With each survey, report or government announcement that falls into the media domain, landlords must wonder exactly what the future holds.
There are so many conflicting reports covering the many aspects of property in the residential sector, that landlords could hardly be blamed for ignoring a lot of them and just sticking to ploughing their lonely furrow as they have done in the past.
The demise of hips brought more properties onto the market, which led to organisations such as the Royal Institute of Chartered Surveyors (RICS) suggesting that the influx of properties was not being matched by buyers; ergo the value of properties would fall. Anathema to all landlords, who put great stock on the value of their stock.
Then Letting Agents produce reports suggesting that many landlords will see the fall in property prices as a good time to add to their portfolio, and so it is, all being equal. Unfortunately at the same time, accountants and tax experts were pointing to the Conservative and Liberal Democrats manifesto and forecasting Capital Gains Tax (CGT) could well rocket to 40% in the emergency budget. Enough to make people in the letting business cancel their landlord insurance policies and sell up before Mr Cameron and his friends gobbled up their property value profit. It didn’t happen!
Housing benefit cuts did! Another disaster in the making, especially for landlords in the South East where it is estimated 170000 tenants will be affected by the £400 a week limit which in turn could force landlords into reducing rents to hang onto their clients.
But hold on, Countrywide letting agents announce they are being swamped by tenants wanting to get hold of accommodation which is leading to landlords being able to squeeze a little more rent out of their properties.
All very confusing to say the least. Perhaps the best policy is to carry on regardless. It seems to have worked for one landlady at least. Jane James, who has overcome many personal tragedies in her life, was recently crowned the National Landlords Association Wales Property Woman of 2010. Some title for some woman, Ms James though put down her success to recognising the value of her tenants.
She bases her business on the motto of “Everyone deserves a chance”. In her case she has taken a chance on low income families and gone the extra mile in helping them, which in return has helped her. The perfect landlord/tenant relationship.
Before you let your property to new tenants, it’s in your best interest to obtain references for your them. This will help you to avoid any potential risks - e.g. tenants who have defaulted on the rent before, or damaged properties which they have lived in previously.
Landlord or buy-to-let insurance differs from a traditional home insurance policy, because the type of risk is a little different.