1. Tenant Selection
We carry out thorough checks on all prospective tenants before recommending them to you. We obtain and check detailed information about the prospective tenant including employment, banking, previous landlord and credit references. The tenant selection process is very thorough and over the years this has led us to have a very good tenant payment record. Subject to satisfactory responses the property can be included in the Rent Protection option.
Tenants normally pay their rent on time but occasionally a tenant may be ill for a long time or become unemployed. These or a variety of other situations can result in the tenant having financial difficulties. The Rent Protection Policy covers the Landlord against non-payment of rent for 6 months and also pays the legal fees of obtaining possession, should that become necessary.
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2. Tenancy Agreements
A tenancy agreement is a legally binding contract between the landlord and the people renting the property and contains the conditions and responsibilities of both parties. Our tenancy agreements are written to meet the
specific
needs of each owner and are regularly updated to take into account changes in legislation, decisions of court cases and our own experiences. We will provide the Tenancy Agreements and appropriate Statutory Notices with copies, if necessary, to help you to obtain the necessary approvals from your mortgage lender.
There is not a minimum period for which a property can be let out but the usual period of tenancy is 6 months which can then be extended or renewed.
A longer period can be agreed but a landlord has better security in a shorter term let.
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3. Legislation
When you let your home you will have various obligations which are laid down in law. These concern in particular
a) Gas Safety Regulations.
b) Electrical Equipment (Safety) Regulations.
c) The Furniture and Furnishings (Fire) (Safety) Regulations
We will advise on the need for tests and can arrange for these to be done. Obtaining a CORGI gas safety certificate for gas boiler, gas fire and gas cooker can typically cost between £50 and £85 dependant on the number of appliances involved.
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4. Consent to Letting
If you have a mortgage on your property the lender will normally require details of the proposed Tenancy in order to consent to the letting. In the case of leasehold properties (for example if you own a flat) you will need the Landlord’s or management company’s consent.
Some lenders may impose conditions and want to see the form of contract we intend to use. Policies vary from lender to lender but, if you can show that the property will be professionally managed, permission will normally be granted.
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5. Insurance
You will be responsible for insuring the buildings and your own contents and your insurance company must be advised that the property is being let otherwise any pre-existing cover may not be valid.
Some insurance companies may not agree to cover letting or may do so only at an increased premium, especially for Landlords contents. We are able to arrange cover, at very competitive rates, with a policy specifically designed for letting situations giving cover for buildings, landlord’s contents and malicious or accidental damage by the tenant.
A quote at very competitive rates can be given on request.
The Tenants are responsible for insuring their own contents.
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6. Services and Utilities
Electricity, gas, water rates and Council Tax costs are usually the responsibility of the Tenant. We will arrange for the transfer of these services on the day the tenancy starts and ends. Telephone and Cable companies will not take occupancy amendments from Agents so you will have to contact them direct. If the property is empty between tenancies the responsibility for payment of these bills reverts back to the landlord.
If the property is leasehold you will remain contracturally responsible for the ground rent and service charges levied by the freeholder or Management Company so we suggest you maintain payment of these charges.
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7. Inventory and Schedule of Condition
You should remove any items that have sentimental value as even the most careful tenants have accidents. We will prepare a brief inventory of the items remaining in the property (even if it is being let with only carpets and curtains) and a schedule of condition on a room by room basis. These will be checked through and signed by the tenant when the property is handed over.
You should bear in mind that due to everyday wear and tear you cannot expect a property to be in the same condition at the end of a letting as it was before you let it, no matter how well the property is looked after.
The more information and instructions you can give the tenants and us the better (manuals or instructions about equipment in the property are not only useful but are now a legal requirement). We suggest you draw up a simple information guide to the house giving handy day to day facts such as the day the dustbins are emptied, names of the neighbours, details of any window cleaner you might use etc.
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8. Deposits
At the start of the tenancy, apart from the first months rent, the tenant also pays a deposit of a sum in excess of one months rent.
Handling of deposits is now statutorily regulated. We are approved and regulated by The Dispute Service to hold tenants deposits whether we are managing the property or not.
Deductions from the deposit can only be made with the tenants agreement but there is an arbitration procedure in cases where a dispute arises. Return of the deposit or reporting of a dispute is strictly controlled by timescales laid down in the regulations.
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9. Rent
Rent is due in advance on the monthly anniversary date and is usually paid to us by standing order.
Once we are in cleared funds we will usually pay the balance rent direct into a bank account. The statement is sent by email where possible but can be posted.
We have an arrears chasing procedure but unless there is a Rent Protection Policy in place the costs of any court action lie with the Landlord.
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10. Inspections
We employ Property Inspectors who carry out quarterly inspections. They check that the property is being looked after to a suitable standard and advise if any general maintenance is required. These are not full surveys, merely a walk round to ensure that general living standards are satisfactory. We ask tenants to let us know about any problems they find with the property.
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11. Repairs and Maintenance
The Landlord is responsible for repairs and maintenance of the structure, storm damage and failure of any appliances.
Repairs reported to us are reported to the landlord in the first instance.
You may wish to do the repairs yourself or through your own nominated contractor and, if you let us know, this can be arranged.
We have various tradesmen that we use, all of whom are suitably qualified and insured, and therefore we can arrange repairs quickly and efficiently. Any costs invoiced to us will be deducted from the next rental statement sent to you.
If the property is let on a long-term basis, you may ask us to arrange and supervise works which do not come within day to day repairs such as redecoration, new drains, installation of heating or double glazing,
refitting of kitchen or bathroom
. We will be happy to do this, subject to a fee that will be quoted at the time.
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12. Income Tax
Although income obtained from letting a property must be declared to the Inland Revenue, the level of any tax payable depends on each Landlord’s individual circumstances. Certain costs can be set against the income but we would recommend that a specialist tax adviser be appointed. We can assist with this if required.
In recent years special rules have been introduced relating to overseas landlords who can apply for an exemption certificate. This does not mean you will not have to pay tax, but it does mean we do not have to deduct it from the rent received. If we do not receive this certificate, we are obliged to deduct tax from the rent. We can supply the application form for this exemption certificate.
Landlord Services