PDPLA 2016 AGM Reports - Finances
- Finances
- PDPLA Christmas Party
- Insurance
- RLA
Finances
A steady year on the Finance front with no significant changes from previous years. Income was up slightly due to increased membership and also increased revenue from insurance but to balance that, the cost of room hire at The Queens has increased, as did the cost of the Christmas Party (see separate item).
There was a 'one-off" set of income and expenses that went through our books this year as we ran the PAT testing course, bought equipment, etc but overall we had a successful year and transferred £5,000 to our reserves, which continue to be more than adequate for our continued existence.
Malc Drew
PDPLA Christmas Party
As previously mentioned, the cost of our Christmas Party rose significantly in 2015, from a budgeted £800 to something in excess of £2,000. Given that at £20 / head, that is 1/3rd of the annual subscription for those who attend, we have to question whether this is the best use of our funds and if not, what we do this year and in the future. If you have views or suggestions, please let us know at the AGM or via email in advance if you cannot make it.
Insurance
Our insurance income continues to provide us with the ability to do what we do whilst keeping member subscriptions very low. We still believe that the 5 star policy that Alan Boswell"s provide our members is the best landlord insurance available. Obviously every case is different and Boswell"s themselves will contract with different insurers to provide the cover to a particular landlord depending on their circumstances, but whilst we accept that cheaper insurance is available and some landlords want a lower excess, we strongly believe that when you compare like with like, the Boswells offer is the most comprehensive and best supported landlord insurance available.
(If you talk to the RLA about their insurance, they argue it is as good, but when you ask about 'malicious damage" they will say, yes it is covered but not if caused by the tenant…. Now who is the person most likely to maliciously damage your property? Boswells cover tenant caused malicious damage).
So if you don"t insure through Boswells, we do urge you to consider getting a quote it when your current policy comes up for renewal - we believe the cover you get will be better, the support provided has proven to be excellent when a claim occurs and it helps us maintain low membership fees.
When renewing or getting a quote do check your excess, which is negotiable, and remember some companies give you a big discount first year but you will see a sharp increase after year one. Boswells do not do this. Steve Cox will be at the AGM meeting to update us on all insurance issues including rent guarantees.
Also, do not forget that all members have basic cover should they be subject to an HMRC investigation or need to defend themselves against a legal action, this need not be property related. The DAS cover also gives access to general legal advice.
RLA
We will also be considering whether the PDPLA should affiliate with the RLA. If we do so, it will be because our members believe the benefits for themselves and for the PDPLA are worth it and the driver for this action is not financial. However, it is included in this section as there will be a significant financial impact to the Associations operations and thus its finances if we do affiliate.
With this in mind, it may be worthwhile to start by explaining the problem we are trying to fix here..
"Becoming a landlord has become much more complex in the last couple of years. Just look at all the extra things we have to do for every new tenant. It is no longer possible for a willing volunteer to know all the answers and keep members informed. A good website with all the documents you may need stored in a structured format so you can find what you need and guidance on how to use them is essential. They need to be updated by qualified and experienced professionals regularly. For more difficult questions and for those who struggle with the technology we need people on the phone who are professionally trained and responsive to our needs.
Only a large association can afford to deliver this service but we are a great little group of landlords who value our freedom and independence.
Many members already understand this need and are members of the NLA or the RLA already but they get two magazines, and pay two subscriptions.
We could all join the NLA who have the occasional local meeting but they insist on controlling the purse strings and retaining governance.
A number of small associations like ours have affiliated to the RLA. They retain complete autonomy but use the services of the RLA. Members get all the benefits of both associations for the single subscription of the largest.
Members need to decide if we should affiliate. It will affect our finances and subs would go up so at the AGM we will be informing members of the process we will follow in order to make a decision. All members will be fully informed and we have invited the RLA to meet members and answer questions. We plan to make a final decision by the end of July"
Tony Athill