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Advice for landlords
letting their property  General
Information & Points to note before letting your property
This
information is given for general guidance only and should therefore not be relied
on. It has been prepared by an experienced letting agent operating in the UK market.
It is essential that your property be presented well for letting. It should
be well decorated, clean and tidy to attract a tenant who will pay a good rental.
Under the 1985 Landlord and Tenant Act, Landlords have a legal responsibility
to ensure that Tenants are “safe from harm”. This means ensuring that Landlords
provide housing that is fit for habitation.
A property available for rent, must be supplied and maintained to a good standard.
Landlords must ensure the structure, hot water and water supply, lighting heating
and ventilation is maintained throughout the tenancy.
HOW DO
I LET MY PROPERTY?
There are several ways to let a property:
-
Advertise
it yourself in the local paper -
Advertise
on the Internet -
Advertise
in local shops -
Instruct
a professional Letting Agent If
you are instructing an agent consider using one that is a member of one of the
following professional organisations: -
ARLA
(Association of Residential Letting Agents)
-
NALS
(National Approved Letting scheme) 
-
NAEA
(National Association of Estate Agents) 
-
RICS
(Royal Intuition of Chartered Surveyors)
If
the letting goes wrong or there are problems receiving your rent, in many cases
if you use an agent that belongs to one of these organisations you can take the
issue up with the relevant governing body. Tenants often feel more confident renting
a property through an agent that belongs to a professional association. 
EPCs Energy Performance Certificates for rental property in England and Wales
start 1st October 2008...more information here at our property site.....
PRESENTING THE PROPERTY – decoration , furnishing, equipment to leave
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DECORATION - The quality of the interior decoration may substantially affect
the level of rental achieved.
Although it is not possible to redecorate your own personal home prior to letting
it if you are leaving for work overseas for example, it is essential that you
follow these guidelines if you are planning on letting an investment property.
It is advisable to follow them as far as possible if you are a returning owner
occupier.
Carpets and walls should be neutral. Whites, creams and
light pastel shades and these make a cleaner, fresher impression.
Paint
finishes are much easier to maintain than wallpaper. Good quality curtains and
carpets should be provided as they will have much longer life normally which is
most important if you are planning on letting for several years. Magnolia has
now become very dated and should be avoided if possible.
Kitchens should
be well equipped (see follow on section WHAT TO LEAVE) and bathrooms
should have high quality modern fittings, including a power shower whenever possible
(overseas visitors will usually expect one), good lighting and tiled flooring.
If you are refitting your bathrooms, white fittings never really go out of date.
Wood flooring is now very popular and gives the illusion of more space. Kitchens
should be tiled or have vinyl covering and not carpets unless they form part of
a kitchen /diner and the carpet is then suitable for the dining area.
If you are installing wood flooring in an apartment, please check with the freeholder
if it is a new development, as they are not permitted in some developments because
of the noise factor.
Lighting is very important for any let. Downlight
spotlights in Kitchens, bathrooms and other areas help. In furnished properties,
consider providing some table lamps. Don’t forget adequate lighting outdoors (often
with the use of sensors) to have as a safety feature for the property.
If you have bought a property to let, make sure there are toilet roll holders,
towel rails, mirror, bathroom cabinets or shelves in the bathroom.
PRESENTATION
TO A TENANT
If you are showing a prospective Tenant around, the following guidelines should
be noted: -
The
property is clean, there are no dirty washing up items about and if there are
any unpleasant odours, open some windows and let some fresh air circulate.
-
Bathroom areas should be clean and leave the toilet seat down. Beds should be
covered.· -
Although
you might be concerned about people walking on your carpet, some tenants are not
too happy about being asked to take off their shoes. -
Lighting
– even in summer we can have some very dull days, so turn the lights on first.
Lights make a property welcoming. If the viewing takes place after dark, make
sure your front door outside light is switched on. · -
Curtains
– If the curtains are pulled over during the day, pull them back. Just like ensuring
sufficient artificial lighting, natural lighting is equally as important and can
give the impression of more space particularly in smaller properties and rooms.
-
Garden
areas - Make sure the garden is tidy and inviting DEFINITIONS
of “FURNISHED, PART FURNISHED or UNFURNISHED LETS” -
UNFURNISHED
Let with curtains, carpets and kitchen equipment – Electrical goods. (N.B. some
electrical goods e.g. washing machines can be rented) -
PART
FURNISHED Let with the above plus occasional furniture – some beds, settee
or dining table and chairs etc. -
FULLY
FURNISHED Let with the above, but including all furniture, china, crockery.
& Cutlery etc. Do not leave the property with too much furniture as the appearance
could be cluttered and rooms appear smaller than they are. 
WHAT
TO LEAVE – Basic Requirements for a Furnished Letting Unless
a let is in central London, Bedding, towels, TV’s, Videos are not included. However,
you might be requested to allow the tenant to erect a satellite dish. It
is recommended that all items of sentimental or real value be removed as even
the most careful of tenants have accidents. If you are a returning owner occupier
It is important if personal possessions are stored in a secure area or with friends
or family.
If you are storing the items at the property, the storage
area should be secured and keys left at the managing agents offices or with a
relative or friend who can be easily contacted. Emergency
access should not be denied to a tenant in respect of gas/electricity/water mains
and storage cisterns. N.B. be careful how you store your belongings. Attic areas
can become very hot in the summer and garages can become very damp in the winter.
Furnishings –Each room must have adequate furniture for the Tenants’
need and we list below the minimum for an average 4 bedroom property. Some wall
pictures can be included. -
Lounge
– Three piece suite, or two sofas, or four lounge chairs, coffee table. Occasional
light. -
Dining
Room – Dining table, chairs sideboard/dresser/storage. -
Kitchen
– Modern cooker, fridge/freezer or separate units, washing machine, tumble dryer,
(in an apartment consider a washer/dryer) Microwave – not essential, but becoming
more popular. -
Kitchen
equipment – Crockery, cutlery, glasses, cooking knives, chopping board, saucepans,
frying pan, wok, electric kettle, toaster, coffee/tea mugs/cups/saucers, colander,
baking tins, bottle and can opener etc. -
Bedrooms
– Beds (complying to Fire and Furnishing regulations), with mattress protectors,
wardrobe, bedside table, bedside lights, chair, chest of drawers/dressing table,
adequate storage for the number of occupants. -
Bathroom/shower
room – shaver point, wall cabinet, toilet roll holder and towel rail.
General
Household equipment-Vacuum cleaner and tools, brushes, dustpan, ironing board
& iron. -
Garden
equipment- Unless you are providing a gardening service, you should supply a lawn
mower (that is capable of cutting long grass if the tenant misses some cuts),
spade, fork, rake, shear, hoe, wheelbarrow, ladder etc. You might also like to
consider supplying garden furniture. -
General:
Make sure there are sufficient TV& telephone sockets around the property Most
tenants usually have a computer these days and require Internet access.
WHAT
TYPE OF PROPERTY IS SUITABLE FOR LETTING ?
Almost all types of property
are letable, provided they are in good condition and well presented.
particularly
those: -
close
to good rail and road communications -
If
there is a large garden, it is maintained -
The
rental price is suitable to market requirements -
There
is parking with the property or very close by -
There
are not too many landlord restrictions HOW
MUCH RENT CAN I ASK ?
Many factors determine the rental value of
a property. These include the size of the rooms (a two bedroom apartment with
two good size bedrooms will command a higher rent than one with an average size
bedroom and a box room size bedroom – this type of property will attract two individuals
sharing who want similar size accommodation).
The standard of the décor and furnishing, the location of the property and current
market conditions. Usually there is no difference in rental levels these days
if the property is let furnished or unfurnished, but there may be a bigger demand
for a furnished one/two bedroom apartment opposed to an unfurnished comparable.
On the other hand executive corporate family lets usually look for very good six
four/five bedroom, three reception, two/three bathroom houses with a double garage
that are unfurnished.
HOW LONG DOES IT TAKE TO FIND A TENANT ?
This will depend very much on the market conditions at the time the property
is being marketed and if the property is on the market at a realistic price. It
can also depend on the type of property and the time of year. Top
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HOW LONG IS THE TENANCY FOR ?
This will vary according to a Tenant’s
requirements. In general most agreements are drawn up for a minimum of six months
or one year with a break clause for the tenant to give two months notice at any
time after four months. (Please note that you will not normally have a break clause
in an agreement and will have to add it yourself or your agent will have to do
this before the start of the letting.)
Most corporate type lets will require a property to be available for a minimum
of three years, but the tenant will want the right to break the agreement. For
this type of letting it is usual to have a rent agreed for the first year with
an option to extend for years two and three at a slightly higher rent usually
linked to inflation. You should also ensure that a modern easy to understand English
language tenancy agreement is used.
HOW IS RENT PAID?
If you use an Agent for a management or rent collection service, the rent will
be paid to the agent and then passed over to the Landlord less the agent’s commission
each month (or agreed period).
If you are using an Agent’s Tenant introduction service the rent should be directly
paid into your bank account. You should check your bank statement a few days after
the rent has been paid to make sure that it is in your account.
If there are problems receiving it then, you can rectify the situation quickly
by contacting the Tenant or agent.
RESTRICTIONS ON TENANTS
You can put restrictions on the tenancy, e.g. no pets, non smokers etc, but
the more restrictions you impose the harder it can be to let a property.
More and more executive families working in this country want to have a pet –
cat or dog and with the opening up of pet travel from the Passport for Pets programme,
a landlord should consider this issue very seriously.
Larger deposits can be taken, clauses put into the tenancy agreement stating all
the carpets and curtains (and furniture if provided) has to be professionally
cleaned at the end of a tenancy. DEPOSITS N.B.
From April 2007 under the 2004 Housing Act
Landlords will no longer be able to hold deposits with AST tenancies unless they
have them registered with a specific scheme. See
Tenancy Deposit Scheme Do
you own more than Two Rental Properties - Want to save money? Click on Logo Below
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of Page
INVENTORY Many
disputes with tenants often involve the condition of the property at the end of
the tenancy. It is well worth considering using an Independent Inventory Agent
to carry out this work, as they are specialists in this field.
Your letting agent may have an “in-house” inventory service or use an Independent
company. If you are letting the property privately, you can still find Inventory
companies listed in the local telephone directories.
The inventory should show a list of all the contents of the property including
curtains, carpets, kitchen appliances and will also state the state and condition
of the walls, windows, light switches etc.
It will be checked in with the Tenant at the beginning of the tenancy and at the
end of the tenancy checked out. At the check out the Inventory Agent will assess
the state and condition and prepare a schedule of dilapidations (damage, breakages)
if any taking into account fair wear and tear, the length of the tenancy and the
state and condition of the property when it was let.
If you are letting
unfurnished, it is still advisable to have a professional inventory prepared and
checked in and checked out. Inventory fees vary according to the size of a property,
whether it is unfurnished or fully furnished.
If you leave numerous items that have to be included in the inventory e.g. books
in a bookcase, the contents of a garage and workshop, then obviously the costs
of preparation will be much higher.
Most letting Agents will not arbitrate in any dispute between Landlord and Tenant
and the final decision remains with the professional inventory agent or a professional
letting association.
TRANSFER OF SERVICES Including Council
Tax Normally
your tenant will be responsible for the payment of Council Tax, Water, Electricity,
Gas, TV Licence, oil and Telephone. Between lets you will be responsible for these
(except TV Licence if unoccupied).
The agent or owner should write to the local authority and service providers advising
of the change of occupier. British Telecom quite often will not transfer a service
without the current subscriber agreeing to this.
Please note the telephone number at a property is for a current subscriber and
if you want to retain your existing number, you must make arrangements with BT
or Telephone service provider to hold your number in “suspense”. Water
- Water Industry Act 1991 – Information about water meters for home movers.
Since
1989, most new homes built in England and Wales have had a water meter installed.
In addition to this, many water company customers previously on a non-metered
supply have opted for water meter. Since
1st April 2002 companies like Three Valleys Water Plc in England have
been installing water meters when a property is sold. From the 1st
January 2005 this company will also be installing meters when a property is rented
out. The
government act covering this is under S1444B of the Water Industry Act 1991.
TENANT REFERENCING (see
also Credit Scoring & Credit References)
Most Agents will take up Credit Search references using Letsure or Homelet
Referencing. or similar types of company. Provided the references are satisfactory
you can for an annual premium subscribe to their Legal Protection insurance plan.
If the tenancy requires a Guarantor, the credit search company will advise and
referencing will have to be taken up on that person. Company lets will also follow
the same procedure. Letting
to Non EU Nationals in the UK
Landlords
/ property owners or their agents should make sure that they obtain a photocopy
of the prospective tenants passport and work permit/visa. If the applicant only
has three months remaining on the visa and they are looking for a six month let,
then there could be problems with them being able to remain at the property.
Several
of the credit search companies when they take up references on an EU resident
or non EU resident also ask for a copy of an utility bill (mobile phone bill etc)
from the applicants last known address as “proof of residency”.
PROPERTY MANUAL
From experience the Landlord will normally know
how equipment operates, where the stopcock is, when the dustmen call and where
the nearest school and pub are located.
You should prepare a ring binder that gives notes about the working of the property,
the location of meters and the property’s postcode etc. You should also include
photocopies of instruction manuals for the washing machine, cooker, vacuum cleaner,
water softener etc.
INSURANCE & LEGAL EXPENSES INSURANCE
You must advise your insurance
company that the property is being let. This should cover the buildings policy
and contents. You should also check to ensure you have sufficient public liability
cover. 
Many people who let
unfurnished do not insure their contents. Contents insurance for let property
is really not expensive. If for example you had a burst pipe in the attic and
water damage penetrated through to the kitchen. The buildings policy would normally
cover replacing the ceilings, decoration, but not your carpets or curtains that
were damaged as a result of this accident.
A tenant is normally responsible for insuring his/her contents and this will not
cover your belongings. It is possible to take out insurance to cover the legal
costs of pursuing claims against the tenant arising from a breech of the terms
of the tenancy, including the costs of obtaining repossession.
When you take out
a Buildings Policy the main insured perils should include Fire - Lightening -
Aircraft - Explosion - Smoke - Impact - Burst pipes or leakage of oil - Storm
or flood - Subsidence damage - Theft- Malicious damage. (Some policies will give
the option of malicious damage caused by the tenants - a valuable option for let
properties). Most policies will compensate you for loss of rent following damage
from one of the above perils if the property is uninhabitable. Check this out
with your block management agent if you have an apartment and don't arrange the
buildings insurance yourself.
It should be noted however, that damage to property caused by tenants who are
classed as DSS asylum seekers, refugees or students will no longer be covered
under some buildings insurance for blocks of apartments and you should seek professional
advice. 
If your flat is let
and you have not taken out additional insurance, you will be held personally liable
in the event of damage to property, including neighbouring properties, howsoever
caused, including all costs incurred by the Management Company, solicitors, neighbours
etc.
SEE
Security Tips for Property Owners
For further information on insurance services for Landlords go to
jml-property-insurance.co.uk Because of the Regulations on the sales
of Landlords & Tenants insurance policies no advice can be given and you must
contact Endsleigh, Homelet or any other provider for advice on policies. Do
you own more than one Rental Property - Want to save money? Click on Logo Below
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of Page
INCOME TAX
The income derived from letting your property is subject
to UK tax. The position can vary depending if you are a UK resident or a UK non-resident.
It is money very well spent to use an accountant.
Income earned
in the UK is subject to taxation under self-assessment. This means that the landlords
will receive their income from an agent less any bills the agent has settled on
their behalf.
Any tax implications will be between the landlord and Inland Revenue. If you are
a UK resident you will receive the usual personal allowances applicable to your
circumstances, which may be offset against all your taxable income.
Income from letting a property is subject to income tax at the basic rate on profit.
Profit is assessed after deducting expenses from the rent received; examples are:
a) Any water, electricity, gas charges paid by the Landlord.
b) Insurance
Premiums related to the cover of the buildings, contents and loss of rent.
c) Repairs – but not improvements.
d) Letting Agents, accountants and legal
fees- including VAT.
e) Mortgage interest payments.
f) Maintenance contractors
e.g. gardening contractors
If you are going abroad, it is essential
that you apply for your FICO (Financial Intermediaries and Claims Office) number
through the Inland Revenue as quickly as possible. The Inland Revenue has further
information and you can download information including a FICO application form
at
inlandrevenue.gov.uk/cnr/nr_landlords.htm. Please
note until an Agent is informed by the Inland Revenue of a FICO Approval number
that they are not able to pay over the rent without holding back an amount for
tax. If the certificate is not received or approved, they will have to retain
money for tax and pay this over to the Inland Revenue on a quarterly basis.
They would also make an administration charge to cover their time in carrying
out this work. If you are collecting the rent direct, your tenant should withhold
a percentage to cover any tax liability, so it is essential that a) You obtain
a FICO approval and b) you employ the services of an accountant.
If an Agent is acting on a Tenant introduction basis and you are going overseas
you must still obtain a FICO approval number as otherwise the tenant living at
the property would be responsible for the paying of tax and most tenants would
not want this inconvenience. The Letting Agent would also be duty bound to advise
them of the situation. Overseas
Properties - UK TAX If
you invest in overseas property you must declare the profits in the UK. Unless
you are classified as non-UK domiciled, you are taxed in the UK on all your income
and gains wherever these profits arise. If you let your overseas property you
should inform the tax authorities where the property is located, which will sometime
mean completing a tax return in that country. The
income and expenses from your foreign property must be listed on the foreign income
pages of UK tax return.Any foreign tax you pay on that income can normally be
off-set against the UK Tax duew where a double taxation agreement exists between
the UK and the country where the property is situated. Remember other countries
have different rules for tax deductible expenses. Take professional help. Resident
Landlords If
you rent out part of your own home this can also count as residential lettings,
but you can take advantage of the 'Rent a Room' scheme instead. This lets you
get tax-free income of up to £4,250 from letting rooms in your home. More
information 
LEASEHOLD PROPERTY/ CONSENTS TO LET
If you have a mortgage,
you should gain consent from the lender prior to lending. If you do not you will
be breaking the mortgage covenant. Most lenders will give consent provided they
have seen and approved a tenancy agreement and that satisfactory references are
taken up on a given tenant.
In the case of a Leasehold Property, a consent
to underlet may be required from the Freeholder under the terms of the head lease.
You may also have to pay for a consent to underlet a leasehold property. You might
be required to provide a copy of the Lease to be incorporated into any tenancy
agreement that is prepared. Top
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LEGAL WORK
Most Agents will prepare the appropriate Tenancy agreement
is written in modern day user friendly legally approved language. If you are letting
the property yourself you may consider using the services of a Solicitor.
TENANT’S DEPOSITS
When an Agent is rent collecting or managing
a property they will normally hold the deposit in separate clients account. You
should find out if your agent is a member of a professional body like ARLA, NALS
etc and maintains separate clients accounts. On average a rental equivalent to
six weeks rent should be held.
Sometimes a tenant will stop the final payment of rent and suggest that you have
the deposit instead. In the event of this happening when there is only a months
deposit held, there will be no money for end of stay dilapidations or cleaning
etc.
There will be occasions, e.g. some Military and Corporate lets where the company
or country will guarantee the deposit and will not therefore physically pay a
deposit. Remember if you hold the deposit, it is not your money and should be
kept in separate bank account.
REDIRECTED POST
You should consider paying The post Office to redirect your post for you. The
Post Office charges for this service, but you should receive your post quickly.
Although a tenant might initially send on the post to the agents or Landlord,
this can delay matters.
Apart from arranging the redirection via the post office, you should also leave
your forwarding address in the Property Manual with a note requesting them to
cross through your address and forward it on. (It does not cost anything in the
UK, but it will if the item has to be sent overseas). You should also write to
your bank, Credit Card Company, insurance, mortgage company, friends and give
them your new address
KEYS
You should leave sufficient
number of keys for the number of people renting the property. Some Agents will
retain a set at their offices. You should label up all the keys at the property.
e.g. garage door, French windows, front door, windows etc.
ALARM SYSTEMS
If you have an alarm system make the Tenants (and Agents if applicable) have
the appropriate access codes. It should be clearly defined who actually pays for
alarm maintenance – Landlord or Tenant. Top
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SAFETY GAS, ELECTRIC, FIRE & FURNISHINGS, SMOKE DETECTORS See
Press Report Apri 2006
Gas: The regulations were introduced
to ensure that appliances are properly installed and maintained to avoid the risks
of carbon monoxide poisoning. At the commencement of a letting, a Landlord is
required by law to hold a current Gas Safety Record.
The tenant must be provided with a copy of the record prior to occupation. The
gas safety record must be renewed annually and must cover all gas appliances in
the property. An authorised CORGI registered engineer can carry out the Inspection.
N.B. A standard annual service would not be sufficient to comply with the requirements
of the regulations -
Electricity:
At present there is no specific statutory requirement to prove that the appliances
supplied are regularly checked or tested; the Landlord does have a duty of care.
Dangerous wiring, flexes, exposed cable and damaged sockets must all be replaced.
Appliances must be fitted with a sleeved insulated plug. See
also FACT FILE - Part "P" Building Regulations (Electrical Safety in Dwellings)
Click
Here -
Furniture
& Furnishings: From the 1st January 1997 any furniture supplied as part
of a new letting that commenced after 1st March 1993 must comply with the regulations.
They do not apply to Antique furniture made before 1950, carpets, curtains, pillowcases,
duvets, bed linen or loose cover for mattresses. Generally they apply to all other
furniture that has a cover fabric and filling including cushions, padded headboards,
loose covers, beds and pillows etc. If your items do not comply and have appropriate
safety labels, they should be removed from the property. The independent inventory
agent will normally note down the compliance on the inventory. -
Smoke
Detectors: These are compulsory in all new homes built since June 1992 and
these have to be fitted via a mains feed on each floor. There are no specific
statutory regulations stating these have to be put in older buildings (unless
it is a registered House in multiple Occupation), but it is advisable to fit a
battery detector in stairways and halls/landings. You might also like to consider
providing a fire extinguisher and blanket for the kitchen. CLEANING
& GARDENING
Before a Tenant moves into your property that it
is professionally cleaned throughout. If you have not had your carpets cleaned
for a while, they must be professionally cleaned and you might like to consider
having a protective coating put on them by the cleaning contractor. Windows should
be clean inside and out.
You should make sure that your chimneys and
flues have been swept. In many tenancy agreements, a clause states that tenants
should do this during the tenancy, but they must also be done prior to the tenancy
starting.
It is often normal practice to have a clause in the tenancy
agreement stating the gardens have to be maintained in a satisfactory condition.
Over the last twenty years, the lifestyle of a tenant has changed. You do get
some enthusiastic gardeners, but the majority of tenants are working long hours
and when it comes to a weekend want to pursue other activities rather than gardening.
We would suggest whenever possible: -
a)
You have a gardener to attend to hedges, shrubs and trees at least twice a year
or -
b) Include this together with regular maintenance of lawns and flowerbeds. A tenant
who knows that they will not have to look after a garden will be happier to rent
your property. EMPTY
PROPERTY
You will find that most Letting Agents will not be responsible
for a property between lets and that you have to agree a fee for checking the
property. You should also check the terms of your property insurance regarding
this issue.
During the winter months if the property is empty that either
you have the water system drained down professionally or leave the heating running.
INVESTMENT PROPERTY – BUY TO LET - See
also our Pages Buy
to Let Uk - Buy
to Let in Europe
Buying residential property can be an attractive
investment. Many people are now purchasing property as part of their pension arrangements.
Investors should be aware that it is best managed as a medium or long term proposition.
There are a host of factors that may influence the type of property that is acquired
as well as the geographical area that is chosen. It is always best to seek professional
advice in each instance before deciding on a property and we would be happy to
assist you and you take into consideration the following: -
Length
of lease, if leasehold -
Service
charge and consents to let from freeholder -
Location
-
Floor
level if you are purchasing an apartment -
Property
type – 4 bedroom property should have at least two bathrooms etc -
Amount
to be spent on the property – New bathroom & Kitchen, decoration levels
WHICH
LETTING SERVICE DO YOU WANT FROM YOUR AGENT?
Many UK agents offer
three types of service: -
TENANT
INTRODUCTION -
RENT
COLLECTION -
FULL
MANAGEMENT SERVICE TENANT
INTRODUCTION: The Agents find a tenant, take up credit search references,
prepare the tenancy agreement *, arrange the check in of the tenant * and advise
the gas, electricity & water companies & local council of change of occupier.
After that the rental is paid directly to the Landlord and all management is carried
out by the Landlord The letting fee is payable once the tenant has been installed.
RENT COLLECTION: The Agents find a tenant, take up credit search references,
prepare the tenancy agreement *, arrange the check in of the tenant * and advise
the gas, electricity & water companies & local council of change of occupier.
The Agent collects the rental and pays this over to the Landlord each month less
their fees. The Landlord carries out all management.
FULL MANAGEMENT:
The Agents find a tenant, take up credit search references, prepare the tenancy
agreement *, arrange the check in of the tenant * and advise the gas, electricity
& water companies & local council of change of occupier. They collect
the rental and pay this over to the Landlord each month less their fees &
manage the property. This involves dealing with enquiries from the tenant, arranging
routine maintenance e.g. washing machine repairs, plumbing repairs etc and visiting
the property approximately three times a year for a property inspection. If major
works are requested by the Landlord, e.g. decoration, new carpets, insurance claim
work etc, they would usually make an additional charge.
*Please note
additional charges are normally payable for Tenancy Agreement preparation &
independent Inventory Agents charges.
Stamp Duty on Tenancy Agreements:
From the 1st December 2003, Stamp Duty has been abolished and replaced with Stamp
Duty Land Tax. The starting point for this is £125,000. This means that the vast
majority of Tenancy Agreements will not attract SDLT and this will be the responsibility
of the tenant. Top
of Page LETTING
A ROOM IN YOUR OWN PROPERTY - Where you live More
information
Many
people have decided to let out a room in their own property as a way of helping
with morgage costs . HM Revenue and Customs allows the owner occupier a tax-free
income of up to £4,250 from letting rooms in your home. A
lodger can occupy a single room or an entire floor of your home. However, the
scheme does not apply if your home is converted into separate flats that you rent
out. In this case you will need to declare your rental income to HM Revenue &
Customs (HMRC) and pay tax in the normal way. Nor does the scheme apply if you
let unfurnished accommodation in your home. You
do not have to be a home owner and can choose to take advantage of the Rent a
Room scheme, regardless of whether you are a home owner or are renting your home.
However, if you are renting, you should check whether your lease allows you to
take in a lodger. If
you're a mortgage payer it's best to check whether taking in a lodger is within
your mortgage lender's and insurer's terms and conditions. Tenancy
Agreements for being a Resident Landlord Once
you have found a tenant it is best to make out a tenancy agreement with them.
You do not need to fill in any special forms, but it is best that you make an
agreement in writing. This will help you if there are any problems later. There
are some basics which should be included in your agreement
- How much
notice you must give the tenant
- How
much notice the tenant should give to you
-
How long is the tenancy is for
- Which
rooms are being let
- Which
facilities are being shared
-
How much the rent will be paid
- Does
the rent include bills? e.g electricity, gas, telephone, internet, water, Council
tax and even food.
-
When the rent is due
-
How should rent be paid (cash, cheque, standing order, direct debit etc.)
-
Is the deposit payable when the tenant moves in and when it will be returned and
how it will be held
Both
you and the tenant should sign the agreement. TAX:
If you rent out part of your own home this can also count as residential lettings,
but you can take advantage of the 'Rent a Room' scheme instead. This lets you
get tax-free income of up to £4,250 from letting rooms in your home. More
information Top
of Page
CHECKLIST
Listed
below is a summary of points that need to be addressed prior to the tenancy starting:
-
MORTGAGE
Get permission to let from your Mortgage Lender -
LEASEHOLD
PROPERTY Obtain consent from the Freeholder if you are a leaseholder
-
INSURANCE
Review Buildings and Contents insurance You can do this via Letsure or Homelet
by going to
www.jml-property-insurance.co.uk -
MAIL
Arrange for the redirection of mail with the Post Office -
PROPERTY
INSTRUCTIONS Prepare a Property Manual with instructions for appliances, location
of stop cocks and an information guide for Tenants – local schools, neighbours,
shops etc -
GAS
SAFETY CHECK Organise a gas safety check & appropriate certificate
-
ELECTRICAL
CHECK Make sure that all appliances are compliant and that wiring and sockets
are safe. -
CHIMNEY
/ FLUES Make sure that these have been swept prior to letting
-
SMOKE
DETECTORS Smoke & CO detectors are in working order -
FIRE
& FURNISHING Only furniture & soft furnishings that meet the current
regulation should remain -
STOP
COCKS Label up internal stop cocks -
LPG
GAS BOTTLES Make sure these are full at the tenancy commencement
-
OIL
TANKS Make sure that these are full at the tenancy start -
SEPTIC
TANKS Ensure that these are emptied at the start of the tenancy
-
KEYS
Label up any keys you leave at the property or bring to our offices indicating
the doors/windows they are for. -
PERSONAL
ITEMS Ensure that all personal and valuable items are suitably securely stored
or removed -
TELEPHONE
Ensure that there is a line installed and that you have requested a closing account
-
CONTRACTORS
Provide the agent or Tenant with a full list of contractors (if we are rent collecting
or offering an introduction and you want the tenant to arrange for his/her own
repairs) -
DECORATION
Make sure the property is in good decorative condition -
GARDEN
Ensure the garden is suitably maintained and if a gardener is being provided with
the let make arrangements for this -
PROPERTY
CLEANING The property should be professionally cleaned prior to the let Provided
the instruction is in writing the agents can arrange this. -
UTILITIES
& COUNCIL TAX You should advise the service companies
of the new tenants names and take the gas & electric meter readings(and water
if on meter) and write to the companies and local authority. ©jmlpropertyservices
February 2004 SEE
ALSO:Information
for landlords letting or thinking of letting a House in Multiple Occupation (HMO)
- New Rules for Landlords - Anti-Social Behaviour Act (Scotland) 2004
-
Click Here for
further information
Housing
Act 2004 - Chapter
34 -Click Here
Download
our PDF guide How to Present Your Home for letting -
Click Here New
Tenant moving into your property? Download our PDF "Welcome to your new home"
letter - Click
Here See
also Landlord
Insurance Article by Philip Suter and Problems
with Accepting Housing Benefit in England and Wales Article by Philip Suter
Click
on logo for Homelet Specialist Landlord Insurance - Instant Online
Quote 
Click
on logo for Letsure Landlords Household Insurance - Instant Online Quote 
Looking
for a Buy to let Mortgage? 
Specialist
Buy to Let, Residential Investment & Commercial Mortgage Brokers
Thinking
about selling your property? Click
Here
Landlord
Fined £42,000 after Girl's Death (jml
Property News April 2006) A
landlord has been fined a total of £42,000 at Winchester Crown Court for breaches
of gas safety legislation. The prosecution followed a Health and Safety Executive
(HSE) investigation into the death of Katie Overton on 29 March 2003. Katie, aged
11, died from carbon monoxide poisoning at a rented house in Oxford Road, Southsea,
Hampshire. At the time of her death, Katie's parents were renting the property.
The carbon monoxide fumes came from a gas boiler which was found to be in a poor
condition. The boiler had not been serviced since 1996 and, although subjected
to a number of gas safety checks during the time the house had been let to tenants,
these checks had not been carried out within the required 12 month intervals.
On 11 April 2006, The Landlord pleaded guilty at Andover Magistrates' Court to
failing to ensure that the boiler was maintained in a safe condition (contrary
to Regulation 36(2)(a) of the Gas Safety (Installation and Use) Regulations 1998)
and also to three charges of not having gas safety checks completed within 12
month intervals (contrary to Regulation 36(3) (a). The case was referred to Winchester
Crown Court for sentencing. He was fined £20,000 for the failure to maintain the
boiler and a total of £22,000 three failures to have a gas safety check carried
out within the required period of time.
He was also ordered to pay £18,000 towards prosecution costs. Speaking after the
case, Mike Harrison, Principle Inspector of Health and Safety, said: "Katie's
death was a tragic reminder of what can happen when gas boilers aren't maintained
properly. Landlords of rented properties should remember that, not only must gas
appliances be subject to annual safety checks; they must also be maintained in
a safe condition. This means that gas boilers should be serviced in accordance
with manufacturers' instructions, usually annually, by a CORGI registered installer
as well having annual gas safety checks carried out on them." April
2006 Top
of Page | 
