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Archive for September, 2010

What does the future hold for landlords?

Thursday, September 30th, 2010

A question that must be on the lips of many residential landlords as well as the employees of huge housing associations.

Buy to let mortgages are available but the constant cry from landlords looking to increase their portfolio is that the deposits required are just too high. With home loans dropping to their lowest in years during August 2010, it would seem that private landlords will have a big part to play in getting the UK through the austerity years. There does not, however, seem to be any well thought out plan by those in power to alleviate the housing shortage. After all someone has to buy property.

At the moment landlords are having a good time of it; rental income is slowly creeping up as the laws of supply and demand take hold, but for how long? It would appear that for the near future at least, landlords who can afford to extend their portfolios and buy landlord insurance for the properties, will have tenants queuing up to sign agreements as they can’t get on the housing ladder. There is, however, one very big blot on the landscape.

The government cuts in Local Housing Allowance will come into play next month. Many landlords especially those in the South East who provide housing to benefit claimants will soon have to make a decision. Do they allow the tenant to get into arrears when their allowances are cut, or do they cut the rents to suit the benefit allowance? Already many have said they will evict tenants who fall in arrears, but in all seriousness no landlord wants to do this, it creates bad feelings, bad press and, at the end of day leaves the landlord with a void period.

Housing associations who often get access to public funds will also have tenants who suddenly find that they have a black hole between their rent and their income. The pressure on these landlords will be immense as social housing also attracts workers on low wages, the sort of workers who may well find their jobs disappear when the government cuts take hold. Already employees of one contractor to social housing schemes have found themselves out of work as the firm collapsed. Will the pressures of government cuts cause the housing associations to lower their rents, and will this then put pressure on their finances in other areas?

The UK landlord awaits the future months with interest.

Tags: Advice for Landlords, Landlord Insurance, Property market, rental market
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Spruce up your kitchen

Wednesday, September 29th, 2010

With autumn on its way, it is a great time for landlords to give any property’s they have enduring void periods a fresh new look. Tenants probably spend more time in the kitchen than you think and if money is tight you can still give the kitchen cabinets a makeover without it costing the earth. Very little skill is required for this job; all you will need is a screwdriver, some sandpaper, paint and some creativity. You do not even have to replace the door furniture, and it could easily secure you a new tenant.

Painting your kitchen cabinets is the least expensive way of giving old cabinets a fresher new look. Empty everything out of the cabinets and store away safely. The cabinets will most likely have a build up of grease, grime and dust particles so they will all need a clean with a warm water and soap solution, depending on how often you clean your cabinets, you may want to do this twice to ensure it is thoroughly clean. Use the screwdriver to remove the doors and the door furniture, when you do be sure to make a note of which one goes where.

Use sandpaper on each cabinet door, medium grit sandpaper is best to use for this job as it will get rid of any varnish on the wood. Then re-sand all of the cabinets with fine grain sandpaper, this will leave a surface that is ready to be painted, also a smooth surface will allow the new paint to stick to the cabinet surface much better. Clean up all the dust created by the sandpaper immediately, if it gets blown onto the paint you will just be making more work for yourself.

Now you are ready to start painting, and with the money saved by taking the job on personally you can afford to buy paint that will give your kitchen that fresh look. Make sure you have used sheets or newspaper to protect objects close by from being splashed with paint, it would be a shame to have to claim on your landlord insurance policy for a needless accident. Each of the kitchen cabinets will need two coats of paint on each side of the door, as will the cabinet frame. Allow this to dry for at least a full day to get the best results.

It is always better to use a top-quality paint brush to apply your paint as less bristles will come off and leave their tell tale marks on your work, and always apply in multiple thin coats. After 24 hours when the paint is dry, sand very lightly with fine grit sandpaper. If you apply two thin coats of paint it should look great, just using one coat could see the paint peel off quickly.

Like any other job if you are patient and take your time to do it correctly, the results will be so much better. While the second coat is drying you can soak the door furniture in a soapy mixture to bring them out sparkling clean. Along with the freshly painted cabinets your kitchen will have a great fresh new look. It is so much cheaper than buying brand new cabinets. All that remains now is to screw the doors and the handles back on and a money saving DIY job is finished.

Tags: Advice for Landlords, DIY, Help, landlords, Landlords Insurance
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Carlton microwave will complement a furnished let

Thursday, September 23rd, 2010

Landlords providing fully furnished accommodation should always be on the lookout for a bargain. This applies to electrical goods as much as anything else, although good landlords will be aware that a bargain buy must always comply with all health and safety regulations. It is also a good idea to have electrical items as well as the rest of the property covered with a landlord insurance policy.

If a property has limited space in the kitchen then a small microwave can be a useful supplement to other cooking facilities. The Carlton C25MW09 microwave is at the low end of the market price-wise and is versatile enough to suit most basic microwave needs.

A good pointer when looking for a new electrical product is online reviews and the Carlton had plenty of those with the great majority extolling its virtues. It is not too heavy, small enough to fit on top of a fridge or worktop and is very reasonably priced.

When it comes to use, the door is very light, and has a handle which clicks nicely when you open or close the door with it. It is also very easy to clean, and the design is pretty urban and funky with an oval shaped window. The performance is not always consistent, you get some part of the food perhaps hotter than the other, but then that is inevitable with microwave cooking.

A really good point about the Carlton is that it is programmable, which for a microwave at its price is excellent, even though it will be for heating and defrosting mostly, it is nice to know that you could programme it for under 30 seconds, or for any seconds you like, which is not only good for butter but also for defrosting and warming frozen buns and cupcakes, for a quick snack!

One small drawback is the beep it makes when it has finished. The noise is repeated five times and in tenancies such as converted rooms in one house the noise could easily be heard by other inhabitants. A factor that landlords may bear in mind when placing the product in buildings within their portfolio.

Tags: Advice for Landlords, contents, Landlord Insurance
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Everyone needs to try and save water

Thursday, September 16th, 2010

While 2010 was not as bad as years gone by, some parts of the United Kingdom still had water shortages during the summer, in fact some areas had a hosepipe ban and flood warnings at the same time. Having a hosepipe ban meant that water was being rationed, it led to dirty cars and gardens looking wilted but nothing too serious. It is likely that hosepipe bans will happen most years in the future, but there are things everyone can do to ensure too much water is not used in homes throughout the country.

Water companies are also making moves towards making each household pay for every drop of water used rather than paying them a set amount each year. They are putting water metres in homes all over the country. For some, this could be better and will lead to lower bills, but for others it could lead to much larger water bills and they will need to try and save water. It will also mean a large water bill should a pipe burst in the home, and if the property is privately rented the owner may need to claim on the landlord insurance. Landlords can help by placing notices in their properties advising on water saving actions.

There are ways everyone can save water, in the kitchen do not leave water running while doing the washing up, this simple act means around 9 litres of water will be saved each minute. Collect the water which runs while waiting for hot water to come through, this can be used to water plants. Do not ignore a leaky tap; fix it as soon as possible. In the bathroom take a quick shower instead of a bath. Install a shower timer or use a lower power shower. Cutting the shower time by just one minute less per shower can save 12000 litres of water for a family each year.

Install a water displacement system in the cistern of the toilet, this will mean less water is used every time the toilet is flushed. In the kitchen try and make sure that a washing machine or a dishwasher is efficient. Do not use either of them until they are full. Remember that doing a half wash does not mean half the water is used; in fact it will use more than half. Wash vegetables in the sink with the plug in or use a bowl to wash them. In the garden try and harvest rainwater which can be used on the garden as well as flushing the toilet or cleaning the car and patio. Use a watering can instead of a hose on the garden.

These are only small steps in the war against water wastage, but if everyone did just a few of these things it would make a huge difference.

Tags: Advice for Landlords, climate change, Landlord Insurance, water shortage
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Reluctant landlords get advice

Wednesday, September 15th, 2010

A report from a leading landlord insurance provider suggests more and more homeowners may turn to renting their own home out to tenancy, if a second drop in house prices takes place.

Figures from leading mortgage providers including, the Halifax Bank and Nationwide Building Society show that August proved to be the second month in a row where house prices dipped. The company, More Than Business, believe the result of this may see homeowners being forced to downsize, and if they can’t sell their house then they may have to let it out and become what is known now as ‘reluctant landlords’

Reluctant or not landlords have certain legal obligations to make and the fear is that homeowners forced into letting out their properties may not be properly informed of the demands on landlords.

The insurance company have prepared a check list for would be landlords, and it includes all the information that professional landlords can get from a landlord association or indeed local council offices.

It includes advice on certification with regard to electrical and gas appliances, fire regulations and of course the left over from the HIPS packages the Energy Performance Certificates. All the above mentioned are required by law and must be in place before the property is rented out.

The insurers also give advice on tenants rights, landlords rights, how to secure and then save a tenant’s deposit plus various other tips. It is good solid advice and will prove a good guide for any reluctant landlord, who should also consider looking round for cheap landlord insurance.

Tags: Advice for Landlords, Landlord Insurance, rental investments, rental market
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Brighten up a radiator before winter arrives

Tuesday, September 14th, 2010

With summer gone for another year houses up and down the country will be thinking about turning on the central heating. The radiators will have gone unnoticed for the last few months and now is a good time to brighten them up with some fresh paint and get rid of any rust patches. Rust on a radiator is quite common and is caused by corrosive water in the system reacting with the steel of the radiator. Any loose rust can be removed with a stiff brush or sandpaper. Make sure all the rust is removed before even thinking about painting it. And remember that ordinary paints should never be used on radiators as it leads to problems such as heat resistance and yellowing.

In an ideal world the radiator should be painted before it is plumbed in or it could be taken down and painted. This is because it would allow better access to the hard to reach areas. However, if it is already plumbed in the radiator will need draining, and if the property is privately rented the owner will not be best pleased if they have to claim on their landlord insurance policy for water damage. This is just extra work that is not really necessary so it will be fine to paint it where it is.

To paint a radiator, a normal paint brush will do just fine, but it will make the job easier if a radiator paint brush is used because it is angled to reach into the awkward places. There are a number of paints to choose from for radiators. Oil based paint, which is very tough and durable with low odour. Acrylic paint is moisture and stain resistant or an oil based gloss paint, which does not crack or flake.

There are also a number of paints which are environmentally friendly. It is a good idea to not paint any nuts/bolts or any other moving parts. Doing so will cause problems sometime in the future. To get a good finish apply two coats over a primer. If water based paint is used a wait of four hours between coats will be needed, if it is oil based paint it will have to be left overnight before a second coat is applied. Make sure the radiator is completely dry before turning on the heating. Radiator paint is specially made for central heating and is heat resistant while also being low odour.

Tags: Advice for Landlords, Landlord Insurance, painting & decorating
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Local Housing Allowance in the spotlight

Monday, September 13th, 2010

As the day for the introduction of the changes to Local Housing Allowance (LHA) draws closer landlords warn that the changes will have a negative impact on their business.

The proposed changes brought about by George Osborne in the emergency budget will see LHA capped at £250 a week for a one bedroom property and £400 for a four bedroom home. The new maximum rates could also see the government with a new homelessness problem on its hands as well.

A survey by Upad.co.uk, a property website, revealed that almost 40% of landlords questioned said the changes would affect them, and this rose to a staggering 90% in London and the South-East. Most landlords ascertained that when the changes come into place they would be asking tenants on LHA to leave and will seek other tenants. Only 12% said they would be lowering their rent to the cap.

The property website suggests that if the sample of landlords surveyed is a true indicator of what would happen on a national scale, then well over 300,000 LHA claimants could find themselves homeless.

James Davis, the Chief Executive of Upad.co.uk, commented “Some property industry observers have speculated that LHA levels have artificially inflated the market and that removing them will lead to a general lowering of rents, but clearly many landlords disagree with this.”

For the time being all eyes are on the October spending review. It does seem more problems could be just around the corner as landlords review not only their landlord insurance policies, but which tenant’s actions they shall be covering.

Tags: budget, housing benefit, Landlord Insurance, LHA
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Rogue landlords taking advantage of the vulnerable

Friday, September 10th, 2010

Once again the good name of millions of landlords in the UK is destroyed by a few bad apples. A recent investigation by the homelessness charity Shelter, found that a great number of tenants are being treated shabbily by rogue landlords.

Shelter claim the appalling treatment is widespread, but it is only by a small number of landlords in the private sector. Shelter carried out the survey of EHOs (environmental health officers) and found that 9 in every 10 who deal directly with private renters had problems with a landlord harassing, abusing and even evicting tenants illegally. EHOs also told of landlords who ignore responsibilities including severe cases of damp and mould along with electrical and fire safety hazards which are totally ignored by the landlords.

One landlord is renting a property which has no heating, hot water or electricity. Another landlord rents a property to a mother and young child without any kitchen facilities or fire precautions. The survey shows the importance for local councils to have good enforcement strategies in place to help the most vulnerable. The enforcement strategies should also not have to wait until there is a complaint. It looks as if in the future there are going to be more private tenants. So it is important to drive out the worst landlords in the private rented sector. It is unclear if the property owners even have landlord insurance.

Campbell Robb, chief executive of Shelter, said “It is simply not acceptable that people are handing over their hard-earned cash to live in houses that are run-down, squalid and in some cases even dangerous. Our investigation shows just how ruthless a minority of rogue landlords can be. But this is not just the odd crook here and there. We know there are people operating in cities up and down the county, and it’s clear that this is a national problem that urgently needs a national solution.”

Tags: Advice for Landlords, Best Practice Guides for Landlords, landlord advice, Landlord Insurance, Landlords Insurance
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Sash windows can bring a house to life

Thursday, September 9th, 2010

Owning a rental property with sash windows can be problematic, but any landlord tempted to remove them for convenience should remember that for many tenants they are a desirable feature. If treated with care and covered by landlord insurance, sash windows can prove to be a good draw for attracting good tenants.

A sash window is made of movable panels that form a frame that hold the panes of glass which are quite often separated from the other panes of glass by narrow bars. Sash windows do come with problems such as swelling, rot, distortion of the woodwork and rattling in the wind. Sash windows are very high maintenance, but they are well worth the work because of the advantages of having great looking windows on the property. Finding out if the sash windows on the property are original is very easy. Looking at the glass can give the answer. If the glass has waves/ripples or it shimmers then chances are they are original.

Another disadvantage of having sash windows is it is not possible to replace the glass with a more energy efficient glass. This is because the original sashes were designed to take single glazing. Tests have shown that modern day single glazing will not perform any better than the original does, plus when walking past a property which has the original glass in the windows, the sparkle the glass gives off will be a talking point. To keep them looking that way a sash window needs to be serviced/repaired about every 12 years. Servicing the sash window is a big job as they have to be dismantled, eased, re-aligned, re-assembled, and they will need a draught sealing system and a brush pile system applied.

A sash window is very likely to have draughts and rattles. The brush pile system will help cut out draughts and rattling and also cut down the amount of heat lost through the window. The brush pile system can also significantly cut down the exterior noises. Sash windows normally have a centre catch on the mid rail. But this is not on its own adequate security for the property. There is an array of key operated locks available in various stores, a good choice is the restrictor lock, and this not only adds to security but also allows the window to be opened slightly without reducing security or safety.

If the property is rented, the landlord will want an experienced tradesman to do all the important jobs. Anything to do with sash windows really should be done by someone who knows what they are doing. The windows will need between five to eight years between each painting, this of course depends on where the property is and which direction the windows are facing (windows which are facing south tend to suffer more from the elements). If the sash windows are original, never try to burn off the old paint as this will also remove any lead paint which is there to protect the window and it will also expose dangerous lead fumes into the air.

Tags: Landlord Insurance, Property insurance, sash windows
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Internal wall cracks will need monitoring

Tuesday, September 7th, 2010

No one likes to see cracks appearing in their walls, it is one of the reasons that property owners in the buy to let market take out landlord insurance. Most cracks will be just surface disturbances of the plaster which are caused by the property expanding and contracting naturally. New homes can have problems with cracks during the early months of occupation as the home settles in. Mostly these cracks are harmless and they can simply be decorated over.

A crack itself is a visible symptom of what may be a possible problem; a crack is not the problem itself. The seriousness of a crack in the wall depends on the material used on the walls. For example, plasterboard walls are often subject to hairline cracking at the point where the sheets of plasterboard have been butted up to each other too tightly. This can be fixed quite easily by making the joints a little bit wider and then filling in the space with some soft plaster. A more serious crack, for example one in a wall that has been filled more than once, but keeps coming back could be a serious problem.

Likely causes of cracks include shrinkage of wall materials, expansion, and corrosion, environmental stresses such as nearby trains, faulty design, bad quality materials and weather effects. If a single one crack appears in the property measuring more than 5mm wide, it is a good idea to get some professional advice. Inform the landlord if the property is rented.

A lot of cracks turn out to be nothing to worry about but it is a good idea to monitor them for signs of growth. In the age of digital cameras this is quite easy, take a picture at regular intervals, and then compare the latest picture with the first. This could come in handy if an insurance claim is needed. A worse case scenario would be a crack appearing suddenly and rapidly getting bigger; it may even progress to the outside of the home. If this happens speak to a chartered surveyor because almost certainly it will be that the foundations are moving.

Another reason for cracks appearing may be because of loft conversions which can cause stresses on a home if the work is not carried out professionally. If a luxury bathroom is installed in a loft for example, all the necessary fixtures and fittings plus the weight of water in the bath will add to the burden on the building structure. A professional tradesman should take this into account when drawing up plans for the work.

Tags: Advice for Landlords, Buy-to-Let Insurance, Landlord Insurance, property advice
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