My Magazine Article in YPN

So, if you didn’t already know I was featured in a fricking MAGAZINE! So I thought why not dedicate a whole blog post to my article. Since starting my property journey it has been a dream of mine to be featured in the YPN (Your Property Magazine) magazine and now it has now become my reality!  If you would like to read my article, please see it below: 

22-year-old Evie Stockford began investing in property at the age of 19. Using the rent-to-rent strategy, she has built a portfolio of HMOs and SAs in Oxford — a challenging area for investors due to the high property prices — and now has a turnover of over six figures. Read on to find out more about her story and how she has overcome her own perceived limitations to become a successful businesswoman.

Before property 

I always wanted to own my own business, but I never really knew what I wanted to do. When I was younger, I would put together business plans and present them to my parents, and at 17 I started a clothing line while I was still at college. To be honest, it wasn’t well thought out and I realised it wasn’t my passion, so it didn’t last very long.

I had looked into other options, and liked the idea of BTLs but the thought of saving the capital was daunting. It would have taken a lot of time and hard work, especially at 19 when I wasn’t being paid an amazing salary and my partner and I were saving for our first house at the time.

Although I hadn’t explored property fully, my partner found Paul Preston’s seminar advertised on Facebook. It was free, so we decided to go. On the seminar, I learned about rent-to-rent and it all went from there. Three months later, in April 2018, I got my first deal in April 2018. 

Looking back, it’s weird how it all happened because it was quite out of character for me. It seemed that everything happened by accident but it all fitted together nicely.

Picking a strategy 

Rent-to-rent was an attractive strategy because it didn’t need a lot of capital to begin with. The only initial upfront costs were for deposit and furniture, which wasn’t nearly as much as I’d need for a mortgage deposit. I thought it was a good way to get in, make some good cash flow and to save money, and eventually buy some BTLs. My main goal is to have a large portfolio in Oxford.

I started with rent-to-rent HMOs, because I thought they sounded a little easier than SA, and nowhere near as intimidating. I concentrated on them for the first year, and I then met someone at the Oxford pin who focused on rent-to-rent SA in Oxford. We connected and she gave me the confidence to move forward with SA, which I will forever be grateful for as this is now my favourite strategy. I only wish I had started sooner. 

Growing up in Oxford means that I know the city well. Although I now live in Dorset, my family still live there and I visit regularly. I’m able to do most of the day-to-day management from my phone, but I will do inspections and more of the physical work when I’m in the area. 

My first deal 

My first deal, which was a rent-to-rent HMO, was found via an estate agent. I had no references, no guarantors and no experience, and they thought I would be a huge risk to the landlord. 

As a result, I had to pay six months’ rent upfront as well as the deposit. This was my entire life savings! My partner and I had been saving for a house — I had saved almost everything I had earned since leaving college at 18. 

I probably wouldn’t do it now, but back then I was naive and I also had the courage and determination to succeed. I’m grateful that I did push through and it worked out well. 

My typical property 

For HMOs, I look for properties with between four and six bedrooms, with five or six bedrooms yielding the best profits. While some people love to have more rooms, I am wary of bigger HMOs. I’ve found that people tend not to want to share a house with a lot of other people, so four to six bedrooms is usually a happy medium. 

SA units tend to have less of a structured criteria. I have a few one-beds and the biggest I have is a three-bed. I’d say that two or three-bed properties work best, because you can fit more people in. They tend to appeal to a larger audience and you can usually achieve a higher nightly rate. 

I learned all this by speaking to other people who had done rent-to-rent HMOs and SA. Facebook groups and YouTube were beyond helpful! People were more than happy to share what had worked for them, what mistakes they had made and offered a lot of advice. 

Tenants

For my HMOs, I target young professionals. We have a lot of tenants who work for the NHS, as there are some quite big hospitals in Oxford. There is also a big BMW factory, where a lot of them work too. 

I think I’ve been lucky with my tenants. Although most are older than me, I’ve never seen this as a problem. I try to portray a professional image in the way I come across on emails or speak on the phone, and I think that’s helped to build our relationship. 

Being young has helped on a more personal level as well. While I obviously have a professional side, I’m relatable because I’m close to their age. Tenants feel they can talk to me and that I’m approachable, compared to staff members in a large lettings agency. But I have made sure to maintain boundaries by not being too friendly or becoming someone they think they can manipulate because I’m younger than them. 

I ensured to put that message out there and laid the ground rules from the beginning. From the start of their tenancies, I was clear on how the relationship would work and what they could expect from me and vice versa. Some tenants will try their luck when they first move in, but as long as you react in a professional manner then you can create a good relationship. 

Although I think it’s worked in my favour, I still feel sometimes like I had to prove myself to them! 

Achieving my freedom 

When I started doing rent-to-rent, I was working full time as a financial assistant. All my evenings and weekends were spent on property and building the business. I eventually transitioned to working three days a week, which meant I had two extra days to work on rent-to-rent. In November 2019, I was able to leave my job and I am officially in property full-time. It’s been great! 

I have always wanted to work for myself rather than for somebody else. I was working on property alongside my job, and I knew for certain that I didn’t want to carry on with that job forever. When I achieved my goal of becoming my own boss, it was amazing. I’m expanding and potentially moving into different areas. At the moment, I only have rent-to-rent, but I would like to look at BRR and BTLs. I feel as though I have more options now that I am full time.

I don’t think I’ll ever give up doing rent-to-rent, but I want to diversify so I don’t solely depend on this strategy. Going forward, if a good rent-to-rent opportunity were to arise, I’d definitely consider it, but I don’t want to actively search for these deals as much as I have done. 

Covid 

My HMOs fared well throughout the pandemic, to be honest. We had a few tenants who were furloughed or made redundant and needed a payment plan to pay their rent, but it’s not been a huge problem. 

SA, however, was a bit more tricky. I usually focus on holiday lets, but I had to diversify and put in contractors and other people who needed short-term accommodation, like people between house moves. While I was still able to cover the costs, it meant that I wasn’t able to make as much profit as I’d like. I’m very much looking forward to going back to normal! 

Being young and in property 

I’ve always felt like I was a bit different, in that unlike many other people my age, I haven’t always wanted to go out. But property can be lonely, and sometimes I feel as if I’m missing out. However I have achieved everything I’ve ever wanted. 

I’ve met other property people at networking meetings, and as a result, most of my friends are older than me. But we have the same interests and passions so have a lot in common. 

Challenges 

Being young, I have felt that some people don’t take me seriously. I’ve walked into meetings with landlords and estate agents who don’t think that I own my company. They didn’t understand what I wanted to do and some even laughed at me. I have to explain that I do have experience and will always provide examples of the properties I manage. It’s been a big obstacle and I’ve found it quite difficult to prove myself in that way. 

I used to struggle with confidence, and was quite shy before I started my business. I’m a completely different person today to who I was two years ago though. Taking one thing at a time and overcoming the small hurdles — like the first time I ever met a landlord, or the first time I had to explain what I wanted to do — has helped me overcome my shyness. 

When I met a landlord for the first time, I wouldn’t say I played it up, but I did pretend to be more confident than I was. Thankfully I already had one property under my belt, but I honed in on the things I had learned on Paul Preston’s seminar and on YouTube videos. I had really researched the HMO licensing that Oxford required, so that knowledge was helpful too.

Case Study 1: Hobson Road 

This was my first rent-to-rent SA. It was an interesting and stressful experience, but I put it down to the fact that it was my first. I had done a lot of research about SA and met a lot of people who were also doing it, so I felt as though I knew what I was doing. But putting theory into practice is intimidating. 

I took over the unfurnished three-bed property in the summer of 2019. Not only was it my first SA, but it was the first time I’d needed to furnish somewhere. Previously, my rent-to-rent HMOs were already furnished, so I’d only had to introduce small things like cushions and flowers. It was exciting to put my own stamp on it! 

I ended up trying to sort out all the furniture within one week, and it got quite messy. I probably should have planned it a little better. It took a further two weeks to complete, and luckily, the landlord agreed to a rent-free period for that time, which took away a bit of the pressure. 

In total, I spent £10,000 on furniture. I really didn’t need to do that at all, but I went a bit overboard because I was excited. I enjoyed the furnishing process, as I’ve always been quite interested in interiors. Also, arranging photoshoots and preparing the Airbnb adverts were new to me, and I wanted the property to look its best. It’s still my favourite property. 

Lessons: As I’ve secured more SA units, I’ve learned to plan the timings of deliveries better. If something is getting delivered, I’ll make sure that I’m there. I also didn’t need to spend as much as I did on furniture. While my other units may not look as nice, they perform just as well. But it was a learning curve and it’s now something I know I don’t need to do. 

Case Study 2: The Silver Greys 

This is a five-bed HMO in Oxford near to one of the main hospitals. As you can see from the numbers, the rent to the landlord is really high. 

Rent is high in Oxford anyway, but this one is of a very good standard and the landlord could easily get a much higher rent than what I’m paying. I couldn’t negotiate it down any further. 

The property was newly refurbished before I took it on, and the rooms are beautiful so getting tenants was easy. I started advertising a week before I picked up the keys, and within that time I had five tenants who had paid deposits and were waiting to move in.

Compared to what else is on the market in Oxford, this property really stood out. And because it was newly refurbished, I probably won’t have to spend anything on the property for the duration of my tenancy. The rooms rented out so easily that there’s hardly any management at all. It works well and it earns around £650 per month. Although it’s not the biggest earner, it’s a very steady income.

Lessons: I probably could have found better deals with cheaper rents, but I would have had to put a lot more effort and work into them. My return on the time I put into the property wouldn’t be so great. Whereas for this property, I do the bare minimum and I’m still getting a good return. It’s a balance I’m willing to compromise on. 

Learnings and advice

The biggest lesson I had to learn was to be confident, and that I could do anything I put my mind to. I’m a strong believer in thinking that if you can do it, then you will do it. And of course, having the determination to make sure you follow that through. 

To anyone who is just starting out — just keep going. Do all the research you can, and utilise YouTube and Facebook by asking as many questions as you can. Don’t be afraid of taking advantage of someone else’s knowledge; they know what they’re doing because they’ve done it before. There’s no harm in asking. 

Finally, keep putting in the time and effort if you want to be successful. Work on it over the weekends or in the evenings when you might be tired. Prioritising your business and what you want may not be easy, but it’ll be worth it in the end.

Looking forwards

While it obviously all depends on the coronavirus situation, this year I hope to expand on the rent-to-rent SA side of the business. I have also met a landlord who is looking to give me a few HMOs to manage, so that will be exciting. 

Plus, after saving for two years, I finally have enough capital for a BRR or a BTL. I’ve been speaking to a lot of mortgage advisors and brokers, and I’m starting to explore my options and understand what I can get for the amount I have saved. I’m just seeing what’s out there!

Of course, I still need to do a lot more research, and I’ve been doing a lot of reading about it. I would like to meet people who have been there and done it so I can speak to them about their experiences, and might even see if there are any courses. I’m excited about starting to explore it and hopefully, I’ll have one by the end of the year.