Another report out this week provided further evidence that the rental property market is booming, a move into the landlord market is becoming increasingly popular with those that have the financial resources to meet the criteria for a buy-to-let mortgage, and the advice to Landlords is to seek out specialist cheap landlord insurance to provide protection for this vital and and often a significant investment.
An industry spokesperson confirmed that the market is very attractive for investors right now and despite the fact that deposits remain high, buy-to-let mortgage deals are more widely available and are much more competitive than they were 12 months ago. The spokesperson went on to confirm that rates aren’t putting people off because the yields are good.
As further evidence of the upturn, Hometrack recently reported that rents in London were up 9.6 per cent in 2011 and although growth has slowed since the third quarter of 2011, London remains stronger than the rest of the UK.
I read an article recently on how to be a success in residential investment, the author’s focus being on patience, research and timing, whilst I fully endorse the need for research and timing I think that patience is less important at this stage – the market is on an upward curve with demand outstripping supply, combine that with buy to let mortgage deals improving my advice is to get out there and look for a deal. One word of caution, residential investment is a ‘long-term’ game, there will be peaks and troughs, particularly in the short-term, will have less impact on your overall returns the longer the investment is held.
If you are considering becoming a Landlord then there are some key steps to follow when considering insurance:
Step 1 – Do not buy standard home insurance
You are now effectively a small business and need cover reflecting the professional as well as domestic risks associated with your new property.
Step 2 – Choose your cover.
There are principally two cover options, which can be purchased together – Buildings and/or Landlord Contents.
Step 3 – Tenant advice
Insist that your tenant takes out adequate tenants contents cover; it is morally the right thing for a Landlord to be advising as well as it being good business practice as it can prevent disputes over damage to contents and result in deposit deductions. Taking out tenants insurance enables offers vital protect, enables repairs to be done and it keeps you and your tenant happy.
Finally, visit The Property Insurer for cheap landlord insurance for a great deal from a proven specialist Broker, click on ‘Get a Quote’ and then fill in the form on your computer.
Doug Phelan
The Property Insurer
