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Posts Tagged ‘Advice for Landlords’

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of homeowners have accepted offers from interested parties only to find that seven days later the offer had been withdrawn.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 »

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

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
Posted in Insurance Guides, Landlords Insurance | No Comments »

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
Posted in Landlords Insurance | No Comments »

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
Posted in Advice, Insurance Guides, Landlords Insurance | No Comments »

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

Alarms need to be maintained to work correctly

Thursday, October 21st, 2010

Homeowners do not have to rely simply upon observation skills to identify dangers within the home. Thanks to technology, anyone can instead depend on different types of alarms as a way of alerting them to dangers in and around the home. From fire alarms to a burglar alarm, there are different ways that a family can be safe.

It is highly recommended that all households install a few smoke alarms around the home to make sure that they are adequately alerted to any fire emergency. The bigger the home, the more fire alarms should be installed. There should be a smoke alarm outside each bedroom as well as alarms on all house levels. For maximum safety, have the alarms connected so that if one alarm goes off, they will all go off. Because smoke rises, it is always best to install the smoke alarms on the ceiling or as high on the wall as possible. If the property is privately rented then the landlord will have all smoke alarms checked yearly as part of his commitment to provide safe housing for tenants.

To make sure that the alarm works properly, always follow the manufacturer’s instructions, as these guidelines can vary ever so slightly from one alarm to another. Having a smoke alarm without a battery is pointless and will do nothing to keep occupants safe. To ensure that a smoke alarm remains working perfectly, always check your batteries monthly. It takes no effort to test a smoke alarm. Maybe decide on a date to check the alarms and mark it on the calendar as a reminder of this important monthly task. Regardless of whether smoke alarm batteries are working or not, always change them once a year. To make sure this is not forgotten, always change the batteries at the same time of year, maybe do this on the same day that the clocks go back or forward. Make battery replacement part of a yearly routine.

As for a home security company system, it will not be any good if it is not activated. To make sure that the security alarm protects the property while away from it; always activate it every time you leave the house. If it is something that is often forgotten, write a note and tape it in the car as a reminder to go back and activate it. It is a good idea to reset all the alarm codes and re-key all locks each year. By following these safety procedures, it will ensure that any lost keys will be useless and that anyone who may have the codes for the security system will have no access to the home. Both security and smoke alarms may well mean that landlord insurance can be purchased more cheaply.

Tags: Advice for Landlords, home security, Landlord Insurance
Posted in Advice, Landlords Insurance | No Comments »

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
Posted in Advice, DIY, Insurance Guides | No Comments »