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Insuring Your HMO (And Other Precious Items!)

The end of the year heralds house insurance renewal. Every year I promise to apply myself, compare quotes and wallow for the next year in the knowledge that I’ve secured the most competitive deal.

The reality is, when the broker calls I groan with resignation and tell him just to get on with it. As he flicked through his computer information on my claim history, he came out with “Oooo, aren’t you a good client? You haven’t made any claims in the last 4 years so it’ll be easy to get you a good quote”.

“Excellent!” said I “And if I HAD claimed in the last 4 years I presume my quote would have risen to affect the amount paid out?”

Silence.

“Well, yes, that can be a problem” he replied.

Me: “And that’s why I don’t claim. Find me a quote, don’t bore me with the details and just let me know the telephone number for when a house burns down”.

However, how many houses do actually burn down? With HMOs, we are rightly governed by so many fire risk assessments and regulations that, according to my recent chat with a man in uniform, “you can stand in the hallway for 30 minutes without a fire affecting you”. Great, so I’ve informed all tenants that, should a candle set light to the curtains or a cigarette get lost under the duvet cover, come out of the room calmly, stand in the hallway and enjoy the safety the firedoors, smokestrips and fire retardant plasterboard I give you.

Later, whilst chatting to a friend, she asked that, if I’ve never made a claim, why bother with insurance? I explained that with HMOs there is ALWAYS the possibility of a fire.  Especially when the tenants take it upon themselves to put sellotape over the fire alarms or, to my eternal amazement, ignore the backup low battery signal which emits every 30 seconds.

So, it doesn’t matter how well maintained the house is, how many fire precautions are in place or how many baths you replace with showers to prevent flooding, are you willing to risk your cash on the odds of an unforeseen event happening which costs more than the insurance premiums?

So this year I’m leaving a well known insurance broker due to lack of customer service and unacceptably high levels of marketing emails and switching to The Home Insurer.  They understand the nature of HMOs and, from my research, seem to pretty much insure anything else.  I’m also giving their number to my tenants for quotes as it turns out quite a few of them do actually insure their room contents!  (They’re also human beings, very experienced insurers and don’t give in if the computer says “No”).  Click the link or give them a call on 0800 612 5764 and let me know how you get on.

On another note of insurance, the police turned up to take a statement following the case of Simon, his friend, a night out and a broken window. After checking that I hadn’t given permission for the friend to chuck a flowerpot through the window in October, he gave me the crime number for “insurance purposes”. I laughed and said – “Unlikely, Officer!” We’ve settled for a community order whereby, should the police find the young man involved he’s under instruction to pay me the cost of the repair. When I told Simon he replied, “Sod that, I’ve already told his girlfriend I’m going to kick his head in when I next see him”.

There’s nothing like a bit of civil justice, eh?

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Confessions of a Tenant

One great upside to this landlord business is how it puts you in touch with people you’d probably never encounter.  I’ve met tenants with a variety of hobbies from body building and fishing to alcohol and drug abuse and a bit blackmailing on the side.  Never, ever, though have I come across Linda’s hobby in either a social or professional capacity.

Linda is 55 years old and a Dominatrix – she doesn’t get paid otherwise this would be classed as prostitution.  The confession came about yesterday after she asked for a bigger room to accommodate her newly acquired wooden Cross.  Here’s how the conversation went:

Me: “What, a crucifix?  Are you very religious?  There’s a church over the road with loads of them”

Linda: “No, it’s a special cross to put people on but I only want to store it here, not use it” Continue reading

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No Home Comforts for Those on Housing Benefits

I’m reluctant to publish guest posts, but this excellent article written for me by Alex Murray of Safesite Facilities neatly encapsulates my experience on the front line of accommodating housing benefit tenants. There’s an additional, heart warming story at the end to prove landlords aren’t all inflexible, greedy sods.

No Home Comforts for Those on Housing Benefits

When “non-smokers only” started appearing in property-to-let listings in the UK, it was widely acknowledged as positive action which directly reflected the attitudes of British society and its wish to be free from the stench and alleged ill-effects of smoking.

Fast forward to 2014.  Although “non-smokers only” still appears, another two words, which first crept in during 2008, have begun to take prevalence.  Again, two little words which are accommodation-ad specific, but once more seem to represent the attitudes of a society  seeking to free itself from something seen as negative, pervasive and pernicious:

“no benefits.”

Sadly though, this advertisement addendum is far from a positive reflection on 2014’s British landlords and society.

How did it come to this?

Since the coalition came to power, the days of government and public benevolence or relative even-handedness towards those claiming benefits have been numbered.  Along with the government, much of the British media have stood in line to condemn benefit seekers as “lazy” or “scroungers” whilst fly-on-the-wall documentaries such as Benefits Street seek to demonstrate to the remaining public who display a live-and-let-live attitude towards others that they might be misguided in not jumping on the judgement band-waggon; after all, an alternative programme title might have reflected the difficult cycles some vulnerable families find themselves trapped in, but no, Channel 4 chose Benefits Street.

After the frosty reception which greeted their plans for the Bedroom Tax and the on-going disability benefits and ATOS Work Capability Assessments (as in don’t give ATOS) debacle, the government then rolled out its Universal Credit scheme nationally in October 2013.  This scheme replaces, amongst others, the long-standing housing benefit and involves making single monthly payments directly to claimants.  From this, claimants are expected to make their own rent payments direct to their landlords.

Government Assurances – for the Landlords

Although the government is adamant that Universal Credit gives landlords greater protection from tenants who fail to pay – review of payments kicks in after just one month of arrears – this hasn’t been enough for landlords.

A recent survey, conducted by SpareRoom.co.uk, revealed that landlords have lacked confidence in the government’s systems for handling benefits, largely since the introduction of Local Housing Allowance (LHA) within the housing benefit system, in 2008.  This change, which also allowed payments to go direct to tenants, was identified by 88% of landlords as having a negative impact on their businesses, through late payments and damage to their property.

With their confidence, revenue and portfolios already shaken from LHA, 6 out of 10 landlords (57%) state that they now refuse to accept tenants on benefits.  Of those landlords still willing to take housing benefit claimants as tenants, over half plan to will stop when Universal Credits become fully functional (around 2016) and several large property investors, including Kent property tycoon Fergus Wilson, have already served eviction notices on current benefit-claiming tenants, as reported by the BBC.

Assurances for the benefit claimants?  Anybody?

With low levels of social housing stock, eviction notices in hand, the “no benefits” banner across the rental sector and the benefit shakeup generally causing unknowns for those finding themselves claiming benefits (including reliable, responsible, hard-working families and pensioners), what hope is there for those relying both on benefits to make ends meet and the rental sector for a roof over their heads?

In truth, not much.

Whilst the landlords can gain the same (if not more) money by letting their properties on the open market, housing benefit claimants have no alternatives, just further belt-tightening.  This is inevitable as any landlords still willing to rent to them increase rents to match their own increased “risk” and to pass on their additional buy-to-let mortgage and insurance costs, which have risen considerably for landlords renting to the benefits sector, as many buy-to-let lenders also coin in extra cash from others’ misery.

As Matt Hutchinson, the director of SpareRoom.co.uk reflects: “the rollout of universal credit is set to make the situation even worse.   With rents rising and the welfare budget suffering from further government cuts, the outlook for tenants reliant on housing benefit is getting bleaker.”  Not only that, but thanks to the divisive “no benefits” mentality pervading the rental sector, the outlook for our prospects as a cohesive, empathetic society looks pretty bleak too.

Thank you, Alex.

55p and a Cat Called Bill

A couple of weeks ago, John contacted me through a friend.  An eloquent, skilled barber who had numerous men’s grooming awards under his belt but, following a breakdown, had been forced into sofa surfing whilst trying to get to grips with his own recovery.  How easy is it to recover your self esteem when you’re sleeping on a lumpy sofa in someone’s living room, with no privacy or hot water?  His only stable, trusting relationship was with Bill, a nonchalant black and white cat who clearly has no idea he holds his master’s wellbeing in the pads of his paw.  All John had to offer was 55p in his pocket and a promise that Bill wouldn’t pee in Jim’s newly planted containers.  All I have to do is to help him fill in the forms, wait around 5 weeks for the claim to be processed and I will hopefully have 2 very happy, contented, mentally stable tenants for a long, long time (and I get to stroke one of them).

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