Welcome to our interactive lettings brochure. We hope this will guide landlords through the process of letting. You will also find forms you can fill in online. Please do not hesitate to contact us with further queries.
PROPERTY LETTING AND MANAGEMENT AGENTS
BROCHURE INDEX
Letting is our business : An Introduction to our Letting Services 1. Landlords: What you need to know 2. Landlords: Frequently Asked Questions 3. Landlord Information Sheet (Full Management) 4. Landlord Information Sheet (Let Only) 5. Landlord Payment Guide 6. Example Rental Statement 7. Non-Resident Landlords of UK properties 8. Landlord Tax Guide 9. Contact details 10.
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LETTING IS OUR BUSINESS
WHY LET WITH WHITES?
If you are thinking of letting your property, here are some of the reasons why you should choose Whites.
Valuations by lettings experts
We are a professional Independent Estate agent with a specialist Lettings Department
Without obligation or charge, we are happy to visit your property and advise you on the legal and practical aspects of letting. We will guide you through your obligations as a landlord with regard to gas safety certificates, electrical testing, smoke/CO alarms, furniture, fire regulations and the
We are a well established, independent company with a great reputation, over 60 years of experience and extensive local knowledge . We are regulated by the Royal Institute of Chartered Surveyors (RICS). Prominently situated offices Our offices are centrally located on a busy street with a high footfall, ensuring more tenants come to us. We are open six days a week and are readily available to talk to. As Guild of Property Professionals members, we are connected to another 700 independent estate agents nationwide. We also have an office in London, so you can quickly market your property to a London and UK- wide audience.
statutory Tenancy Deposit Scheme. As part of our service, we can then:
• Agree on the type of tenant you are looking for, take photographs (including drone shots where needed)and details to advertise the property in local newspapers and on the web. • Arrange accompanied viewings, assess prospective tenants and take up references, including a credit reference check. • Prepare a legally binding Assured Shorthold Tenancy Agreement at the start of the tenancy and serve Statutory Notices as required. • Arrange for an Inventory and Schedule of Condition with a full set of colour photographs. • Collect first month’s rent and dilapidations deposit, set up a standing order for the monthly payment of rent and produce monthly statements. • Carry out regular property inspections. • Deal with routine repairs and day-to-day maintenance and arrange for annual servicing of gas and electrical appliances. • Re-advertise the property before the end of the tenancy, to help avoid periods of time when the property is not let. We will also carry out a detailed move-out inspection.
We are a progressive company with traditional values
We pride ourselves in giving each client a bespoke and personal service. We find that both tenants and landlords tend to come back to us time and again.
High level of service
We offer competitive terms for Managed Tenants and Tenant Find Only services with the backing of experience from dedicated professionals. We will only let your property to tenants personally interviewed by a senior staff member and thoroughly vetted through our referencing process.
OUR MARKETING
We have a tried and tested marketing strategy that guarantees the maximum circulation of your property, ensuring your home stands out from the crowd both locally and nationwide! Our marketing is fresh and forward-thinking. This includes advertising on Rightmove, On the Market, NetHousePrices, and social media. In addition, with Whites, you will have your dedicated property page, which can be shared easily through social media. We can organise virtual tours of your property, helping to weed out prospective tenants so that only those serious about a property undertake a viewing. Specialist Advertising If you require a more tailored approach, our in-house marketing manager, Verity, will work closely with you to identify the best approach to take in order to reach your target audience. She will consider whether local or national media, editorials, and other online and social activities will maximise your property’s exposure. We are also able to take drone shots when needed. As a Rightmove member , we will ensure your property is advertised on the UK’s number-one • Last year, people spent more than 16.3 billion minutes searching for properties Rightmove. We are proud to have been awarded exclusive Membership of The Guild of Property Professionals for Salisbury are dedicated to maintaining the highest standards of professionalism and customer service. property website. Rightmove’s statistics speak volumes: • There were over 2.3 billion visits to Rightmove in 2022 We have a London Office in Park Lane, showcasing available properties. This is particularly important, allowing us to market to people moving from big cities to leafier locations like Salisbury and the surrounding villages. Being a Guild member also means we can access additional innovative marketing tools. This helps us to make sure your property stands out from the crowd!
MEET THE LETTINGS TEAM
We have an experienced, courteous, and proficient Lettings Team to ensure we achieve the best service for you.
Marcus Shepherd MRICS Managing Director
Jo Shepherd MRICS Finance Director
Ludo Glanville Assistant Director
Diane Cook
Finance Account Manager
Jeremy Sainsbury Inventory Manager
Mark Court
Samantha Jack Property Manager
Carly Padfield Property Manager
Glenda Privett Administration Manager
Maintenance Manager
Magnus Cornelius-Ried Junior Property Manager
June Millott
Ellie Trevis
Verity Eastman Marketing Manager
Sales/Lettings Administrator Lettings Administrator
47 Castle Street, Salisbury SP1 3SP lettings-management@hwwhite.co.uk www.hwwhite.co.uk 01722 336422
WHAT YOU NEED TO KNOW
Lettings and Property Management
This booklet details a summary of services available from Whites And an overview of the responsibilities of the Landlord. If, however, you have any further questions that we have not answered here, then please do not hesitate to contact us by emailing lettings-management@hwwhite.co.uk or calling 01722 336 422 .
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FULL MANAGEMENT
• Visiting your property to assess the rental value, discuss the type of tenant you require, and, for example, whether you would allow children, pets, smokers, or sharers. • Advising on any pre-let works required in order to achieve the best result in terms of rent and tenant standards, arranging and overseeing any authorised work. • Advising on the legal requirements for gas safety, furnishings and electrical checks, the condition of the house and the benefits of professional cleaning (including carpets) to present the house at its best. • We can provide information on insurance products f or a let property, including building and contents cover, loss of rent, legal fees protection, etc. Please ask for further details. OUR FULL MANAGEMENT SERVICES INCLUDE:
Under a Full Management Agreement, we undertake to find tenants and manage your property on a day-to-day basis. The fee for a Full Management service is 15% (inc VAT) of the monthly rent. A set-up fee of £480 (inc VAT) is applicable at the commencement of the tenancy in respect of preparation of legal documentation, conducting viewings, advertising, to let board and website listings, etc. Inventories are typically £90 (inc VAT) plus £18 per bedroom depending on the size of the property and level of furnishings. These sums will be deducted from the first month’s rent. Upon instruction, we require a cheque for £200 on Account to use towards the cost of any outgoings on your property prior to a tenant signing a tenancy agreement, e.g. boiler service or electrical test. This money is shown on your frst statement of account after the property has been let. More detailed terms and conditions can be found in the Full Management Agency Agreement (example enclosed).
• Taking internal and external photographs of the property and placing full details on our
company website, Rightmove, in the local newspaper and on display in our prominently positioned offices in Castle Street.
• Conducting accompanied viewings by appointment, interviewing and assessing prospective tenants, contacting you with our recommendations, and agreeing on a tenancy and move-in date, subject to references and contract. • Taking up references on prospective tenants, including employer, current landlord, bank and credit reference check. We will only let the property to tenants who have been personally interviewed by a senior member of staff and thoroughly vetted through our referencing process. • Drawing up an Assured Shorthold Tenancy Agreement, for the terms agreed and arranging for this to be e-signed by the tenants and for us to sign on your behalf unless requested otherwise. • Preparing a detailed inventory of fixtures and fittings and record of the condition of the property which includes a complete set of colour photographs and arranging for the tenant to agree and sign it. • Arranging for all utilities to be transferred into the tenants’ names and paying the final bills on your behalf where appropriate. Ensuring that a landlord’s gas safety certificate is in place for all properties with gas appliances. • Arranging for the new tenants to collect keys for the property once the legal documentation is complete and upon receipt of one month’s rent in advance and a security deposit. • Holding the deposit as a stakeholder and repaying the tenants at the end of the tenancy after a careful inspection of the house. Any damage or cleaning is paid for from this deposit. Deposits are held in a separate client account, and the company has Client Money Protection Insurance coverage under the RICS regulations. • Informing you in writing once tenants have moved in. Sending the first statement of account showing the initial rent paid less the set-up charges and inventory fees. Sending the balance directly to your bank. • Collecting your rent monthly thereafter and paying any maintenance bills on your behalf. Producing a monthly statement of account and payment advice with original invoices attached for any work carried out (required for tax purposes). Paying the net rent into your account by automatic bank transfer each month. • Making regular inspections to check that the property is being kept in good condition and providing you with a written report.
• Dealing with any repairs or maintenance issues efficiently using reliable, cost-effective contractors with high standards of workmanship. • Re-advertising the property as soon as tenants give their notice to avoid periods where the house is empty. Ensuring that meter readings are taken, final bills are sent to the tenants at their new address, and the accounts are changed into the new names. • Providing advice on how best to receive your rent in the most tax-efficient way, what costs can be offset against the rent and, upon request, sending a summary of income and expenditure for the year for your personal tax return. If you are a resident overseas, we take responsibility for paying the
tax on your rental income unless we have been instructed otherwise by the Inland Revenue.
The fee for our Let Only service is 120% inc VAT of one month’s rent on a one-off basis. Preparation of a tenancy agreement is £90, including VAT, and the cost of preparing an inventory is typically £90 + £18 per bedroom, including VAT on all fees. These deductions will be shown on your first rental Statement of Account and Payment Advice. Upon instruction, we require a cheque for £200 on account to use towards the cost of any outgoings on your property before a tenant signing a Tenancy Agreement, e.g. boiler service or electrical test. This money would be shown on the rental statement of account after the property has been let. Under a Let Only (Tenant Finding Only) Agreement we undertake to find tenants and you, as landlord, are then responsible for managing your property on a day to day basis. LET ONLY
More detailed terms and conditions can be found in the Let Only Agency Agreement (example enclosed).
01722 336422
• We can provide insurance information appropriate for a let property including buildings and contents cover, loss of rent and legal fees protection, etc. Please ask for further details. Taking internal and external photographs of the property and placing the pictures and details on both our website and Rightmove, in the local newspaper and on display from our prominently positioned offices in Castle Street. • Conducting accompanied viewings by appointment, interviewing and assessing prospective tenants, contacting you with our recommendations and agreeing on a move date, subject to references and contract. • Taking up references on prospective tenants to include employer, current landlord, and a credit referencing check to ensure you have satisfactory tenants to minimise the risk of any financial difficulties. • Drawing up an Assured Shorthold Tenancy Agreement for the terms agreed, arranging for this to be signed and executed by both parties and sending you the original for safekeeping. • Preparing on request (at extra cost) a detailed inventory of fixtures and fittings and a record of the condition of the property, which includes a full set of colour photographs. Taking final readings for gas, electricity, water and where applicable, dipping the oil tank. OUR LET-ONLY SERVICE INCLUDES: • Visiting your property to assess the rental value, discuss the type of tenant you require and whether you would allow children, pets, smokers or sharers. • Advising on any pre-let works required in order to achieve the best result in terms of rent and standard of tenant and recommending suitable tradesmen if required. • Advising on the legal requirements for gas, furnishings and electrical checks, the condition of the house and the benefits of professional cleaning (including carpets), redecoration or improvement to present the house at its best.
• Arranging for all utilities to be transferred into the tenants’ names and for the final bills to be sent to you for payment directly. Ensuring a landlord’s gas safety certificate is in place for all properties with gas appliances. • Arranging for the new tenant to collect keys for the property once the legal documentation is complete and on receipt of one month’s rent in advance and a security deposit equivalent to five weeks’ rent (or six weeks’ rent if the annual rent is over £50,000). • Providing you with a statement of account and payment advice once the tenant has moved in and crediting your nominated bank account with the advance rent. • Arranging for the tenant to sign a standing order mandate for future rent payments to be made directly to your nominated account and sending this off for processing by their bank. • Registering a deposit (equivalent to five weeks rent) with the Tenancy Deposit Scheme for Regulated Agents (TDSRA). The deposit is returned to the tenant at the end of the tenancy once you have inspected the property and there is no dispute. We are well versed in property maintenance and normally proceed with works up to an agreed cost of £200 without prior instructions. You would authorise larger expenditures in advance. We will keep you informed every step of the way.
GAS AND ELECTRICITY
Is your property suitable for letting?
An Electrical Periodic Inspection Report is mandatory This report is only due once every five years and costs between £85 and £165 + VAT, depending on the size of the property. In a furnished property, all electrical appliances should be tested and marked accordingly. Under the Gas Safety (Installation & Use) Regulations 1994, all gas appliances at your property must be serviced by a Corgi registered engineer and a Safety Certificate issued. A copy must be held on file and can be requested at any time throughout the tenancy by the tenant. All appliances must be serviced annually.
DECORATION AND FURNISHINGS • All decorations should be fresh and neutral colours to give the property a broader appeal. • All unfurnished properties should have carpets/ suitable floor coverings, curtains and light fittings. • In a furnished property, all furniture must comply with the Fire & Furnishings (Fire) (Safety) Regulations 1988. This includes: • sofas • chairs • beds (mattresses and headboards) • all soft furnishings (except carpets and curtains) • Kitchen appliances – the usual requirement is a cooker with space for other appliances. All appliances left should be clean and in good working order and remain the landlord's responsibility. • Remember, a better quality of presentation is likely to attract better tenants. BATHROOMS Sanitary fittings should be modern, clean and in good working order. To prevent any water leakage, which may be costly, always make sure the installation is professional and check seals around baths, basins and showers. SECURITY Does your property have ground-floor or accessible first-floor windows? It may be worthwhile installing window locks, especially for vulnerable groups such as women living alone or sharing. It will also give the property a good marketing advantage. If there is an alarm, it should be operational, well maintained and, by law, have a 20-minute cut-out bell/siren. Smoke alarms should be mains connected, as batteries can be removed, and should be installed in all rental properties. By law, all houses must have a working smoke detector installed and where applicable a CO2 alarm.
Use the property as a single private dwelling only. • Not to keep animals, To obtain consent from your mortgage lender to let your property. If prior consent is not obtained, it may compromise your loan. • To inform the Inland Revenue that the property is let and to comply with the statutory obligation to declare the taxable income. You must obtain an exemption certificate if you are not a UK resident. We hold the appropriate NRL1 forms in our offices. • To ensure that all gas appliances in the property are tested in accordance with the Gas Safety (Installation and Use) Regulations 1994 and that the required certificates are issued. We would also advise testing the electrical circuits and all appliances left at the property. Please contact us for details of a recommended local contractor. • To ensure that all furniture and soft furnishings in a furnished property comply with the Fire and Furnishings (Fire) (Safety) Regulations 1988. • To obtain consent from your insurers to let your property. Your insurance may be invalidated if prior consent is not granted. • To maintain the exterior and fabric of the property in a good standard of repair. GARDENS Gardens should be left in a neat condition. If any particular shrubs/plants are of value, remove these – a tenant may not consider them as important as you do! With larger gardens, we may advise leaving a lawnmower and gardening tools at the property so the tenant has no excuse for not maintaining the gardens. • Maintain the garden to the same standard as when they moved in. • Not to alter, change or install any locks on any doors. The rent you receive on your property is known as investment income and is liable for tax. However,
certain expenses can be offset against tax: • Mortgage interest on capital borrowed • Water rates • Legal fees for renewing a tenancy
Agent’s management fees and advertising costs, etc. • Insurance premiums for building and contents • Cost of valuation for insurance • Ground rent and service charges (leasehold flats) • Normal repairs and redecoration
www.thedisputeservice.co.uk www.depositprotection.com www.mydeposits.co.uk
• Landlord management expenses – postage and Stationery • Heating, lighting and telephone (during void periods) • Garden maintenance • Preparing an inventory • Building society letting charges: You can allow for the depreciation of the contents of your home in one or two ways: a. Deduct 10% of the rent or Reptiles or birds on the property without the landlord's prior consent. • If applicable, return the oil tank to the same level at the end of the tenancy as it was found at the beginning. • If applicable, empty the septic tank throughout the tenancy. • Ensure the windows are thoroughly cleaned inside and outside throughout the tenancy and at the end. WHAT ARE MY RESPONSIBILITIES AS A LANDLORD? Income tax and your rented property USEFUL WEBSITES: BUILDINGS INSURANCE • HomeLet Prestige Deduct from the rent anything you pay that year for replacing furniture, fixtures or fittings. This is called the ‘Renewals Basis’. You may not choose both options; having chosen one, you may not change. The rules governing tax and allowable expenses change from time to time. If you are in doubt, you should contact your accountant or Income Tax Inspector. Tenancy Deposit Scheme Since April 2007, all deposits (for rent up to £25,000 per annum) taken by landlords and agents for assured shorthold tenancies in England and Wales must be protected by an authorised tenancy deposit scheme. Whites has joined the Tenancy Deposit Scheme for Regulated Agents (TDSRA) managed by the Dispute Service. This scheme is supported by the Royal Institution of Chartered Surveyors (RICS), the National Association of Residential Letting Agents (ARLA) and the National Association of Estate Agents (NAEA). Comprehensive buildings insurance Competitive rates for landlords with more than one property (portfolio insurance) • Loss of rent • Accidental damage by your tenant RENT GUARANTEE AND LEGAL COVER Sometimes, even the tenants with the best references fail to pay the rent through circumstances beyond their control, such as redundancy or relationship breakdown. The rent guarantee cover is designed to protect you and provide peace of mind.
The new legislation impacts the way agents manage deposits, and therefore, there is a nominal charge of £40 VAT to enable us to hold and anage a deposit on your behalf. This will be charged to you upon each new tenancy. Insurance HomeLet is a specialist provider of landlords’ insurance and offers a range of products to cover: • Level 1 (6 or 12 month policies) • Available at a cost from £50 per tenant 4 months’ rent paid on a 6 month tenancy; 5 months’ rent paid on a 12 month tenancy • Related legal expenses covered to obtain vacant possession (up to £25,000) • No rent is paid after vacant possession • Cover ceases when tenant vacates • Excess equivalent to 1 month’s rent • Specialist in-house legal and claims team to ensure any claim is dealt with promptly Cover provided by Rent4Sure. Available at a cost of 3% of the rent, e.g. £288 per year on a monthly rental of £800 (+ insurance premium tax at the current rate as set by HMRC) • Cover is on the property; not on the tenant • Full legal cover for up to £50,000 in eviction costs Included • Rental payment guaranteed for up to 12 months • 50% of rent paid for up to 3 months after vacant possession has been obtained • Excess equivalent to1 month’s rent For more detailed information about the insurance products available, please see the enclosed HomeLet brochure or phone HomeLet on 0330 333 7039 and quote, Whites Scheme Number 1402646. HomeLet is a trading name of Barbon Insurance Group Limited, which is authorised and regulated by the Financial Conduct Authority. The introduction of buy-to-let mortgages has led to greater flexibility a for the private investor who is able to consider property as an affordable long-term Whites has compiled a list of the most relevant points to consider when contemplating such a purchase. Marcus Shepherd, Director, Lettings and Management, said: “Whites can offer advice and assistance on all aspects, from selecting a suitable property advice on refurbishment through to obtaining tenants and managing the property.”
TOP TIPS TO CONSIDER
Consider your long-term goal. It may be that you will buy a property to live in once you retire; you could want the highest income immediately, or maybe you are looking for capital appreciation. It is essential to strike a balance between yield and capital. Discuss the pros and cons of letting furnished or unfurnished with your agent. We find that the most significant demand is for unfurnished, which involves lower ongoing refurbishment costs. Occasionally, corporate tenants require a furnished property, which can result in a higher rental figure, but this is not the norm. Carefully choose the location of your property and look for features such as a garage, parking facilities, central heating, double glazing, etc. When viewing a property, it might be wise to ask yourself whether you would accept the standard offered if you were a prospective tenant. An agent would expect the fabric of the building, together with all plumbing, gas and electrics, to be in good order. When decorating, use neutral colours, as these will create a blank canvas for the tenants to work from with their belongings. If refurbishing the kitchen or bathroom, again use more traditional designs/colours, which will not date. Hard-wearing, good-quality carpets are also a good investment, as this is where wear and tear take its toll.
Remember, if buying a leasehold, expect ground rent and maintenance charges to be your responsibility. However, if reasonable, these can be built into the rental value. Landlords are always responsible for building insurance and any owners’ contents. The tenants are responsible for insuring their personal belongings. If living or intending to move overseas, consider the tax implications. Although Whites will not handle your tax affairs, we can supply the correct form to enable you to apply to the Inland Revenue to receive rent without tax deduction in the first instance. Under the current legislation, all agreements are deemed to be an Assured Shorthold unless otherwise stated. This is the most common form of agreement, the usual exception being where the tenancy is taken on behalf of a company, i.e. a company let. 0722 336528 7 Remember, this is a business undertaking; try not to get too emotionally attached to the property and be prepared to invest further money later towards maintaining a high standard.
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FREQUENTLY ASKED QUESTIONS
This booklet details the questions that we are most commonly asked by our new landlords. If, however, you have any further questions that we have not answered here, then please do not hesitate to contact us. Landlords
Do you get many problems?
Very few major ones and we pride ourselves on this, attributing our success to careful selection of tenants and enormous attention to detail. Minor problems such as standards of housekeeping or garden maintenance which do not measure up to landlord’s expectations, can nearly always be resolved by us, provided all parties are reasonable. Issues such as late payment of rent are dealt with quickly and efficiently.
What if the tenant falls behind with the rent?
What if the tenant does not leave at the end of the tenancy? By careful interviewing, selection and monitoring of tenants we can keep this potential hazard to an absolute minimum. However, in the unlikely event of a problem and when Whites has done everything possible to resolve the situation but without success, then the landlord must pursue the matter through the due process of law. This will involve instructing a solicitor who will instigate the necessary court action to obtain possession. It should be borne in mind that this can take several months to finalise and although the landlord may be awarded costs and rent arrears, he will almost certainly incur some expense. Where possible, rents are paid by standing order on the first of each month, but problems can arise. Sometimes these are due to a tenant’s changed financial circumstances, carelessness, forgetfulness or a mistake by the bank or building society. Where we are acting on a full management basis we monitor rental payments most carefully, informing the landlord if we feel that there is a real problem and we take every possible step to obtain the rent as soon as possible. Usually we are successful and can pay the landlord; albeit belatedly. On very rare occasions, where rent arrears are accruing, it may be necessary for the landlord to instruct his solicitor (or we can do this on his behalf) to take the appropriate legal action. We can also offer landlords a rent guarantee scheme which is taken out at the beginning of the tenancy and covers for any loss of rent, after the first two months of the tenant being in arrears. How do you set the rent? We visit the property and by comparison with others in the area we can advise a realistic rent. This is a matter of experience and we must take into account the standard of presentation. Clearly a clean and attractively decorated property will be more in demand and therefore command a higher rent.
What type of tenant can I expect? This depends very much on the type of property and the limitations imposed by you, the landlord. Typically, a detached 4-bedroom quality property would probably attract an executive with a local company or a serving military officer, both of whom may have a family with children. Smaller properties may attract single people or couples without children. In all cases, we consider that the quality and reliability of the prospective tenant is of key importance. This will depend on your circumstances. However, as a guide, if you were intending to let for a period of two years, for example, we would seek to place a tenant in the property for the full period. We would however recommend that as far as the tenancy agreement is concerned, an Assured Shorthold Tenancy be created for a period of six or twelve months initially, to ensure that the selected tenant is suitable in all respects for the full period. If desirable, an appropriate renewal for either another six or twelve months, or for the remainder of the period could then be arranged. This process allows maximum control to be retained and provides the flexibility to review rental charges, if needed. How long should I let the property for? Should the property be furnished or unfurnished? Generally, tenants are more likely to prefer an unfurnished property so that they can bring in their own furniture. The minimum requirement is carpets, curtains and cooker. However, if you wish to leave a few items in the property, these can be detailed as part of the Inventory and Schedule of Condition. Appliances left, such as washing machines and dishwashers, make little difference to the rent and are indeed an extra maintenance liability for the landlord. What sort of fixtures and fittings are required? All tenants have different requirements which are best negotiated at the time but, as a general rule of thumb, presenting a house with fittings such as mirrors over basins, loo roll holders, towel rails and medicine cabinets will always be well received. This is particularly relevant for brand new houses where the builder is unlikely to have supplied such items. More importantly, it discourages tenants from buying and fitting their own fittings, removing them at the end of the tenancy and possibly leaving, at best, filled/touched up holes in the plasterwork.
Can the landlord or tenant give Notice during the tenancy?
Not during the fixed term of an Assured Shorthold Tenancy, the most widely used form of tenancy, unless by mutual consentt. After the fixed term, the tenancy can roll on, on a statutory periodic, i.e. monthly basis and the tenant may give one month’s notice and the landlord two months.
Since April 2007, all deposits (for rent up to £25,000 per annum) taken by landlords and agents for assured shorthold tenancies in England and Wales have to be protected by an authorised tenancy deposit scheme. Whites has joined the Tenancy Deposit Scheme for Regulated Agents (TDSRA) managed by the Dispute Service. This scheme is supported by the Royal Institution of Chartered Surveyors (RICS), the National Association of Residential Letting Agents (ARLA) and the National Association of Estate Agents (NAEA). What happens to the deposit?
What happens if the tenant has caused damage to the house or contents?
At the end of the tenancy and after checking the Inventory of Fixtures and Fittings and Schedule of Condition during our final inspection, we must account to the tenant with the deposit. Negotiations for any necessary deductions can prove troublesome and we do our utmost to achieve a fair settlement for both parties. Tenants must leave the property as clean and as tidy as when they moved in and be prepared to pay for any damage or breakages that have occurred. Landlords should also realise that however good and careful a tenant might be, some deterioration in decoration and general condition is inevitable over a period of time. It constitutes fair wear and tear, which must be taken into account. Where possible, after consultation with the landlord, we make the appropriate deduction from the deposit, returning the balance to the tenant within a reasonable period of time. It is worth mentioning that the cleaner and more attractively presented a landlord leaves a property, the easier it is for us to ensure it is returned in the same state at the end of the tenancy. I have a sizeable garden, should I employ a gardener? Gardens can cause problems as many tenants are disinterested in gardening, particularly when it is not their own. The standard agreement makes the tenant liable for keeping the garden neat and free from weeds. However, if the garden is large or at all ‘complicated’ or has hedges and shrubs which require careful pruning, we recommend that gardening help is provided on a regular basis. We can as Managing Agents, pay the gardener and would hope that the rent set would help to cover this expense.
I am thinking of buying a property to rent out. I understand that I can use an interest-only mortgage and claim the full costs of the mortgage against the rental income I will receive. Is this correct?
01722 336 422 Yes. Where a mortgage is taken out to purchase a property which is to be let, the interest element of the mortgage can be deducted from the rental income in calculating the taxable profits. However, you do not need to take out an interest only mortgage to be able to get this deduction. You could, for example, take out a repayment mortgage but, in this case, only the interest element of the mortgage payments can be deducted. 5
We make it clear to tenants that they should contact us regarding any breakdown or problem. Having investigated the circumstances, we call out the appropriate contractor, either one nominated by you or one known to us. Clearly in the case of a night time or Sunday emergency, when we are unavailable, the tenant must take appropriate action. The contractor submits his invoice to us and we settle it out of the rental income accounting to the landlord on his monthly statement. What happens if a repair to property or equipment is required during the tenancy? Can I stipulate – no pets, no children, etc? Yes, of course, but bear in mind that this may restrict the market and make a letting more difficult. In any event, our policy is to discount smokers to let the property due to the adverse effect on decoration. How do you check the suitability of prospective tenants? Each prospective tenant is asked to provide references from their bank, employer and current letting agent or landlord (if applicable). Additionally, we carry out further checks through a reputable credit referencing agency. In some cases prospective tenants may be asked to provide a guarantor if they do not have a history of owning or renting properties. Each tenant is interviewed and their general suitability is assessed by us. You may meet the prospective tenant should you wish, however, regardless of whether you do so or not, you retain the right to reject an applicant at your discretion. Tenants pay one month’s rent in advance at the start of the tenancy and rent on the 1st of each month. Where we are on a Full Management basis, credits are sent out by BACS to your nominated bank or building society account on or around the 15th of each month, and you are sent a statement showing any deductions from rent received with supporting invoices. All accounts are audited monthly to comply with RICS regulations. How and when do I receive rent? How are rent accounts dealt with? Rents quoted normally exclude all outgoings (utility accounts, etc), except where the building is part of a development sharing communal facilities and a service charge and ground rent may be payable. In such cases the landlord would remain liable for such payments. Statements are sent out monthly and show all income and expenditure for your property in the period. The balance is remitted to your nominated bank or building society.
Do you ask me before authorising repairs, etc?
01722 336 422 We like to, if you are readily available. However, particularly where a landlord is overseas, we ask for his authority to spend up to £200 on an essential repair/replacement. We hope you will have confidence in our judgement, and we aim to minimise landlords’ expenses while maintaining the property to a reasonable standard. All contractors used by us are selected specifically because of a) standard of workmanship, b) competitive charging, and c) reliability. Please note that, unlike some Agents, we do not charge the contractor a commission on any work introduced. 7
How often do you visit the property? Our first visit is made during the first couple of months of the tenant moving In and after that annually. If there are any problems, or we suspect that a tenant is not looking after the house and garden as he/she should, then we would visit the property on a frequent basis thereafter to monitor the situation and recommend appropriate action.
What is the policy on picture hooks?
Our usual recommendation is for landlords to permit tenants to put up a reasonable number of proprietary picture hooks (either the brass or white plastic variety) but obviously not any old nail from the garden shed and most certainly not blue-tac or sellotape. Exercising some flexibility in allowing the tenants to put up pictures will help to encourage them to feel at home, hopefully on a long term basis. Do I need to have any certificates for my gas boiler? Yes. A Landlord’s Gas Safety Certificate is required for all gas appliances in the property. This needs to be renewed every year by a Corgi registered plumber. What happens about bills for services (electricity and gas)? Prior to your vacation of the property you should contact the various services and arrange for the utility address to be c/o Whites. We will be happy to settle these final accounts from your rental income should you wish. Once a tenant occupies the property, we will arrange for the utility accounts to be transferred into their name. Owners are responsible for standing charges whilst the property is not subject to a Tenancy Agreement. Regular payments of outgoings – how should these be paid? Council Tax is levied on the property and once a tenant has taken up residence, it becomes their responsibility to pay the Council until vacation date, when the Landlord once again becomes responsible. Mortgage payments, if any, should continue to be paid throughout. We will deal with maintenance charges as they arise. Water rates and sewerage charges can be paid by either the landlord or the tenant (but normally the latter). This is a further consideration when assessing the likely rental income. The responsibility to purchase a television licence lies with the tenant.
If the house is unfurnished why do I need an inventory?
01722 336 422 A properly constructed Inventory/Schedule of Condition details the fixtures and fittings and describes their condition and that of the property generally. The inventory is an essential document that provides a written benchmark at the start of each tenancy. It should be amended, updated and recreated before the beginning of each new tenancy. 9 With the introduction of the Tenancy Deposit Protection legislation in April 2007 it is more important than ever that a detailed inventory is drawn up at the start of each tenancy to assist with the resolution of deposit disputes.
What happens to my mail during the tenancy?
We would strongly advise that the Royal Mail re-direction of post is arranged by you before you leave, as neither Whites, nor the tenant can be held responsible for your mail. However, any post that is delivered to our offices by the tenant, will be redirected/forwarded by us, as appropriate – we are only able to guarantee this for the first two months after the property is let.
Combination central heating/hot water boilers
Where a gas or oil combination boiler is fitted to providehot water on demand, landlords should be aware that there is no hot water tank with an immersion heater upon which tenants can rely for hot water in the event of a breakdown. Tenants can usually be persuaded to survive for a few days without central heating necessary; we can provide them with plug-in electric heaters or similar) but lack of hot water makes everyday living very difficult unless there is an electric shower to complement the system. In this situation, it is very important that the central heating engineer attends immediately and repairs the system in order to avoid claims for rent refunds, etc. If you have your own nominated engineer, but he cannot respond the same day, then we would normally book one of our recommended engineers to cover the emergency. Landlords should also be aware that combination boilers run on a pressurised system. Gradually, the pressure will drop due to water evaporation and/or escape of air from the system, and the system will need repressuring from the cold water main filling loop. This is not something which a tenant or agent can be expected to do as a qualified central heating engineer should do it. The system will cut out if the pressure drops too low and equally, over pressurising it will cause damage. Tenants are instructed to call the office if the pressure gauge drops below a certain level and landlords should be aware of the additional maintenance requirements of a pressurised system. The majority of residential lettings by private landlords are “Assured Shorthold Tenancies” introduced under the Housing Act 1988 (revised 1996). This legislation provides stronger rights for the landlord to let a property without the fear of not being able to gain possession of the property when required. To achieve this, certain conditions must be met and the tenancy set up correctly by the agent. What protection is given by the Housing Act 1988?
Do I need to have any certificates for my electrics?
It is mandatory for all properties to have an Electrical Installation Condition Report (EICR), which must be updated every five years. As a landlord you must ensure that the electrical system and all appliances supplied are safe; failure to comply with the Electrical Equipment (Safety) Regulations 1994 and The Consumer Protection Act 1987 is a criminal offence. We strongly recommend that a Periodic Inspection Report is carried out by a qualified electrician. This will highlight any areas of concern and make recommendations for any work that needs to be carried out.
Do we need to fit smoke detectors in the property?
All houses must be fitted with at least one working smoke detector and carbon monoxide alarm (ideally mains connected) per floor.
Is there anything we must do if we want to leave furniture?
Yes. All furniture must comply with the Furniture and Furnishings Safety Regulations 1993. Landlords are liable for ensuring that all furniture and furnishing in a rented property complies with these safety standards. Furniture bought after 1990 will have a safety label attached. Any furniture that does not have this label, including that bought after 1990 (if it has been cut out), must NOT be left in the property. Failure to do this may result in a fine, or imprisonment, or both.
Do I need to give you any identification?
Yes. We require identification to comply with Money Laundering Regulations. These are kept on file together with your signed Agency Agreement and Landlord Information Sheet.
Should I advise my insurance company? Building cover must be maintained and payment of premiums continued. Your insurance company must be advised that you are intending to let the property. This affects your contents insurance and you should therefore inform the company. They should also be told that we are the Managing Agents. The tenant is responsible for insuring his own belongings. It is important that the landlord informs us of any specific conditions his insurer may impose and of which the tenant should be aware, i.e. maximum period during which the property may be unoccupied, yet still covered by insurance. It is also advisable to check for damage caused by burst pipes both when the property is tenanted and empty.
I am going abroad and will be non-resident for tax purposes. Can you advise me?
Yes. We can provide you with a leaflet explaining what you should do. You will need to sign the Inland Revenue’s NRL1 Form for us to obtain approval to pay rent gross, i.e. with no tax deducted: this is a straightforward process. If the property is jointly owned, or any monies are paid into a joint account, each party will need to be registered.
Should I advise my insurance company?
We can handle simple claims on the instruction of the landlord as part of the Full Management Agreement. If however we are involved in a substantial amount of work obtaining estimates, supervising repair work, etc, then we will make a separate charge to you based on time spent. We do ask that you advise your insurance company that in the event of any claim we will be acting your behalf.
Can I cover these possible expenses by insurance? Yes. You should discuss this with your existing insurance company
or ourselves. We can arrange cover for clients through HomeLet, a specialist provider of landlords insurance. For further information regarding each of these policies, please obtain the relevant HomeLet leaflet from us or go to www.homeletuk.com for full details.
Can you deal with the legal side?
Yes. We are competent and experienced in this and in almost all cases we draw up the legal agreement for you. The Assured Shorthold Tenancy is the most widely used form of tenancy and subject to the serving of the appropriate notices, gives the landlord a mandatory right to repossession at the end of the agreed term, offering flexibility to both landlord and tenant.
Should I inform my bank/building society of my intention to let?
Yes. If your property is subject to a mortgage, you must advise the lender of your intention to let it. We strongly advise that you contact your mortgage company immediately to obtain their permission in principle rather than applying for this once a tenant is found. It is imperative that consent is obtained to prevent your mortgage arrangements being in jeopardy. It could take up to 6 weeks to obtain written permission. Flat owners should also check the lease to ensure that the flat can be rented out. This also relates to those with management companies.
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To be completed by landlord and returned before marketing commences. You can also fill in online by CLICKING HERE and emailing back. LANDLORD INFORMATION SHEET - FULL MANAGEMENT
1. ADDRESS OF PROPERTY TO BE MANAGED:
Post Code: Current Telephone Number at the property to be let:
Approximate value if known: Approximate length of time available i.e. 1-2 years, 3-5 years etc. Date available from: Initial asking rent to be quoted as agreed with the Agent £
Keys Please attach 3 sets of keys for accompanied viewings (if not already done so) and details of anyone else e.g. neighbour or relative, who also has a key: NB: if you have a burglar alarm at the property, please see page 7
TO LET BOARDS
Boards usually yield an excellent response from potential tenants Would you like a To Let board? YES/NO In your property, would you allow the following? Please indicate. Pets Yes No Children Yes No Sharers Yes No Smokers Yes No
2. LANDLORD Full names (including middle names) and your Title are required for the Tenancy Agreement as per the title deeds for the property .
Correspondence address:
Post Code Home Tel: Work Tel:
Email Address:
Mobile:
(for statements)
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In the interests of the environment and reducing our carbon footprint, statements will now be issued by e-mail along with any corresponding contractor invoices, unless otherwise advised. If you are a landlord with multiple properties, we will issue one statement unless otherwise instructed.
3. BANK DETAILS
For rent to be paid direct into you Bank/Building Society account. For those with a Building Society Account a separate code may be required in order for us to make BACS payments. Please check with your branch. Bank/Building Society: Address: Post Code:
Account No. Sort Code: Account Holder Name: Building Society Account Code (if required)
4. EMERGENCY CONTACT (for any problems with your property if you are absent/on holiday) Full Name: Address: Post Code: Home Tel: Work Tel: Email Address: Fax: Mobile: Relationship with Landlord e.g. father, mother, brother etc. 5. POST We do ask our Landlords to implement a Royal Mail redirection facility as we do not advise tenants of Clients addresses. Please confirm that you are having this YES/NO if “NO” please be aware that there is no guarantee that you will get your post.
6. SERVICES/GENERAL QUESTIONS ABOUT YOUR PROPERTY
Gas Supplier: Location of Electricity Meter
Location of Gas Meter Electricity Supplier:
Electricity Meter Number Water Supplier:
Gas Meter Number:
Supplier for Sewerage Services: Water Meter or Rated? Water Meter Number: Location of Water Meter:
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