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Guidance Notes for Prospective Landlords

We are members of R.I.C.S. (Royal Institution of Chartered Surveyors), and as members we are required to offer you the best service. There are a number of questions that are regularly asked by prospective landlords. This Guide has been prepared in simple question and answer form to reply to many of your questions. Our letting staff will be pleased to discuss all these points and any other questions you may have.

IS THERE A GOOD DEMAND FOR RENTED PROPERTY?

 This obviously varies from time to time and from area to area, but our experience is that there has always been a steady demand for good quality residential property to let at sensible rents.
top CAN I BUY A PROPERTY TO LET AS AN INVESTMENT? Yes. We will be pleased to discuss this with you. However, we regret that we are unable to manage properties which are classed as Houses in Multiple Occupation (HIMOs) by the local authority. Further information is available from North East Lincolnshire Council.
top SHOULD I INFORM MY MORTGAGE LENDER? Yes. You must, as landlord, obtain permission from you lender before you let your property. We will be pleased to advise you how to ask for this, since failure to obtain your mortgage lender's consent will normally be a breach of your mortgage conditions.
top MY PROPERTY IS LEASEHOLD, CAN I STILL LET IT OUT? Maybe. Some ground leases prohibit subletting or impose restrictions on the length or type of tenancy under which the property is let. You may be required to seek the permission of the ground landlord prior to any letting. If you are at all unsure you should seek advice from your solicitor or from your landlord or his agent.
top WHAT IS THE INCOME TAX POSITION ON RENTS I RECEIVE? It will depend very much on whether you are resident in the UK for income tax purposes or a non-resident living abroad. If you are resident in the United Kingdom you should deal directly with Inland Revenue yourself. If you are living abroad or move abroad whilst your property is let it is possible for you to apply to Inland Revenue to allow us to pay rental income direct to you with no income tax deducted. Forms are available at our office. If exemption is not requested or granted we are obliged to pay tax at basic rate every quarter to the Inland Revenue. We strongly recommend that you discuss your tax position with your own tax adviser.
top WHAT TYPES OF TENANCY ARE AVAILABLE? Since 15 January 1989, the Housing Act 1988 gives landlords who are letting their properties to individuals the choice of 2 different forms of tenancy known as an 'Assured Tenancy' or 'Assured Shorthold Tenancy'. New legislation which came into force on 28 February 1997 means that most agreements are, 'Assured Shorthold Tenancies'. However, our letting specialist will be pleased to advise you which is the most appropriate: tenancy for you. In most cases, this will be an 'Assured Shorthold Tenancy'.
top HOW LONG DOES THE TENANCY HAVE TO BE? Both 'Assured Shorthold Tenancies' and 'Assured Tenancy can be for any period of time. However, in our experience it is not worth letting a property for less than six months.
top DO YOU PREPARE THE TENNACY AGREEMENT? Yes. We have our own tenancy agreement and specimen cop are available for your perusal
top WHO SIGNS THE TENANCY AGREEMENT? Both the landlord and the tenant sign the agreement. We can sign the tenancy agreement on your behalf as your agent, if you wish.
top HOW DO YOU GO ABOUT SELECTING A TENANT? The selection of the tenant is one of the most important parts of letting a property. We will make our best endeavours to find a reliable tenant including taking up references for applicants.
top HOW LONG DOES IT TAKE TO FIND A TENANT? This will depend very much on market conditions. If there are no suitable applicants for your property for some time it may necessary to employ a cleaner to re clean to improve marketability. If your property is vacant during times of cold weather we will instruct a plumber to drain down water/central heating systems to minimise the risk of water damage to your property.
top IS IT NECESSARY TO ADVERTISE MY PROPERTY TO LET? Generally yes. The choice however is yours.
top CAN I LET MY PROPERTY TO A COMPANY? Yes. Companies are usually seeking good quality residential accommodation for their employees or visitors. Please contact to discuss letting your property to a company
top DO YOU TAKE A DEPOSIT FROM THE TENANT? Yes. This is usually equal to four weeks rent. We only return the deposit to the tenant when he/her has given vacant possession of the property and has left it in a satisfactory condition, allowing for fair wear and tear, and has complied with his responsibilities under the tenancy agreement.
top HOW IS THE RENT PAID TO ME? We will collect and pay you the rent at regular intervals. If you prefer we will pay it into your bank or building society account. A statement showing all amounts received and paid will be sent to you quarterly.
top SHOULD I LET MY PROPERTY FURNISHED OR UNFURNISHED? The choice is entirely yours. However, strict laws apply to soft furnishings in rented property [The Furniture and Furnishings (Fire) (Safety) Regulations 1988 (as amended)] All soft furnishings including sofas, settees, seat pads, beds, headboards, pillows, armchairs, scatter cushions, futons, mattresses and bean bags in newly let property must carry a label to certify that it has passed the tests specified in these regulations.
top CAN THE TENANT HAVE THE RENT REDUCED? If the tenancy is an assured shorthold tenancy or assured tenancy under the Housing Act 1988 (as amended), the rent agreed in the tenancy agreement is binding on the landlord and tenant. The rent can only be changed by agreement or as provided in the terms of the tenancy. In some cases, but rarely, the tenant may have the right to refer his rent to a rent assessment committee for review. However, recent legislation prohibits tenants of assured shorthold tenancies from applying to the rent assessment committees once 6 months have elapsed since the beginning of the tenancy.
top WHAT HAPPENS IF THE TENANT DOES NOT PAY HIS RENT? We will use our best endeavours to ensure that the rent is paid. Careful selection should minimise problems but if the tenant does not pay his rent and we are providing a management service we will tell you how to apply for a court order for arrears of rent and possession if this is necessary.
top WHAT HAPPENS ABOUT PAYMENT OF UTILITIES? We will advise you on how to ensure that the tenant takes over responsibility for payment of Council Tax and utilities at the property, and we will write to them accordingly with the exception of British Telecom or NTL who will not accept information from agents. You will be liable for payment of these accounts whilst the property is not let. You should arrange to have your telephone service terminated when you leave the property. Anglian Water will charge a sewerage standing charge on a daily basis for any period that your property is vacant. Where there is a meter the charge is levied when the property is reoccupied. However when the property is not on a metered supply the charge is levied from the vacation date to the end of the authorities' financial year.
top WHO IS LIABLE FOR REPAIRS? Generally, you will be liable to carry out most repairs to the property. Where we manage the property we can arrange repair works for you: we have a list of reliable contractors. If you wish, you can tell us only to use certain people to carry out any necessary works.
top IS THE TENANT CHARGED FOR DAMAGE? Yes. Any damage will be paid for out of the tenant's deposit. If the cost involved is more than the deposit the tenant will be liable to pay you the difference.
top CAN YOU ARRANGE FOR THE CLEANING OF THE PROPERTY? Under the tenancy agreement the tenant must keep the property clean. If it is left in a dirty condition we can arrange professional house cleaning, the cost of which will be payable by the tenant. (If the tenant cannot be found you will have to pay the cost.) However, after a property is let for two or three years on short term tenancies, wear and tear may occur that is not the liability of any one tenant. We would therefore advise you to have periodic professional cleaning and re-decoration carried out.
top SHOULD I HAVE AN INVENTORY OF CONTENTS? Yes. An inventory is essential. This will be drawn up by us before the tenancy agreement is completed. The inventory will be checked at the end of each tenancy. There will be some wear and tear to items left in the property and decorations during the course of a tenancy.
top WHAT SHOULD I DO ABOUT THE MAINTENANCE OF APPLIANCES?

This is your responsibility and we advise all landlords to ensure that the central heating is serviced, and electrical appliances are in good working order before the property is let. We will be pleased to have details of maintenance agreement insurance that cover appliances that need to be maintained. Instructions for all appliances should be made available for the tenants at the beginning of a tenancy.

The Gas Safety (Installation and Use) Regulations 1994, which came into force on 31 October 1994, impose certain requirements on landlords. Where you ask us to manage a property for you, we will ask you to agree to comply with these Regulations in so far as they affect you. We will arrange gas safety checks, where necessary, at reasonable cost.
top WHAT PRECAUTIONS ARE TAKEN WHEN THE PROPERTY IS EMPTY? Vacant properties are always at risk. During the winter months, if your property is vacant, we can arrange, at your expense, for the property to be drained of all water, or for the central heating to be run on a low setting. We will tell the tenant that it is his responsibility during the tenancy to take precautions to protect the property against damage by frost, ice, etc. You must advise your building and contents insurers if the property is to be left empty for a period of more than 30 days or for such other period as specified in your policy.
top WHAT HAPPENS ABOUT THE BUILDING AND CONTENTS INSURANCE? This remains your responsibility. You must tell your insurers in writing that you are letting your property. You may find your contents insurers will impose certain restrictions on your insurance cover for things you leave in the property whilst it is let.
top WHAT HAPPENS ABOUT THE INSURANCE OF THE TENANT'S POSSESSIONS? This is the tenant's responsibility. We will advise the tenant before moving in to check that everything brought into the property is insured.
top WHAT HAPPENS ABOUT THE GARDEN? Under the terms of our Tenancy Agreement the tenant is responsible for the maintenance of gardens. You should leave appropriate garden tools at the property, especially a lawn mower. The tools will be listed in the inventory. If the tenant fails to maintain the garden to a reasonable standard we can arrange for it to be attended to: the cost will be charged to the tenant.
top ARE PETS ALLOWED? They are specifically prohibited in our Tenancy Agreement, although special consent can be given, if you wish it.
top WHAT HAPPENS ABOUT ANY POST THAT COMES WHILE I AM AWAY? It is your responsibility to ensure that your post is re-directed by the Post Office.
top ARE THERE ANY ADDITIONAL CHARGES? We will agree all our charges with you when you agree to use our services. We will also inform you if there are any additional charges that may arise while your property is let. These charges are set out in our Terms of Business.
top WHAT DO I NEED TO DO NOW? Request us to visit your property to assess a rental level, give advice and explain our services. This service is free of charge. Sign and return the Terms of Business and Information Form and instruct us to start marketing your property.

 

 

 
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