Property landlords should be aware that the Government is thinking about giving local authorities the power to limit the number of HMOs in a single area. A spokesman for the Communities Department is reported as saying “Students bring benefits to the places they live in but too many residing in one area can impact negatively on a community”. Presumably they are worried about excessive drinking and other ant-social behaviour.
Several organisations have written to Communities Secretary John Denham to oppose the scheme, arguing that there is only a problem in a very small number of wards around the country and that the proposals are “discriminatory”.
The Chairman of the Residential Landlord’s Association Alan Ward is quoted as saying “Planning permission can affect the marketability and value of property, forcing landlords to repay capital on their loans or sell resulting in loss of homes for tenants”.
If the above is passed what would happen to the validity of landlord insurance if a landlord has a HMO property in an area you are not supposed to? This will be an issue both landlords and insurers will have to look at.
Market on the way up?
On a more cheerful note for landlords, Halifax says that the average home increased in cost by 1.1% in July. Taylor Wimpey the builders added to the good news for property owners by saying that sales were rising and prices were no longer falling. Its order book is up 67% since the end of last year.
Undervaluing by surveyors damaging the market
The National Association of Estate Agents believes that valuers are so worried about being accused of over valuing by lenders that they are routinely undervaluing by 10% or even more. If a property is repossessed and sold for less than its purchase price there is a risk that the surveyor might be sued. This happened in the 1990s and the NAEA thinks surveyors are worried that it could happen again. People seeking buy to let finance may find this a very real problem.
Let us know what you think:
Have we reached the bottom of the market and house prices are now on the way up?
Are landlords now ready to expand their property portfolio or should they have moved to buy months ago?
If you are thinking of buying more property contact click4quote and make sure you have your cheap landlord insurance in place.
Friday, 21 August 2009
Government database of landlords?
A national database of landlords is being considered by the government. The idea is to crack down on landlords who treat tenants unfairly by allowing properties to fall into disrepair or refusing to return deposits. The Communities Secretary suggests that private landlords will have to pay a fee, probably £40 to register. Councils will then be able to track down landlords and even ban them from letting properties.
Many people have expressed concern that Revenue and Customs will be allowed access to the database. At present tax inspectors can only access landlords’ details in cases of possible tax evasion. The National Landlords Association is also worried that the extra bureaucracy will deter people from renting out property.
The Communities Department say that this proposal is not intended as a way of chasing tax revenue but to make it easier for local authorities to deal with bad landlords.
Some landlords sometimes try to use their landlord insurance as a maintenance resource for their run down property however they are not successful as insurance is for those risks that are unforeseeable and is not provided to fix property that falls into disrepair.
Do you need landlord insurance? Then contact click4quote.com.
Many people have expressed concern that Revenue and Customs will be allowed access to the database. At present tax inspectors can only access landlords’ details in cases of possible tax evasion. The National Landlords Association is also worried that the extra bureaucracy will deter people from renting out property.
The Communities Department say that this proposal is not intended as a way of chasing tax revenue but to make it easier for local authorities to deal with bad landlords.
Some landlords sometimes try to use their landlord insurance as a maintenance resource for their run down property however they are not successful as insurance is for those risks that are unforeseeable and is not provided to fix property that falls into disrepair.
Do you need landlord insurance? Then contact click4quote.com.
Tuesday, 19 May 2009
The different lives of similar landlords
Joe owns a 3 bedroom semi-detached property. His old neighbour Emily owns next door and both rent their properties. While Emily is struggling to make her rent cover the bills Joe is on holiday (again) seeing some European delights.
How can their lives be so different when they are both landlords? Well, Emily is a reluctant landlord, she purchased her property to live in when the market was buoyant, however she had to relocate and due to the property price falling she could not afford to sell. Emily required security so she opted for a 5 year fixed rate mortgage at 6.5%, so not only is she stuck with capital loss on the property she also has a mortgage she can not change due to the capital loss (she had only required a 5% deposit which at the time seemed logical). Emily is renting in her new location and also funding the rent on her old property and is stuck with the prospect of funding the property until the rent rises, and is stuck with the property until the market regains some of it’s losses.
Joe on the other hand has equity in his property, a whole 35%. He purchased the property a few years back with a reasonable deposit and made some gains when the market was rising. He is an experienced landlord with 5 rented properties on variable rate mortgages. His returns were always quite reasonable but presently, due to the low interest rate, he is making significant gains allowing him to pay off more capital and re-invest in some of the properties making them more attractive to prospective tenants due to the competition created by the influx of properties available to rent.
Being a landlord can be a proactive choice of investment, it can also be a reluctant choice that drains finances. In some instances we are seeing tenants evicted due to landlords failing to pay the mortgage while other landlords stand happy in auction rooms picking up bargains which will make significant capital gains over the next ten years.
Being a reluctant landlord or an investment landlord, you must always cost in to your budget the price of landlord insurance. Even if you are in negative equity and making a loss on your rent, being prudent and limiting your risk should be viewed as a necessity. To contrast, there is a negative loss on your property and there is total loss (due to fire or impact) which if uninsured would be a disaster. If you owned your property outright would you leave the property uninsured and run the risk of losing your asset? landlord insurance will not cover very possible loss but will cover the main risks that could cause significant detriment. Paying by direct debit also makes the cost of cover more manageable by breaking payment down in to smaller portions.
Cheap landlord insurance is available from click4quote.com, both online and by phone so if you are looking to maximise your returns or minimise your losses get a quote from clikc4quote.
Are you a reluctant landlord? How are you coping and do you have any tips for other reluctant landlords? Maybe you are an experienced landlord with good advice for newer landlords. Post a comment and let us know.
How can their lives be so different when they are both landlords? Well, Emily is a reluctant landlord, she purchased her property to live in when the market was buoyant, however she had to relocate and due to the property price falling she could not afford to sell. Emily required security so she opted for a 5 year fixed rate mortgage at 6.5%, so not only is she stuck with capital loss on the property she also has a mortgage she can not change due to the capital loss (she had only required a 5% deposit which at the time seemed logical). Emily is renting in her new location and also funding the rent on her old property and is stuck with the prospect of funding the property until the rent rises, and is stuck with the property until the market regains some of it’s losses.
Joe on the other hand has equity in his property, a whole 35%. He purchased the property a few years back with a reasonable deposit and made some gains when the market was rising. He is an experienced landlord with 5 rented properties on variable rate mortgages. His returns were always quite reasonable but presently, due to the low interest rate, he is making significant gains allowing him to pay off more capital and re-invest in some of the properties making them more attractive to prospective tenants due to the competition created by the influx of properties available to rent.
Being a landlord can be a proactive choice of investment, it can also be a reluctant choice that drains finances. In some instances we are seeing tenants evicted due to landlords failing to pay the mortgage while other landlords stand happy in auction rooms picking up bargains which will make significant capital gains over the next ten years.
Being a reluctant landlord or an investment landlord, you must always cost in to your budget the price of landlord insurance. Even if you are in negative equity and making a loss on your rent, being prudent and limiting your risk should be viewed as a necessity. To contrast, there is a negative loss on your property and there is total loss (due to fire or impact) which if uninsured would be a disaster. If you owned your property outright would you leave the property uninsured and run the risk of losing your asset? landlord insurance will not cover very possible loss but will cover the main risks that could cause significant detriment. Paying by direct debit also makes the cost of cover more manageable by breaking payment down in to smaller portions.
Cheap landlord insurance is available from click4quote.com, both online and by phone so if you are looking to maximise your returns or minimise your losses get a quote from clikc4quote.
Are you a reluctant landlord? How are you coping and do you have any tips for other reluctant landlords? Maybe you are an experienced landlord with good advice for newer landlords. Post a comment and let us know.
Wednesday, 11 February 2009
Landlords, are you offering a realistic rent for your property?
With the property market as it is, more and more people are deciding to rent their properties, as they can’t sell at a price they want. With all these new landlords in the market, it is important to make sure that you get things right and make sure your property stands out from the rest. For comprehensive landlord insurance, make sure you visit Click4Quote.com for a competitive quote to protect your property whilst it’s being let out. Landlord insurance will cover your property and contents adequately compared to a homeowner policy, which may not be valid when a property is tenanted.
More and more houses and flats are coming on to the rental market, which means that many areas are seeing a fall in rent levels. If you are a new landlord then you may not be sure what level of rent you should apply to your property. You could ask a local letting agent, however for an unbiased view it would probably be best to look on websites such as rightmove.co.uk to see what rental values landlords are setting for properties similar to yours in your area. To make sure your property does get rented out quickly, and so that you can start covering costs as soon as possible, it is advisable to lower your rent by around 5 or 10%, to make sure your property looks attractive to the tenant. This does make sense as the properties shown on the website are obviously still vacant, and leaving your property vacant is not good for the property itself or the landlords pocket. After 6 months you could review this and propose a rent increase of say £25 if you feel it’s appropriate.
If your property has fallen unoccupied because you can’t find suitable tenants, or if you are planning on doing some renovation work at your property, Click4Quote.com can offer an unoccupied property insurance policy to ensure you have appropriate cover for the property when its left vacant as some policies will only cover up to a certain number of days of unoccupancy between lets.
Click4Quote.com offers comprehensive landlord insurance for a wide range of tenant types such as professionals, students or tenants in receipt of DSS benefits. So when your property becomes occupied again we can switch your existing unoccupied property insurance to a landlord insurance, saving you the hassle of cancelling one policy and setting a new one up.
More and more houses and flats are coming on to the rental market, which means that many areas are seeing a fall in rent levels. If you are a new landlord then you may not be sure what level of rent you should apply to your property. You could ask a local letting agent, however for an unbiased view it would probably be best to look on websites such as rightmove.co.uk to see what rental values landlords are setting for properties similar to yours in your area. To make sure your property does get rented out quickly, and so that you can start covering costs as soon as possible, it is advisable to lower your rent by around 5 or 10%, to make sure your property looks attractive to the tenant. This does make sense as the properties shown on the website are obviously still vacant, and leaving your property vacant is not good for the property itself or the landlords pocket. After 6 months you could review this and propose a rent increase of say £25 if you feel it’s appropriate.
If your property has fallen unoccupied because you can’t find suitable tenants, or if you are planning on doing some renovation work at your property, Click4Quote.com can offer an unoccupied property insurance policy to ensure you have appropriate cover for the property when its left vacant as some policies will only cover up to a certain number of days of unoccupancy between lets.
Click4Quote.com offers comprehensive landlord insurance for a wide range of tenant types such as professionals, students or tenants in receipt of DSS benefits. So when your property becomes occupied again we can switch your existing unoccupied property insurance to a landlord insurance, saving you the hassle of cancelling one policy and setting a new one up.
Wednesday, 28 January 2009
Avoid the Credit Crunch Crime Wave
Hopefully you will have been lucky enough to escape a burglary in the past, however, recent statistics have shown that the chances of a burglary happening are increasing due to the current economic climate.
A Home Office report showed that the number of domestic break-ins rose by 4% between July and September 2008, which the Government is linking, to the recent economic downturn.
Whether you are a landlord or homeowner this problem could affect you especially if your property is unoccupied at present.
To avoid this happening to you, Click4Quote have put some simple points below.
Make sure the final exit doors of your property have secure locks preferably British standard 5 lever mortice deadlocks, and window locks fitted. Ensuring that the hinges, frames and glass panels are in good condition is also a good idea.
In addition to this it is important to make sure that these locks are used when you leave the property or retire for the night, a surprising amount of burglaries occur from the opportunist thief, who does not need to use force to gain entry. Crucially this will often mean that you will not be able to claim on your homeowner insurance or landlords insurance, as there is usually a condition that requires violent and forcible entry has to be made for a theft claim to be valid.
The above would also apply in the growing number of cases whereby thieves have gained access to a property by using hooks or magnets through letterboxes to get keys located near a door or window. Make sure keys are secure placed away from any easily accessible areas.
If you take a few simple precautions to protect your property it will make it harder for thieves to target you especially in these times of economic downturn.
If the worst should happen and you do become a victim of burglary you will have to make a detailed insurance claim. This is easier if you have a record of your possessions, the best way to do this is to use a free account on www.underyourroof.com, which enables you to list all your treasured belongings online so that you can access the information even if your computer is damaged or stolen.
Ensuring your property is adequately insured in the first place is also an important point. Making sure you have the appropriate insurance for your needs is key in making sure that should you have to make a claim, your insurance will be valid.
If your property is let to tenants or is unoccupied at present, this will usually mean that standard homeowner insurance will not be suitable for this type of property.
Click4Quote.com offer standard policies underwritten by AXA for landlord insurance, unoccupied property insurance and homeowner insurance if you occupy the property yourself. Feel free to contact us to discuss your requirements and we will be happy to advise you and offer a free quotation.
If you have any tips to share with others about reducing crime to your property, please share your comments here.
A Home Office report showed that the number of domestic break-ins rose by 4% between July and September 2008, which the Government is linking, to the recent economic downturn.
Whether you are a landlord or homeowner this problem could affect you especially if your property is unoccupied at present.
To avoid this happening to you, Click4Quote have put some simple points below.
Make sure the final exit doors of your property have secure locks preferably British standard 5 lever mortice deadlocks, and window locks fitted. Ensuring that the hinges, frames and glass panels are in good condition is also a good idea.
In addition to this it is important to make sure that these locks are used when you leave the property or retire for the night, a surprising amount of burglaries occur from the opportunist thief, who does not need to use force to gain entry. Crucially this will often mean that you will not be able to claim on your homeowner insurance or landlords insurance, as there is usually a condition that requires violent and forcible entry has to be made for a theft claim to be valid.
The above would also apply in the growing number of cases whereby thieves have gained access to a property by using hooks or magnets through letterboxes to get keys located near a door or window. Make sure keys are secure placed away from any easily accessible areas.
If you take a few simple precautions to protect your property it will make it harder for thieves to target you especially in these times of economic downturn.
If the worst should happen and you do become a victim of burglary you will have to make a detailed insurance claim. This is easier if you have a record of your possessions, the best way to do this is to use a free account on www.underyourroof.com, which enables you to list all your treasured belongings online so that you can access the information even if your computer is damaged or stolen.
Ensuring your property is adequately insured in the first place is also an important point. Making sure you have the appropriate insurance for your needs is key in making sure that should you have to make a claim, your insurance will be valid.
If your property is let to tenants or is unoccupied at present, this will usually mean that standard homeowner insurance will not be suitable for this type of property.
Click4Quote.com offer standard policies underwritten by AXA for landlord insurance, unoccupied property insurance and homeowner insurance if you occupy the property yourself. Feel free to contact us to discuss your requirements and we will be happy to advise you and offer a free quotation.
If you have any tips to share with others about reducing crime to your property, please share your comments here.
Friday, 9 January 2009
Tax allowances on income from property for Landlords
If you are a new landlord you may not yet be fully aware of the tax deductions that may apply to you. Click4Quote.com have listed some examples where tax deductions can be made, which could cut your costs.
You can deduct the premiums you pay for almost any insurance like fire, theft, flood insurance, for your rental activity. Get a landlord insurance quote to arrange your property insurance if you haven’t done so already.
The costs of repairs of rental property are fully deductible in the year in which they are incurred.
Landlords are entitled to a tax deduction whenever they drive anywhere for their rental activity.
Interest is often a landlord’s single biggest deductible expense. Interest on credit cards, on loans for various purposes for their rental property should be exempted from the taxes.
If you travel overnight in connection with your rental activity, you can deduct your airfare, hotel bills, meals, and other expenses. But all the documents should be kept very carefully.
Landlords may deduct their home office expenses from their taxable income.
If you hire anyone to perform services for your rental activity, their wages should also be deductible from the taxes as a rental business expense.
You can obtain a tax deduction for casualty losses like any type of damage or destruction.
You can deduct fees that you pay to attorneys, accountants, property management companies, real estate investment advisors, as operating expenses.
Tax deductions for landlords can make the difference between losing money and earning a profit on a rental property. So make sure you take full advantage of these. More information is available at http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_10013376
For more advice about becoming a landlord you can visit Landlord Zone or Residential Landlord for a wealth of invaluable information about letting your property.
Don’t forget keeping your Insurance valid for rental use is quick and easy. Visit Click4Quote.com for a free landlord insurance quote, or for an Unoccupied Property Insurance quote whilst your property is vacant or undergoing any renovation.
If you hire anyone to perform services for your rental activity, their wages should also be deductible from the taxes as a rental business expense.
You can obtain a tax deduction for casualty losses like any type of damage or destruction.
For more advice about becoming a landlord you can visit Landlord Zone or Residential Landlord for a wealth of invaluable information about letting your property.
Don’t forget keeping your Insurance valid for rental use is quick and easy. Visit Click4Quote.com for a free landlord insurance quote, or for an Unoccupied Property Insurance quote whilst your property is vacant or undergoing any renovation.
Tuesday, 16 December 2008
Festive Ski Holiday? – Get Travel Insurance!
Most people enjoy the festive period at home with the Great British weather – cold, wind and rain! However more and more people are travelling abroad to enjoy Christmas and the New Year in more traditional wintry surroundings - seeking snow and ski sports activities.
If you are departing on a Christmas break it is important to remember ski travel insurance when you go away as you are more likely to get an injury whilst on this type of holiday than a normal summer break. It is estimated that about 10% of all British skiers suffer an injury on the slopes with the risk of more serious injury increasing in the last decade. One factor that increases injury on the slopes is lack of correct preparation. It should always be remembered that skiing is a very active and physical sport and that you should prepare your body for the trip by exercising and strengthening the muscles that are particularly involved that are not necessarily used on a day-to-day basis back home.
Buy taking time to prepare before you go may mean you don’t lose out on a days skiing whilst away just because of muscle ache, or you don’t enjoy the holiday to the full as you end up skiing with a pulled muscle for a week!
Our top ski holiday tips
• Take out skiing travel insurance when taking any ski trip abroad and always check which activities are covered as these vary from each providers wording
• Alcohol can take affect quicker at high altitudes and most ski insurance providers will not pay out if you injure yourself or others whilst under the influence – so beware and be careful. A drunken skier is a dangerous skier and it won’t just be the ruined holiday you end up paying for.
• Know your abilities and level - don't take the black run straight from you nursery slope lesson – it just doesn’t make sense. Always use the correct equipment also as it will help protect you and others.
• Research your destination as local laws and customs differ from one place to another!
• Take photocopies and/or store copies of your important documentation (passport, insurance details, credit card number and cancellation details) online using a secure online data storage site
• If travelling in Europe, take your EHIC, available for free from post offices or online. Remember the EHIC is not a substitute for ski travel insurance - you must have both to be fully covered.
Are you off to the slopes and need ski insurance? If so contact click4quote now on 08450 89 90 91 or buy ski travel insurance online.
Research: http://www.fco.gov.uk/resources/en/press-release/2008/01/fco_npr_skiers150108
If you are departing on a Christmas break it is important to remember ski travel insurance when you go away as you are more likely to get an injury whilst on this type of holiday than a normal summer break. It is estimated that about 10% of all British skiers suffer an injury on the slopes with the risk of more serious injury increasing in the last decade. One factor that increases injury on the slopes is lack of correct preparation. It should always be remembered that skiing is a very active and physical sport and that you should prepare your body for the trip by exercising and strengthening the muscles that are particularly involved that are not necessarily used on a day-to-day basis back home.
Buy taking time to prepare before you go may mean you don’t lose out on a days skiing whilst away just because of muscle ache, or you don’t enjoy the holiday to the full as you end up skiing with a pulled muscle for a week!
Our top ski holiday tips
• Take out skiing travel insurance when taking any ski trip abroad and always check which activities are covered as these vary from each providers wording
• Alcohol can take affect quicker at high altitudes and most ski insurance providers will not pay out if you injure yourself or others whilst under the influence – so beware and be careful. A drunken skier is a dangerous skier and it won’t just be the ruined holiday you end up paying for.
• Know your abilities and level - don't take the black run straight from you nursery slope lesson – it just doesn’t make sense. Always use the correct equipment also as it will help protect you and others.
• Research your destination as local laws and customs differ from one place to another!
• Take photocopies and/or store copies of your important documentation (passport, insurance details, credit card number and cancellation details) online using a secure online data storage site
• If travelling in Europe, take your EHIC, available for free from post offices or online. Remember the EHIC is not a substitute for ski travel insurance - you must have both to be fully covered.
Are you off to the slopes and need ski insurance? If so contact click4quote now on 08450 89 90 91 or buy ski travel insurance online.
Research: http://www.fco.gov.uk/resources/en/press-release/2008/01/fco_npr_skiers150108
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