One of our clients Luca, owned a 3 bedrooms East London property. Sounds like it should be a goldmine, right? Well, when Luca got in touch with us, his property wasn’t making him any profit at all.
- Condition of the property.
- The type of tenants living there.
- Lack of knowledge on how to deal with a difficult situation.
The situation Luca was in when we began our journey together, was that the property hadn’t been well maintained. In addition to this, the family renting the property were unable to pay the rent and were in arrears. Unfortunately, Luca wan’t taking the right steps and his cash flow from the property was going the wrong way; he was paying while the tenants didn’t.
Inexperience Caused a Lost Profit
Not only were the tenants not paying their rent, they’d also trashed the property. Luca was in a terrible position of owning an investment that had lost value and wasn’t making him money. He decided to give his tenants notice and to find new ones. But, because the previous tenants had wrecked the house, he couldn’;t find new ones willing to move in for the advertise rent.
Coupled with the lack of cash due to him covering all the costs for the past few months, Luca just didn’t know what to do. What he really needed was money, time and knowledge. With those three elements the property could be improved, rented to the right tenants and a profit would be guaranteed.
Most of the time, property investors get in touch with us. But, in this situaiton, we contacted Luca. We’d heard about the situation and knew we could help. After an honest conversation, we made Luca an offer he couldn’t refuse.
Our solution was for Luca to sell the property to a cash buyer partner of ours, which gave Luca the profit he wanted. We then converted the property into a five bedroomed, en suite HMO and managed it for the new owner.
After just 5 weeks, Luca was stress and debt free. In the mean time, we’d had the property refurbished an converted to the standards required for a HMO and had also placed good tenants there. With the property rented to the right tenants, it realised its potential as a profitable investment – for everyone involved.
Property Management Done Right
Our experience and understanding of the residential rental market ensured we were well equipped to quickly improve Luca’s situation. Luca understood the property’s potential for profit, but a lack of experience meant he didn’t quite manage it on his first try.
Because we look at a variety of options, we find the best solution for everyone. The property is now as profitable as it should be and five tenants have a great place to live. We were able to do this quickly due to our knowledge, the team we’ve created and excellent contacts.
Because the investor came at the right time and gave the landlord a way out, we were able to get a reliable team of builders in to do a job we knew we’d be happy with. Our experienced sales team’s quick action also meant three were secured prior to the completion of the works!
By surrounding ourselves with the right people we are building a successful business.
If you want to know more about property investing, don’t hesitate to contact us
Alessio Tondo & Fabio Tarantino
Two ordinary guys who turned their passion into a business.
Rent 2 Rent specialists, London
Focused on how to Increase Your Rental Income.