With many changes in HMO Legislation in the last 12 months, it’s no surprise that Landlords don’t know which way to turn. With increasing stamp duty, changes in taxation and ever increasing regulations, being a landlord is becoming more of a minefield every day. Having said that, HMO property can still be a good investment if you do your research, look after your property and tenants and understand those areas where cost savings can still be made. One such area where you can help to cut costs is by working with a specialist Insurance broker that really understands HMO Insurance and has access to all the best policies out there.
Why HMO Insurance with Goldcrest Insurance?
3 great reasons which will benefit the Landlord and safeguard the property.
- Loss of rent cover automatically included instead of having to pay premium per tenancy agreement
- Legal cover free of charge
- Boiler breakdown cover
So what do this cover mean.
Well, loss of rent will cover you if your tenant has defaulted on a payment or has just upped and left the property. They give you unto 4 months cover which is free of charge
Legal cover will cover you for any contractual disputes with a tenant or cover you for any liability claims or disputes with neighbouring properties.
Boiler breakdown cover will cover you if your boiler breaks down or if there were to be a situation were the boiler was unrepairable due to fault then the insurers would pay for a new like for like boiler.
This policy wording comes for those landlords who have an HMO and let it to professional tenants only.
Its a great bit of additional cover and must be welcomed due to the strain HMO Landlords / Landlords have been put under over the past 18 months with many new rules, regulations and increases on stamp duty.
HMO landlords who are not up to scratch with new laws face punitive fines and expensive restructuring work.
Research by Simple Landlords Insurances reveals more than 85 per cent of landlords are unfamiliar with new laws set to come into effect next year.
New HMO Licensing Legislation
New proposals mean landlords of homes of multiple occupancy will require new licences. Some 60,000 HMOs currently require a licence. A further 174,000 properties could need one under new proposals which aim to improve housing conditions. The proposals could impose minimum standards to room sizes, storage facilities and waste disposal.
These changes would apply to all HMOs including conversions and properties of multiple use. Previously, only HMOs of three stories or more have required a licence. Some 40 per cent of HMO landlords are still unaware of the changes or not sure of the details. Under new rules local councils would have powers to adjust the minimum standards and licensing fees.
Landlords who fail to get to grips with the new rules could be left with rooms they can no longer rent or even face fines.
Simple Landlords Insurance head of operations Alex Huntley says: “As the six month countdown to these changes begins, we would like to see more clarity from government so landlords aren’t caught unawares.”
These changes, expected to be introduced in April 2018, are the latest upheaval landlords face. Already they have had to deal with increase stamp duty and changes to mortgage interest tax relief.
Home Safe Scheme founder Carl Agar says: “The good news is there’s likely to be a six-month grace period for landlords to catch up with new legislation. Transferring from an unlicensed property to a mandatory one is also likely to be pretty simple. HMOs can still be a very good investment, in the right area, targeting the right audience and managed closely.”
At Goldcrest we will not sell you an expensive piece of paper but are interested in working with our clients to make sure their asset has the correct cover and the insurers are fully aware of exactly what they are covering. Get in touch today to find out how we can help you navigate the new rules.
