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Landlords with empty properties between tenants

Wednesday, December 22nd, 2010

Typically, when a tenant moves out, there is likely to be a period when the property is empty before a new tenant moves in. Every landlord wants this empty period to be as short as possible because each day will be costing money. This empty period means there are some jobs which a landlord needs to do.

As soon as a tenant leaves, it becomes the responsibility of the landlord to pay council tax on his property. However, any property that remains empty and unfurnished will be entitled to exemption from council tax for up to six months. Just contact the local council tax office and notify them that the property is empty. All the utility bills should be transferred back to the landlord’s name because as with council tax, the landlord also becomes responsible for each utility bill during any empty period. It is very important for a landlord to take readings of the gas, electric and water (if there is one) meter on the day the tenant leaves the property, and then contact the utility providers with up to date meter readings. They will then change the accounts over to your name. Then take the meter readings again when a new tenant moves in, that way you incur charges only when the property is empty.

Take the opportunity to fix anything which is broken during a void period, this is a much better idea then waiting until the new tenant reports that it needs fixing. It is much easier to maintain a property while it is vacant because it saves having to give the tenant notice and then arranging a convenient time which suits the landlord, the tenant and the tradesman involved in the repairs. To reduce costs and also for safety reasons, ensure all of the gas and electrical appliances are turned off. Some plug sockets will have fuse lights and these can be flicked off, even with no electrical appliance plugged in the LED in the socket will still be using power, even if it is just pennies. If the property has white goods, then it might be a good idea to turn those appliances off and leave open the fridge, freezer and washing machine doors to avoid any nasty odours.

Ensure the timer settings for the hot water and heating are disabled. Failing to turn off the timer may result in utility bills for services that were never needed or realised were actually being used. However, if the property is going to remain empty for longer than a week during cold winter periods, it’s a good idea to occasionally allow the pipes to warm up by turning the heating on. This will help to prevent the pipes from freezing over, and making them vulnerable to bursting.

When a new tenant does move in, make sure your landlord insurance policy is up to date and gives comprehensive cover should the worst happen.

Tags: Advice for Landlords, Landlord Insurance, Landlords Insurance
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Deciding if your home is rentable

Friday, December 17th, 2010

As the housing market continues to stagnate, more homeowners are considering turning their homes into a rental property. They should think very carefully before making any decision. It may seem like the ideal solution if the property is not selling, but prospective tenants in today’s marketplace can be choosy, and if the property is not up to the high standard they are looking for, a homeowner could be left with an empty property, no income from it and a mortgage to pay.

The main factors that will determine whether a property is suitable for letting is its location, what type of property it is, and the condition it’s in. No one will want to rent a property that is in disrepair. A tenant will not settle for a badly kept property any more, this is because there is a lot of competition in the rentals market. Tenants are normally looking for a property which has a clean modern bathroom and a fitted kitchen. If the property is large with many bedrooms, close to transport links and close to a university or college, it will be very popular to the student market.

Letting an unfurnished property is popular but remember that even a property classed as unfurnished will very often be let with appliances such as fridges and washing machines. When it comes to the fixtures and the décor, never cut corners. Try and have higher quality appliances for a tenant, and update the bathroom fittings. It is vital that the property is in good condition when showing people around. Redecorate in neutral colours and replace old carpets and curtains. Having blinds instead of curtains will make a property more appealing to a new tenant. These small details will make the world of difference to a potential tenant. It is important to realise it is not the same as selling a property, where people will see the potential to change the home. They will be tenants and not owners, so they will have to live with the décor, and if they do not like it they will not want to move in.

Do some research and look into the local demand for similar properties and what the future is likely to hold. Never forget about buying landlord insurance for protection. Think about void periods and how any overheads will be covered. In reality when letting a property to make any money, at least 125% of the mortgage payments need to be received in rent. Otherwise it just won’t be a viable financial option

Tags: Advice for Landlords, Buy-to-Let Insurance, landlord advice, Landlord Insurance, rental market, tenants
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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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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
Posted in Best Practice Guides for Landlords, 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
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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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A letting agent can help being a landlord less stressful

Tuesday, November 30th, 2010

A landlord does have his own rights and owning a property with tenants can cause a lot of stress. As an owner, one very important question should be asked; Do I manage the property myself or employ the services of a letting agent?

A letting agent will know the process inside out, from marketing the property, leasing and finally occupancy. A professional firm will know what is best for the property and be skilled in all aspects of renting, and they will follow through up to the day of occupancy. There are a couple of important advantages in having an agent.

Firstly they will carry out a professional screening of all suitable tenants. This will include credit checks and a criminal background check, employment verification and any previous rental records. Secondly they will know what to do if it becomes necessary to evict a nightmare tenant. A problem tenant may know exactly how to use the legal system to their advantage if the landlord is inexperienced.

Apart from the two important tasks, a letting agent will also advertise and show the property to all the prospective tenants; confirm the transfer of all utility bills into the new tenant’s name; provide the lease agreement and obtain proper signatures before the tenant moves in; collect and account for the rents and deposit; arrange the first and final walk through, making note of the property condition, prepare a security deposit statement and provide a statement each month of all income and expenses plus they can give a full recap at the end of each year for taxes.

For a new landlord who will know the importance of landlord insurance but has never used a letting agent before, finding a decent one can seem like an extremely daunting job. Metropolitan and suburban areas are plentiful with agents all of whom want the business. As with most things, the best way to find a good agent is word of mouth. Browsing the web is another good idea and most established agents will have their own websites. The most important thing is to take time to shop around and always ask a lot of questions to each agent. Be clear on the agents charging structure including what is included in the fees and what isn’t. Most agents will charge a percentage of the monthly rent of the property as the lettings fee. Sometimes this will include a small fee for collecting the rent, but more often than not the rent collection will be charged on top. Unless a landlord knows what they are doing, having the services of a letting agents will be money well spent.

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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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Don’t ignore the room under the house

Thursday, November 11th, 2010

A basement or cellar is notorious for being a damp, musty place. But by waterproofing the room it can save money in the long run. If there is an existing leakage problem the root cause will need to be found. Instead of replacing both the walls and the floor there are a few waterproofing tips which will help find and then repair the cause ensuring the basement can be kept dry.

If the house is to be let then the owner will make sure that the basement is protected as they will not want to claim on their landlord insurance policy.

A lot of leakage problems emanate from water seeping through the walls and then seeping into the joints where the walls and floor meet. Small cracks /chips and any other damage (no matter how small) to the concrete will be an open invitation to water. Start by cleaning and repairing any damaged areas by patching the concrete. When all of the cracks have been repaired, seal the concrete. This is done by simply painting sealant onto the interior side of the concrete.

Hydrostatic pressure could be a problem for some homeowners even if the concrete has been sealed. It is important to have a good drainage system in place. Drainage problems will require a lot more work than simply painting on a sealant; but remember when it comes to waterproofing it is very important that a drainage system is in place.

Check and make sure that the gutters are not blocked and the drainpipes are working properly. All the drains and pipes should be checked at regular intervals for blockages. The best time to do this is just before winter. Extending the drain spout so that any rainwater is brought farther away from the house will help with the waterproofing. Also check the sump pump (if there is one) to make sure it is in good working order.

A lawn which slopes towards the house will invite water drainage problems. A good drainage system will include having the lawn graded properly. It may be necessary to change the lawn so the slope goes away from the home. This will require building the ground up so that the area closest to the house is the highest.

Another waterproofing system involves sealing the concrete walls except the last three inches closest to the floor and then putting in a good drainage system which will collect and channel all of the water out. A system like this is not very difficult to install and can be easily hidden by building materials.

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