YOUR PROFESSIONAL AND COMPLETE GUIDE TO LETTING YOUR PROPERTY

020 8590 3553

LETTING YOUR PROPERTY

Thinking of Letting a property?

 Thank you for considering Brian Thomas Letting and Property Management. We will be happy to market your property and advise you on the rent likely to be achieved and answer any questions you may have about Letting or Managing your property.

Whether you own a property for investment, are going abroad for a while or simply cannot sell but want to move, letting is an important decision and professional advice will be essential.

Most types of furnished and unfurnished property can be rented,  anything from self-contained studio flats and family houses, to executive and prestige homes and country estates.

Section One – General Information

LEASEHOLD
It is wise to check your lease does not have a covenant, which prevents lettings.  You can check with your solicitor if necessary.

BUILDING SOCIETY (OR MORTGAGE LENDER) 
If your property is mortgaged you will require approval from your building society or bank before you let.  In most cases consent is given.  A small administration fee is usually payable to the mortgage company.

TAXATION
Rental income is liable to tax whether or not the Landlord resides in the UK.  Tax is payable on rental profit.  Mortgage interest, agency charges, furniture depreciation, repairs and maintenance is also taken into account.  Landlords are recommended to seek independent tax advice from your accountant.

TYPICAL FURNISHINGS
Whether the property you are proposing to let is unfurnished, fully furnished and part furnished; our advice is that you do not purchase any furniture until you find a suitable tenant.  Many tenants have their own furniture and fittings.  It would be a shame to purchase new furnishings only to find the tenant we introduce has their own.  
Important, All beds and mattresses should carry the label “BS7177” all other soft furnishings should carry the label “Carelessness causes fire”. If you are in any doubt whatsoever, please call us.

BASIC ESSENTIALS FOR FURNISHED PROPERTIES

LOUNGE
Carpet
3 Piece Suite
Coffee Table
Net Curtains
Heavy Curtains
Heating

KITCHEN
Cooker
Fridge/Freezer
Iron/Ironing Board
Vinyl flooring

DINING ROOM
Carpet
Table 
4 Matching Chairs
Net Curtains
Blinds/Curtains
Heating

BEDROOM
Carpet
Wardrobe
Double Bed
Bedside Table
Net Curtain
Blinds/Curtains
Heating

BATHROOM
Vinyl flooring
Shower Attachment

MISCELLANEOUS ITEMS
Lawn mower
Vacuum cleaner
Dustpan and Brush

APPLIANCES
We recommend Landlords take out service contracts for all major appliances, as they are repairable at the Landlords expense.  Also from October 1994, it became law for all gas appliances to be checked for safety annually by a registered ‘CORGI’ installer and records kept.  We will arrange this for you if you do not have a service contract in place.  You should also leave instructions for all appliances and clearly indicate the position of the main water stopcock. 

GARDEN
It is wise to ensure the garden is tidy and well maintained before the tenant takes occupation.  Where the tenant is expected to maintain the garden the appropriate tools should be provided.

THE LANDLORD AND TENANT ACT 1985
Section 11 of The Landlord and Tenant Act 1985 requires the Landlord to:
Keep in repair the structure and exterior of the premises including drains, gutters and external pipes.

Keep in repair and proper working order the installation for the supply of water, gas, electricity and for sanitation.

Keep in repair and proper working order the installations for all heating and water heating.

OBTAINING POSSESSION
Landlords must give at least two months notice under Section 21 of the Housing Act if possession is required at the end of, or after the expiry of the fixed term tenancy agreement.

This is obtained by serving a Notice Requiring Possession.  Unless otherwise stated in the Tenancy Agreement, tenants paying their rent monthly are required to give a month’s notice whilst tenants paying weekly need to give four weeks notice.  Whilst the term of an Assured Shorthold Tenancy can now be for less then six months, a court can still not evict a tenant under Section 21 of the Housing Act until a term of six months has expired.  There are other grounds for eviction i.e. non payment of rent where it is not necessary to give two months notice.

GENERAL CONDITION
In our experience the better and cleaner the property, the easier it is to secure a good tenant.  Good tenants do not generally rent properties in poor condition.  We therefore recommend that Landlords ensure carpets are clean, attend to any internal decoration required prior to the tenant taking occupation.  The tenant is not obliged to leave the property any cleaner upon vacating then it was when they took occupation.

INSURANCE
We will be delighted to provide you with information on all types of insurance cover for contents, buildings and legal protection.

MAIL 
We strongly advise that re-direction of mail is arranged. We cannot accept responsibility for any post.

SERVICES
Only you, the Landlord, can transfer gas, electricity and telephone prior to the tenant(s) taking occupation.  However, we will usually assist ingoing tenants with the transfer of services.

TENANTS
We attract all types of tenants through our extensive advertising and will always do our best to introduce the most appropriate tenant(s) to each property we market.

Fees and Money

The landlord agrees to pay the appropriate fees for the level of service engaged as listed in the Scale of Charges sheet attached to this Agreement and any subsequent revision of those, notified according to this Agreement.

The Landlord agrees to reimburse and compensate The Agent for any claim, damage or liability suffered as a result of acting on The Landlord’s behalf, unless it is due to negligence or breach of contact of The Agent or their employees. 

The Agent shall be entitled to retain any interest on any monies collected while held in their account; and any commission earned while acting on behalf of The Landlord. 

The Landlord agrees at all times to abide by HM Revenue and Customs rules for self-assessment. Full details can be found on the relevant HM Revenue and Customs website. 

If The Landlord appoints an accountant or other representative to handle his/hers tax affairs The Agent shall provide to the representative copies of all rent statements, if requested, for a standard fee as per the scale of Charges sheet attached.

In the event of a party introduced by The Agent (or person or body corporate associated with that party) subsequently purchasing The property either before or after entering into a tenancy agreement, commission shall be payable to The Agent on completion of that sale at the rate advised in the Scale Of Charges sheet attached. In consideration of such commission, The Agent will conduct negotiations between their introduced purchaser and The Landlord in respect of: 

• Securing from the proposed purchaser in writing their offer of purchase, anticipated completion date of purchase, details of action Solicitor and Surveyor, whether the purchase is to be cash or mortgage. 

• Forwarding the above information to the Landlord, requesting their response in writing confirming acceptance of the offer, agreed anticipated completion date of purchase and The Landlord’s acting Solicitor.

• Without prejudice to the obligations of The Landlord to pay any sums due within fourteen days of written demand The Agent shall be entitled to deduct any amount due to them from any monies due to The Landlord, unless payment has been withheld because of negligence or breach of contract.

Lettings Service

The Agent will visit The Property to view it and provide an indication of the likely rent achievable.

The Agent will market The Property to best attract a suitable tenant. Please notify The Agent in writing if there is a previous agreement with the less or other interested party not to erect a To-Let board. 

As and when applicants are interested in viewing The Property, The Agent will either accompany these people to The Property with keys provided by The Landlord, or arrange a mutually convenient appointment for them to meet The Landlord at The Property. 

The Agent will receive written applications and a holding deposit from the prospective tenants. 

The Agent will take up references appropriate to the tenant applicant. The Agent will not be responsible for any loss suffered by the Landlord when the tenant has been selected by The Agent in good faith, unless the loss is due to negligence or breach of contract by The Agent. 

When an applicant is found The Agent will provide them with a draft tenancy agreement if one is requested. 

The landlord will provide to The Agent one full set of keys providing access to the property per adult tenant and one set of other keys e.g. windows, sheds, outhouses etc. If The Agent needs to make more copies there will be a charge to the Landlord set out in the scale of fees. 

The Agent will, on behalf of The Landlord, arrange a suitable tenancy agreement, inventory and/ or statement of condition as appropriate and arrange for The Tenant to sign the counterpart and a copy of the inventory and/ or statement of condition. 

The Agent will collect monies due at, and conduct the move in. The Agent will then account to The Landlord and provide a statement of account showing fees deducted.

The Agent will instruct the tenant(s) to take meter readings and notify the relevant utility companies of their liability to pay for services to The Property as from the date of the commencement of the tenancy. If the tenant(s) fail to do this then The Agent will contact the utility companies and provide the relevant information. The Landlord agrees to pay any outstanding utility charges up to and including the date upon which The Tenant occupies The Property and for any void period between tenancies. 

The Agent will instruct the tenant(s) to inform local authority for Council Tax at the Property as from the date of the commencement of the tenancy. If the tenant(s) fail to do this then The Agent will contact the local authority and provide the relevant information. 

After commencement of tenancy, The Agent reserves the right to assign the rights and or obligations under this Agreement upon giving The Landlord two month’s written notice.

Homelet Rent Guarantee

If you decide to choose the rent guarantee Homelet Service, please be aware of the following:

• In support of our service for vetting prospective tenant’s financial covenant and general credit worthiness, if it turns out that a tenant falls into rent arrears for whatever reason, the Agent guarantees the payment of certain limited rent for landlords and will procure that this rent is paid for the account of the landlord. 
•  

Our commitment to you is that in the event that within (6 or 12) months of the start of the tenancy being the date upon which the tenancy agreement is stated to commence and provided that the date is within 60 days of the effective date of the reference certificate, there is any default in payments of the tenants referenced share of the monthly rent or part thereof, we will pay monthly, in arrears: 

• Up to a maximum of (amount tenant referenced for) per calendar month

• Up to a maximum of (4 or 5) payments  (the first months rental being collected with the deposit and excluding the first month of arrears), or until vacant possession has been gained, whichever is the soonest.

Payments will be made subject any deductions agreed in the agency agreement.

Deductions will also be made for any outstanding charges due from the landlord.

In the event of payments being made under this Warranty, all rights of the landlord to recover such sums shall be, and by signing the agency agreement are authorised to be, subrogated to the Agent in order to effect recovery of sums paid (in the name of the landlord if necessary or expedient). Recovery of rents paid out shall be at the discretion of the Agent.

This warranty is part of the service standard for our vetting service and you will receive immediate and automatic protection with the vetting service at no extra charge.

Full Management Service

The Full Management Service includes those items found in the Tenant Find Service plus the following: 

• The Landlord will provide The Agent with (or allow him to have cut at the landlords expense) an additional set of access keys for The Property to be retained by The Agent to facilitate access to the property for contractors, inspections and the other similar reasons.

•  The Agent will pay out of monies collected against all statutory and other charges which are payable by The Landlord for The Property, provided The Landlord has arranged for all relevant invoices and demands to be sent to The Agent and sufficient funds are held in the client account. If insufficient funds are held and The Landlord fails to provide adequate funds The Agent cannot make a payment and will not be liable for any loss or other consequences suffered by The Landlord.

•  The Agent will endeavour to collect rent and related payments due from The Tenant throughout the Term of the tenancy. The Agent cannot be held responsible if The Tenant fails to pay the contractual rent. Appropriate action will be taken to seek to recover rent arrears from The Tenant. If this does not have the desired effect The landlord will be advised to instruct solicitors who are specialists in Landlord and Tenant law to take further action. The landlord will be responsible for the legal charges and expenses, unless covered by a legal expenses protection scheme.

•  The Agent will provide to The Landlord statements of all income received and expenditure incurred and pay over monies due to the Landlord at monthly intervals as agreed, provided clear funds are received from The Tenant.

• The Agent will visit The Property not less often than once every six months. Any visit is a ‘walk through’ of The Property to ascertain any clearly visible repairs and maintenance and to find out from The Tenant any repairs that have come to his attention. It is not a survey or check of the inventory and statement of condition. The Agent will notify The Landlord of apparent and obvious defects but does not accept responsibility for hidden or latent defects. If the occupants are not taking proper care of the Property, The Agent will inform The Tenant, copying such information to The Landlord if required.  

• Supervise repairs and decorations up to a maximum of £150 which will be deducted from the Landlords next monthly rent account. Any works in excess of this amount will be notified to the landlord for their approval.  

• If The Agent needs to attend The Property to supervise any works being carried out there will be a charge to the Landlord set out in the Scale Of Charges sheet attached. 

• Emergency repairs, which are repairs or defects of such a nature that carry a risk of further damage to The Property, damage to adjoining property and personal injury will be carried out immediately and The Landlord will receive an invoice for the works carried out and monies deducted from their next monthly rental income.

•  The Agent will try to arrange a mutually convenient time with The Tenant for contractors attending The Property to undertake work on The Landlord’s behalf or for contractors to collect keys (with the tenants approval). Where this is not possible arrangements can (in exceptional circumstances) be made by The Agent to meet the contractor at The Property. Waiting time will be charged at the Hourly Rate specified in the Scale Of Charges sheet attached.

•  The Agent will pay for repairs from rent monies held. If there is insufficient funds to meet the cost of the repairs The Landlord will pay the balance to The Agent on demand. The Agent cannot carry out repairs if The Agent holds insufficient funds; and cannot be liable for any loss suffered or any deterioration to The Property due to any delay in repair when funds are not available, unless it is due to negligence or breach of contact of The Agent.

• The Agent will receive notices from The Tenant on behalf of The Landlord, advise The Landlord accordingly and take appropriate action.

• The Agent will negotiate and agree the level of rent payable when the tenancy is renewed.

• If the tenancy is a Short Assured Tenancy, upon The Landlord’s written request, The Agent will serve notice on The Landlord’s behalf, including Notice under the housing Act 1988, which is required to gain possession of a property let on a Short Assured Tenancy if The Tenant is not in breach of the tenancy. If The Landlord wishes to secure repossession of The Property The Landlord must contact The Agent at the earliest opportunity to ascertain when possession may be sought. The Agent cannot be held responsible for any delay in regaining possession if The Landlord fails to give sufficient written notice of the requirement to serve The tenant with the notice. Sometimes The Tenant will fail to comply with a notice and The Landlord will need to commence court proceedings to obtain a possession order.

• Upon written request from The Landlord, The Agent will prepare and serve the relevant Notice to Quit. The Landlord should give The Agent at least 3 month’s warning if The Landlord wished to regain possession at the end of the fixed term. The landlord will need to employ the services of a solicitor for the service of other notices.

• At vacation of The Property, The Agent will liaise with the tenant to agree and effect the arrangements for hand back of The Property, advising The Landlord accordingly.

• The Agent will check the statement of condition and the inventory at vacation of The Property and discuss the results with The Landlord. If the property is to be re-let The Agent will arrange, according to the provisions of this Agreement, any repairs or other works which are, in the opinion of The Agent, required to put The Property into a suitable condition for letting. Initially the costs of repairs and other work will be payable by The Landlord, with reimbursement of any costs that are later agreed with The Tenant as payable by The Tenant for any damage at The Property.

Section 4 in Pdf Format