Tag Archives: landlords

Landlords…Make sure you are covered for flooding

February 20, 2012

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Landlords who have buildings and contents insurance to make sure they are completely covered for flooding. This is especially for landlords who let out their property with furnishings.

The environmental agency has reported that the average cost of home flooding damage is £28,000 which is a massive amount compared to fire damage (£7,300 from losses) and burglary (£1,000).

Due to the amount that damage can cost is really does show you that it pays to be properly covered. If your house becomes so damaged it becomes inhabitable then you will also lose out on rental income.

At CIA Insurance we have competitive quotes for buildings and contents insurance, or if you wish we have separate buildings insurance and contents insurance cover.

A house damaged by flooding

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Want to keep your tenants long-term? Read for advice

February 1, 2012

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One of the biggest things for landlords is to get good tenants to live in their property and to look after it. Keeping them there for a number of years is also a big task.

Keeping good tenants is important and it can be just a few simple things that you offer which can work. Quality properties are key!

Adding wifi and having your property near good transport links (like train or tube stations) will attracts more long-term tenants. You will need to look into this factor more if you are buying a property souly to rent our, it will benefit you.

It is important when advertising your property to keep it clean and tidy, also your advertising photographs must not be misleading and should show a true match of your property.

Respect is also important, the more respect you give each other the better relationship you will have and the tenant will more than likely stay long term in your property.

Always take care of repairs as quick as possible and keep the property well maintained, if you do this your tenant will gain more and more trust in you.

For extra back up take out landlords contents insurance just to keep your mind at rest and protect the items in your property.

*Source – Stride

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Want to become a residential landlord? Read this first

January 25, 2012

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It is possible to let out rooms in your home to make money, there are different and certain ways to let out rooms. There are terms and conditions to abide to and you also need to look into how much rent you can charge.

Resident Landlords

Being a resident landlord has different rules and terms than if you are a non-resident landlord. You are a resident landlord if you are letting out part of a property that you live in an is your main home.

As this is you own home you can give less notice if you want to end a letting and a tenant cannot dispute the rental price agreed.

If you own the property but have a mortgage, you should always check with your mortgage lender if it is ok to become a resident landlord.

If the property is leased to you, you need to check the lease terms before you become a resident landlord.

It is only possible for a tenant to sublet a property if the tenancy agreement allows them to do so.

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Larger yields seen as a benefit for landlords

December 7, 2011

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In the three months leading up to October, landlords have seen larger yields on their rental property due to increasing tenant demand and rising rental prices. These are from the latest figures from the Royal institution for chartered surveyors (RICS).

Buy-to-let landlords and people who are looking into investing into this market will see this as good news. With demand continuing, this will be the seventh quarter where yields have increased.

Rent increases were experienced by 19% of surveyors (from the RICS data), rental prices are set to continue to rise with demand increasing for rental property.

Sellers who are trying to sell their properties are struggling to do so as there are no buyers out there, they are now turning to renting and becoming landlords. More landlords issued instructions to rent in the third quarter, leading to a net balance rise to +10% – the fastest growth since early 2009*

James Scott-Lee, RICS spokesperson said that the bleak economic message made by the Chancellor in his autumn statement is to blame.

“Despite a measure of resistance to rising rent levels from tenants, in some parts of the country the imbalance between demand and supply for rented property suggests that for the foreseeable future landlords will have a good if not increasing return on their investments in comparison with other main stream options,” he said.

 

 

*Source- Mortgages.co.uk

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Olympics 2012- Regenerating East London and higher rental prices all over the city

December 2, 2011

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The Olympics are coming to the UK next year

The Olympics are coming to the UK next year making it a big year for our country. Team GB have pledged to come at least fourth on the medals table and landlords, agents and first time buyers are making the most of rental prices and new buildings being built-in East London.

Landlords and agents

This is obviously a fantastic time to let your property out, people from all over the world will want to come over to the UK and they need places to stay.

London estate agents, Foxtons, seem to be making the most of the Olympic season. Foxtons are advertising their ‘Olympic Properties’ for extraordinary  prices, one of their properties being a penthouse in Knightsbridge setting potential tenants back £100,000 per week.

They also have two properties in Wapping, one is £1,350 a week not during the Olympic period but then there is one at £7,000 a week during the Olympics seeing an increase of almost £6,000 for the same area of London.

Foxtons are not the only ones upping their rental prices, on a whole rent will rocket in the run up to the Olympics by six times the normal value causing some legality issues.

Owner occupiers who also want to join in on the bandwagon may not realise that their lease may not allow them to rent out their property. If they do want to rent their property out to tenants they need permission from their lender, insurance company and also get planning consent. Any breach in local council requirements could set them back £20,000 in a hefty fine.

First time buyers and the re-birth of East London

East London in green has some of the poorest boroughs in London

East London is seeing an amazing transformation in the run up to the events in 2012, a multi-billion pound investment has been pumped into the area and they are certainly seeing a re-birth there.

In the Olympic boroughs, Newham, Hackney, Tower Hamlets and Waltham Forest, they are seeing great housing developments in what are the poorest boroughs of London.

Flats are being built and they seem to be pulling in the first time buyers, owner occupiers and letting agents are also trying to get in on the money-making action and investing in buying property in the Olympic boroughs.

Ian Conway from Felicity J Lord’s estate agents said that the real benefits will come after the games.

“Obviously the infrastructure is being put in now and they’re working day and night to create a nice atmosphere, but i don’t think we’ll see the full extent of it until after the games, which is historically when Olympic cities tend to see the benefits of regeneration.”*

Hopefully this will create a wonderful regeneration for a poorer part of the city.

*Quote source- Findaproperty.com

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More families renting than couples, buildings insurance will become more popular for landlords!

November 25, 2011

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Rental property has seen a large boom recently, with more and more families wanting to rent rather than buy.

 Buildings insurance for landlords will more than likely see a rise as mortgages have become too much. Renting used to be seen more for couples and/or young people but more couples with children are renting.

Sales Director for lettings company WMP Group, Daniel Cox, has said:  “Renting has always been about younger people or couples.”

However where couples mainly rent flats theses are not suitable for families, so more houses are coming up on the buy-to-let market to accommodate them.

“Obviously a four or five member family is not going to fit in a two-bedroom flat … [so landlords are looking for] standard two and three-bed terraced properties,” Mr Cox explained.

Rents have risen to an average of £720 per calendar month in October, as shown in a recent report by LSL Property Services.

 

Source- Simple

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Landlords told to get along with tenants more to make rental process easier.

November 23, 2011

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The biggest thing that you need to have in place is a relationship with your tenants because if the relationship is not there, then anything can happen

Landlords have been urged to get along with their tenants more.

Ed Harris, managing director of EH Landlord Services has given strong advice to property owners, get along with your tenants and make the whole rental process easier for everyone in the long run.

Mr Harris was at the landlord and letting show this week and he urged landlords to have a decent landlord/tenant relationship to avoid problems if situations arise in the future.

Landlords have been told to do what ever it takes to keep the tenants happy, call them every once in a while to check to see how things are and even visit them occasionally just to see if things are running how they should be.

Being protected with the correct landlord insurance will obviously give both the landlord and tenant peace of mind.

Mr Harris speaking at the show said: “The biggest thing that you need to have in place is a relationship with your tenants because if the relationship is not there, then anything can happen. If you are not in touch with your tenants on a regular basis then you can expect all kinds of problems and challenges.”

 

 

 

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Landlords encouraged to buy and renovate disused buildings, then let to students

November 18, 2011

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Have you ever wanted to renovate a building for student use? If you do and you go for it make sure you take out a landlord insurance policy.

Property expert, Stephanie Sowerby, has said that disused buildings are ideal for student accommodation. Ms Sowerby, Marketing Director for Fresh Start Living has pushed this as there is great demand for student properties in university towns and cities.

Developing these properties could be cost-effective she goes onto explain, councils may be swayed more to say yes to construction and provide planning permission on brownfield sites

“There is a huge demand (for such properties) from investors because of the return on investment potential that is offered,” the specialist stated, noting there is a shortage of housing for students in city centres.

With universities wanting to save cash, they are selling their living spaces because their government funding was cut. This means that private investors are seeing more university students who need a place to live.

Landlords who are thinking of letting out their property may want to join a new scheme which has been set up by accommodation for students and unipol, they accredit property which is up to a certain standard.

To protect your property against damage by students you may want to look into landlord insurance (mentioned at the top of this article). We also have a specialist students contents insurance cover, this is for students who want to protect their goods while living in your property.
Source- Simple

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Hidden costs you shouldn’t miss!

November 16, 2011

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Hidden costs should be looked into when landlords come to invest in a property. This has mainly been aimed at landlords taking out landlord insurance and going into the buy-to-let property market.

Additional charges like fees and taxes will be charged to landlords on top of what they have already had to pay for real estate.

A lettings expert has warned those who are entering the industry for the first time. An extra 4% will be charged on top of the price of the abode on stamp duty for buyers of £500,000 properties.

The fee then drops as the value of the property does, 3% for £250,000 and 1% for £125,000. Buying a property also brings up other costs such as a solicitor fee, mortgage and administration charges. Buyer who have bought apartments or flats may have to pay charges to a management company.

With a rise in house prices in October of 0.4%, these extra costs are certainly something to look into. Cheaper landlords insurance will give you extra peace of mind and more money left in your pocket.

 

Source- Simple

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National Landlords Association warn tenants to be protected!

November 15, 2011

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Potential sources of carbon monoxide in the home

The National Landlords Association have warned tenants that they must make sure that their landlords are protecting them in their homes.

In the winter months more care and attention is needed, last year a lot of properties had water damage because landlords hadn’t told their tenants how to switch off the water supply when there was an emergency.

Tenants should also make sure that their landlords have given them advice on what to do over the Christmas period. The tenants may want to go away so they need to know how to use their central heating system properly.

National Landlords Association

The chairman of the National Landlords Association, David Saludbury, has urged landlords to properly insulate their properties and become more energy efficient.

“A higher energy efficiency rating, which is measured by an Energy Performance Certificate (EPC), may also benefit the landlord by making a house more attractive to prospective tenants,” he added.

A step that could save lives is checking the carbon monoxide alarm in the property. Safety charity CO – gas safety has told tenants to get this checked if they haven’t already done so.

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