Landlords' Guide
This Landlords' Guide outlines some of the more important and most frequently asked about subjects concerning residential lettings as well as setting out our services and fee structure.

If there is anything within it that you are unsure of or if you require more details on any of the subjects covered in the following links, please do not hesitate to contact us.

General  Advice For Landlords
Safety
Tax on Rental Income
Law Relating to Residential Lettings
Preparing the Property for Letting
Our Services

 


General  Advice For Landlords

Mortgage
If the property is mortgaged, written consent should be obtained from the mortgagee. If they require any special clauses in the tenancy agreement we will need to be informed.

Insurance
You should ensure that you have suitable cover for both buildings and contents for letting. Failure to inform your insurers could invalidate your insurance.

We are agents for LetSure who offer a complete range of insurance products tailored specifically for the rental market. These products include: buildings, contents, owner/occupier and legal protection policies as well as the rent protection cover described below.

Rent Protection Insurance
Whilst we take every precaution to ensure that your interests are fully protected by comprehensively vetting and credit checking prospective tenants, even the most exemplary individual may be unable to pay the rent, perhaps due to redundancy, marital breakdown or illness.

Without a rental protection service, landlords may suffer loss of rental income and be liable for any legal costs incurred when a tenancy agreement is breached or possession becomes necessary. In your interests, we provide a unique rental protection service - LetSure Rent & Legal Protection.

Council Tax
It is the responsibility of the occupier to pay the council tax on a property. We will notify the local collection office when a property is let to a tenant. If the property is vacant for a period of time the responsibility reverts to the owner. If the property is unfurnished during the vacant period there is no charge for the first six months and a charge of 50% of the normal rate thereafter. If it is furnished the charge is 50% of the normal rate for the entire period it is vacant.

Water Rates
It is normally the responsibility of the occupier to pay water rates. We will notify the water company when the property is let to a tenant. If the property is vacant, the following rules apply:-

Inventory
To avoid misunderstanding or dispute it is important to prepare an inventory of all contents and furniture, along with a schedule of condition. If this is not done it is impossible for a landlord to prove any loss, damage or deterioration of the property or contents. Any items of high monetary, personal or sentimental value should be removed from the property prior to letting. Do not leave an excess of crockery, cutlery or any ornaments as listing these items could increase the time allotted in preparing the inventory. Should we take significantly longer in doing so, then we reserve the right to make an additional charge.

Furnished or Unfurnished?
Your property can be let on a furnished, part-furnished or unfurnished basis and we would be happy to advise on what would most appropriate for you. However, experience has shown that the demand, in the area that we cover, is higher for unfurnished properties.

With this, and the regulations outlined below in mind, we would normally advise that you let your property unfurnished.


Safety

Gas Safety (Installation and use) Regulations 1994
Under the above regulations, all gas appliances (e.g. boilers, fires, supply pipework etc) in let properties must be safety checked annually by a CORGI registered installer. Proof from the installer will be required by way of a CORGI landlord certificate.

Solid Fuel and Oil Appliances
Heating and cooking appliances fuelled by coal, smokeless fuels, wood and oil can be just as likely as gas appliances to cause carbon monoxide poisoning if they are poorly installed, faulty or incorrectly used. Therefore, we strongly recommend that any such appliances are checked by a competent engineer before a tenancy commences and at regular intervals thereafter and that any instruction books are left in the property. Chimneys should be swept at least once every year.

Electrical Equipment (Safety) Regulations 1994
The above regulations apply to new and second-hand appliances and installations supplied as part of a let property. The appliance must be safe, particularly when connected to the electricity supply system and be sufficiently well insulated to provide protection from an electric shock. To establish this criteria the appliance should be tested by an electrician who has the necessary test equipment to carry out portable appliance testing, and is NIC/EIC qualified.

Plugs and Sockets etc (Safety) Regulations 1994
Under the above regulations, all new and second-hand appliances which are supplied, including those in rented accommodation, must be fitted with an appropriately fixed and fitted plug. The plug must be of the ‘sleeved’ type i.e. the live and neutral pins must be partly encased in a plastic sleeve. The fuse must be of the correct rating for the appliance.
Permanent electrical installations, such as mains power wiring, sockets, lighting wiring, fittings and switches must be safe and checked on a regular basis by a competent person.

Fire Safety Regulations (Furniture and Furnishings)
If a property is let furnished or part-furnished the items supplied must meet minimum fire resistant standards. The regulations apply to beds, headboards, sofas, cushions, sofa-beds, nursery furniture and garden furniture suitable for use in a dwelling. The regulations do not apply to furniture produced before 1950, bed clothes, curtains or carpets. Those items that meet the regulations will carry a label. If you are in any doubt about the compliance of any item, it should be removed from the property.

Smoke Alarms
The Smoke Detection Act 1991 made it mandatory to fit electric mains-powered smoke alarms in new residential buildings. It is not currently mandatory to fit smoke alarms in existing buildings (except houses in multiple occupation) however, we do advise fitting smoke alarms as it could be seen as part of your ‘duty of care’. If alarms are fitted the following points should be noted:-

Tax on Rental Income

Income Tax Considerations
Where the landlord is a U.K. resident it is entirely his responsibility to notify the Inland Revenue of income received and to pay any tax due.

Income Tax is payable on lettings whether the Landlord lives in the U.K. or not. Expenses are usually only allowed if incurred during the letting period but there are provisions for claiming expenses on an un-let property.

For all lettings, furnished or unfurnished, the Landlord can claim:-

In addition, for furnished lettings you may also claim:-

The above tax advice is intended as a guide only. In view of the unique nature of each individuals tax affairs, if you are in any doubt as to your potential tax liability when letting your property, we recommend that you consult a tax advisor.

We can supply the names of specialists in this field if required.

Overseas Landlords
If the landlord is not resident in the U.K. during the term of the tenancy, it is the agent's responsibility to retain and forward an amount equal to the basic rate of income tax from the rent received to the Inland Revenue, unless an exemption certificate is supplied.

Applications can be made to the Inland Revenue to receive UK rental income with no tax deducted, under the Non-Resident Landlords Scheme. Forms are available from us.
Law Relating to Residential Lettings
It is essential that all residential lettings of furnished or unfurnished property are legally sound in view of the complexities of the laws relating to the renting of property.
Re-possession of your property can only be assured if the following provisos have been met:-

If the tenant breaks his contract with you, or refuses to vacate the property at the end of the tenancy, it is important to understand that legal repossession can only be obtained through the Courts. The use of intimidation or harassment against a tenant in the hope of gaining repossession is a criminal offence.

 

 

Preparing the Property for Letting

We have found that the key to a smooth-running tenancy is to establish a good relationship with the tenants. As Property Managers that relationship is our job. However, it is important that the tenants feel comfortable in their new home and that they are receiving value for money. This is where you can play an important role in preparing the property to a standard that we would be pleased to recommend to prospective tenants.

Remember - Quality properties attract quality tenants.


General Condition
The property should be in good repair with regard to wiring, plumbing, heating and any appliances. If possible arrange suitable maintenance contracts. Repairs and maintenance are at the landlord's expense unless misuse can be established.

Decor
The interior and exterior should be in good decorative order and preferably plain, light and neutral.

Personal items
Personal possessions and any items of monetary or sentimental value should be removed from the property. All cupboards and storage space should be left clear for tenant's own use.

Gardens
Gardens should be left tidy and rubbish-free, with any lawns cut. It is the tenants responsibility to maintain the gardens to a reasonable standard. However, if the garden is particularly large or valuable to you we would recommend employing the services of a regular gardener.

Cleaning
At the start of a tenancy the property should be in a thoroughly clean condition. At the end of the tenancy it is the tenant's responsibility to leave the property in a similar condition. If they fail to do this, cleaning should be arranged at their expense.

Mail Forwarding
It is strongly recommended that when vacating the property you arrange mail re-direction with the Post Office. This can be done over the counter at a minimal cost. If we do continue to receive mail from the tenants, we will, of course forward it at standard Post Office rates, but there can sometimes be a delay.

Information for tenants
It is always helpful if you can leave any information for the tenant on operating the central heating system and any appliances in the property, e.g. washing machine, alarm system. Also any local information, e.g. refuse collection day.

 

 

Our Services

Full Management Service
This service is available for those Landlords who wish us to completely manage the property and have the minimum of involvement themselves.

The service includes:


Management Service For Overseas Landlords
As listed above but with the additional responsibility to collect Income Tax on behalf of the Inland Revenue (unless an exemption certificate is obtained) together with the caretaking of the property in the continued absence of the Landlord, particularly between tenancies.

Fees for the above management services are taken as a percentage of each month's rent.

 

Let Only Service
This service is available for those Landlords who wish to manage the day to day running of the tenancy, but would like us to find, vet and sign suitable tenants up on a lease appropriate to the Landlord's needs, together with the accompanying documentation.

The service includes:


A single letting fee is charged for the above let only service.