Currently viewing the tag: "Buy-To-Let insurance"
Landlords Risk Losing Insurance Claims

Landlords Risk Losing Insurance Claims

UK Buy to let landlords have been warned not to try and make false economies by attempting to make savings on their annual insurance premiums.

The warning has come from Michael Portman, managing director of tenancy referencing and insurance firm Let Risks. He says that in the current financial climate, landlords are trying to keep their premiums low to make savings.

The result, he says, is that there has been a large rise in the number of private rental sector (PRS) properties that are “significantly under-insured”.

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Reluctant Landlords have been avoiding insurance obligations

Reluctant Landlords have been avoiding insurance obligations

When the banking crisis struck back in 2008, mortgage lending in the UK virtually ceased as lenders became wary of the toxicity of sub-prime mortgage loans and raised their lending criteria (and lowered their Loan To Value ratios) to unprecedented and highly restrictive levels, virtually killing the property market.

This meant that properties became financial millstones for many people who were unable to sell, resulting in an upsurge of reluctant or “accidental” landlords who were able to take advantage of a booming rental market caused by the fact that potential property buyers were forced to hand over substantial deposits in order to be allowed a mortgage or were unable to obtain mortgages due to the tightening of the lending criteria and were subsequently forced to rent!

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Become A Legal 4 Landlords Franchisee and Profit!

Become A Legal 4 Landlords Franchisee and Profit!

The premier landlord service provider, Legal 4 Landlords has grown from strength to strength in just 4 short years, thanks to their unique perspective of the UK Buy-To-Let market, smart business practices and a dedicated team of franchisees and affiliates.

Legal 4 Landlords was founded in 2008 by three partners, Binder Dhillon, Sim Sekhon and Stephen Moss, real life landlords who wanted to provide essential, cost effective services for other landlords facing the challenges of the UK property rental market.

The business trio have since expanded the company’s products, services and network of extremely capable service delivery experts to offer fresh, new innovative ideas in an ever changing market place and are now seen as the UK’s premier specialists in landlord services within the Private Rented Sector (PRS) and Lettings and Property Management Industry.

Legal 4 Landlords franchising really works!
The company’s first franchise registered profits of over £50,000 in their first year!

Legal 4 Landlords are market leaders in the lettings industry, with offices throughout England, Wales and Scotland, offering a range of services that help landlords across the industry whilst maintaining uncompromising principles through an extensive and dedicated franchisee network.

Legal 4 Landlords are the UK’s No.1 specialists within the Lettings and Property Management Industry, whether you’re a landlord, agent or tenant, Legal 4 Landlords unique landlord and tenant products and services cater for all needs.

Legal 4 Landlords core service areas range from Tenant Evictions, Debt & Rent Recovery, Tenant Referencing, Landlord and Tenant Insurance policies and specialist Rent Guarantee insurance products.

Legal 4 Landlords offer a range of services that help not only landlords and letting agents across the industry, but also our affiliates. The Legal 4 Landlords affiliate scheme is a very unique service to letting agents, estate agents, mortgage brokers, solicitors and commercial agents or other known associates within the industry.

Legal 4 Landlords have also broken into the tenant market, with great success.
New services are currently being developed and released over time.
Legal 4 Landlords tenant services have been developed to help provide for and protect tenants, which ultimately assist their landlords and agents too.

Legal 4 Landlords are always striving to deliver a new approach to solving the challenges faced by Landlords and Letting and Property Managing Agents; with this in mind, Legal 4 Landlords launched the Legal 4 Landlords Franchise Network in 2009.

Legal 4 Landlords have 50 franchise areas across the UK, with each area created depending upon the number of agents, landlords and tenant evictions registered.

The Opportunity Of A Lifetime

If you operate a business within the UK Buy-To-Let market or in the letting and property management industry and are able to develop good relationships with landlords and letting agents through marketing, networking and word of mouth. Then a Legal 4 Landlords Franchise is definitely for you!

The franchisee’s role will initially be to build solid working relationships whilst selling Legal 4 Landlords services.

As the franchisor, Legal 4 Landlords are here to help with the pre launch of your business, train you on the products and services, develop new products and services, support you with day to day tasks and market the branding on a national scale.

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or Contact

Legal 4 Landlords – Head Office
4 Webster Court,
Westbook Crescent,
Warrington,
Cheshire
United Kingdom
WA5 8WD

Tel: 0844 567 4001

Reluctant landlords making the wrong choices when it comes to insurance

Don't be Confused Over Landlord Insurance

An increasing number of private residential properties are being rented out to tenants because the owners have moved out but found it difficult to sell the property on the open market. The rise in “reluctant” or “accidental” landlords has caused ripples of concern within the UK lettings industry.

In fact, according to the Association of Residential Letting Agents (ARLA), increasing numbers of property vendors are either forced into or choosing to rent out homes they cannot sell in order to avoid financial ruin, in fact 47% of ARLA members experienced movement of this nature in the final quarter of 2011.

ARLA operations manager, Ian Potter said: “Renting a property on a short term basis can be a good option for anyone who has found a buyer for their home, but who have not found the right property to buy themselves. The approach would also suit individuals considering a move to a new area who would like to test the water before committing to anything final”.

Many UK property owners are facing this position as the UK property sales market remains sluggish despite the recent rally in property prices due to the end of the stamp duty holiday. However many property owners are getting it wrong when it comes to getting the right sort of insurance cover.

Property vendors move out of the property and on to pastures new but are unable to sell the property and attempt to get it rented out in order to reduce their financial burden. In doing so new landlords often decide to cut corners and attempt to save money in the wrong areas in a bid to reduce their financial stress, with potentially disastrous consequences if they decide to scrimp on insurance costs and don’t choose specialist landlord insurance, but they only discover that they are not covered when the worst has already happened, compounding their misery.

Legal 4 Landlords spokesman Sim Sekhon said: “When renting out property there are factors that many people don’t take into consideration and even take for granted, such as insurance or making sure the rent will be paid on time, every time. New landlords need to educate themselves on their responsibilities, the demands and expectations of tenants in the current rental market as well as complying with government and safety legislation. It can be a tough world for the inexperienced but the specialist products and services offered by Legal 4 Landlords enable landlords and letting agents to protect their rental assets, including landlord and Buy to let insurance”.

Landlords are advised to check that they have the correct insurance cover for their rental properties and it may also be a requirement of the mortgage company to provide a copy of the policy document.

Insurance is a must!

Specialist Insurance provides landlords and tenants with peace of mind

UK landlords should already be aware of the necessity, legality and financial importance of having the right insurance protecting their property asset and should always seek to get their rental properties suitably covered with a comprehensive landlord or Buy-To-Let insurance policy.

However, whilst landlords stay insured keeping their property assets protected, very few tenants bother to investing in contents insurance or specialist tenant insurance.

Even though the tenants don’t own the property and are therefore not responsible for the actual bricks and mortar, the property does still contain all of their personal belongings, including important documents and irreplaceable mementoes and so insurance should be an important consideration.

In the event of a claim having to be made, in the case of a fire, for example, tenants may have mistakenly thought they would automatically be covered by the landlord and tried to claim for loss of their important and expensive items from the Landlords Insurance policy, the landlord would receive compensation for the damage to the property, whilst the tenants would find, in most cases, that their claims were unsuccessful and they would be left with nothing.

Tenant Insurance is a necessity is because it is highly unlikely that any tenant belongings will be covered by the landlords insurance. The landlord should have insurance cover to protect the fabric of the building itself, (including certain contents such as the kitchen cupboards, bathroom fixtures etc) and even cover for loss of rent but not the contents of the tenants.
Tenant insurance will also help to protect the tenant’s deposit as good policies cover tenants against accidental damage.

Read the full article on Legal 4 Landlords Blog

Tenant Damage can be costly

Tenants may cause serious damage to rental property

Who pays for repairing the damage at a rental property can depend on what exactly has gone wrong.

Landlords are responsible for damage to the fabric of the property, such as, missing roof slates causing damp, broken down boilers and leaks and all landlords should have suitable Buy-To-Let insurance in place to cover the costs of repairs.

Tenants may also have to put their hands in their pockets if the landlord considers damage to fixtures and fittings is beyond normal wear and tear. Ie. The day-to-day deterioration of a property, like scuffs to the decor, carpets wearing and screws coming loose. There are suitable insurance policies out there specifically for tenants.

A fairly high proportion of Tenancy Deposit disputes relate to disagreements about what exactly comes under the definition of normal wear and tear.

Landlords need to make this call, and be prepared to back their judgment with evidence if required to do so at independent adjudication should a tenant lodge a complaint against having money deducted from the deposit.

Normal wear and tear is not defined in law, but the definition comes from years of rulings in disputed cases before the courts.

A judge or adjudicator is likely to consider normal wear and tear as damage or deterioration to a property arising from normal usage.

That triggers a debate about normal usage, which varies from case to case. For example, normal usage in a family home with a couple of toddlers is vastly different to that in a property lived in by a single pensioner.

• Normal wear and tear may include – finger marks near electrical sockets and switches; scuffs on doors and walls; tack holes; faded or peeling paint or faded soft furnishings
• Damage may include – writing or drawing on walls; holes in walls or woodwork; nail holes that need filling and repainting; carpet stains; burn marks; ripped soft furnishings or missing fittings.

Problems arise if the tenant’s deposit is not enough to cover the landlords cost of cleaning and repairs.

Often a tenant who mistreats a buy to let property is likely to have rent arrears as well and the landlord may be forced to go through the eviction process and get the tenant out before repairs can be started .

There Will Never Be A Better Time To Invest In Property

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