A Guide for Landlords

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WHY CHOOSE US?

As Residential Letting and Managing Agents, we provide a comprehensive property letting service.

With a wide network of residential offices spanning Devon, Dorset and Somerset, we have a vital link throughout the West Country. We understand the market, both national and local, giving you wellrounded and expert advice.

We have an extensive online presence to help market your rental property, including popular property sites such as Rightmove, Zoopla and PrimeLocation, as well as our own website and social media channels.

We ensure to vet candidates to find the right tenant to suit your requirements.

The residential lettings market remains very active with many people renting rather than buying. In addition, there are always house owners seeking a short term let as part of a move.

If you are thinking of buying a property to let, we will be more than happy to advise you about its suitability. Similarly, if you already have a property to let and have questions or are looking for a trusted agent to guide you, we can help.

The following pages contain a guide to property letting, along with details of our terms and conditions and scale of charges.

We look forward to helping you on your letting journey.

“They are always excellent with their service and advice, and prompt in their response to any problems that occur. I always feel that I get a personal service from them.”
- Ms P Waller, Landlord

PREPARING THE TENANCY

LETTING THE PROPERTY

Once instructed as agents, we will commence a search for a suitable tenant. Depending on which service you choose, we will either accompany viewings or make a mutually convenient appointment for you.

As soon as a suitable prospective tenant has been found we will negotiate the terms and commence the referencing process. When satisfactory references, including ID verification, are obtained we will review the final report to assist in making a recommendation to you. If you wish, we could arrange a meeting with you before a decision is made.

REFERENCES

We take references appropriate to the potential tenant. We use an external company to carry out a detailed check including credit and employment history of the prospective tenant. In the event a prospective tenant returns an unsuccessful reference report we would not proceed further until full advice had been given and further instructions received as to whether the tenancy should proceed.

THE TENANCY AGREEMENT

We will discuss with you the most suitable terms and conditions before preparing the appropriate legal agreement. In most cases we recommend an Assured Shorthold Tenancy Agreement, usually for a minimum term of six months.

TENANT INFORMATION

Prior to taking possession we will provide the tenant with information setting out details for residing in the property, breaking down their obligations and explaining our procedures and expectations.

SECURITY DEPOSIT

We would normally collect a security deposit from the tenant, the equivalent of five weeks’ rent. This is paid to and registered with The Tenancy Deposit Scheme, in accordance with the terms and conditions of their custodial scheme.

CLEANING

It is important that the property is clean throughout before the tenants move in. We strongly recommend that the property, including carpets, is professionally cleaned and, if applicable, the garden in good seasonal order.

INVENTORY & SCHEDULE OF CONDITION

We prepare a detailed inventory and schedule of condition to include dated photographs of the property and garden. The tenant will be provided with a copy of this document and asked to read through and make any changes where necessary, before returning a signed copy within seven days.

DURING THE TENANCY

RENT

Rent is usually payable monthly in advance. Under our Full Management and Rent Collection services, we will collect the rent and account to you at agreed periods (usually monthly).

If more than one months’ rent is paid to us we will only account to you monthly, as the rent becomes lawfully due under the agreement. Rent to Landlords will be paid within 10 working days of receipt of cleared funds. Occasionally this can take longer during Bank Holiday periods.

We will aim to ensure that rents are collected on time. Should a payment be late, we will advise you and liaise with the tenant and pay the rent due as soon as it has cleared through our system. In common with all letting agents, we cannot be liable for non-payment of rent. However, we are able to offer a Rent Protection Policy to Landlords and will be happy to discuss this with you.

PERIODIC VISITS

With our Full Management services, we make quarterly visits to the property on your behalf and report our findings. The main purpose of such visits is to check if there are any matters that require your attention. We also seek to check that the tenant is abiding by the agreement and not damaging the property in any way. We also give the tenant advice, if necessary, on any issues we may find. However, tenants do have a right of privacy and we, and you as the Landlord, can only enter the property with their consent. Similarly, we are not able to comment on the tenant’s lifestyle or cleaning standards unless the property is being adversely affected.

PROBLEMS

In the event of difficulty, whether the tenant is failing to pay rent or has broken terms of the Tenancy Agreement, we will discuss the process to enforce the terms of the agreement with you.

KEEPING YOUR TENANTS HAPPY

“We felt truly valued as tenants. We knew what was happening at every step of the tenancy and knew they were on-hand to advise us where needed. Thank you for making us feel at home!”
- Mr H Ross, Tenant

AFTER THE TENANCY

SERVING NOTICE

If you require possession of the property at the end of the initial fixed term, notice must be served at least two months before the possession date. On request, notice will be issued to your tenants. However, should you wish to extend the tenancy and both parties are in agreement, we will discuss the options with you.

CHECK OUT

When a tenant is checked out of a property we give them a fair opportunity to check the inventory and we will deal with any discrepancies. We also provide you with a detailed property condition report after the tenant vacates, if contracted to do so.

SECURITY DEPOSIT

At the end of the tenancy, this will be returned to the tenant, less any deductions made to cover breaches of the Agreement. We are unable to deduct monies from the deposit without the tenant’s consent. We have a procedure for dealing with deposit disputes and will always endeavour to settle matters quickly and satisfactorily. Should we fail to negotiate between parties over dilapidation costs, then we reserve the right to forward the case to the TDS for adjudication.

LEGAL REQUIREMENTS

There are strict regulations relating to the fire resistance of soft furnishings that are included in the letting. There are some exemptions but a breach of these regulations can result in criminal proceedings. If you propose including soft furnishings we will advise you on the appropriate regulations. The regulations make it clear that there must not be any non-compliant furniture on any part of the property including the garage, garden or attic.

Landlords who provide residential accommodation, as the person in control of their premises or responsible for the water systems in their premises, have a legal duty to ensure that the risk of exposure of tenants to legionella is properly assessed and controlled.

Under current safety regulations it is the Landlord’s responsibility to ensure that the gas and electrical systems and appliances at the property are maintained in a safe condition and serviced by a qualified contractor. A Landlord gas safety check must be carried out annually and a safety record issued. A satisfactory Electrical Installation Condition Report must be carried out prior to a tenancy commencing and renewed every five years.

All properties must have a minimum of one working smoke alarm to each habitable storey. These must be checked, in date and working when a tenant takes possession, but our Tenancy Agreement places the liability for the ongoing testing on the tenant. Landlords are also responsible for fitting a working and in date carbon monoxide alarm in every room where solid fuel can be burnt and alongside, fixed combustion appliances of any fuel type, excluding gas cookers.

If any appliances are included in the letting it will be the Landlord’s responsibility to ensure they are safe when the property is let. The law may also require the Landlord to repair or replace these should they become defective. Plugs and sockets regulations apply and the Landlord must ensure that all plugs, leads and sockets are checked for safety and correctly fused before a tenant takes possession.

Where appliances are included the Landlord is obliged to supply user instructions.

If the property has working open fireplaces or wood/ multi fuel burners these are to be swept by a HETAS registered contractor ahead of the start of the tenancy.

A tenant or other party may ask the local authority to carry out an inspection of the property under the Housing Health and Safety Rating System. The local authority has significant powers to require property owners to make the property safe. The system is based on whoever may be considered the most vulnerable person to occupy the property. We will explain how these regulations may affect you. We will also assist you with outcomes of such an inspection.

There are definitions about what constitutes a house of multiple occupation (HMO). We will advise you about this as there are legal consequences in letting a property to sharers.

The property must be a safe environment for tenants and we will assist you in checking all safety aspects of the property prior to a tenant moving in.

RENT PROTECTION & LEGAL EXPENSES

No matter how well prospective tenants are vetted, there can be a risk that a tenant will prove to be unsatisfactory, sometimes due to unforeseen changes in their own personal circumstances. Whilst court proceedings can be taken to enforce the terms and conditions of the tenancy agreement, this is often expensive and it is unlikely that you will recover the full costs involved from the tenant. We strongly recommend legal expenses cover to guard against the risks involved. Similarly, insurance is available so that your income from the rent is not lost in the event of a non-payment. This is something that we are able to offer within our Full Management Plus and Rent Collection Plus services.

OTHER NOTABLE CONSIDERATIONS

GARDEN & OUTSIDE AREAS

Tenants are required to keep these areas in good seasonal order. Standards of gardening ability and knowledge can vary considerably. If the garden is particularly important or has special features we suggest that the Landlord provides a full gardening service, the cost of which will be included in the rent. The extent of this can be negotiable and we will monitor the condition during our periodic visits as part of our Full Management services.

INSURANCE

We always advise Landlords to make sure that the property and its contents are adequately insured (unfurnished properties may still have contents such as curtains, white goods etc.) It is extremely important that you advise your insurance company that you are proposing to let your property and that you confirm to them once this has been done. Failure to do so could result in you losing insurance cover. Some insurers impose lettings conditions and we would require these details as this may affect the choice of tenant.

LANDLORD’S OBLIGATIONS

It is always the Landlord’s obligation to keep the property and services such as heating and water supply in good repair. Under our Full Management services we will agree your provisions for emergency repairs, for example; a burst pipe. When major expenditure is required in a non-emergency situation we will always obtain quotations for you before proceeding.

PETS

Our standard agreement provides that a tenant may not allow pets in the property. However, a tenant is entitled to ask the Landlord for consent. We advise that each case be considered on an individual basis. If consent is to be given by the Landlord we will request a full carpet clean at the end of the tenancy including proof that the carpets have been fumigated. When permission is granted for pets at the property, an addendum is drawn up within the Tenancy Agreement containing additional terms and conditions.

UTILITY BILLS & SERVICES

It is usual for the tenant to pay charges for council tax, electricity and gas. We will notify the authorities and service suppliers and, if necessary, take meter readings. (Tenants are, of course, entitled to change suppliers for gas and electricity.) Water rates will normally be put into the tenant’s name. If there is a water meter then a reading will be requested.

OTHER NOTABLE CONSIDERATIONS

MORTGAGED PROPERTY

If your property is mortgaged, the mortgage deed will almost certainly require the written consent of the lender to be obtained before you let the property. Lenders will not deal with us in relation to the mortgage and so you will need to fill out their application form. We would be happy to help and provide any information necessary. It is advisable for you to approach your lender at an early stage to see what the financial consequences are likely to be. Please note; some lenders charge an administration fee.

ATTIC, CELLAR & EXCLUDED AREAS

We do not inspect the above areas but we may ask you to confirm the contents of these areas (if any) as this may affect safety and/or insurance issues. It is strongly recommended that you do not store items or restrict any access to the property once let, as this may affect the council tax and/or utility liability.

LEASEHOLD PROPERTY

If your property is leasehold, you may require the consent of the freeholder for your proposed letting.

RIGHTS & RESTRICTIONS AFFECTING YOUR PROPERTY

Whether your property is freehold or leasehold there may be special rights or restrictions (for example, a prohibition on more than one family or the parking of a caravan on the drive). We will need to have details of these to include in the Tenancy Agreement.

“I would highly recommend them; they have your best interests at heart at all times, and they have never let me down.”
- Ms W Hort, Landlord

INCOME TAX

Income received from letting your property will be subject to income tax and you will need to include details of the income and allowable expenses when completing your income tax return. HMRC may ask us directly for details of any income we pay to you, which we are obliged to supply.

If you live abroad we, as your agents, will be required by HMRC to pay any tax liability that arises on rents collected by us on your behalf. We will therefore deduct Non-Resident Landlord tax at the basic rate from rent payments received. You may be entitled to receive rent without deductions of tax and we strongly recommend you consider this. If you live abroad we will be happy to advise you further.

STEPS TO BE TAKEN BEFORE THE TENANCY BEGINS

A check list for your convenience

Arrange an inital Market Appraisal with us

Discuss potential safety issues with us

Decide which level of service you require, complete and sign the Agency Agreement

Instruct gas, electrical safety checks and the legionella risk assessment, or ask us to arrange

Instruct an Energy Performance Certificate (EPC) if required, or ask us to arrange

Ensure the property is cleaned and presented ready for the letting, or ask us to arrange

Contact your mortgage lender and/or freeholder for their consent to let

Consider what level of work needs to be done in the garden

Contact your insurer (buildings and contents) for details of their requirements

Arrange for sufficient keys to be provided, to include one full management set

Decide which items (if any) are to be left at the property and remove all valuables

If you are residing outside of the UK, apply for an approval certificate to enable us to pay rent to you without deduction of tax

If the property is furnished, ensure the furnishings comply with fire regulations

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