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Secondary income for landlords


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I am currently assisting landlords (on a commission only basis) to maximise the income from their properties, and also reduce their risks, and part of this involves enabling them to obtain multiple secondary income streams from each property. Quite often this is also to the benefit of the tenants as well. I have come up with a number of ways of enabling this, but I'm always keen to learn more so I wondered if any other landlords had any experience of gaining secondary income streams from their properties (i.e. other than the rent they receive from the letting)?

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I would be surprised if many landlords come back to you and say they have other ways of receiving income from their property other than rent. Legal ways anyway:D

 

If there were any legitimate means of doing this, surely most experienced landlords would have considered them?

 

Apart from Jeffrey's suggestion that it may be to do with solar panels I can't think of anything else:)

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There are many various ways of increasing the income from renting properties, all of which are legal and ethical. Jeffrey is right that buying solar panels is one option, though generally this is a big investment and you have to wait many years before you start to make a profit, - you can of course get solar panels installed free of charge but then you don't get the generated extra income (though tenants may benefit from lower electricity bills, and this could be a major selling point to attract tenants). I suppose you are right that many landlords would not be willing to share such information, but they have nothing to lose by doing so, (if they do have any such ideas of their own for generating more income).

 

So have other landlords considered renting out parking spaces? getting an ongoing commission for the utility services the tenant uses? renting out storage (e.g. outhouse, garage, loft, etc)? changing the structure of their business (not necessarily the properties) to maximise the income opportunities? changing the tenant type or letting type? linking with local businesses for mutual benefit? renting out the furniture? issuing licences instead of tenancies? etc, etc. I know how to do all these things legally and effectively. These are the types of ideas and practices I'm talking about, and I wondered if anyone else is doing such things apart from me, and if so would they like to share this information with others and/or link up with me to explore these options further for their business. I know it is a radical idea, and a bit "outside the box", but I believe that sharing such practices is good for both landlords and their tenants, so everyone can benefit. I'm always happy to listen to others and explore the feasibility of ideas, so if there are other open minded landlords who want to explore ways of increasing their income then I would like to hear from them.

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Re that renting out parking spaces...renting out storage (e.g. outhouse, garage, loft, etc)?

 

L cannot do either if the parking spaces etc. are already let to T. You see, L is deemed to let the entire property to T except for any parts explicitly excluded. Here's s.62 of the Law of Property Act 1925 (in which Act 'conveyance' includes 'lease' etc.):

 

62. General words implied in conveyances.

 

(1) A conveyance of land shall be deemed to include and shall by virtue of this Act operate to convey, with the land, all buildings, erections, fixtures, commons, hedges, ditches, fences, ways, waters, water-courses, liberties, privileges, easements, rights, and advantages whatsoever, appertaining or reputed to appertain to the land, or any part thereof, or, at the time of conveyance, demised, occupied, or enjoyed with, or reputed or known as part or parcel of or appurtenant to the land or any part thereof.

 

(2) A conveyance of land, having houses or other buildings thereon, shall be deemed to include and shall by virtue of this Act operate to convey, with the land, houses, or other buildings, all outhouses, erections, fixtures, cellars, areas, courts, courtyards, cisterns, sewers, gutters, drains, ways, passages, lights, watercourses, liberties, privileges, easements, rights, and advantages whatsoever, appertaining or reputed to appertain to the land, houses, or other buildings conveyed, or any of them, or any part thereof, or, at the time of conveyance, demised, occupied, or enjoyed with, or reputed or known as part or parcel of or appurtenant to, the land, houses, or other buildings conveyed, or any of them, or any part thereof.

...

(4) This section applies only if and as far as a contrary intention is not expressed in the conveyance, and has effect subject to the terms of the conveyance and to the provisions therein contained.

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There are many various ways of increasing the income from renting properties, all of which are legal and ethical. Jeffrey is right that buying solar panels is one option, though generally this is a big investment and you have to wait many years before you start to make a profit, - you can of course get solar panels installed free of charge but then you don't get the generated extra income (though tenants may benefit from lower electricity bills, and this could be a major selling point to attract tenants). I suppose you are right that many landlords would not be willing to share such information, but they have nothing to lose by doing so, (if they do have any such ideas of their own for generating more income).

 

So have other landlords considered renting out parking spaces? getting an ongoing commission for the utility services the tenant uses? renting out storage (e.g. outhouse, garage, loft, etc)? changing the structure of their business (not necessarily the properties) to maximise the income opportunities? changing the tenant type or letting type? linking with local businesses for mutual benefit? renting out the furniture? issuing licences instead of tenancies? etc, etc. I know how to do all these things legally and effectively. These are the types of ideas and practices I'm talking about, and I wondered if anyone else is doing such things apart from me, and if so would they like to share this information with others and/or link up with me to explore these options further for their business. I know it is a radical idea, and a bit "outside the box", but I believe that sharing such practices is good for both landlords and their tenants, so everyone can benefit. I'm always happy to listen to others and explore the feasibility of ideas, so if there are other open minded landlords who want to explore ways of increasing their income then I would like to hear from them.

 

Could you expand on what you mean by 'changing tenant type' and 'issuing licences instead of tenancies' please?

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Thank you for that clarification Jeffrey, and I totally agree, but of course when there is a void period then the landlord can re-let the property explicitly excluding the parking space, or outhouse, etc, in which case the landlord can rent them out separately, and thus potentially increase the overall rental yield. This is not always effective as there are many variables, but if done right it could make a positive difference to the landlord's income.

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I'm well aware of Street v Mountford, but I'm also aware of how to create legal licences that would not be considered tenancies, and these are very useful particularly in HMO lettings, as they enable you to retain much more control of what goes on in the house and of course also enables you to evict residents who are in breach of their licence agreement, e.g. by not paying the rent or by anti-social behaviour etc.

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Hi Topdog,

 

I've pm'd you in regard to licences and tenancies. If you do ever use licences, always get them checked by a specialist solicitor.

 

In relation to "changing tenant type", some landlords focus on just one or two tyeps of tenants, e.g. students, but there are many other possibilities, some of which are not obvious and may not normally be considered.

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