LANDLORD GUIDE. Call us NOW on (Winlaton) (Dunston)

Transcription

1 LANDLORD GUIDE Call us NOW on (Winlaton) (Dunston)

2 HELLO Living Local are sales and lettings focused and we know lettings is a huge business and can be daunting. Keeping up with recent legislations can be difficult and no matter how experienced you are as a landlord, there is always something you need to know. As a landlord you will want to know what your responsibilities are and how the process works. We are regulated under the property ombudsman and ensure we keep up to date with all laws and update our agreements accordingly. In this guide we will guide you through the process and explain how each of our services work so you know which suits you best and what sort of things you need to be aware of. No landlord is ever the same and we don t think of you as a number, and we understand how important getting it right is. We are here to help you maximise the potential of your property and ensure everyone receives fantastic service from our friendly team.

3 The Process 1. Property Valuation This is the first step and is carried out at the property with you. You don t need to be present but it s best to attend so you can get the full ins and outs. This is booked on a day and time that suits you. The valuer can advise on your responsibilities of being a landlord, what the property can achieve on the market and what works would need to be carried out on the property. 2. Marketing We take professional quality photos on the appointment if the property is ready and create a digital floor plan. We will then create a brochure back in the office will the full property details so you can see how it would look on the market and we can discuss any changes or ideas you would like to try. Once you approve the details and sign your landlord contract, we can get the property advertised to potential tenants!

4 3. Viewings We carry out viewings unless you would like to do them, whatever works best for you. We work with the tenants and book them in a time slot that best suits them as we understand life is busy. We only show around the tenants you are looking for and filter out any you won t consider. We want to find you the perfect tenant, and the tenant their perfect home. 4. Taking A Holding Fee If a tenant wants to go ahead with your property, we ask them to fill in an application form which shows the fees they would need to pay and their full details. We will then put all their details to you and have a discussion about the tenant and answer any questions you may have. If you are happy to proceed with the tenant, we take their holding fee payment to reserve the property for them while they go through referencing. 5. Landlord Forms We will send you some forms to fill in; mostly questions about the property so we can provide the new tenant information that will be useful to them. You will also sign the offer of tenancy to say you are happy with the tenant. 6. Referencing Each tenant and guarantor (if applicable) will be fully referenced on their credit history, landlord

5 references (if applicable) and employment references. They will be carried out by a 3 rd party company called Van Mildert; they are very experienced and work to get the tenant through referencing as fast as possible. If there are any issues during referencing, we will talk you through it and see how you wish to proceed. 7. Deposit We can lodge the deposit (usually the same amount as the rent unless stated otherwise) with a registered scheme for you, we use the DPS (deposit protection service). We lodge this on the day the tenant moves in, and it s a legal requirement that the deposit is lodged within 30 days of the tenancy start date. This is held for the full tenancy length. A certificate is issued once the deposit is lodged. This is for a fixed fee of 35+VAT ( 42) or free if you are using our fully managed service. 8. Inventories These come as standard with the fully managed service or you can pay for our inventory clerk to carry one out for you. Please enquire about pricing as the price depends on the property size and furnishing type. The inventory clerk is a 3 rd party so the report is unbiased in any way and is carried out the day before the tenant moves in. The clerk produces a full report on the condition of the property and any furnishings. They

6 will also note all the small details from how many nails are in a wall, to the colour of the paint and what items are included in the property. It also includes photos, meter readings and a key list. The inventory is ed to the tenant who has 7 days to raise any concerns or note any differences they may find, which is very unlikely. You can also request a copy for your records. Inventories are very important so each party understands the condition of the property on move in day so you have evidence of any damages if you need to request deductions from the bond. 9. Sign Up And Move In When it comes to the tenant receiving their keys, we will arrange a time for them to come into the office, whichever suits them best. They will sign all the relevant documents including a tenancy agreement, EPC, CP12 gas safety certificate, tenancy information letter, final statements and an inventory declaration form (if applicable). We set up their standing order so we know it s done. We inform the utility providers with the tenant s details and meter readings with our fully managed service, which is another weight off everyone s minds. We provide them with a tenancy information letter with all the information about the property such as energy suppliers and where the instruction manuals are. They would have paid their first months rent and bond prior

7 to receiving the keys. They then receive their keys and we will transfer your payment to you via the given bank details along with any paperwork you may need such as the tenancy agreement. 10. Management - Depending on the service level you have chosen, we will set up the monthly fees to be generated to come from the next rent payment. If the property is managed all rent is paid to us and we pass it you minus are monthly fee and use only the best, well trusted local contractors to deal with any maintenance issues the property may have in the future. We carry out quarterly inspections on managed properties and the next date will be set up to book in with your tenant direct. What Is An AST (Assured Short Hold Tenancy?) Tenancies are usually set under a fixed term, we tend to do 6 months to ensure you and the tenant are both happy; you can also do 12 months if you require but remember you are tied into the contract for that length of time. After the initial fixed term you and your tenant can extend for another fixed term or go onto a rolling tenancy. This is where the tenancy goes on month by month and they can give 1 months written notice either on or before their rent due date. You as a landlord are required to give the tenant 2 months written notice to leave either before or on the rent due date. An AST is provided when the rent is under 25,000 per year and it

8 is let to private individuals. If a tenant is in rent arrears of at least 8 weeks, you can apply through the court to seek possession of the property.

9 Our Services We understand not every landlord is the same, that s why we have 3 different levels of service you can choose from. Tenant Find Quite self-explanatory. We will value your property and have a good discussion about your options. This option is usually the one experienced landlord s go for, who have a portfolio of properties. We market the property on all major property portals such as Rightmove, Zoopla, Onthemarket.com as well as social media like Facebook, Instagram and Twitter. We conduct the viewings, deal with applications, referencing, all the legal paperwork, and tenancy agreements and ensure everything is in place such as CP12 s and the EPC. We will set up the standing order, and process the bond. We give the tenant an information pack and their keys when they move in. You will then deal with the rent and maintenance yourself and liaise direct with your tenant.

10 Rent Collect We do the same as above and market the property however some landlords like a 3 rd party step in and take care of the rent side of things. Rent can be a little tricky and awkward especially if your tenant is late paying or doesn t pay at all. The rent will be paid direct to us and the tenant deals with us regarding rent payments. We chase them up if it s late so you don t have the hassle of doing so. We pass the rent to you minus are fee for processing it. Fully Managed This is a great option if you don t want to deal with the tenants in anyway and have everything looked after for you. It s a very popular choice for new landlords or landlords who live away. We do the same as above and fully market the property but we deal with all the rent payments and maintenance issues. The tenants contact us to report any problems as we have a range of local contractors who we know and trust to deal with the issues. We will let you know of the issues and have your authorisation to proceed. We also conduct quarterly inspections to check the tenant is looking after the property. An inventory report and check out report is done when tenants move in and out. We process the bond into the DPS scheme and provide utility suppliers with all details and meter readings. Please contact us to discuss your requirements and we can advise which service would suit you best and any questions you have on fees.

11 Changing Your Agent Is Your Current Letting Agent Not Getting You The Results You Need? Are they not keeping you updated on the interest the property is generating? Do you find it difficult to get in contact with them? Is it just hard work? You Can Change Your Agent And Be Stress Free. 1. Contact us and we can discuss your requirements over phone, or face to face, whichever is best for you. 2. We can discuss the best way to get the maximum rental return and how our services work and what sets us apart from other agents. 3. We will inspect the property to ensure everything is in order and that the property has working smoke alarms. Once you re happy, sign the agreement and leave the rest to us.

12 4. We will contact your current agent and obtain all the relevant paperwork to ensure we are following the law and stay compliant with legislation, this will include the tenancy agreement, gas safety certificate and deposit information. 5. If you currently have a tenant, we will contact them to introduce ourselves and to let them know of the change. If you are looking for us to manage the property, we will give them our payment details so they can change their payments to us and provide them with our contact details. 6. If you are still looking for a tenant, we will market the property with our professional grade photos and floor plans. We use all of the major websites to advertise such as Rightmove, Zoopla, Onthemarket.com as well as a huge range of social media site such as Facebook, Instagram and Twitter.

13 Lettings Legislation And Safety Regulations Regulations and legislations are very important to follow in lettings and we take it very seriously here at Living Local and you should too to ensure you re a responsible landlord. They are in place to help protect you and tenants. The key landlord responsibilities are explained below so you can ensure you are compliant. 1. Deposit As we explained in the previous section, having a bond registered in a Scheme is a must and must be lodged within 30 days of the tenant moving in. We use the DPS (deposit protection service) who hold the bond for the full duration of the tenancy. This is used to protect the tenant s money and can help with dealing with disputes at the end of a tenancy. We can submit the deposit for you and deal with all the admin work so you don t have to. 2. Gas Safety - If the property uses gas for a boiler, fire or hob, it MUST be checked by a gas safe registered engineer. Failure to do so can land you in a lot of trouble. The engineer will produce a certificate to show the appliances have been checked or offer advice on

14 anything that needs to be fixed. These must be updated every 12 months and must be done before a tenant moves in if you don t already have one. Don t worry we can arrange this for you with our local, trusted contractors and we can arrange this with your tenant. 3. Electric Safety Although having electric checks isn t the law unlike a gas check, it s good practice to ensure they are checked. You will need to use an electrician who is qualified and registered to do so. It would also be a good idea to have appliances left in the property PAT (portable appliance testing) tested. 4. Furnishing Regulations If you have any soft furnishings in a property you are renting out, they must comply with the regulations. All these furnishings MUST display a fire labels which can easily be seen. Any furnishings without these labels must be removed prior to a tenant moving in to reduce the risk of fire within the property. 5. EPC (Energy Performance Certificate) All properties must have an EPC certificate in order to rent it to a tenant, it s the law. It is a report that details the energy performance of the property and ideas on how to improve this with changes. The ratings go from A (most efficient) to G (least efficient). It is now illegal to rent out a property rated E and below so changes must be made If this is the case. An EPC lasts for 10 years. We must show a new tenant this document before they move in and we require they sign a copy to say they have seen it.

15 You and the agent could risk a fine without one. We can help arrange an EPC on your property for a small charge. 6. Housing, Health and Safety Rating system (HHSRS) This allows local authorities to assess the condition of the property and hazards there may be. This was introduced as part of the Housing Act 2004 and is there to maintain good standards in the private rented sector. 7. Tax You could be liable to pay tax on your rental income even if you live abroad. Visit for more information. 8. HMO (Houses In Multiple Occupation) This is when you let out a property to shared occupants who are not related and this means you will need to comply with regulations surrounding this. Read more here. 9. Smoke and Carbon Monoxide Alarms (England Only) When letting out a property, it is a legal requirement you supply and fit working smoke alarms to each floor of the property. These must be tested before a tenant moves and if the property is managed, we will check this for you. If not, don t worry we will send you a reminder to do this. It is then the responsibility of the tenant to ensure they are in full working order throughout their tenancy. If a battery needs to be replaced, they must do so. If battery replacement doesn t help then they need to report this to you the landlord or the managing agent to be replaced. Carbon monoxide alarms must also be

16 used if the property has a wood burning stove, a coal fire or an open fire place which uses biomass fuel. Right To Rent Checks We send each tenant the how to rent guide which is a legal responsibility and they must have had it from us or you as a landlord. It can be found on This helps make sure people renting in the UK have advice about what to do before, during and after their tenancy. We ask for confirmation that they have received and read the guide. We also ensure they have a legal right to be here. We also request photographic ID and proof of address (within the last 3 months) for each tenant to prove who they are. You could risk a hefty fine if you aren t compliant. Legionella As a landlord, you have a responsibility to ensure the properties water supply is safe for your tenants. You can find out more about this at Other Considerations Leasehold If the property you are letting out is a leasehold, check the terms of the lease as they can have restrictions and you may need to have written consent to let out your property. Some leases have restrictions which don t allow pets, have parking restrictions or restrictions with drying clothes and storing anything in

17 the communal gardens. It is the landlord s responsibility to pay for service charges. Mortgages If you have a mortgage on the property you wish to let out, you need to have permission from your lender to let out the property. Some lenders have restrictions on who you can let your property out to, such as tenants receiving benefits. Some may require a copy of the tenancy agreement which you can request a copy of from us. Utilities If you are using our managed service, we inform all utility providers of a new tenant and when they moved into the property and the meter readings. This includes gas and electric suppliers, council tax and the water board. They will then contact the tenant direct to set up the accounts. Ensure you close and finalise the accounts in the property in your name once they have moved in. Tax It is your responsibility as a landlord to inform HMRC of any additional income including rent. If you don t live in the UK you will be required to fill in a NRLI form and we can help you with this. If requested, we must legally provide HMRC with all the details if they do inspections on your file so ensure you are up to date.

18 What Type Of Tenant Do You Want? It s really important to think about whom you would like to let your property out to and we wouldn t let out your property to a person who we wouldn t let live in our own home. We understand the perfect tenant is crucial so we ensure we do our very best find you the right one. Do You Or Can You Let Out Your Property To A Tenant On Benefits (DSS)? If you are happy to do so, ensure your mortgage lender allows this and not all of them do. Some landlords prefer tenants who are working professionals only, which is no problem. We will filter out any tenants you won t consider. Will You Consider Pets In The Property? As a nation of pet lovers, a lot of tenants will have a pet of some sort so you may find it more difficult to find someone without any. We ensure we ask questions about any pets an applicant may have. We will ask if the pet is fully house trained, what are the care plan for the pet, is it ever left

19 alone? What their temperament is like and age. Some landlords are wary of pets, maybe because they ve had bad past experiences or have heard horror stories from others. Don t let that put you off and if you wish, you can require a slightly higher bond to cover costs of cleaning if needed. Would You Consider Children? Most landlords don t mind children but think about the property you have or are looking to buy and think if it would be suitable. If you have a property on a main road, would this put potential tenants off if they have children? Is it a mid/upper flat? Remember children like to play which could cause noise for the other residents in the block. If you don t want tenants with children, it wouldn t be practical to buy a 3 bed family house with gardens near schools. Would You Consider Smokers? I have never come across a landlord who is happy for a tenant to smoke indoors for obvious reasons such as damage and smell. We ask applicants if they smoke and if they do we stress they can smoke outdoors ONLY which many of them do. We ensure the tenant looks good on paper before we book in the viewing as we don t like to waste anyone s time. We then meet them to see what they are like as people as you tend to get a good idea of what they would be like as tenants and if they are the type of people you and we are looking for. We

20 then give you their full details if they wish to proceed to ensure you are happy and then they are fully referenced.

21 Getting Your Property Ready You want to ensure your property is ready for your tenant to move in to ensure they maintain the high standards during their tenancy. A professional clean is strongly advised and ensure the property is clean and fresh. It would be a good idea to let your property unfurnished so have less to worry about regarding damages and misuse. Some tenants have different requirements so some may require furnished or part furnished properties. White goods are good to have included but remember, it is your responsibility to have them repaired or replaced if something goes wrong. If you are not willing to do this, remove and white goods or electricals. Cleaning It s the tenant s responsibility to leave the property clean and tidy at the end of their tenancy. This is why an inventory report is so important, it helps you compare the property on a tenant leaving.it can also be used as evidence if you require any money to be deducted from the bond to cover

22 the costs of cleaning at the tenants expense so remember to take after photos and keep all invoices. Any gardens and outdoor spaces should be neat and tidy when the tenant moves in and out. Tenants are required to maintain gardens during their tenancy to a reasonable standard. Any hedges above head height are the landlord s responsibility. It may be worth having them removed if you can t maintain them or arrange a gardener to keep on top of them. Keys Each tenant needs their own set of keys for all doors in and out the property. They should also be provided with keys for windows so they can be opened and any keys for cupboards or sheds. You will need to provide your managing agent with a set in case they need to gain access to the property and you should also keep a set for yourself. You CANNOT enter the property without giving your tenant 24 hours notice. Instruction Manuals It is very important you proivde your tenants with instruction manuals for appliances in the property including the boiler. This reduces the risk of misuse. Ensure they are provided to your letting agent so they can pass them onto your tenant or leave them in a file in the proeprty, the best place is in the kitchen. Also include any useful information for your tenant such as where they would find the meters, when the waste

23 bins are collected, any alarm codes and how to use the cetral heating system. We provide all our tenants with a tenant information letter with all of these details. We will check the property ourselves if it s managed by us to ensure everything is as it should be. We will set the tenants up with everything they need. Don t worry if you are dealing with it all yourself, we ll send you some information on what you should check. Preparation Checklist o Check the property is clean and presentable o Take final meter readings and update the utility suppliers as well as water rates and council tax. Ensure key meters are clear of debt o Redirect your post if you re moving out o Leave instructions for all appliances including instructions for the heating system and alarms o Make a pack with copies of important certificates such as CP12 and electric safety certificate o Ensure you have keys copied and they work o Check all the doors and windows open freely o Check there are no guttering issues or leaks o Check inside all cupboards and drawers in case anything has been left and it s clean o Run the water through taps and flush toilets to ensure there are no obvious leaks o Check all lights and sockets work

24 o Ensure all appliances are clean such as oven/washer etc o Check the garden is tidy and gates open freely o Check smoke and carbon monoxide alarms work o Conduct an inventory, photograph as much as you can and take notes Preparation Checklist o Go through the inventory with your tenants and ask them to sign it to say they agree, implement any changes needed. o Show the tenants the smoke alarms work and explain they need to maintain them during their tenancy, get them to sign something to say they agree they work when they move in o Explain how appliances work and explain where the instructions work o Show them copies of the CP12 and EPC, get them to sign a copy to say they have seen them o Give them an information sheet and explain who the energy suppliers are, when the bin collection day is etc. o Hand over keys and keep the copies of documents for your own files. Ensure you exchange contact numbers so you can contact each other for things like maintenance issues.

25 Our Values There is a lot of bad press about estate agents sadly, we aim to be the difference and pride ourselves in providing an exceptional and personal service, we go above and beyond to ensure we exceed your needs, as well as the tenants. We ensure we carry out regular training so we know how to advise you best. You will struggle to find another agent as passionate and honest as the team at Living Local.