• It can be a good idea to use a lettings agency to vet tenants as they will be familiar with all the necessary checks and will carry these out on your behalf. Of course this will cost you money so you may choose to do this yourself.
• If you decide to do the checks yourself then be sure to carry out the checks rigorously and find all the requried information before making a decision.
• Before carrying out any checks you need to get permission from the prospective tenants. You will find that is a check in itself, as anyone who will not agree to checks being carried out is unlikely to be a good tenant.
• Financial information is crucial! You must be sure that the tenant can meet the rental payments every month. Find out current employment details, including salary and position. As a ball park figure the rent should be no more than 40% of the tenant’s salary.
• You should also ask for previous landlords references. Even if they can afford the rent, you need to avoid messy disrespectful tenants who could damage your property. It is a good idea to ask for a reference from their landlord before last as the current one may give them a good reference if he is desperate to get rid of the tenant.
• It is also a good idea to find out how long the tenant stayed at their last property as this will give you an idea of how long they may stay at yours. 
• Identity fraud is an increasing risk so make sure their name and previous addresses are genuine.
• You may come across applications with no rental history if this is the tenant’s first rental property. In this instance you should ask for a guarantor, and make sure you submit the guarantor to financial checks.

Don’t forget to protect your investment! Isis Insurance is a specialist Landlords insurance broker.

For a landlords insurance quote call us now on 01625 539 656

• Get the price right – you need to make as much as you can from your investment, but if you push it too far you’ll be left with an empty property. Check similar properties in the area and make sure your rent is in line with the competition. 
• Consider using a lettings agent. They will do the advertising and tenant vetting for you. Although this may make your life easier, it can be expensive.
• If you decide to advertise the property yourself you need to spend some time researching the best publications and websites to advertise with. Be sure to consider your target market when doing this.
• When writing your advert always emphasise the positive. It is good practice to state the three best assets of the property in the first sentence of the advert, e.g. ‘spacious house with two bathrooms and garden, just two minutes walk to the university’.
• Get a To Let board. If you’re using an agent they should provide one, if you’re going private then make or buy one. To Let boards are very useful especially if other properties in the area are available, as potential tenants may be having a look around. Make sure you put your phone number on the board. The board also tells your neighbours there is a property available and they may in turn tell friends or colleagues.
• Once the advert(s) has been placed be available to answer your phone! Have a pen, paper and diary ready to book in viewings. It is also a good idea to write down the best points of the property to reinforce to the potential tenant. 
• When conducting viewings always arrive first and switch on all the lights and make sure the place is clean and tidy. Be friendly and professional – don’t forget the potential tenant will be forming an opinion of you as a landlord. Make sure you point out all the good features of the property and don’t focus on any negative areas. When the viewing is over make sure you have the person’s contact details so you can follow up with a call the next day.

Check back next week for advice on vetting procedures and how to choose the right tenant.

For landlords insurance advice call the experts at Isis Insurance on 01625 539 656

One of the most important aspects of renting is landlords insurance, as it protects you from many of the issues you may face as a landlord. Here we look at the most important points to consider when choosing your landlords insurance:

1. When buying your landlords insurance remember to shop around. Do not necessarily think that the biggest brokers are the best. This is a very specialist area of insurance and you are often better off dealing with experts, such as Isis Insurance.

2. Check the excess. You need to be comfortable that if something does happen to your property you can afford to pay it. If you budget is tight you could consider increasing your excess to reduce your premium, but you must be able to pay the excess in the event of a claim against your policy.

3. Check what the policy covers. Specialist Brokers such as Isis Insurance can offer various levels of cover, including loss of rent, glass breakage and contents insurance.  

3. Look at your rebuild cost or sum insured figure and make sure that this covers a complete rebuild; otherwise as a landlord you could be facing a huge bill if your tenant burns the place down. The Association of British Insurers has a website at www.abi.org.uk that can help you work out your rebuild cost.

For advice on Landlord Insurance call Isis Insurance on 01625 539 656

The cost of rebuilding the property will not be the same as the market value. Surveyors and insurers have some rules of thumb to help you work out what your property is actually worth – but to be absolutely sure you should get a surveyor”s report. If you”re buying a property, the lender”s valuation report will also contain a rebuilding cost figure.

Broadly speaking to work out your rebuilding cost, you should know the building dimensions which can be calculated by multiplying the length and width of the property in feet by the number of storeys.

1. Calculate the ground floor area. (ground floor area = Length x Width)

2. Calculate the total floor area. (total floor area = Ground floor area x Number of storeys)

3. Calculate the total rebuilding cost. (total rebuilding cost = Total floor area x Rebuilding cost per square foot)

The cost per square foot will vary depending on where in the U.K. you live.

You can calculate your re-build cost online, visit the ABI (Association of British Insurers) website by clicking here. (Scroll to bottom of page for their free calculator – you’ll need your ‘total floor area’ calculation from step 3)

Click here for a Landlords insurance quote

‘Residential Landlord Insurance’ commonly known as ‘Buy to Let Insurance’ are terms used when describing a specific policy designed to cover a property owner who receives remuneration for providing residential accommodation. Alternatively, if the property is occupied for commercial use a ‘Commercial Property Owners policy’ will be required instead.

Here are 5 top tips to keep down your Landlord Insurance Premium;

• Make sure you have the correct ‘Buildings sum Insured’

To ensure you are paying the correct premium, make sure that you have the correct sum insured. House rebuild costs (depending on your property location) are generally lower than the property value. A common mistake is to give the value of the property as the sum insured, which in turn will make your premium higher.

To obtain an accurate price it’s essential to ensure you have the correct sum insured. The best way to find out is from a professional survey of the property or if you haven’t had one recently visit the Association of British Insurers who will assist in getting the correct figure.

•  If you have more than one property put them all on one policy.

If you have a portfolio of properties Isis Landlords Insurance can give you some considerable saving on your premium. Instead of insuring your properties individually you can add them to one policy with one common renewal date. The savings made can be huge with no difference in the cover you will receive. You can start the policy off and when your other polices fall due for renewal simply add them onto your policy. With Isis you can also add other types of properties like shops and offices to the same policy and receive the same discounts.

• Add a Voluntary Excess to your policy

By adding a voluntary excess to your policy you will be unable to recoup that amount of money specified in the event of a claim. However the savings can be worthwhile, for example, with some insurers a voluntary excess of £100 can give you a 15% discount which can make a noticeable difference to your premium. Note – This is in addition to any compulsory policy excess.

• Try to get tenants with a professional occupation

If you manage to rent your property to professional people who are in full time employment you can make some remarkable savings on your premium. Some insurers won’t quote if your tenants are Students, DSS or Asylum seekers.

• Get an intruder alarm on your property

This sounds like common sense but it’s amazing how many people forget to add security to their rented properties. It’s possible to save up to 10% on your premium.

However, every Landlord’s requirement is different. Some Landlords require ‘contents only’ policies for their flats. Some Landlords have empty properties and others have converted properties such as bed-sits which some insurers regard as higher risk.

Click here for a Landlords insurance quote

Most of today’s landlords face risks on a daily basis and owning a second house as an investment is no different – A fire or robbery may destroy your investment and the hard work you have put into it. With property letting fast becoming an increasingly popular method of saving for the future, it makes sense to protect it! Insurers have recognised the need for landlords insurance and as a result have developed policies and cover to cater specifically for landlords. At Isis we deal with a wide range of landlord insurers and we are able to find the best insurer for each landlord’s circumstances, be that a landlord with either one or a portfolio of properties.

In addition to providing cover for a range of properties, our panel of landlord insurers can also offer competitive terms for whatever the type of tenants involved from professional working tenants through to students, DSS referrals and even properties let to local authorities or asylum seekers.

A standard landlords insurance product consists of a number of insurance products bundled together which will not only save you a great deal of time and effort, it should also cost less too! If you plan to be, or are a residential landlord you would insure the building and any of your own contents left in the property. An example of what would be covered may include (but would not be limited to) the building, any fitted interior units, and other possessions. A landlords insurance policy would also provide cover against fire, storm, theft, vandalism/malicious damage, leakages, smoke damage, subsidence, burst pipes, impact from vehicles, falling trees, animals, aircraft, aerials and masts. Most policies also include property owners liability, protecting the landlord against claims that may be made against them by either the tenant or general public, and also loss of rental income should the property become uninhabitable following a claim.

The tenant would only take out an insurance policy to cover their own contents and possessions.

Commercial landlords insurance is slightly different in that the landlord is responsible for insuring the building and claiming premium payments from the tenants as business tenants would normally be charged (and expect to pay) for the building insurance cover. In addition a commercial landlord would also need landlords liability insurance, legal cover, debt management and other bespoke insurance policies.

 Frequently Asked Questions

• What is the buildings sum insured?
  You are always asked to give an estimate for the buildings sum insured when obtaining a Landlords Insurance quote. This is an estimate of the cost for rebuilding your property should it be completely destroyed. Do not confuse this with the selling value of the property, which is normally much higher, otherwise you will be paying more than is necessary for your landlords insurance. On the other hand, do not be tempted to deliberately understate the buildings sum insured since should it come to making a claim the insurers will reduce the amount that they pay you in proportion to the amount you have underestimated.
• Why am I not already covered under my normal home insurance cover?
  Home insurance policies will not pay when the property is being used to make an income. You must therefore buy a Landlord’s Insurance policy which is especially designed and rated for these circumstances.
• I have several properties, do I need to buy one policy per property?
  No, you can buy one insurance policy which covers as many properties as you have. Please complete our online form above or call 01625 539 656.
• How do insurers calculate the premium for Landlords Insurance?
  Different insurers use different ways of assessing the risk of your property and therefore how much to charge you. Some of the major factors are:
• The location of the property (postcode)
• The buildings sum insured
• The type of tenants in the property
• A history of claims
• The age of the property
• The type of property (flat, detached, terraced etc)
• What is Buy to Let Insurance?
• landlords insurance is commonly also known as Buy to let insurance. The cover available under a buy to let insurance policy is the same as a landlords insurance policy. You can get cover for your property, contents and landlords liability insurance. You will also be able to get insurance for a portfolio of properties as well as a singular property.

If you need buy to let landlords insurance cover then ISIS Insurance can help, we have partnerships with a panel of the UK’s leading landlords insurance specialists. Through our partners we offer comprehensive landlord insurance cover at extremely competitive landlords insurance rates.

For a landlords insurance quote online click here – Alternatively call our Landlords Insurance team on 01625 539 656.

Any business faces risks on a daily basis and owning a second house as an investment is no different. A fire or robbery may destroy your nest egg and the hard work you have put into it.

With buy-to-let properties becoming an increasingly popular method of saving for the future, it makes sense to protect your investment. Insurers have recognised the need for landlords insurance and as a result have developed a policy to cater specifically for landlords.

A landlords insurance product consists of a number of insurance products bundled together which will not only save you a great deal of time and effort, it should also cost less. If you plan to be, or are, a landlord for a residential property you would insure the building and any of your own belongings left in it (such as furniture).

An example of what would be covered may include (but would not be limited to) the building, any fitted interior units, and other possessions. A landlords insurance policy would also provide cover against fire, theft, vandalism/malicious damage, leakages, smoke damage, subsidence, burst pipes, impact from vehicles, falling trees, animals, aircraft, aerials and masts. You may also want to consider a policy which includes items such as business interruption and liability.

The tenant would take out an insurance policy to cover only their own contents and possessions.

Insurance for commercial landlords is slightly different in that the landlord is responsible for insuring the building and claiming premium payments from the tenants as business tenants would normally be charged (and expect to pay) for the building insurance. In addition a commercial landlord would also need liability insurance, legal cover, debt management and other bespoke insurance policies.

Click here for a Landlords insurance quote

It is vital that all landlords adhere to the Gas Safety Regulations as failure to do so could result in the death of your tenants and the risk of prosecution if you are shown to be negligent.

Your duties as a landlord:

• You must ensure all gas fittings and flues are maintained in a safe condition. Gas appliances should be serviced in accordance with the manufacturer’s instructions. This includes portable appliances, such as LPG cabinet heaters. If the manufacturer’s instructions are not available it is recommended that they are serviced annually unless advised otherwise by a CORGI-registered installer.
• An annual safety check must be carried out for each gas appliance/flue.
• The regulations specify that before any new lease begins, you must make sure that gas safety checks have been completed within one year before the start of the lease date, unless the appliances in the property have been installed for less than 12 months, in which case they should be checked within 12 months of their installation date.
• It is your responsibility to ensure all installation, maintenance and safety checks are carried out by a CORGI registered gas installer. It is a good idea to keep a record of each safety check for at least two years.
• If gas safety checks are carried out in property with existing tenants you must ensure they are provided with a copy of the check within 28 days of the safety check date. For any new tenants you must provide a copy of the record before their moving in date.
• Make sure you get a copy of the gas safety regulations and are sure you are compliant. Do not assume that an annual service inspection meets the safety check requirement, or that a safety check will, on its own, be sufficient to provide effective maintenance.
• If you are unsure about the safety of any of your gas appliances/flues be sure to ask the advice of a CORGI-registered gas installer.

Which gas appliances am I responsible for?

The regulations apply to any gas appliance or flue installed in rented accommodation with the exception of:

• Any appliances which are owned by the tenant and not the landlord.
• Any flues/chimneys solely connected to an appliance owned by the tenant.
• Any gas appliance (such as gas fires provided for customers in non-residential areas of public houses) that is exclusively used in a part of premises occupied for non-residential purposes.

Who is responsible for gas safety?

As the landlord you are responsible for all gas safety in your properties. You may not pass responsibility to your tenant with the exception of an appliance or flue installed in a non-residential part of a premises, for example shops and public houses etc. In such cases a contract may be drawn up between a landlord and tenant. Although the onus falls on the landlord to ensure gas safety, all tenants have a duty not to use any gas appliance they believe to be dangerous.

Even if you use a management agency to look after your property, you as the landlord retain overall responsibility for ensuring compliance with gas safety regulations. However you may arrange for the agency may make the arrangements for the safety checks and maintenance to be carried out, but this must be clearly detailed in the contract with your agent.

What if an appliance fails the safety check?

If any gas appliance/flue in your property fails a safety check it is the landlord’s responsibility to ensure that any safety issues are resolved by a CORGI registered gas installer before the equipment is used again. It is an offence to allow your tenants to use a gas appliance/flue which you know to be unsafe. Never reconnect an appliance that you have been told is dangerous, which has either been isolated or disconnected for safety reasons, until the fault has been rectified by a CORGI registered gas installer.

It is always a good idea to keep records of any work carried out to rectify defects identified in the safety check.

For further information contact the Health and Safety Executive gas safety advice line on 0800 300 363

Click here for a landlords insurance quote

Before you make any decisions be sure this is the right investment for you.

2. Prepare for the unexpected!
Make sure you set some money aside for the unexpected. Your property may sit empty for a few months each year or you may have maintenance issues such as a faulty boiler to finance. One rule of thumb some buy to let investors apply is to assume in any financial planning that the property will sit empty for two months of the year. If you don’t have enough money in the bank to cover voids in rent or a major repair issue, do not invest.

3. The cheapest option isn’t always the best!
Beware of buying any property which is in need of major work or has high maintenance issues. Although you may save some money in the initial investment, any saving may be cancelled out by the cost of work and the rent lost whilst the property is being repaired. In some cases run down properties can be a worthwhile investment but make sure you obtain several quotes for the cost of the work as well as factoring in the length of time the property will be empty.

4. Location, Location, Location!
Choosing the right location is crucial for any successful buy to let investor. This isn’t always the most expensive or the cheapest area, but it is always a place where people want to live. Think about what your tenants will want – look at areas in a commuter belt, areas popular with students and areas close to good schools. It is important to make sure the property matches the appeal of the area, for example there is little point investing in a small flat which is near the good schools as families will need a sizable house.
Don’t just look at properties in the surrounding area. It is important to be aware that your home town may not be the best area for investment. Be prepared to look further a field in the search for promising areas.

5. Get a good mortgage deal!
Always shop around when looking for a buy to let mortgage. Make sure you get a variety of quotes and take the time to compare the market. In order to make your investment as profitable as possible it is important to make sure you are not paying over the odds for your mortgage repayments.

6. Protect your investment!
A standard domestic insurance policy will not cover many of the eventualities you may face as a buy to let investor. Buy to let investors have unique insurance needs so be sure to get adequate cover from a specialist broker. Click here for more information on Landlords insurance.

7. How much time and energy do you have?
Before investing in a property consider how involved you are prepared to be. A property management agent can look after the property on your behalf but will charge a fee for this service. Using an agent is often a good idea if you do not live near the property or have limited spare time. If you decide to use an agent be sure to research the market and find out about the fees and services offered before making a decision.
In order to get the maximum return on your investment you may decide to manage the property yourself but be prepared for the time and energy involved in carrying out repairs, finding tenants, collecting rents and so on.

8. Haggle!
When buying property remember to haggle over the price. If you are not part of a chain there is less of a risk of the sale falling through which makes you very attractive to vendors – use this to your advantage! You may be able to secure property at a lower price than a higher risk buyer who has to sell their property in order to purchase another.

9. Think neutral!
When choosing the interior décor for any buy to let property be sure not to let your personal taste get in the way. It is always best to opt for neutral colours and styles in order to appeal to the widest possible market.

10. Look after your tenants!
Your tenants are an essential part of your business and should be treated as such. Make sure you build a good working relationship with your tenants and operate professionally. Always give plenty of notice before inspections/visits and be sure to resolve any maintenance issues without delay. If you can keep your tenants happy the less chance there is of them moving out, meaning less money spent on sourcing new tenants and a reduction in costly voids in rent.

Click here for a buy to let insurance quote

In the wake of credit crunch mortgage rates have risen and property investors are finding that rental income alone is not always enough to meet the costs of mortgage repayments and property maintenance costs. As such many buy to let investors are struggling to make an adequate a return on their investments.

New Build Crisis
The current financial climate has seen lenders tightening criteria, especially on new build city centre developments which have recently swamped the UK property market. With some lenders refusing to lend on new builds altogether and others insisting on large deposits, it is becoming increasingly difficult to borrow the required amount of money.

Many experts believe these properties were overvalued from the offset, and the market is getting weaker still as rents and property prices are pushed down due to the sheer number of similar properties available. Many novice buy to let investors have been badly burnt by investing in such properties.

In response to this there are a variety of incentives on offer which aim to kick start the market. Mosaic Mortgages have a bank of lenders that will allow an element of builder deposit paid schemes (usually up to 5%) meaning the investor only needs to put down a 10% deposit.

In addition, Mosaic Mortgages can offer off plan purchase schemes which only require a 5% deposit on the assumption that the maximum loan available on completion will be 85% of open market value.
For example, if the open market value of a property is £125k and the developer is offering a 15% discount on off plan purchase, then the net purchase price is £106,250. As such an investor would only need £5,312.50 as deposit (5% of net price). When the property is completed and the open market value is £125k, there is already equity in the property so there is no need for a further deposit.

New Types of Property Investment
Increased mortgages rates and dwindling rental incomes has led to some investors moving into a new kind of property investment in an attempt to keep profits up. ‘Sell to Rent’ investment involves investors seeking out vendors who will accept a greatly reduced price for their property as they are in desperate need to move quickly, for example those whose homes are being repossessed. The former owners are then offered the chance to be tenants in their old home. The theory here is that as long as the property is purchased for a minimum price the rent should always cover the mortgage, thus ensuring a return on investment.

In this scenario Mosaic Mortgages can help you achieve what is effectively a 100% buy to let mortgage. Mosaic Mortgages have a range of lenders who will bridge the initial purchase at undervalue, typically a maximum of 75% of open market value, but not in excess of 100% of purchase price. They can then engage a buy to let lender who will do a day one remortgage to refinance at 85% of open market value. This can be particularly useful if the property needs refurbishment, as it enables the investor to recover any monies spent on the property at remortgage stage.

A Buyers Market?
But it’s not all doom and gloom in the buy to let market. Some experts believe that for the first time in many years buy to let investors have a great opportunity to increase their portfolio due to the weakening of the housing market.

In recent years rising property prices and mortgage rates have made further investment difficult and many buy to let investors have been remortgaging simply to manage costs, but these new opportunities have led to investors releasing equity in order to expand their property portfolios.

Mosaic Mortgages are constantly adapting to meet the demands of the buy to let market. Mosaic mortgages have access to every type of scheme available the can help any buy to let investor find the best deal. For advice on buy to let mortgages and to find out more about our competitive mortgage products please click here.