies, as quickly as you can make money.
• 6:51
  Speaker 1: If you don't know what you're doing and you do it wrong, if you do a bad deal, you know sometimes you might find a renter-renter selling a deal, probably because it's a bad deal.
• 7:02
  Speaker 1: Do you know what I mean they're only selling it because it doesn't make money.
• 7:05
  Speaker 1: If it made money, they'd keep hold of it, wouldn't they?
• 7:07
  Speaker 1: You know deal sources will go out there and do it, but they don't know how to deal source.
• 7:11
  Speaker 1: They don't really know how to do the renter-renge strategy, do they?
• 7:13
  Speaker 1: So, as I say, it's all about being a property professional as well.
• 7:18
  Speaker 1: There's plenty of landlords out there right here right now and there always will be, that need our help.
• 7:22
  Speaker 1: There are landlords that have been landlords for a long time, have seen all the legislations coming in, seen everything that's coming in and hitting them with tax and everything like that, and maybe have had enough or have had bad tenants, have had bad letting agents, have just had bad renter-renters, at the end of the day, doing or looking after their properties, and have had enough.
• 7:42
  Speaker 1: So there's plenty of people out there.
• 7:44
  Speaker 1: We've just got to find the problem.
• 7:46
  Speaker 1: And I say the same thing time and time and time again, because this is the fundamentals of building a property business You've got to find the problem.
• 7:55
  Speaker 1: It's all about finding what is wrong.
• 7:57
  Speaker 1: Nobody will talk to you or want to do business with you in most cases.
• 8:02
  Speaker 1: I always like to say that if they haven't got a problem.
• 8:04
  Speaker 1: But if they have got a problem, then and you can solve that problem, you're in really great chance.
• 8:11
  Speaker 1: You're in with a superb chance of doing a really, really good deal.
• 8:16
  Speaker 1: So some of the best cash flowing strategies in property right here right now are HMOs, houses of Multiple Occupation and Short Term Rental Service Accommodation.
• 8:25
  Speaker 1: You can do both.
• 8:27
  Speaker 1: You can Okay, but all I always say is try and do one to start with.
• 8:32
  Speaker 1: You know service accommodation chances.
• 8:34
  Speaker 1: On a service accommodation you probably will make more money, but it can be a lot more costly to set up because you really do have to put the money into the properties, unless you're converting your own properties and they're already sort of furnished and set up.
• 8:48
  Speaker 1: But it can obviously make you more money as well.
• 8:52
  Speaker 1: Hmos the way I teach it, and everything which is the modern way of doing it, which isn't the old way of getting a house, chucking a bed in an extra room, going for licenses, playing or planning, doing all these sort of things that you've got to pay money for.
• 9:05
  Speaker 1: It's all about going for existing HMOs good existing HMOs, or maybe they just need a lick of paint.
• 9:11
  Speaker 1: We can spend a few hundred quid, not thousands.
• 9:13
  Speaker 1: A few hundred quid, if need be, on the right property just to make it tip top, but it's a cost effective strategy and if it needs more work than that, you need to be getting a landlord or whoever owns the property to do it, because it's their asset, it's their property and, realistically, if they're going to rent it out, they're going to have to do that anyway, aren't they?
• 9:31
  Speaker 1: So, as I say, it's about finding the right people, the landlords that need our help, that want to work with us, because there are a lot out there, but those are predominantly the two strategies that will earn you the most cash flow right now.
• 9:43
  Speaker 1: Now, if you're getting into business see what I did there You're getting into business for cash flow.
• 9:48
  Speaker 1: Okay, we don't want to be losing money, we want to be making money.
• 9:52
  Speaker 1: We want to be making sure that we have the relevant contracts, we have good properties in good areas where we know there's demand.
• 9:59
  Speaker 1: Okay, we want to be able to fill the properties.
• 10:02
  Speaker 1: We want to be making sure that we don't have liabilities in what we're doing, okay, so those are some of the ways and some of the strategies that you can really utilize the properties.
• 10:11
  Speaker 1: Of course, you can use social housing as well, I've never done social housing, but the more I hear about it with the experts that have done it, the more I understand that it you know, if social housing is something you're interested in, where basically a council or a local housing authority will take the property on, will basically do a rent to rent, potentially with you or with the landlord or whatever Look at after the property, putting their own tenants or people in their properties, it's great.
• 10:42
  Speaker 1: Make sure you check the contracts, make sure you check small print.
• 10:45
  Speaker 1: And if they offer you massive monthly rents, run a mile, run a mile.
• 10:50
  Speaker 1: It's unsubstainable.
• 10:52
  Speaker 1: And most of the time when it is too good to be true, it is too good to be true and I've seen people come unstuck with that.
• 10:58
  Speaker 1: I've seen people, I've seen companies collapse and then the landlords are like well, companies collapsed, I'll go and get my property back.
• 11:05
  Speaker 1: There's still people living in there.
• 11:06
  Speaker 1: They can't have picked the people All of a sudden.
• 11:08
  Speaker 1: Then it's got to go through the courts so they're not getting rent.
• 11:11
  Speaker 1: The properties are in disrepair.
• 11:13
  Speaker 1: It's a mess.
• 11:14
  Speaker 1: If you're going to do anything with local housing associations, if it's a market rent or maybe a little bit more, maybe even a little bit less, they're probably a creditable company that you can work with and sleep well at night and as business owners and property professionals, we want to be able to sleep well at night.
• 11:32
  Speaker 1: Strategies can change, but lots of the strategies have been here for years.
• 11:38
  Speaker 1: At the end of the day, rent-to-rent is basically a property management strategy.
• 11:43
  Speaker 1: You are building a business to be a property manager and people at the moment right here, right now are demanding good accommodation, whether they're living in it, whether they're just looking at staying in it.
• 11:57
  Speaker 1: We wanna be out there finding their solutions.
• 11:59
  Speaker 1: So how do we do this?
• 12:00
  Speaker 1: Well, basically we go out there and we market to landlords looking to rent properties.
• 12:06
  Speaker 1: You can go to home owners if you like, but they're in the way, aren't they?
• 12:09
  Speaker 1: So we want landlords, so you go to landlords.
• 12:11
  Speaker 1: Then you gotta be seeing what their problem is.
• 12:15
  Speaker 1: What is the problem that they're having with the property at the moment, and do we have the tools and resources to be able to fix that for them?
• 12:21
  Speaker 1: If we do, we can look to do a deal.
• 12:24
  Speaker 1: You can do the same with letting agents as well.
• 12:26
  Speaker 1: Letting agents you got a middle person in there, it's all right, you can still do it.
• 12:30
  Speaker 1: I've done deals through letting agents.
• 12:31
  Speaker 1: A lot of my students have done deals through letting agents and being very successful as well, but they can be a harder nut to crack, if you like, because obviously their walls and defenses come up.
• 12:45
  Speaker 1: Make sure that you can remove the hassle, that you can deliver on what you're gonna be doing, and then, of course, you could offer a guaranteed rent to the owners as well.
• 12:53
  Speaker 1: So make sure that whatever rent you're gonna pay them as well is a good rent.
• 12:56
  Speaker 1: It's fair, but also it makes sure that you're gonna make the profits that you want from the property, because that's what it's all about.
• 13:04
  Speaker 1: So you can get, if you're doing the HMO, you can get it off the local register, the local council's register, the HMO register.
• 13:11
  Speaker 1: You can also, of course, send letters.
• 13:13
  Speaker 1: You can go networking, you can talk to agents, you can look on the online portals, you can data scrape.
• 13:18
  Speaker 1: You can do all of those great things, but you need to make sure as well that the properties are right.
• 13:25
  Speaker 1: So the right mortgage restrictions are on the properties.
• 13:29
  Speaker 1: So you need to be checking that they are the right properties.
• 13:33
  Speaker 1: So if you're doing short-term rentals, you need to see if there's any restrictions on the mortgages for short-term rentals HMOs if they're already running and this is why I love HMOs, because they've already got the right mortgage, they've already got the licenses in place, they should already be set up, they should be compliant, everything should be done.
• 13:51
  Speaker 1: I just go in there, put my touches on the places and then rent them out.
• 13:56
  Speaker 1: Of course, service accommodation there are some more restrictions and things like that, so you do need to make sure that you're aware of what those restrictions are and how you're gonna get around them.
• 14:04
  Speaker 1: But, as I say, build something that you can be proud of.
• 14:08
  Speaker 1: Okay.
• 14:09
  Speaker 1: Some people say to me well, yeah, but Mark, the strategy that you use, you don't get capital growth.
• 14:13
  Speaker 1: Listen, the strategies that I use, I'm buying and building my own property portfolio anyway, so it doesn't really matter.
• 14:20
  Speaker 1: I'm using the profits that I'm making by doing a good job for these landlords to build and buy my own property portfolio, so I am getting capital growth.
• 14:30
  Speaker 1: But the other beautiful thing that loads and loads of people overlook because they don't look at the bigger picture, is I've built a business now that has people working in it, that is sustainable, that has processes, that doesn't take my time up a lot at all.
• 14:45
  Speaker 1: Okay, that now is worth a lot of money.
• 14:49
  Speaker 1: All the assets, everything that we've built into the business over the last few years is massive, and I actually now have people interested all the time in buying my business, buying my processes, my team and my business and everything.
• 15:06
  Speaker 1: So build something that potentially you can sell for a lot of money in the future.
• 15:11
  Speaker 1: Use it right now to get you out of that day job.
• 15:14
  Speaker 1: Use it right now to build up your cash flow pots.
• 15:16
  Speaker 1: Yeah, make sure that you're moving in the right direction.
• 15:19
  Speaker 1: Make sure you know what you're doing so you don't lose money.
• 15:22
  Speaker 1: And if we can help you with that, check out thepropertyunleashedcom and we have free tools and resources.
• 15:27
  Speaker 1: There's an investment for the training when you want coaching and guidance and help and things like that.
• 15:32
  Speaker 1: Of course there is, but it's money well spent because nobody can take it away from you and if you put yourself in the right environment, you shouldn't be failing either, should you?
• 15:40
  Speaker 1: So why not get out there and build something to be proud of?
• 15:44
  Speaker 1: Build something that can potentially be sold in the future or you can keep it.
• 15:48
  Speaker 1: I'm not interested in selling, so please do not come and ask me.
• 15:51
  Speaker 1: I'm quite happy with the cash flow that I'm getting.
• 15:54
  Speaker 1: I'm happy with what we've created, but never say never at the end of the day, I think if I was gonna sell my business my rent-to-rent business I would probably look to grow it bigger, just so it's worth more At the end of the day.
• 16:09
  Speaker 1: So it's cash flow more.
• 16:09
  Speaker 1: At the moment it's a lovely little size that everybody makes a good living out of it Our clients, our customers, our tenants are looked after, our landlords are looked after and it's a win-win-win in all parties.
• 16:20
  Speaker 1: I'm not gonna look to rock the boat just yet, but who says in the future I don't look to maybe sell it or buy some other businesses to potentially feed my property businesses as well?
• 16:32
  Speaker 1: The world you're oyster.
• 16:33
  Speaker 1: There are so many opportunities and options out there for you in the property world, in the business world.
• 16:39
  Speaker 1: I said at the start of this episode treat it as a business, okay, set yourself up for success.
• 16:45
  Speaker 1: Go and help yourself to the free tools and resources at thepropertyearnleashcom and reach out to me.
• 16:51
  Speaker 1: Follow me, subscribe to me.
• 16:52
  Speaker 1: Friend requests me on all the social platforms.
• 16:55
  Speaker 1: I'm the guy with the blue tick, so you do know that it's actually me.
• 16:58
  Speaker 1: I'm never trying to sell you cryptocurrencies either.
• 17:00
  Speaker 1: I'm glad that stopped now, since I've got a blue tick.
• 17:03
  Speaker 1: But I am here.
• 17:04
  Speaker 1: I love to help and support people where I can, but make sure that you help and support yourself as well.
• 17:08
  Speaker 1: You get out there, you do things properly and you build a business you can be proud of.
• 17:13
  Speaker 1: Come and join me in the next episode now, or I'll see you very soon.
• 17:17
  Speaker 1: Bye for now.
• 17:18
  Speaker 1: Come on, boys and girls, come to your summit.