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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
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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
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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
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Spruce up your kitchen

Wednesday, September 29th, 2010

With autumn on its way, it is a great time for landlords to give any property’s they have enduring void periods a fresh new look. Tenants probably spend more time in the kitchen than you think and if money is tight you can still give the kitchen cabinets a makeover without it costing the earth. Very little skill is required for this job; all you will need is a screwdriver, some sandpaper, paint and some creativity. You do not even have to replace the door furniture, and it could easily secure you a new tenant.

Painting your kitchen cabinets is the least expensive way of giving old cabinets a fresher new look. Empty everything out of the cabinets and store away safely. The cabinets will most likely have a build up of grease, grime and dust particles so they will all need a clean with a warm water and soap solution, depending on how often you clean your cabinets, you may want to do this twice to ensure it is thoroughly clean. Use the screwdriver to remove the doors and the door furniture, when you do be sure to make a note of which one goes where.

Use sandpaper on each cabinet door, medium grit sandpaper is best to use for this job as it will get rid of any varnish on the wood. Then re-sand all of the cabinets with fine grain sandpaper, this will leave a surface that is ready to be painted, also a smooth surface will allow the new paint to stick to the cabinet surface much better. Clean up all the dust created by the sandpaper immediately, if it gets blown onto the paint you will just be making more work for yourself.

Now you are ready to start painting, and with the money saved by taking the job on personally you can afford to buy paint that will give your kitchen that fresh look. Make sure you have used sheets or newspaper to protect objects close by from being splashed with paint, it would be a shame to have to claim on your landlord insurance policy for a needless accident. Each of the kitchen cabinets will need two coats of paint on each side of the door, as will the cabinet frame. Allow this to dry for at least a full day to get the best results.

It is always better to use a top-quality paint brush to apply your paint as less bristles will come off and leave their tell tale marks on your work, and always apply in multiple thin coats. After 24 hours when the paint is dry, sand very lightly with fine grit sandpaper. If you apply two thin coats of paint it should look great, just using one coat could see the paint peel off quickly.

Like any other job if you are patient and take your time to do it correctly, the results will be so much better. While the second coat is drying you can soak the door furniture in a soapy mixture to bring them out sparkling clean. Along with the freshly painted cabinets your kitchen will have a great fresh new look. It is so much cheaper than buying brand new cabinets. All that remains now is to screw the doors and the handles back on and a money saving DIY job is finished.

Tags: Advice for Landlords, DIY, Help, landlords, Landlords 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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Do the job right

Tuesday, August 31st, 2010

As any landlord knows keeping ones property in good condition is of the utmost importance. It is great to get cheap landlord insurance but the premiums will soon go up if a series of claims are made.

There are always lots of little jobs that need doing and often outside jobs get ignored in favour of little niggles pinpointed by tenants on the inside. It is really important to maintain the outside of the building not just to protect the integrity of the property but to ensure the place retains as much kerb appeal as possible.

When getting round to the outside jobs it is necessary to ensure that the work is carried out correctly and to a good standard, if this can’t be achieved using one’s own skills then it is time to call in a professional. Don’t jeopardise the rental capabilities of the home by doing a poor job, saving pennies in this way can cost you pounds.

A job where this can easily apply is painting a door. A simple enough job it would seem and one that will greatly benefit the appearance of any home, a fresh lick of paint really can work wonders. It is however, important to carry out the job correctly.

First of all iron out any problems the door may have before starting the job. A door that requires painting can often indicate a door that has not been maintained correctly. For instance if the door is tight and difficult to open or close then a couple of coats of paint can make a real difference. A tight door can become a door that is almost impossible to operate without using brute strength and before you realise where the problem is, you have cracked or broken a pane of glass trying to open it. If a door is tight examine it well, it could be the door has swollen slightly and needs planing. It could well be the door mechanism at fault, the screws in the strike box could have become loose and obstruct the door slightly.

Once the door is prepared for painting it is a good idea to take the door of its hinges and carry out the job in a well ventilated space under cover. Use protective clothing where required for a painting job, eye protection, overalls and light gloves should all be worn. If using a spray gun to paint the door then a face mask must be used.

The painting of the door itself really is simple, take your time to cover any glass in the door or any other parts that don’t require paint and apply the paint carefully, making sure the you get an even coverage. The paint tin will give details on how long a time is required between coats.

Tags: Advice, DIY, landlord advice, landlords, Landlords Insurance, Property
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Rush for university lets imminent

Tuesday, August 17th, 2010

With A-level results out later this week, landlords in many of the UK’s provincial towns and cities as well as the capital will be anticipating a new influx of tenants.

It is expected once again that the pass rate for A-levels will supersede anything previously seen and with it a rush for university places. It may well also precipitate a rush in quotes for cheap landlord insurance. Although it is most certainly wrong to tar everyone with the same brush, it would be a foolhardy landlord who did not secure landlord insurance for properties housing students.

Very often the teenagers are away from home for the first time and are embarking on a steep learning curve not only in education, but also in the art of caring for oneself and their belongings. They will encounter problems that have always been sorted by their parents and will be doing household chores and using household implements that simply were not in their domain before.

Accidents will happen and with it damage to properties. A tap left running can not only cause flood damage to the room in question, but there is the added danger of the water finding its way downstairs causing damage to the room below, which may well be used by another student in the same house. It is a common site in student halls of residence to see the fire brigade on call. Usually because a smoke alarm has been activated by an unsuspecting student not yet versed in the art of cooking or the geography of their new flat.

It will pay a landlord great dividends to welcome and support his new tenants in whatever way he can. Time spent with the students in the first few weeks of their tenancy can go a long way to building up a good relationship with customers, who could well be renting the property for at least 3 years. Take time to explain the kitchen, the heating system and the plumbing. Any good landlord will have ensured all safety requirements are met anyway, but go to great lengths to explain fire rules and how electrical appliances work. It will also help to meet parents, they will take comfort in the knowledge that their fledglings are in the hands of a good landlord and remember there is often a younger sibling who will be looking for rooms a couple of years hence.

Tags: Advice, landlords, Landlords Insurance, Students
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Crunch time for Landlords

Tuesday, August 10th, 2010

Landlords in the UK, again find themselves on the horns of a dilemma as yet another survey reports that house prices are once more on the slide.

Great news for landlords with ambition and a bank balance to match. For these landlords, acquiring property and landlord insurance to go with it, at this moment in time could be a good idea. There is no doubt that for the foreseeable future, the landlord prepared to take a gamble will find some really good bargains and not necessarily in basements. On the face of it, adding to your portfolio does seem an attractive proposition at the moment. Estate Agents and letting agents agree that demand for private residential accommodation is booming.

The austerity measures have not really kicked in yet, so the short term outlook for rented property surely suggests that demand will grow. Job losses in the public sector should start snowballing late autumn and could stay at high levels for the next two years. The NHS and local government spending cuts should see steady job losses until 2013 and with it a reluctance for people to commit themselves to a mortgage in such uncertain times. One great source of income for landlords of course is students. Perhaps here too, landlords will see a growth in demand, with less jobs around there is obviously a chance that many youngsters fresh out of school will opt for University life rather than sign up for jobseekers allowance. So the landlord looking to expand appears to have many factors in his favour, however, there is a flip side.

Over the last 6 months, surveys by landlord associations and letting agents, have reported a small but steady increase in the amount of rent landlords are able to charge. This has been more or less nationwide and not confined to the South East. Although this should continue short term, if more and more properties are turned into private rental accommodation then the tide could turn, and small landlords may find their rental income squeezed. Worse still for the small landlord are the reports on falling house prices.

The Royal Institute of Chartered Surveyors (RICS) survey out today backs up similar data produced by the Nationwide and Halifax in recent weeks, house prices are dropping. Many forecast this drop to continue next year and one report suggests property prices will not increase in value between now and 2020! Many landlords see the actual value of the property of more importance than the actual rental value. This particularly applies to landlords with just one or maybe two properties who see their investment as a retirement package.

Tags: landlord association, Landlords Insurance, letting agents, RICS
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Landlords swamped with information

Wednesday, July 21st, 2010

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.

Tags: Advice for Landlords, landlord advice, Landlords Insurance
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Resealing the bath

Friday, July 2nd, 2010

A changeover of tenant often gives a landlord chance to do the little jobs that cannot be described as urgent but are not only pleasing on the eye but also contribute to keeping the property in a good condition.

A good example of this is resealing the sanitary ware in the bathroom. With a little patience and skill this is one of those jobs that can be done in house. It doesn’t take long and can save a fair amount of money when you consider the call out fees charged by a plumber.

Resealing the bath is the most time consuming and tricky of the sanitary ware to tackle, so should be done first.

If possible, this is a job to be done on a warm dry day, this will allow the bathroom to air and help the sealant you are going to use, chance to dry properly after the application. It is always advisable to spend that little bit extra on the sealant, using a cheap one could mean you are doing the same job inside 12 months, buy an anti mould type if possible.

Time to start the job, be sure to wear protective clothing as you first of all strip away what remains of the old sealant, use a Stanley knife and screwdriver to remove every last vestige of the old stuff, the more removed the better the new sealant will work. Work carefully a screwdriver can badly damage a bath which would mean a claim on your landlord insurance and possibly negate the savings made on doing the job yourself.

Now fill the bath to approximately half way, this ensures the gap between the bath and the wall is more or less what it will be when the bath is in use. Remember that the narrower the gap between bath and wall, the less sealant you have to use. Working with a narrow gap also means the line of sealant will be thinner which should mean, it is easier on the eye, less messy and will have a lesser drying time.

Always allow at least 24 hours for the sealant to dry before using the bath or importantly a shower over the bath. Using the same technique and the same drying times reseal the toilet and sink as well.

Tags: landlord advice, Landlords Insurance
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