Protecting a landlords investment
An unwelcome effect of the continuing credit crunch has been an increase across the country in tenant rent defaults. In one recent case (3 bed house Loughborough) the landlord, with fully referenced tenants who had previously always paid on time, found they stopped paying, would not talk to the agent and would not leave the house. This took some months to resolve through the courts with associated high costs in lost rent and legal fees. However, this landlord had Belvoir’s excellent Rent & Legal Insurance Policy in place and for a modest, tax deductible, annual premium had the rent paid and the eviction carried out by the insurer. Many of our landlords now have this type of insurance as it is a robust comprehensive protection policy. None of us enjoy planning for the worst but professional landlords increasingly consider this type of insurance a necessary part of their investment strategy.
Recent lettings legislation
In October 2008 it became law for a rental property to have an Energy Performance Certificate (EPC) before any advertising was carried out. Belvoir takes a pro-active approach early on and there is no reason why the EPC should cause any delays or be overly costly (£75 or less is a typical price and they last 10 years). It can make a useful marketing tool for your property if used properly.
The latest Private Rental Sector (PRS) report has been carried out by Julie Rugg, York University & is essential reading for anyone involved in the PRS. In brief it recommends a “light touch licensing system for landlords and mandatory regulation for letting agencies” For more information visit the Communities Website www.communities.gov.uk
