In the dynamic landscape of UK property rental, the Renters’ Reform Bill is set to introduce significant changes. With a focus on improving renters’ security and overhauling the lettings sector, landlords and letting agents must adapt to these reforms. No Letting Go is poised to assist in this transition, ensuring that properties are compliant and the rights of both tenants and landlords are upheld.

Understanding Renters’ Reform
The Renters’ Reform Bill proposes substantial adjustments to tenancy agreements, security of tenure, and the quality of rental accommodation. Key aspects include the abolition of ‘no-fault’ evictions under Section 21, an introduction of a lifetime deposit system, and a new property portal for landlords, helping to enforce higher standards.

The Role of No Letting Go

Ensuring Compliance with Updated Regulations
No Letting Go’s services are vital in helping landlords navigate these legislative changes. With professional inventory management and regular property inspections, we ensure that landlords meet their obligations under the new laws.

Professional Inventory Reports
Comprehensive inventory reports are more crucial than ever. These documents provide an evidence-based approach to managing tenancies, which will be vital in the case of disputes, especially with the anticipated removal of ‘no-fault’ evictions.

Regular and Thorough Property Inspections
With the government’s emphasis on the quality of rented homes, regular property inspections are key. No Letting Go’s meticulous inspections can identify maintenance issues early, ensuring properties meet the required standards and helping landlords avoid penalties.

Lifetime Deposit Scheme Readiness
The lifetime deposit system aims to make moving between properties more manageable for tenants. No Letting Go can facilitate the management of these deposits, ensuring proper documentation and transfer between tenancies, reducing administrative burdens for landlords.

Educating Landlords and Agents
Education will be a cornerstone of adapting to the Renters’ Reform Bill. No Letting Go provides guidance and advice, keeping clients informed of their new responsibilities and helping to implement best practices in property management.

Dispute Resolution
Our detailed inventory reports and evidence of property conditions serve as critical tools in resolving end-of-tenancy disputes, which may increase due to the abolition of Section 21. Our services provide landlords with the documentation needed to fairly settle any disagreements.

Embracing Technology
No Letting Go’s technology-driven services, like the DigiSign Automated Check-In, will streamline compliance with the new digital property portal, ensuring landlords can easily provide the necessary information and maintain records.

 

The Renters’ Reform Bill represents a paradigm shift in the UK’s rental sector. No Letting Go stands ready to support landlords and letting agents through this change, with a suite of services designed to maintain property standards, simplify compliance, and support the well-being of tenants. As the rental landscape evolves, partnering with No Letting Go means staying ahead in providing safe, compliant, and well-managed rental properties.

Thinking of investing in Build to Rent but not sure how to go about it or if it’s right for you? Our guide on why to invest in Build to Rent explores the risks and rewards of getting involved in the sector.

Build to Rent developments are growing across the UK thanks to higher demand for quality, purpose-built rental accommodation among young professionals and the over 50s. This burgeoning sector has great potential for property investors and commercial landlords, as long as you do it right.

 

What is Build to Rent?

Build to Rent, or (BTR) describes the process by which residential properties are purpose built for the private rental sector. In most cases, this is done by large property development companies, investors and commercial landlords.

Build to Rent developments commonly contain 50 homes or more, all managed by one landlord. They often feature desirable perks such as in-house gyms, entertainment facilities and sophisticated security systems.

 

The Build to Rent Trend

The Build to Rent sector in the UK is on the rise. According to property experts, Knight Frank, £50 billion will be invested into the sector by 2020 to accommodate for the growing demand in the private rented sector.

We’re now well aware that the rental sector is growing. Rising house prices and new working trends have resulted in a wider pool of tenants looking for suitable, long-term rental properties.

The demise of home ownership has resulted in a slightly older, professional tenant group looking for quality rented accommodation, complete with all of the modern conveniences.

 

How Does Build to Rent Work?

Typically, a Build to Rent development is owned by a large institution, such as a bank or pensions company and managed by a lettings agency.

Funding comes from investors keen to take advantage of reliable rental returns and long term growth. Some Build to Rent Schemes are also being supported by the Government to help with the building process and supporting infrastructure.

The main players in the Build to Rent process are;

  • Build to Rent investors
  • Build to Rent developers
  • Build to Rent letting agents
  • Commercial landlords

To invest in Build to Rent property, there are a few routes to go down, one of the easiest being through one of the large private rental developers.

 

The Benefits of Build to Rent Properties

According to Savills, Build to Rent investment came to £2.6 billion in 2018, suggesting that it can be a lucrative option for commercial landlords. There are many exciting opportunities for landlords investing in Build to Rent. Here are some of the benefits;

  • Longer tenancies are common (3 years +)
  • High tenant demand
  • Higher rent rates (around 11% higher than standard rental accommodation)
  • Reliable rental income and likely growth
  • Landlords retain control over their investment
  • Long term investment rewards

There are also many benefits for tenants which will make advertising and filling vacant rental properties much easier;

  • Greater choice of housing
  • Quality, purpose-built buildings with special amenities such as gyms and entertainment facilities
  • Access to convenient services such as security, laundry and concierge
  • Modern, sustainable buildings
  • Bills usually included
  • Furnished
  • On-site management
  • Encourages regeneration in surrounding areas

 

The Risks of Build to Rent

With all investment comes potential risk. Before going ahead, it’s important to understand what these risks are and how to manage them.

 

Construction Risks

Construction is a risky business, and all sorts can go wrong or take longer than planned, leading to greater financial costs.

 

Planning Permission Issues

As a relatively new phenomenon, planning permission for Build to Rent can take longer, resulting in growing costs and a reduction of rental income.

 

Void Periods

As the landlord, you may experience delays in receiving the full rental income as the development fills up. To avoid long void periods, you could implement a tenant sign-up scheme while the building is still in progress. Alternatively, you could plan the development in stages to ensure some rental income is coming in throughout the process.

 

Drawbacks for Tenants

It’s also important to consider the disadvantages for tenants when it comes to Build to Rent, as this will help you determine your target tenant and mitigate any risks.

Some drawbacks for tenants include;

  • Many Build to Rent developments target elderly tenants or young professionals and may not appeal to families or lower income renters
  • This type of accommodation can be more expensive for tenants

 

Homes UK Event

From incorporating affordable housing into your Build to Rent project, to attracting institutional investment, Homes UK: The Future of Living will be answering the pressing questions in the sector today.

Taking place at Excel in London 27-28 November 2019, the event is a great place to meet important players in the industry.

 

Protect Your Investment

Keen to take advantage of this fast growing sector? Here at No Letting Go, we supply a specially designed range of Build to Rent services to ensure compliant reporting, no matter the size of the development.

We offer;

  • Inventory management
  • Property visits
  • 360 virtual property photography for use in marketing, reporting and Build to Rent projects
  • Check in and right to rent
  • Legionella risk assessment and water testing
  • Central account management for national, corporate or large regional clients
  • Fully insured, qualified and professional clerks, surveyors and inspectors
  • 24 hour turnaround for reports

With our national and local services you get consistency, accuracy and efficiency delivered by our 65 offices across the UK.

Find our full list of Build to Rent services here.

Thinking of investing in London rental property? There are plenty of benefits for landlords, including high demand from a wide range of tenant groups and convenient access to quality tradespeople and property services.

Buy-to-let in London can offer great rewards, as long as you’re clever about where you invest. We explore why investing in London property is worth the risks and how to protect your investment for the long term.

 

The Advantages of Being a London Landlord

Thinking of becoming a London landlord? Here are some of the benefits you can expect;

 

Is Property in London a Good Investment?

There has been a lot of debate recently around whether investing in the UK property market is still a safe investment. Despite some instability in the London property market due to Brexit uncertainties and recent changes to stamp duty and tax relief for landlords, there are still many factors that make London a good opportunity for property investment.

 

High Rental Demand

For one, it is unlikely that the demand for rental properties in popular areas of London will decrease significantly in the long term as London remains a hub for many industries.

With a large number of students and young professionals, London offers a wide range of tenant groups to target.

Shorter term, Brexit uncertainties have been putting off first time buyers from taking the plunge- increasing the demand for rental properties further.

 

Opportunity for Capital Gain

While some property prices in central London have experienced dips, central London prices are now on the rise and there are plenty of up and coming areas marked for big property development projects. By investing in areas likely to experience long-term price growth, you are well placed to earn impressive capital growth when you decide to sell.

 

Where is the Cheapest Place to Buy in London?

House prices vary significantly from each London borough. According to Homes&Property, some of the cheapest areas to buy in London in 2019 include;

  • Barking and Dagenham – average house price £300,518
  • Bexley – average house price £341,784
  • Newham – average house price £365,182
  • Croydon – average house price £365,931
  • Havering – average house price £375,014
  • Sutton – average house price £382,607
  • Hounslow – average house price £395,734
  • Enfield – average house price £396,908
  • Hillingdon – average house price £399,639
  • Greenwich – average house price £411,492

However, the purchase price isn’t the only factor to consider when searching for an investment property.

If you’re looking for buy-to-let, the location’s desirability to your target tenant is just as important as getting a good deal. If you can’t find tenants to fill your property, you risk losing money. That’s why it’s equally important to consider factors such as transport links and the proximity of schools and shops to assess the risks and return.

In addition, looking at rental yield data is essential in order to calculate your return on investment.

 

Best Buy to Let Areas in London

When looking for the right location to buy to let, London has a few hotspots that still offer impressive rental yields.

Totally Money’s Buy to Let rental yield map provides valuable data when searching for the most profitable postcodes. Here are some of the top buy to let areas in London according to the map;

  • E12 in East London including Manor Park, Little Ilford, Alderbrook, Newham and Redbridge have a 6.04% average yield.
  • SE17 in South East London including Walworth and Newington has a 5.75% average yield.
  • IG11 in Barking has a 5.59% average yield.
  • Romford is home to several top performing postcodes including RM9, RM8,RM6 and RM10. Find property inventory services in Romford here.
  • SE11 in South East London including Kennington and Vauxhall has a 5.12% average yield.
  • SE28 including Southwark, Lewisham and Greenwich has a 5.00% average yield.
  • N18 in North London including Upper Edmonton, Edmonton and Enfield has a 4.92% average yield.

 

How Do I Buy My First Investment Property?

Once you’ve decided that becoming a London landlord is right for you, there are several steps you need to take;

 

Choose a Location

Decide on the right location, taking into account your budget, target tenant and the rental yields in the area.

 

Find a Buy-to-Let Mortgage

To start the buying process, you will most likely need to apply for a buy-to-let mortgage. Our guide on buy-to-let-mortgages provides helpful information on the different types of mortgage available and how to choose the right one, as well as tips and advice on the process.

 

Protecting Your Investment

Decided to become a London landlord? Our No Letting Go offices throughout London are home to dedicated and experienced inventory clerks ready to help you on your journey.

From inventory reports to check in services, we can provide professional support to help manage your portfolio.

We offer;

To explore our full list of offices, search our branch pages to find property inventory services near you.

With Brexit looming, it’s unclear what the state of the UK economy will look like in a few months’ time, let alone the private rented market.

While it’s right to be wary, Brexit doesn’t necessarily spell disaster for landlords. In fact, there may even be some positive developments. Here, we look at how Brexit will affect the rental market, what it might mean for landlords and how to protect your investment in this unsettling period.

 

Will Brexit Affect Right to Rent?

Since February, 2016 it has been a legal requirement for landlords to ensure that their tenants have the right to rent in the UK. If landlords are found to be letting to an illegal immigrant, they could face fines of around £600 per tenant.

However, Brexit brought new uncertainties as guidance on the new regulations after leaving the EU were unclear, particularly in regard to the status of EU national renters.

For now, the Home Office have confirmed that during this transitional period, EU nationals will still have the right to remain in the UK and will be able to use their current passports or ID as proof of legal status. According to the Home Office, the European Union settlement scheme will provide legal EU citizens with digital documents to make these checks easier for landlords.

However, longer term this could cause issues, especially if longer term tenancy agreements are signed, as the legal status of some tenants may change post-Brexit.

The most recent update from the government confirms that the right to rent check regulations will stay the same until January 2021, regardless of whether a deal is made. Similarly, the requirements for Irish citizens will not change.

 

How to Stay Protected

One of the easiest ways to stay on top of essential document checks is to enlist the help of a professional reporting service.

No Letting Go clerks can verify right to rent documentation at check in, to determine whether they match the tenant’s appearance as part of our right to rent service. This is particularly helpful for landlords who aren’t able to meet with tenants personally.

 

Unstable House Prices: Good News for Buy-To-Let Landlords?

Brexit uncertainty has caused the UK housing market to slow down, with average UK house prices falling by £5000 at the beginning of this year.

This could be seen as a positive for buy-to-let landlords who can take advantage of this lull in the UK property market. For landlords looking to expand their portfolio, it could be your chance to buy for less.

However, a lack of stability is understandably putting some people off;

  • Recent changes to stamp duty have meant that landlords have to pay an extra 3% on each band on new buy to let properties, significantly increasing outgoings.
  • While the reduction of tax relief for buy-to-let mortgages means landlords will be paying more in tax by 2020 and may even find themselves in a higher tax bracket.

Combined, these changes are making landlords think twice about investing in buy-to-let as it may be harder to enjoy the same rental yields as before.

 

How to Improve Your Rental Yield

If you do decide to take the plunge, you may find a real buy-to-let bargain!

To minimise the risks, it’s worth doing your research to find the best place in the UK for rental yields.

 

Brexit and Mortgages

Depending on what happens to Bank of England interest rates, mortgages could be affected by Brexit. It has been suggested that the base rate may rise after Brexit, which could make buy-to-let mortgages more expensive. One way around this could be to re-mortgage your property now, before the economy shifts.

Nonetheless, if this is the case, mortgages will be equally difficult to obtain for prospective house buyers, adding to the increase in those looking to rent.

 

The Impact of Brexit on the Rental Market

The instability of the UK housing market could put off potential home buyers from taking any risks in the near future. With less people buying, this could be good news for letting agents and residential landlords, as more people will be looking to extend their lease.

Shortages in social housing could also result in a rise in rental demand, placing landlords and property professionals in the private rental sector in a good position.

Bearing this in mind, it looks like the rental market should stay secure for the foreseeable future.

One thing to think about is that the location of your rental property could have an impact on the number of prospective tenants looking for housing. For example, some No Letting Go regional branches in which a higher level of EU nationals reside experienced lulls after the referendum due to uncertainty surrounding legal status.

 

How to Stay Protected

Providing quality rental properties that people want to live in will help minimise the risk of any void periods as we prepare for this transition. Staying on top of essential property maintenance and providing an appealing home for tenants will help to ensure you don’t lose out.

 

Property Renovation and Build to Rent

If you’re thinking of renovating your rental property or building property to rent, Brexit could make things a little difficult.

As much of the construction materials and labour resources used are imported from around the EU, tariffs and ease of supply could be affected. So, if you’re thinking or extending or renovating, you may need to save up more than you originally planned for to be on the safe side.

Thankfully, the government has confirmed that those with EEA qualifications, such as EU architects will still be able to work in the UK, even in the event of a no deal Brexit. Therefore, there shouldn’t be any disruption to ongoing work.

 

Brexit for Landlords: Stay Protected

To sum up, Brexit may not be the blow some private landlords thought it might. Although it’s hard to predict what might happen in the coming months, unstable house prices and rising mortgage rates could even drive the demand for rental properties.

To make sure you don’t miss out when the time comes, it pays to have a solid plan in place. And that’s where we come in.

Our professional property inventory services provide you with the essential reports you need to stay on top of the latest legislation. Covering everything from right to rent to property appraisals, our teams of experts are here to help protect your investment and give you peace of mind.

Browse our full list of property services to find out more about our individually tailored services.

With recent changes in regulations and unstable house prices, is property still a good investment?

If you’re looking for a long-term investment, buy-to-let property can still provide rewarding returns.

We explore the benefits and drawbacks of buy-to-let investments to help you decide whether expanding your portfolio or becoming a first-time landlord is still worth the risk.

 

Buy-To-Let Investment: The Risks

We would be lying if we said investing in property was completely risk-free. It’s important to understand the risks involved before making any big investments.

Here’s a look at some of the potential risks currently facing the buy-to-let sector;

 

Unstable Property Prices

With Brexit on the horizon, no one can be entirely certain what the after-effects will do to the UK property market. If house prices fall, you may lose out on money if you decide to sell.

However, this works both ways. If the property market experiences an uplift post-Brexit, as it often does after slow periods, your investment worth could grow by a significant amount.

 

Stamp Duty Changes

The changes to stamp duty made in 2016 mean that landlords now have to pay up to 3% more on buy-to-let properties. This can greatly increase your initial outgoings so needs to be factored into the decision-making process.

However, this doesn’t apply to first-time, buy-to-let buyers who can pay the standard home mover rates instead.

 

Reduction to Tax Relief

A new tax system is being phased in, and by 2020, buy-to-let landlords will no longer be able to deduct any mortgage interest payment from their rental income before paying tax.

These changes mean most landlords will be paying higher tax on their rental properties and may even find they move up a tax bracket.

 

Void Periods

Unfortunately, void periods can happen, and are sometimes out of your control. Extended void periods can negatively affect your annual returns and are best avoided.

To prevent void periods, there are some simple steps you can take;

  • Invest in quality marketing
  • Keep up with maintenance
  • Think about your target tenant
  • Ensure compliance with current health and safety obligations

 

Investing in Residential Property: The Rewards

When you get it right, buying residential property to rent can still be a profitable investment. Here, we explore some of the benefits;

 

HMO Properties: Higher Rental Yields

Investing in an HMO property is a good way to see larger returns on your investment.

An HMO property is shared by multiple people or ‘households’, and according to Property Investment UK, can provide rental yields up to three times higher than single lets.

With the demand for shared housing continuing to grow in cities and student towns, investing in property with the idea of renting it as an HMO remains a solid investment.

 

Location: Maximising Returns

When looking for a stable investment property, location remains key.

While larger cities in the North such as Manchester and Liverpool are currently experiencing an uplift in local housing markets, some areas of London are slowing down.

Finding the right rental market in an up-and-coming area will improve your chances of enjoying a higher rental yield.

For example, properties in larger University towns make a great investment for student landlords as there is a steady supply of students looking for housing.

To get a better idea of where to invest now, the following areas have been tipped as providing a solid investment;

  • Northampton
  • Leicester
  • Manchester
  • Leeds
  • Newcastle
  • Nottingham

Look for areas with a younger population who haven’t yet stepped a foot onto the property ladder and areas with good transport links into popular areas.

 

Long Term Rewards

As long as you’re willing to exercise patience, investing in buy-to-let property still brings with it worthwhile, long-term rewards.

The security of a steady income flow and the possibility of inflation provides a solid return on investment and a safety net for retirement.

 

The Brexit Effect: Should I Be Worried?

Due to Brexit uncertainty, many people have delayed selling or buying a home. But that shouldn’t necessarily put you off investing in buy-to-let property.

The UK population is growing, and people still need homes to live in. In fact, as first-time buyers are thinking twice, the demand for renting may even rise in the short term.

Although it’s hard to predict, unstable house prices and rising mortgage rates could result in a higher number of people looking to rent, allowing private landlords to enjoy a stable rental market.

Either way, the residential property market continually experiences ups and downs, meaning that quiet periods don’t usually stay quiet for long.

 

 

Look After Your Investment with No Letting Go

If you’re thinking of investing in buy-to-let, it’s vital to have all of your documents and property checks in order.

Here at No Letting Go, we help landlords, letting agents and property professionals alike manage their portfolio by providing reliable inventory reports and other essential services.

From check-in services to property appraisals, discover our wide range of professional property inventory services to see how we could help protect your investment.

Budgets can be tough to manage for landlord and letting agents alike. Sometimes, property maintenance costs can eat into your finances dramatically.

From what’s involved to how to save, we offer insights and guidance on how to best manage budgets when undergoing maintenance on your property portfolio.

What Is Included In Maintenance Costs?

Before we go into budget management, we need to be clear on what maintenance costs are involved in renting a residential property.

Here’s a list of all the things to consider when it comes to maintenance;

Repair Costs

As a landlord, it’s your responsibility to fix any repairs needed resulting from normal wear and tear. This can include;

  • Repairing or replacing white goods and appliances
  • Fixing boiler issues
  • Repairing any electrical faults

Refurbishment & Decoration

Keeping your property looking fresh for new tenants is an important part of being a good landlord and attracting the right target tenants. It’s recommended that carpets are replaced every 5-7 years, and properties are fully redecorated every 3 years.

However, if your property is looking particularly lived in after a tenancy or you come across some questionable stains, you might need to redecorate more often.

Here’s what else is included in refurbishment and decoration;

  • Painting throughout
  • Replacing carpets or flooring
  • Replacing curtains
  • Replacing old, tired furniture items every 10-15 years
  • Replacing kitchen and bathroom fittings every 10-15 years

Exterior Maintenance

It’s not just the inside that needs attention. Staying on top of the exterior of your property can help ward off future structural issues and save money in the long run.

Here’s what it could include;

  • Replacing missing roof tiles
  • Clearing guttering
  • Garden fence maintenance
  • Window cleaning and repair

Interior Cleaning

Thorough cleaning is essential between tenancies, and you may also need to arrange for cleaning to be done during a tenancy. If the windows need cleaning for example, or if the property has suffered water damage.

Property Inspections

Particularly important during void periods, regular property inspections are an important part of maintenance for buy to let properties.

Inspections protect your property from theft, vandalism or damage from unnoticed leaks, preventing the need for extensive future repairs. We offer a professional vacant property inspection service to give you peace of mind that your investment is protected.

Gas Safety Certificates & Safety Checks

UK landlords have a legal requirement to arrange regular safety checks, including;

  • An annual gas safety inspection from a Gas Safe registered engineer
  • Electrical safety checks
  • PAT tests for white goods
  • Energy Performance Certificate
  • Ensure smoke detectors are present and working

Your Time

This cost is usually overlooked by most landlords, but the time you put into the maintenance of your portfolio really adds up. Particularly if you are balancing your duties as a landlord with another paid job, extra time spent on maintenance may mean losing out on wages.

If this is the case, it may be worth investing in a full management service from a property management company so you can swap a management fee for more time for other ventures.

How Much Does It Cost To Maintain A Rental Property?

Maintenance costs will vary depending on several factors;

  • Size of the property
  • Age of the property- older homes require more upkeep
  • Location of the property- service charges vary dependant on area
  • Type and number of tenants

For example, if you rent to students or large families, you may have to fork out more for accidental damage repair costs.

Landlord Maintenance Costs: How to Save Money

Now we’ve discussed what’s involved, it’s time to look at ways to save.

Choose Your Target Tenant Wisely

While finding tenants may not be the first thing you think of when it comes to maintenance, the tenant you choose could have an effect on your maintenance costs.

For example, as mentioned above, renting to students can result in more accidental damage as there tends to be more people living in one property, and tenants have a reputation for partying! Similarly, renting to tenants with pets is likely to involve more refurbishment at the end of the tenancy.

Deciding on your target tenant from the get-go is an important part of the process.

Act Fast When It Comes to Repairs

The quicker you act on repairs and maintenance tasks, the more popular you’ll be with tenants and the less likely they are to develop into serious issues. Usually, dealing with problems as soon as they arise means you can save money in the long run as you have time to think about the best possible solution.

Paying for maintenance costs early will also help you to manage your monthly budgets and keep on top of your spend.

Buy Quality Furnishings

Opting for the cheapest furnishings available isn’t always wise. The cost of replacing flimsy furniture every year is likely to add up to more than investing in quality in the first place. This is particularly true for mattresses, sofas and dining tables. Our blog on furnishing your rental property will help you with some handy tips.

Keep It Simple

When it comes to decorating your properties, more is less. You don’t need to go overboard to provide a comfortable home for tenants. Simple, modern furniture without too many frills will appeal to most and will be kinder on the budget.

Tip: Avoid painting everything white as it will require more upkeep. Neutral, mid-tones are much more forgiving.

Don’t Skimp on Landlord Insurance

Landlord insurance is essential when renting a property. Finding the right deal can help you save when things go wrong. Quality contents or accidental damage insurance will protect you in the case of weather damage or accidental spills.

Make sure you shop around for the best deals.

Check Council Tax Exceptions

If one of your rental properties is vacant for a period, or you are performing refurbishment that renders your property inhabitable, you may be eligible for Council Tax redemption. This will leave you with some extra cash to spend on essential repairs and decoration.

Landlord’s Energy Saving Allowance

By increasing the energy-saving potential of your property, you could save money that can be injected back into the maintenance budget.

By reinforcing insulation in your rental property, you could save a significant amount in tax.

Know When To Ask For Help

While rolling up your sleeves and getting stuck in can save on service fees, it’s not always the best option.

Botched DIY can end up costing more than the original problem, and when it comes to electrical or plumbing issues, professional is always best.

Get More Than One Quote

When you need to pick up the phone to a plumber or tradesperson, make sure you do your research.

Particularly important when it comes to bigger jobs, getting several quotes will help you find the most competitive price.

Invest In A Comprehensive Inventory Service

Compiling a comprehensive written and photographic list of all of the items and furnishings and their condition within your property is one of the best ways to recuperate maintenance costs at the end of a tenancy.

If there is any damage beyond normal wear and tear, it will be much easier to deduct the appropriate costs from the deposit.

A professional property inventory service provides an impartial account of your property and is delivered using high quality photography in a handy, easily accessible digital report.

Landlord Maintenance Responsibilities: Help From No Letting Go

The costs of being a landlord are wide ranging. From agent fees to mortgage interest, balancing your rental income with outgoing costs can be tough.

That’s why sometimes it pays to get some help. Whether it’s repairs and maintenance reports or inventory services, our teams of experienced clerks could help streamline your business so you can take control of your budget.

Browse our full list of property management services to find out how we can help.

It’s a common question among new or soon-to-be landlords – do I need landlord insurance?

The short answer is yes. In addition to healthy investment returns, being a landlord comes with a lot of added risks and responsibility. To minimise this risk, investing in reliable insurance is essential.

Protecting your investment is paramount, but the jargon around landlord insurance can make it tricky to keep your facts straight.

We’ve curated a simple, yet comprehensive guide for landlords to help you get your head around landlord insurance and work out which type is best for you.

Here’s what it is, how it works and how to get it.

 

What is Landlord Insurance Cover?

Landlord insurance is a type of home insurance, specifically designed for rental properties. This broad term can include anything from contents insurance to rental protection.

Your policy could cover;

  • Damage to the property
  • Loss of rent
  • Damage to or loss of contents
  • Legal claims made against you by tenants

 

Is Landlord Insurance a Legal Requirement?

While landlord insurance isn’t a legal requirement, standard home insurance will not cover you for rental properties and going without could cost you dearly in terms of money, time and hassle.

 

Do You Really Need Landlord Insurance?

Often, you will need permission from your mortgage provider in order to let your property to tenants who will most likely require specialist insurance.

Legal issues aside, it’s always a good idea to protect your property as comprehensively as possible to protect both yourself and your investment.

 

What’s the Difference Between Home Insurance and Landlord Insurance?

Home insurance is designed to protect private homes from damage and loss. A rental property comes with a whole host of different issues. For example, as a landlord, you are less able to keep an eye on the day to day happenings in the property and have to rely on tenants to update you on any problems that occur.

Here’s a few of the differences between home and landlord insurance;

  • Home insurance only covers the owner/occupier if they are in need of alternative accommodation. Landlord insurance covers tenants in this situation.
  • Landlord insurance can cover you for loss of rent.
  • Landlord insurance can cover any legal costs needed as a result of your actions as a landlord.

 

Types of Landlord Insurance

Here, we provide a brief overview of the different types of landlord insurance available;

 

Landlord Buildings Insurance

Buildings insurance covers any damage caused to the building itself. This could mean damage from fire, flooding or even malicious damage caused by the occupants. Every insurance provider is different, so you’ll have to check which type of damage this covers.

We highly recommend getting buildings insurance, especially if you are the freeholder.

 

Landlord Contents Insurance

Contents insurance protects against loss or damage of goods and furniture within a property. So, if you are renting a furnished property, it could be a good idea. However, this type of insurance does not protect against normal wear and tear.

Different insurance plans offer various cover and allow you to insure different parts of your property. For example, communal areas in flats or shared accommodation. It won’t protect items belonging to tenants.

 

Accidental Damage Insurance

Accidental damage insurance comes under contents insurance and can cover the cost of anything from spills and stains to broken windows.

 

Landlord Rent Guarantee Insurance

Otherwise known as rental protection insurance or loss of rent insurance, this type of cover protects you if you are unable to rent out your property as a result of an insured event like a fire or flood.

 

Tenant Default Insurance

Tenant default insurance covers you if your tenant fails to pay rent for two months, covering the cost for up to eight months. You will need to conduct the proper credit checks at the start of the tenancy to be eligible.

 

Commercial Landlord Insurance

If you let to a third-party business, you will need commercial landlord insurance. Commercial buildings have different designs and purposes, meaning there are different risks attached.

Commercial landlord insurance can cover accidental damage, vandalism and rental income protection.

 

Landlord Liability Insurance

Also referred to as property owner’s liability cover, this type of insurance covers legal defence costs and expenses in the event your tenant has an accident and considers it your fault.

With this type of insurance, you’re looking at high limits, usually upwards of £1 million.

 

Legal Expenses Insurance

This covers legal expenses such as court costs when chasing up late tenant payments and gives you access to legal expertise.

 

Employers’ Liability Insurance

If you employ anyone else to work at one of your rental properties, say as a gardener or cleaner, you are required by law to have this insurance. Employers’ liability covers legal defence costs and awards made for any injuries, accidents or illness as a result of your negligence.

 

HMO Landlord Insurance

If you rent out an HMO property, the terms of your insurance cover will differ slightly from single occupancy homes.

Finding an insurance plan tailored to HMO properties could help you get the protection you need.

 

Alternative Accommodation Insurance

If your property becomes uninhabitable due to an insured event and the tenancy agreement requires you to provide alternative accommodation for your tenants, this type of insurance is a good idea.

 

Unoccupied Property Insurance

Unoccupied property cover can help during void periods or if you need to make renovations to your property. To qualify as unoccupied, a property usually has to be vacant for 30 days.

You will also need to arrange for regular vacant property inspections.

 

Multi-House Landlord Insurance

If you have several properties in your portfolio, it is probably worth taking out multi-property landlord insurance.

By including all of your properties on one policy, you could save money and time on paperwork and other processes.

 

Landlord Home Emergency Insurance

Boiler breakdown or serious leaks are a surprisingly common occurrence. Landlord home emergency insurance provides you with 24/7 access to emergency cover for plumbing, heating, power and security issues.

 

What Kind of Insurance do I Need for a Rental Property?

The type of insurance you’ll need depends on the type of property you rent and your specific needs as a landlord. We answer some common questions;

 

Do I Need Landlord Insurance If I Have Buildings Insurance?

In most cases, you will need to take out a specific insurance when renting out a property in addition to your home buildings insurance.

Some policies may allow you to amend your existing home buildings insurance to cover your activities as a landlord, however you may also want to take out extra insurance to cover all bases.

 

Do I Need Landlord Insurance if Renting to Family?

Yes. It is just as important to have insurance when renting to family members. You will need to draw up a tenancy agreement for legal purposes, even if it’s just a casual arrangement.

Renting to offspring or siblings may feel informal, but if they are paying you rent, you are legally regarded as their landlord and standard home insurance won’t cover you.

 

Do I Need Landlord Insurance If I Live in the Property?

Even if you live in the property, standard home insurance won’t protect you. Make sure you tell your lender that you live in the rental property when you take out the insurance. Again, you will need a tenancy agreement in place.

 

Do I Need Landlord Insurance for a Flat?

Renting out a flat is the same as renting a house when it comes to insurance.

The only difference with renting a flat is that you may not need buildings insurance if there is a freeholder arranging this. Be sure to inform them that you are renting out your flat so they can make any adjustments to their insurance policy.

 

Do I Need Landlord Insurance if Renting a Room?

Again, standard home insurance is unlikely to be valid when renting out a room in the same property you live in.

If you have a lodger, you will need a tenancy agreement in place for your landlord insurance policy.

 

What Does Landlord Insurance Cover?

Landlord insurance can cover a variety of different risks and situations, depending on your needs. The basics are buildings and contents cover, but you can add extra policies as you see fit.

We answer some common questions about landlord insurance cover;

 

Does Landlord Insurance Cover Accidental Damage?

Yes. If you want your insurance policy to cover accidental damage such as dodgy DIY or carpet stains, opt for accidental damage insurance to protect your property.

 

Does Landlord Insurance Cover Appliances?

Yes. Contents insurance covers white goods and appliances provided by you in the rental property.

 

Does Landlord Insurance Cover Tenant Injury?

Yes. To protect yourself against legal claims made by tenants, landlord liability insurance will provide legal defence costs and expenses.

 

Does Landlord Insurance Cover Unpaid Rent?

Yes. Tenant default insurance covers you if your tenant fails to pay rent for two consecutive months.

 

How Does Landlord Insurance Work?

Your first step in purchasing landlord insurance is to decide what type of cover you need. It’s possible to find a tailored policy suited to your individual needs and requirements. Whether you opt for basic cover (building, contents and liability) or go for comprehensive cover, make sure you read the fine print to find out exactly what’s included.

 

What is Sum Insured?

The sum insured is the amount an insurer will pay out for a claim. The higher the value of your rental property, the larger this amount will be. Make sure the sum insured is enough to rebuild your property, rather than focusing on its market value.

Calculating your rebuild cost accurately will ensure you don’t overpay for your insurance. There are online rebuilding cost calculators to help, although keep in mind, this will only provide you with an estimate rather than exact values.

 

Levels of Excess

You will also need to think about the amount of excess you are able to pay if you need to make a claim. Higher excess reduces the cost of your insurance and different claims can come with different levels of excess.

 

Be Prepared

Before you buy you will need to know;

  • Your rental property’s rebuild value
  • The level of excess you can pay
  • What type of cover you need

 

How to Claim Landlord Insurance

If you ever need to make a claim, make sure you do so as soon as possible. You will need to provide as much evidence as you can to get the best pay-out. This could include receipts, invoices and photographic evidence.

 

How Much Does Landlord Insurance Cost?

The cost of your landlord insurance will be dependent on a variety of different factors;

  • Location – Local crime rates and the probability of severe weather in a certain area will affect the cost of your insurance.
  • Type of tenants – Students, tenants with pets and those on housing benefits are deemed more of a risk by some insurers, meaning higher insurance costs.
  • Size of property – More tenants means higher costs.
  • Number of properties – Naturally, more properties mean more costs. Look for an insurer who offers portfolio property discounts.
  • Sums insured – Your insurance will cost more the larger your sums insured

 

Which is the Best Landlord Insurance?

To compare landlord insurance and get a landlord insurance quote, there are plenty of price comparison sites to reference.

Here are some popular landlord insurance providers;

  • AXA Landlord Insurance
  • Aviva Landlord Insurance
  • CIA Landlord Insurance
  • SAGA Landlord Insurance
  • Direct Line Landlord Insurance
  • Hamilton Fraser Total Landlord Insurance

Makes sure you shop around and do your research to get the best deal for you.

 

Protect Your Investment with No Letting Go

We understand the importance of protecting your rental property for the long-term success of your business.

A detailed property inventory is one of the best ways to secure your property by providing the critical evidence you need to recuperate costs. Find out more about our professional, unbiased property inventory service to get started.

If you’re weighing up the pros and cons of providing a furnished or partly furnished property for prospective tenants, you’ve come to the right place.

Letting a furnished property has plenty of benefits, including quality tenants and longer tenancies. However, furnishing your property can get expensive and cause issues down the line if not done properly.

Here, we discuss how to furnish a rental property with tips and tricks on making the most of your portfolio.

 

What’s the Difference Between Fully Furnished and Partly Furnished?

Let’s clear this up before we get started.

 

Furnished

Usually, a furnished property will come with essential electrical appliances, white goods and basic furniture. In short, everything a tenant needs to move in straight away.

 

Partly Furnished

A partly furnished property will only include white goods, lighting and essentials such as curtains and kitchen cabinets. It may also include some other furniture items at the discretion of the landlord or letting agent.

 

Unfurnished

An unfurnished property will come with only the very basics- light fittings, carpets and essential appliances such as an oven.

 

Should you Furnish Your Rental Property?

Furnished or unfurnished? It’s a tricky question. While renting unfurnished properties may seem like the easy option, providing a furnished property comes with attractive benefits;

 

You Can Charge Higher Rent

A well-furnished property may affect the amount of rent you can charge.

With a lack of quality, furnished properties on the rental market, tenants searching for a ready-made home are prepared to pay a little more for the convenience.

Good quality furnishings that make your property look welcoming will attract tenants and help your property stand out.

 

Attract the Right Tenants

A well-furnished property will attract a wider pool of renters, allowing you to pick and choose to find the right tenant for you– whatever that might look like.

 

Secure Longer Tenancies

A home that feels well cared for and inviting will encourage tenants to stay longer term.

 

Who is Your Target Tenant?

The tenant group you’re targeting should be the biggest consideration when deciding whether to furnish your property. Well established families or older professionals are likely to have their own furniture they want to bring with them.

Whereas students or young professionals may be looking for convenience and a place they can move in straight away.

 

What Does a Landlord Have to Provide in a Furnished Flat?

When providing tenants with a furnished home, there are certain items they will expect to be included;

 

What to Include

A furnished property should include;

  • White goods (oven, washing machine, fridge freezer etc.)
  • Dining table and chairs
  • Beds
  • Sofas and chairs
  • Wardrobes, chest of drawers and cupboards
  • Light fittings
  • Curtains
  • Carpets

 

What Not to Include

However, there are a few items landlords are not expected to provide;

  • Bed linen, duvets and pillows
  • Cleaning supplies

 

Furnishing a Buy to Let Property: Top Tips

To make things easier for yourself at the end of the tenancy agreement, we have some tips and advice on how to furnish your rental property;

 

Choose Easy to Clean Furniture

Wear and tear is inevitable, but to keep your property in good condition, easy to clean appliances will encourage your tenants to keep things well maintained.

 

Avoid Decorations

When it comes to personal taste, we’re all different. Let your tenants choose the little details so they can feel at home. Similarly- neutral colours work best.

 

Choose Easy to Replace Items

This way, if things get broken, they can be replaced with a ‘like for like’ item without too much bother.

 

Replace Furnishings as Needed

Old, stained carpets will do nothing for your properties appeal. The Tenancy Deposit Scheme recommends replacing most items of furniture after 7 years.

 

Provide Basic Tools

Providing basic tools will encourage tenants to take care of minor issues themselves, taking one more thing off your plate.

 

Follow Safety Regulations

As a responsible landlord, you need to follow fire safety laws when it comes to soft furnishings.

 

Choosing the Right Furnishings

Let’s take a closer look at some of the types of furniture to include in your rental property, room by room.

Image of blue sofa in front of white brick wall

Living Room Furniture

Basics to include:

  • Sofa(s) or armchairs
  • Coffee table
  • Bookcase
  • Carpet
  • Lights

 

Best Sofas for Rental Properties

Here’s a few of our top picks of the best sofas to buy for your rental property:

The Budget 2-Seater

This modern 2-seater sofa in a neutral grey will work well in slick apartments for young professionals and is pretty easy on the budget too!

The Classic Sofa Bed

A sofa bed is a big plus among tenants, and this one is great value for money. This simple, classic style will work well in most interiors and families will love the extra storage space.

The Quality 3-Seater

If you’re trying to attract professionals willing to pay high prices for the right home, a quality sofa is essential. This one comes from an esteemed brand and the elegant style will have mass appeal.

 

Kitchen/Dining Room Furniture

Basics to include:

  • Kitchen cabinets
  • Essential appliances (oven, washing machine, fridge freezer, toaster, kettle etc.)
  • Table and chairs

 

Best Dining Tables for Rental Properties

A dining table is the hub of any home and getting the right one is important.

The Space Saving Solution

This handy piece of furniture features built in storage and a fold-out table design. Perfect when letting properties with small kitchens.

The Extendable Table

The simple, modern design of this table will fit neatly into any interior, and the extendable section can accommodate extra guests. It’s also budget-friendly!

 

Bedroom Furniture

Basics to include:

  • Bed
  • Mattress
  • Wardrobe
  • Chest of drawers
  • Bedside table
  • Carpet
  • Lighting

 

Best Mattress for Rental Properties

A mattress is perhaps the most important piece of furniture for your rental property. A considerate investment, you need it to be durable and long lasting. Here’s our top picks;

The Affordable Memory Foam Mattress

This mattress from the Memory Foam Warehouse makes quality memory foam affordable. Starting at under £100, you’re unlikely to find anything cheaper.

The Bed-in-a-Box Mattress

Buying a mattress for your rental property is only half the battle. The next job is delivery. Opting for a bed in a box mattress means the mattress can be delivered straight to the property in a convenient sized box.

The Mattress Topper

Once you’ve invested in a mattress, it makes sense to protect it. A mattress topper can prolong the life of a mattress and guard against stains to keep it looking fresh at the end of the tenancy. This memory foam mattress topper is a cheap but comfortable option.

 

Protecting Your Furnished Rental Property: Inventory Management

Once you’ve gone to the effort of furnishing your rental property, you need to ensure it’s protected.

The easiest way to do this is by investing in a comprehensive inventory report delivered by unbiased professionals. A property inventory helps guard your property and its contents against damage by providing full details of its condition at the start and end of a tenancy.

At No Letting Go, we provide landlords and property professionals with comprehensive services and reports to protect their investment and streamline processes. Browse our full list of inventory management services to find out how we can help.

The Equalities and Human Rights Commission have recently revealed that 93% out of 8.5 million rental homes in the UK are not fit for disabled access, leaving at least 365,000 disabled people in unsuitable accommodation.

There is a pressing need for more accessible rental properties across the UK and the government is cracking down on landlords who do not make the necessary changes. However, this does mean that there is a large number of disabled tenants looking for appropriate housing.

From entry ramps to chair lifts, there are many ways to adapt a property for disabled access. Adapting a home and renting to disabled tenants could even open your property up to a wider range of potential renters.

Here, we look at ways to adapt your rental property so you can welcome a new target tenant group to your portfolio.

 

UK Rights for Disabled Tenants

Before you start thinking about adapting your property, it’s important to be aware of disabled people’s rights in the UK.

The Equality Act 2010 set out ways to protect people in society, including the rental sector.

According to the Act, a person has a disability if;

  • The person has a physical or mental impairment, and
  • This impairment has a substantial, long-term effect on their ability to carry out day-to-day activities.

Now, let’s look at your responsibilities as a property professional.

 

Laws for Private Landlords and Letting Agents

It is against the law for a landlord to discriminate against a disabled tenant. For example, as a landlord, letting or estate agent it is illegal to;

  • Refuse to rent to a disabled person because of their disability
  • Refuse to allow a guide dog or assistance dog under the no pets rule
  • Charge higher rent or deposit to disabled tenants
  • Refuse access to additional facilities that are available to other tenants (e.g. laundry room or parking space)
  • Evict a tenant due to disability or illness
  • Give tenants a less secure tenancy agreement

If a tenant feels they are being discriminated against, they could talk to Citizens advice or the EHRC and you could experience serious repercussions.

 

Landlord Responsibilities when Renting to Disabled Tenants

When renting to a disabled tenant, you are responsible for providing necessary, reasonable adaptations to make your property accessible and suitable to their individual needs. This can include additional services or equipment known as ‘auxiliary aids’.

Auxiliary aids can include;

  • Wheelchair ramps
  • Written documents and signs in Braille
  • Accessible door handles
  • Accessible taps
  • Special furnishings (e.g. raised toilet seat)

Refusing these changes could mean you’re breaking the law.

 

How to Adapt Your Property for Disabled Tenants

When renting to a disabled tenant, it’s likely you will need to make some changes to your property in order to make it accessible. These changes very much depend on the individual needs and requirements of the tenant.

Here are some of the ways you may be required to alter your rental property;

 

Installing Access Ramps

If your tenant uses a wheelchair or mobility scooter and your property has steps up to the entrance or between rooms, you may need to install access ramps at entrances.

 

Installing Chair Lifts and Railings

For multi-story homes, chair lifts and railings may be required for less able tenants. Railings may also be needed in bathrooms.

 

Fitting Accessible Kitchen and Bathroom Facilities

Wheelchair users may need lower kitchen and bathroom facilities which are accessible at chair height. Bathrooms may require a wet room and accessible toilets.

 

Widening Doors

Doors and entrance ways may need to be widened to allow for safe wheelchair access. (Usually 750mm)

 

Raised Plugs and Features

Features such as plugs and light fixtures will need to be accessible to your tenant(s).

 

Ground Floor Level Access

Some disabled tenants will require ground floor level access. You will need to provide a bathroom, bedroom and kitchen at ground level.

 

Unrestricted Parking

Your tenant may need access to a parking space which is easily accessible from the property.

 

Written Signs and Documents in Braille

Visually impaired tenants may require all tenancy documents and signs throughout the home to be provided in Braille. This includes features such as fire safety notices. Tenants with learning disabilities may ask for documents provided in alternative formats.

 

Covering the Costs of Adapting a Property

You may be thinking about the cost of these changes and how you’re going to cover them.

It’s true that some of these adaptations involve significant work, costing around £20,000 to adapt a standard property.

However, there are ways to help cover the costs;

 

Disabled Facilities Grants (DFG)

Landlords and tenant alike can apply for a disabled facilities grant which provides funds for adaptations. This grant is supplied by the local council and is subject to an eligibility test where an occupational therapist will assess the property and the adaptations needed before making a decision.

The amount you receive depends on the changes needed, but sums of up to £25,000 can be granted.

To apply, contact your local council.

Remember, if you fail to make the necessary changes, it could cost you a whole lot more in legal costs if the case goes to court!

 

A Helping Hand from No Letting Go

While this information may appear daunting at first, No Letting Go are on hand to help;

  • For example, our 360 Virtual Tour and Photography service allows potential tenants to view your property from any location- solving accessibility issues for many disabled tenants.
  • Providing a safe, comfortable and accessible home is particularly important when renting to disabled tenants. All of our property services are designed to streamline your workload and ensure your property is fully compliant with current health, safety and legal regulations.
  • Once you’ve made these adaptations to your rental property, it’s important to protect your investment. Our professional inventory service helps to safeguard your property by providing evidence of the condition of your property at the start and end of the tenancy.

Discover the rest of our property management services to find out how we could help.

High tenant demand means buy to lets can offer a lucrative investment for prospective and professional landlords. However, changing terms to tax relief on buy to let mortgages and rising interest rates require landlords to think carefully about the risks and rewards of entering into one.

If you’re considering a buy to let (BTL) mortgage, it’s important you understand the differences between a BTL mortgage and a residential mortgage and the different types available to you.

Having all the information available is one way to make a secure decision. That’s why we’ve created this guide on buy to let mortgages so you can make the right choice for you.

What is a Buy to Let Mortgage?

Put simply, a buy to let mortgage is a loan specifically designed for landlords looking to buy property to rent.

Buy to let mortgages are viewed as higher risk by lenders, meaning there can be higher fees, deposits and interest rates than residential mortgages.

But don’t let that put you off completely!

Can Anyone Get a Buy to Let Mortgage?

If you’re looking to buy property in order to rent it to other parties, it’s likely you’ll need to make a BTL mortgage application.

There are certain criteria you need to meet in order to be considered.

You are eligible for a BTL mortgage if:

  • You are looking to invest in residential property (this includes houses and flats)
  • You have the financial stability to repay the mortgage
  • You own your own home (either with a previous mortgage or outright)
  • You have a good credit rating
  • You earn over £25,000 per annum
  • You are below a certain age. (Most lenders have stipulations regarding the age you are when your mortgage ends which is usually between 70-75 maximum)

How do Buy to Let Mortgages Work?

BTL mortgages aren’t too different from regular mortgages, which, as a homeowner, you’ll be very familiar with.

There are, however, some variations it’s important to be aware of:

  • Fees and interest rates are a lot higher than residential mortgages
  • The deposit is around 25% of the property’s value as a minimum
  • BTL mortgages tend to be interest only, rather than requiring monthly repayments. This means that the loan is to be paid in full at the end of the mortgage term.
  • Most buy to let mortgages are not regulated by the Financial Conduct Authority (FCA). However, if you are letting the property to a family member, this will be considered as a consumer buy to let mortgage and will be subject to the same regulations as a regular residential mortgage.

Types of Buy to Let Mortgages

Buy to let mortgage deals can differ depending on which lender you go with.

Interest rates will all depend on the amount of money you borrow and how much rental income you receive.

It will also be affected by the type of buy to let mortgage you choose:

Tracker BTL Mortgage

If you opt for a tracker mortgage, your monthly repayments are subject to change each month depending on interest rates. This is great news if rates decrease, but not so good if they increase dramatically.

Discounted Variable Mortgage

A discounted variable mortgage is a mortgage deal with an interest rate set around 2% below the SVR (standard variable rate). These deals usually last around two years. The rate is still subject to change dependant on the SVR, but the discount will stay in place for the agreed time.

Multiple Year Fixed Rate Mortgage

A fixed-rate mortgage will keep your repayments low and stable for two to five years. Different mortgage providers offer different deals, so it’s worth shopping around. Just make sure to check what the rate will increase to at the end of the fixed period.

How to Get a Buy to Let Mortgage

Now you know the basics, it’s time to find out how to apply for a BTL mortgage and where to look.

Most large banks loan BTL mortgages, and a mortgage broker can help you decide which mortgage deal makes the most sense for your needs and purposes.

Another place to look when searching for the best mortgage rates is a reputable price comparison website.

Here are some reliable sites to use:

It’s worth checking a few comparison sites to get the bigger picture before making a decision. And don’t forget to read the small print for hidden fees and extra charges!

How Much Can I Borrow?

Your borrowing limit is connected to your rental income. This is called a loan-to-value, or LTV amount, which is worked out as a percentage of the property value. An LTV for BTL mortgages is usually around 90%- 95% rather than 100% for residential mortgages.

This means that your loan is likely to be lower, due to the perceived high risk factor.

Because of this, it’s recommended that you charge around 25%- 30% more for rent than your mortgage payment.

Local property agents or websites can help you get an idea of the amount of rent you can charge in your desired area.

Despite lower borrowing amounts and a larger deposit, the average buy to let purchase price is actually lower than for a residential property.

Tax on Buy to Let Mortgages

Keep in mind that there will be other outgoings to consider when deciding if you can afford a BTL mortgage.

Income tax, capital gains tax, landlord fees, landlord insurance, and letting agent fees all need to be considered.

With changing terms to tax relief on buy to let mortgages it’s important to keep track.

The new regulations mean that landlords can no longer claim all their mortgage interest against income tax on rent. The amount of interest deductible is being reduced by 25% a year until 2020, when it will become a 20% tax credit on the mortgage interest paid.

This change has the potential to raise some landlords up a tax bracket.

Plan for all Circumstances

As you know, applying for a mortgage is a not a decision to be taken lightly as the responsibilities are a long-term commitment.

To protect your financial security, it’s a good idea to have a plan in place for different eventualities.

For example, it’s not uncommon for a rental property to experience void periods in which no rent is coming in. Or, at some point or another, a pipe might burst, or a roof might need urgent repair. As a responsible landlord, you need to be able to provide effective and timely repairs.

To protect yourself from this burden, making a savings plan is vital. Ensure you are saving as much as possible when you have full paying tenants to avoid any stressful situations in the future. This should happen before making an offer on a house.

Tip: Don’t rely on selling the property to pay the mortgage off! If house prices fall, and you don’t have a backup plan, you’re in serious trouble.

Protect Your Buy to Let Investment

While applying for a mortgage is always a risk, once you have all the information at your fingertips, you can make a better informed decision.

One way to help guarantee the safety of your property investment is to ensure you are fulfilling all your duties and requirements as a landlord.

No Letting Go offer a wide range of property management services including professional unbiased inventories, safety assessments and maintenance reports to help you protect your investment.

Browse our full list of services to find out how we can help.