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Fairyland

Will Rgi(Rent Guarantee Insurance) Apply Brakes To Rising Rents

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Apologies if this is already posted.

Link: https://www.property118.com/warning-for-landlords-considering-increasing-rent/88576/

Warning for landlords considering increasing rent

Landlords are being urged to stop putting additional pressure on tenants who may already be struggling to pay their rent by increasing rents further.

Landlords need to be careful when increasing rents, particularly if they are aware that their tenants are struggling to begin with. Increasing rents regardless of this could lead to tenants defaulting on payments which is an issue for landlords, said a spokesperson for Property 118s landlord insurance provider Discount Insurance.

A quarter of landlords have served an eviction notice to tenants over the last 12 months and 5% have pursued an eviction through courts, according to figures from PropertyLetByUs.

Almost half of landlords have also experienced rent arrears over the last 12 months.

Landlords can protect themselves against such rent arrears and defaults with Rent Guarantee and Legal Expenses insurance and carrying out appropriate referencing checks, added the spokesperson.

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Is it just me, or, does it seem to anyone else that povertyl8r site has an agenda of pushing various schemes/products into BTL landlords that a certain person living abroad seems to benefit from financially each and every time?

I'd say 90% of posters on that site are just mug punters being sucked in by a salesman......

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You cannot insure rent for the same reason you cannot insure the continued trading of a business.

Its just too risky.

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Is it just me, or, does it seem to anyone else that povertyl8r site has an agenda of pushing various schemes/products into BTL landlords that a certain person living abroad seems to benefit from financially each and every time?

I'd say 90% of posters on that site are just mug punters being sucked in by a salesman......

Probably not far wrong.

If you want the website for true LLs then send me £500 ...

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Is it just me, or, does it seem to anyone else that povertyl8r site has an agenda of pushing various schemes/products into BTL landlords that a certain person living abroad seems to benefit from financially each and every time?

I'd say 90% of posters on that site are just mug punters being sucked in by a salesman......

The posters are mostly individuals landlords with combined ownership of £10 of millions (£100s m) of residential property.

You can wish away their own agency in BTL involvement as somehow being drawn into it if you want to. I won't. They are there because they are involved in everything on the BTL Vi side of the market, and as a few BTLers who tip up here from time to time remind us, how wrong have posters on this forum been for so many years (not helped by few with any stomach for hpc imo - 'the suffering'). They didn't just wake up with a loads of BTLs. They're in property investment, and fighting for their own Vi. I'm just pushing back against the other link to 'mug-punters' positioning = 'begin the compensation'.

The market is a tough place (although few people focus on weight pressing down on renter-saver side as they find excuses for BTLers/HPI Vi lovers) and we each have to make our choices within it. The mug-punters, and I don't see them so given all intervention, and BTLers still very much in position with £100Bns (£1Trn?) residential property.

This is an essential difference between HPC and the BTL fora. The BTL fora are places where you go in order to work out how best to do something that is supposedly a one-way bet. HPC is many different things and different things to different posters, but part of what takes place here is a sustained conversation about what the f**k is going on, and that allows us to entertain the possibility that late entrant BTL is a money pit - a mincer. The BTL gang cannot see that. They are people who know you can't go wrong with property.

This is one of the good things about the rash of articles as BTLers awareness of Clause 24 extends beyond the BTL fora and into the mainstream. For the first time since 2008-ish you're getting articles where people are accepting that you can go wrong with property and that maybe what they did was a mistake. Even the benighted Haig can see it, "I’ve ruined my own life by taking a decision which I thought would be good."

That should be the real marketing slogan for BTL; "Ruin your finances with decisions you thought would be good"

Of course, appearing the the Telegraph is just another bad decision. They should be selling, not spooking potential buyers. :rolleyes:

For the past 2 years, I have seen people continue to be bailed out for their balls out risk-taking, mocked for my risk aversion to the extent that I was openly mocked by BTLers as a poor man from a poor family* who do not understand what it takes to become rich (and by 'what it takes to become rich' they meant buy as much property as highly leveraged as you can), seen myself priced out of a market where houses are bought for cash and then rented out the day after completion at sub 3.5% yields (these are 3% stamp duty properties too), seen people pay more in stamp duty than I paid in rent for 3 years who are now sitting on £150k+ of 'profit'

and lastly have a landlord who despite buying the house I live in for under £60,000 in the late 90s contacts me to say that he needs to show a rental income of £800+pm (way above what I'm paying) so that he can re-mortgage onto a better deal. You do the math, I'd guess current value is around £240-250k but anything is possible in this market but not all early market entrants are sitting pretty and this sort of BTL activity has pushed up rental prices in the area to upwards of £1000pcm for a small family home and garden.

-----

Well it would be cheaper living under a bridge than buying a house but I dont think I could put up with the noise... Nope I just dont think trying to take a story that has already been twisted and try to twist it even more helps any cause and is the reason so many people outside hpc see comments from hpc users as a joke and not taken seriously when the underline message is important.

Sorry but I agree house prices are too high but just like the EU debate if you spout rubbish the less interested everyday folk just think well thats clearly rubbish, everything they say is rubbish which is why HPC has become a doom mongering joke.

Venger.... Yes I am on LLZ and yes I do own 3 BTL properties, they have small mortgages and I have always stated I have no problem paying more tax, I have always thought that BTL does need to be curtailed, is that hypocritical yes maybe, where I have bought is a small town with basically no rental family houses available and house prices extremely high, I rent to familys at 100-150 below market rates with my theory being that I bought the house for x amount and just because the house has gone up in price which has caused rents to rise I don't see why a tenant should pay for that rise...

Im a Turkey thats voting for Christmas, I think rent controls could be a good thing if implemented correctly, I think more could have been done to "level the playing field" like removing interest only mortgages, capping LTV rates at say 50%, id like to see house prices reduce by 20-30%, I know its hard for you to believe but actually you can have a foot in both camps... I feel it is because im in both camps that actually I can have a more balanced approach and my frustration is that the views of a lot of more moderate people on HPC that have a big message to send and the correct message is being drowned out by people like yourself who is so militant and closed minded that outside your little HPC bubble you are as a whole seen as a joke and the important message that could be sent is lost in your "troll hunting"....

Your undoubtedly going to dismiss me as a BTL ogre, well sorry to disappoint but im a normal chap that cares about my tenants, I only rent out places I would be happy to live in, ive never raised any of my rents... My reason for going into BTL was my pension is appalling, the money I put into the pension the pension provider is basically losing so im just treading water... I know people that have been burnt by shares... I don't want to be a burden to the state and actually if you go through post on LLZ, I have helped tenants know their rights and tried to make landlords more aware of their responsibilities... I find LLZ a much better place that the more extreme one sided views of those on property118...

Whatever the BTL forum, BTLers have £100s Billions in equity in this market, and their own VI. The charadiee BTLer, 'never raise rents' / 'my pension' / multiple properties.... but finding their way here to slam HPC and forever wrongs (other posts). All this other posts were against S.24 btw, wanting an alternative. Tough. All too often the BTL and HPI Vi have seen (mostly still see) renter-savers as the mugs. With wider housing market at new peak values, they're not yet in much mug-punter distress, but renter-savers/young mostly still very priced out.

Edited by Venger

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Well reading through it, there is more whine about S24 (tax on fictitious profits, vs actual position of cut in very generous tax-relief, which even when in full-effect, gives advantage over would-be OO).

Some synthetic sympathy about tenants, because as BTLers going to try and hike rents. Some will say no, but perhaps some BTLers manage to squeeze out a little more from some tenants. In wider market, voids and losses for BTLers on margin imo.

The BTLer 'mug punters' have their own VI, and new house price peaks. Run the numbers on a couple of 118ers from the info they have set out on many a thread. One has ownership of at least £4.6m of property, and equity of £1.8m. Another paid £2m for his own residential house just 18 or so months ago. So mug punter that really, with house prices at new peaks, and crushing weight of market, and BTLers trying to mess with renter-savers heads (already priced out), my sympathy is fully reserved for renter-saver side.

Sorry, landlord insurance does not protect against bankruptcy. It’s a terrible state of affairs and as a landlord myself, I have already started increasing rents. If it wasn’t for C24 I wouldn’t have needed to do so.
I have also stopped buying any properties as the chance of making a loss now is far too high. That’s not going to help the construction industry either.
I feel sorry for tenants. I feel sorry for landlords. I hate C24 and the Conservative Government for bringing us to this. My pension is in tatters and I am being tarred by the media as a greedy landlord. Walk a mile in my shoes…it’s all about survival now and if a tenant cannot pay the increased amount, then they will be left in the hands of the Council and that will end up costing the Government a lot more. Well done George Osborne!

Who do they feel sorry for most? Themselves imo, and their own housing financialisation Vi. Oh.. one BTLers has stopped buying more properties now, on back of S.24 / stamp duty hike. How nice. Malvestment needs to be found out by market.

You are the UK housing crisis.

The main reason people can't afford homes, is the extra demand from 5 million landlords who occupy something like 1 in 5 houses.

Demand for rental accommodation is created by landlords when they outbid owner occupiers, because every time a landlord buys a house they create a tenant.

You can possibly think that a shortage of housing is what forces people to rent houses, can you!?!

--

I've just been musing on what it is that winds me up so much about the bleatings of this 118 bunch, and I think it is this:

They proclaim that the government have let their tenants down by forcing rents up, but it is they who have done so by putting themselves in a position where they cannot provide the services they charge for, which is fundamentally a security of tenure free from the risks from the ravages of house prices, interest rates, mortgage regulation and so on.

So an element of rental fees is insurance, and they have failed to provide that insurance by indirectly exposing their tenants to that which they should be shielding them from.

They take these risks on behalf of the tenants, and a good landlord should themselves either be unexposed to these risks, or be willing to absorb them, and yet I have seen posts proclaiming that their tenants accepted the risks through tenancy, which is rubbish.

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You cannot insure rent for the same reason you cannot insure the continued trading of a business.

Of course you can! Along with the legal costs of getting rid of a bad tenant and restoring the house they've trashed. I'm sure any of the landlord sites or popular money-sites would tell you more.

As with any insurance, it's subject to you following the insurer's rules and not doing anything too stupid. Double the rent and both tenants and insurers are likely to take a dim view.

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On 7/10/2016 at 11:43 AM, SOLZHENITSYN said:

Is it just me, or, does it seem to anyone else that povertyl8r site has an agenda of pushing various schemes/products into BTL landlords that a certain person living abroad seems to benefit from financially each and every time?

I'd say 90% of posters on that site are just mug punters being sucked in by a salesman......

Maybe you can bail out the BTLers for their innocence, and BTLing decisions in a market.  I'm sure they'd take your savings if you offered them, on top of the rent they take from tenants.

Edit: I forgot I was reading an older thread.

Edited by Venger

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On 10 July 2016 at 2:50 PM, porca misèria said:

Of course you can! Along with the legal costs of getting rid of a bad tenant and restoring the house they've trashed. I'm sure any of the landlord sites or popular money-sites would tell you more.

As with any insurance, it's subject to you following the insurer's rules and not doing anything too stupid. Double the rent and both tenants and insurers are likely to take a dim view.

As I understand it, the insurance covers tenant default only.  You cannot insure against not finding a tenant that will pay the rent you set, or a void.  I presume that's what Spyguy meant?

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This is clearly a new business opportunity for insurance products. Some may get into it voluntarily, however, with time some LLs may be forced to get in? What stops the LAs making this insurance mandatory especially for HB PRS?

Edited by Fairyland

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