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Posts Tagged ‘Landlord Insurance’

Fibre is not just good for the body

Thursday, July 29th, 2010

Fibre optic lines have, over the last decade or so, taken over and completely transformed the long distance phone industry. Optical fibres are also a massive part of making broadband available, not just in the United Kingdom, but around the world. When fibre optic lines replace copper for long distance calls and Internet traffic, it can dramatically lower the cost. Many people with fibre optic broadband will have used it to buy cheap landlord insurance without the need to speak to anyone, and in a high tech world landlords often get enquiries from prospective tenants on the availability of broadband in the property to be rented.

To fully understand how a fibre optic cable works, just imagine an extremely long straw or even flexible plastic pipe. Now, imagine that the pipe that is quite a few miles long. Imagine that the inside of the pipe has been coated with a perfect mirror. Imagine yourself looking into one end of the flexible plastic pipe. While several miles away at the other end of the pipe someone turns on a torch and shines it into the pipe. Because the interior of the pipe is a perfect mirror, the light from the torch will reflect off the sides of the pipe, this will happen even if the pipe curves and twists and the light will be visible at the other end. If the person at the other end were to turn the torch on and off like a Morse code signal, it would be possible for two people to communicate through the pipe. That is the essence of a fibre optic cable.

It would be possible to make cable out of a mirrored tube, but the result would be bulky and it would also be very difficult to coat the inside of the tube with a perfect mirror. Because of this, a real fibre optic cable is made out of glass. The glass it self is incredibly pure and even though it is several miles long, light can still make it through. The glass is then drawn into a very thin strand, so thin in fact that it is similar to the thickness of a human hair. This thin glass strand is then coated in two layers of plastic. By coating the glass in plastic, it gives the equivalent of a mirror around the thin glass strand. This mirror will create a total internal reflection, just like the perfect mirror coating on the inside of a tube has done. Today’s fibre optic cables can carry a signal quite some distance, maybe 60 miles. If it is a long distance line, there will be some kind of equipment hut every 40 to 50 miles. This hut will contain equipment that will pick up and then re-transmit the signal down the next segment to the next hut at full strength.

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

Low interest rates here to stay?

Wednesday, July 28th, 2010

With the latest predictions of low interest rates being with us for years to come, landlords will be wondering what exactly the future holds for the residential letting sector.

Ernst and Young, a leading UK economist group and sole sponsors of the Independent Treasury Economic Model (ITEM) club, are predicting the current Bank Rate of 0.5% will be staying with us until 2014.  The prediction is based on the present government holding firm on its commitment to spending cuts of around £40 billion and the loss of jobs that will go with it.

Although inflation is still way above the Government targets of 2% and the end of year increase in VAT threatening to push it higher still, the group feel the spending cuts will then kick in and push inflation closer to 2%. A relief then for the Governor of the Bank of England who will then be able to stop writing letters to the Chancellor of the Exchequer explaining exactly why inflation is above government plans. Not for long though, as interest rates will then have to stay low to stop the nation slipping into deflation.

With interest rates staying low and new borrowing rates remaining high, one can only anticipate home-owners without a big deposit will stay exactly where they are. Several mortgage brokers are reporting a good increase in loan enquiries but from personal experience, a lot of these enquiries will fall by the wayside when prospective home-buyers realise the interest rate on a new loan will be much higher, compared to the tracker mortgages they already have. This perhaps is confirmed by reports showing a fall in prospective buyers registering with agencies.

The result could well be house prices start to slide again; already one report is showing prices have fallen for the first time in over 12 months, Hometrack, the property data company, reported a 0.1% fall in June. If that is the case then the buoyant rental market could be here for some time yet, giving ambitious landlords, with an eye for a bargain, more reason to spend time looking for cheap landlord insurance to cover new properties they are willing to invest in.

Tags: Interest rates, Landlord Insurance, landlords, rental market, tenants
Posted in Advice, Interest rates, Landlords Insurance, Rent Guarantee Insurance | No Comments »

Appearances are everything

Thursday, July 22nd, 2010

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A good landlord can be fairly described as one who runs a profitable business and at the same time provides tenants with accommodation that is comfortable, attractive to live in and look at and makes them feel it is their own home. After all a happy tenant is one who will stick around which means that a landlord is less likely to experience void periods and so is getting the maximum rental potential out of his property.

A good landlord can also optimise his profits by undertaking jobs himself rather than paying out for tradesman. One such job most people can turn their hands to is painting the outside of the house.

Painting the outside of the property has obvious benefits, it is protecting the property from weather damage, therefore keeping the residual value of the property at its optimum and is pleasing on the eye to an incumbent tenant or makes a prospective tenant more likely to select the property as their future home. Certainly most people prefer their home to have “kerb appeal”.

Preparation and the correct tools for the job are a must, as is tackling the job using the appropriate health and safety issues. So first of all arrange your health and safety equipment, this should include safety goggles to protect the eyes from paint and cleansing fluids, gloves to protect the hands, surgical gloves are a good option, safety footwear and overalls to protect your clothes.

The tools for the job should include; ladders, stepladders, power washer, cover sheets, paint brushes, paint roller with extension pole, white spirit, bleach based cleanser, scraper, filler and of course your paint of choice. Be sure to choose an exterior paint, they are pricier but must be used if the job is to be carried out correctly.

First of all lay your cover sheets around the walls of the property and remove any external debris such as bird droppings, old globules of paint etc… from the walls with the scraper. Next using the roller to apply a coat of bleach based cleanser to the walls and leave it on to do its work. Time for the power washer now, give the walls a good wash down and be prepared for flakes of old paint to go everywhere, and remember there could be some of the cleanser on them so wear your gloves when tidying the mess.

It’s now time to go round the exterior searching out cracks in the wall and old paintwork. Make sure to fill all of them well and take off the excess. It is a good idea to apply a coating of paint using a brush around the windows, doors and the cracks you have filled in.

You are now ready to start the main job. Start from the eaves of the house and work down always taking your time as well as taking care. Don’t try and rush the job especially when using the ladder, it is much safer to come down and move the ladder rather than find yourself overstretching.

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

Stay within the law

Wednesday, July 7th, 2010

Once again this week, landlords hit the headlines for all the wrong reasons. A landlord from Staffordshire found himself in court and handed down a jail sentence for threatening a tenant who was in arrears with his rent. The rogue landlord was carrying a knife and so left the judge with little option but to jail him. It is all so unnecessary!

Any prospective residential landlord would be well advised to get at least a basic understanding of any laws that have some bearing on landlord/tenant relations.

The best way to deal with a bad tenant is to stop him being a tenant in the first place. A landlord is quite entitled to do searches on possible tenants to help him determine if the applicant is desirable. It is always best to be upfront and honest when turning a tenant down, always give a valid reason (there must be one or else you would be turning good business down) but bear in mind that it is illegal to turn down people because of their race, religion, nationality, gender or physical impediment.

When you have finally decided upon a tenant then it is common practice to ask for a bond or security deposit. It is usually, but not always, a figure approximately equivalent to one month’s rent. Once again this gives some protection from having picked the tenant from hell but you must remember that when the tenant leaves there must be a valid reason for deducting money from the bond. Good reasons would be damage caused to the property by the tenant, rent arrears, and also property expenses. Whatever the reason for withholding part of the security deposit, the tenant should get a written notification that itemises each deduction. Of course a good Landlord Insurance Policy is worth its weight in gold if by chance you do get that nightmare tenant.

So you have been unlucky and have actually got a really bad tenant. Time to show them the door then, but make sure it is done within the confines of the law. It is for sure the tenant will have to be given written notice and also given the chance to mend their ways.  Cutting off the heating and water supplies will be another no no. The best course of action is to get legal advice and it is possible that this may be included in your landlord insurance policy so check that out first.

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

Lock fitting can keep profits safe

Thursday, May 27th, 2010

Without doubt today’s landlord should be approaching his business in as professional a manner as possible. The recent UPAD webinar on landlords identified a professional approach as key to maximising the profit a landlord can make out of his property, this in an industry that can readily be said to have a high degree of “amateurs”. Many landlords just let out one property and often, as the webinar identified, view this as an alternative pension.

Nevertheless being professional enough to identify areas where one can save money is just as vital to the single property landlord as it is to the housing association, perhaps even more so, he needs to search out cheap landlord insurance, he needs to compare marketing costs with different agencies and he also needs to recognise that turning his own hands to certain skills will save him money time after time.

A perfect example of this is lock fitting, retrieving keys from ex-tenants is an occupational nightmare for Landlords and the cost of an emergency locksmith will throw any budget off course. Fitting a lock is not difficult and will without doubt be a skill that most landlords will get the chance to practise.

There are two basic types of lock, a Mortise lock and a Cylinder Rim Lock. To fit a Mortise lock scribe a line centrally on the door with a marking  gauge and use the lock body as a template to mark the top and bottom of the mortise. Choose a drill bit that matches the lock body thickness and drill out the majority of the waste.

Square up the edges of the mortise with a bevel-edged chisel until the lock fits smugly in the slot. Mark around the edge of the faceplate with a knife, then chop a series of shallow cuts across the waste. Pare out the recess until the faceplate is flush with the edge of the door.

Hold the lock against the face of the door and mark the centre of the keyhole with a bradawl. Clamp a block of scrap timber to the other side of the door over the keyhole position and drill right through on the centre mark; the block prevents the drill bit splintering the face of the door as it bursts through on the other side. Cut out the keyhole slot on both sides with a pad saw.

Screw the lock into its recess, check its operation; screw on the coverplate and then the escutcheons (an item of door furniture that surrounds a keyhole or lock cylinder) over each side of the hole. With the door closed, operate the bolt; it may incorporate a marking device to gauge the position of the striking plate on the door frame. If it doesn’t have a marking device, shoot the bolt fully open, push the door to, and draw round the bolt on the face of the frame. Mark out and cut the mortise and recess for the striking plate.

To fit a Cylinder Rim lock, tape the template provided with the lock, to the door and mark the drill holes to accept the cylinder. (They vary in size between models). Pass the cylinder into the hole from the outside and connect it to the mounting plate on the inside with machine screws. Drill and insert the woodscrews to hold the plate to the door. Check the required length of the connecting bar, which projects through the plate and, if necessary, cut it to the correct size with a hacksaw. Mark and cut the recess in the door edge for the lock, and attach it to the door and mounting plate with screws. Mark the position of the lock on the frame and use the template to drill for staple fixing screws or stud. Hold the staple against the frame to mark its recess. Chop and pare out the recess then screw on the staple.

Tags: home security, Landlord Insurance, locks
Posted in Best Practice Guides for Landlords, Landlords Insurance | No Comments »

Rent Loss and Rent Guarantee Insurance Explained

Wednesday, August 12th, 2009

wili-hybrid

Rent policy cover should be considered if you are leasing out one of your properties to protect you from any threat that may affect your property. Below, we have provided a simple explanation on the types of cover options available.

Rent Loss Insurance Explained

Rent loss insurance refers to the loss of rental income or rental value due to property damage caused by an external hazard that leaves the property unsuitable for habitation.

Rent Guarantee Insurance Explained

Rent guarantee insrance is a type of insurance cover that protects landlords against the threat of losing rental income whereby the tenants default on their rental payments.

When a policy is taken out, a premium is paid which is approximately 3-5% of the total rental income received. There is usually an excess that will need to be paid on most claims. Some policies also offer cover for any expenses associated with eviction.

The majority of insurers will only let you obtain rental guarantee insurance once the tenant is comprehensively verified.

Why Is It Important To Take Out A Rent Insurance Policy?

If you have a mortgage on a property whereby the primary source of paying off the mortgage is from your rental income, it might be in your best interest to have ’Rent Guarantee’ insurance. This policy protects you against the loss of rent from tenants that refuse or are unable to pay the rent as agreed in your rental contract.

Landlords should also consider taking out a ‘Rent Loss’ insurance on their property to protect the landlord against the threat of rent loss due to the property being left in an uninhabitable state from external hazards. Some policies can cover the landlord for up to six months if their property is subject to uninhabitable living conditions. Examples of potential causes include:

- Malicious damage
- Flooding
- Nuisances or Tresspassers
- Civil action events that cause damage to the property

Who Is Entitled To Apply For These Types Of Policies?

1.  An Individual

2.  Property Owning companies

3.  Property Management Companies

4.  Residents Associations

What Are Some Of The Factors That Affect the Price of Your Premiums?

Typical factors that would affect the premium for the rental insurance policies include:

Property location
The postcode for your property will affect the premium you pay based on the amount of risk that is associated with the area. (For example, flooding.)

Insurance sum
The premium amount for the property will be based on the rebuild cost associated with the structural rebuild cost of the property. Furthermore, other things to consider when insuring your property is whether your property is a part of  a block, conservatory area or a listed/heritage building.

Types of tenants
If the property is being used for sharing options such as a house share (HMO’s) or for those claiming Housing Benefits, the price of your premium will generally be higher.

Claims
If you as the landlord have a history in large or multiple insurance claims, the price of your premium will be affected.

Vacancy periods
How often is the property vacant within the area and for how long?

What Are Some Precautionary Measures That I Can Take Against My Property Whilst Letting It?

Some measures that landlords can take include:

  • Reference Checks - Check up on the references that are provided and find out about the credibility of your tenant and their tenancy history.
  • Sizeable deposit - Get a suitable deposit to cover for any loss of rent or damage to the property.
  • Payment facilities - Set up a payment account in the form of a direct debit.
  • Set expectations - Let your tenants know what you expect from them and the guidelines that they need to follow whilst they are letting out your property. Furthermore, let them know the consequences that they face if they fail to abide by the guidelines that have been stated.

To find out more about best practices, please refer to our post Best Practices For Landlords Obtaining Tenant References.

 

Image source: Wili Hybrid

Tags: Advice for Landlords, Buy-to-Let Insurance, Landlord Insurance, Rent Guarantee Insurance, Rent Loss, Rent Loss Insurance
Posted in Landlords Insurance, Rent Guarantee Insurance, Rent Loss Insurance | 1 Comment »

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