The Landlord Blog
Unoccupied Property Insurance – The Danger Of Squatters
Perhaps you are not fully aware of the full dangers that can face you as a landlord in today’s market? Well the aim of this post is not to criticize your ability to provide a fair and professional service to tenants or to teach you about how to conduct your business as a property investor or landlord. Instead this is purely to inform you of a most unwelcome threat to your property, the squatter. Squatters can be a landlord or property owners worst nightmare, not just because they enter your property illegally and usually by forced entry, but because of the legalities that need to be put in place before intervention can be established, removing squatters can be a time consuming and costly business.
Not only this but the added stress and anger only fuel the situation even further, finally resulting in court costs and legal bills that could easily exceed several thousand pounds. That is before you take into account the loss of income and the all too familiar reports of excessive damage to your unoccupied property and subsequent costs and work necessary to put the property back to an inhabitable state. You can see why unoccupied property insurance is a worthwhile investment. It is one disturbance to certain landlords that is becoming somewhat of a problem, especially in built up inner city areas and suburbs around the UK’s major cities such as London, Birmingham, Manchester and Edinburgh. In these areas are many opportunities for squatters to inhabit properties. Especially in houses that are leased out to students throughout the academic terms and lay empty for months in between student terms such as the summer and festive holidays.
Squatters taking over vacant commercial properties, often the seasonal business premises are a large concern due to the sheer effort and legal red tape involved in property owners and landlords removing them, often spending large amounts of time and money obtaining specific documents or court orders such as IPO’s or Interim Possession Orders. Often by this time the squatters may have already moved on leaving you out of pocket by a substantial amount and with the possibility of having to spend further amounts putting right any damage to the property. There are certain measures that can be taken to avoid the threat of intruders, squatters, and the vandalism of unoccupied property of which we will discuss in upcoming posts.
Landlords – Tenant Obligations
Being a landlord can be a full time business for many, with many obligations to meet all aspects of your contract between you and your tenants, providing the best services to ensure satisfaction for all parties. There are many laws in place to protect both landlords and their tenants and as either you need to do your research to discover what your specific obligations may be and what legal rights you are entitled to in the event of circumstances arising.
Apart from the normal responsibilities of a landlord which include the overall safety of the property and the structural stability of the rented accommodation, there certain acts of parliament which need to be properly understood and applied when taking on the role of a landlord. These include the Race Relations Act, Sex Discrimination Act and the Disability Discrimination Act which are all accountable for when renting or letting properties.
Residential landlords need to ensure they are responsible for and duly maintain gardens and other common areas when renting accommodation to more than one tenant and need to ensure the property is in a suitable condition for tenants to live in. All electrical and gas appliances in the property need to be checked regularly and proven to be safe and any repairs to external parts of the property and any plumbing and heating equipment are all obligations that you need to actively keep updated as a landlord.
After its recent introduction, all landlords need to supply an up to date Energy Performance Certificate or EPC when taking in new tenants which outlines the energy efficiency of the property. In addition, any furnishings and furniture that are provided by the landlord need to be properly fire rated and the fire safety must meet government regulations.
When setting up as a landlord for the first time, it is important to remember the requirements that you have to ensure a safe environment for your tenants and when choosing the correct insurance to cover your needs, letprotector.co.uk are one of the leading landlord insurance providers who can help you arrange first class competitive cover in the shortest time scale. With the ability and the resources to create tailored and bespoke landlords insurance policies for a wide range of landlords needs and requirements, letprotector.co.uk are one provider who can assist you today.
The Rise In The Number Of Tenants Seeking Rented Housing
Figures released in recent months have once again reported that the number of tenants looking for suitable rented housing is still very high, prompting more home owners to consider taking on extra properties to rent out to tenants across the UK. The increase in the overall number of tenants renting accommodation stems back to the massive drop in the housing market in the 90’s when many homeowners found they couldn’t afford to repay their mortgages due to steep rises in the Bank of England rates and subsequently mortgage repayments.
As a result, the opportunity arose for a variety of different private housing solutions to be made accessible to tenants with the introduction of specialist mortgages called by to let mortgages. These mortgages enabled home owners to purchase second properties for the sole purpose of leasing or renting them out to a range of tenants depending on their requirements and specifically targeted market. All the signs point towards a great time for investors and landlords to take on additional properties for rental purposes and doing their bit in easing the current tenant waiting lists.
Across the UK many letting agents are saying the same thing and that is that there is a shortage of different housing for different tenants such as terraced properties for DSS tenants and those with families who work. There is a calling too for and apartments and flats for students and city professionals desperate to find affordable property that is in close proximity to town and city academic buildings and businesses. What’s more is that for many tenants the prospects of renting a property are far more financially achievable than buying a house and paying the monthly repayments. What is more is that with a rented property, tenants are not held liable for the property’s maintenance.
Government figures show that although there may be a better time for first time home buyers to purchase their first properties within the next year or so, there will always be a strong need for a large number of new and seasoned landlords. Even if the property market improves, many will still prefer to pay rental incomes, having all repairs and other necessary works carried out by their landlord. Altogether this is great news for buy to let landlords and existing landlords wishing to expand on their portfolios or enter the rental market for the first time.
Insurance Advice – Cover For New Landlords
If you are a landlord for the first time you probably won’t know everything there is about insurance policies for landlords. In this instance it is up to the experts such as our professional team here at letprotector.co.uk to offer unbiased and supportive advice and guidance on giving you the most beneficial insurance cover to properly insure your investment. One thing to mention before going any further and as an import point to start with is this. In order to rent out a property to tenants, you need to purchase landlords insurance. Normal house insurance will simply not be sufficient enough and could leave you being unable to claim if and when the situation arises, leaving your policy null and void.
Taking the time to arrange the best policy for your needs is critical for you and any tenants you house within your property. There are too many examples of insufficient insurance policies being taken out where a landlord has perhaps bent the truth about their particular requirements. This has led to their policy provider failing to pay out and the landlord losing far more than what they believed they may have saved. The truth is that with many landlord insurance providers, being completely honest about your policy needs can often result in your correct policy premiums being almost the same. In any views, the competitive nature of the current market and the costing restructure applied to such insurance policies means that you can receive very cost effective quotes to give yourself and your property the protection you deserve.
When opting to take on the role of becoming a new landlord, there is one important decision to make and that is the type of tenant you are hoping to attract. Advertising your property for rent on notice boards and free papers, for example, may bring you working class couples and the odd student, possible DSS tenants or elderly tenants. Not to seem biased towards any band of tenants but in many cases, selecting particular tiers of tenants can place a higher risk on your property being mistreated, for example DSS and student tenants are a bigger risk than an elderly couple or those families who are generating an income and so may make an impact on your premiums.
