Considerations For a UK Landlord

Energy efficiency

The National Landlords Association has highlighted the benefits of maintaining an efficient home, stating that it can make it more attractive to prospective tenants. Improving a house or flat can also add value to the property, as well as lowering the risk of damp or mould setting in. Tenants who receive lower fuel bills are more likely to stay in a property for longer, reducing the amount of void periods that landlords experience. In winter a property which feels warm, insulated and comfortable with a modern boiler and no signs of damp should be particularly appealing to tenants. Finally, under law, UK landlords are required to provide energy performance certificates to potential tenants.

Rent Protection Insurance

Landlords take a gamble if they do not take out rent protection insurance. Even if an owner has a good tenant, there is no guarantee that the occupant will keep their job in the current economic climate and be able to make rent payments. It helps to obtain a landlord's employer reference and a credit check at the beginning of the tenancy, but taking out insurance can offer extra protection, since there is no guarantee that that tenant will have his job in three or six months' time and will be able to afford to pay the rent.

The Credit Crunch will make it tough in 2009

Next year will be difficult for some people with buy to let mortgages. The CML expects the number of households in arrears for three months to increase by 500,000 next year. Unemployment levels will also have an impact on the property market. But for those who manage to stay in employment, variable-rate mortgages will become progressively cheaper.

Consider Deposit Protection Schemes

Deposit protection schemes can improve relations between landlords and tenants. Such schemes should have a positive effect on the tenants relationship with you. Landlords must provide proof of any damage to a property in order to withhold deposits. Some landlords abused the old deposits system, but most landlords are reasonable and do not charge for small amounts of damage. People with buy to let mortgages have been advised to take out rental guarantee insurance as a safeguard against the current economic situation. It is also recommended that investors should always carry out credit checks on potential tenants whether there is an economic downturn or not.

Recent figures from the National Landlords Association show that 71 percent of landlords expect rent arrears to rise next year.

Consider your buy-to-let mortgage deal if you need one

Those with buy to let mortgages should begin preparations to find a new deal on their loans as early as possible. Landlords should begin the remortgaging process as soon as they can to avoid paying higher amounts of money later on. Investors who do not have a 25 percent deposit in a property to seek a professional valuation before looking to remortgage.

In November 08, the Council of Mortgage Lenders reported that there were 11.69 million mortgages outstanding in the UK in the third quarter.

It'll take time

Those with buy to let mortgages must put time and investment into their property portfolios over the coming years if they are to make a profit. Landlords must be clever to survive through the economic downturn: you will not make money over the next ten years if you do not put in the investment and time to work out what the best buy to let strategy is. You could save money by cutting out agents and managing properties yourself.