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Severe winter weather looks set to hit the UK earlier than expected this year, according to long range weather forecasts, which could catch unsuspecting landlords and their tenants unaware.
The severe weather warning makes right now the best time to check your rental properties roof is intact and leak free and ensure that all property boundary fences are secure.
Heavy rain, snow, sub-zero temperatures and strong winds will eventually cause damage to the roof of any property, but in the private rental sector, the onus to conduct property repairs is definitely on the landlord and not the tenant.
Private rental sector (PRS) landlords should be aware of the benefits of conducting regular routine maintenance on their property assets to help them ensure that all of their rental properties are warm, dry and inviting to potential tenants who may want to live there.
Listed below are a few routine maintenance suggestions that can help landlords avoid getting the winter blues, reduce the potential of paying expensive repair bills and avoid making claims on their Landlords Buildings insurance policies. (Continued)
As you may already know, the Government declared in the 2015 Summer Budget that there would be an increase in Insurance Premium Tax (IPT) for all insurance policies taken out by individuals and companies in the UK.
This will affect the cost of landlord insurance policies for all insurance services offered in the UK.
From 1 November 2015, the standard rate of Insurance Premium Tax (IPT) will increase from 6% to 9.5%.
What this means for landlords and letting agents property rental businesses (Continued)
The Association Of Residential Letting Agents (ARLA) have reported that the number of letting agent members reporting PRS rent increases has dropped for the first time this year.
It was widely feared that many landlords would be forced to increase PRS rents in order to mitigate the abolishment of landlords mortgage interest tax relief, however, the initial knee-jerk reaction has been fairly limited as the changes are being spread over the next 5 years.
Nationally, only 33% of ARLA registered letting agents reported a 4% decrease in the number of landlords increasing PRS rents during the month of August, the lowest figure recorded since April this year.
However, these figures vary when viewed on a region by region basis
The reason for the drop in the number of landlords raising PRS rents is that many educated landlords are making use of specialist rent protection insurance to guarantee continuous rental income. (Continued)
New data published by Your Move and Reeds Rains shows that average monthly rental prices in England and Wales have fallen on a monthly basis for the first time since March 2015, with the average national monthly rental price down by 0.1% in August, dropping from £804 to £803 (GBP).
Overall, annual rental price growth has slowed more significantly from the all-time high of 6.8% recorded in July to just 5.5% in August.
However, despite the national slowdown, letting agents are reporting that rental prices in some UK regions have continued to reach new highs during the month of August, with average rents in the East and West Midlands regions reaching £596 (GBP) and £586 (GBP) respectively, representing new record rental prices.
The data published by the letting agent group does not reveal the extent of tenant rent arrears and the affect they have on PRS income, but it does show that that average rental prices in the East of England are rising at faster rate than London (10.2%) rising at an annual rate of 11.5%, which could cause a multitude of financial problems for struggling tenants.
Smart landlords are being more pro-active in their approach to safeguarding rental income with record numbers using specialist products such as Rent Protection insurance to guarantee continued rental income from tenants. (Continued)
According to new research conducted by a leading UK insurer there has been a huge upsurge in the number of landlords in the UK, however the majority of these new landlords have entered the private rental sector accidentally and many have failed to understand the legal requirements that govern the sector.
Many new landlords found themselves in the position of moving home and then renting out their old property because they couldn’t sell it. This is one of the main driving forces behind the growing new landlord trend, with the research finding that 55% of new landlords ended up renting out their former main residence to tenants because of financial need.
The survey, conducted by LV landlord insurance, found that:
LV estimate that 7% of adults in the UK rent out a property to help supplement their earned income, generating an average rental income of around £678 (GBP) per property, per month. (Continued)
Picture the scenario, you have been thinking of treating yourself to a good night out. There’s a swanky new restaurant opened in town. It’s been fully refurbished, the décor looks great, and you have heard some great things about the food.
A quick look at the menu and the prices look affordable, so you think why not and make a reservation.
It’s only when the waiter is taking your order, that you realise that a lot of things on the menu cost extra.
The steak itself might be a fair price but the peppercorn sauce is extra, and so are the vegetables. Order chips too and it’s no longer looking like a good deal for a night out. It’s looking ever so slightly like someone’s taking advantage.
The truth is that, in life, we expect some things to be included, if you order a coffee you don’t really expect to have to pay for the sugar.
But we’re also well used to the £9.99 flight that costs ten times that much after you have included all of the taxes, insurance, booking fees and the cost of daring to take luggage. (Continued)
A recent survey has discovered that 59% of PRS tenants are more than satisfied with the fair rental price of their rented property and many tenants have a good relationship with their landlords.
The survey carried out by AXA Business Insurance, appears to disprove the recent claims made by the homelessness charity, Shelter, who allege that most tenants in private rented sector properties are living in poor conditions whilst being charged exorbitant rental prices to live there. The charity maintain that damp, mould, and bad ventilation in private rented sector properties cause asthma, allergies, breathing problems and worse among tenants. Shelter have not disclosed any information regarding tenant lifestyles or habits that may be contributing factors to the complaints and the organisation are laying the blame squarely on landlords shoulders.
Landlords have a duty of care to provide tenants with safe and habitable environments to live in and many landlords use specialist insurance policies to help protect their tenant’s financial interests as well as ensuring a continuous rental income. (Continued)
New research claims that private rental sector (PRS) landlords, who operate their rental property businesses without specialist insurance in place, are losing almost £10 Billion (GBP) a year because of tenant’s causing damage to rental properties and unpaid rent arrears.
The report published by Access Legal reckons that tenants cause approximately £4.5 Billion (GBP) worth of damage to rental properties in the UK each year and PRS landlords can spend approximately £9.9 Billion (GBP), covering property damage, avoidable repairs and rent arrears, each year.
The research found that:
However, landlords can avoid some of the pitfalls highlighted by the research by utilising specialist insurance policies to safeguard their vital rental income and protect their rental property assets against damage caused by tenants. (Continued)
Research by the National Landlords Association (NLA) suggests that over 400,000 private rental sector (PRS) landlords have been forced to claim on their landlord insurance policies due to rental property damage caused by tenants over the past 12 months.
The research indicates that almost 10% of private rental sector landlords have been forced to make claims on their landlord insurance policies for damage to rental properties caused by tenants over the last 12 months. (Continued)
Honesty, Good Communication And Tenants Liability Insurance Are Crucial To Avoiding Tenancy Disputes
New research from one of the three Government approved tenancy deposit protection scheme operators, my|deposits, has highlighted the importance of honesty and good communication between landlords and their tenants at the end of a tenancy, in order to avoid getting into a tenancy dispute over deductions from the tenant’s deposit funds. However, the research doesn’t take in to account the use of widely available specialist insurance policies to avoid deposit disputes.
The research conducted among landlords and tenants renting property in the private sector without a tenant liability insurance policy, discovered that just under a third (30.1%) of notified deposit disputes didn’t proceed to a formal alternative dispute resolution adjudication over the last twelve months, with my|deposits taking credit for asking landlords and tenants to communicate first. (Continued)