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Guide for Landlords
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. For brief details of a subject click on a link below, or scroll down the page. If you require further advice or assistance with any matter, please do not hesitate to contact us:
Mortgage
If your property is mortgaged, you should obtain your mortgagee's written consent to the letting. They may require additional clauses in the tenancy agreement of which you must inform us.
Leaseholds
If you are a leaseholder, you should check the terms of your lease, and obtain the necessary written consent before letting.
Insurance
You should ensure that you are suitably covered for letting under both your buildings and contents insurance. Failure to inform your insurers may invalidate your policies. As Introducer Appointed representatives for Homelet we can provide leaflets on Insurance policies if required.
Council tax
Council tax is the responsibility of the occupier. You should inform your local collection office that you are leaving the property. During vacant periods the charge reverts to the owner. When unoccupied but furnished, the charge is 50% of the normal rate. When unoccupied and 'substantially' unfurnished, there is no charge for the first six months, and thereafter a charge of 50% of the normal rate.
The Inventory
It is most important that a photographic 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 to the landlord, we will if requested arrange for a member of staff to prepare an inventory and schedule of condition, at a cost to be quoted.
Income tax
When the landlord is resident in the UK, it is entirely his responsibility to inform the Inland Revenue of rental income received, and to pay any tax due. However, where the landlord is resident outside the UK during a tenancy, under new rules effective from 6 April 1996, unless an exemption certificate is held, we as landlord's agents are obliged to retain and forward to the Inland Revenue on a quarterly basis, an amount equal to the basic rate of income tax from rental received, less certain expenses. An application form for exemption from such deductions is available from this Agency, and further information may be obtained from the Inland Revenue.
Important regulations
The following safety requirements are the responsibility of the owner (the landlord), and where we are to manage the property, they are also ours as agents. Therefore to protect all interests we ensure full compliance with the appropriate regulations, at the owner's expense.
Gas Appliances & Equipment
Under the Gas Safety (Installation and Use) Regulations 1994 (amended 1996) and some other regulations, all gas appliances in tenanted premises must be checked for safety at intervals of not more than 12 months, by a Gas Safe registered gas engineer, and a safety certificate issued. Records must be kept of the dates of inspections, of defects identified, and of any remedial action taken.
Electrical Appliances & Equipment
Under the Electrical Equipment (Safety) Regulations 1994, the Plugs & Sockets etc. (Safety) Regulations 1994 and some other regulations, electrical installations and equipment in tenanted premises must be safe. Although (unlike gas) no safety certificate is legally required, and therefore it may be adequate to perform a visual check of electrical equipment, fittings and leads, it is recommended that a qualified electrician be engaged for this purpose.
Energy Performance Certificates
From 1 October 2008, landlords offering property for rent are required by law to provide prospective tenants with an EPC for that property.
The EPC will have to be provided free, either when or before any written information about the property is provided to prospective tenants, or a viewing is conducted.
A new certificate will not be required on each new let, since in the case of rental property, EPCs will be valid for ten years from the date of issue. Enforcement Agencies have the power to issue penalty notices. When a person receives a penalty notice and pays the fine for failure to provide an EPC, they must still provide the EPC. This means that if, following the fine they still failed to provide a certificate, another penalty notice could be issued. If a landlord rented out a property without an EPC and then later sold the property without an EPC, this would be two separate breaches. The penalty charge specified for the second breach is £200, but be aware that this could be levied at £200 per day for each day that the property is being marketed without the paperwork in place.
GRANTS
Landlords wishing to make energy saving improvements to their properties either before or after obtaining an EPC are offered some help in the form of Government grants and other schemes. Information about these can be found on the following websites:
www.hmrc.gov/budget2005/revbn37.htm
The Landlords Energy Saving Allowance originally introduced in 2004, now covers loft, floor, cavity wall and solid wall insulation, draught proofing and hot water system insulation. Expenditure on these items would otherwise be treated as capital expenditure, which means it could not be deducted from rental income to arrive at a taxable item. However, the LESA allows a spend of up to £1,500 per property on such items as a straight deduction from rental profits. The allowance is to run until 2015. The 'per property' rule, rather than the former 'per building' restriction, means that for a house converted into three flats, an allowance of £4,500 can be claimed.
We can arrange to have these Certificates done on your behalf at a cost of £70 per Certificate. You can of course arrange to have the Certificates done yourself, in which case we would need to have a copy once it has been done.
Furniture & Furnishings
The Furniture and Furnishings (Fire) (Safety) Regulations 1988 (amended 1989, 1993 & 1996) provide that specified items supplied in the course of letting property must meet minimum fire resistant standards. The regulations apply to all upholstered furniture, and beds, headboards and mattresses, sofa-beds, futons and other convertibles, nursery furniture, garden furniture suitable for use in a dwelling, scatter cushions, pillows, and non-original covers for furniture. They do not apply to antique furniture or furniture made before 1950, bed clothes including duvets, loose covers for mattresses, pillowcases, curtains, carpets or sleeping bags. Therefore all relevant items as above must be checked for compliance, and non-compliant items removed from the premises. In practice, most (but not all) items which comply must have a suitable permanent label attached. Items purchased since 1.3.90 from a reputable supplier are also likely to comply.
General Product Safety
The General Product Safety Regulations 1994 specify that any product supplied in the course of a commercial activity must be safe. In the case of letting, this would include both the structure of the building and its contents. Recommended action is to check for obvious danger signs - leaning walls, broken glass, sharp edges etc., and also to leave operating manuals or other written instructions about high risk items, such as hot surfaces, electric lawnmowers, etc. for the tenant.
Preparing the property for letting
We have found from experience that a good relationship with tenants is the key to a smooth-running tenancy. As Property Managers the relationship part is our job, but it is important that the tenants should feel comfortable in their temporary home, and that they are receiving value for their money. This is your job. Our policy of offering a service of quality and care therefore extends to our tenant applicants too, and we are pleased to recommend properties to rent which conform to certain minimum standards. Quality properties attract quality tenants.
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 landlord's expense unless misuse can be established.
Appliances
Similarly, appliances such as washing machine, fridge freezer, cooker, dishwasher etc. should be in usable condition. Repairs and maintenance are at the landlord's expense unless misuse can be established.
Decorations
Interior decorations should be in good condition, and preferably plain, light and neutral.
Furnishings
It is recommended that you leave only minimum furnishings, and these should be of reasonable quality. It is preferable that items to be left are in the property during viewings. If you are letting unfurnished, we recommend that the property contains carpets, curtains, and a cooker.
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 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 maintenance visits by our regular gardener.
Cleaning
At the commencement of a tenancy the property must be in a thoroughly clean condition, and at the end of each tenancy it is the tenant's responsibility to leave the property in similar condition. Where they fail to do so, cleaning should be arranged at their expense.
Information for the tenant
It is helpful if you leave information for the tenant on operating the central heating and hot water system, washing machine and alarm system, situation of stop taps, the day refuse is collected etc.
Keys
You should provide one set of keys for each tenant. Where we are Managing the property we can arrange to have duplicates cut as required.