Welcome to the HMO experience. The UK's only HMO focused property podcast where every Monday Matt Jaime & Steve will inform and inspire you about everything to do with hmos rent to rent and how to set up and grow a successful HMO business whether you're just starting out or you're already on your way. Hey guys, I'm Harris and welcome to the HMO experience. This is episode 11 and we We are going to be covering off proxy onboarding and set up as you can see it's only the Two Amigos today for me. Jamie has gone off to do some very important client facing work. And so Steve and I are going to be presenting this episode. So let me introduce you to Steve Saylor Steve. Hello Steve nice. So let's kick this off and in the last three episodes we've covered off viewing. Offering negotiation and then the last one we cut off cover off the power team. However, once you've got your offer accepted and what we're going to talk about now is obviously getting making sure you've got the legal structure in place and then getting the property to a point where you're ready to furnish it. So that being said Steve you want to kick us off with what you generally tend to do once your offer has been accepted on a property. See ya preventer rent for ramps around cool. Okay. So the first thing for us is to focus on the legal side of the arrangement. So we've obviously done our deal analysis with other deal Works. We've had our offer accepted its now formalizing that arrangement with the shrimp landlord and agent, so we favored a management contract or they get other people for lease Arrangements. That's entirely So then they talked about that one of the the beginning and they were little Benjamin experience. So we favored a management contract and we are checking things like blue is the actual owner of the property. Sure. So what we do is we going to land registry will put in the address. We download the title deed and we make sure that the Contracting party that we are entering into is the same. Same that is listed on land registry. Sure. So what we don't want to be is in a position, whereby we've got a contract. Yeah with a third party who doesn't own the property which can get you into some bills. Yeah, so we always make sure and our contract goes down to the detail of who the person is the title of the reference on the property so that if we have to go to court any reason whatsoever that time Indeed reference in the thing that joins the actual property to the owner to a contract. Yeah, so we're covered off and there's no ambiguity about what property were talking about. Yeah. So once we've got the the contract or lined up and that's gone off to the either the vendor directly. Yeah. Well that I will directly or the letting agent because when we sign a contract it's and the properties conveyor letting agents what we call a tripartite agreement. Yes, we're signing the property owners saying and the letting agent the signing deaf and that makes it fair and extraordinary everybody understands what's going on. There's no suggestions of some letting you know that a big thing in our world and trying to convince agents that we're not subletting. Well, this is how we go about it. So once all the legal stuff is done. We then start to focus on the Instead. Yeah, and the compliance bit for Us is around making sure that the ho actually has a license. Yeah, so what's the right Sensational or if it's not currently license, then we start the process to get the 40 license. We make sure that there's a valid gas safety certificate on the we make sure that there is a valid fixed firing test certificate. Yeah, if you're inheriting electrical appliances. It needs to be packed tested. So you need to make sure you've got the relevant documentation for that. And then once we've done all of our compliance checks, then we start to get under the skin of the property like really talked about in previous episodes. Whereby we are. We have a hundred eight things that we that we look for the other we have a checklist. So again, the benefit of having a checklist means that anyone can do that. I want to see anyone not anyone that are somewhat is being trained to That and we're checking things like electric sockets to make sure they'll work. Yeah, we're checking to make sure that all the appliances were so we actually put the washing machine on with the other tumble dryer off the dishwasher on anything as in there. We actually test it. Yeah. I know I've known some people who haven't done it yet. And the first time a customer comes to put their washing on suddenly. There's a big leak, which again is not ideal. From your new customers coming in to your new property. So testing all of the appliances which might seem like a mundane thing. I think is quite a crucial because it's better to spot these things early and get the landlord to rectify than having to do that yourself. So you haven't you once we've got that in place and all of the checks are done and I think we're attaching a copy of our hundred eight. We are the check. Going to be in the show description so you can download that. It's then we focus back into our Administration setup. So we use a system called Arthur and we thoroughly recommend our that there are other systems out there. But we recommend Arthur Arthur online that is yeah. So we start to set up the property of the system and we are putting in detail such as what is the cereal. Number four the washing machine. What is the serial number for the tumble dryer? And the reason we do that and have that on file is that if there's a problem then we can simply go on to our online app get the serial number give that to a domestic appliance engineer he can put that into his system and he can order the park and go and fit it at the same time. So all of these little bits of information is quite crucial we go down. The level of knowing what type of light bulbs are any true so that if we get a customer who rings in and says the light bulbs are out in the lounge, it means that we can go to the store pick out the appropriate light bulb go and get it fitted as opposed to go into the property finding out what light bulb is going to the store picking up the light bulb have to go back to the property in order to change the light bulb. So by doing all of this in the setup phase means that you're going to To save time and energy further down the line. Yeah, for sure. I am I adopted some of those processes as part of our sessions and evolved into the point where we take pictures of all the light bulbs for sure and we've got a property setup checklist. So we also use Arthur but we really record all of the setup details like serial numbers model numbers, you know checking to make sure Anything works as part of this checklist, which is quite comprehensive. So it's not just written info is backed up by photographs as well. And then what we do as part of that once the testing is done through we will send that checklist and together with we've got a very basics of health and safety style assessment and we'll send those two bits and before and after pictures of the property from When we took it on straight up to completion to once you put a setup and money will send that over to to the landlord. And as part of our covering email will identify the points obviously that needs to be rectified. Now before we start getting people moved in and at least then it's on record then so that they know from from day one that you know, these are the bits that have been highlighted and if there's an ongoing issue because then a rectifying it then least you've got a point of reference to say Kinda let you know either this needs to be taken care of and as you were not as responsive as we might have liked we took the responsibility of dealing it with ourselves and hence, you know, we need to have a conversation about setting off against the rent or getting reimbursed for work, which you should have done first instance. Is that the right exactly I think getting into that discipline of being able to have a process like that. Will Aid make sure that you don't miss anything. Yeah and from a check-in. Process I think on the first property we had something like 60 things that we identified that we need to do and it's only through trial and error and knitting stuff are like for example plug's not being in the oceans. And then what the customers do is they take toilet roll when they drive out cold so that they can have a wash in the morning. Yeah, and then although the paper goes down the waist and then suddenly got a blocked pipe. So simple little things like that is is crucial. Because the other most important thing is when you take on a property. Yeah, making sure there's in terms of your compliance checks making sure there's a fire risk assessment. Yeah, because God forbid that anything goes wrong. One of the first things that it's going to be looked at is what was your fire risk assessment? And what steps did you take to mitigate fire in household? Yeah, and not anyone can do a fire risk assessment. Yeah, it's highly. He recommended that you get a professional in to do that. We work with a bike with Nick Greene who is a professional nurse. We can put his contact details. Yeah, and you can contact this naked he will help me. The important thing is that because you've got someone competent if something did go wrong. Then the judge is not going to throw the book at you for not having a professionally prepared fire risk assessment. That's one thing that you won't get caught up on. Yeah, and certainly with having an independent Assessment Act before you get your customers in someone like Nick or Nick if you decide to use it. Yeah, we'll spot out things that you have to change and it's always better to get that done right at the get-go than having to do halfway 3. Yeah, so things like testing the Firearms if there is a fire alarm system to install is really important. Yeah, making sure that when you take on the property that you get all the keys. Yeah. Yeah, we've taken their properties before where he missing and then suddenly we're in the Realms of change it locks and which again it's important to give all that up front and not only one set of keys but two sets of genes. Yeah, making sure that you will we put a key box outside the f t so that is the customer loses their key or misplaced. Luckily say can get in the property and our viewers if someone contacts us before 9 o'clock, then someone will come out and let them in if it's after 9:00 o'clock. Then there's a plastic box in the lounge with a sleeping bag and a pillow. It's a night on the sofa for them if they can't get into their room and then some will be over the next morning. It's Grand. So it's just getting all those elements set up. Yeah, so that when you're ready to open your doors to a new customers. Yeah, then it's a nice smooth. Smooth experience because in my experience customers and will always remember the thing that goes wrong and then our first property and I don't know how he managed to do this, but we forgot to order the broad back, right? So we have customers and our Target customers are young professionals and they live and die on their band for Benson. He's yeah totally but we forgot so the one thing that they focused on when we did our survey was The fact that we did not grow back extremely. Yeah, everything else was was perfect. So that went on to the list and but not only did that for them to the list. We also use an app called Wi-Fi sweet spot. So we go around. Okay Petit to identify how strong the signal is and if we then need it's if the signals not that strong then we know we need to go up by boosters and we get all the boosters configure them set up and it's just all those little bits and pieces that will so when they all come together equates to a positive experience for the customers to move into and then once if you set off the relationship of the other beginning with a positive experience, then that slightly to transition through to the rest of Eternity. Yeah, for sure. I think that's a great couple of sweets and tips Wi-Fi sweet spot. I didn't realize is that a nap or is yeah some happiness on Android and iPhone these iPhone and what will you Do is you you get the router turned on? Yeah, and you turn on the app, you'll see need to make sure that you're connected to the router. And then what it does is it measures the signal strength from your phone to the router. So if you've got a particularly long house for example, or if it's for a house over three or four stories. Yeah, then as soon as you start to walk around the house, you'll start to see where the signal starts to drop. Pop out and then that's when you need to go and start booster booster or as in some of the property larger properties that we have. We put in a second router. So one of the front of the house, okay, and one at the back of the house serving that the roots of that we buy are always Netgear, we found that they did the best and the Netgear. I don't know if they make any more than that game night Hall seemed to have What's called the strongest Wi-Fi bubble. So that's the Um the amount of area that that particular router will service to get a really strong powerful router. Yeah and particularly where if you're serving young professionals who might be looking at downloaded movies or games meetings or whatever it might be and if you've got seven or eight people in the house as we have in some of ours then you're going to need to have good strong services in order to satisfy our plan. Yeah if you don't You can bet your bottom dollar that within a week or so. You'll be getting what's happening with the Wi-Fi can't like Drop as our brain freezes or so. It's important. We understand all these elements were well ahead of time. Yeah, I think that goes back to I guess, you know, you mentioned the sort of leading time. It's already good having your checklist. I'm Janae points, but it's about executing those steps in time either. And just before your customers your housemates moving or to like at least shown the time after they moved in for that sort of thing to be executed. Yes, in an Ideal World. We would have everything set up and ready to go before they move. Yeah things like we call them letting pack. So this is all the documentation that the customers will sign when they move in so we have a side of seven or eight step check in process. So We need to make sure all of those all of that documentation is is ready to go with the property address on his name on and once you've got that set up and you start to add parties. It's really quick to amend the documents. It's not rocket science. And if you have this prescribed process that and steps that you go through then you're minimizing any issues for your Yeah, it's a stage and I think also, you know, give me the best opportunity to fill your rooms as quickly as possible. Right and there was a previous episode Jamie mentioned that the first property took you guys six or seven weeks to get ready and you know, I had a similar experience and you know, the second property was reduced drastically. I think it took us a week to get setup. And and the only thing that was outstanding which I haven't quite mastered. Just yet is getting the Broadband set up so that it's ready to go just before the house meets moving because we we generally have a sword to week ish lead in time. Yeah, because we don't commit to our service provider until we've got a deal over the line into completing the paperwork and sign like that that inevitably now leaves us with Bob leaves or five or seven days where you know, how smear start checking in. There won't be any Boba. Yeah, you know as part of that process to sort of manage it we will say look, you know, just to make you aware obviously on the viewing that Broadband is should be set up a week or so after you moved in now if that's going to be a massive issue then one thing that's worked for us in the past is to offer a contribution towards data. Yeah, you know if that's by data bundle or whatever the case may be. But I think that sort of working out your timelines and making sure that you know, you can bleed the as many of the steps as possible before you know, your you've got your first check is massively important because once you've got people in is hard to reorganize and talking about Broadband on one of the properties that we have we took over which was given to us vacant. We had Untold amount. I will find several Broadband out and there's and we had the problem was because the previous occupant had cancelled their contract go out so you can't have a chair contract on one property. So for the Virgin to track them down and to get them to cast possessed, okay, but the version of cut off the service because obviously they've received a termination notice. Yeah, but they haven't actually got the paperwork. Work back from the from the previous owner or operator, which meant that we were we were out of broadband for like 10 days. I think yeah and the amount of complaints that we got from our customers and when we just explaining the business scenario, it didn't really matter because they're paying for a service at the end of the day. Yeah. So have we probably been a bit more switched on and had we started that process a little bit earlier, which is reason why that's now one of the first things that we Figure out and we have a account manager. So if we have any problems, we did contact him and let him sort but yeah, it will it can be a real struggle and when you're getting customers in because you don't have a precise date as to when they do that sometimes is a bit of a balancing trick, but the end of the day it's all about the service. Yes communicating with customers the most. I'm not forgiving yeah, I understand. It's really good. I think before we wrap up. I know we've touched on it a couple of times. I think the compliance aspect in terms of the setup is is massively important, you know, you're running or you're going to be running a HMO. So you mentioned obviously the fire risk assessment, you know, making sure your gas safety certificate is is up to date is on point and make sure your electrical and Is there and also you know stuff like if there's already a service history or you know, there's a fire alarm panel which needs to be installed or has been installed that needs to be tested. Annually. Yeah. Yeah and and you know, make sure that all of your your smoke alarms have been testing you've got certificates then station as well. And that is that goes back to you know part of your your offer. Process, you know what we have in our and off the template is we stipulate all of the compliance requirements that we expect to see on completion. And then we you know, as part of the the onboarding process we then have you know reminders to if we hadn't received all of those on the landlord of the agent to chase because you know, there's as much responsibility on us as the as their went through an operator or the management. Company to make sure that all of your documentation is up to date because if for whatever reason, you know, the cows do come around any to expect you need to help aaden show you need to have all of the compliance documents to hand. So I think that that for me I'm always super mindful of making sure that we have all those documents so it out. Yeah and people missing or what to even my thing with this is complicated but it's not as long as you know what we need to ask for as long as You've got a copy of the paperwork, then it's no more difficult than that. We manage our own households in terms of paperwork and there's and all that type of stuff. It's no different. You just need to know what you're asking for. Ya and making sure that the property owner has that if they don't have it then you organize it and that becomes part of your negotiation as to who's going to pay for that. So it's it's not not that No, it's not. I think obviously the and engine a point a checklist that will provide in the M show description is going to be useful covering those bits off and we'll also sticking there. We've got a think here's a 20 or 25 point and checklist specifically on documentation. So all the stuff, you know that you want to have in your folder for property which is which will no doubt reinforce what's on the engine a point bit but it's something that you'd be able to send out to the agent and say look, We expect to see all of these bits and if there is a reason why they are in place, then we need to get organized or you know, you give us your information that actually, you know, you can get them organized ourselves here and if there's any questions and also you can connect with us via the hom experience Facebook page and ask has all sorts of questions and we can come back and give you some pointers as well. Most perfect. So look Steve. I think we did pretty well without Jamie in this episode's we we do welcome back elects one. Yeah for sure. The next episode is undecided as yet, we're going to leave it as leave you guys in suspense as to what we're going to be talking about but it will certainly be a continuation of the onboarding thing. Just thought about it and it's going to be Furnishing because we've talked about and setting up to shelling cool. So there's going to be Furnishing and choosing your color palettes you choosing the furniture and getting everything ready for our sleeves to move in. So that's something that we will cover off in episode 12. So for now, thank you very much for listening and Appreciate you tuning in and subscribing to the podcast. Make sure you subscribe to the HMO experience YouTube channel as well. And if you want to continue the conversation as Steve said and you can join us on our Facebook page the HMO experience and levers and comments questions suggestions, you know, there's anything specific you want answered and we can either come back to you directly or include them in our hashtag HMO hacks, which should be able to find Twitter Instagram and Facebook and we'll leave all of our and social annuals in the so show description so you can pick up those juicy little Nuggets next Monday. Like I said, we're going to be covering off Furnishing your HMO property. And so if you're interested in that make sure you tune in but now Steve and I are going to say goodbye. So Steve I'll leave you sad EOS and the Earth's distance. We hope you enjoyed this episode of the HMO experience. Don't forget that all of the resources mentioned in each episode will be available on our website www.weg.net moments perience. Doc Co dot u k we regularly update our website with new content to help you along your HMO Journey. So make sure you check out www.va.gov Momo. Koreans don't Co dot U k-- for more details. Also remember to join our online community by liking the HMO experience Facebook page and subscribing to our YouTube channel.
In this episode of the podcast Matt and Steve are by themselves (Jamie has gone walkabout!) and they talk about what you need to do once you’ve secured your first, or next, HMO property. The house might look amazing after any refurbishments that you’ve made, but does everything work? This is an area that many people think is complicated, but it’s not if you are organised and follow these suggestions. KEY TAKEAWAYS   Following a simple process of getting the property ready for your first customers to rent your rooms means you reduce the stress for you, and you give your new customers a great first experience. Your customers will always remember the one thing that doesn’t work after moving in. If there’s no wi-fi or a blown lightbulb in the bathroom that is far from ideal! Using a checklist that reminds you to check everything means it eliminates the easy-to-forget things that can be missed when getting your HMO ready. One of the most important things you need to know is that the property is compliant. This is to keep your customers safe so a fire risk assessment, gas safety check and electrical certification are paramount. An accurate record of all necessary information about the property, and what’s in it, will make your life easier too once it’s rented out. This will help you in future if anything needs to be fixed. Download our checklist it will give you confidence that you haven’t missed anything in the property set up, and help your customers have an amazing experience moving into their new rooms. BEST MOMENTS 'We use a tripartite contract. We don’t want to be in a position where we’ve a contract with a third party who doesn’t even own the property.' 'The benefit of having a checklist is that anyone can follow it.' 'It takes us a week to get a property set up & ready to rent.' ABOUT THE HOSTS Matt Harris - Matt started working for a Mayfair based property investment company before practicing as a property lawyer. In 2013 he swapped law for cleaning and set up The Organised Cleaning Company! In 2016 Matt started MiPropCo Leeds, a buy to let investment company and in 2018 he founded MiRentCo London, a multi-let management business providing co-living accommodation for young professionals in London. Matt is also co-host of PPN St Pancras. Jamie Madill - After an 18 year career in advertising Jamie became a full-time property investor with a property portfolio of single-lets & HMOs and with Steve, they have created a successful Rent2Rent HMO business. Jamie is an international public speaker and co-founder of Progressive Property Network and co-host of PPN St Pancras. Steve Mitchell - Steve had a successful corporate career in finance and risk management before becoming a full-time property investor. He owns a portfolio of single-lets and HMOs. A black belt in Six Sigma, Steve is the project management and systems expert. Steve is also co-host of PPN St Pancras. 