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| Our guide to Letting your property. |
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Letting your property need not be a stressful process, with careful planning following the following points will ensure the ...
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| Preparing your property for letting |
Firstly you will need to seek consent from your mortgage provider and if your property is Leasehold you may also need to acquire a licence to let your property, which will have to be renewed on every letting. Once you have the appropriate consents you will then need to ensure that your property has been well maintained and in good decorative order. These points will not only ensure a quick letting can be made, but will relieve a lot of stress for both you and the incoming tenant.
You will also have to ensure that your property is safe and complies with the following:
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The Furniture and Furnishings (Fire) (Safety) Regulations 1988 and The Furniture and Furnishings (Fire) (Safety) (Amendment) Regulations 1993 |
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It is a criminal offence, punishable by a fine and/or a prison term, to let Premises with furniture or soft furnishings which cannot be proven to comply with the above fire and safety regulations. The regulations apply to the following which must be match resisitant, cigarette resistant and carry a permanent label:
All upholstered furniture, Three piece suites, Beds and divans including upholstered bases, padded headboards, sofa beds, furniture with loose or fitted covers, childrens' furniture, cots and other items used by a baby or small child, cushions, high chairs, mattresses of any size, pillows, garden furniture which may be used indoors. |
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Electrical Equipment (Safety) Regulations 1994 |
| You are responsible for providing instruction books for all items of electrical equipment and for ensuring that all electrical appliances within the premises comply with the above regulations. You should also ensure that all electrical installations are safe and have them checked regularly. |
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Gas Safety (Installation and Use) Regulations 1998 |
It is a criminal offence to let premises with gas appliances, installations and pipework that have not been checked by a Gas Safe Registered Engineer. You will need to provide us with a copy of a Gas Safety Certificate (GSC) carried out no more than 12 months previously.
NO Tenancy can commence until we are in receipt of a valid Gas Safety Certificate. |
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Additional Safety Recommendations |
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Smoke Alarms - should be installed on each floor of the property and it not mains operated, batteries should be replaced regularly.
Carbon Monoxide Alarms - should be installed next to each gas appliance and batteries should be replaced regularly.
A Fire Blanket or small fire extinguisher (which may require servicing or maintenance) should be provided in the Kitchen. |
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Energy Performance Certificates |
Energy Performance Certificates (E.P.C.'s) have been introduced by the Government to help improve the energy efficiency of buildings, in order to assist cutting carbon emissions and aid tackling climate change.
Your property you will now require an E.P.C. by law (this will need to be applied for prior to your property being marketed), which came into effect from 1st October, 2008. The certificate provides 'A - G' ratings for the building, with 'A' being the most energy efficient and 'G' being the least, with the average up to now being 'D'.
An acredited energy assessor would produce the E.P.C. alongside an associated report, which suggests improvements to make the property more energy efficient.
The Pulver Carr Partnership have researched the market place and are able to obtain an Energy Performance Certificate for you at the competitive rate of £50. Please call the office on (020) 8421 0107 for further information.
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Inventories |
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An inventory and Schedule of Condition is essential for the proper management of your premises, whether they are let furnished or unfurnished, to reduce the risk of a dispute arising in respect of the security Deposit ("Deposit"). Inventories should, where applicable, show that the furnishings and electrical equipment comply with current legislation. If you do not an inventory and Schedule of Condition you will not be able to prove the condition of the premises at the start of the Tenancy and may not be able to obtain compensation for the Tenant either through any Tenancy Deposit Protection Scheme or through the County Court. |
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Tenancy Agreement |
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You will need a comprehensive Tenancy Agreement setting out the rights and obligations of both parties. Where the tenant is an individual you will also need to have regard to the unfair terms in Consumer Contract Regulations 1999 and guidelines prepared by the Office of Fair Trading, which states that any clause in a contract which is unfair to the tenant could be void and therefore unenforceable. |
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Assured Shorthold - If the applicant is an individual and the net rent is £25,000 or less per year we will use an Assured Shorthold Tenancy Agreement. There is no longer a minimum period for such lettings. However, if the Tenant fails to surrender posession at the expiry of the term (and in accordance with your Section 21 Notice) you will need a possession order. No such order can expire within the first 6 months of a Tenancy commencing, unless the tenant is in breach of the Tenancy. |
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Common Law - If the rent payable is £25,000 or more per year or at a proportionate level for a shorter Tenancy, The Tenancy Agreement cannot by an Assured Shorthold. You will need to use a Common Law Agreement. Although,, this is not governed by the Housing Act 1988 it is nevertheless subject to other statutory regulation (e.g. protection from eviction 1977) which means that you must obtain a possession order from the County Court before a tenant can be evicted. |
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"Company" Lets - This is a Tenancy outside the protection of the Housing Act 1988 and is subject to Common Law. Generally speaking these involve more pre-contractual negotiation. There are no rent restrictions. |
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Tenancy Agreements can be for a fixed duration, run from month to month (i.e. a Periodic Tenancy), or be a combination of the two. A fixed term contract will give you more certainty, whilst the Periodic Tenancy will give more flexibility. |
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Termination |
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All tenancies must be terminated by serving the Tenant with a valid notice, whether the initial term is fixed or otherwise. This is because at the expiry of the initial term the Tenancy will automatically roll on from month to month generally upon the same Terms and Conditions (including rent) unless and until you serve the Tenant with a valid notice or the Tenant voluntarily surrenders possession. |
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Dilapidations Deposit |
| The Tenant at the commencement of the Tenancy would pay a Dilapidations Deposit (we request the equivalent of six weeks rent) as a safeguard against any damage to the premises or non-payment of rent. When a Tenancy comes to an end there is usually no disagreement about the return of the Dilapidation Deposit, but sometimes there is, and this can cause much hardship and inconvenience to both Landlord and Tenant. Legislation came into effect on the 6th April 2007, that all Deposits taken for Assured Shorthold Tenancies after that date must be covered by a tenancy deposit protection scheme. The Pulver Carr Partnership are members of The Dispute Service and all deposits are registered with them. For further information please visit there website at www.thedisputeservice.co.uk. |
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References |
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Where ever possible we will obtain a credit reference report checking the incoming Tenants financial standing, including income, contact the previous Landlord (if appropriate) and contact the personal referee. If the incoming Tenant passes the referencing procedure the report will be forwarded to you for your approval. |
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Insurance |
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It is essential that the Premises and contents included on the inventory and Schedule of Condition are adequately insured and that your insurers are aware that the Premises are let. Failure to do so may invalidate your insurance. You must inform your insurers whenever the Premises remain vacant for a period greater than specified in your insurance policy. You should also check that your insurance policies include third party liability to protect you and the Tenant or a visitor toe the Premises for personal injury. |
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Taxation |
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You will be liable for tax on your rental income and you must inform the Inland Revenue that you are letting the Premises. There are a number of allowances that you can claim against this rental income. You must seek advice on these allowances from your accountant or from the Inland Revenue website, which can be accessed on www.hmrc.gov.uk. |
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