Property Owners Sector
The property owner's sector is a large and diverse part of the UK economy. It encompasses a wide range of property owning organisations including financial institutions, property companies and government bodies - as well as individuals who own and manage property portfolios of all sizes for profit or for the benefit of the tenants.
Portfolios can consist of residential and / or commercial properties and can vary in size from single properties to schedules containing hundreds or even thousands of premises.
Key property owners within the market include:
Financial Institutions
Includes pension funds, investment houses, insurance companies and other institutional investors who tend to control large portfolios of properties. Many have in-house expertise and resources to handle insurance, whilst others will pass business onto brokers. Service levels, administration support and risk management advice are as important as insurance cover in this sector.
Property companies
Property owning companies can be privately owned or quoted on the stock market.
Most however are small to medium sized property companies which are often relatively small firms controlled by partnerships or individuals.
The ownership of the company can affect its approach to property investment, depending upon the returns the owners of the business expect to receive.
Speculators & Investors
These include a variety of organisations including developers, house builders and property owning companies. These companies try to anticipate demand across different sectors of the property market and aim to offer premises which meet demand.
Buy to Let
The expansion in the buy to let market over the last 10 years has been driven by a generally buoyant economy, the rise in house prices, the under-supply of new residential stock and buy to let seen as an alternative investment. The sector has attracted many new entrants (largely private individuals) who have taken advantage of historically low interest rates to become landlords owning properties for income generation.
Residents' Associations
The number of residents' associations have increased over the last few years, as individual residents have exercised their right to take over the management of their shared premises. This creates a new separate legal entity of which association members can be deemed directors, thus imposing extra liabilities upon them. Click here for information on Resident Association Directors' Liability.
Government and Local Authorities
Large property portfolios are held by the government and local authorities. A wide range of property is owned and managed either for direct governmental or local authority department use or for the benefit of tenants.
Property Owners' Risk Management
Norwich Union Risk Services is the specialist division of Norwich Union, dedicated to minimising risk for businesses and offers training and consultancy services on a range of health and safety and environmental issues. Our aim is to work with you and your clients providing you with the skills and knowledge to understand your risks and establishing systematic controls to comply with legal obligations.
The following are a list of areas to be aware of, when dealing with Property Owners:
Safety of Gas and Electrical Appliances
Landlords have a legal duty to maintain gas appliances installed for the use of tenants. It is vital they are checked annually and that proper, written records are kept of these checks. The duties are different for gas appliances in residential premises. A landlord can never delegate their duties to the tenant.
Property Owners are also responsible for the safety of fixed wiring in their properties. The importance of this cannot be over-emphasised because faults in electric wiring account for the majority of fires and sometimes fatal electric shock accidents. Procedures should be in place to ensure that all electrical installations are only carried out by competent people, electrical accessories are of good quality and that testing of electrical installations is carried out at least once every five years.
Asbestos
Property owners are likely to be duty holders under the Control of Asbestos at Work Regulations. The objective is to protect users and maintenance or building workers. The owner must identify materials which may contain asbestos, arrange for samples to be taken, decide if any asbestos should be removed or sealed and if removed ensure it is done by a licensed contractor. If it is to remain the site should be marked and employees / contractors informed of its location. Regular checks should be carried out to review its condition.
Legal Liabilities
Property owners have civil liability for injuries to members of the public & tenants in respect of the property under their control. It is important your clients regularly assess and housekeep their premises to reduce risks, especially those in common areas. A written preventative maintenance programme should exist, especially in relation to the statutory inspection of any boilers, lifts or pressured systems. Many accidents are caused through slips and trips, so to minimise the possibility of claims a formal risk assessment must be carried out - to review overall lighting, the condition of staircases and the appropriateness of floor finishes.
Management of Contractors
Property owners must ensure that contractors and their staff are not at risk from the property owner's, or their tenant's, business activities. Clients may also have liability for injuries caused by contractors. To manage contractors effectively, property owners should have formal arrangements in place for the selection of competent contractors, ensure contractors provide method statements detailing the precautions they will take and provide written rules for those appointed relating to issues such as fire evacuation, restricted areas and special hazards.
Tenants
Any property owner must carry out a careful and detailed vetting process to ensure potential tenants are suitable and undertake a full inventory listing and deposit control process.
Fire Risk Assessments
Where a property owner has any control over a workplace they must carry out a proper fire risk assessment and keep associated records - to review fire risks in the workplace, check fire detection and alarm systems, means of escape and provide proper fire fighting equipment.
A documented undertaking to inspect premises on a regular basis to reduce the risk of arson would also be seen as sound practice. This may include staff training, correct waste disposal and keeping perimeters and fuel stores in a good state of repair.
Disability Discrimination
Recent legislation makes it unlawful for a person letting a property to discriminate against a disabled person by refusing to let a property to them because of their disability, or discriminating against them by offering less favourable terms. Although some concessions are allowed (for example on the grounds of health and safety) the detail of this legislation is something you should make your clients aware of.
Unoccupied Premises
Unoccupied premises may be inevitable features of an ever-fluid property market but evidence shows that the prospect of damage or injury arising from empty buildings is high - even if they are only temporarily vacant. They are not risks we favour. However, where a building does become unoccupied it is vital the property owner assesses the risks and reviews arrangements for security, fire, health and safety & liability to the public. They should consider how best to minimise risks - for example by implementing measures such as perimeter fencing, boarding windows and maintaining a cared for appearance. Clients should also notify you / us and make themselves aware of any restrictions in insurance cover or warranties.
Websites which may be of interest to property owners:
www.landlords.org.uk - The National Landlords Association (NLA)
www.rla.org.uk - The Residential Landlords Association (RLA)
www.landlordlaw.co.uk - Legal Information
www.landlordzone.co.uk - Busy chat forums
Please contact the following
member of staff who will be delighted to discuss your insurance requirements:
COMMERCIAL
Liz Kelly 01253 598958
or
Paul Willis 01253 598969
Email: mail@rowlands-hames.co.uk
or
alternatively click on the button below and we will contact
you at a time of your choosing.
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