You may want to become a landlord intentionally, you might not even think you’re a landlord, but if you own a property and someone else pays you to live there, then you’re a landlord – even if your tenant is a friend or a relative! So, if you’re letting your property, what do you need to think about?
Using an agent can take a lot of hassle out of the process, but will of course reduce the income that you receive from the property. If you do decide to use an agent, choose carefully! Your property is probably your most valuable asset and so you need a reliable agent to manage it properly for you.
Don’t be tempted to skimp on landlords’ buildings and contents insurance. Standard home insurance doesn’t cover many of the risks of letting that are covered by full landlord insurance, so claims may be invalid. You will also need to let the insurer know the type of tenant that is in your property as risk (and premiums) will vary. Even if you are letting your property unfurnished, it is worth having a minimal amount of landlord contents insurance to cover items such as carpets and fixtures.
For more information on the best landlord insurance to fully protect your property and its contents, call us on 01702 533 400 or arrange a call back.
There is now an extra hurdle to think about, following new lending regulations introduced on 30th September 2017. If you have four or more properties you’ll need to present your entire portfolio to your bank or building society, to be assessed for viability, in order to get a mortgage approved. Before now, this only applied to the property in question.
More landlords are setting up limited companies to mitigate tax changes. This is however a complex area and will not be appropriate for every landlord so professional advice should always be sought.
Get in touch with our team of Mortgage and Protection Brokers to discuss the most cost-effective buy to let mortgage and landlord insurance products to meet your needs. Call us on 01702 533 400 or arrange a call back.
This article was produced in partnership with Assurant.
Assurant Intermediary Ltd offers Mortgage Advisers in the UK a quoting platform (Quoforma+) to source home insurance products from across the market.
Part of Assurant (NYSE:AIZ), a global provider of risk management solutions, helping protect where people live and the goods they buy.
With approximately $32 billion in assets as of December 31, 2017 and $6 billion in 2017 revenue, Assurant operates in 16 countries, while its Assurant Foundation works to support and improve communities.
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