Landlord Guide

Having decided upon renting your property, you may be thinking: what now? Below we have listed legal requirements and general guidelines to assist you in preparing your property for rental.

Property Presentation

The rental market is highly competitive, in order to obtain the best possible tenants, you must present your property in the most effective way.

  • Interior walls should be of neutral colour and carpets plain
  • Fabrics and furnishings (if any) should be able to withstand reasonable wear and tear and be of suitable quality
  • Animals and their odours should be eliminated
  • The front door should be clean and the entrance hall should be clear of any obstructions as first impressions are important
  • The entire property should be clean, well-aired and the garden tidy
  • If the weather is cold, heating should be turned on and, in warmer conditions, windows opened
  • For any further advice, please contact our lettings department on 020 3372 5453 or request a valuation.

Energy Performance Certificates

As of May 2010, anyone renting or selling a property must, by law, supply an Energy Performance Certificate. Energy Performance Certificates (EPCs) give information on the energy efficiency and carbon dioxide emissions of a property. It also makes recommendations on how to reduce these.

You can view a sample Energy Efficiency Report here.

You are not obliged to act on the recommendations in the recommendation report. However, if you decide to do so, it could make your property more attractive for sale or rent by making it more energy efficient. To discuss further, please contact us.

Other Legal Requirements

  • Written consent must be obtained from your mortgage provider/freeholder (if property is leasehold)
  • Your insurance company must be notified that the property is to be rented out and appropriate insurance obtained for a tenanted property. There are specialist insurance companies who can provide this and we would be happy to assist you.
  • The Inland Revenue (HMRC) must also be informed within 6 months of letting your property, flat or apartment in the UK and failure to do so will incur penalties, interest and other consequences. The Inland Revenue are apt to deal harshly with Landlords who do not declare rental income and it is always best to seek advice on tax planning and Capital Gains Tax from a fully qualified accountant

Letting residential property is treated as a single business, even if you let out more than one property. If you let out several properties, you can offset losses from one against profits from another. You pay tax on any profit as part of your overall income. For more information, please see www.direct.gov.uk.

General Information

  • Mail should be redirected with the Post Office
  • Further copies of keys will need to be provided, at least two if you have management agents acting for you
  • Utilities such as gas/electricity/water/telephone and council tax will have to be transferred to the successful Tenant
  • An Inventory and Check-in report should be drawn up. This is an important legal document which forms an integral part of the tenancy agreement and, as such, it can be a false economy to prepare your own

The Inventory is required whether the property to let is furnished or unfurnished and accurate descriptions of the overall condition of wall/floor coverings, kitchen and bathroom fittings, to name but a few are essential. Amounts cannot be withheld from the Tenant’s deposit unless the loss or damage is proved to have been caused by the Tenant.

In the event that any dispute concerning loss or damage to your property is not amicably resolved then the matter will be referred to the courts and arbitration but should be noted that any judgment will be on the basis of written documentation – the Inventory.

Tenancy

The Housing Act 1988 (amended 1996) has given rise to two types of Tenancy: Assured and Assured Shorthold Tenancy as well as the existing Company Tenancy and Contractual Tenancy.

A) Assured Tenancy

Certain criteria have to be satisfied for a tenancy to qualify for assured status. Assured Tenancy gives the Tenant security of tenure but at a market rent negotiated between the parties. The Landlord may request back possession of the property let on an Assured Tenancy but must obtain a court order. This has its advantages but is not as flexible.

B) Assured Shorthold Tenancy (AST)

This Tenancy is attractive to Landlords as it offers market rents without security of tenure beyond the contractual term and the majority of tenancies are based on this format. However, certain criteria must first be met:

  1. The Tenant must be an individual
  2. The property must be the Tenant’s main residence/home
  3. The rent cannot exceed £25,000 per annum
  4. The Landlord must not occupy the same property

If the property is let under an Assured Shorthold Tenancy, the Landlord can issue a Section 21 Notice to guarantee possession provided the term of the Shorthold is expired and not less than two months notice has been given by the Landlord stating he requires possession. If court action is needed, this can be obtained on a number of different grounds against the Tenant.

However, it should be noted that it is a criminal offence under the Protection from Evictions Act 1977, for a Landlord to threaten or forcibly evict a Tenant from their property.

C) Company Tenancy

Is used when a Private or Public Limited Company (excluding partnership or sole trader) want to enter into a Tenancy.

There is no security of tenure and rental payments are often made on a quarterly basis by prior agreement.

D) Contractual Tenancy

Is most commonly used where the rent exceeds £25,000 per annum and both parties have the freedom to contract as they choose, but must then rely solely on the provisions of that agreement.

Marketing / Finding a Tenant

You will need to decide whether you require your agent to simply market your property and find a tenant or whether you would prefer to engage the services of their managing agents.

Whether you chose to opt for a managing agent or not, Access All Areas, as your letting agent, will firstly provide a rental appraisal which will take account of the popularity of the area, proximity to transport, rental price of similar property previously handled and decorative condition of property.

It is important to price your rent fairly but realistically in order to attract the most suitable Tenant.

Our Marketing includes:

  • For Rent Board - this is the most simple and effective marketing tool, available twenty-four hours a day.
  • Email – wherever possible, all prospective tenants who register with us are asked to provide email addresses to ensure that they are notified of any new properties as soon as possible. Therefore, we will be able to market your property to prospective tenants within twenty-four hours of receiving your instruction.
  • Mail Shots (and Telesales) - we will contact registered prospective tenants as soon as possible after receiving your instruction and your details will be forwarded to any newly registered applicants immediately.
  • Website – our website is updated daily and “full colour” details of your property are placed on our website within twenty-four hours of being placed on the market. Alongside exposure on our own site, Access All Areas is affiliated with the following national property websites where your property will also be featured: zoopla, simple2rent, homes2rent, propertyrenter, vivastreet and gumtree.
  • Relocation Agents – details will be sent to our database of relocation agents.

Full Credit Checking

Thorough credit checks are carried out on all prospective tenants. We reserve the right to decline an application where necessary in the interests of protecting the Landlord’s investment.

References

These can be obtained through us as your Managing Agent and include references from the Tenant’s employer and previous Landlord. We can also provide you with, or assist you, in obtaining a linked insurance policy to safeguard your rental income and provide legal protection, for further information please ask one of our consultants regarding Rent Guarantee.

Drafting of Tenancy Agreement/Leases

The rentals team will prepare and supply you with all legal documentation and give practical general legal advice.

Damage Deposits

This is usually equivalent to six weeks rent and is taken from the tenant to be held in our client account until the end of the tenancy.

If Access All Areas are instructed by the landlord to hold the deposit, we shall do so under the terms of the Tenancy Deposit Scheme.

The costs of everyday repairs and maintenance are the responsibility of the Landlord but, if we are instructed to manage your property on your behalf, we will pay the contractor out of the tenant’s rent. We can also organise quotes for approval on any major repair as this becomes apparent.

Under the Landlord and Tenant Act 1985, Landlords are responsible for repair of the structure and exterior of the property, together with installations for the supply of gas, electricity, water and sanitation.

If the property is not in a good state of repair at the commencement of the Tenancy, the Tenant has the right to insist that repairs are carried out and, in the event that the damage is serious, the Tenant will be entitled to consider the letting as terminated as the Landlord will be in breach of his obligations.

Collection of Rent

This is usually done on a calendar monthly basis and is forwarded to the landlord via any previously approved method after any agreed deductions have been made for contractors etc.

Legal Duty of Care

Under common law, the Landlord must ensure that properties to let are safe and failure to comply with Safety Legislation is considered a criminal offence resulting in legal action and prosecution.

As your Managing Agent, we can carry out safety checks upon your request, deducting the cost from your rent.

1. Gas – (The Gas Safety (Installation & Use) Regulations 1994 (amended 1998) – the landlord must maintain gas installations and all gas appliances through annual inspections and safety checks carried out by a CORGI registered engineer and a copy of the Current Inspection Certificate must be left at the property.

2. Electricity - (The Electrical Equipment (Safety) Regulations 1994 & Electricity at Works Regulations 1989 - the landlord must ensure that all mains voltage household electrical appliances and equipment is tested and safe to use. Any non-repairable items must be replaced and removed.

An NICEIC or similarly qualified electrical engineer must carry out these tests on an annual basis and we would also recommend this is done upon change of tenancy. All operating instructions must be left in the property for the tenant’s benefit.

3. Furniture and Furnishings – The Furniture and Furnishings Fire Safety Regulations 1988 (amended 1989 & 1993) - Soft furnishings (such as mattresses, settees, bed bases, cushions and padded headboards) must meet fire resistance standards and bear a permanent label confirming this. If compliance cannot be proven, the item must be removed and replaced.

4. Smoke Detectors – whilst only properties built after 1992 legally require the fitting of smoke detectors (Building Regulation 1991), we would strongly recommend that smoke detectors are fitted to each floor of the property being let.

NB: The penalty for failure to comply with statutory safety legislation is currently a maximum of £5,000 and/or six months imprisonment for each offence. This can be harsher in the case of injury or fatality.

The above is only a guide to the legal safety requirements and should you have any further enquiries, we would recommend that you contact a qualified solicitor who will be able to verify these in full.

Overseas Landlords

You are considered an overseas Landlord if you live abroad or go to work abroad for lengthy periods of time.

It is important to firstly note that Inland Revenue (HMRC) regulations apply even if you are a non-UK resident. Moreover, non-resident Landlords must apply to the Inland Revenue Financial Intermediaries Claims Office (FICO) for authorization (by way of an exemption certificate) to receive payment of property rental gross, that is without deduction of Income Tax by the letting agent or Tenant as required by law. NB: The above is merely a guideline and for fully qualified advice, you should contact an appropriate Accountant or Tax Expert.

If you are interested in using our letting and management services, please call us on 020 3372 5453, or request a valuation. and one of our consultants will contact you at your convenience.

A brief outline of our services:

  • Advice on letting your property
  • Rental evaluation, including property description
  • Advertisement of your rental property in local publications, on our website and on suitable property portals
  • Accompanied viewings and finding of a suitable tenant
  • Status enquiries/reference and credit check of prospective tenants
  • Obtaining security deposit/rent guarantee
  • Obtaining competitive quotes for insurance
  • Organising and/or preparing the Inventory and Check-in (additional charge)
  • Preparing tenancy agreement and legal notices
  • Arranging transfer of utilities to tenant’s name and establishing council tax and water rates in tenant’s name
  • Advising on compliance with Safety Regulations for Gas/Electricity supplies etc
  • Collecting monthly rental payments and providing quarterly accounting to landlords
  • Arranging annual gas safety checks (chargeable)
  • Periodic inspection of the property and reporting of any problems
  • Obtaining competitive quotations for repairs/maintenance and, upon approval, arranging for necessary repairs/maintenance to be carried out
  • Contacting the tenant and arranging for renewals and/or check-out as necessary

↑ Back to Top