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LANDLORDS GUIDE TO LETTING |
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| When letting your home, you need to be confident that it is being placed in the hands of experienced people. We handle all types of properties ranging from studio apartments to large houses. Often our clients require us to look after all aspects of management on their behalf, taking full responsibility for maintenance, rent collection, and the general wellbeing of the property. Our experienced team are well versed in the day-to-day maintenance of a rented property, and we work in conjunction with local contractors to ensure that all runs smoothly for our Landlords and Tenants. The Housing Acts 1988 and 1996 The
Housing Act 1988 created the framework to allow private individuals
to let accommodation free from the restrictions of previous legislation.
Under the terms of an Assured Shorthold Tenancy, the Tenant is obliged
to give up occupancy of the property at the end of the fixed term
and he or she cannot become a sitting tenant; this applies regardless
of whether the property is let furnished or unfurnished. The rules
governing the amount of rent which can be asked have also been revised,
and an 'open market' rent is now achievable. A deposit is retained
at the outset to cover any damages caused during the tenants occupation. Who Are Anderson Estate Agents? Established in 1988 by Kevin and Angela Anderson, we currently manages a portfolio of over 250 residential properties of all types for private Landlords in Sutton Coldfield, Lichfield and surrounding districts. We offer an expert and comprehensive service, whilst retaining our small company identity - we are familiar with each individual client and property. If your property is being let to an individual as opposed to a Company, then the most appropriate form of Agreement is likely to be the Assured Shorthold Tenancy. The Agreement must be for a minimum of six months during which time you as the Landlord are unable to bring the tenancy to an end, unless the Tenant breaks any of the terms of the Agreement. Likewise, the Tenant is contracted to pay rent for the full length of the Agreement. Should you wish to regain possession of your property at the end of the tenancy it is necessary to give the Tenant two months' notice, to expire on the day prior to a rent day. We will advise you in good time of the relevant dates and negotiate with your Tenant with regard to their leaving. Alternatively, we will negotiate an extended term based on your instructions. Once the initial fixed term has expired (often 6 or 12 months) it is possible for the tenancy either to be extended for a further fixed period, or it can be held over on a month-to-month basis. Once again, should you require possession it is necessary to give the Tenant two months' notice, to expire on a day prior to a rent day; the Tenant must give one month's notice of his or her intention to leave, prior to the expiry of the fixed term. We will draw up the Tenancy Agreement on your behalf, and the appropriate Notices will be served accordingly. Should you wish us to liaise with your Solicitor at any stage, please let us know. Any amendments or alterations that you make us aware of in writing can be incorporated into the Tenancy Agreement. If a Company wish to rent your property on behalf of an employee then a Tenancy Agreement will be drafted, with minor amendments to accommodate the different circumstances. There are occasions when an Assured Tenancy is more appropriate, and advice in this context will be given if necessary and relevant to the circumstances of the letting. The
first step is to meet with Kevin Anderson at your property so that
he can look around and give advice on rental value, as well as general
information concerning the proposed letting. This initial appointment
is free of charge and without obligation - we then await your instructions
as to whether you have decided that letting is the way forward for
you.
At this stage, we will ask you whether you have any preferences concerning the prospective Tenant, i.e. will you allow pets in the property? Would you prefer to exclude smokers or children? Please supply us with information concerning the appliances to be left in the property - is anything covered by a guarantee or service contract? Finally, we ask whether you would like the rent paid to you or directly into your bank account. A separate bank account is recommended for income and expenditure so that records are readily available for the Inland Revenue. It is your responsibility as property owner to keep up the insurance on the building and on your own contents which are to be left in the property. You must inform your insurers that the property is to be let, and ask them to confirm in writing that they have amended their records accordingly. We can arrange a competitive quotation for Building and Contents with a specialist insurer to ensure adequate cover for your property. In addition, we also offer insurance to cover legal expenses in the event of a dispute with your tenant and also we are able to guarantee your rent. Further details of this policy are available at this office. In appointing us as your Agents, you have passed over all the problems of finding a suitable Tenant to us. Having received your instructions to act, we will advertise your property in the Sutton Coldfield Observer or the Lichfield Mercury. We can also advertise in selected weekly publications to reach any district which may be deemed suitable for a particular property, after discussion with yourself. Your property will also be added to our Property Bulletin, which is sent out from the office in response to all enquiries received. We operate a Web site which receives 1000's of visits each week. If you would like a "To Let" board erected outside the property, we can arrange this; all Landlords have their own feelings about this type of promotion, and we will follow your wishes in this respect. What should I leave in the property? As a result of legislation introduced under the Housing Act 1988, property can now be let either furnished or unfurnished and the Landlord retains the same rights of possession in both cases. There is a good market for letting both furnished and unfurnished property of all types. For your convenience, we have compiled a suggested list of contents which should be included in a fully furnished property. Fully Furnished: Linen and towels are an optional extra, included at the discretion of the Landlord; there is a market sector in the business community who welcome this kind of addition. It is a basic requirement of "Andersons' that all properties let should be presented to the Tenant in a clean and tidy condition, and that the decoration and contents should be up to an acceptable standard. It has been our experience that a property which is handed over in an attractive state is well maintained and cared for by the occupants. The Landlord should also be aware that he or she is responsible for basic maintenance of the property for the duration of the tenancy, and this includes repairs to the structure of the building as well as keeping all appliances in good repair. We have an excellent team of maintenance and cleaning staff who can undertake any works which may be required before the property is let. Basic Furnished: Would comprise the large items e.g. sofas, beds etc. Unfurnished: The basic requirement for unfurnished properties are carpets, curtains, light fittings, a cooker, a fridge and a washing machine. We do not recommend part furnished properties. Suggested furnishings list for a fully furnished property. When equipping a furnished property for letting purposes, we suggest that you supply the following: Kitchen Lounge Dining
Room Bedrooms Bathroom Suggested
Household Linen General Safety
Precautions PLEASE REMEMBER TO MAINTAIN ADEQUATE BUILDING AND CONTENTS INSURANCE AND KEEP YOUR INSURANCE COMPANY INFORMED OF MATTERS PERTAINING TO THE PROPERTY AT ALL TIMES. APPLIANCES SHOULD BE SAFE AND IN WORKING ORDER. ALL FURNITURE SHOULD COMPLY WITH THE LATEST REGULATIONS. Before a Tenant moves into your property, we arrange for a full and comprehensive Inventory and Schedule of Condition to be prepared, detailing all furnishings and items to be included in the Tenancy, together with comments concerning the condition of the soft furnishings, carpets and general decoration. This is signed by the Tenant at the start of the Tenancy, and stands as an authoritative record as to the state of the property which can be referred to in detail when the tenancy ends. It is a condition of Anderson Estate Agents that we prepare an Inventory for every property let through this Agency. It is essential that we are familiar with the property so that any potential disputes at the end of the tenancy can be dealt with effectively. The Tenant and the Tenancy Agreement Once
a prospective Tenant has been found, we apply for references through
a credit reference agency. The exact references sought depend on
the Tenant's circumstances, but generally speaking we look for:
An Employer's Reference and a Previous Landlord's Reference. Proof
of I.D. is required and a search is made to see if there are any
County Court Judgements. Tenancy Documentation We suggest that the Tenancy is for a duration of between six and twelve months; on occasion a tenancy of two years may be appropriate; six months is the minimum period which can be undertaken under an Assured Shorthold Tenancy. Our Tenancy Agreement is a lengthy document, evolved over a period of time to cover all points necessary to protect your interests with regard to the letting. A specimen copy of the Agreement is available from the Office for your information. The
Agreement can be amended to include any points which you feel are
of particular importance to your circumstances, provided that we
are notified in writing of the required amendments, in good time. Once the Tenant has moved in, we set about sorting out the details necessary to make the Tenancy run smoothly. The Utility Services are informed that there is a new Occupant, and we supply meter readings and ask that a closing account be sent to the previous occupant of the property, with all future invoices being addressed to the Tenant. We contact the following Services on your behalf:-
The service which has to be dealt with by yourself is British Telecom or other telecom supplier, who will accept notification of any change from the account holder only. You should inform them that you wish hand the line over and the Tenants are responsible for taking over the service when they move in. If possible the telephone line should be left in readiness for the Tenant to take over without having to pay a re-connection charge; the tenants are required in the Tenancy Agreement not to alter the allocated number without consent. To fully relieve you of the burden of administering the Tenancy once it has commenced, we offer a complete Management Service. This covers all aspects of the Tenancy, including: Regular Inspections - We report to you in writing at regular intervals during the tenancy, commenting on the general condition of the property and ensuring that the Tenant is abiding by the terms of the Agreement. Supervision of Rent Collection - The rent is collected each month on the appropriate date, and is duly passed on to you either by cheque, or into your Bank Account by BACS as appropriate. You will receive a monthly Statement of Account. Maintenance and Property Care - Any repairs to appliances or to the property itself are dealt with promptly. We set a budget figure with you at the commencement of our Management Contract, and any repairs which can be carried out within this budget are done immediately; we obtain quotations in respect of any larger matters, and forward these for your instructions. A 24 hour emergency service is provided Extending the Tenancy or Regaining Possession - At the end of the fixed term of the Tenancy, there are several options open to you as Landlord. If you require possession, the Tenant must be given two months' notice of your intentions; we will notify you in good time of the relevant date for issuing such notice, and serve the documentation on your behalf. Alternatively, the Tenancy can be extended, either for a further Fixed Term or on a Monthly Periodic Basis, and the relevant paperwork can be prepared according to your requirements. (This service is provided to those clients who choose the Tenant Find Only Service) The "Let While You Sell" Option If required, we can obtain free valuations from local Estate Agents, instruct an Agent to act on your behalf, and liaise between Selling Agent and Tenant to ensure a smooth relationship between all parties concerned (or work in conjunction with your existing Estate Agent if the property is already on the market). Generally speaking, Tenants are quite willing for a "For Sale" board to be erected during the later part of their tenancy (usually of a six month duration), and to give reasonable access to prospective purchasers; their co-operation in these areas is made a condition of Tenancy, and included in the Tenancy Agreement. A good Tenant gives the property a 'lived in' feeling which makes it more attractive to purchasers. The main benefit of this system is the financial security offered to the Landlord - we will seek to maximise your income whilst exercising every option to find a buyer. From our offices on the High Street we sell many properties for our Landlord clients. Income
Tax is payable on your rental income, if you are resident in the
U.K. or remain liable to pay tax in this country. However, there
are various tax-deductible items connected with renting property
relating to general maintenance, depreciation, insurance which can
balance the amount of tax payable. Finally you may be able to use
personal allowances and mortgage interest to offset your tax liability.
You are also able to claim for fees connected with letting. Overseas Landlords Clients who are stationed overseas often have special requirements, and we are experienced in adjusting our service to allow for the differences which occur. In general, for ease and speed of communication, all information is sent overseas by e-mail or Fax, with the original documents following by post where applicable. We can act as signatories to the Lease Agreement providing that we are in possession of your written consent to this end, and all accounts which are applicable to you as the previous occupant, or existing owner, of your property can be discharged on your behalf.
GAS SAFETY (INSTALLATION AND USE) REGULATIONS 1994 All Landlords of rented properties must have all gas appliances in their properties checked on an annual basis. The Tenant must be given a "Landlords Gas Safety Certificate" when they move into the property. All gas work has to be carried out by C.O.R.G.I. Registered contractors and only trained operatives with certification of their training can be utilised. It is an offence to carry out work on gas installations if you are not C.O.R.G.I. Registered. If you have a service contract with British Gas or another qualified company then you will have an annual service and inspection carried out. It is therefore not necessary to have any further checks, however we will require a "Landlords Gas Safety Certificate" from your current contractor. Alternatively we can arrange for our contractor to visit the property prior to the first letting and check all appliances. Thereafter, he will carry out inspections/services annually. FIRE AND FURNISHINGS (FIRE SAFETY AMENDMENT) REGULATIONS 1993 It is an offence to supply furniture which does not comply with the Fire Resistance Requirements contained in Regulation 14 of the 1988 Regulations. The regulations state that it is an offence to supply in the course of business any furniture to which the regulations apply unless that furniture meets what is known as "the cigarette test", "the match test" and also "the igniteability test". The Regulations apply to all upholstery and upholstered furnishing, loose fittings, permanent or loose covers. Please note it is an offence to supply furniture that does not comply. This means that you cannot give furniture or sell furniture to a tenant as this would be deemed to be supplying. If furniture does not comply it must be removed from the property. Furniture manufactured before 1st January 1950 is excluded from the regulations; this is because the defective materials were not in use prior to 1950, and this exempts "period" or "antique" furniture. Failure to comply with these regulations carries a penalty of 6 months imprisonment, or a fine on what is known as "level 5" maximum, currently £5,000, or both. You are strongly advised to install fire detectors to all floors of the property. As your Agents we will endeavour to keep you up dated with all changes in the regulations relating to the letting of your property. Electrical Safety All electrical wiring and appliances should be safe. We will arrange for an electrician to inspect the property prior to the first letting and at intervals thereafter, upon receipt of your instructions. Health and Safety 1. Carpets and floor coverings should be clean and well fitted - fraying, holed and loose sections are dangerous and unacceptable. 2. Windows should open, as frames which are nailed or painted shut can prove to be a fire hazard. Most insurers now require windows to be fitted with security locks. 3. External doors should be fitted with adequate security locks. 4. All internal and external doors should be fitted with British Standard reinforced glass where applicable. 5. Electrical appliances and internal wiring should be in good repair and meet with British Standards. 6. All furnishings and equipment should comply with the Fire Regulations laid down for rented property. 7. A fire extinguisher/blanket and smoke alarm should be supplied. (even in unfurnished property) 8. Stair rails should be fitted to all staircases. 9. Pipes and cabling should be adequately concealed. 10. Central heating system should have been serviced (if applicable) and regular servicing of gas and electrical appliances is advised. 11. Kitchen cupboards and appliances (e.g. cooker, fridge, hob) should be in a good, clean condition and in working order. 12. Crockery and utensils provided should be in a clean, sound condition (no chipped, cracked or soiled equipment should be included) and matching sets of crockery and glassware are preferred. 13. Glass in internal doors should be safety glass. General Condition 1. The equipment provided in the property should be in accordance with the list provided by this Agency; any surplus ornaments or items which are extra to the list should be removed by the Landlord. An extra Inventory charge will be made in the event of a substantial amount of additional items being left in the property. 2. All foodstuffs, cleaning fluids and personal items must be removed from the property. 3. Paintwork and decorations should be in a reasonable, clean order, with no excessive chipping or soiling. 4. Surfaces should be free of housedust and cobwebs. Internal and external windows should be clean. 5. All hard surfaces should be clean, including paintwork. 6. Bathroom fittings should be in a clean and acceptable condition. 7. Light bulbs should be working and shades should be supplied in properties which are let furnished. 8. All linen supplied in the property must be freshly laundered and in a reasonable condition. Torn or soiled linen should be removed from the property. 9. Curtains should be clean and well hung on well fitted curtain rails. 10. Chimneys should be swept before the occupation of a tenant (if applicable). 11. Gardens and borders should be neatly kept. Boundary fencing and hedging should be in good order. 12. Guttering should be cleared before the commencement of a tenancy, and the roof should be checked for missing tiles. |
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