Category Landlords

You might think of landlord insurance as being simply home insurance that has an added element or two within it. This is essentially correct, although there is more to landlord insurance than that. Read on to find out more. 

When Is Landlord Insurance Necessary? 

There are a number of times when this special insurance is necessary and even compulsory. These include:

• When your mortgage company requires it (buy to let lenders often make it a mandatory condition of the mortgage)
• When it is part of the tenancy agreement 

It’s not a legal obligation to have landlord insurance, and it is your choice in the end, but if you want peace of mind, and if you want to have a mortgage without any issues, it is something you’re certainly going to want to consider. 

What To Think About When Getting Specialist Insurance 

Before you purchase landlord insurance there are some important points to consider. Think them all through carefully before making a decision, because there are many different insurance providers, each one different to the next (or at least, that’s how it seems – the end product might be very similar). 

The first thing to think about is that it is a different entity to home insurance, meaning that if you have home insurance on the property already and then choose to rent it out, you’ll need to cancel that insurance and get specific rental insurance to cover you. 

If you have an HMO you’ll need specific HMO landlord insurance as this will be specifically tailored to your needs. Even if you run an Airbnb, this insurance will work for you. You might even be able to insure multiple properties on one policy, so if you have a portfolio, or you’re planning to have one, this is something to bear in mind. 

If you think that specialist insurance isn’t necessary, that is, as we’ve said, your choice. However, it is worth remembering that around 9% of tenants in the private sector do land in arrears at some point, and evicting a tenant takes an average of 42 weeks. Can you afford not to have landlord insurance? 

Plus there is more than ‘just’ the tenant to think about. You’ll need to consider the location of the property too. Is there a higher crime rate in the area? Is there a risk of flooding? Insurance cover can be a reassurance, just in case, although do be aware that you might pay more for your landlord insurance due to these factors. 

Insurance And Your Property Inventory 

A good, detailed property inventory, just like the ones Looksy Inventories provides in Sevenoaks and beyond, can be extremely useful when claiming on your landlord insurance. It will show just what the property was like before the tenant moved in, and once they leave, of course, but if there is significant damage from flooding, fire, or a crime, the inventory can be used to prove that damage and show the extent of it. 

In every case, the inventory from Looksy can speed up the insurance claim and make it a much smoother process. Find out more by looking around our site for prices and examples, and contacting us for more advice and to book your inventory, check-in, or check-out today. 

COVID-19 has changed everything, and that includes the rental market. COVID-19 and lettings are, it turns out, not entirely compatible. With restrictions on evictions firmly in place, landlords – and their tenants – may well be reassessing how things are going to go once lockdown is ended and vaccinations are more widespread.

Landlords in particular may well want to know how they can increase the rental value of a property they know is going to be empty soon. Increase the income from one property by enough, and you will start to make up for any shortfall you might have suffered during the pandemic. Here are some ways it can be done.

Outside Space

Lockdown has meant that we’ve all been indoors a lot more than usual, although in properties that have nice outdoor spaces that will have been at least bearable. With no end in sight to lockdown, as well as the fact that many people are now aware of how important their gardens actually are, you need to make the most of the outside space your property has.

Spend a little money and put in a large patio, replace the lawn, maybe even add some sliding doors to the back of the house so everything can be opened up.

Outdoors is something that might not have been crucial before, but it certainly is now once you look at the impact of COVID-19 and lettings.

Room For Home Working

Maybe everything will go back to ‘normal’ once COVID-19 is no longer such a threat. For the most part, that’s a good thing. However, the home working revolution has definitely begun, and it’s unlikely that this is going to change. Now that employers and business owners have realised that they can save money by not having any office space to pay for, and now that employees know that their job is perfectly doable from home, why would it go back to the way it was?

That means, of course, that renters are going to be searching for a home in which they can work. When there’s a spare bedroom, an actual study, a dining room they’re not going to use, perhaps even a conservatory, they’ll be happy. But if your property doesn’t have any of these things, you’ll need to try to make space. Can you split any rooms into two to create a study? Can you add an outside room or any kind of extension? You’ll be able to rent the place out for more, so you should be able to make your money back.   

Allow Pets

If you don’t allow pets in your property, you’re missing out on some fabulous tenants, and you’re limiting your market. To get the place rented, you might have to reduce your asking price or accept an offer.

If you allow pets, you’re effectively doubling your tenant pool and you can ask for more money because of it, despite the issues that have come about because of COVID-19 and lettings.

During lockdown, many people have decided that they need a little company, and a dog or cat – or whatever – has come into their lives. Now they’re looking for somewhere they and their pet can live, so be a little more flexible, and you’ll make a lot more money.

Most properties are in good condition and are safe to live in, but sometimes things go very wrong…

Read more here: https://www.landlordtoday.co.uk/breaking-news/2021/1/property-let-out-in-dangerous-condition-by-rogue-landlord

A landlord who failed to improve his rental property, leaving his tenants in dangerous conditions, has been fined.

Haroon Karim from Nottingham has pleaded guilty to two offences under the Housing Act 2004, failing to comply with Housing of Multiple Occupancy licence conditions and failing to comply with an Improvement Notice. 

Nottingham council officers visited the landlord’s property in the city and a number of category 1 and 2 hazards were found. 

This included dangerous stairs, structural collapse, excessive cold, damp, mould, fire hazards, issues with food safety and sanitation and drainage

Karim was then served an Improvement Notice, which he failed to comply with, exposing the tenants of this property to these hazards for an unacceptable level of time.

In addition, there was a breach of the HMO licence conditions in that the landlord had failed to provide adequate amenities within the kitchen that were suitable for the number of tenants living in the property. This included failing to provide a microwave oven or an additional cooker; failing to provide an adequate number of electrical sockets and failing to provide sufficient amenities for food preparation and washing up by not providing an additional sink or dishwasher.

During sentencing, Nottingham Magistrates Court ordered Karim to pay a fine and legal costs totalling £1001.42.

A spokeswoman for the local authority says: “We will only take legal action as a last resort if a landlord doesn’t work with us to improve their property. Most landlords are good landlords, but there are some, like Mr Karim, who give others a bad name. I would urge tenants to contact us if they have issues with their home, that aren’t being sorted.”

A business idea that you might have had to make a good amount of income is to be a landlord. If you already have a suitable property, perhaps because you inherited it or you have moved in with a partner and now have a ‘spare’ house or apartment, then the idea might seem even more interesting. Even if you decide to be a landlord and then buy a property in order to make it happen, it really can be a good way to make some money. How much money will depend on the property and the area, but as long as you are making more than you are paying on your mortgage, you will be doing well.

In order to be a successful landlord, you need your property or properties to be occupied more than they are empty – an empty property is a serious issue and will result in a loss of money. Therefore, you need to be a good landlord, to keep your tenants happy. Here are some ways to do it.

Customise The Lease

You can get a standard lease form at many different places; you can even download it online. However, in order to be a good landlord, and one that tenants will be happy to stay with, you should customise the lease. This means ensuring that both you and the tenant are completely happy with everything included within it.

You can take the standard lease form as the basis for your customized lease, and then add certain clauses and take others out. You can make the lease completely unique and personal to the situation. One good thing to include in any lease, no matter what else might be written there, is that your tenants need to have insurance. Then you’ll know your property is protected.

Allow Changes

For the most part, if a tenant asks you for permission to make changes within the property, it’s a good idea to say yes. Not only will it keep your tenant happy, but it will most likely save you money in the long term. If the tenant is willing to pay for a new kitchen, bathroom, flooring, or even if they are just happy to do some cosmetic work and make some updates in that way, it means you don’t have to do it yourself, so it’s good all round.

To make sure you are happy with the work, it’s a good idea to have some provisos; you can say that changes can be made, but you want to inspect the work when it’s done, or you want to look at the plans before any work is started. This is your property, after all, and you need to make sure that any changes made aren’t going to make it worth less or be less desirable.

Make Repairs As A Landlord

Although your tenant might be more than happy to make small repairs around the house, they don’t have to (unless the lease says they do, of course, but this is not the usual way that a tenancy works). One of the benefits to renters is that their landlord is responsible for making repairs around the home, so don’t be surprised if you get a call or email from your tenant asking you to do this work.

In order to show that you are a good landlord, you should make any necessary repairs in a timely manner. This will protect your property and ensure your tenants are happy to keep living there.

How to manage your property remotely… Remote working offers a great number of benefits for both employees and employers including better productivity, a happier workforce, and lower costs. It’s something that many businesses are now offering their employees as a matter of course where possible, and although this has been hastened due to the rules around coronavirus, it is something that was always going to happen eventually.

But what about landlords? Can they take care of their properties remotely? Should they? Let’s look deeper into this idea of how to manage your property remotely.

New Tenancies

Before a new tenancy can take place, the property needs to be inspected and any repairs that have to be done before someone can move in must be seen to. Yet if you live a long way from the property, or perhaps even in another country entirely, how can you do this if you plan to manage your property remotely?

The answer is simple; you have an inventory clerk do the inspection for you. An inventory clerk like us here at Looksy will carry out a checkout, full inventory, and then a check-in on your behalf, meaning you don’t have to step foot in the property if you don’t want to.

Of course, if work needs to be carried out you can then choose what to do next. This is where having a trusted team of tradespeople on hand can be ideal – you will see the extent of any damage from the inventory report, and you can instruct your painter, plaster, gardener, carpet layer, kitchen fitter, or anyone else to do the work that needs doing. Simple.

Tenant Relationships

Although a lot of the time the interaction between landlord and tenant ends after the tenant moves in, and the only connection between them will be the monthly rental payment, sometimes more needs to be done. If there is an issue in the property, for example, there should be a clear line of contact and communication so that the problem can be dealt with swiftly before the tenant becomes unhappy (possibly unhappy enough to leave which will then cause the landlord the hassle of finding a new tenant) or the problem escalates into something much more expensive.

Using an agent to help you is a good idea if you want to manage your property remotely. Yes, it will cost you money – often a certain percentage of the monthly rent – but it does mean you don’t have to be dealing with issues when you can’t do much about it. Instead, the agent will be the first port of call and they will have people on hand to fix issues quickly. Agree a maximum price for repairs, and they can organise everything without even having to bother you.

Conclusion About How To Manage Your Property Remotely

It is entirely possible to very successfully manage your property remotely if you are a landlord. The key, however, is to remember you can’t do it alone. You are going to need a good support network behind you to help you, and only then can you really cut the apron strings and be much more independent.

If you want Looksy Inventories to be part of that network, please don’t hesitate to get in touch and chat about what we can do for you.

Mould is a huge issue for many landlords and their unfortunate tenants. It is by far the most complained about aspect when it comes to rental accommodation, and it is something that is going to affect most people at some point, whether they have to deal with the mould or they have to live with it. It is crucial that landlords and tenants understand more about mould so they know what they have to do when it rears its ugly head.

What Is Mould?

Mould is caused by damp. Damp itself can be caused by all kinds of different issues, none of which are good… it might be rising damp because the damp course is faulty (or non-existent), or it could be from a leak on the roof, for example. Essentially, when there is condensation of moisture in the air, mould will form.

Condensation can be a structural issue (like those mentioned above, or perhaps a faulty heating system or insufficient insulation), or it could be a result of how the tenant is using the property (as in not using enough ventilation when showering or cooking or drying clothes inside the house).

The problem is that mould isn’t just unsightly; it can also damage property and possessions and, in some cases, be a health hazard too.

What Can Landlords Do To Prevent Mould?

The extent to how far a landlord can go will depend on what the cause of the problem really is. A missing roof tile or a blocked gutter can be dealt with quickly, stopping the mould in its tracks (after which some redecorating may well be required internally). Something bigger like a leak from an unknown source or an issue with the tenant might take longer to sort out.

However, as a rule of thumb, the earlier the damp problem is noticed the sooner it can be fixed and the less damage the mould is going to cause. This is just one of the reasons a landlord should conduct periodic property inspections. By doing this on an annual or six monthly basis, or perhaps more frequently (how often will depend on the overall length of the tenancy and the tenancy agreement), the landlord will be able to see if there is a problem, and will be able to see if the tenant is using the property in the right way.

Of course, sometimes landlords are unable to do this due to other commitments; they might live many miles away, or even if a different country. This is why hiring an inventory clerk to carry out these midterm inspections can be an ideal solution, particularly if there have been mould problems in the past.

If it turns out that the damp and mould is due to a structural issue, the landlord has responsibility in dealing with it under the Landlord and Tenant Act 1985 (section 11).

Advice To Tenants

For tenants who are worried about causing mould and who want to prevent it from happening as much as possible, here are some useful tips:

• When cooking, use lids on pots where you can
• Don’t dry clothes inside (use a washing line or tumble dryer). If you really have to use a clothes airer, it should be kept in the bathroom with the window open and the door shut
• If there is an extractor fan in the bathroom use it every time you have a shower
• Don’t let the property get cold; keep your heating on a low level all the time
• Try not to put furniture against outside walls

For More Advice…

For more advice, contact Looksy Inventories today. We can arrange to inspect your property on a regular basis to keep landlords and tenants happy.

After all of the pictures are shot, the listings have been tweaked and checked and gone up online, and (hopefully) the phone calls and email enquiries have begun to come in, that is when the actual work starts when it comes to ‘selling’ your rental property to prospective tenants. Unless you happen to be in an area where rentals are snapped up quickly, or you have something truly exceptional (or cheap), it could take many weeks – even months – of viewings to get someone who wants to make your house their home. This does need to be remembered when you are preparing the place for viewings.

Showing folks around your home is among the most crucial components of the marketing procedure. It enables a prospective tenant to discover the specifics about the property, where it’s located, measure up for furniture, get a good feel for the place, and decide whether or not they can live there. Online viewings are all very well and good, but that gut feeling is crucial to many, and nothing really beats physical viewings. Thankfully, the pandemic is now in a position where this is possible, so lettings should be easier than they have been.

Here are some useful tips for ensuring that your viewings go as successfully as possible, cutting down on the time and expense it will take to let your property.

Pick Good Times for Viewings

Let the letting agent (if you’re using one) know the viewing times that suit you ahead of time. The way you are not rushing a viewer around the house so that you can go and get the kids from school on time, for example. Don’t have them book viewings during your working hours, or when you already have commitments in place. Or, if you don’t want to miss out on prospective tenants, have the agent do some or all of the viewings for you. This can actually work out very well since they won’t have an emotional attachment to the place, and some tenants prefer to have an agent show them around anyway.

Despite having said this, it’s still important to be as flexible as you can. If your property is suitable for commuters, you may have to show it at weekends or in the evening. If it’s a family home, you might have to fit in viewings during school hours.

Remember Kerb Appeal

The very first thing a viewer will see regarding the property will be the outside, therefore however glamorous and spotless it is on the interior, it has got to look great in the open air too! It’s all about kerb appeal. Keep the driveway clear and the front garden (if there is one) tidy. Make sure the front door is in good condition and the door furniture is shiny and new. It won’t cost a lot, but could be the difference between quickly finding a tenant or waiting for weeks without any rent coming in.

Make It A Home

In order to help someone envisage themselves in the property, tell them more about it. Let them know what you loved about it, why you bought it, the history of it. Give them something to think about.

Keep your rental property tidy and spotless, but looking as it has been lived in. It needs to feel like a home to viewers; they shouldn’t be afraid to touch anything or worried that any little mark is going to be a huge issue. They need to be able to live there, after all. But equally, let them know that you care about it and take care of the place. This fine line can easily be balanced, and it will help you greatly.  

Don’t Oversell

No one likes a pushy salesperson, so if you’re showing someone around your property, don’t make them feel forced into making a decision and never, ever lie to them. Even if you think that whatever it is you have to say is going to push them towards buying, don’t do it – it will only come back to bite you later on, especially if they ask you to put certain points in writing which you can’t deliver on.

Make A Lasting Impression

Try to keep your property’s greatest feature for last when viewings are happening. Whether that’s the amazing view from the master bedroom, the gorgeous, brand new bathroom, the garden, the peace and quiet, the huge inglenook in the living room, if you can (and it will depend on what it is and the layout of the house) leave it until last because that will be the main image people walk away from your property with. It might be the thing that persuades them they need to live there.

Whether you’re a landlord or a tenant, the specifics of your lease are there to protect you, therefore it’s essential to recognise what a break clause is and just how it might be used – if you need to.

If a break clause is added to a lease, it means that either party – landlord or tenant – can end the lease early should they wish to. It might be that a tenant wants to renegotiate their lease and they use the break clause to do it, or it could be that the landlord isn’t happy with the tenant (perhaps due to complaints or late payments) and decides it’s easier to break the lease than continue with it.

The Lettings Industry

With more emphasis being put on helping people to buy property, the letting market isn’t what it used to be, and landlords are often feeling progressively anxious. When this is in addition to tenants feeling the touch of difficult economic problems, it’s not surprising the break clause has been invoked a lot more recently.

Remember that even with a break clause, there might be conditions that either party has to go through before they can be successful in breaking the lease without penalty.

Serving The Break Clause

All clauses will vary, and if you want to use yours, you will need to establish exactly how the notice should be served. Check the lease and, if you have one, check with your letting agent – getting this right will avoid any nasty confrontations and it will save you money too because if you break the lease in the wrong way, you could be liable for the rent that’s due.

It’s wise for landlords to check in with their tenants on a regular basis. After all, knowing that there’s a problem and pre-emtping any request to leave can put you in a stronger position to either agree to new terms or fix the issues and stick with the original price or other terms.

When To Deliver The Break Clause

The choice of when you should use the break clause is going to depend on several variables. This might be after a particular time period has elapsed and there might be specified dates when it is able to take place. It’s crucial that this is completely crystal clear in the conditions of the lease.

Tenants must understand the dates specified in the clause and also aim to discuss the options no less than a year prior to the notice period commences. If you’re uncertain of the dates on the break clause, you need to find clarification. Don’t do anything at the last second, as any plans you make might fall apart if the break clause isn’t what you thought it was or can’t be used for some reason.

As a landlord, a greater connection with the tenant is going to allow you to foresee whether a rent increase will mean they invoke the break clause, and therefore provides the opportunity to decide whether to invoke the increase. This can be a big reason why many tenants decide to leave.

The Problems Of A Break Clause

All tenants should make sure to pay any outstanding bills and rent up to the break clause. If anything is left outstanding, they might find it is taken out of their deposit, and that can lead to issues if they were expecting to use that money for something else. Remember, just because you decide to invoke the clause, that doesn’t mean your responsibilities are ended.

There has been a massive jump in enquiries for pet-friendly rental properties. Requests are currently up by fifty percent on usual levels. And it’s all down to the coronavirus pandemic. But is renting with a pet going to become any easier?

Or rather, it’s lockdown that has caused the trend. People have been lonely, and have either got a pet or at least thought about getting one, the delay perhaps being that they cannot have one right now due to their landlord not allowing it. So, wanting a pet or having one already, and the larger numbers thinking in this way, means that the next property these tenants are going to be looking for should take pets. Hence the increase.

As lots of people, as well as their companies, have realised that they are able to work at home, and companies are actually considering ways for home working to be normalised, folks are actually reassessing if it’s feasible for them to get a pet. This means an increased need for pet-friendly rental properties. Landlords will discover in the coming weeks and months that they might well have to adjust and review their policies if they would like to let their property quickly, or even at all. Renting with a pet is becoming the new normal and landlords must be aware of this change.

Why Not Pets?

The worry for virtually all landlords is that pets result in much more daily wear and tear than individuals on their own. That said, folks with pets will generally remain in the exact same spot for more time, so they can help to reduce the danger of a landlord having to keep looking for new tenants. It might be a better option all round.

With regards to decorating, carpets are a lot more apt to show harm than a wooden floor. Laminate is actually cheaper to install and tougher to scratch, although a scratch on a hardwood floor is easier to repair.

So the answer here is simple; don’t have carpeting, have hard flooring instead. If the tenant wants to add a rug for additional comfort, that’s their choice, but at least your carpets won’t be ruined by their pet, and you can let the property much more quickly.

Other adaptations to look at for those renting with a pet would be very simple modifications like a cat flap. Either install one yourself, or allow the tenants to if they want to. Plus, you may decide to upgrade your end of tenancy procedures around cleaning, for instance, and having an inventory done as well as a proper check-out will help immensely when it comes to determining if any damage has been done.

Remember To Advertise The Fact Of Renting With A Pet…

If you decide to allow pets, be sure you update listings right away to maximise the chance of you getting the right tenant. If you make sure to advertise the fact that you accept pets, you’ll certainly get a lot more interest, and certainly more than those who says no pets or don’t mention pets at all, forcing the potential tenants to enquire.

The Tenancy Agreement

Landlords are within their rights to include things like an understanding in your agreement about trying to keep the property thoroughly clean, or perhaps covering the costs of a one off deep clean at the conclusion of the agreement. You should think about a larger deposit to cover any more potential damage, or perhaps increase the amount of interim inspections you have carried out.

Any stipulation surrounding renting with a pet have to be agreed by both parties at the start of the tenancy.

So you’ve inherited a house and now you don’t know what to do with it. There are three different options open to most people – they can either sell it, rent it out and become ‘accidental landlords’, or move into it themselves. Depending on the location and the potential tax issues, this last point just might not be suitable, and most people opt for either renting it or selling it. But which is the better option? Which one is going to help you the most?

The truth is, there isn’t a right or wrong in this situation. There is no definitive path to take. The choice you make is going to be entirely dependent on your own situation, your finances, your needs, your thoughts. But to help you to get to a point where you can make an informed decision, Looksy Inventories has listed out a few of the pros and cons of both selling and renting – this might help you if you’ve come to an impasse.

Renting It Out: Pros

• Security

If your house is empty and you put it on the market, it can – not always, granted, but sometimes – become something of a magnet for burglars and squatters. If someone is living in the property, this is much less of a problem, and it is therefore kept more secure.

• Money

If you have tenants in the property then you will be making money (let’s assume there is no mortgage left and you’ve not had to take it over for now – that’s a different kettle of fish and something that can cause a lot of problems, so it’s best to get advice from a mortgage expert if that is your situation). The rent you get each month can go towards the upkeep of the property, but it can also be seen as extra income for you. Bonus time. Plus, if the property is empty between tenants you won’t still have a mortgage to cover so as long as you treat your rental income as additional to and not instead of your day job, you won’t have to worry about it.

• You Can Still Sell

Even if you choose to rent the property out to begin with, if you don’t like the experience of being a landlord you can still sell later on, once the tenancy agreement is up, for example. If you’ve sold, that’s it – no second chances.

Renting It Out: Cons

• Trusted Tenants?

If the property you have inherited is a place you know and perhaps even love, maybe somewhere you have happy memories of childhood, you might be reluctant to let someone else move in. If you’re going to be constantly worried that your tenant isn’t taking care of the property in the way you’d like, it’s just going to cause more stress than anything else.

• Cost

It’s true, if you have inherited a house you’ll be getting a monthly rental income for the property, but there will be outgoings too. Insurance, regular maintenance, a letting agent if you go down the fully managed route, repairs (sometimes urgent ones), and so on all need to be factored into the cost. How much money are you really going to make? Is it going to be worth it?

• Legislation

If you decide to become a landlord, even if it’s not something you ever considered before, there are in excess of 150 pieces of legislation to abide by. Happy reading!

Selling It: Pros

• Money

Of course, the biggest ‘pro’ when it comes to selling the property is that you’ll get a good few thousand – probable a few hundreds of thousand – in your pocket after all the fees have been paid. The property will be someone else’s to enjoy, and you’ll have an inheritance you can really put to good use.

• Memories

Again, if you have inherited a house and the property is something sentimental to you, you will be able to remember it just as it was, without having to change anything for a tenant, or have a tenant make changes themselves. Even if you give them permission to do it, the property still won’t be how it was anymore, and this can be upsetting.

Selling It: Cons

• It can take an exceptionally long time to sell a property, in some cases over a year. And even when the property is sold, completion can come a long time after exchange, adding even more months to something that has taken an age already. If you’re relying on the money from the property to do something for yourself, you may have to put those plans on hold. If you’re renting the property out, you’ve got money coming in straight away, albeit a smaller amount than you would get in one shot when selling.

• Although you might tell yourself it’s just a house and that you shouldn’t get attached to it, this is what human beings do – we do attach ourselves to places and things, so selling the family home can be utterly heartbreaking, and it often comes with a lot of guilt, even if that guilt doesn’t actually make any sense at all.

As you can see, there is absolutely no right or wrong here when you have inherited a house. It’s the situation that suits you, and the one you feel happiest with. If you do choose to rent out your property, don’t forget that an inventory should be carried out by experts before anyone moves in, to keep both you and the tenant covered.