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Posts Tagged ‘landlord advice’

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 »

Making a Tenancy Agreement

Tuesday, January 4th, 2011

Along with having landlord insurance, one of the first things that a landlord needs to do is create a tenancy agreement. One way of doing this is using a standard form and these are very easy to find in stationers or they can even be downloaded from appropriate online sites.

It is vital to make sure that the correct type of tenancy agreement is made out, especially if the landlord is going to be living in separate accommodation in the same property or if more than one room is being let out to students in what is a shared property. Every landlord should ensure that all forms being used for the tenancy agreement are up to date. The wording on all forms that were printed before 2007 are now highly unlikely to comply with the tenancy deposit scheme.

It is never a good idea to set the initial tenancy for more than six months although this does not apply if the tenant is known and trusted already by the landlord. Six months is ample time for landlord and tenant to assess if the agreement is working for them both and also gives them both a get out clause if it is not ideal. In a normal assured short hold tenancy the tenancy will continue after the first six months or whatever period was written on the agreement. It will normally continue on a monthly basis as long as the rent is paid each month on time.

A landlord should never amend a tenancy agreement without first speaking to a professional. If a landlord does not do this it may make the entire agreement invalid.

For the tenancy agreement to comply with the Landlord and Tenant Act 1987 it must contain the address of the landlord. However, if a landlord is living abroad the address of the letting agent can be used instead. All payments the tenant is responsible for and which are to be covered as part of the monthly rent should be stated clearly in the agreement. Some landlords agree for them to pay some of the bills such as council tax and utility bills and they will normally have a clause inserted in the agreement which allows them to increase the rent if the cost of the bills increases.

It is also best to include an inventory of everything in the property, this includes contents and also the condition they are in at the start of the tenancy. Agree this with the new tenant before they move in so that there will be no disputes at a later date. Finally, it sounds obvious but a landlord needs to ensure that the tenancy agreement is properly signed by all the tenants, and that they have a copy of it with their signatures on before handing over the keys to the property.

Tags: landlord advice, Landlord Insurance, Property insurance
Posted in Advice, Best Practice Guides for Landlords, Insurance Guides, Landlords Insurance | 1 Comment »

Getting a Landlord Accreditation

Thursday, December 30th, 2010

Being a landlord is not easy; there is a lot that you need to know, from buying landlord insurance, acquainting yourself with legislation, plus the responsibilities that go with being a landlord, and all the day to day running costs.

Throughout the United Kingdom this has been recognised by local authorities who are encouraging landlords in the private sector to become part of local landlord accreditation schemes. This is not just designed to benefit the landlords; it is there to help the tenants as well. Local councils and private landlords have been working closely together, sharing information that helps the landlord manage their rental properties. Arranging meetings where landlords get together to discuss any issues which affect them, and setting up voluntary accreditation schemes which will recognise and reward all the landlords who manage their rental properties well appears to be working successfully.

Accreditation is a set of standards which are laid down by an individual authority and apply to the way a property is managed and its condition. Any landlord who decides to join one of the schemes will become an ‘accredited’ landlord, and will then be listed on the local council’s accredited list. This is of benefit to the landlord and prospective tenants. The scheme is voluntary, and there is no obligation for a landlord to join, but when it comes to renting a property they are identified locally as a good landlord, which puts them ahead in the list. Tenants will know that renting a property from an accredited landlord, will mean the property will be in a good condition and the tenancy is going to be managed well.

Some council’s even have grants and loans on offer to an accredited landlord if they need to renovate their property to the standards set out by the scheme. Some schemes even offer accreditation for tenants who agree to stick to certain standards of behaviour such as respecting the accommodation, respecting the neighbours and sticking to the terms of the rental contract.

Obviously having both the landlord and tenant accredited is good for everyone concerned. There are basically two types of scheme, one will accredit the person, and the other will accredit the property and most schemes will combine both elements, for example the scheme will include criteria that relate specifically to the condition of the property, but will also look at the way the landlord has been managing the property.

Tags: landlord advice, Landlord 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
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
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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
Posted in Best Practice Guides for Landlords, Insurance Guides, Landlords Insurance | No Comments »

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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New Green Deal threatens landlord’s purse strings

Tuesday, November 2nd, 2010

It seems that the ongoing initiative by government agencies to make our home environment ever ‘greener’ could impact on the pockets of some residential landlords.

As Chris Huhne, the minister for energy and climate change, lays down the concept of his ‘New Green Deal’ some landlords will be fearful of what lies in store for them.

The New Green Deal aims to increase the nation’s perception of energy consumption and to increase the insulation in all the UK’s 26 million homes. With the aid of big business the government is planning to induce homeowners across the country to take out ‘pay as you save loans’ to facilitate the conversion of properties into super insulated dwellings.

It is envisaged the loans could be up to as much as £10,000 and will allow householders to purchase energy saving products such as loft insulation, wall insulation, double glazing and different types of renewable energy. The government hopes that companies such as giant supermarket chains as well as national DIY stores will fund the project as the homeowner pays back the loan from money saved on fuel efficiency.

The one blot on the landscape for the scheme is properties owned by residential landlords. The architects of the plan envisage a poor take up by landlords because as they don’t actually pay the energy bills for the property then they will not be concerned about the fuel savings.

On the other hand a landlord with half a dozen properties will be faced with logistical problems sorting out loans for the properties and having the work carried out. It is a problem.

It is widely thought that the new scheme will include legislation to force landlords to install energy saving insulation at the behest of tenants or the local authority if they deem the property badly insulated.

Not surprisingly landlords who already have to comply with lots of compulsory legislation will be worried about anything more that is compulsory. Most landlords will be hoping the scheme will be more advisory where there is an option to purchase such as the case with landlord insurance. All landlords accept insurance cover is vital but know it is not a legal requirement.

Whatever the case, landlords will know their fate soon as the initiative should be in place inside the next five years.

Tags: landlord advice, Landlord Insurance
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Rogue landlords taking advantage of the vulnerable

Friday, September 10th, 2010

Once again the good name of millions of landlords in the UK is destroyed by a few bad apples. A recent investigation by the homelessness charity Shelter, found that a great number of tenants are being treated shabbily by rogue landlords.

Shelter claim the appalling treatment is widespread, but it is only by a small number of landlords in the private sector. Shelter carried out the survey of EHOs (environmental health officers) and found that 9 in every 10 who deal directly with private renters had problems with a landlord harassing, abusing and even evicting tenants illegally. EHOs also told of landlords who ignore responsibilities including severe cases of damp and mould along with electrical and fire safety hazards which are totally ignored by the landlords.

One landlord is renting a property which has no heating, hot water or electricity. Another landlord rents a property to a mother and young child without any kitchen facilities or fire precautions. The survey shows the importance for local councils to have good enforcement strategies in place to help the most vulnerable. The enforcement strategies should also not have to wait until there is a complaint. It looks as if in the future there are going to be more private tenants. So it is important to drive out the worst landlords in the private rented sector. It is unclear if the property owners even have landlord insurance.

Campbell Robb, chief executive of Shelter, said “It is simply not acceptable that people are handing over their hard-earned cash to live in houses that are run-down, squalid and in some cases even dangerous. Our investigation shows just how ruthless a minority of rogue landlords can be. But this is not just the odd crook here and there. We know there are people operating in cities up and down the county, and it’s clear that this is a national problem that urgently needs a national solution.”

Tags: Advice for Landlords, Best Practice Guides for Landlords, landlord advice, Landlord Insurance, Landlords Insurance
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