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Making the most of your investment this year | Main eInsurance

Making the most of your investment this year

by maineadmin on January 28, 2013


In the current financial climate, being a landlord can be a profitable business. Many potential first time buyers are unable to get their foot on the property ladder and so are forced to continue renting while they asses their housing options. As a consequence the rental market is booming and those that are able to buy to let are reaping the benefits. However, as a landlord you can’t just sit back and expect things to work out, there are still various things you must do to protect your investment, such as keeping the rent at an acceptable level as well as securing a full and comprehensive landlords insurance policy.
When operating as a landlord, you’re effectively running your own business, so you need to run it like a business, taking into account all your profits and loss. For example specialist broker Swinton Commercial can supply landlords with competitive rates on landlords insurance which can also include covers such as Rent Guarantee to protect your rental income, as well as legal expenses.
Calculating rent
It’s important to keep your rent at an acceptable level. Continuing to increase it may seem like a profitable option, but if you price it completely out the range of your target tenants you could end up in a situation where the property is completely empty – the worst thing that can happen to any landlord.
It’s all about getting the right balance between making as much as you can out of your investment and protecting it sufficiently by ensuring you attract tenants.
Securing insurance
While you may think that the state of the British economy benefits your position as a landlord, there are also many issues which could really affect your income if you don’t protect yourself adequately. Many areas throughout the country are suffering from high levels of unemployment. If you have property in one of these areas, without landlords insurance you could be staring financial ruin in the face.
Insurance in the form of rent guarantee insurance will provide you with full protection in the event that your tenants are unable to pay the rent; which can have severe financial implications especially if you have mortgage commitments on the property. If the problem with your tenants and their inability to pay the rent persists, you may have to pursue an eviction. In many cases this could end in legal proceedings, which can prove extremely costly. With full and comprehensive insurance for landlords, the cost of these proceedings will be fully covered. This doesn’t come as standard as part of a landlords insurance policy, but it’s worthwhile looking into for an additional layer of protection.
Added protection
Once you’ve got your insurance and set the rent at a sensible but profitable level, you need to also make sure you get the best possible tenants to really make the most of your investment. Always vet them with employment and credit checks and insist on a deposit to give some added protection for the physical state of the property.

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