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Are you thinking of renting out your property?
When it comes to letting your property you want reassurance that your investment is in safe hands. We offer a complete, cost-effective property management service for landlords. And as property owners ourselves we know how to manage your property with care and diligence for optimum performance, whilst ensuring smooth running tenancies and compliance with the various Landlord/Tenants laws.
Our list of services includes:
- Visiting you at the property and providing you with a rental valuation and any other advice in regards to letting out your property.
- Using various methods (advertising, tenant’s waiting list, to let board etc...) we will locate a suitable tenant for the property and accompany them to the viewing.
- Carrying out credit checks, obtaining and evaluate references.
- Prepare the tenancy agreement and arrange the necessary signature(s) from the tenant.
- Collecting a deposit which will be treated in accordance with the current legislation.
- Prepare a schedule of condition and an inventory of the property.
- Check the tenant in to the property and agree the inventory.
- Assist with the transfer of utility services (gas, water, electric & council tax) in to the tenant’s name.
- Receive rental payments in advance from the tenant and make prompt payment to you together with a detailed statement.
- Carry out an inspection of the property on a regular basis and report any issues to you.
- Arrange with you any maintenance or repairs to the property where necessary using our comprehensive list of tried and tested contractors or, alternatively, you may prefer us to use a contractor already known to you.
- Maintain contact with the existing tenant and arrange renewals of the agreement as and when necessary.
- When the tenancy ends, we will arrange check out, where the inventory is checked and schedule of condition made.
- We will make arrangements to re-let the property with the minimum vacant periods to ensure you receive the optimum return from your property.
- Advising you on compliance with the various safety regulations.
- We do offer a Tenant Find Only service to Landlords that do not wish to undertake Full Management.
Check out our Landlord’s guide of things you’ll need to consider before renting out your property:
Before a property can be let, there are several matters which the owner will need to deal with to ensure that the tenancy runs smoothly, and also that he/she complies with the law. We provide summarised information below. If you require further advice or assistance with any matter, please do not hesitate to contact us:
Preparing the Property
We have found that a good relationship with Tenants is a key move to a smooth-running tenancy. As Property Managers this relationship is our job, but it is important that the Tenants should feel comfortable in their new home, and that they are receiving value for their money. It follows therefore that a well presented and maintained property in a good decorative order will go towards this, whilst also achieving a higher rental figure. Tenants are also more inclined to treat such a property with greater respect.
General Condition
Electrical, gas plumbing, waste, central heating and hot water systems must be safe, sound and in good working order. Repairs and maintenance are at the Landlords expense unless misuse can be established. Interior decorations should be in good order and preferably plain, light and neutral.
Utility Services
Ensure that all available utilities are connected to the property including, gas, water and electricity. Where provided, check any LPG/OIL tanks are in working condition and that any septic tanks attached to the property are emptied. We will advise the Tenant on the transfer of Council Tax and utility accounts into their name. Meter readings will be taken, allowing your closing gas, water and electricity accounts to be drawn up. British Telecom will require instructions directly from both the Landlord and the Tenant.
Furnishings, Carpets, Curtains & General Interior
Your property can be let fully furnished, part furnished or non-furnished. Which of these is appropriate will depend on the type of property and local market conditions. We will be pleased to give you advice on whether to furnish or not and to what level. As a minimum you will need to provide decent quality carpets, curtains and light fittings. Remember that there will be wear and tear on the property and any items provided.
Personal items, ornaments etc.
Personal possessions, ornaments, pictures, books etc. should be removed from the premises, especially those of real or sentimental value. Some items may be boxed, sealed and stored in the loft at the owner's risk. All cupboard and shelf space should be left clear for the Tenant's own use.
Information for the Tenant
It is helpful if you leave information for the Tenant, eg. on operating the central heating, hot water system, alarm system and the day the refuse is collected etc.
Cleaning
Before the commencement of a tenancy the property must be in a thouroughly clean condition, and at the end of each tenancy it is the Tenants' responsibility to leave the property in a similar condition. Where they fail to do so, cleaning will be arranged at their expense.
Gardens
Gardens should be left neat, tidy and rubbish free, with any lawns cut. Tenants are required to maintain the gardens to a reasonable standard, provided they are left with the necessary tools. However few Tenants are experienced gardeners, and if you value your garden, or if it is particularly large, you may wish us to arrange visits by our regular gardener.
Keys
You should provide one set of keys for each Tenant. Where we will be managing we will arrange to have duplicates cut as required.
Other Important Considerations
Do you have a mortgage on the property?
If you have a mortgage on the property that you intend to let then you will need written permission from your mortgage lender. Depending on who your lender is will determine whether they want to include extra clauses within the tenancy agreement.
Is your property held on a Lease?
If you are the leaseholder of the property then you will need to check the terms of the lease prior to letting and obtain any necessary written permissions.
Insurance
You should advise your insurance company that you are letting out the property and you should make sure that you have adequate insurance cover for buildings, content and public liability in place. Failure to notify your insurer may invalidate your policies. If you need further advice on Landlords Legal Protection, Rent Guarantee Cover or Contents and Building Insurance, please feel free to ask.
Bills and regular outgoings
We recommend that you arrange for regular outgoings eg. service charges, maintenance contracts etc. to be paid by standing order or direct debit. However where we are managing the property, by prior written agreement, we may make payment of certain bills on your behalf, provided such bills are received in your name at our office, and that sufficient funds are held to your credit.
The Cost of Letting Your Property
While your thoughts maybe leaning towards how much you can get by letting your property, you must consider and budget for any costs that could arise, for example:
- Monthly mortgage payments due on the property
- Expenses for bringing the property up to the required standards, physically and in terms of safety
- Solicitors fees
- Letting agent and management fees
- Insurance fees
- Contingency budget for ad hoc maintenance and repairs
Post
If you are renting out a property where you no longer live (e.g.: you are moving and want to let the property) then you will need to arrange to have your mail re-directed to your new address.
Income Tax
If you are currently residing in the UK, it is your responsibility to inform Revenue and Customs of any rental that you receive and to pay any taxes due. Where the Landlord is resident outside the UK during a tenancy, he/she will require an exemption certificate from the Revenue and Customs before he/she can receive rental balances without deduction of tax. Where we are managing the property we will provide advice and assistance on applying for such exemptions.
Inventory
It is most important that an inventory of contents and schedule of condition be prepared, in order to avoid misunderstanding or dispute at the end of a tenancy. Without such safeguards it will be impossible for the Landlord to prove any loss, damage, or significant deterioration of the property or contents. In order to provide a complete service, we will if required arange for a member of staff to prepare an inventory, schedule of condition and take photographs at the cost quoted in our Agency Agreement.
Legal Requirements & Health and Safety
Gas
As a landlord of a property equipped with gas appliances you need to understand and comply with the law relating to gas safety.
- Under the Gas Safety (Installation and Use) Regulations 1998 all gas appliances and flues in rented accommodation must be checked for safety within 12 months of being installed, and thereafter at least every 12 months by a competent engineer (e.g. a Gas Safe registered gas installer (Council for Registered Gas Installers).
- All gas appliances and associated pipe work and flues should be maintained to ensure they are safe to use and prevent risk of injury to any person.
- Provide the tenant with a copy of the safety certificate before their tenancy commences or within 28 days of the checks being done.
- Records must be kept for at least two years of the inspections of each appliance and flue, of any defects found and of any remedial action taken.
Electrical
The Electrical Equipment (Safety) Regulations 1994
The electrical supply and appliances within a property must be safe at all times. Appliances must be checked for defects (e.g. badly fitted plugs or frayed wires etc.). If an item is found to be unsafe then this should be removed from the property prior to offering it for rent. There is no statutory checking procedure (except in the case of HMOs) but we strongly recommend that all landlords’ have an annual inspection of electrical appliances including an electrical supply safety check, by a qualified electrician. Records of any checks should be retained and provided for inspection if required.
The Plugs & Sockets (Safety) Regulations 1994 (Consumer Protection Act 1987)
Any plug, socket or adapter supplied which is intended for domestic use, must comply with the appropriate current regulations.
Furniture Safety
The Furniture & Furnishings (Fire) (Safety) (Amendment) Regulations 1993
It is now an offence to install any furniture in let properties that do not comply with these regulations.
The regulations apply to
- Headboards
- Mattresses
- Pillows and scatter cushions
- Stretch or loose furniture covers
- Children’s furniture
- Garden furniture suitable for use in the dwelling
- Sofa-beds
- Futons
and any other item with similar type fillings of which must carry the appropriate labels of compliance.
Upholstered furniture must have fire resistant filling material and must pass a cigarette resistance test and permanent covers must pass a match resistant test. Any furniture added to the property since 1st March 1993 must comply with these requirements whether new or second hand.
The regulations do not apply to
- Antique furniture made before 1st January 1950
- Bedclothes including duvets & pillowcases and loose covers for mattresses
- Curtains
- Carpets
- Sleeping bags
- Cushion covers
The recommended way to check whether furniture complies is to look for labels attached to the furniture. If there are no labels, you must try and establish when and where the furniture was bought and contact the retailer or manufacturer to check whether the item complies. If you are unable to establish where the furniture came from or its compliance, it must be replaced. It is illegal to let a property with furniture which does not comply with these regulations.
Building Regulations – Part “P”
The Landlord and Tenant Act 1985 puts the responsibility on the landlord to make sure that the electrical installation of their property is safe when a tenancy begins. From 1st January 2005, all domestic installation work must be carried out by a Government “Approved” Contractor. Electrical Contractors will also have to verify that the works complies with (BS7671). Failure to comply with these regulations is a criminal offence and could result in fines of up to £5,000 and/or imprisonment.
Smoke Alarms
The 1991 Building Regulations require that all properties built since June 1992 must be fitted with mains operated interlinked smoke detectors/alarms on each floor. Such regulations regarding older properties do not exist but we strongly recommend that smoke alarms are fitted in all let properties and are regularly checked to ensure they are in full working order.
(HMO) House in Multiple Occupation
Under the changes in the Housing Act 2004, if a landlord lets a property which is one of the following types it is a House in Multiple Occupation and may need to be licensed.
- an entire house or flat which is let to three or more tenants who form two or more households and who share a kitchen, bathroom or toilet
- a house which has been converted entirely into bedsits or other non-self-contained accommodation and which is let to three or more tenants who form two or more households and who share kitchen, bathroom or toilet facilities
- a converted house which contains one or more flats which are not wholly self contained (ie the flat does not contain within it a kitchen, bathroom and toilet) and which is occupied by three or more tenants who form two or more households
- a building which is converted entirely into self-contained flats if the conversion did not meet the standards of the 1991 Building Regulations and more than one-third of the flats are let on short-term tenancies
- in order to be an HMO the property must be used as the tenants' only or main residence and it should be used solely or mainly to house tenants. Properties let to students and migrant workers will be treated as their only or main residence and the same will apply to properties which are used as domestic refuges
The landlord must check with the relevant Local Authority and obtain the correct licenses before any tenancy can commence. Failure to obtain a license can attract large fines of up to £20,000. Learn more here: www.communities.gov.uk/housing/rentingandletting/privaterenting/housesmultiple/
The Disability Discrimination Act 1995 (DDA)
In December 2006, amendments to the above act came in to effect giving a disabled person the right to ask a landlord for reasonable adjustments to a property to enable him to enjoy the property and its features as an able-bodied person could. Such modifications are temporary and at the end of the tenancy can be reinstated. Any alterations and changes to the property will be at cost to the landlord. Learn more here: www.dpw.gov.uk/aboutus/dda_factsheet4-premises.pdf
Housing Health & Safety Rating System (HHSRS)
The Housing Health and Safety Rating System (HHSRS) is a new risk assessment tool used to assess potential risks to the health and safety of occupants in residential properties in England and Wales. The new assessment method focuses on the hazards that are most likely to be present in housing. The HHSRS assesses 29 categories of housing hazards, each hazard has a weighting which will help determine whether the property is rated as having Category 1 (serious) or Category 2 (other). Tackling these hazards will make more homes healthier and safer to live in. Landlords are advised to assess their property to determine whether there are serious hazards that may cause a health or safety risk to tenants. They should then carry out improvements to reduce the risks. Learn more here: www.communities.gov.uk/hhsrs
The Tenancy Deposit Scheme
The Tenants Deposit Scheme (TDS) government legislation came into effect in April 2007. All deposits taken for an Assured Shorthold Tenancy after that date must be covered by the scheme. The scheme is designed to encourage landlords and tenants to make a clear agreement at the start of the tenancy on the contents and condition of the property.
There are two types of tenancy deposit protection scheme available for landlords and letting agents (insurance-based schemes and custodial schemes). All schemes provide a free dispute resolution service. Learn more here: www.direct.gov.uk/en/TenancyDeposit/index.htm.
What Is An Assured Shorthold Tenancy?
The Assured Shorthold Tenancy is the default tenancy for most dwellings in England and Wales. It is a form of Assured tenancy with limited security of tenure, and an important class of residential tenancy in England and Wales. It was introduced by the Housing Act 1988. Assured Shorthold Tenancy agreements are normally arranged for a six month period, but can be agreed for a longer period, e.g. twelve months. This type of tenancy allows the tenant to remain in the property for the first six months, or initial fixed period.
An Assured Shorthold Tenancy entitles the landlord to a possession order immediately after the initial agreed period, which is usually for six months. The landlord is therefore able to evict the tenant after the initial fixed term without a legal reason. If this is the case and the landlord does not wish to renew the tenancy then they are obliged to give at least two months' notice to end the tenancy. However, if both the tenant and landlord are happy with the agreement another tenancy can be agreed, for a new fixed period.
An AST is suitable when:
- The tenant is an individual as opposed to a company
- The dwelling is the tenants main/principal home
- The dwelling must be let as separate accommodation
There are a number of important exclusions (e.g tenancies that cannot be assured or assured shorthold), generally known as “Common Law” or “Contractual Tenancies, which include:
- Lettings to companies
- Holiday lettings
- Tenancies granted by a resident landlord (A landlord living in the same property as the tenant)
- Lettings at no rent, low rent or high rent (Over £25,000 per annum)
- Being let with more than two acres of agricultural land or an agricultural tenancy
- Tenancies entered into before 15th January 1989, or a tenancy that was previously a protected tenancy
- Owned by the Crown or a government department
Contractual Tenancies
Contractual Tenancies run indefinitely from one period to the next. With this type of tenancy, you can seek possession at any time under any of the grounds for possession. A Contractual Tenancy Agreement may be used when:
- The annual rent of a property exceeds £25,000 or more
- Where the premises being let is self-contained accommodation in a property that has been converted from a single property to multiple units (e.g. where a house has been converted in to flats), where the landlord lives
- Where the property is not the tenants principal home
Energy Performance Certificates (EPC)
From October 2008 EPCs will be required whenever a building is built, sold or rented out. The certificate provides 'A' to 'G' ratings for the building, with 'A' being the most energy efficient and 'G' being the least, with the average up to now being 'D'. The certificate includes recommendations on ways to improve the home’s energy efficiency to save money and is valid for 10 years. EPCs will only be required for properties which are having a change of tenant, not for existing tenants or for extensions of an existing tenancy agreement. The EPC must be made available for viewing by any prospective tenant at the point of viewing or enquiring about the property.
Non-Domestic Energy Performance Certificates
From October 2008 all buildings including factories, offices, retail premises and public sector buildings - must have an EPC whenever the building is sold, built or rented. Public buildings in England and Wales (but not Scotland) also require a Display Energy Certificate showing actual energy use, and not just the theoretical energy rating.
There are three levels of building, Level 3, Level 4 and Level 5. The complexity and the services used by that building will determine which level it falls under.
They are as follows:
- Level 3 = Small buildings, with heating systems less than 100kw and cooling systems less than 12kw
- Level 4 = purpose built buildings, with heating systems greater than 100kw and cooling systems greater than 12kw
- Level 5 = Larger buildings that are complex in shape
Insurance
We are able to suggest a variety of insurance policies for both Landlords and Tenants, including the following:
Buildings Insurance
Covers the rebuilding of your property following loss or damage caused by fire, aircraft, smoke malicious persons (including tenants), accidental damage to bathroom fixtures and fittings and glass, lightening, explosion, collision or impact, falling trees and earthquake, theft (by forcible means), subsidence, riot/civil commotion, storm, flood, escape of water or oil leakage and loss of rent up to 20% of the sum insured following damage. Also includes property owner's liability.
Limited Contents Insurance
Where the property is let unfurnished limited contents cover is available; this generally provides cover for the following items: carpets, curtains, sun blinds, light fixtures and fittings and kitchen white goods. Cover can be on a new for old basis and also includes landlord's liability.
Contents Insurance
Cover can be on a new for old basis for loss or damage caused by fire, aircraft, smoke, malicious persons, lightening, explosion, impact, theft (by forceable means), subsidence, riot/civil commotion, storm, flood, escape of wayer or oil leakage, breakage of mirrors or glass in funature, replacement of lock following theft of keys and loss of rent up to a given percentage of the sum insured following damage. This can also include landlord's liability.
Legal Expenses
You may be unable to collect the rent, your tenants may damage or remove your personal posessions, or they may cause a nuisance to your neighbours. All these problems can be resolved by legal action but this is expensive. You can get cover to include all of your legal expenses up to a set figure and even with no policy excess to pay.
Rent Guarantee
This policy provide total peace of mind for Landlords. Cover includes the rent you are expecting from your property until vacant posession is obtained for up to twelve months (excluding the first month's loss rent). Additionally, cover includes 50% of the rent for up to three months after possession is obtained whilst a new tenant is found. All related legal expenses are included.
Investment
With typical returns of up to 10% achievable on capital investment in residential property to let in much of the UK, the buy-to-let market provides a highly efficient long-term investment medium.
Pre-Purchase Guidance
Our considerable local experience in this field, together with out independant status, means that we are able to priovide practical and imparcial advice on such matters as the type of property and the area that you should consider, and also on a choice of lenders to approach to suit your circumstances.
Post-Purchase Refurbishment
From minor works to complete refurbishment, we are able to assist in the process of preparing the property for letting in a variety of ways, including the arranging and supervising of redecoration and repairs, carpeting, curtaining and furnishings. Our relationship with local suppliers and trades people ensures competetive pricing and quality workmanship. Our fees for arranging and supervising refurbishment works are a minimum of 10% of the total expenditure.
There are many things to consider prior to letting out your property and the process can become complex and time consuming. As specialists, we understand the letting process and can manage your property giving you peace of mind and relieving you of the commitment of being a full-time landlord.
We hope that you will find the above information useful. If there are any aspects of which you are unsure, please ask us. We look forward to being of assistance to you in the letting and management of your property.
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