So far this winter we have been very lucky with the weather—apart from some gale force winds. The average temperature has been fairly mild and we have had very few frosty mornings as a result, but judging by the weather forecast today, we are in for a cold spell within the next few days, so before you end up cleaning up the after effects of cold-related damage, think about taking some simple steps to protect your properties from the cold weather.

Plumbing is a major disaster area when the mercury falls. Inadequately insulated pipes freeze up and then burst once the temperature rises. The end result of this state of affairs is usually a flood, which can cause thousands of pounds worth of damage and leave a property uninhabitable for months. The best way to prevent a burst pipe is to ensure any vulnerable sections of pipe have plenty of insulation on them, but if the property is vacant for any length of time, it is a good idea to leave the heating on, albeit set to a lower temperature than normal. This will help to prevent any burst pipes indoors.

If the worst DOES happen and you are faced with a flood in one of your properties, contact your insurers and try to organise remedial repairs as soon as possible. The longer you dither over sorting the problem out, the more long term damage will occur—wet carpets can be dried out, but if they are left untreated for too long, they will go mouldy and rot the floorboards beneath.

On the face of it, 2012 looks like it could be another bumper year for buy to let landlords, whether you have been in the property game for many years, or you are just about to buy your first investment property. But although the rental market is definitely increasing as more and more people decide to rent rather than buy, it is worth remembering that the current difficult economic conditions could have a number of knock-on effects as time goes on.

The credit crunch is affecting all of us. The cost of living is increasing almost daily, but even more significantly, the level of unemployment nationwide is also increasing. Jobs are no longer safe, and of course this will inevitably have a negative effect on the buy to let market.

Despite the general feeling that buy to let investment is a fantastic opportunity in the current market, there is also some suggestion amongst a few experts in the industry that the struggling UK economy will eventually lead to a rise in rent arrears caused by rising unemployment, evictions, and a fall in the average rent across the board, and since rental income services buy to let mortgages, landlords might end up in arrears themselves if they are unable to meet their monthly repayment on the loan.

Recent figures indicate that rent arrears were up by 20% at the end of 2011 and rental payments are becoming more expensive than mortgage payments, so keep a close eye on the fluctuating market conditions in the buy to let market as the outlook might not be so rosy in the long term.

According to experts in the property rental industry, the demand for student accommodation continues to outstrip supply across the board and many savvy property investors are taking advantage of this state of affairs by snapping up properties in the student sector.

The latest figures indicate that the amount invested in student accommodation has risen by 220% in the last twelve months, which equates to around £860 million. This suggests that more and more landlords are realising the potential diversifying their property portfolios and buying properties suitable for student accommodation.

Somewhat surprisingly, many of these new investors are from overseas. These investors see the UK student property market as a relatively safe investment with a good rental yield.

Is student accommodation a good buy for landlords?

Student occupancy is currently around 99% across the UK. Demand is incredibly high and looks likely to remain so, so investing in accommodation for students is an excellent way for UK landlords to expand their portfolios. The market is very much driven by supply and demand and with the numbers of students on the rise your investment is likely to be safe for the next few years at least.

What types of properties are suitable for student accommodation?

Long gone are the days of derelict older properties that were riddled with damp and infestations, but marketed at students nevertheless. Modern students expect far higher quality accommodation and are prepared to pay extra for it, and a growing number of wealthy overseas and mature students means you can invest in a better class of property and still market it at the student sector.

Are you aware of the new financial penalties facing landlords if they fail to place their tenant’s deposits in an approved scheme within thirty days of receipt of the money?

As of the first of April this year, the new Localism Act instigated by the government to protect tenant’s rights comes into effect. One of its requirements is that money handed over to a landlords or letting agents as a deposit on a rental property, must be placed in a protection scheme in order to safeguard the rights of both tenants and landlords should there be any tenancy disputes at a later date.

Once the money has been deposited, the landlord is required to pass on information to the tenant about the Tenancy Deposit Scheme (TDS) within the thirty-day period. This information includes a leaflet and a deposit protection certificate, plus confirmation that the deposit has been registered on the TDS database.

Should the landlord fail to place the money in the Tenancy Deposit Scheme within the thirty-day period, the tenant has the right to make a claim for up to four times the original amount of their deposit. They can do this as soon as the thirty-day period has expired, even if the landlord is one day late or the tenancy has ended, although the courts will take these factors into account if a case is brought before them.

With such severe financial penalties at stake, it is essential that landlords and letting agents comply with the rules, or they may face numerous claims from savvy tenants.

As the rental market continues to grow, there is some concern that unregulated letting agents are ripping tenants off with variable fees and significant up-front charges. Because of this, many experts are calling for the government to force letting agents to adhere to the same standards estate agents are subject to.

Research has shown that fees charged by letting agencies vary enormously across the country and tenants are often completely unaware of what charges they are incurring before they sign a rental agreement. Of the twenty-five letting agents surveyed, only two openly displayed their fee structure on their website, and in most cases, tenants were left completely in the dark until it was too late.

With an increasing number of families forced to move into the private rental sector, this kind of behaviour could leave many households financially disadvantaged—a lot of tenants are being forced to find a deposit for a new property before they are handed their old one back. If letting agents were regulated in the same way as estate agents, some of the more unscrupulous practices could be outlawed. Charges also need to be more transparent so that tenants know exactly what they paying right from the start. It should also be made easier to transfer deposits between landlords.

With increasing numbers of tenants seeking rental properties, the market is incredibly buoyant, but unfair practices harm everyone, especially vulnerable tenants, and as a landlord, I am strongly in favour of anything that helps to keep the rental market fair.

According to a new report, one in three tenants living in private rented accommodation is struggling to find the money to pay the rent. The figures are slightly less for those living in social housing but, nevertheless, around 29 % are still having problems making their monthly payments. Of course this is hardly surprising when you consider the cost of living these days, and no doubt even more tenants will be struggling to pay their rent as Christmas loomed.

So on a lighter note, what excuses have you been given by tenants who have failed to make their monthly rent payments? Some of the outrageous excuses I read this morning made me laugh out loud: see if any of them strike a chord with you…

 “I can’t pay my rent as my BMW is in the shop, and I cannot afford to pay for both.”

 “I had my choice of paying the rent or buying a car. I bought a car. I knew you would understand.”

 “I don’t want to pay the rent because the house is haunted.”

And on a related note, here is another amusing story I heard the other day… A local landlord was unfortunate enough to have a tenant who decided to do a moonlight flit rather than pay the three months outstanding rent he owed. But unlike the average tenant who moves out in the dead of night and leaves a huge mess behind, this guy decided to clean the house from top to bottom and had all the carpets professionally cleaned first!

With Christmas less than a week away now, the latest rent figures released show a drop in the average rent across England and Wales for the first time since January 2012. In November the average monthly rent was £720, but in December, this fell to £717 per month. However, since inflation also dropped slightly, we probably shouldn’t complain too much.

Why have rents fallen in December?

One of the reasons why the average rent might have fallen this month is because many landlords are less aggressive with rental pricing in the run up to Christmas—nobody wants empty properties over the festive holiday and into the New Year, least of all me.

Interestingly though, some areas have bucked the trend and landlords in Yorkshire and Humber have been lucky enough to enjoy an increase in their property rents during December. Overall, however, rent prices continue to rise and London and the South East remains the fastest growing rental market in the UK—rents increased by 4.2% this year.

Are rents likely to continue rising in 2012?

If you are new to the buy to let market, you are probably hoping that your investment will continue to provide a good income for 2012 and beyond, and the goods news is that experts believe the continuing demand for rental properties will continue to push the average rent up throughout 2012. So if you are still on the fence about whether you should invest in a rental property, things are looking good for 2012 and the rental sector remains strong.

Following a debate on an amendment concerning direct payment of housing benefits to tenants, the government has decided to look at the issue in greater detail to see what the effects of direct payments would be.

Landlords supplying social housing normally receive the housing benefit a tenant is entitled to directly from the government, but many charities representing the rights of tenants, mortgage lenders, and social housing landlords believe that this system is wrong and tenants should be given direct responsibility for their finances and allowed to choose who receives their housing benefit payments. They argue that only tenants classed as “vulnerable” should have their housing benefit payment made directly to the landlord and that in all other cases, the universal credit should be paid directly to the tenant.

The government has commissioned a review of the payment process, which will be led by Professor Paul Hickman from Sheffield Hallam University. The review will evaluate the effect of a direct payment made to tenants in six test areas, and if the results are positive, the government will consider changing the current payment system to allow tenants to take responsibility for where their money is paid.

Personally I think this a good idea. It seems ridiculous that tenants entitled to housing benefit have no say on how their money is paid, and since the amendment apparently had support from Peers from all sides in the House of Lords, it appears that most people are of the same mindset.

What do you think?

If you are looking for a new niche in which to expand your property rental business, the holiday homes market is currently considered to be a sound investment for landlords. Many Britons are revising their future holiday plans to take into account the fact they have less money in the budget to pay for expensive holidays abroad, and with this in mind, there are many benefits to investing in holiday lets.

Experts believe that the holiday homes market could spike over the next decade because of several factors, largely because property prices have crashed and many families are looking at holiday lets as opposed to the more traditional package holiday in a hotel type trip.

I can see the benefits of investing in holiday let type properties: the long-term capital gains are very appealing and the domestic holiday let market is undoubtedly going to rise in popularity, plus you also have a nice holiday home you can use off-season when the urge to take a break strikes!

In the UK, tourist hotspots such as Newark near Sherwood Forest and Corfe Castle in Dorset are considered to be ripe for growth, and if you are interested in the idea of investing in a foreign holiday let property, check out countries such as Slovakia or Finland as there is plenty of potential for growth opportunities there. Alternatively, look at places where current demand far outstrips supply—popular foreign holiday destinations for Brits include Ibiza, Malta, Canary Islands, and all of these have a shortage of available holiday homes during the high season. In the UK, Brighton & Hove and Central London is a holiday let heaven for savvy investors.

The Valuation Office Agency are trying to encourage landlords to report their rental charges per property so that local authorities are able to draw an accurate picture on the what the average rent charge across the private rented sector is in their area.

In case you are wondering why the VOA needs this information, the figures are used to help determine the local housing allowance, otherwise known as housing benefit. The amount of money tenants on Housing Benefit receive is based on the average market rent in their area. Currently this figure is based on the 50th percentile of the average rent in the area, but the government is planning on making significant cuts to the amount paid to tenants and future housing benefit payments will be based on the 30th percentile of rent payments in the local area.

As we are all aware, the number of people living in private rented accommodation has been soaring of late. This has inevitably led to an increase in the average rent across the board and many local authorities are behind the times in terms of their figures. In order to help make sure tenants on housing benefit receive enough money, local authorities rely on up-to-date information and according to the VOA, it is very easy for landlords to report their rent figures: simply fill in a lettings information form and email/post/fax it back to the VOA. The VOA promise that all information will be kept confidential, but if you want to find out more about reporting rent charges on your properties, check out the VOA website.