MYLANE, 2 THE QUADRANT, COVENTRY, CV1 2EL coventry@mylaneproperties.com www.mylaneproperties.com MYLANE Residential Lettings & Property Management LANDLORD GUIDE
Welcome to Mylane MYLANE 2 THE QUADRANT COVENTRY CV1 2EL COVENTRY CITY CENTRE Mylane welcomes you to our Coventry City Centre office. Our extensive local knowledge and experience of the letting market helps guide landlords through the minefield of regulations and legislation involved in letting a residential property. Our team is able to offer good practical advice on how to achieve the best return from your property. We use the latest technology and industry leading letting and management software, whilst ensuring our staff are constantly trained and always fully up to date on the latest property legislation, allowing us to provide an efficient and professional service at all times. Referencing All our referencing is done in house and our process ensures that tenants are only signed up if they meet our requirements. A number of references are obtained for each and every applicant these typically include credit checks, previous landlord reference plus reference from the tenant s bank or their employer if applicable. Guarantors are also sought where incomes do not adequately cover the proposed rent. Tenant Deposits Under the provisions of the Housing Act 2004 every landlord or letting agent that takes a deposit for an assured shorthold tenancy in England and Wales must join a Tenancy Deposit Scheme. On the 6th April 2007 the government introduced Tenancy Deposit Protection for all assured shorthold tenancies. The law now requires that any deposit taken from a private tenant by an agent or landlord is protected by a government approved scheme. This is a mandatory requirement and proof in a form of a certificate along with the relevant legal documents must be given to the tenant within 30 days of them paying the deposit. This guarantees that the tenants will get their deposit back at the end of the tenancy, subject to the terms within the tenancy agreement and condition of the property upon vacation. The use of Alternative Dispute Resolution (ADR) is to encourage landlords and tenants to try keep to disputes out of the courts. If you don t protect your tenants deposits when required to, your tenants can take you to court and you may have to repay them their deposit plus three times the amount of their deposit. You will also be unable to seek possession of your property in certain circumstances. Inventory A full inventory of items in the property and schedule of overall condition will help with any issues relating to damage or loss at the end of the tenancy. The introduction of the Tenancy Deposit Protection schemes has further reinforced the importance of this. Whether your property is furnished or unfurnished, without proof of the condition of your property prior to the tenancy, you will have no grounds to make a claim against a tenant s deposit once they have vacated. Our inventories are produced electronically using state of the art equipment and include colour photographs to further prove the condition of the property and a tenant given a copy to sign and agree. Marketing your property We use the internet heavily and recognise its value as part of our overall marketing strategy when letting your property. From our experience more enquiries are received via the web, rather than the traditional newspaper advertising. Our website features both internal and external photographs, in-depth descriptions, mapping and useful quick property view which gives tenants the information they need in a quick easy to understand format. Your property will be emailed to all prospective registered tenants and will also feature extensively on the UK s leading property portals, Rightmove, Zoopla and many more including our comprehensive and responsive website www.mylaneproperties.com which can be viewed by using PC s, laptops, tablets or smart phones. Despite the technological advances in property marketing, a For Rent board still generates a lot of interest and can achieve a lot of enquires for your property that s why we recommend a Mylane For Rent board is used. Deposit Protection As a member of Tenancy Deposit Scheme (TDS) we ensure that the deposits for our managed properties are fully protected. For properties that are not managed by Mylane, the landlord will need to protect the Tenants Deposit.
Essential Information Income Tax Income tax must be paid on the net receipts from investment property regardless of whether you are a resident or non-resident landlord. Letting agents can be asked to provide names of landlords to the Inland Revenue so it is imperative you fulfil your obligations in this regard. Items such as the following may be offset against your income: zloan interest zinsurance, ground rent and service charges zcosts of providing utilities (where applicable) including water and electricity zlegal and accounting costs zcost of repairs, redecoration or renovation of the property zagents fees HM Revenue & Customs Mortgage Landlord Insurance If the property is offered furnished, you are also eligible for a wear and tear allowance relating to furniture, fixtures and fittings. This is only applicable if no claim has been made against damage to these items. Overseas Landlords The scheme requires UK letting agents to deduct basic rate tax from any rent they collect for non- resident landlords. Landlords who reside overseas may apply to the Inland Revenue for an approval number which authorises the agent to pay rent without deduction of tax. As we can only offer general advice, we recommend that you should consult a qualified accountant for further advice. Mortgaged Property Before planning to let your property, any mortgage lender will need to be informed and written consent obtained before a tenant can be placed. Charges may be applicable for this permission and there may also be a change in their lending rate. Leasehold Property If your property is leasehold, the lease agreement should specify whether permission is required from the freeholder before you can sub-let to tenants. Insurance You must inform your building and content insurer of your intention to let, failure to do this could result to your insurance policy being void. Public liability should also be included in your policy. We are able to recommend a reputable insurer to provide the right cover at a competitive rate. Furnishing & Decoration When letting residential properties, two broad categories exist furnished or unfurnished. Your target market will largely dictate which direction you elect to pursue in fact, the industry standard in professional and/or student markets is furnished although demand still exists at a reasonable level for unfurnished accommodation. Furniture left in the property will be subject to wear and tear and that the tenant is not responsible for replacing (new for old). Aesthetic value is often the one factor that facilitates an increase in achievable rent for your property; the more appealing your decor and furnishings are, the more interest you are likely to achieve (and at higher values too). Keep walls and floors neutral in colour, good quality carpets, flooring and curtains are essential, especially if your property is unfurnished.
Safety & Legislation Electrical Equiptment Safety / Regulations 1994 All portable appliances that you supply should have Portable Appliance Testing (PAT) tested by a qualified engineer at the start of each tenancy and renewed annually. It is recommended that fixed wiring should be checked by a qualified electrician. All electrical certification should be carried out by an electrician whom is registered with the National Inspection Council for Electrical Installers and Contractors (NICEIC). There are two types of electrical certificates: Periodic Inspection Report (PIR) and Portable Appliance Testing (PAT). must be replaced or removed from the property. Compliant furniture must be capable of identification by a label attached to the item(s) by the manufacturer. If the furniture does not have a label it will likely require replacing. General Product Safety Regulations 2005 All fixtures and fittings which are to be left within the property should be visually inspected to ensure that they are safe and fit to use and items that are not should be removed. Gas Safe NiCEIC Energy Performance Certificate The following should be addressed prior to the commencement of any tenancy. As a landlord you are solely responsible for keeping accurate records and to ensure that you fulfil your legal responsibility in respect of a number of safety issues and your legal position throughout the term of each tenancy. Energy Performance Certificate With effect from 1st October 2008, all new tenancies require an Energy Performance Certificate. Their purpose is to determine how energy efficient homes are on a scale of A-G, A being the (most efficient) to G (most inefficient). The certificate is valid for ten years and must be provided to the prospective tenants free of charge, before they make a decision to rent the property. It is also required to market and let your property. Gas Safety Installation & Use / Regulations 1998 It is the landlords responsibility to provide the tenant with a landlord Gas Safety Certificate, issued annually by a Gas Safe registered engineer for all gas appliances. The landlord must keep a record of the safety check for two years and issue a copy to each existing tenant within 28 days of the check being completed. It is a criminal offence not to have a valid landlord gas safety certificate and the punishments for not having one may include a large fine and even a prison sentence. More information can be found at www.gassaferegister.co.uk / www.hse.gov.uk/gas. Smoke Alarms & Carbon Monoxide All properties built since June 1992 must have interlinked mains-connected smoke detectors / alarms on each floor of the property. Smoke alarms must be checked regularly to ensure that they are in full working order. A carbon monoxide detector should also be supplied if there are gas appliances in the property. In the case of older single family rental properties (built prior to 1992), technically there is no legal requirement for landlords to provide a smoke alarm. However it is strongly recommended that landlords do provide at least a battery operated smoke alarm or alarms in their rented properties Fire Safety / Furniture & Furnishings Regulations 1998 (Amended in 1989 & 1993) These regulations apply to furniture and furnishings, domestic upholstered and other products containing upholstery that remain in a dwelling during the course of a tenancy. Items of soft furnishings such as chairs, sofas, futons, beds, cushions, seat pads, nursery furniture and pillows (but not carpets and curtains, bed-clothes (including duvets), loose covers for mattresses, pillowcases, curtains, sleeping bags). Furniture manufactured before 1950 does not need to comply. Furniture manufactured before 1988 was often manufactured with materials that were not fire resistant and Water Act Water Act 2003 Tenants who rent a property for more than six months can apply for a water meter without the permission of the owner under The Water Act 2003. Houses in Multiple Occupancy (HMOs) If the landlord wishes to rent their property to multiple occupants, it may mean that a licence is required before the property can be legally rented. Houses in Multiple Occupation are also referred to as HMOs and the purpose of the licensing scheme is to improve management and safety standards in this area of the rental sector. All HMOs, whether the landlord needs a license or not, are subject to Management Regulations and Inspections under the Housing Health and Safety Rating System (HHSRS).
Fully Managed Service Landlord Services This is our most popular service, ideal for landlords who are either not local, or do not want to deal with the day to day issues of managing rental property and tenants and includes the following: Free rental valuation, advising as to the likely rental income Advise on compliance with the various safety regulations. We supply and erect a For Rent board where permitted. Property advertisement on our website and the major property portals, including Rightmove and Zoopla. Mail property details to our continually updated client database of waiting prospective tenants. We accompany tenant applicants to view a property. Obtain and evaluate references and credit checks. Emerge Prepare a suitable tenancy agreement and arrange signature by the tenant. Collect the tenancy deposit, which will be treated in accordance with current legislation. Prepare the inventory and schedule of condition. Notifying utility companies and the local council authority of the tenancy changes. Collect rental payments monthly, and paying the landlord promptly, together with a detailed statement from our computerised management systems. Inspect the property and report any issues. Arrange any necessary repairs or maintenance, first liaising with the landlord in the case of larger works. Safe Agent The Property Ombudsman National Approved Letting Scheme Deal with end of tenancy issues and deposit disputes. Check tenants out at the end of tenancy as required, re-let and continue the process with the minimum of vacant periods to ensure that you receive the maximum return from your property. Code of Conduct Selection of Service The commitment to the quality of our service to all clients is reinforced by our choice to work under the guidelines of professional bodies including the National Approved Lettings Scheme (NALS). We maintain and operate separate designated client accounts where your money is held completely separate from the operating funds of the business. At Mylane we keep things simple, so we offer two types of service. The highly recommended fully managed service is ideal for landlords who are either not local, or do not want to deal with the day to day issues of managing a rental property and dealing with tenants directly. The let only service would only be recommend to professional landlords, as unexperienced landlords can be left seriously exposed without the backing of an experienced agent. Let Only Service This service is for landlords who want to take over the day to day management of their property once a tenant has moved in. Our Service includes the following: Free rental valuation and advise as to the likely rental income. Advise on compliance with the various safety regulations. We supply and erect a For Rent board where permitted. Property advertisement on the our website and major property portals including Rightmove and Zoopla. Mail to our continually updated client database of waiting prospective tenants. We accompany tenant applicants to view your property. Obtain and evaluate references and credit checks. Prepare a suitable tenancy agreement and arrange signature by the tenant. Collect the tenancy deposit on the landlords behalf, which must be treated in accordance with current legislation by the landlord. Collect the first months rent and deduct our fees as agreed then forward the balance to the landlord. Pass all documentation to the landlord before closing our file.
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