THE ADVICE PROVIDED WITHIN THIS DOCUMENT IS PROVIDED TO ENSURE YOU ARE AWARE OF YOUR BASIC OBLIGATIONS AND RISKS WHEN RENTING OUT A PROPERTY. IT IS NOT DEFINITIVE AND IT CANNOT BE ASSUMED IT IS COMPLETELY ACCURATE. YOU SHOULD MAKE YOUR OWN ENQUIRIES REGARDING OBLIGATIONS THAT MAY APPLY TO YOUR CIRCUMSTANCES AND PROPERTY.
IF REQUIRED, WE CAN ASSIST WITH FURTHER INFORMATION ON ANY OF THE MATTERS OUTLINED.
CERTAIN OBLIGATIONS ARE HANDLED BY US AS PART OF THE SERVICES WE PROVIDE TO YOU. SEE OUR TERMS OF BUSINESS FOR CLARIFICATION OF WHAT IS INCLUDED WITHIN THE DIFFERENT SERVICES. EVEN IF THE OBLIGATION IS NOT HANDLED AS PART OF THE SERVICE YOU REQUIRE, WE WILL BE ABLE TO ASSIST YOU IN MEETING IT. PLEASE ASK US FOR FURTHER INFORMATION.
It is essential for formal permission to be obtained from any mortgage lender. If you have an existing mortgage secured against the property you propose to let you must approach your mortgage company before entering into any formal tenancy agreement. Most Lenders publish a list of conditions to be met, including sight of the Tenancy Agreement, before they will grant permission. Most would charge a nominal sum to cover administration costs. We require confirmation from you that permission is, or will be, granted before proceeding to find a tenant. If the mortgage lender imposes any special conditions on the letting of the property you must inform us prior to a tenant being found, because once a tenancy is granted no further conditions can be imposed upon the tenant or inserted within the tenancy agreement.
In the case of leasehold property, the Head Lease may make specific reference to sub-letting which may mean you require permission to sub-let from your Superior Landlord. Also, some management committees require an interview with prospective tenants. Often the lease will contain covenants affecting the tenant, so we will require a copy of the lease to pass on to any tenant. If your lease requires consent from the superior landlord prior to letting it is your obligation to obtain consent and to pay any costs incurred to obtain the consent.
If you are a Lessee and pay periodical payments to a Landlord or an estate management company you should arrange to pay these direct. It is not the Tenants responsibility to pay management fees/ground rent on your behalf. You may also need The Lessor’s written permission to let your property and you should check the terms of your Lease for this.
We suggest you consider registering, at the commencement of the tenancy, on TAP (tenant address portal for water billing in England and Wales). This can protect you from becoming liable for any unpaid water bills the tenant may incur.
The ruling for council tax varies from council to council and you should therefore check on the official government website to clarify whether you are able to apply for any discounts whilst your property is in a void period. Whilst a tenancy is active Council Tax is the responsibility of your tenant. However, if your tenancy goes into a periodic contract this may affect Council Tax responsibility. Please use this link to investigate your own personal situation.
You should make certain that your property and any contents that you leave as part of the tenancy agreement are adequately insured and that your policy covers you for letting out the property and includes public liability insurance. Many domestic household policies will not be sufficient. Check with your insurer. It is your responsibility to make sure this insurance remains in force during the full term of the tenancy.
A valid EPC is required for all properties offered for rent. The energy rating of a residential property must be at least E rated for any new tenancy due to the 2018 Minimum Energy Efficiency Standards requirements. Residential Properties rated F or G cannot be rented out, unless you have a personal exemption that is registered on the Private Rented Sector Exemptions Register.
Tenants may leave the mains water on; central heating systems running; mains electric on and more. We do not accept any responsibility or liability for tenant’s actions on vacation of the property. In void periods you are responsible for all utilities, council tax and insurance. You are advised during the winter months to ensure that water systems are drained down or leave some form of heating on to avoid burst pipes.
If a telephone service is currently supplied to your property, then it is usual for you to terminate the supply with British Telecom or whoever your supplier is prior to placing the property on the market for rent. The tenant will then enter into a new agreement with whichever supplier they choose and, since this becomes a private arrangement, the telephone number may be altered without reference to you. Should any tenant not require the telephone service, it is their choice, you cannot require them to maintain a telephone at the property.
Before vacating the property it is advisable to arrange for the Post Office to re-direct mail, since neither we, nor the Tenant can be held responsible for your mail, which may go astray.
Where the property has a gas supply the Gas Safety (Installation & Use) Regulations 1998 require all landlords to have all gas appliances and installations inspected prior to a tenancy commencing and on an annual basis thereafter. The work must be carried out by a qualified GASSAFE technician. We will require a copy of the technician’s GASSAFE registration and public liability insurance as well as a copy of the safety check report prior to the start of the tenancy, as this must be passed to the tenant at the start of the tenancy and annually thereafter.
It is advisable to have your electric wiring checked by a qualified electrician prior to renting out your property and then at least every 5 years thereafter. All portable electric appliances included within the tenancy agreement should also be checked to confirm they are safe in accordance with the Electrical Equipment (Safety) Regulations 1994 and the Consumer Protection Act 1987, before the commencement of a tenancy and on a regular basis thereafter.
Any upholstered furnishings (excluding carpets and curtains) that are left in furnished properties must conform to the Furniture & Furnishing (Fire) (Safety) (Amendment) Regulations 1993 and have the original manufacturers labels attached to them. Where we manage the property, we reserve the right to remove the item from the property and to store or dispose of it if no label is attached, at your expense.
You are required to undertake a risk assessment of the water systems within the property to be rented out. You have a legal duty to ensure that the risk of a tenant's exposure to Legionella is properly assessed and controlled. You can carry out a risk assessment yourself or employ a professional to carry it out for you. Go to www.hse.gov.uk/legionnaires
If internal glazed doors and partitions are fitted it is important that they are either glazed in toughened glass, have safety film over them or the panels are taken out.
All internal window blind cords must meet British Standards for safety of children. If children were to reside at the property you would not be permitted to rent it out unless the internal window blinds cords complied with the minimum breaking point required. Blinds on the market currently do comply, but please ask if you require more information.
All properties built from June 1992 must have mains fitted smoke alarms with battery backup. All other older properties must also have smoke alarms fitted in an appropriate place on each floor of the property. These can be mains or battery operated. It is your obligation to be able to show that they were in working order at the start of the tenancy. Instructions on the use of the alarms must also be provided to the tenant. As part of the tenancy the tenant will become responsible for changing the batteries once the tenancy starts.
A carbon monoxide alarm is required in any room of the property that contains a solid fuel burning combustion appliance. These alarms can be mains or battery operated. It is your obligation to be able to show that they were in working order at the start of the tenancy. Instructions on the use of the alarms must also be provided to the tenant. As part of the tenancy the tenant will become responsible for changing the batteries once the tenancy starts.
These appliances must be safe and as such a safety certificate is expedient and can be provided by a engineer from the Heating Equipment Testing and Approval Scheme (HETAS) prior to the commencement of a tenancy.
Suitable banisters/hand rails must be fitted to stairways and be properly maintained to reduce risks to tenants.
These are a fire hazard and should be removed before a tenant can occupy the property.
If such a system is installed in your property, you will need to take a tank reading prior to any tenancy starting, together with the capacity of the oil tank. This and full details of the supplier must be provided to the tenant. We recommend that all oil appliances are serviced and safety checked regularly.
If there is a pond in the garden the property precautions must be taken to make the area safe regardless of whether young children will be occupying the property.
This is a vital process for you, especially where a security deposit is taken. It is your obligation to PROVE that the tenant damaged your property/contents. Therefore, if the tenant causes any damage and you do not have an inventory and schedule of condition report undertaken there is little chance of retaining any of the deposit at the end of the tenancy. Furthermore, if the damage repairs cost more than the deposit amount it will be very difficult to succeed with any civil claim against the tenant to recover those costs. Please ask us for more information.
If you have a Maintenance & Service Agreement provide details to the tenant, including the relevant Service Contract number and who to contact. A copy of the contract should be left at the property for use by the tenant in case of emergency.
It is not your responsibility to replace fitted carpets during the period of a tenancy unless they provide a risk caused by fair wear and tear. We recommend that you provide fitted carpets where appropriate to attract a tenant. If your property is an upper floor self-contained converted flat, then the floors must be hard boarded to create a fire barrier before the carpets are laid.
It is possible to let your property either furnished, part furnished or unfurnished. However, fitted carpets and curtains should remain in all properties. Most tenants prefer unfurnished properties. If you leave equipment such as washing machine, dishwasher, freezer or similar items these can be included in the inventory with the stated observation that any repair costs due to accidental damage will be at the tenant's expense. Please remember that your property will be subjected to the stresses and strains of everyday living and you may incur costs due to fair wear and tear of any items you include within the tenancy agreement. We must emphasise that it is vital you remove any items not easily replaceable or of exceptional value.
For the tenant’s safety and to ensure they look after your property and contents you must provide instructions for the safe use of anything remaining at the property. In particular instructions for use of central heating systems, cookers and other electrical and gas appliances must be provided. Additional guidance notes should be provided detailing where stop cocks, meters and burglar alarm controls are situated.
You have a legal responsibility to keep the structure and exterior of the property in good repair including walls, roof, guttering, drains, external pipes and any flagstones or steps giving access to the property. You must also keep in good repair and “proper working order” all installations for the supply of gas, electricity and water, sanitary installations and any installations that provide heating or hot water. To avoid unnecessary bills, it is sensible to have any major items of equipment serviced prior to a tenancy and to consider taking out service contracts.
During the winter months, if the property is unoccupied, we would recommend the general plumbing and central heating systems are drained down. We can undertake to carry out this work if requested, the charge being paid from the rental account.
Tenants will not generally maintain the garden if it is not in good order when they take up occupation. We therefore recommend the garden is presented in a good order at the start of any tenancy. In certain situations it is advisable to include appropriate gardening equipment within the tenancy to assist the tenant and ensure the garden is maintained to a good standard.
Assured Shorthold Tenancies are the most common, depending on circumstances. If appropriate, we will advise you of alternatives. The initial term of the tenancy can vary but it should never be less than 6 months. We can advise you the appropriate term depending on your circumstances and requirements. You may wish to consult a solicitor to ensure you are aware of all the legal implications of renting out a property.
The rent quoted to a tenant should exclude all outgoings for which you are responsible (i.e. property buildings insurance, ground rent, service charges etc.). You are not responsible for gas, electricity, telephone, water rates including sewerage and environmental charges, fuel oil (if applicable) and the council tax; all of these are the tenants responsibility.
No matter how carefully a tenant is vetted, the future cannot be predicted. Redundancy, lengthy illness or matrimonial upset all affect tenants who may then not pay the rent or abscond. Sometimes, these and other problems can only be resolved by legal action and we would recommend you take out a legal protection insurance policy to cover any costs that would be incurred.
Unless the tenant voluntarily surrenders possession of the property it will be necessary to serve the tenant with a valid notice to vacate the property. The precise form of notice, length of notice and expiry date depends upon the type of tenancy that has been granted. Sometimes a tenant will fail to comply with a notice and you will need to commence county court proceedings to obtain a possession order. Where you instruct us to manage your property we can assist in this area on your behalf.
A HMO is a “house occupied by persons who do not form a single household”. If the house is going to be in multiple occupation it must be licenced with the local authority. Local authorities have differing standards depending on a host of issues relating to the property. Compliance is vital and so you should determine what these requirements are before considering making the property available as a HMO. Should you wish to market your property as a HMO through us we will require copies of all relevant documentation and your HMO licence prior to marketing.
The income from letting your property is taxable. It is in your best interest to seek qualified advice from a Tax Advisor or accountant. The Inland Revenue instruct Letting Agents annually to provide details of all Landlords. We provide monthly financial statements to assist you in this aspect of your financial planning.
If you are a member of H.M. Forces you will be responsible for the payment of tax direct to PD5 at Cardiff, subject to us receiving a waiver of liability from that Department. If we do not receive a waiver we will deduct tax at basic rate and send the money to the Inland Revenue quarterly.
If you are a civilian resident outside the U.K. for more than six months in any tax year, whether for work purposes or other reasons then the tax authorities will assess this company for tax due. In these cases we must retain a portion of the rental to meet this tax assessment, unless we have authority from the Inland Revenue to pay the rent to you without making a retention for tax. You can obtain an approval number from the Inland Revenue. Information and forms can be found online at the non-resident landlord section of the HMRC website: https://www.gov.uk/government/publications/non-resident-landlord-application-to-have-uk-rental-income-without-deduction-of-uk-tax-individuals-nrl1
Please note that your tax affairs must be up to date to qualify for this approval. Until that approval number is given to us by the Inland Revenue we are legally obliged to deduct tax from your rental income at the prevailing rate. This money is forwarded to the Inland Revenue on a quarterly basis. If you are not accepted into the Non-Resident Landlord Scheme we must deduct tax from your lettings income. If the tenant pays you direct and he has not received approval from the Inland Revenue to pay the rent gross he must deduct tax and forward that to the Inland Revenue on your behalf. No person is exempt from this scheme.
85-87 Bayham Street
Camden Town
NW1 0AG
