Residential landlords are leaving themselves at risk by failing to take out the right insurance products for their property business.

Redbrick, a buy to let insurer, found that only two thirds of landlords have specialist buildings cover for their buy to let investments, whilst only 12% have combined legal expenses and rent guarantee insurance, even though 71% of landlords expect tenant arrears to increase in 2009.

Tony Armitage, insurance director of Redbrick Landlords says: "Landlords need to carefully consider their insurance needs and ensure that they are properly protected. It is amazing that only two thirds of landlords have specialist buildings insurance, with the other third presumably having a standard household policy or, worryingly, no insurance at all."

Redbrick says tenant arrears are on the increase in the recession and landlords can easily cover themselves for rent arrears through a rent guarantee insurance product, which also includes the legal expenses involved in evicting the tenant. But Armitage warns that there appears to be a lack of awareness about the availability of these products and in the current environment landlords should be doing all they can to protect themselves.

He adds: "Buy-to-let landlords have sophisticated insurance requirements for which a typical household policy is often unsuitable. The biggest irony is that some landlords are actually paying through the nose for potentially unsuitable cover."

If you don't think you have the right buy to let cover, you probably haven't got the right cover. Talk to a buy to let mortgage adviser bout which insurance you need for your specialist area. Buy to let can be a very profitable venture, but without the right cover, it can end up being a nightmare.

SOURCE: Paragon, 03/08/09

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog

If you are a buy to let landlord who bought at the top of the market, now might be the time to reassess how you manage your investment.

When times were good there were a glut of mortgages on the market for those who wanted to dip their toe into property investment. Many invested very little after hearing promises of instant gain and massive profit over the short to medium term. But now house prices have fallen dramatically, those who were already highly geared with a high LTV mortgage might have to really think hard about their investment.

Kesh Thukaram, managing director of Smartlandlord.co.uk says: "Anyone who entered the private rented sector in the last couple of years is having a particularly hard time. Speculative landlords buying at the top of the market have a relatively high loan to value and falls like these have had a massive impact on their return on investment.

"Those landlords need to take extraordinary steps in these extraordinary times to safeguard their investments and cut costs even further if they're to survive – managing properties themselves rather than through a letting agent, and using online tenant find products at a fraction of the price of an agent."

Talk to a mortgage adviser and ask them how to best manage your investment. It might mean saving money, it might mean remortgaging your residential home, it might even mean trying to sell some of your investments. Extraordinary steps might be tough to take, but landlords must do all they can to survive.

Of course, it's not a terrible time for all landlords. Those who have managed their asset well may be able to look to increase their portfolio and cement their hold on the rental sector.

Thukaram says: "This is a perfect opportunity for them to invest in further properties while they offer the best value for money. They can secure good yields for the future while expanding their portfolios."

SOURCE: Smartlandlord.co.uk, 08/07/09

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog

Houses in multiple occupancy have special rules when landlords are investing in property. The government has changed the way these are regulated so there are special conditions that landlords need to comply with. There are also certain licensing regulations in each local authority. Increased regulation has meant that many landlords now have fewer HMOs which are the kind of properties usually rented by students. In addition, some landlords are turning down investment in properties which meet HMO criteria. All of this means that there is much more to consider for landlords who wish to invest in student property as there is additional cost in refurbishment.

Learn more about Investment in Properties and HMOs

If you are going to succeed with a buy to let investment, the right residential investment property is a crucial factor. That's why it's so important to get it right and to take advice, especially if you are new to the game. Lots of people choose to rent residential investment property. This is sometimes because they may work in one town and have their main home in another. In this situation they may be looking for a home away from home. There are also those who are long term renters, such as migrants from Eastern Europe, students and recent graduates.

Learn more about Residential Investment Property

Investment in property is a popular way of making some money. It has the advantage of medium term income from property rental as well as long term capital appreciation and there's never been a better time to consider investment in property. The rental sector is booming. There are people coming to the UK looking for jobs who need somewhere to live. And while we all bemoan the fact that first time buyers are buying later, this is good for the rental sector, which is experiencing increased demand. It's best to seek professional advice on investment in property. This includes everything from using a broker to source your mortgage to getting a letting agent to advise on rental.

Read more about Investment in Property