Becoming a Landlord tomorrow (help :) )

Becoming a Landlord tomorrow (help :) )

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boxst

Original Poster:

3,699 posts

144 months

Monday 29th June 2015
quotequote all
I complete on a flat tomorrow that will purely be used to rent. It is part of a purpose built block of flat, not that far from my house so don't need buildings insurance. For ease, I will go with a letting agent to start with but I have a question about contents insurance.

It is a pretty small flat so Endsleigh quote £37 for the year. Other much higher quotes seem to have public liability? Do I need this?

Is there anything else I need to look out for?

Thanks for any advice.

Steve

anonymous-user

53 months

Monday 29th June 2015
quotequote all
Immediate questions:

Who insures the buildings?

What contents of yours will be in the flat? Do you care if they are lost or damaged?

I would take out liability insurance as even if you are not liable your insurance company will defend you against the claim - thus saving a lot of potential heartache

Funk

26,254 posts

208 months

Monday 29th June 2015
quotequote all
I'd imagine the fabric of the building is insured as a whole (same as mine). The contents insurance seems redundant unless the OP is supplying the flat fully-furnished?

OP - contents insurance won't cover any fixtures and fittings (such as bathroom/kitchen etc) in the flat in case that's what you're thinking?

sherman

13,065 posts

214 months

Monday 29th June 2015
quotequote all
Contents insurance is down to the tenant is it not?

boxst

Original Poster:

3,699 posts

144 months

Monday 29th June 2015
quotequote all
I thought that I needed contents / landlord insurance for damage that happens inside the flat like fire or leaking or similar?

The buildings cover is under a general policy that the freeholder pays (and we pay £60/month for that and the upkeep of the grounds).

I am also going to take the emergency cover which is another £60/year.

sherman

13,065 posts

214 months

Monday 29th June 2015
quotequote all
Landlords insurance and contents insurance are different things as far as I know

boxst

Original Poster:

3,699 posts

144 months

Monday 29th June 2015
quotequote all
Perhaps that is where I'm confused. It is Landlord insurance but I had to add a value for contents (£5K which is overkill).

Steve

anonymous-user

53 months

Monday 29th June 2015
quotequote all
The buildings insurance will cover - damage to the buildings by flood, fire etc.

"Landlord" insurance will cover your liabilities as a landlord - not the property/contents itself.


You probably would be best served going to your local insurance broker and chatting it through and they will give you what you need.

Simbu

1,783 posts

173 months

Monday 29th June 2015
quotequote all
Depending on your 'target market' and condition of the property I wouldn't necessarily bother using a letting agent to manage the place once the tenants are in. My fiance owns a flat that she now rents out and the extra cost per month (as a % rate) was > £100! This cost doesn't cover the cost of work either, just passing on the work required to their 'preferred tradesmen' who will then bill you for the work.

We used the agent to find decent professional tenants and draw up the contract and we manage the flat ourself. I'd pocket the cash and manage it yourself, especially if you live nearby. You get more control in dealing with any problems and can shop around for work that might need doing. Our decision felt further justified when the agent offered to drop the ongoing management rate twice before we signed!

maffski

1,866 posts

158 months

Monday 29th June 2015
quotequote all
boxst said:
Perhaps that is where I'm confused. It is Landlord insurance but I had to add a value for contents (£5K which is overkill).

Steve
Won't you be supplying a fridge, oven etc. the contents insurance will be for these I would have thought?

BoRED S2upid

19,641 posts

239 months

Tuesday 30th June 2015
quotequote all
boxst said:
Perhaps that is where I'm confused. It is Landlord insurance but I had to add a value for contents (£5K which is overkill).

Steve
You may find its a standard amount and think if it burnt down, new kitchen and white goods, new bathroom, sofa etc... Easily over 5k, I'd stick with £5k for contents there have been horror stories where tenants sell everything then do a runner leaving you / insurance to foot the bill. Also the landlords insurance should cover contents and public liability.

Rangeroverover

1,522 posts

110 months

Wednesday 1st July 2015
quotequote all
Hope this helps

1) If you live nearby just use an agent for what is called "tenant find", they will show the property, take out references and sort out the Assured shorthold tenancy for you. Generally this costs half of the first months rent.

Don't go for fully managed (and I say this as an agent)if you live nearby and you have access to local plumber, electrician etc. If when there is a problem and you get stuck call the agent who did the tenant find and they will probably suggest someone.

You don't have to but it is a good idea to get an electrical certificate

Try to let unfurnished, people who own furniture are less transient and tend to stay longer, also as it is their stuff in the flat they are more likely to keep the place clean.

Get an ingoing inventory/condition report (£70ish) make the tenant responsible for paying the outgoing report.

Landlords insurance, usually this covers the cost of white goods you may be supplying such as fridge, washing machine etc.

If you can, ask for contact details of previous landlord and have a chat with them.

Good Luck

Frimley111R

15,537 posts

233 months

Wednesday 1st July 2015
quotequote all
IME don't bother at all with an agent. Put an ad on gumtree or similar, show the flat and get references. That's all an agent does and tbh you'll do a better job!

Rangeroverover

1,522 posts

110 months

Wednesday 1st July 2015
quotequote all
The only thing I would say about Gumtree is if a potential tenant fails the application with us we tell them to try Gumtree as they are more likely to find a landlord letting direct who generally don't check as thoroughly. The agent will know how to properly execute an AST and will do all the viewings for you.

If you get any dramas in the future the agent will help you out with advice and contacts even if he isn't managing it.

Its not called "Slumtree" for no reason