There is more choice for Buy to Let mortgages now than there has been for the twelve previous years. Figures from moneyfacts.co.uk show that Buy to Let mortgage products have reached their highest level in twelve years. The total number of products has increased to over 397 within the last twelve months and products in this area amount to more than 2000.
This is despite the ongoing uncertainty of the property market. Providers are not yet shying away from offering landlords a greater choice of products.
Many property owners have found over the past couple of years with Brexit looming that it has been very difficult to sell their properties. They have therefore turned to try to let their property out. However, they have in some cases failed to change their mortgage over. They have also fallen into the trap of thinking that their standard home insurance will cover the property even though it’s rented out.
When you rent a property out having the correct insurance is absolutely critical for any landlord. A standard home insurance policy will not cover damage created by tenants. Letting out the property could even invalidate the home insurance altogether.
There are so many additional items included in a landlord insurance policy in comparison to home insurance. It can be quite scary for landlords so it is always best to look into having correct insurance.
If you accidentally become a landlord you need to look at the market to ensure that you are letting your property correctly.
Our tips for renting out property are below:-
1. Thoroughly research the rental market in your area to ensure that you are charging the right level of rent.
2. Marketing the property is always very important as you do not wish to leave it empty for a period of time known. This is known as a void period.
3. We recommend you use a letting agent or somebody who has professional qualifications to rent out your property. Did you know that the rental market has had over 127 different types of law within the last 5 years?
4. Always communicate with your tenant if there are any problems with the property.
5. You should always carry out proper checks at the property roughly every three months.
6. Make sure you follow all the legal requirements applicable to the property.
7. Make sure you have the right insurance!
8. Make sure you draw up an inventory at the beginning of every tenancy so you know exactly what the state of the property is before you let it out.
If you have become an accidental landlord and you haven’t changed your mortgage you may wish to consider this. With the withdrawal of the relief on tax you may find that shopping around gives you a better mortgage rate than what you are currently paying. When changing the mortgage it is always best to contact your financial advisor or bank to look for the best rate possible.
You can also look to join a Landlord Association. We deal with The BLA who may be able to help you and give special discounts on various services that may be of help to you.