This landlord guide answers many questions you may have about letting your property.
Who do I inform about letting my Property?
Once you decide to rent out your property you need to inform:
Your freeholder (if you are letting a freehold flat or house)
Your mortgage company
Your insurance company
What are the advantages of using President Properties to rent my property?
We will find you a tenant by marketing on all the leading portals and in The South London Press. President Properties can also manage your property for you (optional). Our years of experience can guide you through the rental process at a fraction of the cost of an Estate Agent. Some of the following are part of our Services at President Properties:
Find a tenant
Hold and manage the deposit (please read the TDSL Scheme)
Prepare and manage tenancy agreements and inventories.
Collect the rent
Deal with repairs
Serve notice on tenants to leave
Make sure the tenancy conditions are kept
Landlord and Tenant Rights Tenancies
Potential tenants are fully referenced via an independent referencing Agency. The information they gather are:
- Employers
- Personal reference
- Bank reference
- Previous Landlord (if applicable)
- Guarantor (if applicable)
What is a tenancy agreement?
A tenancy agreement is an oral or written statement of the terms of the agreement between you and the tenant.
A Tenancy will be prepared for all Tenants to sign before moving into the property (except where the Landlord provides their own).
The Agreement will include comprehensive terms for the Tenants to adhere to.
Under the Housing Act 1988 (amended 1996) an Assured Shorthold Tenancy will be used, except in cases of a company let then the relevant company Agreement will be drafted
Assured Tenancy
If the tenant moved in before 28th February 1997, and you did not tell the tenant it was an Assured Shorthold Tenancy (a Section 20 notice), then it will be an Assured Tenancy. For tenancies after that date, you will have to serve a special notice to say it is assured.
If you want to end an assured tenancy there are limited grounds upon which you can ask a tenant to leave, such as rent arrears. You will need to serve a notice stating the grounds for possession and, if the tenant does not leave, apply to the County Court for possession.
Assured Shorthold Tenancy
From February 1997 all new tenancies will automatically be Assured Shorthold Tenancies, unless you agree to something else in writing. An Assured Shorthold Tenancy must run for a minimum of six months and you cannot end the tenancy before the end of the term unless the tenant has broken the agreement in some way.
This tenancy gives you the guarantee of getting the property back once the agreement comes to an end. You do not have to give grounds for possession but you must serve a two months’ written notice, which cannot end before the fixed term is finished.
If a tenant does not leave after the notice expires you are required by law to obtain a possession order from the county court. However, this is a relatively simple process.
Who hold the Deposit?
President Properties are part of the Tenancy Deposit Solutions Ltd (TDSL). A government approved insurance-based deposit protection scheme for Landlords and Agents.
Arrangement will be made to collect a deposit of 6 weeks rent from the prospective Tenant at the start of the tenancy to cover for any dilapidations and damage plus for any breach of their Tenancy Agreement obligations.
Rent Payments
The first month’s rental is collected in advance. It will be up to the Landlord to collect any future rents from the Tenant if we are providing a Tenant find only service.
If you chose the Rent Collection Service or the Full Management services the rent is paid into your Bank Account or Forwarded onto you within ten working days each time the rental is paid by the Tenant.
Will I have to pay income tax on my rents?
Any rent received from letting accommodation is an income and must be declared to the Inland Revenue. You may not have to pay tax on it and allowances are made for landlords’ costs, such as legal costs, the costs of renewing fixtures and replacing furniture in the property.
If you rent out a property which you have bought but never lived in, you may be liable to pay Capital Gains Tax when you come to sell it. You may also lose tax relief if you have a mortgage.
If you are non-resident in the UK you or your agent is still liable for income tax on the rent received.
What about safety Regulations?
The following regulations must be adhered to without fail by the Landlord and as Agents, we must ensure that they are carried out.
A qualified Engineer (CORGI or British Gas) must check all gas appliances and fitted installations annually.
This includes such items as Gas Fires, Central Heating boilers, Gas cookers and other gas appliances. It also insists that flues and chimneys are clear of obstructions and in the correct place.
The engineer must issue a certificate and a copy presented to the Tenant at the start of any tenancy.
Any items that fail to comply with the regulations must be fixed or removed immediately.
These regulations require that all Electrical equipment left at the property be ``safe and of no risk or injury to human or animal``.
They should be checked that flexes, fuses and electrical output are safe and correct.
Items that must comply are all portable electrical items such as electric cooker, fridge’s, washing machines, kettles, toasters etc.,
At President Properties we cannot certify which items are safe or not and will recommend that a qualified electrician checks these items (a charge will be made). This can be carried out by your own electrician.
All soft furnishings such as settees, sofa, beds, padded chairs, pillows cushions and soon must comply with the Fire Resistance requirements contained within the regulations. Items of furniture made prior to 1950 are termed as antiques and as such are excluded from the regulations.
Usually a label is attached to the item of furniture to confirm it is acceptable.
Transfer of Services
If you have employed us as your Managing Agents the only service that we are not able to transfer for you is the telephone, as BT or cable will only deal with the subscriber and not with a third party. Please, therefore, arrange transfer on the day the Tenants take occupation if possible. Your assistance will also be welcome with any final meter readings.
If we are not managing the property, you will need to arrange the following: -
Gas and Electricity
Inform them of the date of transfer to the new Tenants, plus their names the meter reading and you’re forwarding address in order that they can send you a closing account.
Water Rates
Water Rates will become the Tenant’s responsibility in most cases, but please advise them of your new forwarding address. If your water charges are on meter the tenant is responsible and a meter reading and date of transfer needs to be supplied to the Authority together with your forwarding address.
Council Tax
If the accommodation is self-contained, then the tenant must by law register for Council Tax. If you have joint tenants, they must each pay their share of the Council Tax.