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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
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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
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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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Being a landlord requires a lot of work

Thursday, November 25th, 2010

Landlord rights are not be the most exciting thing in the world but there is no disguising the fact that they are certainly one of the most important. The increasing number of people who are deciding to rent their house because it is very hard to sell a property in the current climate means they will be entering the world of landlords without knowing a great deal about their rights as a landlord.

Once a lease has been signed with the tenant, it is the right of the landlord to collect the first month’s rent and the security deposit from the tenant. The landlord has the right to decide how much the security deposit will be. While the amount of security deposits asked for by the landlord could range from one week to three month’s rent, in general a lot of landlords will only ask a tenant for one month’s rent as a deposit.

A landlord is well within their rights to deduct money from a tenant’s security for a number of reasons which include the tenant or their occupants causing damage to the property due to abuse or neglect. If the tenant moves out and still owes rent or have not paid any utility bill, the bill will be paid using the security deposit with the remainder being given back to the tenant.

It is also the right of a landlord to receive full rent payment from the tenant each month on the date stated on the lease agreement. However, if it is a fixed term tenancy, the rent cannot be increased until the lease has expired. If the agreement is a week to week or month to month contract, the rent can be increased at any time as long as the tenant is given written notice of the increase.

Owning a rental property and not buying landlord insurance can be a very risky mistake as there are so many things which can go wrong. A private landlord will generally be exposed to many more financial risks compared to the average home owner. The good news is that landlord insurance will give a much wider range of coverage such as protecting the landlord from any loss of rent, any loss from tenant lawsuits (landlord liability insurance), and damage to the property by the tenant. Owning a rental property can be highly profitable but it can also be highly expensive if insurance is ignored.

Posted in Insurance Guides | 1 Comment »

A background check needs to be done on all prospective tenants

Tuesday, November 23rd, 2010

As a landlord, choosing the right tenant will eliminate a lot of headaches in the future. Landlords can now obtain search reports that enable them to screen all potential tenants by providing them with a background check on their potential client. In fact checks are just as important as having landlord insurance. No landlord wants a bad tenant and it is vital that they are found out before any contract is signed. A landlord wants a tenant who will pay the rent on time, look after the property and stick to the rules of the rental agreement.

For some landlords, screening a tenant may seem like a lot of hard work but in truth it is quite simple as long as they know the right steps. A landlord will often employ the services of a third party to conduct the background check on prospective tenants. The findings of this check will give a good indication of the tenant’s character which is based on records and past behaviour.

The background check will also help to verify that the applicant is who they say they are. With identify theft on the increase it is vital to know who the tenant is. The background check will reveal if the tenant uses any aliases and whether they are using their own details. If any other people are linked with the same details, it may be an indication of identity theft.

The landlord will use the results of the background check to confirm the applicant’s current address and who the property owner is. If a renter has been having problems with the current landlord, they may put down a relative or a friend’s address as their current place of residence. The background check will help to confirm the all the information on the application. A background check will also help to minimize the risk of evicting a tenant. The eviction process can be a lengthy one and when evictions are needed the landlord will quite often incur a financial loss.

Criminal activity will often be the deciding factor when a landlord makes a decision on approving the tenancy application. Renting to a tenant who has a criminal history may create problems for a landlord in the future. If a tenant with a criminal record were to create problems for other tenants in a property, the landlord may find themselves in the middle of a legal situation.

Tags: background checks, landlord advice, Landlord Insurance
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Create a room to relax and enjoy

Tuesday, November 16th, 2010

For landlords providing rooms in properties of multiple occupations a games room will provide a relaxed environment to either an individual or a whole family using the room. Since this type of room is essentially meant to be used to unwind, the choice of colours and design used should not be too formal.

A games room needs be convenient for everyone to use so it is important that the room has a spacious feel. A congested room will only make the room look cluttered and take away the leisurely feel. If the games room is going to have a sports look, it will more than likely be more expensive so always make sure your landlord insurance will cover the merchandise in the room.

If it is a big room, a pool table can be the focal point while a mini fridge to keep the drinks cool and a jukebox will keep the music flowing. A jukebox will also give a nice retro feel to the room, and the retro feel can be added to with some neon lights. Anyone who loves sports or films will enjoy watching much more if a projector is installed in the room. A projector is perfect because it will not occupy too much space. If the room is smaller a football table instead of a pool table can be added to keep everyone entertained.

While designing a games room, the furniture used will make a difference in the overall appearance. Depending on the size of the room, a sofa with leather furnishings could be chosen with a few chairs in the corner. Maybe a cosy little bean bag chair which will come in useful if the room is being used after a hectic day’s work or a tiring game. For anyone who loves to play video games a couple of leather recliners will add style and enjoyment. It is also a good idea to have a small table to keep any snacks and drinks safe during the game sessions.

An array of accessories can be added to a games room which will make it visually pleasing. For anyone who loves creativity, try making make a collage of a favourite sport which can be changed regularly and try adding a retro feel to the room by adding some posters of yesteryear, supplemented by the use of shirts in colours of a favourite team. A well decorated games room is essential to create a relaxed ambiance. The main aim of the room is comfort. A games room which is visually appealing will go a long way to help both family and friends unwind.

Tags: insurance advice, Landlord Insurance
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Housing industry at the crossroads

Wednesday, October 27th, 2010

The cut in housing benefit, the housing shortage, the difficulty in getting a mortgage and the declaration by the government to enable social landlords to achieve up to 80% of the market value rents are just a few of the highlights of the average landlords year.

Never can the industries that are linked to the housing sector have been overwhelmed with so many seismic changes that are happening at the moment. Never can so many experts from one industry have such varying views.

The cuts to Local Housing Allowance have seen charities and local authority politicians suggest that London will witness a massive exodus as tens of thousands of tenants in the inner boroughs of London are forced to up sticks as they can no longer afford the rent on their home.

The very same cuts have seen experts from charities as well as Local Authority politicians say the cuts will force rogue landlords to stop charging extortionate rents and bring back a touch of sanity to the London rental market.

Landlords and tenants who have not really been asked their opinions wonder and wait. It is true that many Landlords around the capital have vowed not to lower their rents at all. That is possibly a knee jerk reaction that is quite natural when they feel they are being attacked. Tenants know that if they are on Housing Benefit then their next 12 months may be bumpy, but those in low income employment also know that the dirty jobs still have to be done by someone.

It is rumoured that councils are already block booking bed and breakfast accommodation in boroughs of London for next year when the cuts come into effect. The whole industry is in flux!

Many commentators think that the situation could be overcome in double quick time if only the banks would loosen their purse strings. Although industry experts say the days of 100% mortgages have gone forever, both residential landlords who are looking to extend their portfolios and young professional couples and families who are desperate to either get on the ladder or move up it, are just waiting for the chance to buy properties that don’t demand unreal deposits.

Behind these are builders keen to build and insurers eager to sell landlord insurance or home insurance to the new homeowners. Of course there are even more allied trades waiting for the chance to get back to new builds and renovation projects. It is fair to say the industry waits on the banks.

Tags: housing industry, Landlord Insurance
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Damaged drywall can be easily fixed

Tuesday, October 19th, 2010

Everyone will know how easy it is to accidentally put a hole in drywall; it could be from a door handle, maybe something falling over, or even from children playing. Happily drywall is fairly easy to fix, especially if it is a small hole, It is something that even a novice DIY person can tackle and save paying for a tradesman. If the hole is quite big i.e. anything bigger than 12 inches, it is probably better to replace the whole sheet of drywall rather than making a large patch. Whether the property is rented from a landlord who has good landlord insurance or it is your own property, a hole in the drywall does not mean having to panic.

In the past when there was a hole in drywall, a contractor would arrive, square up the hole and then put in some wooden braces which would support a new square of drywall. However times have moved on and now there are aluminium patches, which will go over the hole without the need to square it up. This aluminium patch is strong enough to fix larger holes, yet it is also thin enough to be covered over with a layer of drywall joint compound. They work in the same way as traditional drywall tape works, where a layer of drywall joint compound is put over the mesh, left to dry, and then 24 hours later a second coat is put on with a larger trowel. The area is then sanded down.

Cracks can quite often occur when the property starts to settle, so it is not that strange to find cracks in a drywall in new and old houses. A crack is very easy to fix by taking a utility knife and make a v-shaped channel along the length of the crack. Fill the crack with some drywall joint compound and then apply some mesh tape over the top (unlike a hole where the aluminium patch works well, it is highly recommended that mesh tape is used for cracks). Once the tape is applied, cover it with some drywall joint compound and feather out the ends. When it has dried, keep feathering it out on the second application and when it has dried, sand it to a smooth finish.

The most common reason for fixing the drywall is filling in old screw holes or nail holes from pictures which have been attached to the wall. Again fixing this is very easy. Take the end of a trowel and tap in the edges of the hole and create a small crater. If the drywall is loose, screw in a new fastener just underneath the hole, then spackle and trowel over the hole, making sure it is filled completely. Wait until it has dried then sand until smooth.

Tags: Advice, DIY, Dry wall, Landlord Insurance
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Do not ignore a water damaged wall

Tuesday, October 12th, 2010

Having water damage to the plaster in the home can look very unsightly. Not to mention that once the plaster gets wet there will be an increased potential for mould problems in the future. Repairing the plaster that has been damaged can be easy if the correct materials are used. The cost of this depends on the size of the damaged area but normally the job will not be too expensive.

When the plaster gets wet the water will activate the lime, causing bubbling on the surface. The damage could be small with just surface bubbling or it can involve the whole plaster coat. The problems often start as the plaster dries, then the putty coat may form a rock hard shell. Always inform the landlord if the property is privately rented as they will have landlord insurance and will want to look after the property.

To repair plaster damage, all of the loose wall material must be removed by scraping the area using a putty knife. This will include all the bubbles and peeling paint. Then draw a square around the water damaged area using a pencil and a carpenter’s square making sure that a couple of inches extra on all sides of the damage is allowed, this will make sure all the damaged plaster is repaired. Cut out and remove all the plaster within the affected area with a utility knife. This could need doing a few times to remove all the plaster, doing this will insure the job will be completed better. Place a fan by the open area on the wall and run until the wall surface feels completely dry. If the wall is not completely dry moisture may get trapped in the wall and this could cause mould problems in the future. Smooth some joint compound into the area using steady and even strokes with the trowel. Make sure that there are no low or high areas and definitely no air pockets. Then let the compound dry for a full 24 hours.

Finally sand the area lightly with some drywall sandpaper which will smooth out the ridges or high spots that could have appeared during the 24 hours drying process. Use a damp cloth to remove any drywall dust that was made from sanding and re-paint the area.

Tags: Advice for Landlords, DIY, Landlord Insurance
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Check your tenant

Thursday, August 12th, 2010

Any good landlord or landlady realises the value of a good tenant. It makes life so much easier when the property that represents the means of employment, and possibly the pension at the end of one’s working life, is inhabited by someone who values the place as a home.

A landlord can get some sort of financial security by requesting a deposit from the tenant at the outset of the let, but this is often a bone of contention throughout a tenancy, and most good landlords would willingly exchange this guarantee for a tenant they know and trust.

It is then important that when a landlord advertises for a new tenant that every possible check is done to ensure that the prospective habitué is exactly who they say they are. Obviously the first place to start with this is with the tenant themselves. If they are serious about renting a place and want to have a good landlord then they should not object to a few searching questions. Proof of identity can be easily obtained by a passport and maybe a bill from their last place of residence. A water or electric bill would be ideal for this. Another idea is to ask if they have a reference from their last landlord, or even if they are local maybe it is possible to check with their last landlord yourself.

If a landlord is signed up to a landlord association such as the National Association of Landlords (NLA) or the Residential Landlords Association (RLA), then he can probably pay to get checks done on individuals at a reduced rate. Many tenant check schemes offer results within 24 hours, which lessens the chance of a landlord losing a good tenant as well as avoiding a nightmare one. Membership of such an organisation may also help in reducing the cost of a landlord insurance policy.

The other alternative to this of course is to pay out some extra money and secure the services of a Letting Agent. Most, if not all, will offer a complete management package of your property which will take the day to day running of the business out of your hands. A great idea for some, especially absent landlords but not so appealing for the professional who likes to keep an eye on his business.

Tags: Advice for Landlords, Landlord Insurance, NLA, RLA, tenants
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