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PIN Founder and Top Property Investment Educator Simon Zutshi

PIN Founder and Top Property Investment Educator Simon Zutshi

This is a reminder about the free Property Time Bomb webinar tonight at 7pm with Simon Zutshi all about how you can avoid the property Time Bomb.

If you would like to join Simon on this webinar all you need to do is Click Here and register your details and we will email you with the webinar joining instructions.

If you are already a landlord then you need to listen to this webinar in which Simon is going to explain about the property time bomb that most investors are sitting on, and more important what you can do right now to make sure you are prepared and profit rather than lose out.

Many property investors and landlords are blissfully ignorant of the potential property time bomb they are sitting on, so when we heard that Simon Zutshi is running a no cost webinar tonight  –  Tuesday 29th October 2013 at 7pm, all about what to do about this situation, we thought we really should let you know so that you have the opportunity to listen in to find out what Simon is doing right now to his portfolio to ensure that he maintains his high level of cash flow, and discover the various options open to you as property investors and landlords.

If you would like to join Simon Zutshi on this webinar all you need to do is Click Here and register your details and you will be emailed with the webinar joining instructions, but you do need to act quickly as there are only a few places left on this webinar and attendance is limited to just 500, so we recommend you secure your place right now to find out how you can protect your cash flow.

Click Here Now To Register!

With newspaper reports of rising rent arrears and tenant rent defaults, many landlords want to protect against the loss of rent. There are a number of specialist products available for landlords to use including Rent Guarantee Insurance.

Here Legal 4 Landlords, the UK’s leading provider of specialist products and services to landlords and the lettings industry, explain the benefits of rent guarantee insurance, as well as looking at some of the smaller print.

How it works

The Truth About Rent Guarantee Insurance

The Truth About Rent Guarantee Insurance

In theory, rent guarantee insurance can be a landlord’s proverbial best friend: if your tenant fails to pay their rent, the insurer will pay you instead.

The outstanding amount is then recovered by the insurance company from the tenants directly.

Of course, in some instances you may agree with your tenant to accept a delayed payment because of financial problems or other extenuating circumstances, and therefore would not need to make an insurance claim.

On the other hand, landlords may face difficulties of their own some months, and for around £120 a year rent guarantee insurance offers you piece of mind that your rent will be paid on time and in full when you most need it.

Relief for legal costs and void periods

Most good insurance policies will also include legal cover for the eviction of the tenant. Landlords should note that the eviction process can be a lengthy and costly period of time, the legal cover provides landlords relief in terms of time and money.

What’s more, as long as the eviction process started within the policy period, the insurance company will continue to pay your legal costs up to the policy limit even once the policy has ended.

In addition, most policies will pay 50% of the rent for up to 3 months after eviction whilst you find a new tenant. However, if policy ends during the eviction process you will of course have to renew the policy in order to receive this and your monthly rental payment.

The small print

Tenants need to be thoroughly referenced and credit checked in order to be granted the policy. Landlords should have had these checks done before the tenant moved in so there should be no additional costs.

Some insurers won’t allow claims for the first 3 months of the policy, and there may be an excess to pay that is equivalent to one months’ rent and landlords won’t receive anything without renewing if you are in the last month of an active policy.

It also means that there is little point in claiming for rent that is a month late unless you are sure the tenant will continue to not pay and/or you want to evict the tenant.

With only 30 days to claim after the rent became overdue, this can be a difficult judgement to make as your tenant may well intend to pay.

If you do agree to delay payment by more than 30 days, make sure you keep all your correspondence otherwise you won’t be able to backdate the claim if the tenant doesn’t end up paying.

Not only do you then lose another month’s rent on the excess, but it could void your policy altogether in some instances.

Policy renewals are not guaranteed. Unless eviction proceedings begin immediately, any tenant defaulting towards the end of a policy could stop you from being able to renew and so the eviction costs could have to be met by the landlord

The way that some other rent guarantee policies are set up means that the odds are stacked in favour of the insurance company.

Despite this, in a recessionary environment with decreased job stability even tenants with a good credit history may face financial difficulties, so it is very worthwhile for landlords to take action protecting against rent default.

Don't become a rogue landlord

Don't cut corners when renting out property

The downturn in UK property valuations has lead many existing homeowners, some of whom are desperate to sell up, to consider alternative ways to cash in on their current property, without having to sell it below their expected valuations.

A fairly noticeable proportion of these vendors are choosing to become first-time landlords, rather than settling for a below market offer.

The prospect of more reluctant or accidental landlords entering the private rental sector (PRS) is not such welcome news for the UK rental property market. Ill advised or inexperienced landlords often make mistakes or cut corners in order to preserve cash flow or increase rental yield.

Any bad business practices can be perceived by some to be the actions of a rogue landlord, prompting Legal 4 Landlords to issue some general guidance advice for new, first-time and inexperienced landlords

All landlords need to comply with the current UK regulations and the following points are highlighted as essential:

• All prospective tenants should be thoroughly referenced and credit checked by a reputable agent, to ensure financial ability to pay the rent and gain an insight into the suitability and character of the tenant.
• Provide a proper Assured Shorthold Tenancy agreement (AST) signed by both Landlord and the tenant, outlining the length of the tenancy, amount of rent, date rent is due, and details of which government deposit protection scheme is to be used.
• At the start of the tenancy walk round with the tenant and conduct a detailed inventory describing the condition of all the fixtures and fittings of the property in detail, along with the furnishings.
• Gas appliances must be checked annually by a registered Gas Safe engineer and the landlord must provide the tenant with a copy of the Gas Safety Certificate (CP12).
• The landlord should take out comprehensive Buy-To-Let or Landlord insurance to protect their property asset.
• All repairs should be fixed promptly and only use reputable tradesmen that you know and trust to tend to the property, this is extremely important if emergency repairs must be done at short notice.
• If using a lettings or property management agent remember to conduct Due Diligence on them thoroughly and make sure as a landlord that you are happy with their terms and conditions before appointing them.

There are currently a record number of people searching for suitable rental properties in the UK, meaning that would-be landlords should have no problem finding a willing tenant, providing their properties are fit to rent.

New and first-time landlords should note that letting a property can be stressful and time consuming, as well as a very financially and personally rewarding experience, and is an effective way of providing an additional income.

Prospective landlords will need to remember they are effectively starting a business that centres on property and must remember to treat it as such.

Legal 4 Landlords are the UK’s fastest growing Tenant Eviction specialists who also offer a wide range of useful services for landlords including Tenant Referencing, Landlord and Tenant Insurance policies and Rent Guarantee insurance.

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Landlords See Rental Profits Fall

UK PRS Rent is Now More Affordable

Rents have fallen for the first time in 10 months as landlords look to keep homes occupied over Christmas, but rents in some parts of the UK have bucked the downward month-on-month trend.

The typical rent in England and Wales dropped by 0.4% to £717 a month in November, the first month-on-month fall since January.

But despite the seasonal decline, the average rent for a property is still £25 a month more expensive than it was this time last year.

Rents have risen in all regions over the last 12 months, with London and the South East experiencing the fastest rises annually at a rate of 4.2%.

The typical monthly rent in London stands at £1,033 and in the South East it is £741.

Landlords are looking to avoid having properties vacant over the Christmas period, and are being less aggressive with rental pricing as tenant activity slows in the run up to the New Year.

Across the UK, the limited supply of rental accommodation means there will still be strong upward pressure on rents in the early part of 2012.

Rental demand has remained high as would-be buyers have been unable to get onto the property ladder, faced with having to raise large deposits or finding the terms of mortgage deals too restrictive.

Rents in some parts of the UK bucked the downward month-on-month trend

• London – Rents up 0.3%
• Wales – Rents up 1.2%
• Yorkshire & Humber – Rents up 1.2%
• West Midlands – Rents up 1%

The East Midlands saw the biggest drop over the month, as PRS rents fell by 2.2%

The monthly index, based on analysis of more than 18,000 properties across England and Wales, also showed that tenant finances improved slightly in November despite the squeeze on household incomes, with 9.3% of all rent late or unpaid, compared with 10.1% in October.

Even though a large proportion of current renters would be credit-worthy buyers were they able to provide a big enough deposit to satisfy tight mortgage lending criteria. These tenants are typically financially sound, and less likely to experience payment issues.

UK landlords without Rent Guarantee insurance can expect rental arrears to creep back up next year due to challenges to the economy generally, the threat of the Eurozone crisis and unemployment.

With the cost of moving into a home set to increase for first-time buyers (FTB) when the stamp duty holiday ends in March 2012, the strain on the UK Private Rented Sector (PRS) will be greater than ever, and the cost of renting will continue to increase as the new year progresses.

Legal 4 Landlords spokesman Sim Sekhon said: “UK landlords are in a strong position right now, however unless they take the appropriate steps to protect their rental properties and the income that they provide, that position will change as more regulation is introduced and the tightening of Government Fiscal policies begin to take effect in 2012.

Legal 4 Landlords know how important it is for landlords to protect their property assets. They have worked closely with providers to develop comprehensive Rent Guarantee and Insurance products for UK landlords.

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