PropertyQuoteDirect – Landlords & Buy to Let Insurance Blog

Energy Efficiency

February 22nd, 2012

With the winter almost entirely behind us (fingers crossed) as we move into the latter stage of February many people may be tightening their belts for the next few months after receiving very high energy bills as a result of the very cold, and rather arctic, weather we have had over the past couple of months.

However, it’s still not that warm and so heating will have to be a necessity in many cases in order to keep warm and comfortable.

Bill Paying

Furthermore, if you’re a landlord that usually covers the cost of your tenants’ energy bills then you could be in for a bit of a surprise upon receiving the bill.

Many landlords however do leave their tenants to take care of the energy bills themselves. This can be simpler a lot of the time as the tenants are then left to their own devices in order to budget correctly to cover their bills.

On the other hand, it can be a big advantage to a landlord to include the cost of all the bills within the monthly rent. This way the tenant knows what they’re paying each month without having to worry about fluctuations in bills.

Non Payments

Also, if you let to students, it is almost one hundred per cent simpler to include all the bills within the rental price as students, one may find, will fall behind with bill payments which at the end of the day will become a very stressful situation for the landlord.

If you manage the bills then you can set a monthly allowance for your tenants. It would be a good idea to monitor whether your tenants are being fair and reasonable in what they use as well.

Monitoring Appliances

It would also be worth looking at the appliances within the property in order to analyse if they are energy efficient, and more importantly, that they are working properly and without fault. If you discover that a particular appliance is not working properly, then it may be possible to claim for a repair on your landlord insurance.

Hopefully, with the weather warming up, energy bills will now begin to drop each month, however it is still vital to check that your property is efficient as this will be beneficial for the environment, the tenants, and you as a landlord.

Tags: Bills, energy, energy efficiency, Landlord Insurance, Paying Bills
Posted in Advice, Landlord Insurance | No Comments »

Olympic Warning for London Landlords

February 20th, 2012

There has been a lot of publicity and speculation surrounding the idea that there will be a very high number of landlords cashing in during the Olympics, however, they must be aware that it is illegal to let a London property for less than 90 Days without the correct permission.

Property118 have recently blogged about the issue and I thought it was certainly worth reiterating as we have ourselves, on this very blog, discussed the potential for landlords and property owners in London during the summer months.

The reason why I thought today was a good time to raise the issue of the Olympic landlords is, simply, because it is quite a beautiful day outside, and it led to me thinking about the upcoming summer months, which will undoubtedly come round quickly. Before we know it Olympic fever will have taken grip on London!

So, what should landlords be aware of?

Landlords will need to be aware of this little gem:

Section 25 of the Greater London Council (General Powers) Act 1973 provides (as amended by Section 4 of the Greater London Council (General Powers) Act 1983):

- For the purposes of Section 22 (1) of the Act of 1971, the use as temporary sleeping accommodation of any residential premises in Greater London involves a material change of use of the premises and of each part thereof which is so used.

Ensure You’re Legal

So that will mean that if a property is used as sleeping accommodation and occupied for less than a consecutive 90 days and which is conducted through the exchange of money or money’s worth, then it will need to be done with the correct permission from councils. Property owners hoping to make a fortune during the Olympics will have to make sure that they not only have the relevant landlord insurance cover, but that they also seek permission to let properties for a period of less than 90 days.

The councils that have already issued warnings to landlords comprise of Southwark, Tower Hamlets, Islington, Kensington and Chelsea, Westminster and Camden. Furthermore, in some cases landlords may receive fines of up to £20,000 if they were thought to be repeat offenders by the authorities in charge.

So to ensure that you do not face the wrath of your local council, make sure you have the correct permission to let a property for a short amount of time.

If you are a concerned London landlord then it may be worth contacting your local council in order to discuss your options during the Olympics.

Tags: Landlord Insurance Cover, London 2012, Olympic Games, Olympic Tenants
Posted in Landlord Insurance, Olympic Letting | No Comments »

Ever Considered a Lodger?

February 17th, 2012

I’m sure none of us need reminding that we are still battling through financial turmoil, however, as a direct result of the economic instability, it seems that there has been a growing trend recently of more and more property owners taking in lodgers in order to make a bit of spare cash.

Can I make money from it?

A lodger, on paper, seems like a fantastic idea as it is possible to make a nice little profit provided you have a spare room to accommodate them of course. Furthermore, the cost of taking in a lodger is significantly lower than the cost of renting out an entire property. When taking on a lodger, you obviously don’t have the hassle of having to maintain an entirely separate property because the lodger will live in the house you already maintain!

A friend of mine has recently taken in a lodger and she commented: “It was a pretty easy decision and they’ve proved to be beneficial both financially and socially.”

How do I find a lodger?

There are a whole different range of options available to you when searching for a lodger. Most letting agents and websites will be able to advertise your room. For example, easyroommate.com might be a good place to start as you’ll often find individuals looking to rent a single room during the week; just somewhere they can lay their head at night. Furthermore, you may find that family friends or even relatives would be willing to become a lodger in your house; it might be worth letting people know that you are after a lodger!

Also, you can use social media as an alternative way to advertise a room vacancy. You’ll struggle to find anyone who isn’t on Facebook or Twitter these days!

Are there any risks?

By taking on a lodger you are potentially giving a complete stranger access to your private home. So it will be important to have a screening process in place before accepting a particular person. You need to know you can trust your lodger at all times! It will also be important to make sure you actually get on with your new lodger. If there is a personality clash then it will be an uncomfortable and tense situation for all concerned.

You will also need to let your property insurance provider know that you have taken on a lodger. It’s an obligation that you must fulfil as they will need to be aware of how many people live at the property. Your premium may also be adjusted.

It will also be important to make sure you price your room accurately. If you are serious about taking on a lodger then it will be worth scouting out the local competition. Look around on websites to see what other prices people are charging per room, and price your room accordingly. At a difficult financial time, taking on a lodger could be one of the wisest things you do, as long as you take care of all the little details correctly!

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

We All Love a Good Party

February 15th, 2012

We all love a good party, right? A great chance to meet new people and have a laugh and a catch up with those you already…unless you’re the landlord of the property at which the party is being held.

Damages from parties can be quite severe at times and it will be important to ensure that such damages do not befall your property.

Tenants That Love a Party

It may be quite an obvious point but students love a good house party. We’ve all been there in our student days, where everyone crams into a single room to have a drink and a dance which instantly puts a property at risk. Even simple things like alcohol spilling onto carpets and rugs can cause damage that will cost a substantial amount to repair.

Furthermore, it’s not just students that can cause damage, even mature adults can get a bit over zealous at parties as a result of a little too much to drink.

Anyhow, people will always want to have house parties, and there’s no reason why they shouldn’t, but what should you look out for as a landlord?

Damages

Now of course we always hear horror stories about broken windows, broken doors and even structural damage, and whilst breaks are not uncommon, it’s slightly simpler problems that are certain to occur. Such as, red wine being spilt on carpets (we all know about the white wine trick but red wine can be trouble to clean!) and cigarette ash falling onto carpets too.

Small accidents do of course happen, and the worry should only come when it seems that tenants are being disrespectful to both you and your property. In this case then it may be worth claiming on a landlord insurance policy in order to cover the costs.

Sometimes you may also find that neighbours begin to complain with regard to antisocial behaviour, which is never good. This would only be likely if your tenants had a lot of house parties in a short space of time. This is a rare situation however, and with a careful screening process, you should be able to see which tenants would be most likely to cause such disruption.

Tags: Damages, House Parties, Landlord Insurance, tenants
Posted in Landlord Insurance | No Comments »

Building a Portfolio

February 13th, 2012

Today we’re thinking about property investment and the possibility of building a property portfolio. If you’re already a landlord then this may not be too far from your mind either as it is a dream of many to finish the day job and become a full time property investor living off the profit from your property portfolio.
However, the reality of this happening is certainly difficult, but not impossible!

Risks?

Of course with an everyday job you will have a steady income. Every month you will know how much money is coming in, and roughly how much is going out, which provides financial stability. If you decide that this is no longer for you, then you can be presented with a big challenge, a risky industry and financial difficulties, at least in the short term.

Generating Income

In terms of generating some profit, it is important to remember that you need to make an excess on your rental income above your mortgage repayments and costs. It is always important however to bear in mind the long term goals! A property portfolio is something you can hit the jackpot on in the long run rather than the short!

Further risks attached to property investment are credit risks. It’s important to have a decent amount of financial backing behind you along with strong credit ratings, however if you have been paying off your mortgage steadily then this is likely.

Reducing Costs

When building a property portfolio it is also important to bear in mind that the larger the portfolio gets, the cheaper certain things will become. For example, agency fees, property insurance, maintenance and management costs will all begin to reduce as your portfolio grows as the more work you offer to suppliers, the less they should charge. It is a similar idea to “buying in bulk”. This is something that a property investor can begin to take advantage of in order to make as many savings as possible!

Property investment can be tricky, but can ultimately lead to large profits in the long term. It’s always important to keep your eye on the goal, and make careful decisions every step of the way.

Tags: Property insurance, Property Investments, Property Portfolio, rental investments
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Rogue Landlords Must be Stopped

February 10th, 2012

You may have noticed today in the news that rogue landlords are again the topic of debate. Back in November, the government made a number of promises in their Housing Strategy in order to clamp down on rogue landlords and toughen sentencing for serial rogue landlords.

And now, homelessness charity, Shelter, are urging the government, and in particular the Housing Minister Grant Shapps, to stick to their proposed plans and promises as a huge and worrying number of rogue landlords continue to prosper at the expense of others as a result of the high demand for rental accommodation.

Steps To Take

Shelter has outlined that they want to see the following steps implemented for those landlords that break the law and abuse their tenants:

1) Sentencing must be tougher on rogue landlords – the maximum penalty for ignoring a court order to improve the conditions of the home must be raised from £5,000 to £20,000.

2) There needs to be a rogue landlord prosecution fund – for earmarking money to enable councils to toughen up on criminal landlords in their area.

3) Further protection for tenants – safeguarding tenants from being evicted when complaining about their landlord.

4) An online database of convicted landlords.

5) A rogue landlord summit convened by the Housing Minister in order to create a clear action plan to protect tenants.

Renting is Now the Only Choice for Many

Furthermore, Shelter’s Chief Executive, Campbell Robb, has been commenting on the situation: “Renting is no longer simply a stop gap for young people before they get on the housing ladder. More and more families are bringing up children in privately rented homes, and many have to take a chance on the first place they can afford.”

He added that such “high demand is a golden opportunity for rogue landlords who are exploiting the desperation of people looking for a home, and leaving them trapped in houses that fail to meet basic living standards and, in some cases, put lives at risk.”

This is clearly something that needs to be prevented by the government. Rogue landlords may even be operating without any landlord insurance and the only way, it seems, to put a stop to rogue landlords getting away with their illegal operations is to take the necessary steps outlined by Shelter above.

What would you like to see done about it? It would be great to get your views…

Tags: Campbell Robb, Grant Shapps, Landlord Insurance, rental market, renting, Rogue landlords, Shelter
Posted in Landlord Insurance | No Comments »

John Lewis £150 Gift Voucher Give Away

February 8th, 2012

Here at LandlordLoop we’ve launched a fantastic competition for anyone on Twitter to enter.

The competition prize is a £150 John Lewis Gift Voucher for you to spend in any way you like. John Lewis provides some of the most beautiful furniture and household items on the market.

Fancy a new throw cushion or two? Some new China? Some new Glassware? Or, perhaps someone’s birthday or anniversary is coming up and you feel like buying them something for the home? Well this Gift Voucher would be ideal. Of course, however, the choice is completely yours!

How Can I Win?

It’s simple – all you have to do is simply Follow & Retweet, or alternatively @mention us with the hashtag #LandlordLoop included. Now if that isn’t a simply great competition, I don’t know what is?!

The winner will be randomly chosen after the closing date, which is 5pm on the 15th February, and then that one lucky winner will be contacted and sent their wonderful new Gift Voucher to spend on whatever they wish.

Our Twitter name is @LandlordLoop – why don’t you get in touch to be in with a chance to win some lovely new Gift Vouchers?!

Good luck everyone, and let’s get tweeting!

Tags: Competition, landlords, Property
Posted in Competition | 3 Comments »

London Popularity Booming With Overseas Investors

February 6th, 2012

In recent weeks and months a huge amount has been written about overseas investors buying property in London, and so today we are raising the question, why?

Why is London property amongst the most popular in the world?

It may seem like a fairly easy question to answer, London is, after all, one of the biggest and best cities in the world and one of the global financial hubs too. It is famed the world over for its infrastructure, shops, town houses, popular landmarks and parliament buildings. Let’s be honest, there is just so much to be seen and done in the UK capital!

Furthermore, the Olympic Games are coming to town in the summer which is undoubtedly one of the reasons why so much buzz surrounds the capital at the moment. Celebrities the world over will descend upon London for the few weeks that the Olympic Games takes place as will the super rich and super powerful!

London also has such a rich and interesting history and walking the streets one can, at times, feel that history reverberating around the place.

The Main Reason?

However, one of the main reasons why so many overseas investors are looking to London for their property purchases, and thus requiring property insurance quotes, is one that you may not have thought of as it is certainly not an obvious one.

And that is the high standard of education available to children. The Chief Executive of London Central Portfolio, Naomi Heaton, has explained that the third generation of a wealthy overseas family may be taught in British primary schools due to the thought that after someone has made their fortune they are likely to put their children through the British education system, including a university education.

Another Main Reason

In addition, Ms Heaton has been explaining further reasons why London is popular with overseas buyers: “People feel very comfortable here, it is a cosmopolitan society, it is one of the most visited destinations in the world, it is the centre geographically, financially and culturally [of the UK].”

London has such an extensive past, present and future and so many reasons for overseas investors to pump their money into property and such reasons are only likely to continue growing.

Tags: London 2012, London Property, London Property Investors, London Property Market, Overseas Investors, Property Insurance Quotes
Posted in Property Insurance | No Comments »

Winter Freeze

February 3rd, 2012

I’m sure you will have notice that some very cold weather is currently upon us, and unfortunately it is here to stay for a little while with snow falling around some parts of the country and snow forecast in other areas of the country too. For all property owners and tenants preparation for the cold snap should hopefully already be in full flow as there are a number of things you can do to ensure property safety.

Structural Safety and Pipes

Modern homes are built to be robust and withstand freezing temperatures, however some older properties may struggle in severely cold conditions if they are not looked after properly. Perhaps it will be worth investing in a structural survey if you have any doubts? It will also be extremely important to bear in mind a decent property insurance quote that will cover you in the event of seasonal damages.

In terms of the water pipes that run through your property, freezing temperatures can, naturally, cause the pipes to freeze, so it will be important to keep your heating on, at least very low, in order to make sure the pipes do not freeze. It may just be the case of turning it on for a few hours a day, and anyway, in such cold weather it may just be a necessity to have the heating on!

What to do Outdoors?

It’s not just the pipes internally that need looking after, it’s the external ones too! Guttering and drains can crack if they freeze so it will be important to make sure they are clear and clean and especially not broken as this could then cause a whole host of problems.

Furthermore, driveways and any paved areas outside your property can become slippery and dangerous due to ice. Therefore, if you own a property it may be worth investing in a bag of grit or a very large bag of salt to sprinkle across the surface. This will minimise the chance of anyone slipping over, and if you are landlord it will be in your best interests to ensure the safety of your tenants. Perhaps instruct them to get a bag of grit or salt and then reimburse them at the earliest convenience.

The winter weather can have an overwhelming impact on a property if it is not properly looked after. With some care and attention however, it will be more than possible to fight off the cold snap and prevent any damages befalling your property!

Tags: Cold Snap, Freezing Conditions, Property insurance, Winter Weather
Posted in Property Insurance | No Comments »

Data Reveals Small Decline in Property Prices

February 1st, 2012

An analysis of indices has shown that UK property prices were almost unchanged throughout 2011. It has been revealed that December saw the biggest monthly fall in prices last year as they dropped by 1%.

House Price Watch

Furthermore, the House Price Watch analysis of data from CLG, LSL Acadametrics, Halifax, Nationwide and Rightmove has portrayed that property prices, over the entire year, were almost unaltered with annual growth for 2011 being recorded at -0.1%. So, whilst less people may have been acquiring a new property insurance quote due to fewer people buying a home, actual property prices did not vary much at all it seems.

It has now been reported that the average price of a home in the UK is currently £195,166. This is around 9.6% lower than at the peak of the property market in October 2007 when the average price was as high as £215,089. That was however a time when the majority of people had more disposal income.

Rate of Growth

Meanwhile, this latest report has revealed the annualised rate of growth for each month’s data. Data is also regulated over three and six month periods, which provides a less volatile representation of market trends than individual monthly cut-outs. The annualised rates at three and six months show growth to be at -4.9% and -3.7% respectively.

Stuart Law, Chief Executive of Assetz, has been commenting on the House Price Watch data: “Property prices were relatively flat in 2011, recording a nominal annual price fall of 0.1% in December which translates as £268 in monetary terms. This lack of growth can be attributed to poorer job prospects, with unemployment now at its highest level since 1996 according to the ONS, and the ongoing Eurozone crisis which is impacting confidence and making lenders more cautious.”

Investors Returning

Mr Law went on to add that he expects a “Spring bounce” to occur and that London along with other major towns and cities have remained strong and on an upward curve despite the overall stagnation.

He also stated that the competitive nature of the mortgage market has resulted in more mortgage products becoming available on better terms.

It is expected that more investors will be, and already are, returning to the property market in a bid to take advantage of reduced prices. However, it is true that some landlords have seen minimal capital growth on their investment in the last few years.

Tags: House Price Watch, House Prices, Property insurance, Property Investors, Property market
Posted in Property Insurance, Property Market | No Comments »