lettings guide
Orchards www.orchardsuk.com
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Your guide to letting through Orchards Orchards lettings and property management is structured to deliver results. From high profile marketing to a first class management service we are committed to your demands. As landlords ourselves we know what you want and we treat each and every property as our own.
Contents The valuation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 A tenant magnet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Maximum exposure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6-11 Tenant referencing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 Rent guarantee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 Experts in property management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 Which service do you require & Our fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 Legals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 FAQ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 Useful numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19
The Clock House • Bedford Street Ampthill • MK45 2NB
Ampthill: 01525 40 22 66 ampthill@orchardsuk.com
www.orchardsuk.com 3
The Valuation
Orchards have let over 2000 properties and have hundreds under management. When it comes to letting property we know our market! We can advise you on current market conditions and the best possible achievable rent.
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Tenant Magnet Orchards consistently take on more properties in Mid Bedfordshire than any other agent. Due to our high profile marketing we attract hundreds of new tenants each month.
We quite literally are a magnet to tenants. Official figures taken from rightmove.co.uk August 2012
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MAXI MUM EXPO SURE 6
• High quality, professional images • Floor plans • Virtual tours • Stunning property brochures
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Rightmove Premium Listings Stand out with Rightmove Premium listings Premium listing
Standard listing
On average Premium Listings attract 41% more views and 31% more enquiries for your property. Premium Listing increases your chances of a successful let.
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Open Later when your tenants want us to be
We personally conduct 100% of all viewings and many of these are carried out between 6pm and 8pm. We are also available 7 days a week and on bank holidays. 9
Be in the hands of
hundreds of tenants in seconds...
Your property will be in front of hundreds of potential tenants within seconds of listing via SMS and email 10
The Right Tenants
Orchards have hundreds of professional tenants, ready and willing to pay top market rent
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Tenant Referencing How do we ensure we only deal with the best possible tenants.
Tenant referencing provides you with relevant information to make an informed decision on a prospective tenant’s suitability. This is done by checking whether they have been bankrupt, work where they say they work, earn enough to pay the rent, have not been able to pay their rent in the past, and check that they’re really who they say they are. They can also check if previous landlords would re-let to a particular tenant. Only when a tenant has been through our rigorous vetting process can we recommend them to you!
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Free rent guarantee for landlords Even the best tenants can fall on hard times, in fact, most rent defaults are due to an inability to pay when circumstances change rather than a refusal. Rent guarantee is designed to protect your investment by ensuring the rent is paid even if your tenant goes into arrears.
• Up to five rental payments covered • Specialist in house legal & claims team • All legal costs incurred in evicting a tenant as a result of non payment of rent • Renewable Cover • Free for the first 6 Months of any new tenancy
Find out more at: www.orchardsuk.com ampthill 01525 402266 For full details of the cover on offer speak to the lettings team. Terms & Conditions apply.
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We manage so you don’t have to Orchards fully trained property management department manage hundreds of properties on behalf of landlords in Bedfordshire and around the world Only you know how much time you have to deal with tenants phone calls and the resulting work.
Tenants prefer managed property These days more and more tenants request managed property. It allows a more professional service by removing any emotion from both sides. Our comprehensive service includes rent collection, administration handling and dealing with any maintenance issues.
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What service do you require? Comprehensive Marketing tools (colour photos, 360째 tours,
LETTINGS + MANAGEMENT SERVICE
LET ONLY SERVICE
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floorplans, sms messaging etc) Maximum Exposure Fully accompanied viewings (until 8pm) Finding a tenant Obtaining references Rent Guarantee (first 6 months free stc) Drawing up the tenancy agreement Drawing up Inventory including photos Organising gas & electrical safety inspection and EPC Collection of 1.5 months deposit Arranging the check-in at the start of the tenancy Notifying Utility companies Prepare relevant notices (ie Section 21) Produce standing order for the rent to be paid Provide copies of AST, Inventory, tenants contact information Collection of rent Chase late rents Maintenance call out service Periodic property inspections with written reports Arranging repairs and maintenance Arranging payment of outgoings Monthly email statements Arranging contract renewals or property remarketing FEES: Managed: Half of the first months rent, plus 10% of the monthly rent. Let only: One months rent. All fees are plus VAT. See Orchards terms of business for more details.
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Legals pillows, along with other items. They do not apply to curtains, carpets, bed linen or duvets. Furniture manufactured prior to 1950 is exempt. Furniture manufactured from 1988 must have the relevant safety labels. For further guidance visit the office of public sector information website at www.opsi.gov.uk.
CONSENT TO LET Before letting your property the following should be considered Consent must be obtained from your lender Insurance companies must be notified Permission must be obtained from the freeholder (leasehold properties only) If jointly owned co-owners must be named on the terms of business and the tenancy agreement.
SMOKE ALARMS Building regulations require that all properties built since June 1992 are fitted with mains link smoke alarms on each floor. We strongly recommend fitting smoke alarms and carbon monoxide alarms.
TENANCY AGREEMENT A tenancy agreement is a written agreement that sets out the terms of a tenancy and the rights and obligations of the landlord and tenant. It is important to select the correct type of tenancy agreement to ensure that you are properly protected while letting your property.
ENERGY PERFORMANCE CERTIFICATE (EPC) As a landlord you will be required to obtain an EPC, which assesses the energy performance of your property. Your self and your agent must make all reasonable efforts to obtain the EPC within 7 days of marketing the property. The EPC must be made available no later than 28 days from the marketing beginning. This certificate will be valid for ten years. Orchards can arrange this for you if required.
Assured Shorthold Tenancy (AST) This agreement should be used where The rent is below ÂŁ100,000 per annum The period is from 6 months up to 3 years The tenant is an individual or a group of individuals rather than a company.
INVENTORY An inventory of the contents and condition of your property is usually produced prior to the commencement of the tenancy. This document is often done with photographs as well as in writing.
An AST is the most common type of agreement and provides the tenant with certain types of protection under the housing act 1988, yet still allows the landlord to regain possession of the property by serving two months notice (subject to the terms of the agreement)
THE DEPOSIT For your peace of mind Orchards will hold a tenancy deposit usually equivalent to 1.5 x the monthly rent. This can be used at the end of the tenancy for unpaid rent or damage to the property. Where the tenancy is an AST Orchards can hold this deposit in accordance to the housing act legislation.
CONTRACTUAL TENANCY This agreement should be used where: The rent exceeds ÂŁ100,000 per annum The tenant is an individual or a group of individuals or a company. The tenant is not given any additional statutory protection and both parties are bound only by the terms of the written agreement.
TENANCY DEPOSIT SCHEME For all assured shorthold tenancies the tenants deposit should be registered with a recognised deposit protection scheme within 30 days. Orchards currently use The Dispute Service. Orchards will hold all managed properties deposits and also offer this services to let only landlords if required.
SHORT TERM LETTING AGREEMENT This agreement should be used where the tenancy is for a period of up to 6 months. The tenant is not given any additional statutory protection and both parties are bound only by the terms of the written agreement.
TAX ON RENT INCOME All income arising from property in the UK is taxable, regardless of the tax status of the landlord. Income tax is payable on the profit generated by the letting of your property so you must declare your rental income to HM Revenue & Customs. However certain deductible allowances can be used to minimise your tax liability. Mortgage Interest Orchards fees Insurance, ground rent and service charges Legal and accounting costs Cost of repairs, redecoration and maintenance We do recommend that you speak to a qualified accountant.
SAFETY REGULATIONS As a landlord there are certain safety regulations to which you have to adhere before letting your property. Compliance will ensure that your property is safe for the tenant to live in. GAS SAFETY The gas safety regulations 1998 require that any gas appliances in a property are inspected annually to ensure they comply with the regulations. These checks must be done by a gas safe registered engineer. Orchards can arrange this for you if required.
OVERSEAS LANDLORDS Even if you live outside the UK, under the income tax and corporation taxes act 1988 and taxation of income from land (Non Residents) regulations 1995, you are still liable to pay UK tax on rent received in the UK. Orchards are obliged by law to deduct tax at the appropriate rate unless they have authorisation from them to pay the income to you without deduction. If you are going to living outside the UK while the property is let, you should fill in the appropriate form (Either NRL1 for individuals or NRL2 for companies) Orchards can supply the form if required or it can be downloaded from www.hmrc.gov.uk/cnr/nr_landlords.htm
ELECTRICAL SAFETY The electrical safety regulations 1994 require that electrical installations - like fixed wiring - are safe and well maintained. Any electrical appliances you supply to tenants - like cookers and kettles - should be safe for them to use. FURNITURE AND FURNISHINGS REGULATIONS. All furniture must comply with the provisions of the furniture and furnishing regulations 1988 and the subsequent amendments to that act, prior to the property being let. The regulations apply to sofas, beds, bed heads, covers to furniture, cushions and
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FAQs Are there any additional marketings cost? All of Orchards costs are straight forward and we do not charge any additional marketing costs. Why do Orchards let so many properties? Orchards have a very large marketing budget to attract lots of the very best tenants, we also have excellent and dedicated staff handling the let from start to finish. Who will conduct viewings on my Property? Only Orchards trained staff will conduct viewings on your property. Orchards are open 7 days a week and later than most other agents. Do I need to be present for viewings? It is best to provide Orchards with keys for viewings as often viewings can take place at short notice or late into the evening. What is an EPC and how long is it valid? An EPC measures the energy efficiency of a property using a scale of A-G and is valid for 10 years. How much is a tenants deposit and what happens to it? Typically it is 1.5x the months rent and is payable upon signing the tenancy agreement. The deposit should then be registered within a tenancy deposit scheme within 30 days. What does the new deposit scheme involve and how does it protect me? All deposits being paid by a tenant for an assured shorthold tenancy are registered within a recognised deposit protection scheme within 14 days. If there are any disputes at the end of a tenancy the deposit protection scheme will oversee the distribution of the disputed amount. How much does an inventory cost? Orchards offer a free inventory service( subject to t&cs) but landlords can create their own if they wish. How long does it take to receive my rent once paid by the tenant? Generally Orchards pay the rent to you on the very same day it is received by them. You will need to take into account bank holidays and weekends. Are Orchards part of a client money protection scheme? Yes! Orchards have signed up to a scheme guaranteeing our clients money which provides compensation to landlords and tenants should an agent misappropriate their rent, deposit or other client funds. It operates in a similar way to ABTA bonding for the travel industry. 17
Useful numbers COUNCIL TAX: Central Bedfordshire Council . . . .01582 546 000 Bedford Borough Council . . . . . . . . . . .01234 267 422 Luton Borough Council . . . . . . . . . . . . . . .0300 300 8301
GAS & ELECTRICITY Atlantic Electric & Gas . . . . . . . . . . . . . . .0800 028 3028 British Gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .0800 048 0202 Countrywide Energy . . . . . . . . . . . . . . . . . . .0800 328 0011 EDF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .0800 056 5927 E-ON . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .0800 051 0760 N Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .0808 156 0056 Scottish Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . .0845 408 1641 Southern Electric . . . . . . . . . . . . . . . . . . . . . . . . .0800 980 2475 Spark Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .0845 034 7474 TELEPHONE BT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .0800 800 150 Talk Talk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .0800 049 1374 Virgin Media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0845 840 7777 Sky . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 08442 411 653 TV LICENCE 0300 7906131 WATER Anglian Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .0845 791 9155 Veolia Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .0845 769 7985
OTHER USEFUL NUMBERS Name _____________________________________ Number ___________________________________ Name _____________________________________ Number ___________________________________
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Notes
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LET We don’t just put your property on the market
WE LET IT
Orchards www.orchardsuk.com The Clock House, Bedford Street, Ampthill, MK45 2NB
01525 402266 • ampthill@orchardsuk.com 1