Landlords

Letting Your Property

Letting your property, be it an investment, or your home, should be a successful and profitable exercise. At Property & Land Exchange we want you to get the most from your property and give you the best advice available, giving you peace of mind that your property is being marketed, let and managed to the highest standards by a friendly team dedicated to helping you get what you want from your property.

Being  landlords ourselves, we experience the same worries and anxieties that you do you. Like you, we worry about getting the right tenant at the right rent to cover the mortgage payments and upkeep of the property so you can you be sure your investment is in safe hands.

If you are looking to let your property to the right tenant at the right rent, while safeguarding your investment and income, the following information explains how to enjoy the rental experience with Property & Land Exchange.

Please take the time to read on. You may also download and print this information

Marketing

At Property & Land Exchange we recognise the value of marketing via the internet.

With 4 out of 5 people now finding their properties online, the Internet is by far the fastest growing commercial medium, available to thousands of new prospective tenants every day.

Following receipt of our signed Terms and Conditions we will begin marketing your property.

Rental Value

In today’s increasingly competitive rental market we can provide detailed guidance on achievable rentals, balanced by required time to let, and quality of available tenants at any target rental.

Our service is free, and is provided without obligation. This will be based on our experience and knowledge of the current rental market.

Your property will be featured on our website www.propertylandexchange.co.uk  

We will also advertise your property with the leading property finder sites such as Rightmove, Find a Property, Globrix, Fish for Homes, Find a  New Home, Hot Property and Prime Location to reach as many individuals and companies looking to rent.

When you choose an exclusive Property & Land Exchange marketing package you will benefit from:

• Full property details (usually only completed for sales properties) including room dimensions, colour photographs and virtual tours of each and every room on our daily updated website
• Prominent advertising in leading property papers
• COMING SOON! Virtual Tours of EVERY room in your property (available with our management service) – never done in lettings before, allowing prospective tenants to walk through your property 24 hrs a day, 7 days a week, 365 days a year.
• Eye catching “To Let” boards
• Applicants are kept updated with matched properties at the click of a button.
• Frequent updates/feedback

Preparing To Let

Presentation

Always present your property in the best possible condition. The more attractive your property, the greater your chances are of finding a tenant and keeping your property occupied throughout the year.

Good quality properties always rent quickly. When properties are obviously looked after and presented in the best possible condition, tenants are more likely to treat the property as if it were their own. If you don’t appear to look after your property, the tenant will do the same!

Also don’t overlook the furnishings – make sure these reflect the quality of the property, and the type of tenant you want to attract. Properties can be let down by the condition of their furnishings.

Also, the better the quality of furnishings the less maintenance and repair will be needed by you.

Furnished or Unfurnished

We get asked this a lot, and there is no right or wrong answer. In the past, furnished properties used to achieve higher rents however, today there is little difference in rental value between furnished or unfurnished.

You now also get the same legal protection when your property is furnished or unfurnished.

Whether furnished or unfurnished, the property should include:

• All kitchen “white goods”, ie cooker, fridge/freezer, washing machine, (a washer-dryer is recommended to avoid condensation), and in larger more expensive properties a dishwasheris always a plus.
• Carpets, curtains and/or blinds and light fittings.
• Unless a gardening service is provided, it is a good idea to provide garden tools, lawn mower etc
• Bathrooms should always include a shower, ideally have tiled floors and adequate ventilation
• Instruction manuals for all appliances, including boilers and timer controls

A fully furnished property would also include:

• furniture, linen, kitchen crockery and utensils

Soft furnishings must meet with current safety regulations. The Regulations are explained later.

Remember: Whatever appliances are supplied, it is the landlords responsibility to maintain and repair them should they break down.

Finding The Right Tenant

Behind every enquiry, every viewing, and every tenant is an individual, or a family who are working to solve their biggest problem ~ where to live.

At Property & Land Exchange we combine technology, market knowledge and people skills to match prospective tenants to properties and to find you the right tenant for your property.

Viewings

Depending on the package you choose, your property will be shown to potential tenants by one of our experienced negotiators at a time most convenient to you.

To ensure your property is let as quickly as possible we aim to keep viewing as flexible as possible. You will be kept informed of all viewings and any helpful feedback we receive.

References

When a prospective tenant has been found, a holding deposit is taken in order to establish a level of commitment. We then use a credit reference agancyto take up references on the prospective tenant. Checks undertaken are as follows:

• Voters roll check, incorporating current and previous addresses which confirm if the applicant or guarantor is present and displays for how long.
• Public Information check for CCJ’s, bankruptcy and voluntary arrangements.
• Assessment against other applicant details.
• Evidence of undisclosed addresses.
• Affordability assessments on rent income ratios.
• Credit Score. An automated deciding tool assessing applicant’s ability to meet payments.
• Validation of bank account addresses and sort code provided.
• Score on fraud potential.
• Obtain an applicants or guarantors employers reference where we will confirm salary details, position held, contract type and duration.
• Obtain a reference from the applicants’ present landlord and establish if any arrears or dilapidations were recorded.

Whilst we endeavour to select suitable tenants Property & Land Exchange can offer no guarantee in respect of references or rental payments. We can however refer you to insurance companies that will give you total peace of mind by arranging to have your rent guaranteed. These schemes make sure that your income will be secure even if the rent is not paid.

Please ask for more details.

 

The Paperwork

Tenancy Agreement

The Tenancy Agreement is a legally binding document and is drawn up to protect your rights to possession as well as detailing your responsibilities as a landlord and the tenants responsibilities. If you are in any doubt over its contents please do not hesitate to contact us. We use our own Tenancy Agreement except when a Company or Relocation Agency requires the use of their own.

The Agreement will usually be an Assured Shorthold Tenancy and will detail the length of the Tenancy, the amount of rent due and payment dates, inclusions, exclusions and anything else agreed, such as gardening services included, break clauses etc, as well as many ‘standard’ clauses required for the type of Tenancy involved.

Deposit

The deposit will be payable by the tenant before the Tenancy starts. The deposit is the equivalent of one and a half months rent and is usually held by Property & Land Exchange and lodged with The Tenancy Deposit Scheme.

The first month’s rent and the deposit are payable in advance by the tenant and will be collected by Property & Land Exchange prior to the start of the tenancy.

We will deduct our fees from this, together with any other costs incurred, such as the preparation of the inventory and the check-in. The balance will then be forwarded to you.

Return of Deposit

The deposit would be released when an agreement had been reached between the Landlord and Tenant regarding any compensation due for damages or cleaning etc. This is when the inventory report, and check-out reports become invaluable as it ensures that there is a fair, unbiased account of the condition of the property at both the start and the end of the tenancy. The Inventory Clerk acts as an independent third party, who can, if necessary act as an unbiased arbitrator in the event of a disagreement.

Tenancy Deposit Scheme

We are members of the Tenancy Deposit Scheme. This ensures that tenants deposits are protectedduring the tenancy and that should any dispute arise at the end of a tenancy they will be dealt with fairly by an Independent Complaints Examiner (ICE).

 

The Inventory

The inventory is a detailed document that will highlight not just the contents of the property, but also the condition and cleanliness of the property and its contents at the start of the tenancy.

We would always advise using an independent Inventory Clerk to provide an inventory of the property, whether it be furnished or unfurnished to avoid any unnecessary disputes regarding the condition and contents of the property at the end of the tenancy.

At Property & Land Exchnage we can arrange for the inventory to be carried out by a local inventory clerk.

The “Make”

When the inventory is compiled, it is referred to as the “make”. This will be done prior to the start of the tenancy. The inventory is then produced and a copy will be given to both the tenant and the landlord. You will each be asked to check through this thoroughly and advise of any discrepancies or omissions.

The Check-in

On the day that the tenants move in, the Inventory clerk will carry out the check-in. They will meet the tenants at the property, and go through the inventory with them, making sure that they agree with what is detailed on it. They will also take meter readings and hand over keys. They will ask the tenants to sign a “check-in declaration” confirming that they agree to the description of the property and its fixtures and fittings as detailed in the inventory.

Check-out

At the end of the tenancy, the Inventory Clerk will carry out a check-out and produce a check-out report. This will detail the condition of the property as well as the fixtures and fittings at the end of the tenancy. We do advise that the tenants are present for this.

Please note that the Inventory Clerk will charge for compiling the Inventory, the check-in and the check-out. It is usual for the landlord to pay for the make and check-in, and the tenant to pay for the check-out. Prices can be given on request.

After The Start

Utilities

Tenants will usually be responsible for paying all the utilities – gas, electric, water, council tax and telephone. The Inventory Clerk will take meter readings at the check-in and depending on which package you choose, we will arrange for the transfer of the utilities (gas, electric, council tax and water), with the exception of telephone.

We ask you to supply us with the details of the utility suppliers on our Landlord Information Sheet which we require you to complete prior to the start of the tenancy.

Inspections

Our management service includes inspections of the property at least four times a year during the tenancy. This is a general review and not an ‘item by item’ check, however it does provide us with an opportunity to assess the general condition of the property and highlight any maintenance issues that may need to be brought to your attention. It also gives us the chance to ensure that the tenant is maintaining the property to a satisfactory standard. Please see our Terms and Conditions for further details.

Review And Renewal

Approximately two months prior to the end of the tenancy we will write to the Tenant, to enquire as to whether they would like to renew the tenancy.

At this point, we can agree any revision to the rent before extending the tenancy. If the Tenant plans to move out we will contact the Landlord to confirm that the property can be re-marketed.

The Regulations

The Gas Safety (Installation and Use) Regulations 1994

This requires a Landlord to ensure that all gas fittings and flues are maintained in good order, and requires gas appliances and flues to be checked for safety by a GAS SAFE registered engineer (the Landlords Gas Safety Certificate). This must be carried out before a tenant takes occupation, and thereafter yearly. A copy of the certificate should be kept at the property at all times and a copy should also be provided to us for our records. Ashley Charles can arrange for the gas safety inspection to be carried out by a Corgi registered plumber.

The Electrical Equipment (Safety) Regulations 1994

This regulation requires that all electrical appliances, equipment and supply must be safe. Where their safe use requires, appropriate instruction booklets must also be provided. Plugs and sockets that are newly installed must conform to the appropriate British Standard or approved alternative.

Unlike the gas safety, there is currently no statutory annual testing interval. Yet, in order to meet the requirements, it is still important that all electrical equipment be tested regularly.

The Furniture & Furnishings (Fire)(Safety) Regulations 1988 & subsequent amendments

From March 1993, Landlords letting residential property must make sure that all upholstered furniture complies with the Fire and Furnishings (Fire)(Safety) Regulations 1988. Generally, these cover the need for fire-resistant filling material to upholstered articles and the passing of a match-resistant and cigarette-resistant test. Failure to do so could result in up to 6 months imprisonment and/or fines up to £5,000.00.

The correct method of displaying compliance is to check that a permanent label is present on all items of furniture. The regulations apply to:

• Three piece suites, armchairs & sofas
• Beds, headboards mattresses, divans & bed bases
• Sofa beds, futons & other convertible furniture
• Nursery & children\'s furniture
• Loose, stretch & fitted covers for furniture
• Pillows, scatter cushions & seat pads
• Garden furniture suitable for use in a dwelling

Any items not labelled may not conform to the regulation and will have to be removed from the property. It should be noted that any furniture manufactured prior to 1st January 1950 is exempt from the regulations.

Smoke Detectors Act 1991

Any new homes built after 1992 are required to have smoke detectors installed. Whilst not yet a legal requirement for pre-1992 properties, we feel this legislation will soon follow and we would strongly recommend Landlords install at least two smoke detectors.

Insurance and Tax

Insurance

As a Landlord you need to advise your buildings insurer that the property is to be occupied by tenants. The tenant will be responsible for insuring their own belongings but you should maintain cover for any contents you are leaving at the property.

If you would like more information oni nsurance products and services that are designed specifically for Landlords, please call us.

Mortages

We recommend that you tell your mortgage company you intend to rent out your property. Most Banks and Building Societies require you to seek their permission.

Income Tax

The Inland Revenue state that income from property is subject to taxation at standard rates, and your expenses in letting the property are generally tax-deductible (these often can include mortgage interest payments, but will exclude capital expenditure, such as furniture/appliances etc.). You will need to tell the Tax Authorities that you are renting out your property. We can offer general guidance, however, we strongly advise you instruct an accountant if you are uncertain in any way.

Non-Residents

If you will be living overseas you must complete an Inland Revenue NRL1 form (available from us) to enable an agent collecting rent on your behalf to transfer this rent on to you without deducting tax at basic rate. Please ask us for more information.

Capital Gains Tax

Again the position varies according to circumstances and we recommend an accountant is consulted for the correct advice.

Some points to remember before the start of the tenancy

• Cleaning - always make sure that the property is professionally cleaned prior to the start of a tenancy including carpets and curtains in all rooms. The tenant will be expected to return the property to this condition at the end of their tenancy, hence this should be a “one-off” expense for the landlord.
• Keys –you should aim to provide the tenant with at least two sets of keys for the property. If we manage the property we would also require a set.
• Gas Safety Check – make sure a Landlord’s Gas Safety Inspection is carried out prior to the start of a tenancy
• Electrical Check – make sure that all electrical appliances are safe and in working order (an inventory clerk will not check that appliances are working)
• Gardening –the garden should be tidied before the start of the tenancy
• Smoke alarms – these should all be tested and working
• Post - Make sure you notify the Post Office of your new address, as tenants cannot be relied upon to forward post to you.
• Instruction Manuals - always try to leave instruction manuals or information regarding all appliances, as well as boiler and thermostat controls – tenants want to be able to have heating and hot water readily available!
• Contact Numbers - unless choosing our managed service, please ensure that you supply the tenants with all your contact numbers, so that they can reach you at any time.
• Preferred contractors - if choosing our managed service – please let us know of any preferred contractors you would like us to use, we will be happy to use contractors who you are familiar with.

How We Can Help

We provide three standard service packages

SILVER

Our standard Let Only Service. This service covers:

• Rental Valuation of your property
• Full colour details with colour photos
• Advertising and promotion of the property on our website, Rightmove, Find a Property, Primelocation etc
• TO LET board supplied and fitted
• Obtaining a holding deposit from prospective tenants
• A full credit referenceon all prospective tenants using an independent credit referencing agency (who checks for county court judgements and late payments)
• Obtaining employment, bank, previous landlord and personal references again using an independent company.
• Collection of first months rent in advance, plus 1.5 months rent as a security deposit. (All monies mentioned less our fees will be paid directly into your bank account by electronic transfer.
• Accompanied viewings of your property
• Drawing up of the Tenancy Agreement and arranging signature by both parties
• Arranging the Inventory, including the make, check-in and check-out (landlord pays for make and check-in, tenant pays for check-out)
• Notifying the utility companies and local authority of change of occupier
• Advice on any aspect of letting

For further details feel free to phone us on 02380 661166 / 07515521020

GOLD

Our Let and Rent Collection Service. As well as covering all aspects of the Silver service, the Gold package includes:

• Receiving the rent on your behalf though our automated banking system and paying it into the landlords designated account by electronic transfer
• Detailed, easy to understand Monthly statements
• Processing and return of the tenants deposit, minus any charges for cleaning, and repairs
• Deposit lodgement with The Tenancy Deposit Scheme (TDS)

 

PLATINUM

Our Fully Managed Service designed for Landlords living abroad or in another part of the UK, or for those who simply don’t have time to get involved in the day-to-day management of their property.

In our managed service we will take care of all repairs and tenancy issues for you. We will also, for your peace of mind, visit the property to keep an eye on its condition.

As well as covering all aspects of the  Silver and Gold service, the Platinum package includes:

• Arranging maintenance and repairs as and when necessary (after obtaining your consent)
• Quarterly inspections of the property, with written reports on feedback posted / faxed or emailed to you.
• Within this service Property & Land Exchange can arrange on your behalf rent protection that will guarantee the rent for the term of the tenancy in addition to legal protection (conditions do apply and you are advised to speak with your Property & Land Exchange representative).