Most comprehensive landlord's insurance and recommended Letting Agents?

roadweary

Hi,

We have a situation where our elderly mother living in North West London (HA8) may soon need to move into a residential home.  To pay for this, we'd need to rent out her house.  Now I've seen far too many 'Nightmare Tenants, Slum Landlords' episodes where properties are trashed, there's no payment, protracted and menacing situations trying to get possession of the property etc...  Bad tv is my guilty pleasure when I'm trying to turn my brain off   

We'd definitely want to go through a good Letting Agent so recommendations there would be much appreciated. 

I'd also much rather pay for a premium landlord's insurance that covers as many as possible of the potential pitfalls of letting out a house, than suffer the unfortunate consequences I've seen watching the aforementioned programmes.

I understand there's always research to be done, but it would be really helpful if anyone has any recommendations and/or experience of what it is worth trying to insure against and not.

TIA

Grumpy_chap

roadweary said:

Hi,

We have a situation where our elderly mother living in North West London (HA8) may soon need to move into a residential home.  To pay for this, we'd need to rent out her house.  Now I've seen far too many 'Nightmare Tenants, Slum Landlords' episodes where properties are trashed, there's no payment, protracted and menacing situations trying to get possession of the property etc...  Bad tv is my guilty pleasure when I'm trying to turn my brain off   

We'd definitely want to go through a good Letting Agent so recommendations there would be much appreciated. 

I'd also much rather pay for a premium landlord's insurance that covers as many as possible of the potential pitfalls of letting out a house, than suffer the unfortunate consequences I've seen watching the aforementioned programmes.

I understand there's always research to be done, but it would be really helpful if anyone has any recommendations and/or experience of what it is worth trying to insure against and not.

TIA

To find a good LA, the best thing is local recommendation.  Even the national EA / LA chains vary between one branch and another.

There is premium LL insurance that provides rent guarantee etc.  The thing is, being a LL is running a business.  Running a business has risk.  You can try to insure against all your business risk, but you won't then have much residual income.

How does the potential rent compare to the care home fees?  Bearing in mind that is after LA fees (15% - 20% +VAT for a fully managed service) and after the premium insurance and after all costs of safety compliance etc.  After any property maintenance costs that may arise.  After income tax has been paid by your mother.

Is the property really ready to let straight away?  If your mother has lived in the property many years, it may be rather dated and require refresh to make it attractive to the best tenants.

Are you aware of the requirements and effort involved and the responsibilities of a LL?  Does your mother (or you under PoA) have the resilience for this?  If you are acting under PoA, all decisions must be made in the best interests of your mother.
What is the reason for opting to let the house rather than sell?
Have you considered potential CGT that may arise in future on eventual sale of the property?  (I understand exempted if the property is still owned at the owner's death.)

silvercar

I’ll message you a local agent.

Sam_666

Based on wording of OP, one is looking at money pit and endless nightmare.
Get POA, sell property and invest in good global tracker fund with low cost. Leave enough in saving account to cover anual care costs.

Murphybear

See if you can find an ARLA letting agent.  (Association of Residential Letting Agents).  To be ARLA registered they have to pass exams and they are not easy.  The advanced exams take an in depth knowledge to pass.  

theartfullodger

Be aware that to be a lettings agent in England requires no qualifications, no training, no criminal checks.  The whole office could legally be staffed by ex-prisoners from Brixton on early release from being imprisoned for GBH and/or fraud.

Seriously.  

Do you have the financial and emotional reserves to cope with the tenant -from-hell (or agent -from-hell) who doesn't pay for say 7 months whilst you try to evict/end agreement?

Other countries do this better.

Keep_pedalling

Why rent rather than sell? The chance of getting a tenant from hell is not an outside one. I can’t find it now but there was a long running thread on here where someone did this and it cost a vast amount of money in legal fees to evict a tenant who also trashed the place. 

Being a landlord comes with a lot of obligations and responsibilities (safety checks, getting the property up to rentable standard, tax returns, ect) and if you have no previous experience you should not do this without doing a lot of homework, an agent does not take all this away.

Do you have financial POA or deputyship in place? If you don’t you can’t rent or sell. If you do have this in place then your obligation is to act in your mother’s best interest not in preserving an inheritance, which is often the reason people look to at renting rather than selling.

ThisIsWeird

To answer the OP's Q, I understand that Direct Line insurance are one of the biggest in LL's insurance, and you can add whatever you want to it - lost rent, putting tenants up in alternative accommodation should they need to move out during repairs, Legal Protection (essential) for any issues, etc. Worth checking out.

And then there's NFU - National Farmers Union Mutual - which has an excellent reputation, but may cost more - but could very possibly be worth it.

You may wish to join this: https://www.property118.com/ , and I think they also have an arrangement with an insurer.

Just compare what's covered in each. Since you are new to this, I'd go pretty comprehensive!

roadweary

We have POA and I am looking into options.  I have rented out a property (not in London) for 17 years.

Everything is being done in our mother's best interest.  There are always many options and considerations, particularly when the money needs to potentially last for many years, hence doing research, including on here.

propertyrental

Recommending a LA can only be done y someone in the know within the area. A small local firm might be great... or carp. Similarly a national firm's local branch might be great.... or carp!.

If you are personally local to the property and have 17 years experience, then managing the letting yourself is probably the way to go. Now read

Post 9: Letting agents: how should a landlord select or sack?

Re insurance, you are really talking about standalone rent guarantee policy alongside your LL's buildings policy. These often specify how tenants are vetted, and exclude the 1st 1 or 2 month's arrears, and may stop paying out after 6?) months, so read the small print. They do however offer a degree of protection, helping with legals (eg eviction) as well as covering (some) rent arrears.

Lots of leglislation to comply with, all of which costs and eats into profits. Selling and investing might be more secure, less hassle, and safer.

Zoe02

Main thing is making sure the documentation are in place and the right tenant is selected who pass referencing and affordability which is the major criteria for landlord insurance with rent protection etc.

Letting agent will be your local one with good reviews but even that also good to have an idea of the requirements.

I listed on Openrent myself and became clued up by joining NRLA, landlord groups on facebook, reading about the requirements such as gas safety, deposit protection etc.