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A vacant rental property is not something a landlord would wish for and in the current economic climate an unoccupied property can easily become a target for criminal activity. If your buy-to-let property is, or is about to become, vacant then there are a number of things you need to be aware of so that you can not only minimise the risk to your investment but also save yourself money in the short- and long-term.
Council tax
If your property is unoccupied then you may be exempt from paying council tax.
The council tax exemption could apply if your property falls into any of the circumstances listed below.
- Empty, unoccupied property that is substantially unfurnished. Exemption period: six months maximum. The property must be vacant for the whole of this time (up to six weeks' occupation, however, is permissible during this period).
- Property that is vacant because it requires major repairs or alterations to make it habitable. Exemption period: 12 months maximum (regardless of whether the work has been completed by that time) or for up to six months after the repair work or alterations have taken place.
- Property unoccupied because the person who would normally have to pay the council tax is in prison.
If you consider that you are entitled to a council tax exemption then contact your local authority.
Squatters
Vacant property can be attractive to squatters. A squatter is someone who unlawfully occupies an uninhabited building or land without the owner's knowledge or consent. Squatters do not have any ownership documents, tenancy agreement or other documents to prove their right to occupy the property. Once in, squatters cannot be forcibly removed without a court order.
Security
Unoccupied property can fall victim to criminal acts such as vandalism and burglary. It is imperative that if your buy-to-let property is vacant, you have adequate security measures in place and inspect your property regularly.
Insurance for landlords
If your property is, or is about to become, vacant then inform your landlord insurance provider. Check that you have adequate buildings and contents cover for the period when the property will be unoccupied and that you comply with any insurance requirements. , it may become restricted after a stated period of time and certain incidents will not be covered such as escape of water and thefts, so it is imperative that you check your policy conditions and measure are taken such as turning the water off, safeguarding the property and making regular checks.
Examples of insurance requirements are listed below.
- Make sure fire or intruder alarms are on.
- Drain the water and heating systems.
- Install security measures.
- Carry out inspection visits.
- Remove combustible material such as junk mail on a regular basis.
- In the winter protect your water pipes from the cold.
In addition, it is also worth exploring the possibility of taking out rental income insurance. Also check your landlord insurance cover.
Other
Other practical steps you can take if your property is vacant are listed below.
- Redirect post.
- Remove hazards which may harm someone entering the property.
- Give your details to your neighbours.
Vacant properties present both a financial and security risk to landlords. You can minimise the impact of the risks associated with an unoccupied property by taking a proactive approach to security, complying with legal and insurance requirements and applying for unoccupied property council tax exemptions.
Related articles:
Attracting and keeping tenants
Legal tips for landlords
Dealing with problem tenants
General landlord information (DIY, Inventories and more..)
Energy-saving tips for landlords and tenants
Financial tips for landlords
Buying a buy-to-let property (auctions, location etc)
Insurance for landlords
Using letting agents
Mortgage information for landlords
The information contained within this article is for general information purposes only, it does not constitute advice. Direct Line for Business endeavours to keep the information up to date and correct but does not make any representation or warranties of any kind about its completeness, accuracy, reliability or suitability. Any reliance you place on the information is strictly at your own risk. Direct Line for Business will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.
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