lettings

a brief guide for landlords

 

what should I do first?

If the property in question is subject to a mortgage, you will need to obtain permission from the lender that the property can be let. Consent must also be obtained from the insurers of the building itself. If the property is leasehold, you will also need consent to the letting from the Freeholder or superior landlord.

what type of tenancy would be used?

The Housing Act 1988 introduced two new forms of tenancies replacing those under the Rent Act 1977. These have been further amended by the Housing Act 1996 and are called Assured and Assured Shorthold Tenancies.Most residential properties are now let on Assured Shorthold Tenancies which has two main advantages:1. The landlord has the right to recover possession of the property from the tenant providing the appropriate Notices have been correctly served and the original fixed term of the tenancy has expired.2. The rent is mutually agreed between tenant and landlord. The tenant must therefore pay the agreed rent, however, the tenant would have a right to refer the rent to the Rent Assessment Committee if it is felt that the rent paid is higher than the general level of rent of similar properties in the immediate area.We can prepare an Assured Shorthold Tenancy for any fixed term up to three years. If a term of over three years is required, this would need to be by Deed with the assistance of your solicitor.

how can I be sure that I get the best tenant?

All landlords would like to let at the highest possible rent to a tenant of the highest callibre. In reality, this cannot always be guaranteed, however, in order to minimise the financial risk, applicants are fully referenced through a professional referencing agency who, at an additional cost, will back up their recommendations with a rent guarantee policy.We also have contacts with large companies, based both locally and nationally who are regularly looking for rented accommodation for their employees. These often prove to be exceptional tenants and sometimes the rent for the whole term is paid in advance.

What are my obligations as a landlord?

Under the Landlord and Tenant Act 1995, the landlord is responsible for the maintenance and repair of the structure of the property, together with maintenance of any heating system, drainage, water and sanitary fittings. In order to minimise the expense of unexpected repairs such as the failure and repair of the central heating system, it may be worthwhile taking out service and maintenance plans, the cost of which are tax deductable.Under the Gas Safety (Installation and Use) Regulation 1994, you are responsible for having all gas appliances within the property which are included in the tenancy tested on an annual basis by a CORGI registered Gas installer and an appropriate certificate MUST be held by yourself and a copy issued to the tenant. A test must also be undertaken prior to the commencement of the tenancy, however, given that the certificate is only valid for 12 months, it is recommended that the test is not carried out until a few days before the tenancy begins.It is also a requirement that the electrical installation is safe. It is thoroughly recommended that an NICEIC approved electrician checks the installation who will also issue an appropriate certificate.If the property is to be let furnished, all upholstered items must comply with the Furniture and Furnishings (Fire) (Safety) Regulations 1988.

and the tenant. what are their obligations?

The tenant is responsible for the payment of rent in accordance with the tenancy agreement. In addition, the tenant would be responsible for Council Tax charges and the cost of gas, electricity, water, telephone etc. The tenant must also look after the property in a proper manner in accordance with the terms of the agreement. Under normal circumstances, we would obtain a deposit ( or bond ) from the tenant at the beginning of the tenancy. This would be forwarded to the landlord and subsequently held within an appropriate Govenment authorised tenancy deposit scheme, held against dilapidation’s to the property. At the end of the tenancy this would normally be refunded to the tenant or retained either wholly or partly, in the event of damage to the property or its contents. Although it is fully recommended that the tenant takes out an appropriate insurance policy to cover his own and indeed your belongings, it is most worthwhile if a separate landlords contents policy is purchased in order to safeguard your interest.

regaining possession of the property

Although the initial term of an Assured Shorthold tenancy is for a defined period, the tenant has a right to remain resident at the property until a proper notice has been served usually under Section 21 of the Housing Act 1988. By statute, the period of notice a landlord must give a tenant is two months, however, the period of notice would not begin until the beginning of a ‘period’ within the tenancy (the date on which the rent is due) For example, if a tenancy ran from the 6^th of the month, and notice was served on the 10^th of the month, this would not become effective until the 6^th of the following month.

taxation

If you are resident in the UK you will be liable to pay income tax at the appropriate rate on rent received, less expenses such as agents fees, insurance and repairs to the property.  Different rules apply to landlords not resident in the UK. You are strongly advised to take advice in respect of taxation issues from a qualified accountant. 

fees

Our fees are on a letting basis only. We would advertise the property to let, conduct viewings where appropriate and obtain a detailed reference report on the prospective tenant prior to taking your further instructions, after which an Assured Shorthold Tenancy Agreement would be drawn up and signed on your behalf as your agent. The first months rent would be taken from the tenant together with the agreed deposit.

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