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Posts Tagged ‘landlord advice’

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 »

Rent guarantee cover a good idea

Thursday, October 27th, 2011

With the continuing financial situation showing no sign of abating, property investors looking to rent out their homes, still look to be on a winner.

Banks still tightening purse strings

Despite continued haranguing of the banks by Government Ministers and leaders of the building industry to relax lending requirements inflicted on first time buyers, young couples are still finding it difficult to get a mortgage. Many have given up hope of ever owning their own home and instead are looking to become tenants on a long term basis. The prospects for professional and occasional landlords have never been better.

Countrywide boom

Almost a quarter of accommodation in London is now controlled by the private sector and with average rents well over the £1,000 a month mark, landlord property insurance brokers are busier than ever before. It isn’t just the capital that is enjoying the boom. Letting agencies from all corners of the UK are reporting high levels of business and in most areas increases in monthly rental prices are going up every quarter. So what can go wrong?

New landlords should tread carefully

Very little according to most letting agents, but newcomers to the sector should always tread warily. It is vitally important that a new entrant to any business thoroughly researches the venture before taking the first steps, but in the case of property investment, a comprehensive landlord insurance policy is extremely important. The financial climate may be the very reason why profits in the sector are so high, but it is also the reason why so many tenants are in arrears. With unemployment the highest it has been this century, many tenants are finding rental payments hard to find.

Extra cover well worth the cost

A good business property insurance arrangement may prove a little expensive but will pay the landlord when his tenant gets in arrears and will help him cover the costs of eviction if the situation deteriorates to such an extent. The policy should also include malicious damage cover as well as all the basic elements such as fire, theft and flooding. There is no reason at all why the new landlord can’t make his mark in the property business at the moment, it just makes good business sense to allow for the unexpected and cover for every eventuality.

Tags: business property insurance, landlord advice, New Landlords, Property insurance, Rent Guarantee
Posted in Property Insurance | No Comments »

Tenants will warm to cosy colours

Thursday, April 28th, 2011

Anyone with landlord insurance will know how vital it is to have tenants in their property. However, when a tenant vacates a property it sometimes gives a landlord the perfect opportunity to spruce up the property with some fresh paint, which will give the property an edge over other rented homes.

Warm can be cool

Colours are split into two groups: warm and cool. Cool colours have a tendency to make the home look more modern but also give off a cold feeling. Whereas warm colours will make the home look much more traditional and welcoming. There are a huge number of warm paint colours which will transform any cold, dark, room into a brighter, warmer room.

Forever autumn with golds and browns

Warm colours will create a comfortable environment whether they are in a deep dramatic tone or a softer more subtle shade. Every year sees new trends in colour choices, but warm colours are ever present and are always close to the top of the list for home décor choices. Painting in warm colours will add a new look to any home, no matter what the style is going to be. The feeling of outdoors and a sunny autumn day can be brought indoors with a palette of deep gold and rustic browns. Colours have a psychological effect on people and choosing colours that reflect nature as well as giving a warm energy to a room will give an inviting atmosphere in the home. It is not just autumn that can be copied. Pick any season and imagine the colours that come to mind at that time of year. Use the seasons as a guide and bring the warm colours of nature into the painting scheme.

Revitalise a room with yellows and oranges

Warm tones will also reflect elegance and have a big impact when the right tones are used. Deep russet will make both a bold and individual statement, reflecting an energizing warm glow as well as an elegant backdrop. Contrast this tone with a rich green or gold and any room will be given the feeling of sophistication. Some colours always seem to inspire energy and bright yellow and orange definitely fall into that group; they are the right colours to liven up any room. Even if used in a small room, energetic warm colours will be an excellent addition to any paint scheme without them looking out of place.

Cheap and cheerful

Without doubt paint is one of the cheapest ways to warm up the home. Adding warmth with colour to the living room, kitchen, bedroom, or hallway by using paint is a great way of setting the tone to redecorating any home. An entire room can be completed with a fresh coat of paint in as little time as a weekend, and the property which is covered by rented property insurance will look attractive to any tenants coming to view.

Tags: landlord advice, Landlord Insurance
Posted in Landlord Insurance, Landlord Insurance Quote | No Comments »

Landlords must know the rules

Thursday, April 7th, 2011

The fine encountered by a private landlord in Devon this week shows just why residential landlords must ensure they know about every facet of the business when undertaking a career providing housing for other people.

Tenants flee for their lives

The landlord in question walked out of court £158,000 poorer after being fined for breaches of fire safety rules, in an incident which saw his tenants fleeing across roof tops to protect themselves from the conflagration below. Enquiries into the fire showed that the landlord had neglected to put a fire safety door in the ground floor flat, which enabled a fire in the flat to spread into the escape route of the other tenants in the House of Multiple Occupation (HMO). Further inquiries found that three other doors in the building were not fitted with self closing devices and also contributed to the spread of the fire.

Message to all landlords

In all the landlord encountered the massive fine for putting his tenant’s lives at risk for the price of four good fire doors. All landlords should take notice of the case and make sure they take all essential measures to protect their tenants and of course their own business. It would be foolhardy indeed for a private landlord to set himself up without landlord insurance cover, it would be illegal not to have such things as gas appliances annually checked.

HMOs statistically vulnerable to fire

Fire statistics show that residents of HMOs are at a far higher risk of dying in a house fire than those living in normal homes. A resident in a HMO is six times more likely to die in a house fire, but this increases to sixteen times when the HMO is more than three storeys high. For this reason HMOs come under special attention from legislation and local councils. They also come under special rules with more than one property insurance company and a landlord should check this out before he takes a policy.

Get to know the law

Landlords should familiarise themselves with all the rules and regulations that apply, including the Housing Act 2004, Part 1 which gives Local Housing Authorities extensive duties and powers to remedy hazards within residential property. They should also note that Councils work together with local fire and rescue services which enforce fire safety legislation. The Regulatory Reform (Fire Safety) Order 2005 replaces the two major pieces of fire safety legislation, the Fire Precautions Act 1971 and the Fire Precautions (Workplace) Regulations 1997.

The buck stops with you

The legislation notes that risk assessment will be used as the basis for compliance and that the person held liable for any breach is the person responsible for the building.

Tags: landlord advice, Landlord Insurance, landlords
Posted in Landlord Insurance, Landlord Insurance Quote | No Comments »

A good tenant makes life much easier

Thursday, March 10th, 2011

Although being a private residential landlord can never be described as a straightforward profession there are certain factors that can make life a lot easier to cope with. Simple things like good, cheap landlord insurance and a good tenant can make a world of difference.

At a time when landlords in the UK are experiencing one of the best periods for many years, it might seem surprising how highly valued a good tenant should be. Surely with the demand out there for good accommodation, as soon as you lose one tenant then another is clamouring at the door.

A good landlord recognises a good tenant

This may well be the attitude of a bad landlord, but a good professional landlord knows exactly what difference a good tenant can be. First of all the landlords knows that his income is secure, the tenant that pays up on time and without any fuss puts a smile on any landlords face. Secondly, having a good tenant installed in your property means you don’t have to worry about how the home is being treated. Good tenants are a great boost in this respect, although each and every landlord should have residential property insurance the less claims made on the policy then the cheaper it becomes over time to purchase insurance. A good tenant will cause a minimum of damage to the property but also alert the landlord if work needs to be done to keep the place in good condition.

Of course the relationship works both ways. Once a good tenant is ensconced in the property a landlord can invest in good modern facilities knowing that he is increasing the value of the home and it is being looked after.

Seal a deal

For these reasons landlords should consider tying a good tenant to a long lease, it means he will not be losing money from void periods in the changeover of tenants, he does not have to worry about how his property is being treated and need not worry about rent collection. He must remember though the value of these things, and therefore be prepared to make it worthwhile for the tenant to stop. It is well worthwhile offering an attractive rent to secure a good tenant on a long lease

Tags: landlord advice, private residential landlord, tenant
Posted in Best Practice Guides for Landlords | 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 »

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 »

Sun continues to shine for landlords in the South West

Tuesday, January 25th, 2011

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

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

Is the South West a good investment for landlords?

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

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

Does landlord insurance cover void periods?

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

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

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