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Posts Tagged ‘Advice for Landlords’

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 »

Landlords prepare to haggle over Southern Cross situation

Tuesday, March 22nd, 2011

It appears that many landlords across the UK are going to come under increasing pressure from the position of failing care home provider Southern Cross Healthcare.

Questions in the House

The company which is reckoned to be the largest independent home care provider in the UK has been experiencing problems for some time now and as previously reported is hoping that landlords will be receptive to renegotiating their rental charges to stop the company collapsing. The issue is serious enough to have been mentioned in Prime Ministers Question Time last week.

The company which owns 750 homes spread across the UK is responsible for the care of over 31,000 old people and is the employer of well over 40,000 staff, has undergone a big reshuffle of the boardroom and introduced one new member specifically to bring landlords around the table in an attempt to get them to lower their charges. The man in question, Tim Bolot may not know too much about landlord insurance but certainly is skilled in the art of financial restructuring.

Will landlords suffer a knock on effect?

The result of the talks between Southern Cross and their landlords will be watched with interest by many landlords in all areas of the UK. The problems that are engulfing Southern Cross at the moment are being experienced on a much smaller scale by tenants in each and every town and city. The austerity measures, cuts to the public purse and the spiralling fuel bills are making each and every one of us look at ways to cut our expenditure. Many landlords will be fearful that the result of landlords cutting their rents in such a high profile case will lead to calls from their own tenants to have their rents lowered too.

Choices to be made

Of course landlords also suffer along with others in times of austerity, cheap property insurance can be found if they look around, and they can try and keep a check on their outgoings in other areas. For many though, the choice between losing a good tenant or lowering their rents may be one that they have to consider if the Southern Cross situation is resolved by landlords acquiescing to their demands.

Tags: Advice for Landlords, independent home care provider, Landlord Insurance, landlords, Southern Cross situation
Posted in Landlord Insurance | No Comments »

Landlords opposed to tenant website idea

Thursday, March 3rd, 2011

The recent suggestion by a Government backed consumer think tank has caused controversy in the letting sector and led many landlords to take a good look at their current landlord insurance policy.

Consumer’s champion

Consumer Focus describes itself as the statutory champion of consumers in the UK and often helps consumers get a fair deal from the energy companies and other utilities. It has strong legislative powers and took it upon itself last week to suggest that the private sector of the housing industry should do more to help tenants, private tenants in particular.

Website for tenants

In fact Consumer Focus asked for a website to be set up where tenants can rate their landlords. This after a survey suggested that only 15% of tenants could find information they needed about their landlord or letting agent. The website would allow tenants to give judgement on their landlords over a variety of issues and they could leave feedback on the website. Consumer Focus believes this would help unsuspecting tenants avoid rogue landlords and also help to higher standards of accommodation throughout the sector.

Landlords not so sure

Landlord organisations do not see it the same way. The website suggestion has brought a barrage of protests from many organisations representing landlords who believe tenants already have the right for redress through the Ombudsman Scheme, Trading Standards, the Association of Residential Letting Agents and the National Property Federation.

They also believe the website will be open to both tenants and indeed rogue landlords to bad mouth landlords unscrupulously. However, 9 in 10 tenants in private accommodation thought the website was a good idea and with social network sites hogging attention nationwide at the moment it is more than likely the idea could be put into practice, just one more reason for landlords to ensure they get a property insurance quote immediately.

Good information has a price

Consumer Focus point out that already many landlords obtain lots of information about tenants and their backgrounds before they even sign a contract with them, which of course is true. No professional landlord should expose himself and his business to unnecessary risks. It is worth saying though that landlords pay for the information and view it has a business cost. The information is gleaned from official sources and therefore should have more than an element of truth about it. An open website is not exactly the same thing and that is what worries landlords the most.

Tags: Advice for Landlords, landlords, tenant website idea
Posted in Landlord Insurance | No Comments »

Landlords responding to demand

Tuesday, February 22nd, 2011

As the need for good accommodation becomes ever more pressing, it seems as though private residential landlords are rising to the challenge. It appears that landlords around the country are going out and buying landlord insurance policies to cover the new additions to their portfolios.

Day of reckoning

With the impending cuts in Local Housing Allowance drawing closer by the day, Local Authorities around the UK have been drawing up contingency plans to cope with an explosion of homeless families. Many councils fear that private landlords may well start evicting families who can no longer pay their rent due to a shortfall in their Housing Allowance.

Reports of inner London councils mass booking bed and bedroom accommodation properties around the Capital have been rife, as Landlord Associations affirm that their members will not pay for the country’s spending cuts out of their own pockets.

Landlords opening their wallets

It does seem however, that landlords are coming to the rescue. The latest figures from several sources in the sector show that investors are suddenly taking up more buy-to-let mortgages. The last quarter of 2010 showed that buy-to-let mortgages had attracted 7% more business than the third quarter. The loosening of the criteria for getting approval is thought to be a big factor in this, especially Loan to Value demands. The first figures of 2011 may even be better, as since the turn of the year more mortgage providers have entered the market and a lot more products have suddenly become available. It would seem as though landlords are quite willing to go out and buy new properties as long as they know they have good rented property insurance as back up.

Direct payments will help

The good news from the Welfare Reform Act this week will also help. At long last it seems as though the Government have got the message about direct payments to landlords. The difference this will make to landlords considering to go out and extend their portfolios cannot be underestimated. For a landlord to know he will be paid on time makes a massive difference to the way he views his tenant and his property, it is perhaps the best news landlords have had for some time, and that is saying something in what has been quite a remarkable 12 months for those in the Letting industry.

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

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
Posted in Best Practice Guides for Landlords, Landlord Insurance | No Comments »

Rental slippery slope should be stopped

Tuesday, February 8th, 2011

As 2011 slips into the second month of the year, it is a good time for landlords to make sure everything in the business is ticking over as it should be. Necessities such as property insurance, health and safety checks and tenant satisfaction should be checked at the turn of the year, and at the beginning of February always check that the rent for January has been paid.

A finger on the pulse

The Christmas and New Year period is traditionally the most expensive time of the year for us all. It is no different for tenants and statistics prove that January is the month that attracts arrears unlike any other. Landlords should be aware of this and be on their guard.

It is imperative that landlords make themselves aware of any delay in rental payments because even though they may well have landlord insurance as protection, the situation can soon get out of hand. This is often averted if the landlord can nip the trouble in the bud and help the tenant realise that rent should be the last thing to stop paying and not the first.

Difficult times ahead

2011 promises to be a difficult year for many and although the letting sector looks to be in for a better year than most it is no good having a tenant if he isn’t paying the rent. The cut in housing benefit, the cut in public sector jobs and the hike in student fees are all potential trouble spots for landlords and their tenants.

The rental arrears figure for December 2010 was put at 11.7% by one survey, with the levels in many cities much higher. The knock on effect of this is that many landlords then struggle to pay their mortgage. The situation for landlords will be greatly enhanced if the pressure now being exerted by various organisations representing investors in the property market manage to persuade the Government to pay rent directly to the landlord when the tenant is receiving Housing Allowance. Housing Minister Grant Shapps has indicated in the past that he is sympathetic to the idea and it would certainly help to improve the rental arrears figure throughout the UK.

Tags: Advice for Landlords, Landlord Insurance, landlords, Property insurance
Posted in Housing Market, Landlord Insurance | No Comments »

Landlords told to expect a bumper year

Tuesday, February 1st, 2011

With 2011 less than a month old, industry insiders are giving prospective landlords two morsels of advice that they see as essential to getting the most out of the buy-to-let sector. Firstly, get strong, comprehensive landlord insurance and secondly, present your properties to the best standard you can achieve.

Already the financial markets are giving conflicting signals about what to expect in the coming year, but those in the property sector insist that 2011 will be a fantastic year for those landlords willing to put in the extra work that any thriving business needs to push it onwards to greater success. They qualify the remarks by saying that any good businessman should also have a safety net just in case things go wrong.

Which areas will benefit?

Letting agents across the country are already reporting high levels of interest in their properties with some saying the number of people registering for rental properties is 15% above the same time last year. Areas that have been in the doldrums regarding landlord profitability in the past such as South Yorkshire and Wales are reporting brisk business daily. One agent at Lancaster’s letting agency in Barnsley reported the letting scene as “manic” as up to half a dozen would-be tenants are looking at each and every property on their books.

Interested parties agree

Independent letting company, Leaders, say the prospects for landlords have rarely been better. Paul Weller, the Chief Executive, said recently that anyone looking to enter the sector or even extending their portfolios should look upon January 2011 as the perfect time. Other industry insiders say a similar thing; over the last fortnight two other companies; Landlord Zone and Landlord Assist have said signs look exceptionally good for the landlord with cash in his pocket and property insurance in his safe.

With several economists saying the UK is heading for a sea change in the way we view property and the ownership of it, landlords could be forgiven for rubbing their hands and waiting for the money to roll in. However, most of the experts who are forecasting a bumper year for the letting industry say it is the landlord who presents his properties in the best possible light that will succeed. According to Leaders this type of landlord will not only attract better rates of rent but he will secure tenants looking for a longer rental agreement, therefore giving him more security.

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

Growth figures cause clash of opinion in the city

Thursday, January 27th, 2011

“Should I stay or should I go” say the famous lyrics of a song by punk rockers; The Clash. It is a choice very rarely offered up to politicians or football managers, but is currently very much a question both landlords and tenants are asking themselves each day.

Many tenants are wondering whether to leave their tenancy now before their housing allowance is cut or whether to wait and see if their landlord offers them a cut in rent. Landlords are asking the same question about their portfolios, should they go out and buy landlord insurance on even more properties as rental yields still grow, or should they stay put and see what happens to the interest rates over the next few months. It is for sure the growth figures for the last quarter of 2010 announced yesterday will not have helped much in their calculations.

Will it affect Government policy?

The surprise return to minus growth figures has rocked the Government and shocked many financial experts. Although it is only -0.5% the figures have come as a great disappointment to Chancellor George Osborne. His assertion that the appalling weather in December definitely contributed to the bad result was somewhat belittled by financial commentators. The general feeling in the city was that in all probability even without the bad weather, economic growth would still have been at a standstill. The Government policy of cutting public spending quickly, suddenly looks more dangerous than ever.

The figures certainly threw a spanner in the works of those forecasting an early rise in interest rates. With the revelation that two members of the Bank of England Finance Committee had voted to raise interest rates this month the probability of a rate hike suddenly appeared on the horizon, the UK Pound gained ground against the Euro and the Dollar. That disappeared very quickly yesterday!

So what should a landlord do?

For those landlords looking to increase their portfolios then the likelihood of interest rates staying put, could convince them that now is indeed the time to expand their business. Cheap property insurance is still available for those who look round and nothing in the growth figures suggests there will suddenly be a dearth of tenants, indeed the opposite may well be the case.

In the end perhaps they should take heed of another song title from The Clash and maximise their “Career Opportunities”.

Tags: Advice for Landlords, Growth figures, Landlord Insurance
Posted in Insurance Guides, Interest rates | No Comments »

Buyers wise up to the housing market

Thursday, January 20th, 2011

As the housing sector stumbles into 2011, some experts believe that the time homes stay on the market will at long last start to come down.

The news that house prices had once again started to fall at the back end of 2010 caused dismay in millions of homes across the UK. Homeowners who had been relieved to see house prices start to edge upwards in the spring of 2010 were once more looking at the possibility of being in negative equity. For many in the industry it came as no shock at all.

There are many reasons why house prices should not go up just yet. The austerity measures imposed by the Government mean we shall all be worse off in the near future. The threat of unemployment because of the aforementioned policy will almost certainly cause many couples to postpone plans to move house and the sheer weight of numbers of homes on the market means that the law of supply and demand favours the buyer. Lastly but not leastly we have the high deposit and crippling interest rates demanded by the banks and building societies to new customers.

So why should some experts believe the amount of time a house stays on the market will start to come down in 2011? The simple answer is that people at long last have grasped that changing lenders, in most cases, will lead to an increase in their mortgage rates.

In the past 18 months thousands of homeowners have accepted offers from interested parties only to find that seven days later the offer had been withdrawn. In nearly all cases the prospective buyers had discovered that the rather nice interest rates that they were on with their old mortgage would not be available when they took out a new mortgage on a new property. Instead of paying something in the region of 4% they were being asked to pay around 6.5%. Not surprisingly the overwhelming majority said no thank you to the banks and no thank you to the frustrated homeowners looking to move on.

The market was left to those with big deposits and deep pockets and for some landlords the chance to increase their portfolios and get cheap landlord insurance on bargain properties was very inviting.

Estate agents believe that the public in general are now wise to the fact that changing mortgage is not feasible unless your economic situation is good. They are now beginning to see offers on properties going full course and expect the situation to improve as the current year progresses.

Tags: Advice for Landlords, housing market, Landlord Insurance
Posted in Landlords Insurance | No Comments »

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 »