Property Rental Letting Agency Agents Somerset Dorset Devon

INFORMATION TO ASSIST LANDLORDS
CONSIDERING RENTING OUT A PROPERTY

Having spent many years in the Letting Industry, Karen Champion FARLA has been privileged to be a part of the Industry’s growth and development. As more people invest in the ‘Buy to Let’ market and become private landlords, more support and attention to detail is required than ever before for both Landlord and Tenants alike. ChampionHolmes is a small independent business dedicated to serving its clients and looking after their properties with the personal touch.

Below are brief notes which, we hope, will assist you whilst considering letting your property, and once a tenancy has commenced.

LANDLORD RESPONSIBILITIES
Applying for Lender’s Consent
A landlord is responsible for notifying any lending institution with an interest in the property, that it is to be let, and notifying them of renewals, extensions, re-lettings etc. Failure to do so may invalidate the mortgage and the tenancy agreement. A written copy of the permission to be submitted to the agent prior to any let commencing.

Applying for Superior Landlord’s Consent to the Letting of a Leasehold Property
A landlord is responsible for seeking consent to the letting of the property to be let if he does not own the freehold interest. He should show a copy of the lease to the agents prior to any tenancy being drafted, in order that any clauses necessary may be inserted into the Tenancy Agreement. Failure to do so may result in a breach of the Leasehold Agreement and invalidate the tenancy agreement.

Applying for Consent From Insurers
A landlord is responsible for notifying his insurers (for building and contents) that the property is to be let and must be aware of any exclusions or special conditions arising because of the letting. Such exclusions or special conditions may be required to be shown in the Tenancy Agreement. Failure to notify the insurers may invalidate an insurance policy.

Overseas Landlord - Tax (non UK resident landlords only)
A landlord residing outside of the UK for more than six months during the course of the letting will need to apply to the Inland Revenue for acceptance for self-assessment of tax (NRL1), and to receive his rents gross.

SAFETY REGULATIONS
A landlord is responsible for obtaining safety certificates and operating instructions for the property before a letting commences. It will be the landlord's responsibility to remove from the property all furnishings which do not comply with the Fire and Furnishing Regulations, and any electrical or gas appliances which have not passed safety checks, or do not have clear instructions prior to the commencement of the tenancy.

The Furniture & Furnishing (Fire) (Safety) Regulations 1988 as amended
A landlord is responsible for ensuring that furniture in all properties where lettings have commenced since 1st March 1993, comply with the regulations. Regulations specify that fabrics and fittings should be fire retardant and landlords should be able to either show the relevant labels on the items of furniture, or to provide a declaration that the furniture complies. Failure to comply with these regulations is a criminal offence and is subject to severe penalties.

Gas Safety (Installation and Use)
It is the duty of the landlord to ensure that all gas appliances, flues and associated pipe work are maintained in a safe condition at all times. There is also a requirement that gas appliances and flues in rented accommodation must be checked for safety within 12 months of being installed and then at least every 12 month thereafter. This check has to be carried out by a competent engineer, if not British Gas, a registered CORGI installer. A copy of the safety check record of certificate has to be given to any new tenant before they occupy the property and existing tenants must be given a copy within 28 days of the annual check. Under law, the landlord cannot opt out of this responsibility either by making an agreement with the tenant, or stipulating in the lease, that this has become their responsibility.

Electrics
Electrical equipment is covered by the Electrical Equipment (Safety) Regulations 1994 and the Plugs and Sockets (Safety) Regulations. All electrical appliances and installations should be checked regularly and wiring should be checked by an engineer registered with the National Institute of Electrical Engineering Contractors (NICEIC). Plugs, sockets and adaptors need to comply with the appropriate current standards, which now include the requirement that live and neutral pins on plugs are part insulated so as to prevent shocks when removing plugs from sockets.
ChampionHolmes recommend a safety test should be carried out, at the expense of the landlord, before each re-letting. Either the landlord’s specified contractors (where details have been given to the agent) or reputable local contractors will be instructed.

Smoke Alarms
The agent strongly recommended that landlords supply at least one working battery powered smoke alarm on each floor of the rented property. Under the terms of the tenancy agreement, the tenant is made responsible for regularly checking of and changing of the battery.

ENERGY EFFICIENCY – OCTOBER 2008
Many of us will be aware that property for sale in England & Wales requires an Energy Performance Certificate (EPC) to be supplied to the purchaser as part of the Home Information Pack (HIP). EPC's are coming in October 2008 for all rented property, both residential and commercial.

Energy Performance Certificates and Tax Allowances
At present any landlord carrying out certain works to improve the Energy Efficiency of his property is able to claim a Landlord's Energy Saving Allowance. This is up to £1500 which for most landlords will equate to a saving of £600. When originally introduced it was a personal allowance but has now been extended to a
per property allowance.

Certain Grants may also be available and, for landlords whose tenants are in receipt of certain benefits, discounts on insulation may be available.

LETTING SERVICES OFFERED
In order to take the stress and worry away from letting your property, ChampionHolmes are able to offer the following services in order to ensure you have the right tenant for you.

Introductory Service
To take photographs, prepare brief details, include in a display window.
Advertise the property on a regular basis in the local media and on our purpose built web site
Arrange for prospective tenants to view. Select suitable tenants and take up references.
Prepare Tenancy Agreement and Counterpart Agreement and arrange for signing of the same and Stamping of the Counterpart Agreement, if applicable.
Obtain cleared funds from the tenant in respect of the deposit payable and the rent for the first period of the tenancy.
Prepare Schedule of Condition or Inventory as appropriate, and arrange for tenant to check and acknowledge.

Full Management Service
As Introductory Service above, plus
On tenant occupation we attend four inspection visits throughout the year with the first visit being quite soon after initial occupation to ensure the tenant has settled well and looking after your property.
Advise Utility providers of the date of the letting, tenants' details and meter readings, if required.
To arrange maintenance/repairs to the property, services of appliances, if required; renew safety certificates.
Any remedial works required to the property are overseen by our chosen contractors (unless other preferred contractor stated) and safety checks updated.
Rent - Demanding and accounting for rent on the date due. Settling invoices and remitting balance to Landlord on a monthly basis (unless Housing Benefit tenant or agreed otherwise).
Visit the property on a regular basis, reporting to landlord and advising of any matters requiring attention.
Note dates of rent reviews, termination of the tenancy etc., liaise with landlord and tenant and serve notices or new Agreements as appropriate.
At the termination of the tenancy, carry out a check out, clarify there are no outstanding monies, agree deductions and release balance of deposit to tenant.
Comply with tax requirements of non-UK residents (if applicable)

Any Other Services
Maintenance is part of our ongoing management of a property, but we may also be able to assist you on a let only property if you are not able to find a suitable Contractor for the work to be carried out.

Furnishing Inventory
If preferred, for a furnished property, a full Inventory additional to the Schedule we prepare within our fee structure, (i.e. full furnishing list), can be prepared on a Landlord’s behalf, but it should be noted this will incur an additional fee.

DEPOSITS
If you are a landlord in England or Wales and you enter into a Tenancy and take a Deposit from your tenant on or after 06 April 2007, or you renew an existing Tenancy on different terms to the previous tenancy, e.g. there is an increase in the Deposit after this date, the Deposit must be protected in a Government authorised tenancy deposit scheme. This rule only applies if the tenancy is an assured shorthold tenancy.

Tenancy Deposit Scheme
There are two types of schemes, a Custodial Scheme and Insurance based Schemes (of which there are to be two types). For clarification, the Custodial Scheme is free to Landlords and Tenants, and any deposit is paid into and held in a separate account managed by the Scheme. The Insurance based scheme is paid by the Landlord or Agent, but is free to the Tenant. This allows the Landlord or Agent to hold the deposit for the term of the tenancy.

REFERENCING
The agent will check references on all persons over the age of 18 who will be residing at the property. Unless otherwise agreed, reference checks will include a previous landlord’s reference, bank or building society reference, employer or accountant's reference, and a credit check. References will either be taken up 'in house' or through a reputable credit and referencing agency. It should be noted that each tenant pays a referencing and administrative fee of £85 inclusive of VAT* when his application is submitted.

SIGNING OF TENANCY AGREEMENT
All UK resident landlords will be required to sign Tenancy Agreements relating to the letting of their property. This includes both Landlords on joint ownership of a property. For non-UK resident landlords, the tenancy agreement will be emailed for signature. Otherwise, a landlord will be asked to provide written authority to a third party to sign on his behalf. If the agent is to sign the tenancy agreement, they will require the landlord to have had sight of the tenancy agreement and that the landlord forward written instructions for them to sign that specific tenancy agreement.

TERMINATION OF INSTRUCTION
Unless agreed otherwise, our appointment as managing agent is for a fixed period, being the term of the tenancy. It can be terminated by either landlord or agent giving three months’ notice in writing to the other to terminate the management to expire either at the end of the fixed term of the tenancy, or thereafter.