Where to Start?
Firstly by arranging a free, no obligation market appraisal of the property you are wanting to let.
One of our experienced valuers will inspect the property, advise you of the current market rental value based on several factors such as the location of the property, proximity to amenities and local services such as schools, shops and transport links. The condition and accommodation offered and any restrictions you may want to place on the tenancy such as length of time or type of tenant.
Depending on what your circumstances the next step is to decide which of our services are best suited to your requirements. There are two choices:
Tenant Search Service – If you are happy to undertake the collection of rent and day to day management of the property yourself our Tenant Search Service may be suitable for your needs.
For a flat fee we will:
Produce a full colour property brochure with photographs.
Advertise in the Telegraph and Argus. We can also advertise in any other suitable publications as and when necessary.
Contact our mailing list applicants who are looking for a property like yours.
Conduct viewings as necessary especially if the property is empty.
Fully vet prospective tenants thorough a tenant referencing service.
Prepare a tenancy agreement. We use the Royal Institute of Chartered Surveyors (R.I.C.S.) Assured Shorthold Tenancy Agreement.
Prepare a full inventory detailing the condition of property and the contents therein.
Full Management Service – If you do not wish to be involved in the day to day management of the property we can undertake that role on your behalf. One major benefit from having O’Hearne & Partners manage your property is that we become the first point of contact for the tenant. This means that we are able to deal with any problems that the tenant may have in the property.
Our management service includes:
Produce full, colour property particulars with photographs.
Advertise in the Telegraph and Argus. We can also advertise in any other suitable publications as and when necessary.
Contact our mailing list applicants who are looking for a property like yours.
Conduct viewings as necessary especially if the property is empty.
Fully vet prospective tenants thorough a tenant referencing service.
Prepare a tenancy agreement. We use the Royal Institute of Chartered Surveyors (R.I.C.S.) Assured Shorthold Tenancy Agreement.
Prepare a full inventory detailing the condition of property and the contents therein.
Collection of rent and, in the case of the first month a bond as well.
Being the first point of contact for the tenant for day to day management issues.
Arranging general repairs (when necessary).
Carry out regular inspections of the property during the tenancy to ensure that it is being maintained to a satisfactory standard.
Under the R.I.C.S. Agreed Shorthold Tenancy rent is collected one month in advance. We generally encourage tenants to pay by standing order. Once we have received payment we will deduct our management fee and forward the balance you.
In most cases we agree a ‘float’ with our Landlords as a ceiling limit for works that can be carried out at the property. So, for example, if a tenant reports that a water tank is overflowing we can instruct one of our professional tradesmen to carry out the appropriate works without having to bother you. This arrangement is totally flexible. We can discuss with you any degree of involvement you may wish to have in this regard.
We have a range of professional tradesmen to call on to carry out any such works to your property but if you have people you would rather have us deal with then let us know and we will.
In most cases we will try to contact you and inform you prior to ANY works being carried out on the property unless it is an emergency situation.
It is important that you check your current buildings and contents insurance policy. It is unlikely that you will be covered to let the property out.
In association with HomeLet™ we are able to offer Landlords a comprehensive property insurance package to minimise the risks associated with letting property. This package can include any or all of the following:
Buildings insurance.
Full contents insurance.
Limited contents cover.
Legal expenses.
Rent guarantee.
Emergency assistance.
It is also wise to ensure that the insurance includes protection for public liability. There is a small risk that a defect in the property could cause injury to a third party for which the landlord could become liable. Most landlord policies provide such cover.
If you have a mortgage on the property you wish to let out it is a good idea to inform your mortgage lender in writing that you wish to sub-let. Failure to gain written permission will probably mean that you are in breach of your mortgage conditions.
It is likely that the lender will want to see a copy of the tenancy agreement and all relevant documents, some may even levy an administration fee for these checks.
We recommend that you obtain professional advice with regard to UK tax laws but in brief, you are liable to pay tax on all rental income received less certain deductible expenses. As a landlord you are legally responsible to inform the Inland Revenue of this income on a Self Assessment Tax Return. If the property is jointly owned all parties are obliged to complete returns.
As previously mentioned certain deductible expenses can be used to reduce the profit you receive from rental properties and therefore your liability. Examples of such deductions are:
Letting and Managing agents fees.
Insurance premiums
Legal charges
Repairs and maintenance expenditure
Mortgage interest
Water rates and Council Tax
An allowance for wear and tear
If you are a landlord who is resident abroad you are required to apply
to the Inland Revenue to join the ‘Non Resident Landlords Tax Scheme’.
Gas Safety - The Gas Safety (Installation and Use) Regulations 1998
These regulations apply to all gas appliances in the property, any associated pipework leading to the appliances and any flue leading from the appliance.
Landlords are now required to ensure that gas appliances in a rented property are properly checked BEFORE letting and checked annually. It is a further requirement that the tenant is given a copy of the gas safety certificate at the start of the tenancy.
The testing must be carried out by a ‘competent person’. A competent person is someone who is CORGI (Council for Registered Gas Installers) registered.
We can arrange for these checks to be carried out if you require.
The maximum penalty for non-compliance is a fine of £5,000 and six months imprisonment.
Product Safety Regulations
Regulations also exist with regard to general product safety in rented property. Items such as furniture, electrical goods and electrical appliances are specifically included. These regulations only apply to landlords letting a property ‘in the course of business’. So if you have bought a property with the specific intention of generating rental income you will be required to comply whereas if you are letting your home for a short time whilst you are abroad you would be exempt.
Furniture & Furnishings (Fire) (Safety) Regulations 1988
Many domestic fires start with soft furnishings catching fire and many deaths are attributed to the noxious fumes given off by foams and soft furnishings. These regulations specify improved levels of fire resistance of materials used in the construction of upholstered furniture, furnishings and other products containing upholstery.
For new furniture, the net effect of the regulations is that any such products manufactured after 1st March 1998 or sold by a retailer after 1st March 1990 shall be to the specified standards and labelled accordingly.
The regulations apply to: (broadly anything which is upholstered or has filling material)
Beds, headboards of beds and mattresses
Sofa beds, futons and other convertible sleeping devices
Nursery furniture
Garden furniture which is suitable for use in a dwelling
Scatter cushions and seat pads
Pillows
Loose and stretch covers for furniture
The regulations do not apply to:
Antique furniture or any furniture made before 1 January 1950
Bed-clothes (including duvets)
Loose covers for mattresses
Pillowcases and sleeping-bags
Curtains and carpets
The maximum penalty for non-compliance is a fine of £5,000 and
six months imprisonment.
The Electrical Equipment (Safety) Regulations 1994
The Plugs and Sockets etc (Safety) Regulations 1994
Where a landlord is supplying a property ‘in the course of business’ the electrical safety regulations will apply. These regulations require that all appliances or equipment supplied must be safe.
As a landlord you need to ascertain whether a product or products will comply with the current UK requirements. Without detailed technical knowledge there is no simple way to define which products comply and which do not.
In practice, the only effective way to ensure that any equipment is safe is to employ somebody to test the equipment before a property is let. There is no requirement under the Regulations for a certificate of testing to be provided and neither do the Regulations require the use of a registered electrician.
We recommend that due diligence is taken and best practice recommendations are:
Have appliances checked by a qualified electrical engineer and annually
(or a period advised by your electrician) thereafter.
Maintain records of the checks carried out for the appliances in each
property.
Ensure that instruction booklets are available at the property for all
appliances.
Microwave doors and door seals should be clean and free from corrosion
(if supplied).
DECORATIONS AND PROPERTY
CONDITION
It goes without saying that any appliances that are left in a property should be in working order but it also important to ensure that the property is in a good state of repair as well.
Decorations
The current trend for bright, light airy rooms is good for landlords as it allows a property to be decorated in neutral colours and thus giving it a wider appeal. Avoid dark, oppressive colours in small rooms whenever possible.
Kitchens
Ensure that all doors and drawers are working well. If necessary replace loose or worn handles.
If the property is to be let un-furnished we consider minimum appliances to be a cooker and fridge. Again ensure that these are clean and functioning correctly.
If you are leaving other appliances in the kitchen make sure that you leave instructions on how to operate them if possible.
Bathrooms
Clean bathrooms are a must. If the bath or fittings are cracked or stained consider replacing them.
Ensure that grouting between tiles is mould free and intact. If any grouting is missing, re-grout it. The same goes for sealant around the bath and sinks. Not only does it enhance the look of a bathroom it serves to protect it and the ceiling below from water leaks.
If a shower is fitted make sure the shower head is clean and allows
water to run as powerfully as possible. If needs be replacement heads
can be purchased for little cost.
Bedrooms
Again light and neutral is recommended. Curtains are expected in an un-furnished property.
If the property is to be let furnished ensure that all the beds etc meet the current regulations.
Externally
As with selling a property ‘kerb appeal’ is all important. Make sure that the approach to the property is well presented and free from weeds etc.
Ensure that the gardens are as low maintenance as possible. Most tenants do not have gardening equipment. With this in mind consider leaving a lawn mower and gardening essentials to help the tenant keep the garden neat and tidy.
Why choose O’Hearne & Partners?
O’Hearne & Partners is an independent partnership of Chartered Surveyors and Estate Agents which has been established for over 30 years.
Our busy residential property management department is based at our Five Lane Ends office and has based it’s reputation on providing the very highest standards of professionalism and service.
We trust that this brief guide has been of use to you but should you
have any further questions please do not hesitate to contact us on 01274
620088 or via email on lettings@hearneandpartners.com.