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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
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Landlords should not be fooled by warm weather

Thursday, November 17th, 2011

What a difference a year makes! It was around this time last year that the UK found itself enveloped by atrocious weather conditions. Beginning with floods in the South West, these were quickly followed by Arctic conditions in Scotland which eventually moved progressively south and left the whole British Isles shivering for months. Landlords across the length and breadth of the country found themselves claiming on their landlords insurance policies for all manner of things related to the bad weather.

Balmy weather

Compare that to the balmy conditions we are experiencing at the moment. Here in the South West the temperature gauge has yet to drop below double figures so warnings about preparing properties for winter are hard to take seriously, but they should be.

Green deal could hold back investment

The temptation for some landlords may be to hold back on investment on insulation as the Government’s much vaunted Green Deal supposedly starts next year. Although details are still sketchy landlords may well be forced to bring properties in their portfolio up to a certain standard; however, they may be eligible for cheap loans to complete the work. Obviously investors with a solid business brain have to consider this but they should not leave their homes at the mercy of the weather if repairs are needed now. Their business property insurance provider will require them to keep their property in a state of good repair and their tenants deserve to be given the best living conditions the landlord can achieve.

Good relationship with tenants a must

With this in mind landlords should aim to insulate their loft to a minimum of 10 inches and to also consider cavity wall insulation. They should use draught excluders where appropriate if they are holding back on investing in a new heating system and now is the time to ensure that all exterior maintenance is completed. Mid winter is not the time to have missing roof slates or leaky guttering. Tenants should be asked if they have noticed anything that should be repaired or soon will do and it’s massively important to make sure tenants know how to work heating systems. It is foolhardy to install a new system unless the house incumbent is completely at ease on how it works. It always pays for landlords to take time to get to know their tenants; a good relationship is beneficial in lots of ways to both parties.

Tags: Advice for Landlords, landlord advice, Landlords Insurance, tenants, Weather
Posted in Best Practice Guides for Landlords, Landlord Insurance, Property Insurance | 1 Comment »

Perfect storm gathering for rental sector

Tuesday, April 26th, 2011

As the cap on Local Housing Allowance (LHA) starts to impact on tenants in cities across the UK, companies specialising in tenant evictions are warning that thousands of court actions against non payers of rent could put the legal system and landlords under terrific stress.

Trio of events

It is feared that the closure of almost 50 county courts in England and Wales coinciding with the caps in LHA and a possible rise in interest rates could have enormous consequences not only for tenants who can no longer afford to pay rent for their accommodation but also for their landlords.

Landlords faced with difficult decisions

Figures suggest that tenants in four bedroom houses claiming LHA will lose on average £74 a week with the cap, which could leave landlords in the unenviable position of choosing to evict the client or lower the rent if the tenant cannot afford to cover the shortfall. With only around a quarter of a million out of almost 5 million claimants actually employed, the likelihood is that most tenants will not be able to afford the increase.

Many landlords will be examining their residential property insurance policies to find out exactly where they stand if they do evict a tenant. One problem they will encounter is a delay in the eviction process when it goes to court. The closure of the courts means eviction proceedings are now taking weeks longer than before, which means that landlords will then come under pressure to find the cash to pay their loans on the property.

Westminster could be a hotspot

It is reckoned that 22,000 tenants in the Westminster district of London will be in such a situation, which means that an awful lot of landlords will also be wondering if they should take out empty property insurance cover on properties they always thought would be good wage earners. The problem will come to a head over this summer and with no political solution in sight landlords and tenants may both find themselves in trouble.

Direct payments to landlords would help both sides

It has been suggested by many in the industry for a long time that paying LHA directly to the landlord rather than the tenant would certainly cut back on eviction rates, this action would find agreement with many tenants but there seems little political will to bring about the change even though housing minister Grant Shapps has in the past indicated that he was sympathetic to the argument.

It could well be a summer of discontent for many people in the residential letting sector over the next few months.

Tags: Landlord Insurance, Property insurance
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Glimmer of hope in loan figures

Thursday, April 21st, 2011

Figures just released by the Council of Mortgage Lenders (CML) suggest that residential landlords were particularly active in March searching out good deals on cheap property insurance.

City puts a dampener on the figures

According to the organisation, mortgage lending soared compared to the previous two months of 2011. The news radiated a warm glow on the cheeks of estate agents across the UK who have been dealing with a frozen house market for over 12 months now. Financial brokers in the City were still gloomy enough to say the figures would have little effect on house prices, but others in the industry will be cheered by any glimmer of good news.

Upward trend powered by landlords and remortgages

The CML report showed that the gross lending on mortgages in March reached £11.3 billion, a whole two billion more than February’s dismal figures and helped the first quarter figures to slightly improve on those of 2010, although March in 2010 was actually better than this year.

It is thought that a great deal of the extra activity on the mortgage front was down to homeowners taking the chance to remortgage before the much vaunted threat of a interest rates hike, and importantly for letting agents, buy to let investors looking for bargains which they could cover with property insurance and quickly move in to the buoyant rental market.

Lower forecast for April

Already industry experts are predicting April will bring everyone down to earth because the two Bank holidays will put a dampener on house sales, but figures do show that more properties are coming on the market and more landlords are showing an interest in expanding their portfolios. It now only needs the residential market to get a breakthrough and the doubting Thomases in the industry may be proved wrong.

Realism needed by those with “sticking” properties

With new homes coming on to the market, at least the vendors won’t be expecting prices that were achieved three years ago, which is without doubt a major factor in why so many houses are still sticking. The concept of “giving a house away” still lingers strongly with those who first marketed their homes before the recession. Unfortunately for these people the average house price has fallen something like £20,000 over this period, to those reading this in the paper, it is a statistic, to those trying to sell their house it is often viewed as daylight robbery. They cannot bring themselves to let their property go at the new market value and so bring a certain level of distortion to the figures released every month.

Tags: Landlord Insurance, loans, Property insurance
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Accounting demands on social landlords may open the door for private investment

Tuesday, April 19th, 2011

With the advent of new international accounting standards being extended to cover Housing Associations (HA) in the UK, the demand on private landlords to go out and purchase residential property insurance on even more units may become even more pressing.

Major cost concerns in change over

Housing association chiefs are concerned that the decision by the UK Accounting Standards Board (ASB) to demand social landlords file their accounts in compliance with the new international accounting standards could cripple many associations. One major housing organisation, the National Housing Federation (NHF) believe that compliance with the international standards will cost the not for profit organisations millions of pounds just to alter their internal accounting and IT systems.

The NHF say that the bigger HAs of the 1200 that exist in the UK will incur costs of over half a million pounds just to comply, while smaller associations, those with less than 3,000 homes under their control will still be saddled with fees well in excess of £100,000.

Change in valuation system could block new builds

The new accounting standards will also see a difference in how the properties belonging to the HAs are valued and the NHF predict that as much as £1 billion could be wiped off the balance sheets of the HAs in total, and put future loans from mortgage providers in jeopardy. The ASB strongly refute the claims and say the new system will make it easier for both the HAs and their subsidiaries to produce their accounts in the future.

Time to consider options

The HAs are not required to make the change over in accounting systems until 2015 which gives landlords plenty of time to consider whether to add to their portfolios. It will also give them time to cost the project. A good understanding of how much a loan will cost, where to get cheap property insurance and how to source a builder for any renovations the project may require are all important factors to consider. The current market suggests that the time is ripe for landlords to invest in more properties, what appears bad news for social landlords may well turn out to be the icing on the cake for private ones.

Tags: Landlord Insurance, private investment, Property insurance, social landlords
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Ex Public Sector workers tempted to become landlords

Tuesday, April 12th, 2011

With many industry experts predicting a bumper year for residential landlords, potential new investors with a lump sum from redundancy payments are looking to enter the business. They would be well advised to research carefully before proceeding.

Inviting prospect

It is without doubt that the well documented job cuts in the Public Sector has seen many high ranking managers leave their jobs with handsome pay outs. The attraction of walking into an industry that is said to be at its most lucrative for many years and that on the face of it does not require many skills, but does require a lump sum, is proving enticing for many middle aged people.

Not quite so simple

They should however, be aware that there is much more to being a landlord than buying a property, purchasing landlord insurance, and locating a tenant. A successful landlord needs to be a successful business person as well. From the outset new entrants to the business should be on their mettle.

Bargain for a bargain

First of all they should purchase their property at the right price. At the moment there are plenty of bargains out there, the stagnation in the housing market has made sure of that, but there still may be room for manoeuvre on any price. A new landlord should ensure he gets his property at the very best price. Even bringing down the price by a couple of thousand pounds may pay such extras as solicitors and agents bills.

Property Insurance a must

Once a property has been secured in the purchase sense it should then be secured financially in the insurance sense. It is imperative that a new landlord organises landlord property insurance that will protect him fully. He should consider a policy that offers cover against malicious damage, accidental damage, rent arrears, legal costs and maybe void periods.

Finding a tenant

His next job is to secure a tenant. He has two things to consider here. Advertising for a tenant can be costly if using an agent, but they do take the hassle out of finding a client and will usually come up trumps quite quickly. Taking care of the advertising yourself should prove cheaper but more time consuming. You can however, advertise in shops around the local area and in local newspapers. Tenants are in good supply at the moment so DIY advertising may well pay off. If you manage to secure your own tenant then it is important to get sound legal advice on drafting a landlord/tenant agreement before the tenancy begins.

Tags: becoming a landlord, Landlord Insurance
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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
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Rogue landlords still hog the headlines

Thursday, March 17th, 2011

It appears that the blight of all good landlords, the rogue landlord, is still around and busily giving other landlords the bad name that has clung to them for centuries.

Despite the efforts of Councils, Governments and ever increasingly, responsible Landlord Associations it seems as though some people will never get the message. Organisations such as the Landlord Association and the Residential Landlords Association spend considerable time educating and encouraging their members to comply with legal requirements, organise essentials such as landlord insurance and to do everything in their control to look after their tenant, who is after all their wage packet, with as much consideration as possible. They must be terribly frustrated when rogue landlords hit the headlines.

Perfect bad example

The perfect example of a rogue landlord once again found its way into the press earlier this week. Early last year, the fire brigade brought a home in Greater Manchester to the attention of the local council. They reported that the tenant living in the property had no running water, no heating, no toilet facilities and the house had a number of smashed windows. The situation was bad enough for the council to immediately find emergency accommodation for the tenant, and for them to warn the landlord that the house could not be let again until it complied with health and safety standards, and other legislation.

Within a few months council officers noticed the house was occupied again and after talking with the new tenant found that the required work had not been completed. The landlord was fined £4,000 this week for not conforming to legal requirements. The legal demands on a residential landlord including compliance of the Health and Safety act are well documented and can be obtained from Local Authorities, Government sources and the websites of property insurance brokers.

It is not rocket science

The requirements are not simple but neither are they hard to organise, and any good landlord will know they not only protect his tenant but they protect him and his property. It is a pity that in a country that now has a high propensity of good landlords that it is still the bad ones that make an impression on the public.

Tags: Landlord Associations, Residential Landlords Association, Rogue landlords
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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
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A good tenant makes life much easier

Thursday, March 10th, 2011

Although being a private residential landlord can never be described as a straightforward profession there are certain factors that can make life a lot easier to cope with. Simple things like good, cheap landlord insurance and a good tenant can make a world of difference.

At a time when landlords in the UK are experiencing one of the best periods for many years, it might seem surprising how highly valued a good tenant should be. Surely with the demand out there for good accommodation, as soon as you lose one tenant then another is clamouring at the door.

A good landlord recognises a good tenant

This may well be the attitude of a bad landlord, but a good professional landlord knows exactly what difference a good tenant can be. First of all the landlords knows that his income is secure, the tenant that pays up on time and without any fuss puts a smile on any landlords face. Secondly, having a good tenant installed in your property means you don’t have to worry about how the home is being treated. Good tenants are a great boost in this respect, although each and every landlord should have residential property insurance the less claims made on the policy then the cheaper it becomes over time to purchase insurance. A good tenant will cause a minimum of damage to the property but also alert the landlord if work needs to be done to keep the place in good condition.

Of course the relationship works both ways. Once a good tenant is ensconced in the property a landlord can invest in good modern facilities knowing that he is increasing the value of the home and it is being looked after.

Seal a deal

For these reasons landlords should consider tying a good tenant to a long lease, it means he will not be losing money from void periods in the changeover of tenants, he does not have to worry about how his property is being treated and need not worry about rent collection. He must remember though the value of these things, and therefore be prepared to make it worthwhile for the tenant to stop. It is well worthwhile offering an attractive rent to secure a good tenant on a long lease

Tags: landlord advice, private residential landlord, tenant
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