Q. What
are the advantages of letting my property?
There are several advantages to letting your
property:
- Generating income whilst retaining your
investment
- Income towards property costs
- No council tax, water rates, gas or electricity
bills whilst the property is let
- An empty property can increase insurance
costs
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Q. Why
do I need an Agent?
There is nothing to stop a Landlord letting
his property without the assistance of an Agent. However, there are
many legal requirements that a Landlord has to fulfil and failure
to comply may result in criminal prosecution. Also our vetting procedure
of all prospective tenants, which includes a credit search through
a reference agency, reduces the possibility of letting to an 'unsuitable'
tenant allowing you to make the right choice of tenant.
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Q.
What are my outgoings?
Usually your outgoings would be:
- Mortgage repayment
- Building Insurance and Contents Insurance
(if applicable)
- Legal Expenses Insurance (as desired)
- Repairs to property and contents - unless
caused by tenant
- If property Leasehold - ground rent and service
charges
- Managing agents fees
- When property empty - utilities and services
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Q.
Will renting my property affect my mortgage?
You are required to obtain permission from your
lender before letting your property. Failure to obtain permission may
result in a breach of your agreement.
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Q.
Would I be required to tell my insurance company?
You are required to inform your insurance company
of your intention to let. Failure to do so could result in your insurance
being invalidated.
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Q.
Will I have to pay tax on the income generated from letting?
You will be liable to pay tax on any profit generated
from letting your property. The amount of tax payable will depend on your
circumstances. If you are resident overseas for more than six months in
any tax year you will be regarded as a non-resident landlord. The current
legislation requires us to deduct and pay over to the Inland Revenue tax
at the basic rate unless we are in receipt of an exemption from the Inland
Revenue. An exemption would be required in the names of each Landlord
should the property be owned jointly.
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Q.
If my property is leasehold, what do I do?
You must advise your managing agents or freeholders
as any change in the type of occupancy may affect the buildings insurance.
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Q.
As a Landlord do I have to provide any furniture or furnishings?
As there is very little difference between rental
values on furnished and unfurnished property we would normally suggest
a property is let unfurnished but with the benefit of carpets throughout
and/or curtains. Should a Landlord wish to let a property either part
or fully furnished there are specific Regulations which have to be complied
with in respect of the furniture supplied (See insert 'Landlords Safety
Regulations')
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Q.
Are there any Regulations governing gas and electric installations and
appliances?
It is a legal requirement to have the gas supply
and all gas appliances (whether portable or fixed) serviced every 12 months
by a CORGI registered gas fitter. There is currently a requirement with
regard to electrical appliances to ensure that all appliances are 'safe'
but it is not, as yet, a requirement to have electrical appliances checked
every 12 months. (See insert 'Landlords Safety Regulations') With regard
to smoke alarms, although smoke alarms have to be installed in new buildings
or conversions, it is strongly recommended that a Landlord install one
smoke alarm on each floor of the property.
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Q.
What are my responsibilities regarding repairs?
Under the Landlord and Tenant Act 1985 all Landlords
have a legal obligation to maintain the structure of the building, sanitation
and supply of services. Within the terms of the Tenancy Agreement should
an item require replacing or repairing through fair wear and tear a Landlord
would be expected to attend to this repair.
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Q.
What do I do if I want my property back?
Our Tenancy Agreement will usually be drawn up
for an initial fixed term period. Should a Landlord require possession
at the end of the fixed term then adequate notice must be given to us
in order for us to serve the relevant Notices to comply with the current
legislation. Notice to a tenant would be a minimum of 2 months.
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Q.
How much rent will I get for my property?
Economic factors of supply and demand, plus location,
accommodation and condition must be taken into account when appraising
a property with a view to letting. We provide a FREE
MARKET APPRAISAL based on our extensive knowledge of the market
place.
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Q.
What type of Tenancy Agreement is used?
In the majority of cases an Assured Shorthold Tenancy
will be used initially for a fixed period for residential lettings however,
we are also able to offer a Rental Agreement for commercial lettings.
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Q.
Who holds the deposit?
We, as Managing Agents, hold the deposit paid by
the tenant until the tenant vacates and a final inspection of the property
has been carried out.
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Q.
What is an Inventory/Schedule of Condition?
An Inventory/Schedule of Condition is used as a
yardstick by which the state of the property and its contents are judged
at the end of the tenancy.
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Q.
What happens when my property is empty?
You must advise your insurance company of any period
when your property is empty, either prior to a first letting or between
tenancies, in accordance with their requirements regarding empty property.
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Q.
Do you inspect the property whilst it is empty?
No - the property would normally only be 'seen'
whilst carrying out an accompanied viewing with a prospective tenant.
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Q.
How do you vet a prospective tenant?
All applicants go through a vetting procedure including
obtaining references from employers, present/previous landlord (if applicable)
and bankers. We also have the facility to carry out a Credit Search of
applicants.
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Q.
Can I stipulate certain criteria regarding tenants?
We never forget you are the owner of the property.
Whilst we are happy to take your instructions with regard to restrictions
on children, pets, smokers and other requirements you may have, we will
not permit discrimination on the grounds of race, colour, creed etc.
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Q.
What is the tenant responsible for paying?
In addition to the payment of rent the tenant takes
responsibility for the payment of Council tax, water rates, gas, electric
and telephone charges.
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Q.
Is a tenant required to maintain the garden?
The upkeep and maintenance of the garden is the
responsibility of the tenant. However, there are times when a Landlord
would prefer to arrange for a gardener to maintain the garden whilst the
property is tenanted. This cost can be incorporated in the rental value.
Obviously it is advisable to provide some equipment for maintaining your
garden.
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Q.
What if a tenant does not pay the rent?
Although we endeavour to ensure tenants are suitable
in every way there may be the odd occasion when a tenant falls into arrears.
Payment of rent is monitored through our Credit Control System. Should
a serious arrears problem arise there is an effective course of redress
through the Courts. Please note that should it be necessary to take legal
action, the cost of doing so is borne by the Landlord. To minimise any
loss in such a situation we are able to offer insurance to cover legal
expenses. (Details available on request)
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Q.
What if a tenant refuses to leave?
Following the service of notice on a tenant, should
they refuse to vacate the property, the matter will need to be settled
through the Courts. Please note that our fees and charges do not cover
issuing legal proceedings. You, as Landlord, will need to instruct your
own solicitor to act on your behalf.
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Updated 03/03/2005
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