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Fibre is not just good for the body

July 29th, 2010

Fibre optic lines have, over the last decade or so, taken over and completely transformed the long distance phone industry. Optical fibres are also a massive part of making broadband available, not just in the United Kingdom, but around the world. When fibre optic lines replace copper for long distance calls and Internet traffic, it can dramatically lower the cost. Many people with fibre optic broadband will have used it to buy cheap landlord insurance without the need to speak to anyone, and in a high tech world landlords often get enquiries from prospective tenants on the availability of broadband in the property to be rented.

To fully understand how a fibre optic cable works, just imagine an extremely long straw or even flexible plastic pipe. Now, imagine that the pipe that is quite a few miles long. Imagine that the inside of the pipe has been coated with a perfect mirror. Imagine yourself looking into one end of the flexible plastic pipe. While several miles away at the other end of the pipe someone turns on a torch and shines it into the pipe. Because the interior of the pipe is a perfect mirror, the light from the torch will reflect off the sides of the pipe, this will happen even if the pipe curves and twists and the light will be visible at the other end. If the person at the other end were to turn the torch on and off like a Morse code signal, it would be possible for two people to communicate through the pipe. That is the essence of a fibre optic cable.

It would be possible to make cable out of a mirrored tube, but the result would be bulky and it would also be very difficult to coat the inside of the tube with a perfect mirror. Because of this, a real fibre optic cable is made out of glass. The glass it self is incredibly pure and even though it is several miles long, light can still make it through. The glass is then drawn into a very thin strand, so thin in fact that it is similar to the thickness of a human hair. This thin glass strand is then coated in two layers of plastic. By coating the glass in plastic, it gives the equivalent of a mirror around the thin glass strand. This mirror will create a total internal reflection, just like the perfect mirror coating on the inside of a tube has done. Today’s fibre optic cables can carry a signal quite some distance, maybe 60 miles. If it is a long distance line, there will be some kind of equipment hut every 40 to 50 miles. This hut will contain equipment that will pick up and then re-transmit the signal down the next segment to the next hut at full strength.

Tags: landlord advice, Landlord Insurance
Posted in Advice, Insurance Guides, Landlords Insurance | No Comments »

Low interest rates here to stay?

July 28th, 2010

With the latest predictions of low interest rates being with us for years to come, landlords will be wondering what exactly the future holds for the residential letting sector.

Ernst and Young, a leading UK economist group and sole sponsors of the Independent Treasury Economic Model (ITEM) club, are predicting the current Bank Rate of 0.5% will be staying with us until 2014.  The prediction is based on the present government holding firm on its commitment to spending cuts of around £40 billion and the loss of jobs that will go with it.

Although inflation is still way above the Government targets of 2% and the end of year increase in VAT threatening to push it higher still, the group feel the spending cuts will then kick in and push inflation closer to 2%. A relief then for the Governor of the Bank of England who will then be able to stop writing letters to the Chancellor of the Exchequer explaining exactly why inflation is above government plans. Not for long though, as interest rates will then have to stay low to stop the nation slipping into deflation.

With interest rates staying low and new borrowing rates remaining high, one can only anticipate home-owners without a big deposit will stay exactly where they are. Several mortgage brokers are reporting a good increase in loan enquiries but from personal experience, a lot of these enquiries will fall by the wayside when prospective home-buyers realise the interest rate on a new loan will be much higher, compared to the tracker mortgages they already have. This perhaps is confirmed by reports showing a fall in prospective buyers registering with agencies.

The result could well be house prices start to slide again; already one report is showing prices have fallen for the first time in over 12 months, Hometrack, the property data company, reported a 0.1% fall in June. If that is the case then the buoyant rental market could be here for some time yet, giving ambitious landlords, with an eye for a bargain, more reason to spend time looking for cheap landlord insurance to cover new properties they are willing to invest in.

Tags: Interest rates, Landlord Insurance, landlords, rental market, tenants
Posted in Advice, Interest rates, Landlords Insurance, Rent Guarantee Insurance | No Comments »

Appearances are everything

July 22nd, 2010

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A good landlord can be fairly described as one who runs a profitable business and at the same time provides tenants with accommodation that is comfortable, attractive to live in and look at and makes them feel it is their own home. After all a happy tenant is one who will stick around which means that a landlord is less likely to experience void periods and so is getting the maximum rental potential out of his property.

A good landlord can also optimise his profits by undertaking jobs himself rather than paying out for tradesman. One such job most people can turn their hands to is painting the outside of the house.

Painting the outside of the property has obvious benefits, it is protecting the property from weather damage, therefore keeping the residual value of the property at its optimum and is pleasing on the eye to an incumbent tenant or makes a prospective tenant more likely to select the property as their future home. Certainly most people prefer their home to have “kerb appeal”.

Preparation and the correct tools for the job are a must, as is tackling the job using the appropriate health and safety issues. So first of all arrange your health and safety equipment, this should include safety goggles to protect the eyes from paint and cleansing fluids, gloves to protect the hands, surgical gloves are a good option, safety footwear and overalls to protect your clothes.

The tools for the job should include; ladders, stepladders, power washer, cover sheets, paint brushes, paint roller with extension pole, white spirit, bleach based cleanser, scraper, filler and of course your paint of choice. Be sure to choose an exterior paint, they are pricier but must be used if the job is to be carried out correctly.

First of all lay your cover sheets around the walls of the property and remove any external debris such as bird droppings, old globules of paint etc… from the walls with the scraper. Next using the roller to apply a coat of bleach based cleanser to the walls and leave it on to do its work. Time for the power washer now, give the walls a good wash down and be prepared for flakes of old paint to go everywhere, and remember there could be some of the cleanser on them so wear your gloves when tidying the mess.

It’s now time to go round the exterior searching out cracks in the wall and old paintwork. Make sure to fill all of them well and take off the excess. It is a good idea to apply a coating of paint using a brush around the windows, doors and the cracks you have filled in.

You are now ready to start the main job. Start from the eaves of the house and work down always taking your time as well as taking care. Don’t try and rush the job especially when using the ladder, it is much safer to come down and move the ladder rather than find yourself overstretching.

Tags: Landlord Insurance
Posted in Advice, Best Practice Guides for Landlords, Landlords Insurance | No Comments »

Landlords swamped with information

July 21st, 2010

With each survey, report or government announcement that falls into the media domain, landlords must wonder exactly what the future holds.

There are so many conflicting reports covering the many aspects of property in the residential sector, that landlords could hardly be blamed for ignoring a lot of them and just sticking to ploughing their lonely furrow as they have done in the past.

The demise of hips brought more properties onto the market, which led to organisations such as the Royal Institute of Chartered Surveyors (RICS) suggesting that the influx of properties was not being matched by buyers; ergo the value of properties would fall. Anathema to all landlords, who put great stock on the value of their stock.

Then Letting Agents produce reports suggesting that many landlords will see the fall in property prices as a good time to add to their portfolio, and so it is, all being equal. Unfortunately at the same time, accountants and tax experts were pointing to the Conservative and Liberal Democrats manifesto and forecasting Capital Gains Tax (CGT) could well rocket to 40% in the emergency budget. Enough to make people in the letting business cancel their landlord insurance policies and sell up before Mr Cameron and his friends gobbled up their property value profit. It didn’t happen!

Housing benefit cuts did! Another disaster in the making, especially for landlords in the South East where it is estimated 170000 tenants will be affected by the £400 a week limit which in turn could force landlords into reducing rents to hang onto their clients.

But hold on, Countrywide letting agents announce they are being swamped by tenants wanting to get hold of accommodation which is leading to landlords being able to squeeze a little more rent out of their properties.

All very confusing to say the least. Perhaps the best policy is to carry on regardless. It seems to have worked for one landlady at least. Jane James, who has overcome many personal tragedies in her life, was recently crowned the National Landlords Association Wales Property Woman of 2010. Some title for some woman, Ms James though put down her success to recognising the value of her tenants.

She bases her business on the motto of “Everyone deserves a chance”. In her case she has taken a chance on low income families and gone the extra mile in helping them, which in return has helped her. The perfect landlord/tenant relationship.

Tags: Advice for Landlords, landlord advice, Landlords Insurance
Posted in Advice, Best Practice Guides for Landlords, Help, Landlords Insurance | No Comments »

A trade that is still sweeping the nation

July 15th, 2010

It is fair to say that if a person was asked to describe a chimney sweep, chances are the picture they conjure would be that of a soot covered child working in the Industrial Revolution, or the dancing chimney sweeps from Mary Poppins. Chimney sweeping is an ancient profession. There are records of people earning a living by cleaning chimneys as far back as the 16th century. The occupation of chimney sweep is thought to be one of the oldest in the world because chimneys have been around for a long time. It is only in the last two hundred years that the chimney has in fact been big enough to hold a human. Before that, in the 15th and 16th centuries, Western Europe constructed houses with rooflines with crow-stepped gables which allowed a chimney sweep convenient access to the top of the chimney.

Today we live in a world which is much more modern and we have luxuries such as central heating which has more or less replaced the coal and wood fires used to heat homes in the past. Because of this, it is easy to assume that a chimney sweep would no longer exist. However this assumption would be way off the mark. They may not be as readily available as a plumber or electrician, but they are available and they are modern professional tradesmen. The number of households turning to wood and coal to heat the home is growing, as old fashioned fireplaces are becoming increasingly sought after, and with good reason. If a fireplace has been well restored it can add great character to a room, and, if it is well looked after, it can also be a great source of heat during the cold British winter months.  The benefits of having a real wood or coal fire in a home has to be balanced out by giving up some time and money to make sure that the fireplace works both safely and efficiently. If a property is owned by a landlord, they will happily pay to have a chimney swept as they will not want to make a claim on the landlord insurance if a problem develops in the chimney. It should be done during the yearly gas appliance check.

There is actually a National Association of Chimney Sweeps and they take the job very seriously, they pledge to help in the prevention of chimney fires and help to cut down the risk of dangerous fume emissions from blocked heating appliances, chimneys and flu-ways and all members of NACS are covered by Public Liability Insurance. A good chimney sweep will have completed all of the necessary training and will be experienced enough to notice problems which could lead to a fire in the chimney and he/she will be able to make homeowners aware of any problems. They can also inspect the chimney for potential problems from the roof such as signs of freeze thaw weathering. As with everything else, if a problem is picked up early, it will probably be easier and also much cheaper to fix it. Although it may be possible to attempt the job yourself, it is much more convenient to hire a professional chimney sweep to take what will be a very time consuming, draining and a very messy job off your hands. Having a professional do the job will also bring the peace of mind of knowing that any potential dangerous problems have not been overlooked. Chimney sweeps normally advise that chimneys should be cleaned after a long period of disuse i.e. over the summer. Some also advise that a chimney should be cleaned before the end of a heating season to make sure that the chimney is clear of all animal nests and prepared for the subsequent idle period.  If a chimney is used a lot, it might be necessary to sweep it more often than once a year. A professional chimney sweep will be able to advise the best cleaning schedule for a chimney.

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Stay within the law

July 7th, 2010

Once again this week, landlords hit the headlines for all the wrong reasons. A landlord from Staffordshire found himself in court and handed down a jail sentence for threatening a tenant who was in arrears with his rent. The rogue landlord was carrying a knife and so left the judge with little option but to jail him. It is all so unnecessary!

Any prospective residential landlord would be well advised to get at least a basic understanding of any laws that have some bearing on landlord/tenant relations.

The best way to deal with a bad tenant is to stop him being a tenant in the first place. A landlord is quite entitled to do searches on possible tenants to help him determine if the applicant is desirable. It is always best to be upfront and honest when turning a tenant down, always give a valid reason (there must be one or else you would be turning good business down) but bear in mind that it is illegal to turn down people because of their race, religion, nationality, gender or physical impediment.

When you have finally decided upon a tenant then it is common practice to ask for a bond or security deposit. It is usually, but not always, a figure approximately equivalent to one month’s rent. Once again this gives some protection from having picked the tenant from hell but you must remember that when the tenant leaves there must be a valid reason for deducting money from the bond. Good reasons would be damage caused to the property by the tenant, rent arrears, and also property expenses. Whatever the reason for withholding part of the security deposit, the tenant should get a written notification that itemises each deduction. Of course a good Landlord Insurance Policy is worth its weight in gold if by chance you do get that nightmare tenant.

So you have been unlucky and have actually got a really bad tenant. Time to show them the door then, but make sure it is done within the confines of the law. It is for sure the tenant will have to be given written notice and also given the chance to mend their ways.  Cutting off the heating and water supplies will be another no no. The best course of action is to get legal advice and it is possible that this may be included in your landlord insurance policy so check that out first.

Tags: Landlord Insurance, property law
Posted in Best Practice Guides for Landlords, Insurance Guides, Landlords Insurance | No Comments »

Resealing the bath

July 2nd, 2010

A changeover of tenant often gives a landlord chance to do the little jobs that cannot be described as urgent but are not only pleasing on the eye but also contribute to keeping the property in a good condition.

A good example of this is resealing the sanitary ware in the bathroom. With a little patience and skill this is one of those jobs that can be done in house. It doesn’t take long and can save a fair amount of money when you consider the call out fees charged by a plumber.

Resealing the bath is the most time consuming and tricky of the sanitary ware to tackle, so should be done first.

If possible, this is a job to be done on a warm dry day, this will allow the bathroom to air and help the sealant you are going to use, chance to dry properly after the application. It is always advisable to spend that little bit extra on the sealant, using a cheap one could mean you are doing the same job inside 12 months, buy an anti mould type if possible.

Time to start the job, be sure to wear protective clothing as you first of all strip away what remains of the old sealant, use a Stanley knife and screwdriver to remove every last vestige of the old stuff, the more removed the better the new sealant will work. Work carefully a screwdriver can badly damage a bath which would mean a claim on your landlord insurance and possibly negate the savings made on doing the job yourself.

Now fill the bath to approximately half way, this ensures the gap between the bath and the wall is more or less what it will be when the bath is in use. Remember that the narrower the gap between bath and wall, the less sealant you have to use. Working with a narrow gap also means the line of sealant will be thinner which should mean, it is easier on the eye, less messy and will have a lesser drying time.

Always allow at least 24 hours for the sealant to dry before using the bath or importantly a shower over the bath. Using the same technique and the same drying times reseal the toilet and sink as well.

Tags: landlord advice, Landlords Insurance
Posted in Landlords Insurance | No Comments »

Lock fitting can keep profits safe

May 27th, 2010

Without doubt today’s landlord should be approaching his business in as professional a manner as possible. The recent UPAD webinar on landlords identified a professional approach as key to maximising the profit a landlord can make out of his property, this in an industry that can readily be said to have a high degree of “amateurs”. Many landlords just let out one property and often, as the webinar identified, view this as an alternative pension.

Nevertheless being professional enough to identify areas where one can save money is just as vital to the single property landlord as it is to the housing association, perhaps even more so, he needs to search out cheap landlord insurance, he needs to compare marketing costs with different agencies and he also needs to recognise that turning his own hands to certain skills will save him money time after time.

A perfect example of this is lock fitting, retrieving keys from ex-tenants is an occupational nightmare for Landlords and the cost of an emergency locksmith will throw any budget off course. Fitting a lock is not difficult and will without doubt be a skill that most landlords will get the chance to practise.

There are two basic types of lock, a Mortise lock and a Cylinder Rim Lock. To fit a Mortise lock scribe a line centrally on the door with a marking  gauge and use the lock body as a template to mark the top and bottom of the mortise. Choose a drill bit that matches the lock body thickness and drill out the majority of the waste.

Square up the edges of the mortise with a bevel-edged chisel until the lock fits smugly in the slot. Mark around the edge of the faceplate with a knife, then chop a series of shallow cuts across the waste. Pare out the recess until the faceplate is flush with the edge of the door.

Hold the lock against the face of the door and mark the centre of the keyhole with a bradawl. Clamp a block of scrap timber to the other side of the door over the keyhole position and drill right through on the centre mark; the block prevents the drill bit splintering the face of the door as it bursts through on the other side. Cut out the keyhole slot on both sides with a pad saw.

Screw the lock into its recess, check its operation; screw on the coverplate and then the escutcheons (an item of door furniture that surrounds a keyhole or lock cylinder) over each side of the hole. With the door closed, operate the bolt; it may incorporate a marking device to gauge the position of the striking plate on the door frame. If it doesn’t have a marking device, shoot the bolt fully open, push the door to, and draw round the bolt on the face of the frame. Mark out and cut the mortise and recess for the striking plate.

To fit a Cylinder Rim lock, tape the template provided with the lock, to the door and mark the drill holes to accept the cylinder. (They vary in size between models). Pass the cylinder into the hole from the outside and connect it to the mounting plate on the inside with machine screws. Drill and insert the woodscrews to hold the plate to the door. Check the required length of the connecting bar, which projects through the plate and, if necessary, cut it to the correct size with a hacksaw. Mark and cut the recess in the door edge for the lock, and attach it to the door and mounting plate with screws. Mark the position of the lock on the frame and use the template to drill for staple fixing screws or stud. Hold the staple against the frame to mark its recess. Chop and pare out the recess then screw on the staple.

Tags: home security, Landlord Insurance, locks
Posted in Best Practice Guides for Landlords, Landlords Insurance | No Comments »

Buy to let still a good option

May 18th, 2010

With the Bank of England keeping the interest rates on 0.5% for the 14th consecutive month the status quo in the mortgage business seems set to continue.

So with the immediate future still promising to prove very difficult for the first time buyer to get onto the property ladder, without which property sales will stagnate, the opportunities in the letting sector of the housing market appear to be as attractive as ever.

The buy to let mortgage from its inception in the mid 1990’s has really opened up the rental business to a new type of Landlord, the sort of person who is looking for  a single property or maybe a couple that can provide a very tangible means of providing a pension for later life. Buy to let mortgages are somewhat different to residential mortgages with the qualifying criteria usually being the amount of rental income the property can generate as opposed to the proof of salary required from a residential mortgage. It is not unusual for a lender to require up to 25% more than the rental income per month to cover periods when the property may lie vacant. There are however, plenty of choices of mortgages available, fixed rate, tracker, discounts and flexible rate are all now offered in the buy to let market just as they are in the residential sector. One difference being that the services of a mortgage broker will be usually required as the High Street Banks don’t always have the best choice.

The opportunities available in the rental business have also been widely advertised to the public at large by a large number of TV programmes such as Property Ladder, House Auction and Homes under the Hammer which give the would be landlord tips on how to buy property at an auction, how to cost a project, the savings to be made on DIY and the benefits of getting good, cheap landlord insurance. With the demand for accommodation in the private rental sector  being fuelled by the dramatic increase in students particularly those attending universities and also the integration of East European countries into the EC creating a large increase in immigration the prospects for the buy to let landlord in the short term at least look good.

Tags: Property insurance, Property market
Posted in Landlords Insurance | No Comments »

Getting a fridge freezer for your rental property

May 11th, 2010

As any landlord will know, there is always a thin line to tread between profit and fitting a rental property out well enough to attract the type of clientele you are looking for. Always be on the look out for a good deal, whether it be cheap landlord insurance that fits your needs or replacing white goods that not only look good but do the job . The old fridge freezer in one of my properties died quite suddenly after some 15+ years of service so I had to find a new one quickly. I did a little research and plumped for a Beko CDA543 Frost Free as a replacement. It came in at £320, which included delivery and turned up at the apartment within 3 days which for an online store is quite good.

With a rental propery you’ll want to consider more than just the price - although this particualry product wasn’t the cheapest product available, it keeping with the rest of the kitchen for the tidy apartment it was needed for. The space available was only 60cm wide so it fitted well being 54.5 cm wide and makes efficient use of the space. The tenant was keen to have plenty of freezer space so four freezer drawers made him more than happy. Be very wary of trying to economise by providing a fridge with an ice-drawer only, as few tenents want to buy their own white goods, and thus expect all their basic requirements be already catered for. A further consideration is maintenence - you can’t guarantee that a tenent will look after your facilities well, and thus would be wise to install goods that self-maintain easier - the frost free feature of this product was particulary useful.

The fridge has 4 good sized glass shelves so there is plenty of room for cool air to circulate around your food.

There is a full width salad drawer at the bottom, which is ideal for storing items like rhubarb and leeks without having to cut them down.  In some models this drawer can be difficult to get out because of the door shelves but Beko have designed it with rounded rear corners so you can slide it out at an angle - easy.  There is ample door storage too including an egg tray.

Overall I am very pleased with my purchase and it is a rated as an added bonus. As with any rental property, landlord insurance should be a consideration to protect your investement.

Posted in Uncategorized | No Comments »

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