Advice for Landlords
How to make the most out of letting
The property
appraisal
The first stage towards putting
your property on the market to let is to meet the Lettings Agent at
the property. We are available Monday to Friday between 9:00am
& 5:30pm. We provide you with this service free and at no
obligation.
Maximising Rental Income
Properties
vary, as do the requirements of each landlord, so before the
valuation appointment we will be doing our homework, compiling
comparable rental details, a market overview and current pricing
trends. During the appointment you will be advised about any items
or discuss any issues that may affect the rental yield. We will
also advise you of any action you can take to maximise the rental
and minimise the time it takes to achieve it.
Presentation
Experience tells us that the
presentation of your property will increase the marketability and
the level of rental income that we can achieve on your
behalf.
It therefore follows that your property should be presented to the
highest standard possible to secure an early tenancy. Our very
experienced team can advise you on all aspects of furnishings,
fittings and decorations and if required, recommend contractors to
assist with any remedial work or improvements prior to your
property being made available for letting. We would also suggest
that prior to letting you have the property and carpets
professionally cleaned. The garden should also appear well
tended.
Top tips to make the most out of letting
No
longer do tenants accept any property whatever the standard.
Whether the letting is furnished or unfurnished, the quality of
decoration and contents in the property will have an effect on the
levels of rent and the time scales involved in securing suitable
tenants.
We recommend you avoid allowing personal taste to influence the
choice of decoration. Most experts recommend that the furnishings
and decoration should not be too homely or too elaborate. Your
representative will be happy to advise you on what best suits the
market.
Presentation Tips
- Choose Neutral colours such as cream or magnolia for
decoration
- Carpets, curtains and any furnishings should be neutral and be
able to stand wear and tear
- Gardens should be neat and well maintained
- We recommend a professional clean, including the windows prior
to letting
- If you are seeking a company let, all furnishings including
kitchens and bathrooms must be well equipped and to a good
standard
Furnished Lettings
- TV's and Hi-Fi are not normally necessary as tenants will bring
their own
- 3 piece suites must be of a good standard and meet current
safety regulations
- Beds must be of good quality with new mattresses and linen,
again meeting current safety regulations
- Protect any table or furniture tops with glass or suitable
covers
- Cutlery and glassware should be robust
- Leave full instructions on appliances, alarms and any kitchen
gadgets, plus details where main switches, stop taps etc. are to be
found
Finding the right tenant
As soon as we
receive your written instructions to proceed, our sales team will
begin the process of finding a suitable tenant by contacting all
the prospective applicants that are registered with us on our
database, and by placing the property onto our website. We will
also prepare photographic details of the property for advertising
purposes. The visual aspects of marketing a property are, in our
opinion, of paramount importance and we invest more than any other
local agent on colour promotional and Internet advertising. We
estimate that our high profile and innovative marketing strategy
generates between 3 and 4 time more enquires than any other local
lettings agent. Complete-Move will continue this active line of
promotion until a suitable tenant is found and in doing so will
accompany all prospective tenants to the property.
Upon receipt of an application for tenancy, we always endeavour
to seek our landlord's approval in principle, prior to proceeding
to referencing and contract.
Stringent referencing and credit checks are carried out upon all
tenants, which results in you having a full understanding of their
personal and financial circumstances, their employment history and
credit worthiness before we ask you to proceed with the
tenancy.
Only when you are satisfied with the tenant will we proceed with
preparing a suitable tenancy agreement. We can also offer advice on
what your current mortgage lender will need to know, along with
inventories, insurance and the all-important collection of the
rental payments.
Service Level Options
We offer two levels
of service to accommodate the differing needs of clients ranging
from a let only service for the investor landlord to the full
management service for those wanting complete piece of mind. The
full management service ensures that every aspect of the letting
process is dealt with efficiently and cost effectively on the
landlord's behalf.
Let Only Service
- Advertise and promote the property until a suitable tenant is
found
- Accompany prospective tenants on viewings as and when
required
- Carry our full credit searches via a specialist credit
referencing company. Obtain references from employers and previous
landlords
- Prepare the tenancy agreement
- Prepare the incoming inventory and get the client to sign to
confirm they agree with it
- We will arrange for the utility companies to be registered in
the tenants name for the duration of the tenancy together with
taking the meter readings.
- Collect one month rent in advance together with a deposit.
Monies including the tenants deposit, less our charges will be paid
direct to yourself along with the original tenancy agreement,
inventory and tenancy details.
Full Management Service
- The full management service adds the following to the Let Only
Service.
- We will visit the property every four months to check on the
general condition of the property and send you a report.
- We will arrange maintenance and repairs as necessary including
obtaining estimates where appropriate and liaising with both
contractor and tenant on all matters
- Paying monthly rent into your designated bank account and
forward you a statement of account each time
- Deal with the Inland Revenue where necessary
- We will offer advice on necessary legal procedures ensuring any
notices are sent correctly
- We will process the return of the tenants deposit, less any
charges for cleaning, damages or arrears
- As stakeholder Complete-Move hold the tenants deposit
Safe as houses
The Legal Position
The Housing Act 1988 (as
amended by The Housing Act 1996) - The Act brought fundamental
changes to the law governing the letting of residential property
individuals. Many of the changes made the market more attractive
for landlords by making it easier to let at a market rent and
recover possession when necessary. The new Act specifies the types
of tenancy and whilst there are several types it is most likely
that the tenancy of your property will be either an 'Assured
Shorthold Tenancy' or a 'Company Let'.
Gas Safety (Installation & Use) Regulations 1998
These cover all gas appliances, flues , meters and associated pipe
work and require landlords to ensure appliances remain safe at all
times and are checked and certified at least once every 12
months.
A record of checks carried out by a Corgi registered engineer
must be kept. Instruction booklets must be provided for each
appliance supplied. Such is the importance of this regulation that
we reserve the right to arrange for an annual Gas safety check of
the property, at the Landlords expense, should the obligatory
Safety Certificate not be available.
Furniture &
Furnishings(Fire)(Safety)Regulations1988 Amendment Regulations
1989&1993
This act all upholstery and
upholstered furniture supplied by the landlord in a rented
property, including; beds, footstools, pillows, headboards,
mattresses, beanbags, sofa beds, futons etc.
Furniture manufactured between 1950 and 1990 cannot be supplied
to a tenant unless it has been professionally re-upholstered with
conforming materials, fire retardant spray treatment is not
acceptable by the DTI as it ineffective in affording protection to
foam fittings.
The Electrical Equipment (Safety) regulations
1994
There is currently no legal requirements to
have a formal annual safety check of electrical equipment. However
this is open to interpretation, as far as Trading Standards are
concerned a landlord must be able to demonstrate that electrical
appliances are safe before the property is let. Should any piece of
electrical equipment have a fault, which results in injury or
fatality, the person is responsible for supplying the equipment
could be prosecuted. Therefore professionals recommend annual
checks of all appliances.
Taxation on Letting Income
UK Resident landlords
If you are a
resident landlord in the UK, your net taxable profit from your
rental business represents income received without tax deduction at
source. This will need to be added to your other taxable income in
order to work out your overall tax liability for a particular tax
year. The normal method of reporting your taxable income to the
inland revenue and calculating your tax liability is via a self
assessment tax return.
Non Resident UK landlord
The Non Resident
landlords (NRL) scheme is for taxing the UK rental income of person
whose usual place of abode is outside the UK. Unless the landlord
can provide Complete-Move with an exemption certificate from the
Inland Revenue, we are obliged by law to deduct basic rate tax
(currently 23%) from rents received and account to the Inland
Revenue on a quarterly basis. Landlords should also note that a
maximum penalty for non compliance with these regulations is a fine
up to £5000 or six month imprisonment.
Reducing Tax Liability
As a landlord the
inland revenue will view you in the same way as a business, meaning
that costs and expenses incurred may be off set against the rental
income, these expenses can substantially reduce or eliminate your
tax liability. The letting income on which you are subject to tax
is gross income less certain expenses usaully incurred, which
usually include the following:-
- Loan interest (subject to conditions)
- Rent, rates and ground rent
- Cost of providing services included in the rent
- Professional fess, agents, accountancy and legal
fees
- Cost of repairs
- Maintenance charges
- Water rates
- 10% wear and tear allowance (for furnished properties
We advise you to speak with our representative with regards the
relevant forms which need to be filled in should you live or be
going to live abroad whilst the property is let.