ADDITIONAL CONSIDERATIONS
MORTGAGE
If you have a mortgage on the property you should obtain written consent from your mortgage lender. They may require additional clauses within the tenancy agreement which we must be made aware of.
LEASEHOLDERS
If you are a leaseholder, you may need to obtain written consent from your freeholder or head leaseholder prior to letting. In addition there may be clauses within a sub-lease which may need to be added to the Tenancy Agreement.
INSURANCE
You'll need to make sure both the property and its contents are fully insured. You must inform your insurance company that the property is to be let, check that the conditions of the policy are complied with and that there are no restrictions on letting. We can give you details of companies who specialise in Buildings and Contents Insurance for Landlords.
COUNCIL TAX AND UTILITIES BILLS
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 dealt with. With regards to British Telecom it will be necessary for both parties to contact them directly to change the account over.
BILLS AND OUTGOINGS
If you are a leaseholder we recommend that you arrange for regular outgoings such as maintenance or service charges, to be paid by standing order or direct debit, however where we are managing the property, we may make payment of certain bills on your behalf, provided that such bills are received in your name at our office, and that sufficient funds are held to your credit.
INCOME TAX
It is entirely the Landlords responsibility if they are living in the UK, to inform the Revenue and Customs of Rental Income received and to pay any tax due. Where the Landlord is non- resident during a tenancy, he will require an exemption certificate from the Customs and Revenue before he can receive rental payments without deduction of tax. Where we are managing the property, we will provide advice and assistance on these matters.
INVENTORY
It is most important that an Inventory of the Contents and Schedule of Condition be prepared, prior to the occupancy of the property, in order to avoid misunderstanding or disputes at the end of the tenancy. Without such safeguards, it will be impossible for the Landlord to prove any loss or damage or significant deterioration of the property or contents. Although we do not carry out this service ourselves, we can arrange for an Independent Inventory Company to compile the Inventory and Check the tenant in. We use a specialist firm of Inventory clerks and we cannot accept any liability for their omissions or errors.
LEGAL REQUIREMENTS (INCLUDING HEALTH AND SAFETY)
The following requirements are the responsibility of the owner i.e. the Landlord. When 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
Under the Gas Safety (Installation and Use) Regulations 1998 all gas appliance s and flues in rented accommodation must be check for safety within 12 months of being installed, and thereafter at least every 12 months by a competent engineer (i.e. a GAS SAFE registered gas installer).
Full records must be kept for at least 2 years of the inspections of each appliance and flue, stating any defects found and of any remedial action taken.
A copy of the Safety Certificates issued by the engineer must be given to each new tenant before their tenancy commences, or to each existing tenant within 28 days of the check being carried out.
ENERGY PERFORMANCE CERTIFICATES
To comply with EU and UK law, all properties being let in England and Wales from the 1st October 2008, will require an Energy Performance Certificate. An EPC is used to clarify the energy efficiency of buildings and is compulsory for all properties on the rental market. The certificate provides rating for the building being advertised for let. It uses ratings; “A” to “G”, with “A” being the most energy efficient and “G” being the least energy efficient.
FIRE
The Furniture and Furnishings (Fire)(Safety) regulations 1988(amended 1989 & 1993) provide that specified items supplied in the course of letting properties must meet minimum fire resistance standards. The regulations apply to all upholstered furniture, beds, headboards and mattresses, sofa beds, futons, 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, bedcovers including duvets, loose covers for mattresses, pillow cases, curtains, carpets or sleeping bags. Items which comply will have a suitable permanent label attached.
Non-compliant items must be removed before a 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’. Although with tenanted property there is currently no legal requirement for an electrical safety certificated (except in the cases of HMOs) it is widely accepted in the lettings industry that the only safe way to ensure safety and to avoid the risk of being accused of neglecting your ‘duty of care’ or even of manslaughter is to arrange such an inspection and certificate. These regulations 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.
SMOKE ALARMS
All properties built since 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 tenanted properties, it is generally considered that the common law ‘duty of care’ means 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.
TENANTS DEPOSIT PROTECTIONS SCHEMES
From 6 April 2007, all deposits taken by landlords and lettings agents under Assured Shorthold Tenancies (ASTs) in England and Wales must be protected by a Tenancy Deposit Protection Scheme. Landlords and Letting Agents must not take a deposit unless it is dealt with under a Tenancy deposit Scheme. To avoid any disputes going to court, each scheme will be supported by an alternative dispute resolution service (ADR). Landlords and Lettings Agents will be able to choose between two types of scheme, a single custodial scheme and two insurance based schemes.
TENANTS REFERENCES
Once we have a prospective tenant, a holding deposit is taken in order to establish a level of commitment. We engage an independent licensed credit reference agency, to take references on the prospective tenant. These cover employment, computerised credit checks, bank reference, and previous Landlord or character references. If you make a request in writing you will receive copies of these references.
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