SERVICES
RESIDENTIAL LETTING
ASSURED SHORTHOLD TENANCIES.
INTRODUCTION - Assured and shorthold tenancies were introduced by Government to encourage the letting of residential property by allowing landlords to charge the full market rent, as opposed to rents “controlled” by legislation.
Additionally, in the case of shorthold tenancies, legislation enabled landlords to regain possession of their property.
Recent legislation has therefore removed the most onerous restrictions relating to residential letting.
SETTING UP A TENANCY - All tenancies started after 28th. February, 1997 are automatically shorthold tenancies, unless the procedure to set up an assured tenancy is adopted.
In practice, as letting agents our standard tenancy agreement sets up a shorthold tenancy, normally for an initial period of six months, which can be extended at the Landlord’s discretion, subject to the satisfactory conduct of the tenancy. Landlords can grant a longer term initially if they wish to do so.
ENDING AN ASSURED SHORTHOLD TENANCY - A tenancy may be terminated by two months notice on the part of the landlord or one months notice on the part of the tenant, otherwise the tenancy will continue on a month to month basis until terminated by notice.
A tenancy cannot normally be ended before the fixed term has expired, and early possession can only be obtained via the Court on specific grounds, some of which are mandatory and others discretionary.
Typical grounds for early possession are arrears and property damage.
Alternatively where the tenancy has been properly conducted the landlord may (at his discretion) grant a new fixed term tenancy.
FURNISHED OR UNFURNISHED - A tenancy can be furnished or unfurnished. However experience has shown that the demand for unfurnished accommodation is greater than for furnished. Furthmore, accidental damage is more likely occur to furnishings than to the property itself.
For these reasons we would normally advise unfurnished letting.
It is appreciated that in certain circumstances it may not be convenient or practical to empty an already furnished property, in which case the property can be let furnished, subject to Fire Safety Regulations (Furniture & Furnishings). Floor coverings and curtains are usually included in “unfurnished” lettings.
DEPOSIT - Our standard tenancy agreement provides for a security deposit against accidental damage. The amount of the deposit is normally equivalent to between one and two months rent.
REPAIRS - Landlords are responsible for almost all repairs with the possible exception of internal decorations. The tenant has a duty to take care of the property and is responsible for damage caused by the tenant.
The property needs to be in a good state or repair and condition at the outset of the tenancy.
Safety certificates are required for the gas installation (if any) and appliances and similarly for the electrical installation and appliances.
COUNCIL TAX & WATER RATES - Except in the case of multiple occupation, the tenant will be responsible for council tax, as provided for in our standard tenancy agreement.
If the property is vacant, for example between tenancies then liability for council tax reverts to the landlord. If the property is unfurnished there is no charge for the first vacant six months. If the property is furnished, 50% council tax is payable when vacant.
In respect of water rates when the property is vacant and unfurnished no charges are levied. If vacant, but furnished 100% charges are levied.
ELECTRICTY, GAS AND TELEPHONE BILLS - These charges are the responsibility of the tenant.
INCOME TAX - Rental income is liable for income tax and it is the responsibility of United Kingdom landlords to declare the income derived from letting.
The amount of income that is liable for tax is the net income, that is to say, the gross income less allowable costs and expenditure.
In the case of landlords who are not resident in the UK, it is the agents duty to deduct tax at the standard rate from the rent received, unless the taxpayer obtains an exception.
INSURANCE - It is of course essential to ensure that comprehensive insurance cover is maintained for the buildings and contents. Existing policies must be endorsed to cover letting. Some insurers do not provide cover for letting, in which case we can obtain quotes for suitable cover.
MORTGAGED PROPERTY - The written consent of the lender must be obtained.
OUR LETTING SERVICES.
OBJECTIVE - Our aim is to secure trouble free tenancies and a secure income for landlords.
This objective is best achieved by finding tenants of good standing who are able to comfortably meet the rental commitment and tenants who will respect the landlords property.
Letting Services fall into one of two categories :-
LET ONLY OR FULL MANAGEMENT.
LET ONLY - This service includes:
• Advice on rental value
• Letting particulars
• Advertising
• Viewings.
• Finding & vetting a suitable tenant (s)
• Preparing tenancy agreement
• Preparing inventory (Furnished)
• Collect first rental & deposit. Account to landlord for funds received.
FULL MANAGEMENT - As per LET ONLY and in addition
• Collect rentals throughout term.
• Account for funds with a monthly statement.
• Deal with urgent repairs.
• Liaise with landlords over repairs in excess of £100.00.
• Instruct and supervise repairs.
• Deal with any tenants complaints.
• Pay tradesmen.
• Check property every three months.
• Check property at end of tenancy and deduct cost of tenants defects.
• Re-let property to new tenants.
FREE RENTAL VALUATIONS - We offer free rental valuations in connection with a proposed letting for existing landlords and new buy-to-let landlords.
NOTE: This guide is intended to provide private landlords and would-be landlords with information about residential letting. It is not an authoritative interpretation of the law and does not cover every case. No responsibility is accepted for errors or omissions.
