Professional Documents
Culture Documents
Landlord’s Guide
CHOOSING THE RIGHT AGENT
At Booth & Co we prefer to look on the relationship with our landlords as a business partner-
ship. As well as gaining an experienced business parter our clients also benefit from:
Up to date tenancy agreements which comply to the 1988 & 1996 Housing
Acts.
PROFESSIONAL BODIES
All prices are subject to change (correct at the time of printing), Extra fees may be added for heavily furnished properties, outbuildings or abortive
trips. Fees usually deducted from the first months rent collected by agent, other charges may be due, see terms and conditions for full details.
GETTING YOUR PROPERTY READY
Once you have instructed Booth and Co we can organise the preparation of your property to
ensure it meets all legal requirements and achieves the best possible price.
PRICE CONDITION
As well as experience Booth and Co use Tenants have become increasingly
the following to determine price: discerning. Moving costs can be high
meaning that properties must be clean,
• Condition is important, but a ten- functional and in good condition to be
ant’s choice of property is more considered.
about funcionality. That bespoke
kitchen won’t necessarilly get you a The key thing to remember is that you
higher price! are not going to live there, your tenants
are! When refurbishing avoid overspend-
• Similar properties on the market.
ing. Buy hard wearing, long lasting and
• What comparable properties have easily cleaned items.
recently let.
The property should have wide appeal,
Other considerations are:
be neutrally decorated, clean and unclut-
tered. Don’t forget gardens and outside
• Outgoings for the business, the
areas.
rent needs to cover the expendi-
ture against the property. Check
Furnished or Unfurnished ? There is
the figures before marketing.
little demand for furnished lets. Landlords
• Review your tenants’ total run-
must also consider increased insurance
ning costs. Are they reasonable?
costs, furnishing and electrical regulations
eg: High council tax can deter
and liabilities.
some tenants unless compensated
by reduced costs elsewhere.
THE INVENTORY
To ensure the highest possible standards
are maintained and that all regulations are
adhered to all inventories are undertaken
by independent, professionally qualified
inventory clerks.
Once settled both parties clarify the agree The law states that any landlord or agent
who takes a deposit from a tenant for an
Assured Shorthold Tenancy must safe-
guard it in an approved tenancy deposit
scheme.
MARKETING
Full High Quality particulars including floorplans, photographs & measur-
ments.
State of the art applicant management sytem where tenants are auto-
matically notified of new properties and can update requirements 24 / 7.
Accompanied Viewings
W
e believe that the best
way to protect our cli-
ent’s investment is by
developing and maintaining good
relationships with both tenants
and landlords.
T
enant verification is more than a are designed to complement all aspects of
credit check, it is an expert and their Landlord’s insurance and are qualify-
impartial third party verification of ing criteria to enable the provision of insur-
suitability of a tenant to rent property. On ance for damage caused by a tenant, Rent
application the tenant pays for sophisti- Guarantee and Legal Expenses.
cated searches designed for landlords to
confirm identity and give the best possible If you buy a Landlords Insurance package
indication of propensity to default. from Property Risks and confirm you have,
or will take one of their Comprehensive
All required information is completed Tenant Verification checks their insurers
online giving an ‘Instant Report’ showing will discount the premium.
immediate suitability, followed by a ‘Final
Report’ once referees such as previous
landlords and employers have responded.
G as Safety (Installation
and Use) Regulations
1998 require that all gas appliances (and
any flues and pipework serving such appli-
ances) are maintained in good order. Gas
appliances and flues must be checked
for safety every twelve months by a
registered engineer.
A copy of the safety check record or certifi-
cate must be given to the tenant within 28
days of the annual check.
We recommend checks be carried out as soon as possible as any necessary works may result
in delay. The penalty for non-compliance can range from a fine of £5,000 to an unlimited fine
or custodial sentence. Regulations governing gas and electricity are continually changing.
The above is only a brief guide and is not an authoritative interpretation. For more details
you should refer to the regulations themselves.
E lectrical Equipment
(Safety) Regulations
1994, the Plugs and Sockets
potential shock / fire risks, and identify any
defective work, lack of earthing or bond-
ing. Tests are also carried out on wiring
and associated fixed electrical equipment
to check that it is safe and a schedule of
etc. (Safety) Regulations circuits is developed during the inspection.
1994
Both portable and fixed electrical items
supplied as part of the tenancy includ-
ing wiring should be tested by an NICEIC
registered contractor.
REPAIR OBLIGATIONS
Under The Landlord and Tenant Act 1985 (LTA) Landlords must keep in repair:
(a) the structure and exterior of the dwelling; (b) the installations in the dwelling for the
supply of water, gas, electricity and for sanitation; and (c) in proper working order the
installation in the dwelling for space heating and heating water. Landlords can not be
held responsible for any works or repairs required as result of a breach of tenant duties.
Items supplied as part of the tenancy fall under The Supply of Goods and Services Act
1982 and should be good quality, durable, free from defect and fit for their purpose.
Landlords must repair or replace with a reasonable equivalent, items which have bro-
ken down. Such items can not be sold / given to tenants or removed from the inventory.
Clauses within the lease can not absolve landlords of this responsibility.
Tenants are obliged to give landords notice of any disrepair and must allow landlords
a “reasonable period” (judged by the type of repair) to carry out works. Tenants have no
right to hold rent in lieu of repairs.
A landlord or authorised representative may give 24 hours notice in writing to enter the
premises at reasonable times of the day to view condition and repair. However, action to
gain access does not involve making arrangements for forced entry into property.
DO YOUR SUMS
Before you start it is important that you are clear about what you are looking to get out of
your lettings business. Whatever your needs you must work out the finances. Here are few
tips:
• Rent achievable and void periods. Empty periods can be costly. A good strategy can
be to set rent just below the market average to minimise voids and give choice of ten-
ant.
• Financing costs
• Repairs & Maintenance (but not improvements)
• Heating & Lighting (when included in rent)
• Insurance
• Letting agency and accountant fees
• Professional & legal fees in connection with tenancies
• Cleaning and gardening costs
• Bad debts
• Administrative expenses
Want to Sell?
There are a number of reliefs available reducing the amount of tax you may have to pay on
a capital gain you’ve made on the property. Ask your accountant about Letting Relief and
Capital Gains Tax Allowance.
Living Abroad?
Non UK residents using a letting agent to collect rents should get an exemption from HM
Revenue & Customs so rent can be paid over to them without deduction by the agent (al-
though they may still be required to complete a UK tax return).
Otherwise the Non Resident Landlord’s Scheme requires letting agents to deduct basic rate
tax from any rent they collect for non-resident landlords. For more advice contact your ac-
countant or visit http://www.hmrc.gov.uk/cnr/nr_landlords.htm.
APPRAISAL
DO YOUR SUMS
GET PROPERTY READY TO LET
RETURN T&C’s TO AGENT
E.P.C.
MARKETING & VIEWINGS
SAFETY CHECKS & RECOMMENDED WORKS
TENANT APPROVED & REFERENCED
LEASES ISSUED
INVENTORY
RENT / DEPOSIT
TENANT IN
UTILITIES TRANSFERRED
INVENTORY SIGNED + RETURNED