2. Market Appraisals, Insurance and Buy-To-Let Property

Question 1

What should you gather before attending a market appraisal?

Answer 1

All relevant information on a property

Question 2

What information should you obtain from the landlord?

Answer 2

Contact details, status and whether they will be living overseas

Question 3

What information should you provide to the landlord?

Answer 3

Services offered, fees charges, landlords statutory and contractual obligations

Question 4

What should you do at the market appraisal?

Answer 4

Establish timescales, viewing arrangements and details about the property and services, including lease details if applicable

Question 5

How should rental value be assessed?

Answer 5

Obtaining comparables which are used to verify rental figures in conjunction with current market forces

Question 6

The best comparables are what properties?

Answer 6

Properties with a similar specification, in a similar area and that have recently let or are under offer

Question 7

What other details about comparables can be considered?

Answer 7

Style, location, amentities, size, age and internal/external condition

Question 8

Landlords can place restrictions on the type and number of tenants as long as this doesn’t what?

Answer 8

Breach legislation

Question 9

Landlords can restrict access to what?

Answer 9

Certain parts of property

Question 10

If landlords restrict certain parts of property what must this not do?

Answer 10

Impact on means of emergency escape

Question 11

Who must be made aware when a property is being let?

Answer 11

Insurers

Question 12

Some insurers specialise in what?

Answer 12

Provision of insurance to landlords and tenants

Question 13

Landlords should have both what type of insurance to ensure what?

Answer 13

Buildings and contents to ensure they are covered for public liability

Question 14

What other insurance can be taken out?

Answer 14

Building, contents, legal protection, rent guarantee and emergency call out cover

Question 15

The popularity of buy to let schemes has resulted in what?

Answer 15

An increase in good quality property available to let

Question 16

Landlords must consider what when buying and preparing a property to rent?

Answer 16

All costs involved

Question 17

Potential rental levels usually have to be sufficient to satisfy who?

Answer 17

Mortgage providers

Question 18

Landlords must be aware of what in the area which they wish to buy?

Answer 18

Which sort of property is most likely to let out

Question 19

The property to let must be comparable with what?

Answer 19

The type of tenants the landlord is seeking

Question 20

Landlords need to be aware of additional and ongoing costs and expenses when budgeting for a buy-to-let property. They must pay what?

Answer 20

Income tax on net income received from rent

Question 21

Although landlords have to pay income tax from rent payments, what can they do to reduce costs?

Answer 21

Offset certain expenditure against tax