If you are a landlord, then like a lot of people, you probably regard the cost of insurance as an inevitable and necessary expense – but, at the same time, you’ll want to keep the cost of it as low as possible.

To be on the lookout for what you consider is cheap landlords’ insurance, therefore, is in many ways only quite natural.

Beware of the headline price

One possible problem with products branded as low-priced or cheap landlords’ insurance, though, is that the attractive price tag may have been achieved at the cost of the levels of let property insurance cover provided.

Just looking at the price alone might tell you very little about the insurance cover and protection offered. Looking carefully through the landlord insurance policy terms and conditions may be the only way that you can make sure that your policy does what you need it to do in terms of helping you protect your livelihood as a landlord.

What is cheap landlord insurance for you may not be so for someone else

Also, what you consider to be the cheapest landlord insurance for you may be different from that of your other contemporaries and fellow buy to let colleagues. That is because not only will your requirements differ for the type of building insurance you arrange, but your very perception of cost-effective landlord insurance may do too. Your landlord insurance needs to match your own unique requirements and financial circumstances.

So that you may feel better informed about your landlord insurance options – including the cost and the protection offered – let’s tackle some of the most frequently asked questions (FAQs) we’re asked here at Cover4LetProperty.

Does cheap landlords’ insurance really exist?

It’s hardly uncommon to see the banner headline “cheap landlord insurance” liberally spread across many buy to let home insurance advertisements. But does cheap landlord insurance really exist?

That all depends on your perception of just what is cheap insurance. As we mentioned above, what is cheap for one person may not prove to be cheap for another. This is because while one landlord may be looking to pay as little as possible for his or her let property insurance – and will be satisfied with the lowest possible price – another landlord may want a very comprehensive policy with all its bells and whistles.

In the latter case, of course, that is unlikely to be the cheapest policy available even though it represents good value for money in terms of the cover provided.

How do I choose the most suitable landlord insurance?

Clearly, if you compare a buy to let property insurance policy providing a relatively basic level of cover and benefits with one that offers a far higher degree of protection then you might expect to see the more basic policy offered at a lower price relative to the more comprehensive policy.

But if the policy providing broader cover is a good match to your requirements, then you may still consider it to be “cheap at the price” – it represents good value for money.

Perhaps the most suitable way of finding cover that meets your needs and at a price that you find realistic is by comparing landlord insurance policies (or let us make those comparisons on your behalf by using our landlord insurance quote service). By making those comparisons, you can weigh up which one offers you the most suitable level of protection and at the most attractive cost.

Remember that all buy to let insurance policies will differ in certain respects. Some might offer the following benefits and features as standard or optional cover, for example, while others may not:

• cover for the legal fees that arise from pursuing or defending an insured risk – that may even include situations where you did not win the case (but typically this would not cover situations where you were taking legal action against tenants for eviction or the recovery of rent arrears);
• trace and access cover – this is cover that will allow you to recover the costs associated with a tradesman’s explorations to find the origin of a problem (up to pre-agreed limits);
• malicious damage by your tenants – such cover may not be typical on some buy to let property insurance but is offered as standard with the policies we arrange;
• subsidence – once considered an essential part of all buildings insurance, not all buildings insurance policies of today will provide it as standard and that may leave you very significantly exposed unless you opt to pay an additional premium;
• loss of rent cover – you may suffer this surprisingly easily if your property is rendered un-rentable due to an insured event that makes your property temporarily uninhabitable (specified maximum limits may apply); and
• full tenant flexibility – not all policies will offer the same degree of cover irrespective of the nature of the tenants that you accommodate, whereas others may not differentiate between such individuals as the unemployed, students, or recipients of benefits.

The bottom line may be simply that what is cheap landlord insurance for someone else may be neither cheap nor suitable for you. It is always advisable to read the policy carefully and study its benefits thoroughly before starting to think about its pricing level.

How much does landlord insurance cost?

Once again, this will depend, of course, on your specific needs, requirements, and circumstances. As we have mentioned, different landlords will have different needs. What is more, your landlord insurance cover and the options for the premiums to pay will vary from one landlord insurance provider to another also.

At Cover4LetProperty we are committed to helping you to understand how you might influence the cost of your buy to let cover and the following points might help:

• if your business involves letting property on an unfurnished basis, you may not need contents cover – arranging buildings insurance cover only plus any necessary liability indemnity insurance might enable you to reduce your costs;
• similarly, some policies may welcome your use of additional security precautions such as burglar alarms and upgraded locks on doors and windows (above those specified as necessary within the policy document), with reductions in premium – to qualify for any reduction in premiums, these may need to be approved and certified devices rather than merely ones that you have bought or made yourself;
• you may have noticed that quotations are occasionally issued on the basis of what is called, subject to excess, which is a sum of money that the insurance provider will expect you to contribute towards any future successful claims and it is sometimes referred to as the first part of a claim – many policies will let you increase the amount of excess on the policy over and above that which is the minimum in return for a discount on the premiums payable;
• shopping around is important, of course, and just as with any other purchase, the price of an insurance policy may vary significantly between insurance providers – remember that the cheapest policy might not necessarily be the one that offers you the greatest degree of security so read the policy detail carefully and try to avoid focusing exclusively on the price; and remember that
• some policies may carry a premium that is influenced by the occupancy details of your property in terms of tenant numbers – smaller letting unit numbers per property may result in lower premiums.

Can I use regular home insurance instead of landlord insurance?

If you’re looking for lower-cost solutions, it’s important not to be swayed into thinking that regular owner-occupier home insurance policies will suffice. Such insurance typically is not valid for letting situations and you may find any future claims rejected once the insurance provider discovers that your property is let to tenants.

If your property is mortgaged, your mortgage provider may typically insist that you have buildings insurance in place at all times to protect both your financial interests in the property.

If you have the “wrong” type of insurance (e.g. you use home insurance for a let property), this could be classed as fraud and your mortgage provider could ask that you settle any outstanding mortgage in full immediately.

What is the difference between landlord insurance and home insurance?

The distinction between these two forms of property insurance cover is critically important and one that every landlord (and some owner-occupiers) must understand:

The basic outline

• most property owners want to protect the very substantial investment they have in their bricks and mortar. They usually look to property buildings insurance to help them with that;
• property insurance itself comes in various shapes and sizes with much of that variation being attributable to how the provider of cover interprets the risks associated with any given property and a critical part of that risk assessment considers just how the property is being used;
• in this context, there is a vitally important distinction – whether it’s being used for letting or exclusively owner-occupier purposes;
• that matters because insurers typically see let properties as constituting a different risk profile to those that are owner-occupied – so, a landlord letting property will need appropriate property insurance for the risks they face and that typically means landlord insurance rather than standard owner-occupier cover;

The bottom line

• the reality is simple – if your property is being used for letting, you must have specific landlord insurancecover and that typically applies even if you continue to occupy your property and only let out a part of it;
• if you have owner-occupier home insurance for a property being used in full or part for generating rental income, any claims you might make against that policy may be refused if and when the provider discovers – as they almost certainly will – that it has been let to tenants;

How cover differs

• in addition to appropriate cover for the property itself, you may find that landlord insurance varies in other respects too;
• it typically provides enhanced levels of third-party liability cover – providing essential indemnity against your liabilities as the landlord if a tenant, one of their visitors, a neighbour, or even a member of the public is injured on your property or has their property damaged;
• it may provide certain additional “business management” benefits or options relevant to the fact that your property is your business – this might include, as standard or a paid option, things such as legal fees protection, cover for accidental damage caused by tenants, personal accident, and loss of rent. Some of these may be paid-for additional extras;

Legal issues

• as we touched on before, if you have any form of buy to let mortgage, you probably signed a loan agreement committing to keep the property fully and appropriately insured at all times. If you subsequently only use owner-occupier property insurance cover, you might be in breach of that agreement with your mortgage lender and be liable to repay immediately the sum advanced plus interest.

How do I find the most cost-effective and suitable landlord insurance for me?

This may not be so much of the time-consuming chore that you first imagined it to be. Let us do the hard work for you, make the searches and insurance comparisons on your behalf, so that we can match the policies to your precise needs and requirements.

That just leaves you to choose the insurance policy that appears to be the most appropriate for you.

By letting us help – either by getting a quote online or telephoning us – you can find what we believe is appropriate and cost-efficient landlord insurance property cover. This allows you to maintain the level of protection that you need but not at the expense of compromising on the level of cover provided.

It’s sad to know that there’s barely a single aspect of life that criminals won’t try to turn into an opportunity – and property is no exception.

In what follows, we’ll examine two of the most common types of fraud and some of the measures you can take to reduce the chances of you becoming a victim.

Bogus property investments

Financial fraud is as old as history itself. Investopedia relates the case of insurance fraudster Hegestratos who committed his crimes in ancient Greece – around 300 BC.

In the modern world, probably the most frequent financial scam is bogus investment. It typically involves somebody asking you to invest in property (often buy-to-let) or land. The returns promised are often exceptionally attractive and the risks are portrayed as low to non-existent.

The scam is rarely confined to a hopeful telephone call made to your home. Quite often the crooks operate from well-appointed (though short-term rented) offices. They might also run large-scale extravagant seminars and conferences in major venues such as luxury hotels.

In some cases, some of the people you might see around the office are totally unaware that criminal activity is being perpetrated – they genuinely believe they are working in a legitimate capacity.

If you go forward and hand over your money by way of an investment, you may subsequently discover that:

• the investment property in question is derelict and uninhabitable;
• in some instances, the property might actually have been demolished since the photographs were taken;
• planning permission to convert the dwelling into, say, an HMO (House in Multiple Occupation) has already been refused; or
• the land being proposed for purchase and development of residential property is currently zoned for agriculture, with little or no prospect of it ever being approved for building purposes.

By the time you have discovered the true nature of the proposition, your money will have disappeared, along with the proposing company and their apparent business.

Identity theft

Incredible as it may sound, there are people who will steal information in an attempt to “prove” that they are, in fact, you!

Armed with that false evidence of identity, they will then use it to do something such as making an application for a second mortgage on a property you own. If the application is approved and the requested funds are advanced, the criminals will then quickly disappear – never to be seen again. Instead, you will be left with the considerable confusion and the costly expense of legal action in trying to resolve the mess.

In practice, many such cases only go to show how difficult it is to prevent such identity theft when other people are pretending to be you. You are likely to be surprised by just how much information about you – your background, who you are, where you live, and what your work is – is hardly secret but readily available in the public arena.

As the charity Age UK warns, even individuals who have plenty of experience in making investments of one kind or another still fall prey to scammers and fraudsters.

Defences and solutions

To carry out their crimes, these crooks often rely on institutions, organisations, and individual victims, who fail to conduct sufficient and necessary checks and due diligence before parting with their money.

That’s why criminals typically prefer properties that are unoccupied before attempting the identity theft of the owner. Properties that are remote or otherwise difficult to access are also more difficult for unsuspecting potential investors to check out and verify before falling foul of some investment scam.

There are several steps you might take to reduce the risk of your becoming a victim of this type of fraud:

• do whatever it takes (or get someone else you trust) to view a property or land before investing in it;
• check the facts of the property or land through the Land Registry, local press, and the local authorities, well in advance of making a final decision about investing; and
• make sure any property you own is duly registered with the Land Registry and that you have requested immediate and direct communication about that registration if the property is put up for sale. You can also specify that it cannot be sold or offered as security on any loan or mortgage without written confirmation from your solicitor – with your solicitor under the necessary instruction also to confirm your identity.

The government has helpful advice on this and related subjects – it’s well worth reading.

It’s invisible, colourless, tasteless, odourless – and highly toxic. That’s what makes carbon monoxide (CO) gas so lethal.

Unfortunately, it is also a gas that is so readily generated when you’re doing something as normal and straightforward as burning carbon-based fuels – such as oil, gas, coal, and wood – to heat your home or provide hot water. To burn safely, without the production of carbon monoxide gas, these fuels need a steady flow of fresh air.

Carbon monoxide is less dense and lighter than air, so it rises to the top and fills a room from the ceiling down.

Some idea of the seriousness of carbon monoxide poisoning is given by the most recent figures published – on the 5^th of August 2021 – by the Office for National Statistics (ONS). These reveal that there were 116 recorded deaths from such poisoning in 2020 – but it is widely recognised that the actual death toll may be even higher, since some people may be dying from CO poisoning symptoms that are difficult for doctors to detect.

The National Residential Landlords Association (NRLA) updated a press release on the 15^th of July 2022 reminding all landlords that, with effect from the 1^st of October 2022 – following the amendment of the Smoke and Carbon Monoxide Alarm (England) Regulations 2015 – carbon monoxide detectors must be installed in every room of a let property where there is a solid fuel heating appliance. (That includes any open fireplace that has not been blocked up and therefore remains available for use).

Landlords’ responsibilities

With dangers as high as these in normal living conditions, landlords bear a particular responsibility for ensuring that their let property is always a safe environment for tenants, free of health hazards and free from any of the risks associated with carbon monoxide poisoning.

Furthermore, existing legislation already requires an annual inspection and certification of any gas installation in a let property. The supply and its appliance must be inspected each year and a safety certificate issued by a registered Gas Safe engineer. A copy of the inspection certificate must be given to your tenants, and immediately any new ones move in. Failure to carry out these annual inspections may incur fines – and other difficulties with the tenancy, including your ability to evict a tenant, for example.

In addition to the legislation relating to CO detectors and gas safety inspections, landlords also bear a more general responsibility for ensuring the health and safety of their tenants, any visitors and, indeed, members of the public. If any individual suffers an injury or has their property damaged, as the landlord you may be held liable and ordered to pay compensation – and if injuries or even deaths are involved that compensation may be substantial.

Landlord’s liability insurance

To indemnify you against such claims, landlord liability insurance is widely used and typically offers at least £2 million of indemnity – and frequently much larger sums.

Even with such indemnity included in your landlord insurance, however, it is essential to remember that the cover does not absolve you from your responsibilities and obligations towards the health and safety of your tenants.

Blatant disregard of the legislation requiring you to install carbon monoxide detectors, the need to carry out annual gas safety inspections, or failure to exercise a due duty of care towards tenants’ health and safety may invalidate your landlord insurance.

There’s been a mixed bag of UK property news making the headlines. You might want to calculate just how much the value of your home has grown since the start of the recent pandemic, or you could be a landlord worried about the damage caused by your tenants’ pets.

The good news for the owners of flats in blocks with dangerous cladding that is soon to be repaired is that mortgages may become available. And the biggest energy cost savings are achieved in new-build homes.

Post-pandemic house prices: How much has your home risen in value?

In a press release on the 20^th of July, online listings website Zoopla calculated that the value of the average UK home has grown at the rate of £48 a day since the start of the recent coronavirus pandemic.

The surge in property values has come against a background of flexible working from home and a growing demand for homes with more space inside and out, with a preference for out of town, semi-rural or coastal locations.

As that demand has taken off and outstripped the available supply, so prices have inevitably risen. But there have been marked regional differences, with values in some areas rising by as much as £106 a day whereas in others they have fallen by as much as £40 a day.

Lets with pets: 85% of landlords and agents have experienced pet damage in rental properties 

A recent survey by the National Residential Landlords Association (NRLA) suggests that many landlords are hard pressed to meet the cost of repairs for damage caused by tenants’ pets.

Announcing the results of the survey, the NRLA revealed that 85% of landlords reported some degree of property damage caused by their tenants’ pets.

So that they do not continue to suffer unacceptable financial losses, the NRLA suggests that one of the outcomes of the current “lets with pets” debate is the ability for them to charge the cost of pet damage insurance premiums or a supplementary deposit from pet-owning tenants to cover the cost of such damage.

Banks agree to lend on properties with updated cladding

On the 18^th of July, online mortgage brokers, Mortgage Solutions, reported that six leading lenders have agreed to consider granting mortgages on flats in blocks where the necessary repairs to hazardous cladding will be paid for from the public purse or the relevant property developers.

Ever since the tragic fire that decimated London’s Grenfell Tower in 2017, hundreds of thousands of flats have been identified in similar jeopardy and danger from hazardous cladding. If those issues are identified, the flat becomes effectively unsaleable and unmortgageable.

The recent decision by banks and building societies to grant mortgages in those cases where the cost of the necessary repairs and safety measures have been approved by the government or the relevant developers will come as welcome relief to their owners.

Buy a new build and save £5,000 over 5 years on energy costs

Savings of almost £5,000 a year can be made if you buy a new-build home compared with the energy costs for an existing dwelling.

That is the conclusion reached in a survey by estate agents Savills and reported by the Buy Association on the 13^th of July.

Since the beginning of the coronavirus pandemic, new-build homes have become popular among 41% more buyers than before. In the brief period between the first quarters of 2021 and 2022, a 7% increase has been recorded in the number of buyers reserving new-build rather than existing houses.

Against a background of rapidly increasing costs of domestic energy, the greater efficiency of new-build homes compared with older, existing buildings means that savings of an estimated £4,900 can be made by the average homeowner.

Why is unoccupied property insurance necessary?

One of the most frequently asked questions (FAQs) we’re asked here at Cover4LetProperty is why unoccupied property insurance is necessary. The property owners in question already have home insurance, landlord’s insurance or commercial property insurance and have no wish to insure the building or its contents twice over.

The answers to other FAQs may help to show that when circumstances change, specialist unoccupied property insurance may be necessary once the premises have been empty or vacant for longer than a specified time.

When do you need empty property insurance?

Unoccupied property insurance – also known as empty or vacant property cover – offers protection for your property when it is standing empty.

By “empty” we mean that no one is living there, or a commercial building is no longer in use. The property could still be furnished, but if no one is living or working there, then it will still be classed as a vacant or unoccupied property after a number of consecutive days.

What happens to standard building and contents policies?

Whether your property insurance is for an owner-occupied home, buy to let property or commercial premises, it is typically written to provide cover during its occupation by the homeowner, tenants, or leaseholders.

Allowances are made, of course, for intervals such as your own holidays, tenants’ holidays, changeovers of tenancy, and redecorating, but most policies will contain a stated maximum number of days that cover will continue while the property stands unoccupied. Typically, that’s somewhere between 30-45 consecutive days – but the precise period may vary from one insurer to another.

Should the property stand unoccupied for longer than that, insurance cover is likely to become restricted to only a few major risks or may even lapse entirely – in which case, of course, any claim you make will fail.

When is a property likely to be unoccupied for longer than a month or so?

If you are a homeowner, you might need to leave your property empty for an extended period to:

• work on a contract that takes you away from home or even abroad;
• refurbish or renovate the property to such an extent that it is temporarily uninhabitable;
• take an extended holiday abroad – to stay with relatives or friends overseas, for example, or to take a world cruise;
• safeguard an inherited property that is currently in probate; or
• you have split up from your partner and moved out of the marital home whilst waiting to sell it.

If you are a landlord, your buy to let property might also be vacated whilst it is undergoing refurbishment or renovation, tenants might be taking an extended holiday or working away from home for longer than a month or so, or there might be a longer than usual interval between one tenancy ending and new tenants moving in.

What are some of the myths about unoccupied property insurance?

Bear in mind that the additional protection of empty or vacant property insurance cover applies to unoccupied properties and not just those that have been left unfurnished. From time to time, a customer might insist that “my property is furnished, so it counts as occupied”. This could prove a costly misunderstanding and error. In fact, your property is considered “unoccupied” after the specified number of days have elapsed even if it is still fully furnished.

There are also several other myths relating to presumed exceptions to the unoccupied property conditions in a typical policy. They too could be equally damaging. To avoid putting your cover at risk, it might be a good idea to review our guide to unoccupied property insurance here.

Quite often, potential unoccupied property insurance policyholders ask: “is it worth it”?

It’s a fair question but one that could be asked for any insurance. Neither we nor anyone else can say for certain whether your particular property will suffer the loss or damage resulting in a claim while it stands formally “unoccupied”. All we can do is highlight the fact that should such a situation arise, your claim may be rejected if you do not have an appropriate form of cover in place.

You should also note that if you have a mortgage on the property, then you are typically legally obliged to always have adequate buildings insurance in place at all times to protect both you and the mortgage lender’s financial interests.

Why does my standard building and contents cover become restricted or lapse after a specified period of vacancy?

When your property is unoccupied, it is statistically likely to be more vulnerable to risks such as:

• damage arising from unnoticed, unreported, or unattended maintenance problems – so that an otherwise relatively minor fault escalates into a full-blown emergency; and
• unauthorised intrusions by burglars, vandals, squatters, or even arsonists.

True, some risks may reduce – such as liability claims from tenants, if you are a landlord – but the overall net effect is that the nature of the insurance required to protect your interests will change if your property is unoccupied. That’s why at Cover4LetProperty we always advise property owners to discuss their insurance needs with us if they think their property may stand unoccupied for more than the specified number of days prescribed in their policy documents.

By way of illustration, it is no accident that for many years the police have given specific advice to help prevent burglaries when properties are unoccupied. That’s because they know such properties are a preferred target for burglars – and so does the insurance industry.

Can’t I just “make do” with my existing property insurance?

You might think that although your property is empty, you can “make do” with your existing insurance – whether that is standard home insurance, landlords’ insurance, or commercial property insurance.

Doing so, however, will typically invalidate your existing policy and means you will not be able to make a claim under it, should you need to.

Unoccupied property cover is a very important aspect for the protection of your empty property, so if you have any questions or are unsure as to the status of your property, please feel free to contact us so that we can compare empty property insurance on your behalf. You may even arrange your unoccupied property insurance online.

What cover is provided by unoccupied property insurance?

You will need to read a policy carefully to establish exactly what cover is provided. However, several aspects will be common to practically any of the unoccupied property insurance products currently on the market.

The principal objective of any such cover is to re-establish the protection you typically enjoy when the property is inhabited or in more or less constant use.

At Cover4LetProperty we offer three levels of unoccupied property insurance cover, so you can choose the most suitable solution for your own unique needs.

What if the reasons for the property being unoccupied are beyond anyone’s control?

It isn’t possible to give a definitive answer, as that may depend upon your specific insurance policy. Typically, however, the cause won’t be a factor.

If, for example, you were let down at the last minute by tenants who failed to arrive as planned, once your property went over the permitted 30 to 45 days, it would still usually be classed as unoccupied.

Honesty is the best policy when it comes to informing your insurer that the property will be unoccupied. Insurance providers typically have ways of establishing whether a property was occupied at the time any incident relating to a claim might have arisen – your claim will be rejected if you have been anything less than completely honest.

Is unoccupied property insurance all that is required?

That depends, once again, on the terms and conditions of your vacant property insurance.

Some policies may require you to make logged, periodic inspections of the property while it is unoccupied and to keep external areas in very good condition (as a way of making it hard to spot that the property is unoccupied – thereby deterring thieves and other intruders).

What if building works are underway?

Typically, the same 30 to 45-day rules would apply during any period when there are building works in progress and the property remains unoccupied for the duration.

Although tradesmen and builders may be present during every working day, that does not make the property occupied as far as your insurers are concerned.

What happens if I leave the property furnished?

This would also make no difference to whether or not your insurers consider the property to be unoccupied.

The definition relates specifically to occupancy and is nothing to do with whether your property is empty of furnishings, personal effects, and the like.

It’s always reassuring to know that we live in an attractive, appealing, and comfortable home. If we’re a homeowner looking to sell or a landlord looking for prospective tenants, of course, it’s more than just reassuring but also a way of getting the most from our hard-earned investment.

With that in mind, here are some of our top tips for making your home more appealing to buyers or renters:

Kerb appeal

• first impressions count and whether you are selling or looking to attract tenants the kerb appeal of your home creates that all-important initial appearance;

• a clean and shiny front door – you might even give it a fresh lick of paint – provides the kind of welcome you’ll want to create and, if there is a patch of grass out front, make sure it’s neatly cut and trimmed;

Niggle-free

• any home that has been lived in – by you or your tenants – inevitable develops those niggling items of maintenance. They may typically be minor matters of concern – such as wonky door handles, broken tiles in the kitchen, dripping taps, or mouldy sealant around the bath or handbasin;

• for the potential buyer come to view the place or a tenant looking to move in, however, these niggles can be a critical turn-off – so it’ll pay you well to fix them all;

Keeping up appearances

• there’s probably nothing worse than a dull and dingy room – so, make sure to let the light in;

• open the blinds or curtains and make sure the windows have been cleaned, opening one or two to let in some fresh air;

• if there are already tenants in the dwelling, persuade them to tidy up, dust, and vacuum before you show any likely successors around the place;

• get rid of clutter as much as you can – even if it means providing extra storage to your existing tenants;

Light up the smiles

• don’t forget the importance of replacing any defective light bulbs;

• making sure that the room lights up at the flick of the switch will show that you’ve cared enough to look after the place and should bring a smile to the face of your viewers;

What’s that smell?

• you might not realise it, but our sense of smell is closely and directly linked to our memory of a place – leave your viewers with a nice smell and they’ll remember the place more fondly;

• it might be more difficult to achieve if you still have sitting tenants in place, but try whatever you can to create a pleasant smell – if only to mask any lingering unpleasant odours;

Green fingers

• any garden – however small, for buyers and for renters – comes with a very definite premium these days, after successive lockdowns during the pandemic left many people house-bound;

• so, the garden’s a plus and you can make the most of it by ensuring that it’s well maintained, perhaps with a swing if you’re attracting families or a barbeque, deck, or patio if they’re likely to be young professionals.

Making your home more appealing to buyers or renters can often be achieved with a minimum of effort and modest expenditure. You’ll reap the rewards, however, if what you have done makes for a quicker sale or more reliable and responsible tenants.

Some landlords seem to think that the key to maximising income from a buy to let business is simply to increase the rent.

The level at which you pitch your rent, of course, has an important part to play but you need to be realistic and what you can charge is naturally constrained by the prevailing rental rates in the neighbourhood in which your let property is located.

So, you might want to think again about raising rents as the only way to maximise your income:

Offer added value services

• have you thought about the add-ons you might offer;
• some tenants will appreciate you offering them additional services such as guaranteed car parking locally, laundry services and perhaps regular cleaning – these are all things you could charge for and hopefully make a healthy profit on;
• there may be other options of a similar nature, perhaps even including your provision of certain home entertainment systems and so on – though you’ll need to be cautious, of course, about providing expensive equipment, as this may be an issue in terms of your contents insurance and its associated risks of theft or damage;

Charge for furniture

• an unfurnished let property typically attracts a significantly lower rent than one that is furnished;
• in a posting on the 14^th of April 2022, estate agents Kaytons suggested that you invest in suitable furniture and enjoy the pay-back of many months of additional rent;

Charge for late payment of rent

• if your tenants pay their rent late, that is costing you money one way or another either in lost interest or in your time and effort in chasing up payment – so, it needs to be made clear in the tenancy agreement that overdue payment will incur charges;
• make sure that your tenants understand and agree to this in advance – don’t just spring it on them as a surprise, unless you look forward to controversy and friction;

Review your insurance costs

• shop around to find the best landlord’s insurance quote possible, or at least one that is both suitable and cost-effective for you – and here at Cover4LetProperty we can help you do just that;
• remember that sometimes maximising your income can be at least in part related to reducing your expenditure;

Avoid unnecessarily lengthy gaps between tenancies

• when your property is available for rent, but you have no tenants in place, this is called a “void” and you are then earning nothing at all in rental income, of course;
• sometimes you may have little or no alternative but to have gaps between tenants but in many cases, this happens simply due to poor planning on the part of the landlord concerned;
• so, whenever you know that tenants will be vacating, act immediately to secure new tenants and don’t wait until the last minute before doing things such as advertising the vacancy and lining up your next tenants;

Investigate deposit accounts opportunities

• admittedly, it’s difficult these days to secure higher interest rates on very short-term deposits – but those rates may vary significantly between banks and other deposit-taking institutions;
• so, try to put any surplus cash into an account that offers a higher interest rate than a current account but which at the same time guarantees you fast access in an emergency – the additional money you earn may not be huge, but every penny counts!

It’s not simply a question of raising the rent if you want to maximise the income from your buy to let property. These – and many other – possibilities are worth exploring.

Two major reforms make the UK property news headlines as changes to the law on leaseholds come into force and the Bank of England relaxes the rules on stress testing the affordability of mortgages.

This is against the background of continuing vitality in the UK property market and tips on buying homes near schools rated as “Outstanding” and how to attract higher-rent tenants.

Leasehold changes take effect

On the 30^th of June, the long-awaited Leasehold Reform (Ground Rent) Act 2022 came into force. Announcing the changes, Propertymark reminded readers that from this date only a token, peppercorn ground rent can be legally charged by the freeholders of new leasehold residences in England and Wales.

The effect of the legislation is to reduce the ground rent on any new residential leases to zero financial value.

Mortgage affordability rules relaxed

Along with most of the media, the online listings website Zoopla on the 21^st of June reported the Bank of England’s decision to significantly ease the lending rules on residential mortgages with effect from the 1^st of August.

Currently, strict rules imposed by the Bank of England mean that mortgage borrowers have to pass a stress test under which they would continue to find their repayments affordable if the rate of borrowing increased by 3% of their lender’s standard variable rate.

That exacting standard has often caught out first-time buyers who are already at the limits of what they could find affordable – and a 3% increase would tip them over the edge. Relaxation of these rules, therefore, is likely to be especially welcome news to first-time buyers.

No sign of a slowdown for UK property market

If inflation and the steadily mounting cost of living are pressuring the spending of most individuals, those market forces have yet to have a serious impact on the UK property market.

In an article on the 23^rd of June, the Buy Association reported that the latest official figures showed little sign of any slowing down of the UK property market. Indeed, the property sales figures for May were a further 1.6% higher than in April.

Analysts point to the historically low rates of interest that mortgage borrowers continue to enjoy – with a current base rate of 1.25%, the cost of borrowing is significantly cheaper than the average 7% which prevailed throughout the period from 1970 to 2022.

This continues to fuel the growth in house prices – albeit at a somewhat slower rate month by month and lower than the runaway surge in prices seen in the previous six months.

The cheapest places to buy a home close to an Outstanding school

In research published on the 21^st of June, online listings website Zoopla revealed which parts of the country offered the most affordable housing if you want to live near a school rated as “Outstanding” by the education regulator Ofsted.

The research demonstrated how Ofsted’s ratings of nearby schools can affect the value of your home.

Watford, Wakefield, and Wolverhampton, for example, are places where you might find the cheapest homes close to a school rated as Outstanding; whereas you’d need to pay a premium to buy a home near any such school in Durham, Blackpool, or Sunderland.

How to attract higher rents

If you’ve ever wondered what it takes to attract higher rents to your buy to let accommodation, Property Wire offered some suggestions on the 21st of June.

Almost a half (42%) of discerning renters said that they were looking for accommodation that had been professionally decorated – and around a third of them insisted they would be prepared to pay more for such a rental. A similar proportion of prospective tenants also said they were looking for higher-quality furniture in any home they rented.

With the experience of recent Covid lockdowns still fresh in many minds, almost two in three would-be tenants are looking for space for working from home (WFH) – with, at the very least, a desk from which to do their work.

A property can become unoccupied or empty for several valid reasons:

• you are taking an extended holiday;
• as the landlord of let property, you may face a void between former tenants moving out and new ones being found;
• your job might have called you to work away from home – perhaps overseas – for several months at a time;
• the property might be in the throes of extensive renovation or other building works;
• if you are moving home, you might have moved into the new house whilst the old one remains empty pending its sale; or
• you may have an interest in a property that is subject to probate – which is currently unoccupied pending completion of that process.

Implications for your insurance

Whatever the reason for your house or let property standing empty, there is almost certain to be some impact on the home or landlord insurance which usually protects it.

If the property has been empty for more than 30-45 consecutive days, your current insurers typically reduce the scope of the cover on the property to just the basics of protection (the precise interval varies from one insurer to another), and some may even consider the cover to have lapsed altogether after this time.

Why is this?

There’s no doubt about it, vacant property attracts more than its fair share of risks and perils. In a special briefing for members of the Royal Institute of Chartered Surveyors (RICS), several principal areas of vulnerability were identified.

Those concerns can be summarised along the following lines:

• with no one on the premises, otherwise routine maintenance issues may go unnoticed and create a major crisis;
• there is a greater risk of a fire taking hold and potentially gutting the whole building;
• security is a bigger issue as the threat of theft puts at risk not only the contents of the property, but even valuable materials used in its construction;
• an empty property tends to become a magnet for vandals, arsonists, and all manner of other unwanted intruders; and
• the absence of any other occupant may attract the unwelcome attention of squatters.

As these and other risks assume greater and greater proportions the longer the premises remain unoccupied, so the property insurance cover normally in place becomes insufficient.

What does unoccupied property insurance cover?

To restore the cover needed to safeguard your property, therefore, specialist unoccupied property insurance is required.

This may take several forms.

Unoccupied property insurance sold by some providers, for example, may only restore still very limited cover – sometimes known as FLEA (protecting the building and its contents against the risks identified by their initials – fire, lightning, explosions and earthquakes, and aircraft).

Other options may include full protection against loss or damage to the structure and fabric of the building or its contents from such potentially severe risks as flooding, fire, storm damage, escape of water, impacts, vandalism and theft.

Also restored is the all-important property owner’s or landlord’s public liability insurance which grants you indemnity against claims from visitors to the property, neighbours or members of the public who may be injured through some contact with it or have their own property damaged.

You may even require short term empty property cover for shorter periods of time, such as if you have a probate policy or your property is undergoing renovations. Flexible options are available such as cover for 3, 6 or 9 months.

Which empty property insurance is the most suitable for me?

Getting the most suitable type of this standalone form of insurance to meet your needs and circumstances might call for specialist knowledge of the market in what is essentially something of a niche product. You might, therefore, want to consult experts in this field – such as those of us here at Cover4LetProperty.

Whatever the reasons – and there are many – for your having to leave the property empty, the vacancy frequently has a habit of overrunning your original estimate. Finding a policy that may be flexibly extended, therefore, may be an important feature.

If you are a landlord, one of the reasons for the property becoming vacant is the termination of one tenancy and the inevitable delay until new tenants are found.

There is also the rather special case of tenants who have simply abandoned the let property. Not only does this leave you an empty property on your hands but also the potentially fraught and complicated business of determining whether the tenant has surrendered or abandoned the property.

In an article updated on the 10^th of November 2021, online agents Letting a Property described the problems you run if tenants have simply upped and left your property – leaving the premises vulnerable and vacant, yet still with lawfully recognised tenants.

If you have bought an empty property with the specific intention of renovating it for you to live in or to let to tenants, you may find that some insurers are reluctant to offer cover on premises such as this from inception. Once again, therefore, you might want to consult a specialist insurance provider.

Playing your part

Just as with other forms of insurance, protection for unoccupied property also anticipates you playing your part to mitigate the risks of loss or damage.

The extent to which you may be expected to take reasonable precautions may depend of course on the nature of the building and whether it is normally in commercial or residential use. Amongst some of the most common conditions, however, are likely to be the following:

• ensuring that routine maintenance is done to keep the structure and fabric of the building in a good state of repair;
• locks, deadbolts, alarms and other security devices on doors and windows to a standard relevant to the type and size of building in question;
• regular inspections of the premises, with a written record of each visit;
• for residential property many of the precautions any insurer is likely to expect you to take are largely matters of good common sense;
• ensuring that deliveries are promptly taken inside and out of sight by a neighbour, for example;
• asking the same neighbour to park their car on your drive – to give the impression that there is someone at home;
• making sure that your garden continues to be tended and any litter cleared away;
• the use of time switches to turn on a light or two in the evenings; and
• making sure of course that all doors and windows remain firmly locked.

Precautions such as these – and any other conditions your insurer might impose – are important if you want to avoid the possibility of your own contributory negligence being cited by the insurer as the reason for a reduced settlement of any claim.

For further reading on this subject, you might want to review our Guide to Unoccupied Property.

Landlord insurance provides important safeguards for the owner of buy to let property. How does this protection work and what exactly are you buying with landlord insurance?

The building

• first and foremost, the most critical protection is provided for the very structure and fabric of the building or buildings in which you have invested – and that is probably the most important feature of landlord insurance;
• whether you are the landlord of buy to let residential property or the owner of commercial properties such as shops, warehousing, offices, or industrial units, all are vulnerable to such potential disasters as fire, flooding, impacts, storm damage or vandalism;
• landlord insurance buys you protection against such loss or damage, so you might want to make sure that you arrange it through a specialist provider – such as those of us at Cover4LetProperty – to get the protection most appropriate for your particular needs and circumstances;
• one of the crucial details it is always important to get right, for example, is the total sum insured – the amount designed to ensure that the settlement of any claim for the total loss of the building is enough to rebuild it;

The contents

• whether you have let the premises fully furnished, part furnished or with just a minimum of carpets, curtains and fittings, landlord insurance can buy you protection against those items of the contents of your let property that you own;
• you might want to extend the cover to accidental damage, and you may also want to investigate whether malicious damage by your tenants is included in the risks covered by your building and contents insurance (our policies here at Cover4LetProperty, for instance, include that cover as standard);

The liabilities

• with your insurance as a landlord, you are also able to gain valuable protection against the risk of a tenant – or indeed, one of their visitors, or even a member of the public – from suing you, as the landlord of the property, for negligence;
• many of your responsibilities as a landlord are defined by law and given legislative effect through health and safety legislation or local bylaws – the main aspects of these are identified on the government website;
• in addition to these statutory obligations, you also have a common law duty of care as the landlord and property owner;
• if you are held responsible for any personal injury or loss or damage to the property of your tenants, members of the public or visitors to your premises, you might face a potentially huge claim in compensation – landlord insurance typically buys you indemnity against such claims;
• the seriousness of the possible threat facing a landlord in this regard is illustrated by the fact that insurance typically offers protection of up to at least £2 million and it is not uncommon for that limit to be raised to £5 million or more;

The rent

• as a landlord, the success of your business relies upon the rent you receive – indeed, if you are depending on rental income to help make the regular buy to let mortgage repayments, rental income may be essential to your continued ownership of the property;
• yet if there is a major insured incident which leaves the premises so severely damaged that they cannot be occupied, you stand to lose the rental income – yet still have to make any mortgage repayments, of course;
• for that reason, landlord insurance typically includes compensation for loss of rental income in those circumstances.

It may be clear, therefore, that when you are arranging landlord insurance, you are buying some important safeguards for your let property and the business you are running.

If you have any questions or queries relating to your landlord insurance, please feel free to contact us. We will be more than happy to clarify.