FAQ
Frequently asked Questions
How much rental income will I receive?
There are many factors to consider when determining the correct rental value to market your property, including economic climate, locations of amenities, school catchment areas, local rental market conditions, condition of the property and comparison of other properties in the surrounding area.
We will visit your property to provide a free and without obligation expected rental valuation and give advice on ways to maximise rental income and the best letting and management package to suit your needs and expectation.
How will my property be marketed and viewings conducted?
Your property will be marketed online with the 3 main lettings portals, Rightmove, Zoopla and On The Market, including options to advertise your property as a priority or feature property. As an individual you cannot market on these portals, you must use a letting agent to be able to use these.
Providing we have keys, one of our lettings agents will be present at viewing, to show prospective tenants through the property and to answer questions and provide knowledge of the area. We will provide you feedback afterwards.
Do I need to let my property furnished?
It is a legal requirement to have Carpets, Curtains and a Cooker in the rented property, but apart from that it is your choice whether to leave the property furnished or unfurnished. There appears to be little difference in the let value of furnished or unfurnished properties. If you wish to leave your property part- or fully furnished you should ensure that all electrical appliance are PAT tested and that all soft furnishings comply with current furniture and fire regulations.
How do you select a suitable tenant?
Finding the right tenant is very important. We will act in accordance with your instructions regarding any restrictions you may have specified (such as non-smokers, pets, children). Once a suitable tenant has been found, the application process can begin and includes Reference Checks, a Full Credit Check and Right to Rent Checks (these are now mandatory checks on any occupant of a rented property, to ensure they have the right to reside and work within the UK). Where necessary a guarantor obtained and subject to the same checks.
Requirements needed prior to the tenancy being let
What to do if your property is mortgaged?
As a landlord you will need to obtain permission from your mortgage lender to let out your property. Failure to do so is a breach of your mortgage agreement and could lead to the property being repossessed. If they imposed any special conditions you will need to notify us, so these can be included in the Tenancy Agreement.
What if the property is Leasehold?
If your property is leasehold and subject to a headlease you must obtain the permission of the lessor and provide a copy of the headlease to us and the tenant. This ensures any additional clauses are entered into the Tenancy Agreement and that the tenant complies with the head lease.
Does Letting my Property affect my Insurance?
You must notify your insurance company that you intend to let your property. Your existing buildings and contents insurance cover may not include the range of scenarios that can arise when letting out your property.
Do I need to pay tax on any rent I receive if I let my property?
Yes rental income is taxable income. Each owner as stipulated on landlord registry is deemed by HMRC as a joint owner of the property and is liable to pay income tax on the property’s rental income. As a landlord you will be taxed on rental income less any tax-allowable expenditure. These include but are not limited to, letting and management fees, property maintenance and repair costs (not property improvements) and utility payments. We recommend you speak to a financial advisor prior to letting your property to discuss the full tax implications.
What do I need to do if I live overseas, or are planning to move overseas?
If you reside outside of the UK for more than 6 months of the year HMRC will classify you as a “Non Resident Landlord”. You are still liable to pay income tax on any rental income you received from the letting of the property. HMRC insist that your agent or tenant (if the tenant pays rent directly to you) deduct 20% of the gross rental income, unless they grant approval for the agent/tenant to pay the full rent to you. In order to receive gross rental income you will need to apply to HMRC. Each legal owner of the property must apply for tax approval individually. When applying, please ask HMRC to link your approval to our Agency Reference NA004321, so we are not required to deduct tax and you can receive your gross rental income.
What is an Energy Performance Certificate (EPC) and do I need one?
An EPC measures the energy efficiency of a property, rating on a scale of A-G. The Certificate lasts for 10 years and can be used for multiple tenancies. All properties let or being marketed for letting must have a Valid EPC rated E or above. We can arrange an EPC for you using a qualified Domestic Energy Assessor, please contact us for the latest cost for this service.
What is an Electrical Installation Condition Report (EICR) and am I required to have one?
An electrical installation condition report (EICR) is used to identify defects, deterioration, damages and/or conditions which may indicate potential danger, as well as providing recommendations for improvement within a given property. It is a legal requirement as a landlord to have a valid certificate of inspection and testing carried out by a qualified person prior to a tenancy commencing. These need to be carried out every 5 years.
We can arrange for this for you, please contact us for the current cost and to arrange.
Do I need to do anything extra if my property has Gas?
It is a legal requirement that all Gas Appliances and Installations in any part of the premises must be checked annually by a Gas Safe registered engineer and that the appliances are maintained and in a safe condition. Once checked the engineer will provide a Gas Safety Certificate. Any defects must be rectified, or British Gas have the power to disconnect the supply. There must be a current Gas Safety Certificate in place prior to every tenancy commencing and a copy of the certificate provided to both your letting agent and to your tenant (failure to provide this will invalidate any future notices if you wish the tenant to leave your property). A new certificate must be obtained each year where the property is let. Prices of the check are dependent on the size of the property and number of appliances. We are happy to arrange this check for you, please contact us for pricing information.
What about the Electrics in my property?
Landlords are required by law to ensure that all electrical installation in a rented property is safe when the tenants move in and maintained in a safe condition throughout the duration of their tenancy. It is recommended that all appliances supplied to the property are safe and checked on an annual basis. Please contact us if you’d like us to arrange this for you.
Does my property need smoke alarms or carbon monoxide detectors?
Current regulations state that a smoke alarm must be installed on each storey of a let property and that a carbon monoxide alarm is in any room with a solid fuel burning appliance or a naked flame. The smoke detectors must be tested and in working order on the day of commencement of each tenancy. If you do not have these, we can arrange for these prior to the tenancy commencing, please contact us for assistance.
What if I leave furniture in the property?
All furnishings in the property must be fire safe, this includes upholstery, upholstery furnishings, loose fittings, permanent or loose covers (for example, chairs, sofas, mattresses, headboards, cushions, pillows). Furniture manufactured prior to 1950 is exempt. Please check the kite mark on all furnishings. If you do not have kitemarks on your furniture it will need to be removed from the property prior to any tenancy commencing.
What is Legionella and what do I need to do?
Legionella is a water based bacteria that can lead to Legionnaires Disease. Legionella is usually found in water temperatures between 20 and 45 degrees C and can be transferred through water droplets or sprays in the air where water has been stored or recirculated before. It can occur if there is any rust or sludge present, but also where water has been allowed to stand for a period of time (empty property, whilst on holiday).
Landlords have a legal duty of care to assess and control the risk of exposure to legionella within the property. This risk assessment can be carried out by any competent person, which includes yourself as landlord. A risk assessment is a careful examination of all man made water systems (including water tanks, showers and baths) to identify hazards, decide who could be harmed, evaluate risks and implement controls. Controls include flushing out the water system prior to letting (including running taps and showers before use and flushing toilets), setting temperature controls, removing redundant pipework and regular cleaning of showerheads.
Tenancy Preparation
What Tenancy Agreements are used?
There are different types of Tenancy Agreement, to tailor all types of tenancy. Most agreements are Assured Short Hold Tenancies, protected by the Housing Act. This agreement gives both the landlord and tenant the greatest protection available. The standard agreements are drawn up with ARLA Propertymark guidelines and verified by solicitors. Any additional requirements can be incorporated into the Tenancy Agreements, so you can be confident that the property is returned to you in the same condition as to when it was let (allowing for fair wear and tear), provided they do not contravene any statutory regulations.
Who will hold the tenants deposit?
Unless otherwise requested we will hold the deposit as stakeholder. If the tenancy is an Assured Shorthold Tenancy (AST) we will register the deposit with the TDS deposit protection scheme. All AST deposits must be registered with one of the governments approved deposit schemes. There are currently 3 schemes which offer both custodial (deposit held by the scheme) or insured (deposit is held by the agent or landlord, but is registered with the scheme). All schemes have independent adjudicators to resolve any disputes at the end of the tenancy.
What is an Inventory, do I require one and how does it work?
An inventory is a record/schedule of a property including all fixtures, fittings and contents and their condition. This is usually both a written and photographic record and will be compiled prior to the tenancy commencing. An inventory is not mandatory, but without it you will not be able to claim any potential damages or missing items at the end of a tenancy. The cost of the inventory will depend on the size of the property and its furnishings. For managed properties we will arrange this for you prior to the tenancy commencing. This is available upon request for non-managed properties, please see our fee guide for costs.
Who is responsible for Utility Bills and Council Tax?
Generally the tenant is responsible for Gas, Electric, Water, Telephone/Broadband and Council Tax Bills throughout their tenancy (if stated in the Tenancy Agreement). Whilst the property is empty, the responsibility is the landlords. If the property is managed we will contact the service providers at the commencement and end of the tenancy with the relevant meter readings and forwarding addresses to ensure the correct party is liable for the charges and the bills are correctly addressed.
Whose responsibility is the Garden?
Unless otherwise stipulated in the tenancy agreement, the garden like utilities is the responsibility of the tenant. You must provide the tenant with adequate materials for them to maintain the garden. The garden is part of the inventory and schedule of condition, so if the property is managed we will check the tenants are keeping the garden to the required standard during the tenancy and when they vacate.
What about repairs?
It is the landlords responsibility to ensure the property’s structure and exterior (including Drains, Gutters and External Pipes) are kept in good order. As well as to keep in repair and proper working order the installations for the supply of Water, Gas and Electricity, and Sanitation (including Basins, Sinks, Baths and Sanitary Conveniences) and to space and Water Heating (including Boilers, Radiators and Central Heating System Pipes). If the property is managed, we will liaise with the tenants and coordinate any necessary works approved by the landlord. We have an extensive network of trusted local contractors to call on, who are regularly used to carry out repairs and vital maintenance work where necessary.
What if the tenant falls into arrears?
Using our managed or rent collection service, we will chase all late and unpaid rent on a regular basis. We will keep you updated and help you choose the appropriate course of action should the tenant not clear the debt or fail to vacate the premises.
What do I do if I want the tenant to leave?
If your property is let with an Assured Shorthold Tenancy and the tenant is paying the rent, you will not be able to regain possession during the first 6 months of the tenancy. If you do require your property back, or you are unhappy with your tenant, we can serve the relevant notices for you to regain possession. To regain possession of your property you must give 2 Month's Notice in writing in the prescribed format, which we can arrange for you. If the tenant refuses to leave after the prescribed notice has been served and expired the matter may need to be resolved in the courts. We can advise and assist you with the steps to take at this point.
What happens at the end of the tenancy?
At the end of a tenancy, a full check out should be carried out using the original inventory and schedule of condition, noting and providing photographic evidence of any differences in any part of the property or furnishings (damage, or items not working correctly). If the property is managed we will carry this out for you (please see fee details for price of the check out) and we will provide estimates the cost of any repairs or replacements. We will give the tenants the first option to remedy the problem, but if this is not carried out satisfactorily, we will give recommendations of the amounts to be deducted from the deposit and negotiate this on your behalf. If no agreement can be reached, we will prepare a claim with the TDS on your behalf.
