As any landlord knows, the cost of replacing an old central heating system in a rental property can be a massive expense, and when you have several properties with worn out boilers, the financial outlay is huge.

But thanks to a new government scheme designed to help households replace their old inefficient central heating boilers with brand new energy efficient heating systems, landlords can take advantage of grants up to £1,250 per household and put it towards the cost of installing renewable “green” central heating systems. These include solar thermal panels, air and ground source heat pumps, and biomass boilers.

Research has shown that the installation of energy saving heating systems can be a big plus for prospective tenants. Nobody likes throwing money away on expensive central heating systems that use fuel like it is going out of fashion, so instead of spending valuable time and money maintaining and repairing an outdated boiler, consider installing a new “green” system for your tenants.

The £15 million Renewable Heat Premium Payment Scheme is open for applications from August 1st until March next year and a whopping £3 million has been set aside for landlords to upgrade their housing stock. Each application will be treated individually and the grant available will depend on the current system as well as the type of device being installed.

For those who want to be “greener”, this represents an excellent opportunity to rip out an old boiler and replace it with a new energy efficient one—and I will definitely be looking into improving some of my properties!

With money so tight at the moment, it is hardly surprising that large numbers of people are waking up to the idea of letting their spare room for one or two nights per week in order to make a little extra cash.

You might not have considered the idea, but if you are lucky enough to have a spare room that is not full of junk or in-laws, it makes financial sense to take advantage of the growing trend for short term rentals aimed at travellers.

As the cost of holidays soar thanks to fuel taxes and associated excesses, an increasing number of travellers are opting for private accommodation instead of fancy hotels (me included). Unsurprisingly, this is driving up demand for holiday homes and short term holiday lets.

So if you have a decent sized spare room, or you are open to giving up your home as a holiday let for a week or two per year, do the math and see how much extra money you can make. With an average room rate of £43 per night, letting a room for up to two nights per week could potentially earn you an extra £4,500 per year, which is not to be sniffed at. And if you live in London or Edinburgh, this rate is even higher.

Of course, if you happen to live on a rough estate somewhere, you might have a problem attracting visitors to your home—unless their SatNav has guided them seriously off the beaten track or they fancy a holiday with a difference!

In line with other recent news stories and statistics published of late, the Bank of England has reported a rise in the numbers of people turning to the buy to let property market as a sound investment. The bank’s figures show a steady increase since the first quarter of 2010, plus a sharp rise in the second quarter of this year, and in light of the increasing interest in the buy to let market, I can only assume there are an awful lot of investors just like me who are keen to make the most of the current market conditions.

It feels like every time I open a newspaper of go online these days, there is another news report telling me that first time buyers are losing faith in the prospect of owning their own home and are turning to the rental market instead. I also know from my own experiences that first time buyers unable to get a mortgage are fast becoming the most common prospective tenants.

So is it easier to find a buy to let mortgage in the current climate?

Well the numbers of buy to let mortgage products are certainly on the rise as lenders compete with each other to cash in on the buy to let property investment market. According to figures from one website, the number of buy to let mortgage products on the market exceeded 600 in May 2011, the highest level since 2008. And with long term tenant demand forecast to increase, now is certainly a good time to invest.

With the London 2012 Olympics just around the corner, many existing landlords and private residents are probably hoping to make some extra money by letting their properties to sporting enthusiasts for the duration of the event, especially since the hotels and guest houses in the area are already nearly full to capacity. But whilst it appears to be a fabulous idea for making some easy money, are there any potential pitfalls private residents should consider before letting a room or property next summer?

As any landlord already knows, including me, there are a number of statutory obligations to adhere to when letting out property. These include the provision of a tenancy agreement and obtaining consent from your mortgage lender if applicable. So whilst renting out your spare room for an astronomical price during the Olympic Games might seem like an incredibly smart move, you are well advised to check your legal obligations before advertising for short term tenants. Ensure you have adequate landlord liability insurance to protect yourself from damages claims and check there are no exclusions preventing you from letting your home to tenants.

But if you are sensible enough to look into your legal obligations before renting out your property during the Olympic Games, you could easily make a small fortune over the period thanks to the expected influx of visitors pouring into London to see the world’s top athletes perform. Sadly I was one of many who did not win any tickets in the draw, but I will be watching it on the TV!

Squatters can be a big problem for landlords and as anyone who has had to deal with squatters knows only too well, it can cost a great deal of money and time to try and evict them. Unfortunately, as the law currently stands, any landlord who attempts to force their way into a property will be in the wrong.

I was hoping that plans for proposed new legislation designed to criminalise squatting in residential and commercial properties would be a big step forward towards solving this difficult issue, but it would seem that perhaps the proposed changes do not actually address the biggest problem, namely the length of time it can take to remove squatters from a property.

At the moment, the biggest protection landlords have from squatters is to take out unoccupied property insurance. Such a policy will cover the costs of damage caused by squatters as well as offering protection against floods and fire.

However, for legislation to prove more effective, it needs to be made easier for landlords to evict squatters immediately. As things stand, it can take as long as three months before landlords are able to lawfully regain possession of their rental properties, and as we all know only too well, time is money! I also feel it would be helpful if the proposed legislation gave greater powers to the police so that they were able to actively discourage squatters from returning to a property.

According to a news report I read this morning, while drinking my coffee, landlords with rental property in the London area are apparently managing to beat the current economic recession remarkably well—for the first time ever, the average monthly rent on London properties has broken through the £1,000 per month ceiling.

It would seem that the demand for rental properties in London has never been higher and it would seem that potential tenants far outstrip the available properties on offer, which is good news if you are considering investing in a buy to let property in London. Competition in London is apparently so intense that rental property is being snapped up within a day of being advertised, which is unprecedented.

But London is not the only area affected by increases in demand for rental properties and tenant demand nationwide is pushing rents up everywhere (which is definitely a phenomenon I have noticed in my own area), and in most areas of the UK, there are not enough rental properties to meet the growing demand from prospective tenants.

So if this trend continues—and the signs are good that it will—the spike in demand for rental properties indicates that now is a good time for potential landlords to make an investment in a buy to let property, and for those such as myself who already own a number of rental properties, it is a good chance to cash in on the ever increasing demand and add a few more properties to your portfolio!

When giving some thought as to what potential tenants are looking for in the rental property market, you have probably already considered the benefits of re-vamping the kitchen, installing a new bathroom, decorating, and possibly fitting some new carpets from top to bottom, but have you taken into account the mobile phone reception around your property?

Somewhat surprisingly, a recent UK survey has revealed that a large number of prospective tenants place a great deal of importance on the availability and strength of their mobile network provider’s signal when considering a rental property. According to the results of the survey, 84% of those questioned said they would base their final decision on how good the phone reception in the area was, and if there was no signal, 35% would not take the property and 37% would be seriously put off. And in rural areas, the results were even worse! A staggering 85.1% considered mobile reception to be a crucial factor in whether (or not) they rented a property.

So although I have not previously thought about this issue, it is definitely one that landlords need to take into account before adding a new property to their investment portfolio. You might be tempted to buy a nicely presented house in a smart area, but if the main mobile providers do not have a phone mast in the area and the property is in a mobile black spot, you will suffer from a lack of tenants and will probably end up out of pocket as a result!

I read a very disturbing news article this morning about a tenant who repeatedly stole the identities of the property owners from whom she rented homes. Using fake documents, she secured rental agreements on a number of different properties and in the guise of the actual property owner she then went on to apply for loans from financial institutions.

The woman in question was a financial advisor by trade, so she obviously had inside knowledge as to how the system worked, but even so, it almost defies belief that she managed to defraud banks and building societies to the tune of more than £500,000—although she attempted to con almost £3 million in total!

In a plot worthy of an episode of the television drama, Hustle, the con woman even dressed up as the property owner in a bid to persuade the bank that she was the actual home owner, and since one victim was a 67 year old woman and the con artist was only 33, it was a pretty tall order. However, eventually she got caught out and was arrested at a bank in Harrogate before she managed to acquire any more “home improvement loans”.  She has since been jailed for five years as a result of her crimes.

Thankfully, something like this has never happened to me, and I sincerely hope it never does, but it just goes to show that no matter how careful you are when you vet prospective tenants, sometimes things can and do go wrong.

In light of the sluggish housing market, the general consensus of opinion these days is that it is better to spruce up your home with some well thought out home improvements rather than splash out on a bigger or better house. I happen to agree with this and I would rather install a new kitchen or bathroom than give lots of my hard earned cash to estate agents and solicitors, but how does this “improve, don’t move” philosophy translate into the rental market?

Some landlords prefer not to spend any money on their properties: other than the most essential improvements, they are quite happy to let the property crumble into disrepair around their poor tenants’ ears. But I think this is short sighted. Obviously, you probably do not want to splash out on a £20k kitchen every three years, but it makes sound economic sense to keep your properties modern and attractive to tenants.

Why is this?

Well the more attractive your rental properties are, the more likely you are to attract good quality tenants—and by that I mean tenants who will stay for the long term and pay their rent on time.

However, before you decide to splash out on a few home improvements, there is an important caveat to this advice. Always give careful thought to the age and style of the property before you undertake any extensive work, as any big mistakes you make could come back to bite you at a later date should you wish to sell the property.

Do you own a large property that is failing to make you much money? Is it located in a tourist hot spot? If you can answer ‘yes’ to both of those questions, you could be in an excellent position to take advantage of a gap in the market!

According to a recent news report I have just read, the demand for ‘no frills’ budget travel accommodation is on the rise and one innovative hostel company has recognised the potential business opportunity and set up a branded hostel franchise. The company is looking to form partnerships with owners of large, under performing properties in order to provide safe, cheap, no frills accommodation to backpackers and budget travellers.

New hostels in locations like London have proven to be extremely successful as the credit crunch bites and travellers look to economise on their trips. Hostel accommodation has also had an image overhaul and modern hostels are nothing like those of days gone by: they are bright and stylish, and designed to appeal to travellers of all ages and from all walks of life.

Sadly I do not have any properties in my portfolio that fit the bill, but if I did, I can certainly see the money making potential behind such a venture and I think this is a great way to make a large run down property work to your advantage. Instead of turning it into dingy bedsits, it makes far more sense to tap into the budget travel market, and with the hostel franchise company offering a money-back guarantee if the business fails, you can’t lose.