I read last week that the buy-to-let mortgage market is booming, expert opinion pointing to it being a great time to be a landlord, and I would add that there is never a better time to purchase cheap landlord insurance.
According to recent figures issued by the Council of Mortgage Lenders 32,300 loans worth £3.7 billion were advanced in the first quarter of 2012, this is an increase of 32 per cent on the corresponding period last year.
The buy-to-let sector has also increased its share of the mortgage market, now representing 12.8 per cent of outstanding lending at the end of March 2012, up from 12.2 per cent in the first three months of 2011.
So, with massive demand fuelling rent increases it is a great time to be entering the market and joining the 3 million plus landlords in the UK. A word of caution however, there are many pitfalls in becoming a landlord – you are now running a small business so tread carefully, take good advice and ensure you have the right protection for you, your prime asset and your tenant, I would recommend the following;-
- Research the property – don’t always think that because you love it that tenants will love it, research areas of strong demand, particularly areas with a strong economy and those with good access to local amenities and transport routes.
- Selecting tenants – be very careful, always undertake thorough reference checks, be wary of tenants offering up-front rents for extended periods in order to bypass reference checks. The landlord/tenant relationship can deteriorate, get to know your tenant as best you can and advise them on the need for tenants contents insurance as this can prevent disputes in the longer term.
- Don’t cut corners – you now have a buy-to-let mortgage so avoid buying standard home insurance at all costs, whilst the premium may be cheaper it is ultimately false economy.
As a landlord and with a buy-to-let mortgage you need specialist cover from a firm who understand the needs of landlords and tenants.
If you need Cheap Landlord Insurance go to The Property Insurer and click on the Landlord Insurance button. Insurance is provided by one of the UK’s leading specialists, they have a quick and simple process and if you like the price you can buy online so it couldn’t be simpler!
Doug Phelan
The Property Insurer
