Landlords Guide
A GUIDE FOR LANDLORDS
We charge 9.6% of annual rent for a let only service and a total of 15.6% of annual rent for letting and management. All fees are inclusive of VAT.
We outline on this page a basic, quick guide and overview for Landlords, to explain what is typically involved with letting property. If you need any further information or advice, please don’t hesitate to contact us.
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Lettings Only Service - This Includes
- Rental Valuation & Inspection
- Advice to landlords on furnishings, health and safety issues and any maintenance recommendations.
- Advertising & Marketing your property on our website, UK's leading property portals, emailing and sms message details to all potential applicants along with newspaper advertising where appropriate.
- We accompany all viewings
- Extensive referencing of tenants who wish to rent your property, via a professional referencing company using an extensive verification check on each and every applicant. A range of enhanced financial security policies are also open for landlords if applicable.
- Preparation of the tenancy agreement/s.
- Collection of initial rent and deposit.
Full Management
The complete service includes (all the above) plus:
- A professionally prepared detailed inventory of contents and condition.
- Arranging maintenance.
- Dealing with day to day tenant problems that may arise.
- Transfer of utility accounts, electric, gas, council tax and water.
- Closing inspection and check out at end of tenancy.
- Organising return of deposit subject to the property being returned in a satisfactory condition. In the event of a dispute acting on the landlord’s behalf to submit necessary paperwork and following all required protocol for the deposit protection service
- Proactively looking to find suitable new tenants prior to expiry of the existing tenancy.
Inventories
We strongly advise our Landlords to carry out a full inventory for each separate tenancy. The purpose of an inventory is to record the condition of the property and its contents.
Under the terms of the tenancy agreement, the tenant is required to return the property and contents at the end of the tenancy in the same condition as they were at the commencement, fair wear and tear accepted. It is almost impossible to ascertain whether damage was caused during a tenancy without a proper inventory signed by all relevant parties.
If instructed we will arrange a professional inventory and check in on your behalf which will include video footage of the property, the cost of which is borne by the landlord. The tenants are responsible for paying for the check-out.
Consent To Let
If the landlord has a mortgage, it is normal for mortgagees to require notification of any proposed lettings and the landlord should seek their initial consent. In the case of leasehold premises the consent of the Head Lessee of Freeholder will be required. The landlord should also advise his insurance company of the proposal to let the property as this could either invalidate the insurance altogether or increase the premiums. It may be necessary to obtain insurance appropriate for a let property. You should obtain written documentation of these consents prior to letting.
Utilities
The tenant will be responsible for the payment of gas, electricity, water, telephone, council tax and television licence (unless otherwise agreed).
As the landlord you are still responsible for the payment of service charges and ground rent in leasehold properties and buildings insurance on Freehold properties.
Tax
Under the Taxation of income from Land (Non Residents) Regulations 1995, the rent receiving agent (or where there is no agent, the tenant) will be required to deduct an amount equivalent to Basic Rate Tax from the rent (after taking deductible expenses paid by the agent into account) and pay the balance to the Inland Revenue each quarter.
However, the overseas landlord can apply to the Inland Revenue for exemption from this requirement. Provided the landlords tax history is good and tax affairs are up to date, the overseas landlord will be issued with a certificate that will be sent to his rent receiving agent. This will authorise the agent to pay the rent to you with no tax deducted.
We can provide you with an NRL1 form which you must complete and send to the Inland Revenue. Neither your rent receiving agent nor your tax advisor can file this application for you - it must be done by you.
Failure to return this form in time may result in the exemption certificate not being issued before the payments become due. We would have no alternative but to make the required tax deduction before paying the rents to you.
If you are unsure as to how the above will affect you, you would be advised to speak to an accountant or professional tax advisor.
Tenancy Agreements
Most tenancies are classed as Assured Shorthold Tenancies. Under the Housing Act 1998 (as amended) landlords have more rights to possession than with tenancies commencing prior to the Acts and procedures for possession are now quicker and simpler (provided the process is carried out correctly).
There is no minimum period for an Assured Shorthold Tenancy; however we recommend that the tenancy is for not less than six months.
Most tenancies are drawn up for a period of twelve months and some have break clauses. A break clause allows either party to terminate the agreement with two months notice after an initial period of four months the notice may be served. We will be happy to discuss the pros and cons of different time periods with you.
Legal Matters
There are the various legal aspects of letting property including safety regulations, tenancy agreements and possession of which we have practical experience. We would be happy to discuss these matters with you and if necessary, to put you in touch with legal professionals who can assist you.
