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Letting to Young People

Saturday, December 3rd, 2011

The number of first time buyers who are struggling to get a mortgage and save a deposit to get onto the property ladder is increasing, so it’s no surprise that a large proportion of the rental property market is under the age of 35.

It would be helpful to think about how you could market your property to this age group and what types of people might be renting your property.

Young Professionals

A lot of under 35s are young professionals, maybe graduates or school leavers looking to move away from home. Many young professionals will look for a property that’s convenient to transport, as they’ll have to commute to their work. Because they are usually always on the go, many would really appreciate facilities in the property like washing machines, dryers and dishwashers. It’s always important to screen your tenants and conduct proper credit checks, though it’s unlikely that you will encounter difficulty with any tenant.

Students

Having a property near to a good college or university will be sure to bring you income. Most students are laid back when it comes to any problems to their property, however, students are known for occasionally causing breakages to property, so to minimise the impact of these accidents, you should take out landlords insurance.

Letting to the under 35s might be where the bulk of your rental income will come from, so you should be well kitted out to provide a property that is functional for young people.

If you are considering letting to younger people, marketing online can be a good tool for attracting them and it’s worth taking time to research the marketing potential of sites online.

Tags: Landlord Insurance, landlords, Students, tenants, young professionals
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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 »

Dining area important in fully furnished let

Tuesday, November 15th, 2011

Landlords looking to impress prospective tenants who want to rent on a fully furnished basis should spend lots of time preparing their property before advertising the vacancy. No-one wants to spend money on empty property insurance for too long, but it is worth spending a little time in between clients to give the house a spring clean and partial refurbishment.

Dining space important to tenants

One of the most important areas is the dining room. If you have a spacious dining room then you can arrange a formal, proper layout. Centre the dining table in the room below the main light fixture, preferably a chandelier. It is useful to have a dining room cabinet that can serve different purposes such as storing napkins and candles. As a formal dining room is primarily for eating, the dining layout such as place settings indicated by mats, a floral centre piece decoration or candlesticks are laid out permanently even when the room is not in use. Use heavy curtains and keep the lighting subdued. Also keep a sideboard or buffet in a corner to place extra dishes and bottles. Tenants will love to see an orderly room that epitomises the basis of family life.

Create the space

If you have a smaller property and a dining area in a living room but want to create an atmosphere of a formal dining room, use a small corner cabinet, sideboard or buffet instead, and choose furniture with fine details. Keep TV and other entertainment equipments away from the area, possibly out of sight. If it is difficult to place the dinner table below the main light fixture, consider installing recessed lights or a big sconce, or use a tall floor lamp or two. It is important to many would be renters to have a separate eating area so this approach could pay dividends.

Contemporary kitchens fit for purpose

If you have a kitchen diner, having a built-in bench on one of the walls and placing a dining table opposite it will create a relaxed, convivial atmosphere as well as saving lots of space. If you have a contemporary kitchen, match your dining table and chairs/benches to the units and create a sleek, continuous feel which is unique and very different from a formal dining room atmosphere but will appeal to some families.

Remember to ensure your homeowners insurance includes contents cover and ensure all the furniture conforms to health and safety standards.

Tags: Dining, homeowners insurance, Property insurance, tenants
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Rents hit record highs as landlords good run continues

Tuesday, November 1st, 2011

The continuing upsurge in demand for rented accommodation has seen rents rocket to their highest levels this summer, and the good news for those with an interest in landlord insurance is that the good times look set to roll for some months yet. The latest figures suggest that the average monthly rent of a property in England and Wales is now almost £720 and those in London almost £600 higher than that.

Demand gets higher as tenures last longer

According to figures released by letting agents LSL Property Services this week, last month showed increases in the average rents achieved by landlords in every region of England and Wales. It is the first time increases across the board have occurred in the same month and can only spell out continued success for property investors. Six regions recorded record highs and residential landlords across the UK are still reporting levels of prospective tenants making enquiries on their properties. Further proof of the lack of necessity in empty home insurance comes from the Association of Residential Letting Agents (ARLA) who say their members are now reporting an average tenure length of over 18 months, once again a record and indicative of a renting population wary about leaving their present abode because of the demand for housing.

Demands on private sector will grow

With no change in the banks attitude towards deposit demands on first time buyers, there seems little likelihood that landlords will be facing stiff opposition when they start bidding on properties to extend their portfolios. Of course the present Government have reasserted their encouragement for Right to Buy schemes for council house dwellers, although there seems little appetite from residents. There is also the initiative involving the building of thousands of homes around the UK in the next ten years. This is about to start, with Government help for builders and housing associations that come up with credible plans. The scheme is the key to Whitehall’s long term housing plan but in truth these two projects will still leave the growing population of the UK in desperate need of a healthy private letting sector. There is no doubt that landlords with their finger on the pulse of the market know their business is in the rudest of health and should remain so for a long time yet.

Tags: empty home insurance, housing plan, Landlord Insurance, landlords, rent, tenants
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Window dressings can capture a tenant

Tuesday, October 18th, 2011

For landlords letting property at the top end of the market, every little detail must be considered and the fact that the majority of homes rented to people with less budgetary restrictions are usually fully furnished, means the landlord must also have good taste when it comes to décor.

It may not occur to most landlords when they first take out property insurance on a letting venture that they may have to become experts in curtains and blinds but it is often how the home is dressed that will capture the tenant.

Curtains can draw attention

Curtains are both decorative and functional and play an important role in your home. They can insulate your home, block out light in summer and protect your furniture from fading, provide privacy and cover ugly window frames.

Sheer delight or perfect privacy

Sheer curtains work best for privacy and insulation during the day as they do not totally block out light. White cotton sheer curtains are especially good for these purposes as they soften the sunlight very nicely and create a soft, subtle ambience. At night and in winter use heavy curtains with lining for maximum effect. If you need complete light blockage choose blackout curtains, or, buy blackout liners separately and hung behind the curtains as and when needed. Remember wealthy tenants may appreciate such privacy.

Space dividers

Curtains can also be used as space-dividers if you have limited open plan space or want to create a dressing area in a bedroom for instance. You will need to suspend poles from the ceiling and hang curtains that are large enough to cover the areas sufficiently, and look attractive on both sides. Depending on your choice, these curtains can be delightful temporary walls in your space.

Final touches should include insurance

If you would like to use curtains as a decorative tool to add a designer feel to the property consider using window dressing accessories. Mount a decorative curtain rod and hang swags and tails as you like, which can be done without curtains. Or indeed you can choose any rods or curtains you fancy and hang them in a variety of ways, such as hanging curtains and swags together, or using a cornice box to add a sculptured feel. Curtains really do make a difference and they can also make a difference to your bank balance. Good curtains are not cheap and should be considered when landlords take out home contents insurance on property to be let.

Tags: curtains, home contents insurance, Interior decor, landlords, Property insurance, tenants
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Planning for the future

Thursday, September 15th, 2011

Property landlords should always plan the occupation of their portfolio many months ahead. Financial planning is of course a must but they must also give themselves plenty of time to decide what to do with a property once a tenant leaves.

Decision time

There are two options, the landlord can decide to sell or introduce another tenant into the property as quick as possible. They should start this process immediately when made aware the tenancy is coming to an end. Whatever they decide, there is usually quite a bit of work to do in the property and the sooner it is done the better. Most landlords will redecorate the property to give it a nice clean look.

Do you stay neutral or warm to an idea?

Choosing colours for your walls very much depends on your purpose of decoration. If you are decorating your home to sell, it is best to play safe and stick to neutral colours. They will appeal to a wide range of buyers and will also give them the impression that the property is a bare canvas and that it would be easy to redecorate should they wish to do so in the future. However, if you want to make your property appeal to new tenants then perhaps you need to think of something warmer. In any case you must remember to cover the property with empty property insurance while you carry out the changes.

Colour wheel can point you in the right direction

A colour wheel is based on the primary colours red, yellow and blue, and will help a landlord decide on how to progress with the update of the home. Colours that are adjacent to each other are considered analogous, while colours that are across from each other complementary. So familiarise yourself with the colour wheel and you can choose between analogous colour schemes or complementary colour schemes.

Seasonal selection could work

It is also a good idea to choose colours according to the season. Pastel, floral colours would be good for attracting tenants in spring. Cool, refreshing colours such as lime and turquoise blue would be good for summer. For autumn choose deep orange or beige. Red and white would be good for winter, especially Christmas. Alternatively you can coordinate the wall colour with one of the colours of the furniture or pictures in the room. In either case you need to take into consideration the colours of the flooring, curtains and blinds too if it is to be a furnished let.

Practice run first

Once you have selected your colour, get a small amount of the paint and paint pieces of chipboard or similar. Place them against the walls, visualise the colour in the room and decide if you are happy with it. Remember you will need to alter your cheapest landlord insurance arrangements once the property is sold or re-let.

Tags: cheapest landlord insurance, Colours, empty property, Interior design, landlords, tenants
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Welfare Reform Bill unites the opposition

Tuesday, September 13th, 2011

It does appear that the Welfare Reform Bill is managing to bring opposite and diverse factions together for the first time. Unfortunately the architects of the bill have little to crow about because the separate entities are uniting to oppose the bill.

Creation of new organisation

The birth of the Tenant Choice Alliance (TCA) has come about because of the bill and involves such groups as the Residential Landlords Association, the Council of Mortgage Lenders, the National Housing Federation and the Tenants and Residents Association of England. The alliance is targeting the housing allowance aspect of the new universal benefit scheme that will be introduced via the Welfare Reform legislation.

Private Landlords threaten action

When the Bill becomes law, all of the universal benefit will be paid directly to the tenant, with the government defending its position by saying that benefit claimants should be responsible for their own financial arrangements and it is important that they manage their own affairs. Private landlords in particular are concerned about the situation and rather than pay out more in landlord insurance to protect themselves from rent arrears have threatened to stop letting their properties to people on benefits. It would be a disastrous situation but landlords are not alone in asking for a change.

Housing associations agree

Many housing federations agree with landlords that tenants should be given a choice, saying that many unemployed tenants would much prefer to see their rent paid directly to their landlord. This gives then the security of knowing their rent has always been paid and eliminates their fear of becoming homeless. Most tenants are fearful of getting into arrears and welcome the payment by-passing their very difficult to manage budgets.

Tenants ask for choice

A spokesman for the Tenants Association in the alliance also confirmed that choice in the matter would be most desirable. And it does seem the most sensible way forward. Many people in the UK today worry about not being able to afford homeowners insurance to protect their property, but to actually worry about not having a roof over your head because you are behind with your rent is a different proposition entirely, and the truth is lots of people are hopeless when it comes to managing money. The present Government have demonstrated time and again over the last 12 months that they are willing to change direction if they think they have got something wrong. The TCA will be hoping the Welfare Reform Bill will get the same kind of understanding.

Tags: landlords, Landlords Insurance, tenants, Welfare Reform Bill
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Home ownership set to fall according to builders report

Tuesday, August 30th, 2011

The report released today by the National Federation of Housing (NHF) could well be translated as an open invitation to property investors to go out and buy landlord insurance on more homes. The report predicts a steady fall in home ownership over the next 10 years and with it a rise in rents.

Report blames a number of factors

According to the report, the decline in the building of new homes, the tight-fisted approach by mortgage lenders to first time buyers, and a dysfunctional housing market which is seeing prices for houses going up at the same time as prospective buyers constantly bid considerably less, is taking the UK into “Generation Rent.”

Is the argument flawed?

The NHF also use an Oxford Economics report suggesting that house prices will go up by over 20% in the next decade which will make it even harder for first time buyers to get on the property ladder. Using this particular statistic does in fact seem to take away the credibility of the report. It is difficult to see how house prices can go up so dramatically in a period when the NHF are predicting a drop in home ownership of 12%. One thing is for sure and that is the sector is becoming more complicated to predict.

Bank lending the major factor

The report is correct in saying that owning a home in London is already the preserve of the rich, but is it correct to say that this will become the state of affairs all over the country. Residential landlords are getting landlord insurance quotes on houses every day to extend their portfolios simply because the demand for their business is there. They are seeing higher rental achievements than ever before, which in turn means that it is now more expensive to rent than it is to buy. A mortgage in most cases would now appear cheaper than rent. It is the big deposits demanded by lenders that is causing the problem and for it to be resolved may need intervention by the Government.

Government wave goodbye to common sense

Housing Minister Grant Shapps has unveiled several Government policies to ease the housing crisis including giving over Government land for the purpose of building social housing, his latest novel idea actually suggests that more people could live on boats, leading one to ponder whether this will be seen as a sink or swim policy!

Tags: Home ownership, landlords, National Federation of Housing, tenants
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Know your tenant

Thursday, August 25th, 2011

The current high demand for good accommodation has meant that landlords can go out and buy the cheapest landlord insurance on new buildings with confidence. With tenants in good supply it is good time to expand and many private landlords are doing just that.
Of course it is important to know exactly what sort of tenant the new property will appeal to, it will help target any advertising and at the same time possibly cut down on advertising costs. If you plan to rent out your property to “mid-range” tenants (neither luxury nor budget) then here are some ideas.

Consider different flooring options

Wood flooring is very popular and would suit younger professional couples as the hard, slippery surface may not be the best option for children and elderly people. You may also have some noise problems, but a large rug or two strategically placed could be a solution. You would like a nice, quality carpet for bedrooms and stairs, and quality vinyl or laminate tiles for bathrooms and kitchens.

Wallpaper will add character

You might like to invest in wallpaper for living rooms and bedrooms, it will add character and value to the property. Use special, fortified paints for kitchens and bathrooms to prevent mould and grease build-up. Try different colours for each room to make it look individual but remember to stick to neutral white gloss for woodwork such as door architraves and skirting board. It is without doubt the safest option and clean white gloss paint will appeal to prospective tenants when they look around the property.

Traditional and contemporary

Traditional oak or pine furniture may not look “in” or particularly individual, but it is something that will never go out of fashion and has wide appeal so it would be a good investment. If you prefer a modern look choose minimalist designs which have also stood the test of time and may appeal to the young couple. It is always a good idea to choose your furniture depending on the lifestyle and needs of the residents. Remember a furnished rental property means you will have to arrange home property insurance for the contents.

Curtains and blinds

Cotton sheers will give a nice clean look and cooling protection in summer. Busy professionals might like black out curtains and blinds that will secure them a good nights sleep. Choose curtains and blinds that are made from natural materials if you can, which are better quality.

Original and unusual lighting will attract

Using lots of lamps in different heights is an interesting way to create romantic lighting at night; this technique is often used in mid-range hotels. Like furniture you can choose different kinds of lighting depending on the functionality of the room but lighting that is slightly unusual will certainly be noticed by interested parties.

Tags: cheapest landlord insurance, Interior decor, landlords, Landlords Insurance, tenants
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Private landlords determined not to cut rents

Tuesday, August 23rd, 2011

As the number of tenants on Local Housing Allowance (LHA) residing in properties run by private landlords rises to an all time high, landlords are letting the Government and Local Authorities know that the situation could soon change as the changes in LHA loom ever closer.

New claimants shunned

Ever since the controversial cuts to LHA were first mooted by the architects of the Welfare Reform bill in 2010, landlords have been unhappy about the way the changes will affect their businesses. New claimants are already receiving less money for housing payments and there is evidence accumulating that property investors with private landlord insurance are turning their backs on custom from these people.

Fallout from the changes will be dramatic

In January 2012 the new LHA payments will come into force for those already drawing the benefit and this is the time that the blue touch paper on the housing fuse may well and truly be lit. At the moment 35% of tenants in the private sector are claiming benefits, the demand from this sector will probably grow when Social Housing Groups are allowed to claim 80% of the local rental rate and therefore put the properties beyond the purse of some tenants. These people will be forced to look elsewhere for cheaper accommodation, but private landlords are not playing ball.

Survey shows landlords will take action

In a recent survey 15% of private landlords have stated that they no longer offer tenancies to LHA claimants, 25% say they are already looking at replacing benefit claiming tenants with those from other sectors and 33% of landlords interviewed said they would probably look to lessen the number of LHA tenants in their properties once the cuts were in place.

Landlords will resist pressure

Of course it is true that even cheap property insurance for landlords will give them the chance to get cover for loss of rent amongst many other things, but landlords are afraid that local authorities as well as tenants will put pressure on them to reduce their rental demands in line with the cut in benefits. There is certainly evidence that this will happen as already some MPs are suggesting that landlords have been greedy in their demands, however, the Government have not helped their case by refusing to allow private landlords to claim their rents directly from Local Authorities who make LHA payments and they may regret not listening to the representatives of landlords when they had the chance.

Tags: Landlord Insurance, landlords, local housing allowance, tenants
Posted in Landlord Insurance | No Comments »