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Landlords and residents set to sign groundbreaking agreement

Thursday, November 24th, 2011

Social landlords in a village in the North East of England are setting out on a social experiment that could spread across the UK if it proves successful.

Groundbreaking document

Accent Foundation, the main housing provider in former colliery village Horden, near Newcastle, are launching a Good Landlord, Good Neighbour scheme that will require tenants to sign an agreement that will hopefully improve the austere conditions in the village. The agreement is still at the draft stage and local residents have been invited to input their own ideas as to what should be in the document.

All parties will sign

Once agreed, the document will be posted to all the population of the village, whether they are tenants or property investors with an interest in landlord insurance. Michael Fishwick, an employee of Accent, is behind the plan and he is adamant it can work and be the blueprint for other schemes across the country.

Residents asked to play their part

He envisages residents working with landlords and letting agents to drastically reduce anti-social behaviour, a problem that has blighted the village for some time. He wants tenants to know the whereabouts of their children at all times, to put bins out correctly on collection days and to be responsible for their pets and any mess they may make in the streets. He wants them to report anti-social behaviour whenever they see it and to maintain good relations with their neighbours when at all possible.

Landlords promise to maintain high standards

In return he promises that landlords will play their part in the scheme by taking part in monthly visits where they will listen to any complaints tenants may have. He promises landlords will take swift action against anti-social tenants and will undertake to get any maintenance work done in quick fashion. Property insurance will be kept up to date which will ensure money is available when repairs are urgent. He envisages landlords and letting agents supporting local groups within the area and three monthly meetings of all landlords to discuss any problems that arise from the agreement.

Beating anti-social element is the key

Mr Fishwick has already managed to get local residents’ organisations involved and is keen for the scheme to start before the New Year. He believes once anti-social elements are controlled the rest will fall into place. It is a brave idea and one that the silent majority will support. It remains to be seen however, if the villagers can pull it off.

Tags: Good landlord, Good neighbour, Landlord Insurance, Property insurance
Posted in Advice, Best Practice Guides for Landlords, Landlord Insurance, Property Insurance | No Comments »

Changing face of UK landlords

Tuesday, November 22nd, 2011

The current propensity for properties going to buyers with an interest in landlord insurance seems set to continue as lenders continue to recognise buy-to-let investors as the safest bet in terms of mortgage risk.

New breed enters the market

As young couples continue to struggle to raise a deposit that will enable them to purchase a property, residential landlords are finding more and better deals available to them all the time, including property insurance. The current financial flux of low interest rates, lack of lending from the banks and a seemingly insatiable demand for tenanted accommodation is attracting a new kind of landlord.

Buy-to-let is an interesting option

The luckier members of society who find themselves in jobs that are not threatened by the current austerity measures imposed by the Government find themselves in a position where they are accruing money but have few options to invest the cash in a market that will give them a good return on their investment. Twelve months ago investing in the property market would have been almost impossible, the financial situation and lack of buy-to-let mortgages would have seen to that, but now, all of a sudden the property market is awash with buy-to-let deals that get better day by day. Twelve months ago investors would have been facing a 50% deposit; today 25% deposits with the right financial background are becoming common place.

Education fees replacing pension plans

The identity of the modern landlord is changing quickly too. Today the landlord with just 1 or 2 properties in his/her portfolio is likely to be a middle aged professional couple confident of their own future but not that of their children. The tenants paying rent into the bank accounts of this type of landlord will not be building up a retirement pension for their landlords but more likely contributing to school and university fees for the landlord’s offspring.

Sector changing quickly

The dynamics of the housing sector in the UK are changing faster than ever before. Those with a finger on the pulse of the market and the wherewithal to back their judgement could find the fragility of the present financial situation gives them a rock solid investment for the future of their own family.

Tags: Buy-to-Let Insurance, Landlord Insurance, UK Landlords
Posted in Advice, Insurance Guides, Landlord Insurance, Property Insurance | 2 Comments »

Newcomers can benefit from advice

Tuesday, August 9th, 2011

The continuing boom in the buy-to-let property market has attracted many first time venturers into the market. The poor returns offered by bank saving accounts and the dire problems encountered by the stock markets across the world this week will convince even more speculators to put their cash into property.

Research will reap rewards

It is vital for any landlord new to the business to have a good understanding of his costs. While it is impossible to become an experienced property investor overnight it is not impossible to do plenty of research before you take the plunge into a new project. It is fairly simple to get a quick understanding of the costs involved in setting up and a bit of diligent research will soon pay dividends when it comes to saving money.

Compare quotes

Although it is not as easy as with some other types of insurance, a quick perusal of the internet will find a few insurance comparison sites that offer landlord insurance quotes.

Regulation compliance a must

Adhering to fire and safety regulations is an absolute must and is not an area where you should think about cutting corners. Make sure your gas appliances are thoroughly checked by a fully authorised gas engineer, and don’t just take his word for it, ask him for identification and proof that he is qualified to certify your appliances. It is your responsibility to check that everything is in order. Fire and safety regulations are absolutely essential and don’t forget accessories like furniture, carpets and curtains must adhere to set standards.

Speak with professionals

Even though finding landlord insurance quotes can be easy, choosing a letting agent can be complicated and expensive. If you are entering the sector with the idea that you will expand and eventually become a professional landlord then you will probably want to avoid the expense of an agent. If that is the case make sure you join a professional body such as the National Landlords Association. The cost is minimal compared to the advice and experience that can be passed down to a newcomer, and special deals organised by professional bodies will probably recoup joining fees in no time at all.

Tags: buy-to-let property market, landlord insurance quotes, Property Investors, Regulations
Posted in Advice, Landlord Property Quotes | No Comments »

Location still the key

Wednesday, April 6th, 2011

Professional landlords are always looking for ways to improve business and at a time when the rental sector is strong many will be looking to invest their improved earnings back into their empire. Expanding portfolios and getting improved deals on business property insurance can both lead to increased profitability but there are other ways that a landlord can stay one step ahead of the game.

Tenant demand set to soar

Many factors have combined over the last two years to put residential and commercial landlords in a better position than for a long time. The current state of the housing market and to a lesser extent the job market is leading some experts to predict that the UK could, over the next generation, become a nation of tenants rather than homeowners. If that is the case then professional landlords should be looking at their position in the sector now.

New requirements

Many tenants of course are students and many others particularly in the urban areas are young professionals, both groups are readily recognised as users of modern technology and especially with the advances in media outlets. The old property adage of location, location, location is more apt than ever for landlords, but in a slightly different way. Not only will tenants of the future want a location close to a place of work, learning, or transport, they will require a location where the access to mobile and broadband networks is at its best.

High speed broadband and mobile will attract tenants

BT this week announced that it plans to extend the coverage of high speed broadband to 80% of the UK’s population. The company intends that 4 out of 5 users will have the capability of speeds up to 20Mbps. This will appeal to a broad spectrum of prospective tenants not only in the residential sector but even more so in the commercial sector. The same applies to the mobile network, tenants often don’t bother with landlines anymore and so rely on a mobile signal that is strong and steady, a property in such an area will be attractive to a large number of home seekers.

It is possible that landlords may find they have to spend more time studying the maps of broadband and mobile phone accessibility than they do studying homeowners insurance rates if they want to own properties that will give them an edge in the market.

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

New Yorkers bitten by the bug

Thursday, March 31st, 2011

The old mantra that ‘what happens in America today happens in the UK tomorrow’ could mean landlords in the UK will be inspecting more than their landlord insurance with a fine toothcomb in the coming months.

Website could lead to landlords bugged by tenants

The bedbug epidemic in the United States shows no sign of abating, and in New York especially, citizens are growing more and more exasperated with the problem. So much so that the governing body of the City has now set up a special website to give concerned New Yorkers the low down on the life of a bed bug and how citizens can bite back in their fight against them.

The website gives a complete run down on the problem of bed bugs; from the life cycle of the little pests, to which city department to contact when you have an infestation. The City Fathers are also telling the millions of tenants in New York that landlords have a big part to play in the battle against the little pests.

Information on the website tells tenants to inform their landlords as soon as they feel they have a problem, and there is a designated protocol for landlords to instigate as soon as they receive a complaint. They must take control of the situation and inform the tenant what they intend to do, and what the tenant must do to help. Advice on the website tells landlords to have the apartment completely de-cluttered and then vacuum the whole place before covering the property with a suitable chemical treatment that will get rid of the bugs. It is also the landlord’s responsibility to instruct his tenant on what personal items of clothing, bedding etc. they should clean while the treatment is doing its job.

Landlords need protection too

Landlords lucky enough to have property insurance that actually covers them for such a mishap will not find themselves out of pocket, but those without insurance could find the problem even threatens their business. It is just one more example of how valuable insurance is when trouble comes from out of the blue or in this case out of the duvet.

The problem has not yet been reported in England to any great degree but it is more than likely it will appear. Landlords here at least have the chance to organise their residential property insurance now before it is too late.

Tags: America Bed Bugs, Bed Bugs, Landlord Insurance, New York Bed Bugs, Property insurance
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Weed out illegal activity in your property

Tuesday, March 15th, 2011

Landlord insurance providers are finding claims from landlords who have been duped into letting their property to criminal gangs is escalating. The worried insurance providers have been busy trying to contact customers to warn them of illicit activity being carried out in many rented premises all over the UK.

One of the country’s biggest insurers, Aviva, say they have noticed a 30% increase in claims from landlords for criminal damage to their property and there appears to be one underlying theme to the claims.

Cannabis culture

The illegal growing of cannabis is becoming blight on landlords across the country. Police investigations suggest that the illegal growing of the drug is being controlled by gangs from the Far East and appears to be spreading. Arrests have been made already this year in places as diverse as London, Birmingham, Bristol, Cornwall and Doncaster in South Yorkshire.

Short circuiting the electrics

The problem for landlords is that the damage to the property is ongoing and the longer the gang are growing the illegal weed, the more damage to the property. The growing of plants indoors in specially created environments is called hydroponics, and strong light with a plentiful irrigation system is required. The room temperature has to be warm at all times and to encourage growth light is required 24 hours a day. Because of this the first thing the gang does when it rents out a property is to bypass the electricity meter, which of course is illegal and immediately compromises the landlord.

The illegal wiring system, the strong lights and need for a crop spraying system exacerbates the fire possibilities in these properties, already there have instances of serious conflagrations in houses turned into cannabis farms.

Landlords on their guard

Landlords need to be aware of this danger and not to think it can’t happen to them. A good landlord, who visits his properties regularly, takes references from his tenants including bank details, will more than likely not be caught unawares.

It is important that a landlord looking for an online insurance quote for his property knows he is covered against cannabis farming, if he follows the above procedures. Police advisers say landlords should look for certain signs in their property which would highlight the chances of illegal activity. These include; walls and ceilings covered with polythene, blinds and windows always closed, and a pungent smell emanating from the property.

Tags: Weed in property, worried insurance providers
Posted in Advice, Best Practice Guides for Landlords | No Comments »

Making a Tenancy Agreement

Tuesday, January 4th, 2011

Along with having landlord insurance, one of the first things that a landlord needs to do is create a tenancy agreement. One way of doing this is using a standard form and these are very easy to find in stationers or they can even be downloaded from appropriate online sites.

It is vital to make sure that the correct type of tenancy agreement is made out, especially if the landlord is going to be living in separate accommodation in the same property or if more than one room is being let out to students in what is a shared property. Every landlord should ensure that all forms being used for the tenancy agreement are up to date. The wording on all forms that were printed before 2007 are now highly unlikely to comply with the tenancy deposit scheme.

It is never a good idea to set the initial tenancy for more than six months although this does not apply if the tenant is known and trusted already by the landlord. Six months is ample time for landlord and tenant to assess if the agreement is working for them both and also gives them both a get out clause if it is not ideal. In a normal assured short hold tenancy the tenancy will continue after the first six months or whatever period was written on the agreement. It will normally continue on a monthly basis as long as the rent is paid each month on time.

A landlord should never amend a tenancy agreement without first speaking to a professional. If a landlord does not do this it may make the entire agreement invalid.

For the tenancy agreement to comply with the Landlord and Tenant Act 1987 it must contain the address of the landlord. However, if a landlord is living abroad the address of the letting agent can be used instead. All payments the tenant is responsible for and which are to be covered as part of the monthly rent should be stated clearly in the agreement. Some landlords agree for them to pay some of the bills such as council tax and utility bills and they will normally have a clause inserted in the agreement which allows them to increase the rent if the cost of the bills increases.

It is also best to include an inventory of everything in the property, this includes contents and also the condition they are in at the start of the tenancy. Agree this with the new tenant before they move in so that there will be no disputes at a later date. Finally, it sounds obvious but a landlord needs to ensure that the tenancy agreement is properly signed by all the tenants, and that they have a copy of it with their signatures on before handing over the keys to the property.

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

Getting a Landlord Accreditation

Thursday, December 30th, 2010

Being a landlord is not easy; there is a lot that you need to know, from buying landlord insurance, acquainting yourself with legislation, plus the responsibilities that go with being a landlord, and all the day to day running costs.

Throughout the United Kingdom this has been recognised by local authorities who are encouraging landlords in the private sector to become part of local landlord accreditation schemes. This is not just designed to benefit the landlords; it is there to help the tenants as well. Local councils and private landlords have been working closely together, sharing information that helps the landlord manage their rental properties. Arranging meetings where landlords get together to discuss any issues which affect them, and setting up voluntary accreditation schemes which will recognise and reward all the landlords who manage their rental properties well appears to be working successfully.

Accreditation is a set of standards which are laid down by an individual authority and apply to the way a property is managed and its condition. Any landlord who decides to join one of the schemes will become an ‘accredited’ landlord, and will then be listed on the local council’s accredited list. This is of benefit to the landlord and prospective tenants. The scheme is voluntary, and there is no obligation for a landlord to join, but when it comes to renting a property they are identified locally as a good landlord, which puts them ahead in the list. Tenants will know that renting a property from an accredited landlord, will mean the property will be in a good condition and the tenancy is going to be managed well.

Some council’s even have grants and loans on offer to an accredited landlord if they need to renovate their property to the standards set out by the scheme. Some schemes even offer accreditation for tenants who agree to stick to certain standards of behaviour such as respecting the accommodation, respecting the neighbours and sticking to the terms of the rental contract.

Obviously having both the landlord and tenant accredited is good for everyone concerned. There are basically two types of scheme, one will accredit the person, and the other will accredit the property and most schemes will combine both elements, for example the scheme will include criteria that relate specifically to the condition of the property, but will also look at the way the landlord has been managing the property.

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

Avoid the renting pitfalls to secure a happy home

Tuesday, December 14th, 2010

Thanks in some part to the mortgage shortage, the residential rental sector is now booming. It seems that everyone, young people, older age groups and families are holding off buying a new property or are unable to, and are instead opting to rent a new place.

There is no obligation for anyone to go through a letting agency to find a place to rent, but most potential tenants do. It is best to visit as many agency websites as possible, as they will have up to date information on all properties currently available as well as the rental rate. Another good reason for using a reputable agency is they will normally only let property on behalf of respectable landlords who will also have landlord insurance.

A tenant will be expected to contribute to the cost of obtaining all references which include employment, credit and a behavioural reference; this is designed in part to protect landlords becoming a victim of unscrupulous tenants who could end up costing the landlord a lot money. Before signing a contract and moving in, the tenant will also have to pay the first month’s rent in advance along with a deposit which is normally equivalent to two months rent. This deposit will be returned at the end of the tenancy.

For tenants, the main lease commitment will be the timely payment of rent which will in most cases be by direct debit. Another will be taking responsibility for all the utility bills and a TV licence. A tenant must also make good any damage to the property. The initial lease will be usually for six months. Most landlords will be happy to offer longer leases to “good” tenants as there is nothing better than getting some income from responsible occupiers who have shown a landlord that they can be trusted.

All tenants have a right to expect a property which is wind proof and watertight, running hot and cold water and some form of heating. Tenants should also expect the property to be maintained by the landlord should any genuine faults arise. A tenant does not need buildings insurance as that is down to the landlord; however they will need to have some kind of contents insurance as this will cover the tenant for the loss or damage to personal property through theft, fire or flood.

Problems do sometimes happen over the landlord keeping the deposit due to damage to the property. Fortunately most landlords today are realistic enough to know the difference between damage and wear and tear, in which case the deposit is returned.

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

Becoming a landlord for the first time

Friday, December 10th, 2010

A landlord is someone who owns a property and then rents it out to a tenant. When things are going right it largely consists of collecting rent on time, doing all safety checks and maintaining the property. However, at its worst it can involve dealing with nuisance tenants who may damage the property, filing insurance claims and even paying out bills on a property that is empty.

Becoming a landlord for the first time requires careful consideration. Before buying a property it is a good idea to find out the going rental rate of similar properties in the area. Focus on a property which can be afforded with a monthly mortgage repayment that is equal to, or better still, less than the rent which will be received. Always budget for some renovations and plan on any expenses exceeding expectations.

Landlord insurance should be a key consideration. Speak with an insurance company as to what are the best forms of insurance for the property. A landlord whether new or experienced, should always insure against fire, flood or other relevant contingencies. Always have a lease drawn up. This should be done by hiring a professional who will draw up a formal lease that meets all the expectations of a renter and a landlord. The lease is an important legal document which will form the relationship between a landlord and tenant and needs to be taken very seriously.

An empty property will not earn any money for a landlord. As soon as possible, the property needs to be advertised. Always screen all potential tenants very carefully, this includes conducting a credit check and always explain to a tenant their responsibilities under the lease. To be a good landlord, one important thing to do is to become familiar with all the rights and responsibilities, and familiarize you with health and safety regulations. Provide good maintenance which will keep all appliances, electrical, plumbing, heating, fire alarms and security alarm systems in good working condition. Respect the tenants’ privacy by giving adequate notice before entering the property.

The main principle behind being a good landlord is to always think not as the owner of a house but as a service provider to the tenant, it just happens to be your house. Just keep in mind always that the tenant who pays the rent needs to be happy. This does not mean giving more than what the tenant pays rent for. Fairness is a virtue that is expected of you and this fairness needs to be applied to both the landlord and the tenant.

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