The 3 property disasters all landlords should plan for

Knowing that your properties are safe is one of the most important things for all landlords, however sometimes no matter how hard you try you could find yourself in the midst of a property disaster. The fact is that even if you are extremely careful there are things that you just can’t account for, and so you need to have a plan set up for if the worst happens. So here we look at three of the most common property disasters all landlords should wary of, and the best way to tackle them if they ever happen to you:

Fire

Possibly one of the biggest fears for a landlord is that one of their properties will catch on fire, especially as the damage can leave the building completely uninhabitable for an extensive period of time. Fires can spread exceedingly quickly, and can be started easier than most people think, which is why by law all landlords must fit a fire alarm into each level of their properties as a minimum. However, you don’t just have to install fire alarms, these days you can also find smoke detectors that are even more sensitive than traditional fire alarms, meaning your tenants can be warned as quickly as possible if something is wrong.

If there is a fire in your property obviously the first thing you need to do is make sure that all your tenants are safe, and then talk to the fire brigade in order to try and decipher how the fire started. This is extremely important as if the fire started due to faulty wiring for example, as you could be accused of not keeping your property up to the required safety standards. You should also call your landlord insurance provider straight away to let them know what happened, as not only will you need their help when it comes to repairing the property, but also finding your tenants a new home and maybe dealing with legal issues.

Flood

Most people think that floods are not as dangerous as fires, however if you remember the pictures in the newspapers last year of whole villages practically underwater you will soon think twice about how damaging floods can be. If your property becomes flooded not only will there be extensive water damage to all your furnishings, but also the carpets, wallpaper, and even electrics. This can all add up to be extremely expensive, especially if your tenants’ contents are covered on your landlord insurance policy as well.

If you let out a property in an area that is prone to flooding you need to make sure that your explain this to your landlord insurance provider and see whether it will cost you more to protect your property. While you may not initially be too pleased about paying extra, if your property is ever affected by a flood at least you can be safe in the knowledge that all the costs will be covered and you won’t be left out of pocket.

Burglary

This is probably one of the most common property disasters that landlords come across, and it is more than likely that at one point or another you will find that one of your properties is targeted by thieves. If your property is currently occupied then you will need to find out how the burglars managed to get into the property in the first place, as if it is due to a tenant not locking a door properly or leaving a window open then you can hold them responsible. On the other hand if a thieve smashed a window or broke down a door then you will be able to cover the damage yourself with your insurance, and also learn how to keep your property safer in the future!

If one of your properties is currently unoccupied it is at even more of a risk of being broken into, which is why many landlords invest in specialist unoccupied property insurance in order to compensate for this. In order to keep your unoccupied property safe you should also make sure that your house is locked up properly, and if you are really concerned you could even think about adding bolts to the doors so it’s harder for thieves to get in.

While no-one will ever welcome a property disaster, if you know how to deal with the situation you will not have to worry about how they will affect your finances, and be safe in the knowledge that you can have your property back up and running in no time.

How investors are going back to buy-to-let for a good return on their money

Renting has become a way of life for hundreds of thousands of young professionals. For many, it’s not a predicament they wish to be in. But it does mean that for those entering the buy-to-let market the chances of finding suitable tenants have seldom been better. 

With savers suffering dismal returns on their accounts, buy-to-let is once more a lucrative option. 

Tim King, at London-based estate agency Felicity J. Lord, says: ‘Buy-to-let investors were once wealthy investors using cheap credit. Now, they’re people in their 50s who have lost trust in banks and pension schemes and are looking for a decent return on their money.’

Let the good times roll: Buy-to-let once more appears to be a lucrative option for some

The figures certainly look appealing. There is huge demand for rentals among young professionals struggling to get on the housing ladder, many of whom have to rent throughout their 20s, 30s and beyond. The average age of a first-time buyer sits at 30, and older for those buying without assistance.

This week, figures from Countrywide, the UK’s largest lettings agency, revealed that the average rent in England, Scotland and Wales has risen for six consecutive months to hit £842 a month in April, up 0.8 per cent year-on-year.

 

The average yields — that is, the annual rent as a percentage of the price paid for a property — is a healthy 6.2 per cent. But that figure does not take into account mortgage payments or maintenance. And if you want a letting agent to manage the property they will charge a fee of about 10 per cent of the rent.

Investors keen to take advantage of the market must choose their property and tenants wisely. 

Young professionals are generally seen as more reliable tenants than students or families with young children, who are more likely to cause accidental damage in homes. But it’s vital to carry out identity, credit and reference checks before you hand over the keys. 

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The last one standing - Local Headlines - Falkirk Herald

The last one standing - Local Headlines - Falkirk Herald

5 Tips for Renting with Local Housing Allowance

With the 2013 benefits changes now in effect, Housing Benefit has been getting a lot of coverage in the news lately. Some councils have trialled paying this allowance directly to tenants, whereas many still pay directly to the landlord.

But whatever the specifics, renting with Local Housing Allowance provides a challenge. You need to be a smart budgeter to make the benefit payments work as hard as possible, freeing up the rest of your income for other essentials such as food and bills.

So here we present five simple tips towards smart renting while in receipt of Housing Benefit, which should help you to make the most of your circumstances.

1: Budget in Advance

The basis of renting with Local Housing Allowance - or DSS, as it used to be known - is budgeting. It's important to get ahead on this even before you more into a property! Make a note of the rent and deposit levels, and check with your council how much benefit money you will receive towards these costs. Only then can you start to budget seriously. You can find your local council's contact details online at https://www.gov.uk/find-your-local-council

2: Keep Bills Down...

Housing benefit will only help you with rent costs - heating, power, phone and internet bills still need to be taken into account. Be flexible. Do you really need a house phone? Many mobile providers now provide all the call minutes you'll need for less than £10/month, if you get a rolling SIM-only deal. A property with decent insulation will save you shed loads on heating bills, so take things like EPC ratings into account.

3: ...And Shop Around!

This applies to energy bills too. Legislation currently in the works aims to clear up the complex tariffs offered by the "big six" energy providers, but for now you'll have to do your homework. Compare the offers carefully, and don't get sucked in by deals which seem too good to be true. In some areas, local 'energy co-operatives' may offer the opportunity to lower costs further by bulk-buying with some of your neighbours. Search online to see if there are any in your area - and again, check costs carefully!

4: Communicate with your Landlord

This is good advice in most rental situations, and it's no different here. Make your landlord aware of your benefits situation, including how much they can expect to receive each month in Housing Benefit, and how much you will have to provide for yourself. If you're in one of the trial areas where Local Housing Allowance is paid directly to tenants  then make sure it goes straight into your rent payments. Don't be tempted to borrow from this kitty to get you through cashflow problems - you'll only get into rent arrears, giving you further debts to pay back and souring your relationship with your landlord.

5: Track changes in benefits carefully

The current financial climate has made most matters of economy uncertain, and benefit payments are no exception. Each annual budget has the potential to shake up benefit payment levels, so keep an eye on the news around budget season to see what your Housing Benefit levels are likely to be for the following year; and if any adjustments are needed to your weekly spend, prepare accordingly. If your current lease is expiring and you're hoping to renew it, it's also worth checking with your landlord whether rent levels will be staying the same - this can affect the allowance which you're entitled to.

Getting by with Local Housing Allowance can be a struggle, but basic common sense and a low-cost lifestyle go a long way to removing some of the stress from everyday life. Your three best weapons in this fight are a sensible budget, good relations with your landlord, and a willingness to adjust your lifestyle when opportunities to save on living costs present themselves. With the right attitude, renting a property on Housing Benefit needn't be a stressful way to live.
 

Buy To Let Up Over 25%

The first quarter of 2013 saw a new high in remortgaging activity, with more landlords trying to raise enough capital to expand their portfolios and take advantage of higher yields.

Remortgaging accounted for 69% of all buy to let transactions in the last quarter, up from 43% in the last quarter of 2012.

High yields are encouraging many landlords to remortgage.

Another factor creating the increase may be the Funding for Lending Scheme, which is now beginning to improve mortgage availability by encouraging lenders to ease criteria and drop rates.

And on-going demands from Clydsdale Bank, RBS Group and Irish banks for landlords to refinance elsewhere have also contributed to the sharp increase in remortgaging.

Average property values for buy to let transactions increased over the course of the year on residential stock. This is particularly to do with the wider rise in house prices but also because investors are choosing to purchase property in the South East and other more expensive areas The average property values on transactions are over a 30% higher than they were a year ago.

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