Many people look to invest in property as a way of investment or income. This can vary from single residential landlord properties through to commercial landlords.
How can you reduce your rental property costs?
Naturally, you will want to ensure you get the best deal possible for your rental properties to ensure maximum profit. This is even more crucial when looking for property portfolio insurance where multiple properties need ensuring together.
Here we have a few pointers that you can follow to help keep your landlord insurance cost down.
Choose the right rental property
When you are choosing the property that you intend to rent out, you should be very selective here. Rental properties are required to be kept to a high standard with yearly certification on things like gas.
As such, when you are purchasing a property for buy to let purposes, you should look for one that has been well maintained. Things you should consider are:
- Maintained interior
- Maintained exterior
- A roof less than 20 years old
- Electrically updated within the last 20 years
- Fully HVAC updated
- Plumbing and heating system that is up to standard.
By having all these as a good starting point will ensure easier certification and a safer property for your tenants.
Checkout the location of the property
Location plays a key role in any insurance policy. When selecting a property to purchase for the purpose of renting, you want to ensure you avoid ones located near a body of water.
Properties bought near bodies of water can be at risk of flooding and therefore you could require flood risk insurance or see an increase to your premium in general.
Another factor is the properties location. If you buy a property built on reclaimed land, then the property could be prone to subsidence. Subsidence can be a real headache for property owners where a separate subsidence insurance policy is often required.
Review the local crime level
Crime can be a real problem for many areas. Although it shouldn’t be a hugely detouring factor as it’s unlikely you’ll have many of your own items at the property, criminal damage could still be an issue.
Properties located near emergency services can also benefit from a discount.
Instal security measures
Installing security measures is always a great idea for any property. From standard home insurance through to your buy-to-lets properties, improving security is a must!
Things you can do within the remit of security include:
- Instal highly rated smoke and carbon monoxide detectors
- Sprinkler system (especially in non-standard homes)
- Home security systems
- Deadlock security locks
- Reinforced roofing
Ensuring proper security is one of the best ways to help reduce your insurance policy. Especially if the property is a HMO.
A landlord that performs regular maintenance inspections will have a much better idea of to the state and up keep of their property. Although you may have this carried out be a letting agent, you will still have a great idea of the property condition.
A property that is well maintained will often benefit from cheap landlord insurance. Those needing HMO insurance will also benefit from a regular property inspection.
Compare insurance providers
You should never just go with the first insurance provider that you speak with. Not all landlord insurance brokers have access to the same or competitive policies. As such, you will do well to compare landlord insurance from multiple brokers, especially when looking for property portfolio insurance.
We can help you find the most competitive brokers for you. We have long standing working relationships with brokers and can connect you direct via dedicated phone lines.
Increase your excess
By increasing your excess, you are essentially saying you are prepared to pay more towards the cost of any claim. This is the same for any type of insurance policy.
It is extremely important though to know that you can afford the excess you choose or you wont be able to claim in the event that you need to.