Landlords Guide

General Condition
Electrical, gas plumbing, waste, central heating and hot water systems must be safe, sound and in good working order. Repairs and maintenance are at the Landlords expense unless misuse can be established. Interior decorations should be in good condition and preferably plain, light and neutral.

Furnishings
Your property can be let fully furnished, part furnished or unfurnished. Which of these is appropriate will depend on the type of property and local market conditions. We will be pleased to give you advice on whether to furnish or not and to what level. As a minimum you will need to provide decent quality carpets, curtains and light fittings. Remember that there will be wear and tear on the property and any items provided.

Personal items, ornaments etc.
Personal possessions, ornaments, pictures, books etc. should be removed from the premises, especially those of real or sentimental value. Some items may be boxed, sealed and stored in the loft at the owner’s risk. All cupboards and shelf space should be left clear for the Tenant’s own use.

Gardens
Gardens should be left neat, tidy and rubbish free, with any lawns cut. Tenants are required to maintain the gardens to a reasonable standard, provided they are left the necessary tools. However, few Tenants are experienced gardeners, and if you value your garden, or if it is particularly large, you may wish us to arrange visits by our regular gardener.

Cleaning
At the commencement of the tenancy the property must be in a thoroughly clean condition, and at the end of each tenancy it is the Tenants' responsibility to leave the property in a similar condition. Where they fail to do so, cleaning will be arranged at their expense.

Information for the Tenant
It is helpful if you leave information for the Tenant, e.g. on operating the central heating and hot water system, washing machine and alarm system, and the day refuse is collected etc.

Keys
You should provide one set of keys for each Tenant. Where we will be managing we will arrange to have duplicates cut as required.

Mortgage
If your property is mortgaged, you should obtain your mortgagee’s written consent to the letting. They may require additional clauses in the tenancy agreement of which you must inform us.

Leasehold's
If you are a lease holder, you should check the terms of your lease, and obtain any necessary written consent before letting.

Insurance
You should ensure that you are suitably covered for letting under both your buildings and contents insurance. Failure to inform your insurers may invalidate your policies. We can advise on Landlords Legal Protection, Rent Guarantee Cover and Landlords Contents and Buildings Insurance if required.

Bills and regular outgoing's
We recommend that you arrange for regular outgoing's e.g. service charges, maintenance contracts etc. to be paid by standing order or direct debit. However where we are managing the property, by prior written agreement we may make payment of certain bills on your behalf, provided such bills are received in your name at our office, and that sufficient funds are held to your credit.

Council tax and utility accounts
We will arrange for the transfer of Council Tax and utility accounts to the Tenant. Meter readings will be taken, allowing your closing gas and electricity accounts to be drawn up. All these matters we will handle for you, however British Telecom will require instructions directly from both the Landlord and the Tenant.

Income tax
When resident in the UK, it is entirely the Landlords responsibility to inform the Revenue & Customs of rental income received, and to pay any tax due. Where the Landlord is resident outside the UK during a tenancy, he will require an exemption certificate from the Revenue & Customs before he can receive rental balances without deduction of tax. Where we are managing the property we will provide advice and assistance on applying for such exemption.

The inventory
It is most important that an inventory of contents and schedule of condition be prepared, in order to avoid misunderstanding or dispute at the end of a tenancy. Without such safeguards, it will be impossible for the Landlord to prove any loss, damage, or significant deterioration of the property or contents. In order to provide a complete Service, we will if required arrange for a member of staff to prepare an inventory and schedule of condition, at the cost quoted in our Agency Agreement.

What is an Assured Shorthold Tenancy?
Most tenancies will automatically be Assured Short hold Tenancies (ASTs), provided the rent is under £25,000 a year and the property is let to private individuals. Tenancies are usually granted for an initial fixed term of either 6 to 12 months. When the fixed term has expired the landlord is able to regain possession of the property provided he gives two months written notice to the tenant.

The following requirements are the responsibility of the owner (Landlord). Where we are managing the property they are also our responsibility. Therefore where we are managing we will ensure compliance, any costs of which will be the responsibility of the landlord.

Gas
Annual safety check: Under the Gas Safety (Installation and Use) Regulations 1998 all gas appliances and flues in rented accommodation must be checked for safety at least every 12 months by a Gas Safe registered engineer. They must be maintained in a safe condition at all times, records kept for at least 2 years, and a copy of the safety certificate given to each new tenant before their tenancy commences.

Electrical
There are several regulations relating to electrical installations, equipment and appliance safety, and these affect landlords and their agents in that they are 'supplying in the course of business'. They include the Electrical Equipment (Safety) Regulations 1994, the Plugs and Sockets Regulations 1994, the 2005 Building Regulation - 'Part P, and British Standard BS1363 relating to plugs and sockets. Although with tenanted property there is currently no legal requirement for an electrical safety certificate (except in the case of all HMO's) it is now widely accepted in the letting industry that the only safe way to ensure safety, and to avoid the risk of being accused of neglecting your 'duty of care', is to arrange such an inspection and certificate.

Fire
The Furniture and Furnishings (Fire) (Safety) Regulations 1988 (amended 1989 & 1993) provide that specified items supplied in the course of letting property must meet minimum fire resistance standards. The regulations apply to all upholstered furniture, beds, headboards and mattresses, sofa-beds, futon's and other convertibles, nursery furniture, garden furniture suitable for use in a dwelling, scatter cushions, pillows and non-original covers for furniture. They do not apply to antique furniture or furniture made before 1950, and certain other items. Non-compliant items must be removed before a tenancy commences.

Smoke Alarms
All properties built since June 1992 must have been fitted with mains powered smoke detector alarms from new. Although there is no legislation requiring smoke alarms to be fitted in other ordinary tenanted properties (except HMO's), it is generally considered that the common law 'duty of care' means that Landlords and their Agents could be liable should a fire cause injury or damage in a tenanted property where smoke alarms are not fitted. We therefore strongly recommend that the Landlord fit at least one alarm on each floor (in the hall and landing areas).

Is your property a House in Multiple Occupation (HMO)?
If your property is on 3 or more levels and let to 5 or more tenants comprising 2 or more households (i.e. not all of the same family) it will be subject to mandatory licensing by your local authority. Whether mandatory licensing as above applies or not, if there are 3 or more tenants not all related in any property, it is still likely to be an HMO, and special Management rules will apply.

The Housing Health and Safety Rating System (HHSRS)
The HHSRS provides an analysis of how hazardous a property is through assessment of 29 potential hazards found in housing. Landlords have to maintain their properties to provide a safe and healthy environment. The HHSRS is enforced by local authorities.

Tenancy Deposit Protection
All deposits taken by landlords and letting agents under Assured Short hold Tenancies (ASTs) in England and Wales must be protected by a tenancy deposit protection scheme. To avoid any disputes going to court, each scheme is supported by an alternative dispute resolution service (ADR). Landlords and letting agents can choose between two types of scheme; a single custodial scheme and two insurance-based schemes.

The Disability Discrimination Act 2005
The DDA 2005 addresses the limitations of current legislation by extending disabled people’s rights in respect of premises that are let or to be let, and common hold premises. Landlords and managers of let premises and premises that are to let will be required to make reasonable adjustments for disabled people.

Energy Performance Certificates (EPC's)
Since 1st October 2008 landlords in England and Wales offering property for rent are required by law to provide prospective tenants with an Energy Performance Certificate for their property. In Scotland EPC's for rental properties have been required since January 2009. The certificates must be provided free either when (or before) any written information about the property is provided to prospective tenants or a viewing is conducted. An EPC's is valid for 10 years. We can arrange an EPC inspection for our landlord clients upon request.

Hensons specialise in HMO licensing and are able to offer a professional service to all our landlords making sure that you apply with current laws regarding HMO properties.

When a landlord offers a property for rent which is three storeys high (habitable) and with five bedrooms or more or people from two or more households, the landlord is then required to register the HMO with the local council. The license will be granted by the local Authority which will be subject to a fee and the license will last initially for 5 years. The requirements apply to properties which share facilities and do not apply to self contained flats or apartments.

For more information on Hmo Licensing please follow the links below.

• For more information on HMO Licensing
• HMO Licensing Standards
  
• HMO Application Form

How can I let my property quickly?

By giving your property the WOW factor. The best ones will always go first . Create the WOW factor with good decoration, nice modern furniture, well lit rooms and make sure you clean inside and out. Ensure we have keys and mobile numbers for any current tenants; so that we can arrange a viewing quickly.

How much can I rent my property for?

It depends on the location and overall condition of the property and furniture. Poor location and dated
furniture will lower the amount a tenant is prepared to pay. Check similar properties in your area for an idea of what the average person can afford. Don't and forget that people who can afford higher rent often end up buying.

How can I improve my chances of a successful let?

By offering property that closely matches the tenants needs. We question the tenant carefully to provide a concise description of the property type, location and budget available. If one of those factors is missed or over priced, then your chances are lowered. We have an equal interest in your success, as our income is generated from renting your property.

Should I furnish my property?

Yes in part, but before you swap your old sofa for a new one, remember that tenants preferences may not be the same as yours. Low cost, presentable modern furniture is widely available and we can provide general advice on what people are looking for. You also have a legal responsibility for the fire safety standards of furniture, furnishings and the general safety of any electrical or gas appliance provided. We are more than happy to meet with you and discuss your options.

What can I deduct from my tax bill?

Subject to the Tax Office approval, you can claim for 10% of the rent collected against wear and tear, the interest you have paid on a mortgage(but not the repayment), maintenance invoices, gas safety checks, new double glazing, service charges and our management fees.

Can I claim any more against tax?

Possibly. Many landlords have taken small loans or extended their personal mortgages. It may be possible to claim for the interest charged on such loans and personal mortgages.

Should I inform my mortgage company?

You must inform them that you are letting the property as they may want to impose conditions. If you do not, then you could end up in a situation of not being allowed to let the property and having to compensate your tenants.

Can I guarantee rent payment?

There is a rent guarantee option available. It costs more and requires tenants to pass a more rigorous reference check (which may put them off), but this can ensure rent is paid even if the tenants are late or miss a month (subject to terms and conditions).