As a tenant in a rental property it is your responsible to insure your own possessions and you are well advised to do so, many letting agents and landlords will make a point of requesting sight of a suitable contents insurance policy before taking up the tenancy. If you are renting through an agent you can ask them for details of any tenant’s contents insurance products they can offer or would recommend to you.

As an agency, we know many companies that offer specific tenant insurance policies that can protect various different things along with your own contents…they could even cover rental payments should something happen to you. We would also suggest to find a policy that offers you the protection you require, this may not always be the cheapest but when you need it you want to know you’re covered. Many policies now also offer accidental damage protection against the property fixtures and fittings, this is a great alternative to using your deposit to pay for accidents at the end of the tenancy.

It is illegal for a letting agent to advise on or sell such insurance products unless they are authorised by the Financial Services Authority (FSA), or, directly regulated by a broker registered with the FSA.

As a tenant in a rental property you don’t need buildings insurance, only contents insurance. As the tenant you do not own the building and therefore don’t and cannot insure it, this should be in place from the landlord.

Please remember to follow us on Twitter @GordonBarkerRL and like us on Facebook, search ‘GordonBarkerRL’, and received regular tips, news and views for tenants and for landlords.

If you wish to discuss any matters arising in the rental of a property either as a tenant or as a landlord then please get in touch now…01202292400 or info@gordonbarker.com

All landlords should be increasingly mindful of tenants’ ability to meet rising rental demands in the current economic climate, heightening risk of arrears and void periods. So far, more than a fifth of current tenants pays 50% or more of their take-home pay on rent. Raising rents, and especially raising them too far could put the property out of reach of most tenants and could render the property empty for some time.

At Gordon Barker we believe that squeezing tenants too far on rental prices can lead to many problems and would urge that great thought is put into deciding how to approach your renewal. Take more factors into account than just the rent they will pay, every situation needs to be looked at individually in order for a landlord to get the best return on their investment. This should include factors such as the longevity of the tenancy, the avoidance of void periods and the quality of tenant based on their previous references.

A good tenant, although paying slightly less rent, can return a much high ROI due to less maintenance, more regular rent payment and a longer tenancy period meaning little/no void periods and much less money lost. a bad tenant, who could be paying a higher rate, will cost more in the long run with maintenance problems, non payment of rent and also a high turnover of tenants is always much more expensive for a landlord.

If you feel you haven’;t the right tenant in your property, or would like the right one found for your empty property then please call Aaron on 01202 292400 today or email aaron@gordonbarker.com.

Do your research before you go…
Does the outside of the property appear to be in good condition?
Does the property seem secure? Is there an entry-phone system and burglar alarm?
Is there a garden? Who is responsible for the maintenance of the garden?
What is the area like? Are your preferred amenities and transport links within easy reach?

What about once you’re in the property and looking around….
Is it in good condition? Are there signs of damp, flaking paint or infestations?
Are you allowed to change the decoration in the property?
Do repairs need to be carried out?
Is there central heating? Do all the radiators function properly?
Is there enough storage space for your belongings?
Do kitchen appliances such as washing machines/dishwashers work, if being left?
Are there enough kitchen cupboards and work surfaces?
Check the bathroom(s) and make sure taps are not leaking. Does the shower work properly?
Are the sealants around the bath and shower intact?
Are there enough electrical and telephone points and are they in the right places for your needs?

If you can put a tick or the answer you need next to 80% of the above then you could well be standing in your next home! Don’t wait too long to make your decision, we know it is a busy rental market at the moment and it might not be there tomorrow…

This mortgage product has a £1495 arrangement fee which can be added to the balance of the loan, and benefits from a free valuation for both purchases and remortgages. This is available up to 60% loan to value meaning that home owners will need 40% equity in their property or a 40% deposit for a purchase.
Early repayment charges apply to this mortgage during the fixed rate period. The early repayment charge is 3% until 02 January 2015.

WHO CAN BENEFIT FROM THIS MORTGAGE RATE?
Besides anyone who is currently looking to purchase or is currently looking for a remortgage, this mortgage could also be of benefit to anyone sat on their lenders standard variable rate, even some of the most competitive standard variable rates on the market are at a higher rate than 1.99%. Also it is possible to reserve this rate if you are approaching the end of your current deal rate with your lender. This mortgage can be applied for up to 4 months in advance which means that anyone with a deal rate ending between now and the end of March 2013 could benefit.

Contributed from Harvey Bowes,

Tel: 029 2115 6918

Web: http://harveybowes.wordpress.com/

Gordon Barker Residential Lettings – Bournemouth – Selection of let properties

What are your thoughts? Why would a lottery winner who won a ‘significant’ amount of money not wish to now have his own home in a lovely area instead of a flat in a block of flats in a council tenant lead area??

It also turn out that ‘another couple in subsidised accommodation in the same area had a second house and yacht abroad’.

It makes you wonder doesn’t it….

The same applies to a landlord with properties that are empty over the winter period. Please ensure you have the heating on, at the very least, a couple of times a day to ensure there is hot water flowing through on a regular basis. Otherwise the first you might know about a frozen pipe is when your agent turns up for a viewing and swims down the hallway…

It could be down to what is seen as a more modern way of living. 2 bedroom flats offering large open plan living spaces provide space for entertaining, social occasions and also allow areas to be sectioned off by sofas, tables etc whereas a 2-up 2-down house offers more floor space, but with the rooms separated off the kitchen, lounge and dining room are all closed rooms allowing for little socialising between rooms without moving between them. However a 2-up 2-down property does offer you the opportunity to expand up, out and back to allow growth within a family and you can turn into into a family home for a long time.

Is a family home the ‘in’ thing currently? Probably not! As we are in the ‘rented’ generation I  believe families are being started later in life as couples are settling down later after enjoying their younger years for longer, it is taking longer and longer for people to move out of home and especially harder to buy properties for first timers. All the above factors point towards flats being in a much greater demand. And this has been seen by many developers over recent years and we have seen a huge amount of blocks of flats being built in our area with modern fixtures and fittings, large open plan living areas and many with split level living to still allow for that house feel within the block.

• 44% of couples living in flatshares say their living situation is affecting future plans to start families
• 14% of couples in flatshares say they will never be able to afford to buy property
• 35% of couples say the biggest challenge is finding flatshares that will accept couples
• 13% of couples say they won’t even be able to afford to rent on their own

SpareRoom.co.uk surveyed couples currently renting rooms in shared accommodation to learn more about their attitudes to their living arrangements. Just like individuals trapped in the private rental sector and unable to buy, eight out of ten UK couples living in flat and houseshares say they cannot afford to get onto the property ladder or rent on their own, as deposit funds are eroded by the high cost of living and banks are still cautious about lending at high Loan To Values.

44% of couples who have no choice but to live in flat or houseshares say the predicament is affecting their aspirations to settle down and start a family. Another 36% said that, although they had no immediate plans to start a family, they believe their living situation could affect their future plans.

14% of couples who would like to buy cannot see their way out of the rental sector, saying they will never be able to afford to get onto the property ladder. While 45% of couples polled are aspiring to quit their house shares and rent on their own within the next two years, another 13% say they cannot even afford to move out of flatshares in the foreseeable future.

Due to the soaring costs of living only 21% of couples currently living in flatshares are actually saving up to buy a property and 12% say they are saving up to buy a property in the next five years.

We see this on a regular basis here at Gordon Barker, from 2 bedroom flats that used to be just for a couple we are seeing a movement towards them using their 2nd bedroom to move a friend in and help cover the cost of the bills. Hopefully a new shift in the price of energy bills will help everyone in the rented and non rented world moving forward.

Are you in a flat share? Or have you lived in a flat share with a partner? How did it affect you?

If you are letting the property as a furnished residence you could be entitled to a ‘wear and tear’ allowance. There is no legal definition in tax legislation of what constitutes a furnished property, but HMRC guidance says ‘sufficient furniture must be provided for normal occupation’. In practice this means beds, chairs, tables, sofas, cupboards, cooker, fridge etc.

If this requirement is met you are entitled to a ‘wear and tear’ allowance of 10% of the gross rent (less any council tax or water rates paid) each year. HOWEVER, If you use this method you are unable to claim the cost of buying these items.

An alternative is to claim the cost of replacing these items as and when necessary. No relief is claimed for the initial purchase of items of furniture but a claim can be made for replacement when they are damaged or worn out. You must, unfortunately, stick to the method chosen, you cannot claim 10% ‘wear and tear’ allowance one year and then claim the cost of replacement the next. In practice it is usually preferable to claim the 10% if the item is likely to last more than 10 years.

If the property has no furniture, or only a few items are provided, the property will be treated as unfurnished. In these circumstances no allowance can be claimed for furniture expenditure.

For more information contact us on 01202 292400 or contact Ian Sheeky at Hugh Davis & Co Chartered Accountants who kindly supplied the information. But beware this is only a guide and please always speak to the right person before just lumping in and claiming allowances for stuff…