Landlords
A
Guide To Letting
Building
on our long experience of lettings and management in both the rural and
commercial fields, we now offer a comprehensive service for the residential
landlord.
Rent
We
will be pleased to call to advise you on the market rent for your property.
Rents are payable by the tenant monthly to our client account. You will be paid
direct from this account and we will prepare, at regular intervals, an income
and expenditure account which you can send to the Inland Revenue.
Deposit
We
collect a deposit from the tenant to safeguard against damage. At the end of
the tenancy we will inspect the property and the costs of any work attributed
to the tenant will be deducted from the deposit.
Tenant
We
will find a suitable tenant for your property and take up references.
Agreement
We
will prepare a legal agreement under current legislation to suit your
particular circumstances. In general this will be an Assured Shorthold Tenancy
(AST) for a period of not less than 6 months and then renewable on a month to
month basis. This gives you the flexibility to re-occupy the house after giving
the tenant two month's notice to quit. Similarly the tenant may terminate after
the initial period by giving one month's notice.
Rates and Services
The
payment of water rates, council tax, gas, electricity, oil and telephone bills are usually
the responsibility of the tenants.
Repairs
The
landlord is responsible for all repairs to the property with the exception of
window glass or other breakages caused by the tenants. Small repairs can be
carried out by our contractors, or others nominated by you, and their charges
deducted from your account. We will always ask for instructions before
commencing any large scale repairs.
From
the total rent received in a tax year you can normally deduct, for tax
purposes, the following:
- Our
fees
- Fair
wear and tear & repair costs.
- 10%
of rent for depreciation, if furnished or part furnished.
- Interest
paid to the Building Society or Mortgage Company.
- Insurance
premiums.
- You
then pay tax on the remainder of the rent.
When
the landlord is resident in the UK, it is entirely his responsibility to inform
the Inland Revenue of rental income received, and to pay any tax due. However,
where the landlord is resident outside the UK during a tenancy, unless an
exemption certificate is held, we as landlord's agents are obliged to retain
and forward to the Inland Revenue on a quarterly basis, an amount equal to the
basic rate of income tax from rental received, less certain expenses. An
application form for exemption from such deductions is available from this
Agency, and further information may be obtained from the Inland Revenue.
Insurance
You
should ensure that you are suitably covered for letting under both your
buildings and contents insurance. Failure to inform your insurers may
invalidate your policies. We can advise on Landlord's Legal Protection, and
Landlord's Contents insurance if required. Your normal insurance is unlikely to
cover you against damage done by the tenants.
Fees
Our
fees for managing the property are some of the most competitive to be found.
For these fees we will:
- Find
you a suitable tenant
- Take
up references and credit check
- Draw
up a tenancy agreement
- Collect
the rent and account to you monthly
- Make
regular inspections of the property and advise you whether all is in order
- Advise
on any repairs that are necessary
- Provide
information and help on insurance.
Building Society Mortgages
If
there is a mortgage secured against the property, you must obtain written
consent from your lender to the letting. We can liaise with your lender on your
behalf if required. Some lenders might charge higher interest rates for let
properties and raise a service charge.
EPC
Landlords are required
to provide an Energy Performance Certificate prior to letting it out. We can
arrange this for you.
Tenants
A
Guide To Renting
Stanton Mortimer specialises in letting properties and prides itself on providing a personal service to both landlord and tenant.
This document is
designed to outline our terms and conditions and tries to answer most of the
questions that normally arise when a tenant is considering renting a property.
Should there be
any further queries that you may have then we would be pleased to assist.
1. LOOKING FOR A SUITABLE PROPERTY
When you start
looking for rental accommodation you should allow a minimum of two weeks to
find a suitable property, however in certain instances we can organise a
tenancy within a shorter timescale. Your first step is to consider your
requirements and priorities. The following are examples of the variables to be
considered:-
o The maximum rent
you wish to pay
o How long you
want to rent for
o Commuting time
to your workplace
o Your need for
local facilities, i.e. schools, shops, parks, restaurants
o Type of property
you would like, i.e. house/flat; modern/period
o The areas you
would like to live
o Whether
furnished or unfurnished
o Public transport
options
It is important
to recognise that your absolutely ideal property, in all respects, may not
exist and you may have to compromise on one or more of the above. The more
flexible you are, the more likely it will be that you can be settled without
any undue delay.
2. HOW MUCH CAN I AFFORD?
All tenants are
subject to a referencing process which includes an affordability calculation.
Your annual earnings (as an individual or as a couple) must be equal to or more
than 2.5 times the annual rent.
If you fall
short of these figures, it may be possible to be accepted if you can provide a
guarantor. Your Stanton Mortimer representative can advise you further on this
issue.
3. VIEWING PROPERTIES
When viewing,
you must consider the property carefully and ensure that you check exactly what
is and is not included in the furnishings and fixtures.
Any discussions
or correspondence with the owner, or our staff, are expressly deemed to be
subject to application, reference and contract.
4. CREDIT REFERENCES
Once you have
selected a property, the prospective tenant/s is required to complete a credit
reference application form and pay to Stanton Mortimer a credit reference fee
for each rent paying adult. These charges are non-refundable if you, as the proposed
tenant, fail the credit reference search or decide not to take occupancy of the
proposed property. We use a credit search agency who will carry out a search and
we advise the proposed tenant that the information supplied on the application
form will be used to trace tenants who vacate the property leaving damage or
rent arrears. The credit agency takes between 2 and 5 days and then provides us
with information on the following: -
o Voters roll
registration at current or previous addresses
o Details of any
previous bankruptcy in the last 10 years
o Details of other
searches and financial transactions
o Full score
information on tenant (pass or fail)
o Full employers
reference, commencement date and salary
o Bank account
reference
o Employer company
check confirming proper incorporation, date and reg. no.
o Previous/current
Letting Agent or landlord report (where applicable)
o Compilations and
assessment of all available information
o Recommendation
on applicants; suitability for the tenancy
An
administration fee is also charged to cover the costs of preparing the tenancy
agreement and associated documentation. We would ask that you contact us after
about 5 days to check that we have received the references and to arrange a
date for you to move into the property. If the house is vacant we can normally
arrange this within 10 days. We insist that the initial rent and deposit are
received into our bank account at least 3 working days prior to the moving in
date. Please note that the administration fee and credit reference fee should
be paid in cash or by Bankers Draft and will be required as a holding deposit
(non refundable under the above conditions).
NB: We cannot
under any circumstances divulge to you any information obtained from the credit
reference other than to say that it was satisfactory or not satisfactory.
5. TENANCY AGREEMENT
You will be
asked to sign a tenancy agreement. You should read this very carefully and keep
a copy. If in doubt do not sign the agreement. There are different types of
agreement such as:
Assured
Shorthold Tenancy Agreement. An assured shorthold tenancy agreement can be for
any agreed initial term but is usually for an initial term of six months. This
type of tenancy protects the landlord so that he can always obtain possession
once notice is served but must allow the tenant to live in the property for not
less than the initial term.
The landlord
giving not less than two months notice to quit on the fourth month, effective
after the first six months, can terminate it. The tenant could also terminate
it after the initial period giving one months notice in writing.
Stanton Mortimer
reserves the right not to proceed with a proposed tenancy.
6. RENT DAY
The Standing
order must be set up for four days in advance of the rent due date to ensure
cleared funds are received on the rent due date.
7. NON-PAYMENT OF RENT
Should this
occur then a ‘late rent’ letter will be sent to you requesting immediate
payment of the overdue rent and should this not be heeded then action will be
taken to recover the amount due. If the matter has to go to court you will not
only owe the rent but also our additional costs, legal expenses and court fees.
8. OUTGOINGS
The tenant is
responsible for all outgoings i.e. water, gas, electricity, community charge
and contents insurance for personal items within the property should the
property be unfurnished.
As occupation is
taken up, the necessary authorities should be informed of the date you take up
occupation, and your ongoing responsibility for their accounts.
9. INVENTORY
A detailed
inventory of the property will be given to the tenants. It is essential that
the inventory is accurate as you will be asked to sign the inventory and return
it to the local branch within 7 days of taking up occupation. It is normally
accepted that corrections can be made by the tenant to the inventory, but once
signed the tenant will thereafter be held liable to return the property in the
same condition as detailed on the inventory.
10. DEPOSIT
We ask tenants
that they supply one and a half months’ rent to be held by us as a deposit
during the tenancy. This will be refunded at the end of the tenancy once we
have checked the condition of the property. Deposits will normally be returned
10 days after the property has been vacated and keys returned to the local
branch and all final accounts have been paid. No interest is paid on deposits
held.
11. ELECTRICITY, OIL AND GAS SUPPLIES
These are the
tenant’s responsibility. At the commencement of a tenancy you should contact
the relevant companies notifying them of your occupation.
12. GAS SAFETY REGULATIONS 1994 – ANNUAL GAS SAFETY INSPECTIONS
Gas heating
systems should be checked regularly. By law a Gas Safe Engineer must inspect
each property every 12 months; the cost of the inspection is the responsibility
of the landlord. Stanton Mortimer Property Consultants will hold the
certificate of Gas Safety.
13. WATER RATES
Our standard
lease provides that the tenant is responsible for the payment of water rates.
Some properties are on a water meter. You will need to contact the relevant
authority to arrange for connection.
14. TELEPHONE
Tenants are
responsible for any connection or re-connection charge and should contact the
relevant company to have the telephone changed to their name.
15. HOUSE AND CONTENTS INSURANCE
The landlord
will insure the property and landlords contents. Tenant’s contents are not
covered by his insurance and the tenant should arrange their own.
16. COUNCIL TAX
This is the
responsibility of the tenant. You need to tell the Council Tax Office of the
date that you move in. Our experience shows that they are now very efficient
and will track tenants from property to property for recovery of tax. As
Letting Agents, Stanton Mortimer are obliged by law to tell the council of your
occupation, previous address and your forwarding address.
17. MAINTENANCE AND GROUND RENT (LEASEHOLD PROPERTIES ONLY)
The landlord is
normally responsible for both the maintenance and ground rent charges.
18. CLEANING / GARDENING
The tenant
should leave the house in a tidy condition. Should the property not be left in
a clean and tidy condition so that it may be immediately re-let, Stanton
Mortimer will employ a professional cleaner and the cost will be charged to the
tenant. The garden should also be left in good condition according to the
season of the year. If the garden is not being maintained during the term of
the tenancy and is not left in a satisfactory condition contract gardeners will
be employed and the tenant charged.
19. PETS
Our standard
lease precludes pets of any kind except upon written consent. It must be
pointed out that although visible damage caused by animals can normally be
noticed, there have been problems with flea infestation and smell after 2-3
weeks of the property being vacated. An additional deposit is therefore needed
and the carpets will need to be cleaned and fumigated under the terms of the
tenancy agreement.
20. INSPECTION
The lease allows
Stanton Mortimer to carry out inspections of the property to ensure that it is
being kept in the manner laid down in the tenancy agreement. Our experience
shows that some properties need to be inspected more frequently than others.
Our management visits will include investigation of defects, which come to our
notice or are clearly and adequately brought to our attention by the tenant. We
write informing you when these inspections are to take place.
21. FAIR WEAR AND TEAR
The tenancy
agreement allows for the tenant to have free and unabated use of the property.
The landlord accepts that there will be normal wear and tear to the property,
fixtures and fittings. If something has been maliciously damaged the tenant
will be held responsible.
22. MAINTENANCE
If any item
needs repairing please contact the office, on 01609 773004 immediately. We use
a number of local tradesmen who will respond quickly and attend to any minor
repairs of emergency. If the cost is likely to exceed £250 we are normally
required to obtain 2 quotations and the landlord’s approval before the work can
be undertaken.
23. NOTICE TO QUIT
The lease will
bind the tenant for an initial minimum period, either 6 months or a year. You
cannot terminate the tenancy during the initial period and will be held
responsible for all rent due. If, at the end of your initial period, you wish
to end the tenancy, you must provide Stanton Mortimer with a minimum one
month’s notice in writing to 80/81 High Street, Northallerton, DL7 8EG on or before your rent due date letting us
know when you wish to vacate the property.
If the landlord
should require you to vacate the property at any time after the initial period
then the landlord must give you 2 month’s notice to quit the property.
