Information for Landlords

LANDLORDS
THINKING OF LETTING YOUR PROPERTY?

If you are it could be for a variety of reasons.
Perhaps your job is taking you away for a while and, although the rent is important to you, your main concern is to have your home cared for professionally - not left empty for the likes of burglars and squatters.

Alternatively, you may be in the fortunate position of having property solely for investment purposes, and want to maximise not just on capital but on rental as well. Either way, the decision to let is a major one and not something to be gone into lightly.

Our staff have years of experience in property management and can let anything for you from studio style flat to a family home or an entire block of flats. Salter Rex can offer you a selection of services tailored to your individual requirements. Full details are given on the following pages. However, if you require any further information please do not hesitate to call us. We look forward to welcoming you.

We are able to offer you three levels of service, each tailored to meet your individual needs and circumstance.

 

TENANT INTRODUCTION

  • Marketing of property
  • Introduction of Tenants
  • Negotiation of the terms of the Tenancy
  • Apply for References
  • Negotiation of tenancy renewals

 

This service is for the Tenant Introduction only and any additional services will require payment in advance.


RENT COLLECTION

Rent Collection includes all items in Tenant Introduction above.  In addition, our centralised accounts team respond quickly and collect rent using their expertise in credit control to ensure optimum performance.

 

  • Whenever possible we encourage collection of rent by standing order.
  • Rent demands are sent 15 days prior to the due date.
  • Credit control is proactive and vigorous.
  • Cleared funds are promptly credited to your bank account by BACS or sent by cheque.
  • A statement of account is sent on a regular basis together with copies of any invoices paid.
  • By request copy statements can be sent to your accountants at the end of the tax year.
  • Applications for exemption to the Inland Revenue for overseas landlords, enabling rent payments to be made gross before deduction of tax, must be made by the landlord (forms available)
  • We prepare regular statements of accounts and liaise with accountants and other professional advisors, ensuring you are fully informed at all times.

 

MANAGEMENT SERVICE

The Management service includes all items in Tenant Introduction/Rent Collection.  In addition, it is our duty to maintain landlords’ peace of mind by protecting their investment. A well managed property increases the chances of a tenant remaining in the property for a greater period.

 

Our experienced and highly trained team of specialists ensure your property is continually monitored and maintained. They use sophisticated computer software that has been specially designed to effectively manage your property.

 

This service includes:

 

  • The payment of maintenance invoices and informing utility companies when a change of tenancy takes place.
  • The selections of suitable contractors to ensure standards are maintained.
  • Organising repairs.
  • Arranging access.
  • Ensuring that our clients’ properties comply with the latest safety regulations.
  • Advising our clients with legislative information upon request.
  • The reconciliation of deposits.
  • Communicating with the tenants and solving problems.
  • Handling insurance claims, as permitted by the Financial Services Authority.

 


FINDING THE TENANTS

Marketing
Professional marketing has always been the key to Salter Rex success in matching tenants to landlords. Our prominent eye-catching offices ensure a stream of prospective tenants through our doors.
Once instructed we will immediately begin circulating details to all matching tenants registered on our waiting list.

Salter Rex advertises through an array of both local and national publications and extensively on the web. This ensures that your property reaches the widest possible audience to secure you the highest possible rental value.

The Salter Rex lettings portfolio is circulated on a regular basis to local businesses, Universities, Hospitals and relocation agents. In addition we keep in close contact with major corporate clients and Embassies to provide a constant source of professional tenants.

Our aim is to find a reliable tenant at the best market rent within a reasonable period of time.

Viewings
Prospective tenants will be taken to view suitable properties accompanied by one of our professionally trained negotiators/managers. If the property is occupied, visits are strictly by appointment only.

References
All prospective tenants are interviewed and the information passed to a credit referencing agency for verification.

Employment details will be confirmed and checks will be made against the Electoral Register and Register of County Court Judgements. A credit check is also made to ensure that the tenant has a good credit history.

If the tenant is a company we will establish that it has the appropriate financial standing.

Salter Rex will never recommend acceptance of a tenant whose references do not come up to scratch. You can rely on us to do the necessary paperwork but ultimately, the final decision as to the acceptability of a tenant is made by the landlord. You will never be pressured to accept a tenant that you are not entirely happy with, for whatever reason.

 

FURNISHED / UNFURNISHED / GARDEN / APPLIANCES / HEATING / ELECTRICAL ITEMS

Furnished or Unfurnished?
Under the 1988 Housing Act there is no distinction between furnished unfurnished lets. The landlord enjoys the same legal safeguards regardless of how much or how little furniture is provided. The minimum that any landlord would be expected to provide would include floor coverings, curtains/blinds, light fittings and major kitchen appliances. However, many tenants require "furnished" accommodation where the landlord is expected to provide other major items of furniture.

Should a tenant request a specific item of furniture during the negotiation process we will confirm this with you.

Before planning any expenditure on furnishings please consult our staff who will be only too pleased to advise you on the best course of action as often a tenant may request a specific item of furniture during the negotiation.


Please note that any soft furnishings provided must comply with the 1988 Fire Regulations.

Garden
Landlords should always provide a lawn mower and garden tools as necessary. Tenants are responsible for the upkeep of the garden and are expected to exercise a reasonable degree of competence and care in its upkeep. However, it is unlikely that they will be experts. If your garden is especially ornate it may be a better alternative to include a professional gardener in the tenancy agreement.

Appliances and Heating
 Appliances should be cleaned, serviced and in good working order prior to letting. Service agreements, particularly for central heating, are strongly recommended to avoid unexpected bills.

Electrical Items
We do not recommended that landlords provide televisions and stereos or small electrical items for the kitchen, as the liability for repairs and safety lies with the landlord.

 

GENERAL INFORMATION

TENANCY AGREEMENTS
Unless we receive written instructions to the contrary we will use our standard form of Tenancy Agreement. Draft copies are available on request for inspection by you and your building society or solicitor.

TENANCY DEPOSIT SCHEME

The Tenancy Deposit Scheme was established under the Housing Act 2004. It requires landlords to register details of the start and end of all Assured Shorthold Tenancies on which they take a deposit. The Tenancy Deposit Scheme has been set up to service three principal objectives:

1) Protect deposits through the tenancy

2) Ensure the return of the deposit promptly at the end of the tenancy, where there is no dispute about the deposit

3) Where there is a dispute about the deposit at the end of the tenancy, ensure it is dealt with fairly and quickly by the Independent Complaints Examiner (ICE)

All of our deposits are held in this scheme. If you are a member of the TDS please provide us with your membership.

 

 

ENERGY PERFORMANCE CERTIFICATE

Since 1st October 2008 an Energy Performance Certificate (EPC) has been required by law under Article 7 of the European Directive on the Energy Performance of Buildings whenever a property is rented out to a new tenant. An EPC gives Landlords and Tenants information on the energy efficiency and carbon emissions of their property.  Since the October 2008 Landlords and Agents have been unable to market a property without having an EPC.  The Landlord will not be required to produce an EPC when an existing tenancy agreement is renewed, only when the property is being remarketed. An EPC is valid for ten years.

 

REFERENCES
We will instruct a credit referencing agency to check the tenants references on your behalf. The tenants address will be verified against the electoral register and a search will be made to find if the tenants have County Court Judgements registered against them. The references checked will include verification of employment details together with a personal reference and credit check.

REFUND OF FEES
Should a tenancy be terminated by operation of a break clause, we will refund to you the appropriate proportion of fees on a pro-rata basis. If a tenancy is terminated by mutual agreement between you and the tenant or through default by the tenant, then none of the fees will be refunded.

INSTRUCTION OF SOLICITORS
You will be advised of any rent arrears or breaches of the tenancy, which come to our attention. However, if it is necessary for a solicitor to take action, you will be responsible for instructing his own solicitor and for all fees involved.

OVERSEAS LANDLORDS AND TAX
THE FINANCE ACT 1995 AND THE TAXATION OF INCOME FROM LAND (NON-RESIDENTS) REGULATIONS 1995

 

  • Letting Agents are required by law to withhold tax from rental income unless specifically exempted by written authority from the Inland Revenue.
  • The Letting Agent is required to:
    1. Account for and pay over quarterly tax at the current rate on the net rental income less allowable expenditure within 30 days of each quarter end for Overseas Landlords (i.e. non-residents).
    2. Issue to the Landlord a Certificate in a prescribed form stating the tax payable for the year according to the returns submitted by 5 July following the end of each tax year.

 

Landlords can apply for an Exemption Certificate from the Inland Revenue whereby rental payments may be made to them without tax being deducted subject to the submission of an Annual Statement of income and expenditure and net Tax Liability to the Inland Revenue.  It should be noted that only Landlords can make the application and only on receipt of confirmation from the Revenue direct to the Letting Agent in the form of an exemption certificate can the Agent pay rents gross to the Landlord.

 

INTEREST
No interest will accrue for your benefit on deposits, retentions, tax reserves, rents or any other sum held by us on your behalf.

INDEMNITY
You will agree to indemnify us against all costs, claims and expenses properly incurred by us on your behalf.

VOID PERIODS
Our management service does not include provision of any services or supervision of the property when it is not let.

 

GETTING READY TO LET


How Much Rent Can I Charge?
Many factors determine the rental value of a property including the size, location and standard of furnishings. As the first step in letting your home we will arrange for one of our negotiators to visit and provide an opinion of rental value. We will also advise as to which of our services will best suit your individual requirements.

The rent quoted will be the highest market rent which can be achieved within a reasonable time span.


Your Mortgage
If your property is subject to a mortgage, your bank or building society will require details of the proposed tenancy before giving consent. In some instances a small administration charge may be payable.

The Freeholder
If your property is a flat or maisonette, the lease will indicate if it is necessary to obtain the freeholders/managing agents permission to let.

Insurance
It is the landlord's responsibility to insure the property and its contents against all normal risks. However, most policies apply only to owner-occupiers and it is important to contact your insurance company and find out how your cover will be affected. See the insurance section for further guidance.

Tenants will be responsible for insuring their own belongings.

Mail
Landlords should make arrangements to have their mail forwarded to their new address. This service is available for a small charge at the local Post Office.

Bills
The landlord is responsible for the payment of water rates, (assuming that the supply is not metered) and in the case of leasehold properties, ground rent and service charge. Landlords should notify the relevant authorities before vacating their property and arrange for closing accounts to be forwarded to their new address.

The tenants will pay the utility bills including gas, electricity and telephone charges and TV licence. They will also be liable for council tax during their period of occupation.

 

SAFETY & TAXATION


Safety
In general the landlord is responsible for ensuring that the property, and nay contents provided are safe and fit for their intended purpose. More specifically, landlords should make themselves aware of their responsibilities under the following legislation:-

1. The Gas Safety (Installation and Use) Regulations 1994.
2. The furniture and Furnishings (Fire) (Safety) Regulations 1988.
3. The Electrical Equipment (Safety) Regulations 1994.

Salter Rex will explain your obligations and ensure that the regulations are adhered to. A fact sheet is available on each of these important items of legislation.

Taxation
Income tax is payable on profit arising from letting. Profit is assessed by deducting allowable expenses from the rent received. These will include:-

- Personal Allowances (if applicable)
- Mortgage interest excluding tax relief
- Agents Fees
- Water rates paid by the landlord
- Insurance premiums related to the property and the letting
- Repair bills
- Ground rent and service charges
- Legal and accounting charges
- Wear and tear (10% of rental income during that tax year)

It is the landlord's responsibility to declare the rental income in their annual tax return under the rules of self-assessment.

If the landlord is going abroad the Inland Revenue will almost certainly regard him as non-resident for tax purposes. Although tax liability is calculated in exactly the same way as with U.K. residents, the system is operated in a different way. Should you require further information please speak to a qualified accountant