Before a property can be let, there are a number of issues that a landlord needs to address to ensure compliance with legal requirements and that the tenancy runs smoothly. Should you require advice or assistance with any of these matters,
please do not hesitate to contact us.
Important Note: A range of legislation affecting landlords has recently been introduced, relating to:
- Houses with multiple occupation (HMOs)
- Selective licensing
- Tenancy deposit protection
- Housing health
- Safety rating systems (HHSRS)
- Accreditation schemes
We are happy to provide you with information and advice on these provisions to ensure that you – and we – remain firmly on the right side of the law.
Mortgage
If your property is mortgaged, you must obtain your lender’s written consent to the property being let. They may require additional clauses to be added to the tenancy agreement which we must be made aware of. Please arrange written consent from your lender at your earliest convenience, rather than waiting until a tenant is found for your property.
Leaseholds
If you are a leaseholder, you must check the terms of your lease. If required, you need to obtain any necessary written consent before letting the property.
Subletting
Tenants require a landlord’s consent to sublet a property.
Insurance
You need to ensure that your buildings and contents insurance covers you for the letting of your property. Failure to inform your insurers may invalidate your policy. We are happy to offer advice on Landlord’s Legal Protection and Landlord’s Contents insurance if required.
Bills and Outgoings
We recommend that you arrange for regular outgoings (such as mortgages, service charges, maintenance contracts etc.) to be paid by standing order or direct debit. However, we are able to make payment of certain bills on your behalf, provided they are received in your name to our offices and that you make sufficient funds available to us. Please note that this service is only available in instances where we are managing the property on your behalf and where prior written agreement has been given by both parties.
Council Tax and Utility Bills
Payment of council tax is the responsibility of the tenant when let. During vacant periods, responsibility for payment reverts to the property owner. When unoccupied but furnished, the charge is 90% of the normal rate. When unoccupied and substantially unfurnished, there is no charge for the first 6 months and then reverts to the full charge thereafter. You should inform your local council tax collection office that the property is being let.
We arrange for the transfer of council tax and utility accounts to the tenant. Meter readings are taken, to allow closing accounts to be drawn up. We are happy to handle these arrangements for you, although in the case of British Telecom instructions are required from both tenant and landlord direct.
The Inventory
It is very important that you prepare an inventory of contents and schedule of condition for the property, in order to avoid any misunderstanding or dispute at the end of a tenancy. Without such safeguards it is impossible for you to prove any loss, damage or significant deterioration to the property or its contents. We are happy to prepare an inventory and schedule of condition on your behalf for a fee. Please note that an inventory is required under the terms of our full property management service.
Energy Performance Certificate
In order to meet the targets and objectives set by the government, and the European Directive on the reduction of CO2 emissions and improving the energy efficiency of domestic premises, new legislation requires that all new rental properties must have an Energy Performance certificate. The energy rating of a property depends on the heating system, heat loss, thermal insulation, ventilation and lighting of the property.
The report that accompanies the certificate makes recommendations that, if implemented, may reduce utility bills. The report is valid for ten years and is also valid should you wish to sell your property. It is our responsibility to ensure that a survey has been carried out on all properties that we let. Please ask us if you require further details or advice.
Income Tax
When resident in the UK, it is entirely your responsibility to inform the Inland Revenue of rental income received, and to pay any tax on that income. However, where you are a resident outside the UK during a tenancy, we as your agent are obliged to retain and forward an amount equal to the basic rate of income tax from the rental income received on a quarterly basis (minus certain expenses) unless an exemption certificate is held. We can provide you with an application for an exemption certificate, for further information please contact the Inland Revenue.