The Property Centre Guide to Letting Your Property
Guide to Letting Your Property
Q. When should my property be put on the market?
A. It normally takes about 2-6 weeks to find and move in a suitable applicant for a property. Since October 2008 it became a legal requirement for all properties marketed for letting to have an Energy Performance Certificate. We can arrange this for you.
Q. Who do I need to advise that I would like to let my property?
A. You will need to advise your lender and if the property is leasehold you will need to check with the management company or your leasehold agreement to ascertain if there are any restrictive covenants which forbid letting. If they do agree you will need to check if there are any other restrictive covenants. You should also notify your Buildings & Contents insurers, who will advise you of the requirements to maintain your policy. You may need to change as some insurers will not insure tenanted properties or they may reduce the level of cover provided. We will ask one of our Financial Advisors to contact you in order to provide a quote.
Q. What happens if my tenant loses their job and cannot pay the rent?
A. Unfortunately, on occasions tenants circumstances change and they can no longer afford to pay the rent. You can protect yourself against loss of rent and legal costs and we can arrange cover for you through DAS. The cost varies according to the package provided:
- 6 month standard policy is £90.00 plus VAT with an excess of one month’s rent
- 6 month plus policy is £130.00 plus VAT without an excess payable
- 12 month standard policy is £150.00 plus VAT with an excess of one month’s rent
- 12 month plus policy is £180.00 plus VAT without an excess payable
If you choose our Full Management or Rent Collect service, we can offer the facility for you to pay monthly, subject to a 2% administration fee.
The policy provides as follows:-
- 24 Hour Helpline Services
- Repossession of the property should a tenant fail to vacate
- Cover for Property Damage
- Eviction of Squatters
- Rent Recovery
- Legal Defence
- Hotel Expenses
- Storage costs
It is advisable to retain enough funds to meet at least one mortgage payment as some companies apply a penalty for missed or late payments.
Q. To what standard do I need to leave the property?
A. Ensure the property is left in a good, clean condition and that the garden is neat and weed free.
Q. Do I need to redecorate?
A. Not everyone has the same taste, it is therefore recommended that the décor is neutral and that carpets are in good condition and neutral. Most tenants prefer vinyl or tiles on bathroom floors instead of carpet.
Q. Will I be liable to pay tax on the income?
A. Your rental income is liable to tax; whether you are a tax payer in the UK or not. If you are resident overseas, we will, as your Managing Agents, retain sufficient funds to meet tax liabilities, under the provision of the Taxes and Management Act 1970, unless you are able to provide us with a Tax Exemption Certificate. You will need to contact the Inland Revenue in order to obtain a NRL1 form (Non Resident Landlord). The basis of your assessment will be the gross rent received less a deduction for allowable expenses relating to your property during the tenancy i.e. insurance, water rates, repairs, Managing Agents fees etc.
We are unable to calculate your assessments with the Inland Revenue and recommend that you consult your own accountant or professional advisor as it may be possible for you to receive the rental income without the deduction of basic rate tax. Any excess held after the resolution of your tax liability will be returned - no interest will be paid on this money.
Q. Is it better to rent furnished or unfurnished?
A. There is a demand for both furnished and unfurnished accommodation and normally there is little or no difference in the rent that can be achieved. There is no difference from a legal point of view, although all soft furnishings have to comply with current safety regulations. It is usual to leave a cooker and either blinds or curtains. Any upholstered furniture must comply with the Furniture & Furnishings (Fire) (Safety) (Amendment) Regulations 1993 which sets the levels of fire resistance for domestic upholstered furniture.
Q. What is an Inventory & Schedule of Condition and why do I need one?
A. It is a description of the property detailing everything from the ceiling to the floor, including doors, light switches, colours of walls and carpets. It is a record of the condition of the property when the tenant takes up occupation. We will use the copy signed by them to check them out at the end of the tenancy and agree/confirm any dilapidation or damage charges as a result. The tenancy deposit protection scheme advises that unless something is detailed on the inventory then it does not exist and should there be a dispute at the end of the tenancy which has to go to adjudication they can only make a judgement on the evidence they are presented with. It is extremely important therefore that the inventory is detailed and accurate. We also support this with photographs.
Q. How is the deposit held?
A. A deposit is taken and held in respect of any breakages, damage or losses incurred during the tenancy period as a result of negligence on the part of the tenant. Unless specifically instructed, a deposit of the equivalent of one month’s rent plus £100 will be held by the Deposit Protection Scheme (DPS) (www.depositprotection.com) for the duration of the tenancy. (The deposit is forwarded to yourself for the Introduction Only Service – you must however ensure that it is registered with one of the Government approved schemes within 14 days of receipt. The penalty for not doing so could result in a fine, We can lodge the deposit on your behalf if required). This deposit is not liable for any taxation and will not accrue any interest. Subject to a final inspection being carried out, this deposit is refunded directly to the tenant, less any deductions.
Q. How are tenants selected?
A. When someone enquires about your property, we will ask enough questions to ascertain if the potential applicant matches your criteria. If they do, we will then arrange a viewing. This gives us the opportunity to ask for more detailed information. Once an application is made we will contact you before proceeding. We will then carry out a credit check to ensure they have a good credit history and will take up an employer’s reference to confirm salary, position and length of service. If they are currently renting we will obtain a Landlord’s reference.
Q. Who pays the Council Tax, Water Rates, Gas and Electricity and TV licence?
A. Unless specifically stated and instructed to the contrary (in writing) – the rental charge is exclusive of gas, electricity, water, television licence, telephone and council tax. You should be aware that the Water Act 2003 entitles the tenant to have a water meter installed, without permission, once they have occupied the property for longer than six months.
Q. Who informs the various utilities?
A. You should inform them that you are moving out and the tenants must inform them when they move in. We will retain a record of meter readings. You should advise them that we will be acting on your behalf as they will not deal with us otherwise.
Q. Will you forward my post?
A. We would recommend that you arrange for your mail to be re-directed as we cannot guarantee that tenants will forward it to us. We cannot accept liability for post which is lost or not redirected.
Q. How and when will I receive my rent?
A. We do a payment run as close to the 15th and last day of the month as possible and the payment should appear in your account within 3 to 4 working days. We will send you a statement detailing the income and expenditure.
Q. Why do I need to have an annual Gas Safety check done?
A. It became law in October 1994 to ensure that all gas appliances (boilers, cookers, fires and water heaters etc.) must be checked annually by British Gas or Corgi/Gas Safe registered (domestic) engineers. It is the Landlord’s ultimate responsibility to adhere to this regulation and to provide a Landlord’s Gas Safety Certificate. This must be available to us before the let can proceed and must then be done on a yearly basis. We will be happy to organise this on your behalf, upon receipt of your Terms of Engagement.
Q. Do I need to have an electric check done?
A. The Electrical Equipment (Safety) Regulations 1994 consolidate with amendments the Low Voltage Electrical Equipment (Safety) Regulations 1989. The 1989 regulations applied (with certain exceptions) to any electrical equipment designed or adapted for use with voltage (in the case of alternating current) of not less than 75 volts nor more than 1,000 volts. They required electrical equipment to be safe and constructed with good engineering practice. In brief, we strongly recommend electrical appliances are checked. It is a Landlords responsibility to ensure that the property and any portable appliances are safe for the tenants to use. This can only be determined by a qualified person. The requirements do extend to “consumer goods” supplied in the course of business, which would cover rented accommodation. We will be happy to organise this on your behalf, upon receipt of your Terms of Engagement.
Q. How many set of keys will you need?
A. Two sets of keys are to be available to your tenant on the day of occupation. Any ‘special’ keys i.e. window locks etc., should be left in the premises for the tenants use, please make sure you retain at least one full set of keys for yourself, including window keys. If we are to manage the property on your behalf, we need to hold an additional set of keys to allow easy access for property inspections, maintenance contractors and emergencies.
Q. Do I need to provide instruction manuals for appliances etc?
A. Yes, it is always advisable. If you don’t your tenant could cause damage to your appliance and you may not be able to hold them responsible if you don’t supply instructions. You have a responsibility to maintain the appliances in good working order unless you specifically opt out of this responsibility. You can download some instructions from www.instruction-manuals.co.uk.
Q. What if I want to give my tenant notice?
A. A Landlord is required to serve two months notice to the tenants to coincide with the end of the initial fixed term of tenancy or at the end of a period if the tenancy has rolled over into a statutory periodic tenancy. We must be advised in writing when you would like us to serve the notice otherwise the tenancy will continue. This needs to be served before the anniversary date of the tenancy.
Q. What do I need to do now?
A. We will need to take internal and external photographs of the property in order to market it. We will also need a set of keys in order to carry out viewings. You will need to sign and return one copy of our Terms of Engagement. If you do not have an EPC we can arrange this on your behalf. You will need to provide us with photographic proof of ID and proof of ownership. We will then start advertising your property immediately, upload the details onto all major property websites and contact our extensive mailing list.
