We realise that in the past, property rental was fraught with dangers. Rent controls, Protected Tenancies, difficult tenants, etc made renting property rather unappealing. However, the Housing Act of 1998 has made significant changes. Now you can let a property with the assurance that you can regain possession. Reasonable rents are unlikely to be challenged and, if you allow us to find your tenants, the vetting we carry out minimises the likelihood of a bad tenant.
Whichever service you choose to take with us, all prospective Landlords must ensure that their property is in a suitable condition to let. At Priory Estates we are not just Letting Agents; we are also active in the property market ourselves and are well placed to provide Landlords with information about all aspects of the property investment market.
Property Presentation
The decoration and cleanliness of a property is a major factor in finding a suitable tenant quickly and obtaining a good rent. We prefer to only handle property in good condition because if the tenant feels that, as a landlord, you look after the property, then it often follows that they are more likely to copy your example.
We recommend using neutral colours if Landlords are contemplating any decoration works. Carpets are a major factor in making a property look good for rental. We recommend that these are also in a neutral colour but are as hard wearing as possible.
Properties should also be clean and tidy throughout. If required, we will arrange to have the property professionally cleaned prior to a new tenant moving in.
Like the property itself, any gardens should be well kept and maintained by the tenants. Some tenants will use the garden more than others so a simple garden is easier for them to handle. If the garden is particularly important or has special features, we usually suggest that a gardening service is provided by you.
The extent of the above can be negotiable and we will make the necessary arrangements and monitor the work as part of our management service.
Preparing Your Property To Let
Getting a property ready to sell is very different to getting a property ready to let and there are some key differences which we will highlight over the following pages.
Like all businesses, health and safety is paramount and all Landlords must follow certain regulations to comply with the Law and protect their tenants and more importantly themselves.
Energy Performance Certificates
The Energy Performance Certificate (EPC) is now a legal obligation not just for those selling their house, but also for those looking to rent. The certificate gives homeowners, buyers, landlords and tenants information pertaining as to how efficient a property is when it comes to carbon emissions.
No residential property can be marketed without a report available to hand for all to see. An EPC is only required for self contained properties and is valid for 10 years.
The recommendations listed in the report are not mandatory but should you choose to undertake any works as a result of the EPC, Priory Estates would be happy to arrange and monitor these works on your behalf.
We are pleased to inform you that we have an on site contractor qualified to carry out your EPC.
Landlords Gas Safety Certificate
Gas appliances and flues in rented accommodation must be checked for safety within 12 months of being installed and thereafter at least every 12 months. We can also confirm that Gas BBQ’s that are to be left with property are now also required to be checked.
Before any new tenancy or lease commences it must be ensured that the Gas Safety Check has been carried out on each appliance and flue within the 12 month period before the tenancy commences or has been or will be carried out within 12 months after the appliance or flue was installed, whichever is the latter.
All works must be carried out by a Gas Safe registered engineer.
Fuel Take Over
Some properties may use oil, bottled gas, logs or other un-metered fuel. We will assess the amount taken over by the tenant left at the end of the tenancy. The tenant is then charged or paid for the difference.
Septic Tanks
If your property has a septic tank you should already be aware of how often it needs emptying and have a contract for the work. During the tenancy you remain liable for paying the contractor to see that this is done. We will need to know the details of the contractor and the likely frequency of emptying for our records.
Furniture & Furnishings (Fire) (Safety) Regulations
In most cases furniture to be left in the property needs to be compliant with the Furniture and Furnishings (Fire) (Safety) Regulations 1988. Landlords must ensure that all upholstered furniture left at the property must have fire resistant filling and pass the ‘match’ and ‘cigarette’ test to comply. The only way for a Landlord to demonstrate compliance is with a permanent label, which confirms that the item meets the required standards. The regulations make it clear that there must be no non-compliant furniture on any part of the property including garage, attic and even areas where the tenant is not to have access.
Electrical Equipment (Safety) Regulations 1994
In order to comply, a landlord must ensure that all electrical equipment in the property is safe. Therefore, in order to minimise risk the Landlord should;
Ensure there are written instructions for all electrical equipment in the property.
Arrange for a safety check to be carried out by a qualified electrician preferably annually or when a tenancy changes. You should provide Priory Estates and the tenant with written proof of the safety check prior to the tenancy commencing.
Supply the manuals for any electrical appliance that is left at the property. If they are new please leave us a copy of the guarantee.
Smoke detectors are not a legal requirement but like electricity should the unthinkable happen you could regret not fitting one.
Inventories
Every Landlord should have an Inventory for their property; this will outline not only what is in the property, but also what condition it is in.
The inventory will also point out the condition of walls, curtains, carpets, bathroom, kitchen appliances, garden and the property as it stands.
All inventories should be prepared by an Inventory Clerk who will go through your property with a fine tooth comb and note everything.
A judge will not rule in favour on an Inventory prepared by a Landlord, because they will see it as an amateur attempt to fulfil a duty.
An Inventory should be backed up with pictures which are signed and dated, and more modern; a Video Inventory – a service now available through Priory Estates.
Deposit Regulations
Priory Estates always collect a security deposit equivalent to a minimum of one month’s rent, plus £100. At the end of the tenancy this is returned to the tenant less any deductions made to cover breaches of the Tenancy Agreement. We are unable to refund all or part of the deposit to the tenant without your consent. Similarly, we are unable to deduct monies from the deposit without the tenants consent.
Recent legislation made provision for both the protection of the tenancy deposit and the resolution of disputes over their return. The legislation came into effect on 6th April 2007. All deposits taken for Assured Shorthold Tenancies after that date must be covered by a tenancy deposit protection scheme.
As well as registering the tenants deposit we must, within 14 days of receiving it, give the tenant details about how their deposit is protected.
At the end of the tenancy if an agreement is reached about how the deposit should be divided, Priory Estates will return all or some of the deposit. If there is a dispute, Priory Estates must hand over the disputed amount to the scheme until the scheme administrators have resolved the dispute.
Overseas Landlords Tax Requirements
Income from letting your property is subject to UK tax under the UK Taxes Act, whether you are resident in this country or residing abroad. As a landlord you are able to deduct any allowable expenses.
In line with the start of Self Assessment, new rules came into effect from April 1996. Under these rules, a non-resident landlord can apply for an Exemption Certificate that will allow you to receive rental income gross (i.e without deduction of basic tax rate), provided that:
Your UK tax affairs (including payment of Tax) are up to date, or
You never had and UK tax obligations, or
You do not expect to be liable to income Tax
If you can fulfil any of the above conditions you can apply to HMRC for Exemption Certificate. Once you have received the certificate, you will need to forward it to Priory Estates before your rental income can be paid gross.
We can provide advice and application forms for this. If the property you have with us is in joint names, a form has to be completed by each party. Neither your agent or accountant can file the application on your behalf – it must be done by you.
In the event that you do not apply for an exemption or we do not receive a certificate we will be required to deduct tax at the basic rate less allowable deductions, and we will make payments to HMRC each quarter. In line with the new rules, where tax is deducted we will provide you with a Tax Certificate for use when preparing your tax returns.
Landlords themselves will be required to calculate their own tax liability and submit figures to the Revenue directly as opposed to the agent via the Self Assessment Scheme.
As part of these regulations, Priory Estates will carry out the following procedures for all overseas landlords:
Deal with Exemptions, as and when received
Provide an annual income and expenditure account to each owner
Supply you with an annual tax certificate in line with HMRC requirements for your use when preparing your own tax returns with effect from the 1996/97 tax year. To deduct and account for tax if an Exemption Certificate is not held
Provide quarterly/annual returns and information to the Revenue
There will be a fee for this service per tax year.
Utilities
We suggest the Landlord contacts all service providers to advise that you are no longer responsible for the bills and we will remind the tenant to arrange for them to be put in their name. If we are managing your property, we endeavour to take meter readings on the day the tenancy begins.
If you have a homecare service plan for your boiler it would be advisable to ensure that it covers ALL gas appliances within your property in the event of a breakdown.
The details of any warranties and service cover agreements must be supplied to Priory Estates before the tenancy starts. Where these details are not supplied and a third party attends a breakdown, Priory Estates will not be held responsible for the cost.
The liability to pay Council Tax is that of the tenants during the term of the Tenancy Agreement. The Landlord is liable during all other times. We recommend to all Landlords that they de-register for Council Tax as soon as the tenancy start date has been agreed. We will provide the Council with the names of the tenants moving into the property on your behalf.
Buildings Insurance is the Landlords responsibility and it is essential that full cover is provided for the property, including your own personal contents and public liability. This applies to furnished and unfurnished properties and cover varies. You should inform your insurers of your intention to let the property, failure to do so my affect any claim. Priory Estates can introduce you to suitable insurers if you wish.
Keys
Our agency requires two sets of keys for your property including internal and external doors and other locks in use. One set is given to the tenant and one is retained in the nearest office to your property. If you do not have sufficient keys we can get extra keys cut for you and charged to your account. Priory Estates will not release any keys until the tenant moves in.