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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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Part time landlords offered advice on how to pay their taxes!

Tuesday, March 8th, 2011

Although there may still be 508 days to the start of the London Olympics, there are many people already looking on the Games as a potential money earner.

The tickets for the London games actually go on sale at the end of this week and there is a massive difference in the price of seeing different events. The opening ceremony and blue riband track and field events final days come in at hundreds of pounds while other tickets are as cheap as £20. All the more reason then, for some part time landlords, to look for a good deal on landlord insurance when they put their residences up for rent during the period of the Games.

Inland Revenue keen to hit the ground running

There are many families in areas around the stadium already planning to make money out of the Games by becoming landlords for just a few weeks. In fact Her Majesty’s Revenue and Customs (HMRC) office is setting up a special workshop to educate these part time landlords on just how to plan their nice little earner.

The workshop is entitled “Income from property” and is aimed at homeowners looking to turn their home into a let for the duration of the London Olympics, and the letting agents the homeowners may turn to for advice. Of course any home let out to tenants has to comply with certain health and safety laws plus other legal requirements. On top of that the prospective landlord will need to get insurance protection for his home and the tenants. He must determine for instance if he needs holiday home insurance or some other form of property home insurance.

Admission to church free, not the same for the Games

It goes without saying that the HMRC are going out of their way to remind homeowners of their legal rights and tax obligations when earning money from a new source. Those wishing to find out exactly what cut of the extra income should be handed over to HMRC can find out on Friday March 11th at 13.30 at St John’s Church at Broadway, Stratford, London and there will be no charge. You never know, by the time the HMRC have taken their cut you may well be able to afford a ticket for the Games.

Tags: Part time landlords, taxes
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Decorate or evict? The dilemma facing few landlords

Thursday, February 17th, 2011

It is not easy being a landlord! That statement will not always elicit a response that is either printable or fair. The public perception of a landlord over the years has been poor to say the least, and although the misconception that he is a monster and has no regard for his tenants is slowly dissipating, it is still fair to say that apart from his landlord insurance provider he still has some way to go before being described as popular.

Landlord from hell?

A recent case in the USA probably shows why! A real estate mogul in Massachusetts is being sued by the Attorney General’s Office for all sorts of housing law abuses including; anti-discrimination, consumer protection, eviction and toxic substances. Yes that’s right toxic substances. Apparently the landlord preferred to evict tenants with small children rather than re-decorate the property using paint that was compliant with Health and Safety regulation. As mentioned previously the landlord was also being sued for his behaviour towards tenants in many of the 24 properties he owned.

It seems inconceivable that anyone running their business badly can manage to own 24 properties; it would certainly be difficult in the UK today. The great majority of investors in the UK today are good landlords simply because the business model demands it. Anyone running a business knows they have to keep on top of the business or it declines, a landlord is no different. He has to consider, first and foremost his tenant, without a tenant the business is dead in the water.

Keeping on top of the job

The law demands that Health and Safety legislation is adhered to, there are financial laws governing the keeping of tenant deposits and more and more local authorities are requesting landlords to sign up to voluntary agreements. All of these measures are in place to protect the tenant. There is little wonder then that the professional landlord seeks the protection of residential property insurance.

The truth is, it is not easy being a landlord in the UK today but those that take a professional approach to their business find it much easier and more rewarding than those who view the job as nothing more than rent collecting.

Tags: Advice for Landlords, dilemma, landlord advice, Landlord Insurance
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Sun continues to shine for landlords in the South West

Tuesday, January 25th, 2011

As property owners in the South West prepare to sort out their landlord insurance for the coming year, they will take great heart from the latest surveys by both letting and estate agents.

Although online letting agents LSL Property Services recently reported that December 2010 proved to be a disappointing end to what proved to be a fairly good decade for most landlords, as rental prices eased slightly, those in Devon, Cornwall and Somerset still saw their profit margins maintained.

Is the South West a good investment for landlords?

With an average rent of £637 the South West does not compare with the rates achievable in the capital, but many landlords will be delighted by the 1.7% increase in December. Industry experts, shocked by the general fall in rental prices across the UK last month will also be mildly surprised by the growth in a part of the country where increases in the winter months are far from the norm.

Property owners in the area will also be delighted by the promising figures released by the Land Registry recently. They suggest that the South West is the only region in the country outside of the capital that is still experiencing house price increases. Although less than 1%, the increase means homeowners in the area are seeing their investment grow which can only be good news in the current climate. The combination of the two factors means landlords in the South West will be looking at increased rental yields on their books and can go forward and buy property insurance on new projects with more than a modicum of confidence.

Does landlord insurance cover void periods?

Of course the region sees a fair amount of seasonal readjustment to its figures because of the lucrative tourist industry. This can mean a bonanza for some landlords in the summer and is further reason to rejoice at the December figures. As a rule the winter months, with the exception of Christmas week, often generate little income for some landlords, many of whom actually take out empty property insurance over this period.

Winter is usually a period for consolidation and gives some landlords the chance to update their properties in time for the onset of the summer and spring season where they hardly have time to draw breath. The advent of updating and upgrading properties means that landlord insurance policies must also be constantly evaluated, but this is no problem for the organised landlord especially one who is seeing his business booming.

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

Kiwi’s one step ahead of UK counterparts

Tuesday, January 11th, 2011

As landlords in the UK look forward to the announcement by Housing Minister Grant Shapps on landlord/tenant relations today, it seems that their fellow property investors in New Zealand are one step ahead.

It is anticipated that the announcement by Grant Shapps today will enable landlords in the UK to get rid of bad tenants a lot quicker than the 12 months or more it can take at the moment. And although the new plan should see improvement in moving on rogue elements, charities such as Shelter are already making noises that they will closely monitor the changes as they are worried it will increase the number of homeless people.

In New Zealand legislation went through in October which seems to have cleared the air somewhat for both landlords and tenants. The Residential Tenancies Amendment Act (RTAA) covers several contentious areas of tenant/landlord agreements.

The main area of concern was the 90 day period after a fixed term tenancy came to an end. In the past a landlord could ask a tenant to leave immediately in this period or indeed a tenant could walk out of the property without notice leaving a landlord with a void property. From now on the 90 day period no longer occurs. A fixed term tenancy automatically becomes a periodic tenancy when the contract expires, giving both landlord and tenant breathing space to sort out their future plans.

The act also covers areas such as health and safety issues, fire regulations and the behaviour of tenants and landlords. In similar vein to the plans Grant Shapps is expected to announce today in the UK, tenants in New Zealand now have new responsibilities. It will become unlawful to harass neighbours or exceed the agreed number of residents in a property. A fine of up to $2000 can be imposed on miscreants and a fine of $1000 can be levied on tenants who refuse to leave their property.

Landlords are also asked to fulfil their part of the bargain and now must maintain their properties to a certain standard and if they don’t can be fined up to $3000. On the bright side, landlords can now dispose of belongings left behind by former tenants if they do not collect it within a certain time frame.

All in all the act has been well received because it lets both tenant and landlord know how they stand with the law, and with this in mind landlords can go out and buy landlord insurance for their properties knowing exactly what they need to get cover for.

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

How to Be a ‘Green’ Landlord

Thursday, January 6th, 2011

There is no denying the fact that being green is the in thing to be. Consumers across the UK are attempting to save both money and the climate by trying to reduce their carbon footprint. It makes sense that anyone looking at renting a home from a landlord is now more aware of green issues and considers the energy efficiency of a property when it comes to looking for a place to live.

For over two years, landlords have had a legal duty to show all prospective tenants the current Energy Performance Certificate score of the property they are interested in renting, on request. No longer can a landlord buy landlord insurance and just sit back. As more and more landlords try to make their property as attractive as possible to tenants by installing energy efficient products, competition in the sector escalates.

Renting from a landlord appeals to students and people who are looking to save money before jumping onto the property ladder. So it is obvious that the more money a landlord can save them with good energy efficiency, the more attractive the property will be. Possessing a good energy efficiency rating is something that is worth showing off to everyone who comes to view the property.

There are a few schemes which can help a landlord get a property improved as far as green credentials are concerned. One of the best is the boiler scrappage scheme which gives a £400 voucher to help with the cost of installing a boiler that will be G-Rated. Other ways of becoming greener include installing double glazing and getting both efficient and up to date insulation fitted. This should include the loft and the hot water tank. Replace worn out appliances with the most energy efficient products possible, this is easy to do as they all have their ratings displayed on them and maybe install a smart meter so that the tenants can monitor their energy usage.

Some local councils will offer grants for different home improvements but it depends on which area the property is in, so it’s worth giving the local housing team a call to see if any assistance is available. Making the home energy efficient does not just make the tenant happy, it can also help to get a better return on what is a big investment for any landlord.

Tags: Advice for Landlords, eco friendly, landlord advice, Landlord Insurance, landlords
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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 | 1 Comment »

Tenants with pets can be a good bet

Friday, December 10th, 2010

Some landlords think of pets in their property as a ticking time bomb while others see it as a good way to attract more tenants and charge a higher rent. There are both advantages and disadvantages of renting to people with dogs and other pets and landlords have different views on whether it is right for a rental property.

Many landlords who have landlord insurance are not willing to accept pets in a rented property, but those who do will instantly expand the number of tenants to choose from. In fact there are a small number of landlords who actually prefer renting to a pet owner because they find them to be much more responsible. Another bonus of renting a property to a tenant with pets is that they are more likely stay there longer as it is harder for them to find another landlord who will accept them. Essentially, a landlord will find tenants a lot quicker if they allow pets, which will ultimately save them money.

A landlord who allows a tenant to have a pet will sometimes ask for a pet deposit. This works just like any other security deposit and a landlord can deduct money from it to pay for any cleaning needed or any damage that the pet has caused. As well as the pet deposit, a landlord will sometimes increase the monthly rent, and a tenant with a pet is usually willing to pay more rent in order to keep the pet, as long as the rent increase is not unreasonable.

A landlord who refuses pets does not mean that they are pet haters. Sometimes they may just be ill-informed or more likely, they have had a bad experience with pets and their owners in the past. An untrained pet will have the potential to cause a lot of damage to a property and if they are not toilet trained, they could cause some nasty odours and stains around the property. A dog who barks constantly, a cat meowing or even chirping from birds could lead to noise problem especially if the neighbours live close by. The last thing a landlord wants is to have to deal with complaints from the neighbours and other tenants all the time. A good landlord will make quarterly inspections of their property whether they allow pets or not, but especially if a tenant does have a pet, so they can monitor how well behaved and clean the pet is.

Tags: Advice for Landlords, landlord advice, Landlord Insurance, landlords, Landlords Insurance, Tenants with pets
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Having good tenants can avoid a lot of trouble

Monday, December 6th, 2010

Two elements that make a landlords life more comfortable are property insurance and reliable tenants. If the tenant turns out to be a nightmare, evicting them from the property doesn’t have to be. While evicting renters should always be only as a last resort, sometimes as a landlord it is the only course that can be taken.

When to evict a tenant

A landlord should not evict a tenant simply because they feel like it. But there are three main reasons why landlords need to try and get the tenant out of the property.

The main reason a landlord starts an eviction process is when the tenant does not pay the rent or has accumulated a large amount of rent arrears. Reason two is for a breach of lease terms, this will include a variety of situations for example; animals or extra people living in the property, noise complaints, illegal activity and any damage to the property. The third is when the lease has ended and the tenant does not leave.

Finding a good tenant is regarded by most landlords as the single most important thing when letting a property. Having good tenants will be worth a lot of money, but if they’re bad and cause trouble there may be no option but to evict the tenant. So it’s always important to pre-empt disaster, and the inherent difficulties of eviction, by carrying out checks on the tenant before they move in.

Property insurance & Choosing the right tenant

Ideally a landlord should choose a tenant who has a permanent job and who wants to stay in the property for a long period. They should get and check references, especially from the tenant’s employer, and also try to get a tenant who has a very good employment history. Also a credit check will tell a landlord if the prospective tenant has had any County Court Judgements.

A landlord should always try and deal with any problems quickly because by ignoring them, they could get worse. Try and avoid any confrontations with a tenant and also try to be reasonable. Every option should be tried before taking the steps leading to eviction. Many tenants may fall victim to health or work problems and will want to work with a landlord in an effort to stay in the home. If a landlord wishes to avoid the cost and upset of having to evict, it is a good idea to recognize which tenants are going to be worth negotiating with.

Any landlord thinking of evicting a tenant should consult someone with legal experience as failure to give proper notification and meet all the time deadlines may result in denial of the eviction petition by a court.

Tags: Advice, Advice for Landlords, landlord advice, Landlord Insurance, property advice, Property insurance
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New Green Deal threatens landlord’s purse strings

Tuesday, November 2nd, 2010

It seems that the ongoing initiative by government agencies to make our home environment ever ‘greener’ could impact on the pockets of some residential landlords.

As Chris Huhne, the minister for energy and climate change, lays down the concept of his ‘New Green Deal’ some landlords will be fearful of what lies in store for them.

The New Green Deal aims to increase the nation’s perception of energy consumption and to increase the insulation in all the UK’s 26 million homes. With the aid of big business the government is planning to induce homeowners across the country to take out ‘pay as you save loans’ to facilitate the conversion of properties into super insulated dwellings.

It is envisaged the loans could be up to as much as £10,000 and will allow householders to purchase energy saving products such as loft insulation, wall insulation, double glazing and different types of renewable energy. The government hopes that companies such as giant supermarket chains as well as national DIY stores will fund the project as the homeowner pays back the loan from money saved on fuel efficiency.

The one blot on the landscape for the scheme is properties owned by residential landlords. The architects of the plan envisage a poor take up by landlords because as they don’t actually pay the energy bills for the property then they will not be concerned about the fuel savings.

On the other hand a landlord with half a dozen properties will be faced with logistical problems sorting out loans for the properties and having the work carried out. It is a problem.

It is widely thought that the new scheme will include legislation to force landlords to install energy saving insulation at the behest of tenants or the local authority if they deem the property badly insulated.

Not surprisingly landlords who already have to comply with lots of compulsory legislation will be worried about anything more that is compulsory. Most landlords will be hoping the scheme will be more advisory where there is an option to purchase such as the case with landlord insurance. All landlords accept insurance cover is vital but know it is not a legal requirement.

Whatever the case, landlords will know their fate soon as the initiative should be in place inside the next five years.

Tags: landlord advice, Landlord Insurance
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