Letting Property - A New Landlord's Questions and Answers
By Chris Horne 
1. I want to let a property do I need a tenancy agreement?
No, there is nothing in law to say you have to have a tenancy agreement. However, if a dispute arises then it could be very difficult to prove who was right and who was in the wrong. I would always recommend that a landlord uses a solicitor drafted Assured Shorthold Tenancy.
Things to look out for in a tenancy agreement:
• Protects your rights as a landlord.
• Produced by a legal expert.
• Suitable for multi lets.
• Suitable for use by a company.
• Does not include clauses which were recently deemed as 'unfair' by the Office of Fair Trading.
• Allows the landlord to charge for the cost of collecting late rent payments.
2. Can I increase the rent?
A landlord can increase the rent at anytime providing the tenant agrees. If they don't, a landlord will have to wait to the end of the fixed term of the tenancy, or, where it's a periodic tenancy. then the landlord will have to follow the statutory procedures if the tenant refuses to agree to the rent increase.
3. I want to get rid of my tenant because they've stopped paying the rent, surely I can just kick them out?
No. Don't even think about it. A tenancy gives your tenant certain rights to stay in a landlords property, even if they do many things that the landlord thinks are wrong : like not paying rent, being anti-social, failing to look after the rental property. If a landlord tries to evict them without going through the right procedures a landlord could end up with a big fine or even a prison sentence. Even phoning them at work could be considered to be harassment of the tenant. Landlords need to tread carefully.
4. I want to let my property but do I need a letting agent?
No. Landlords can do it all themselves and save a small fortune. A letting agent will look to charge a landlord as much as 15% of the rent for letting and managing the rental property. If a landlord is able to let the rental property themselves this will save a great deal of management costs.
5. I want to get my property back. How do I go about it?
This requires a landlord to seek possession. How a landlord gets possession will depend on the specific circumstances, and getting things wrong can be costly. Some landlords seek legal advice Or some landlords choose to do it themself, but need to follow the possession instructions carefully.
6. Do I need to take a deposit?
No, landlords don't need to take a rental deposit. In fact many landlords letting to students or low value rentals don't bother taking a rental deposit. If a landlord does, they will need to use one of the Governments approved tenancy deposit schemes or risk a big fine.
7. Do I have to declare my rental income to the taxman?
Yes. Rental income is assessed under the land and property section of a landlords self- assessment return. There are a lot of expenses that a landlord can set off against their rental income, some landlords might even make a rental loss ( especially in the current harsh economic climate ). Losses can be carried forward and set off against future rental profits.
8. The tenancy is coming to an end what do I do?
If a landlord has set a fixed term tenancy, say a 6 month tenancy, and want to carry on with the same tenant, the landlord has got a number of choices. Get the tenant to sign and complete a new tenancy agreement. Amend the terms of the existing tenancy including the dates of the tenancy and get the tenant to sign and agree the variation. Allow the fixed tenancy to lapse and it will then run on as a statutory periodic tenancy in which case the tenancy will just carry on with the same from rental period to rental period until the landlord or the tenant bring it to an end.
9. Do I need a specialist landlord insurance policy?
Yes. Normal household insurance won't cover your property if you start renting it out. This is because household policies do not cover buildings, contents or the landlord for third party liabilities while the buy-to-let property is being let out, read more on landlord insurance cover options.
10. What's an EPC? Do I need one?
An EPC or Energy Performance Certificate has been introduced by the Government to measure the energy efficiency of a rental property. Since the 1st of October 2008, any property that is being marketed for rent needs to have one. Find out more about the EPC.
Chris writes for propertyhawk.co.uk a site dedicated to UK landlords and free tenancy agreements. Including free online property management software.
Article Source: http://EzineArticles.com/?expert=Chris_Horne
Does Owning Rental Property Help You on Your Taxes?
By Rocco Beatrice
The answer to this question will depend on a variety of factors. The determining factors are included if you have a mortgage or own the rental property outright. In order to receive any tax breaks on property, you will need to itemize your taxes. This task should be dedicated to a CPA so it is assured that everything is done correctly and you will receive the tax benefits.
On the IRS website, you can learn how rental income should be reported when you file your taxes. There are some important things to take into consideration when filing. Always remember that any rent you receive for tenants is considered to be a source of income. If any improvements are made to the property by the tenant without charging you for those improvements, the value of the improvements is also considered to be income. If you have taken a security deposit that will not be returned, this is income.
It is very important for landlords to keep meticulous records of any and all transactions that are associated with the rental property. Even if the additional income hurts your tax return, the IRS demands complete accuracy when you report any income that resulted from a rental property.
While this may all sound overwhelming, there is a positive side. Rental properties are considered tax-deductible. This means that anything you do to maintain the rental property that incurs an expense, can be deducted from your taxes. You must have all documentation to support the claims of these expenses. If you file for a deduction, you have to support the claim with concrete proof.
It is important to know what expenses are eligible for a deduction. Basically, as long as the expenses are related to the upkeep of the property or the administrative tasks associated with being a landlord, you can submit the expenses and claim them as a deduction. This can include any repair costs, interest that you pay for the mortgage and equity loans and the cost of advertising to find new tenants.
This does not mean that every single expense will be deducted. If you spend money that exceeds the amount of income you receive from rent, you will find that many of your expenses will not be deducted. If you have questions as to what can be deducted, it is best to consult with a CPA or contact the IRS. There is no rule that governs rental properties because every situation, and every landlord, is different.
Owning rental property can help on your taxes in other ways as well. In addition to the standard deductions, there may be other ways to save on taxes. In some cases, a landlord will obtain a home equity loan on the rental property. They will then use the proceeds to invest in insurance products that are non-taxable. This is legal and can be claimed on your taxes. You will need a qualified CPA to help with filing your taxes to make sure that your claimed deductions qualify. Rental property is a great source of extra income and it can save a lot on your yearly taxes.
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Do You Have Adequate Landlord Protection Insurance?
By Darren Cruise
Obtaining suitable landlord insurance is one aspect of property investing that you can't afford to overlook. Malicious damage by a tenant, loss of rental income & legal liabilities are just some of the hazards you will face as a property investor and are reasons why many investors hand the responsibility for running their investment over to a property manager.
However, obtaining sufficient landlord protection insurance is one responsibility that you should take care of yourself - even if you do end up going with a policy recommended by your property manager (more on this a little later).
When assessing the fine print of an insurance policy, ensure it does not contain any clauses that will negatively impact you from being covered for all the common tenancy problems. Often property investors take out a building policy that has been loosely marketed as a landlord product and assume that they have adequate cover.
The fine print in these policies frequently reveals clauses excluding events such as malicious damage by a tenant, accidental damage by a tenant, legal liability & cover for the loss of rental income - all essential components that you require coverage for.
Landlord insurance requires special inclusions and is only offered by a limited number of insurers. Before signing up for an insurance policy ensure that it covers the following risk factors:
- Malicious Damage/Accidental Damage - This covers damage caused by a tenant, which does not occur as a result of normal wear & tear. This includes holes in walls, smashed doors & intentional damage to floor coverings as well as unintentional damage cause by honest tenants.
- Rent Default & Theft - When a tenant owes you back rent, skips town & steals some items a properly structured landlord protection insurance policy will cover these events. However, there will be a maximum amount that can be paid out by the policy, normally a certain period of weeks rent.
- Loss of rental income - This will cover you in instances where malicious damage/accidental damage to your property has resulted in a loss of rental income whilst repairs are carried out. Loss of rental income can also occur from other events such as absconding tenants, the tenant defaulting on payments, death of a sole tenant etc.
- Legal liability - Be sure that your insurance policy covers you for public liability. This will protect you for any event whereby a tenant (or any of their visitors) suffers an injury and subsequently sues you for damages.
Ensure you compare as many policies and insurance premiums as you can before making a decision on the best landlord insurance policy for your particular circumstances.
Article Source: http://EzineArticles.com/?expert=Darren_Cruise
All About Landlord Home Insurance
By Nicholas Raflesia
Do you really know about home insurance? Especially do you know if you need a homeowner's policy? A family that lives in a home that they possess will have different coverage needs then a family who rents a home. Likewise, landlords and people who possess condos may not need all of the coverage the people who reside and possess in stand alone houses do. You will obtain the best coverage at the most affordable cost if you understand what you have to cover, and what things are already covered by another policy.
Any landlord who possesses a small to a large property owner will need a landlord home insurance to protect his assets. As you have a good quantity of equity attached to your property and require a certain quantity of revenue from your property, you would want a good appreciation for your property.
Landlord insurance protects your revenue any advantages from tenant's rent. You as a landlord are more concerned on insuring your own contents rather than tenant's contents. It is the job of the tenants to insure his content through a separate tenant insurance cover. It can be completed through normal process of home insurance policy. With this home insurance, a landlord can insure all contents that he possesses in the property.
Landlord home insurance policy is similar to any other homeowner's insurance policy. Conditions of insurance for properties are subjected to all the different kinds of landlords. If you are a landlord, you should undeniably encourage your tenants to purchase home contents insurance for them.
As a landlord, it is significant you obtain a comprehensive cover deal that will look after the home structure, land area and home content. Please take you time to research the fine prints in the policy you are purchasing. This is very significant if you want to have peace of mind during the active period of your landlord insurance contract.
In actual fact, a number of landlords go as far as lowering the rent slightly just to encourage their renters to take on home contents insurance.
If you want to get some excellent resources on home insurance, please visit my site on All about Home Insurance or Landlord Home Insurance
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