According to the HMRC, there have been more than 100,000 new landlords every year throughout a four-year period, with more than 1.9 receiving an income from property that reached a total of 16.2 billion in the 2015/16 period.
It, therefore, proves that becoming a landlord can be a viable financial investment.
Yet if you want to safeguard your finances and avoid legal repercussions, you will need to find landlord insurance quotes for residential and commercial property, or you may come to realise your mistake down the line.
Quotezone.co.uk, a leading insurance comparison website, has created a detailed landlord checklist to help budding landlords avoid big mistakes when entering the market. The infographic (as above) encourages first-time landlords to understand their responsibilities, as they will have various legal obligations to their tenants, such as keeping the property safe and free from health and safety hazards. For instance, every landlord should make sure the boiler has been serviced before releasing the property to a new tenant. What’s more, a landlord will also need to provide the right amount of notice before inspecting a property. It’s also essential for landlords to understand the market inside and out, so they can attract the right tenant with the right income.
Yet landlords who want to avoid financial consequences of theft, water damage, fire or a natural disaster will need to invest in landlord insurance. It’s vital you are certain you have the right level and type of insurance, which also covers both the correct number and type of properties leased. It will also need to cover the right number of rooms and tenants, too.
An insurance comparison website can help you discover the best policy for your needs with ease, which could be buildings only or contents only. However, if you want to avoid a financial loss, you would be wise to invest in buildings and contents insurance for the right sum.
Many landlords might also be shocked to discover there are certain mistakes you can make that can invalidate an insurance policy. For example, if you allow subletting without notifying your insurance provider, you will invalidate your policy and will receive no monetary payment following damage or theft to your building and/or contents.
Ensure you never invalidate a policy by performing routine property inspections, if you have the time to do so. If you don’t have enough time to manage your leased properties, consider hiring a property manager, as the infographic suggests, as they can perform regular inspections to ensure the property and tenants are in line with your chosen insurance policy.
Becoming a landlord doesn’t need to be complicated. You simply need to do your homework to ensure you dot the i’s and cross the t’s. If you are considering becoming a first-time landlord, read the above infographic for expert advice on how to avoid insurance of health and safety pitfalls. You should also compare landlord insurance quotations to find the right cover for your property.