Introduction –
Letting your property can be a complicated process, one which many landlords have found to be a stressful and harrowing experience. We at ea2 aim to ensure that the letting and on-going management of your property is dealt with in a professional and competent manner offering security and confidence.
The notes contained herein are designed to answer some of the questions you may have. Alternatively, we at ea2 are always available to offer advice and assistance for any queries that you may have.
Fire and Safety Regulations –
It is illegal to let a property containing items of furniture that do not comply with current safety requirements as laid out by The Furniture and Furnishings (Fire) (Safety) Regulations 1988 and The Furniture and Furnishings (Fire) (Safety) (Amendment) Regulations 1993. Any items of furniture older than 1950 are exempt from the above. Most items purchased from 1993 should comply but we at ea2 are able to advise should you have any queries.
Gas Safety Certificates –
It is illegal to let a property without a current Gas Safety certificate. Under the Gas Safety (Installation & Use) Regulations 1998 it is the landlord responsibility to ensure all gas installations and appliances are maintained in safe working order. The Gas Safety certificate lasts 12 months and must be renewed whilst there is a tenant in the property. We at ea2 can recommend and organize a Gas Safety Registered Engineer should you require one.
Electrical Safety –
The Electrical Equipment (Safety) Regulations 1994 states that the landlord must ensure that all electrical appliances are safe and in good working order. A visual inspection of all electrical appliances should be carried out to ensure there are no obvious faults. We at ea2 can recommend and organize an NIC EIC Registered Electrician to carry out an electrical test. Landlords electrical tests last 5 years. PAT tests last 12 months.
Smoke/Heat/Carbon monoxide detectors –
It is a legal requirement to fit smoke detectors in rental properties. Smoke detectors should be fitted per floor. It is recommended to fit a heat detector in the kitchen for properties that are 2 stories or more. It is also a legal requirement to fit carbon monoxide detectors for all solid fuel heating and hot water systems.
EPC –
There must be a valid EPC, energy performance certificate to advertise a property to rent. The landlord is responsible for the EPC. An EPC is renewable every 10 years. The cost of an EPC is £80.00 Inc. Vat.
Additional Licensing -
It is a legal requirement to have an ‘Additional Licence’ for all rental properties where there are 3 non related tenants or more. More information can be found at www.towerhamlets.gov.uk If instructed on a full management basis then ea2 can assist with the landlords application and organising the requirements.
Insurance –
It is the landlord responsibility to ensure that the property and contents included within the let are insured. Items brought into the property by the tenants remain the tenant’s responsibility to insure.
Tax –
As a landlord you are liable for income tax on the rental income from the let property. It is your responsibility to inform Inland Revenue of this income. If you live abroad for 6 months or more per year, you're classed as a 'non-resident landlord' by HM Revenue and Customs (HMRC) - even if you're a UK resident for tax purposes. More information can be found at www.gov.uk for non-resident landlord: application to have UK rental income without deduction of UK tax - individuals (NRL1). Our letting Agents reference number is: NA036775. It is advisable to speak to an accountant to advise of your tax liabilities
General –
It is the landlord responsibility to pay any ground rent and or service charges relating to the let property. The tenant is however responsible for all utility charges including gas, electricity, water, telephone, TV License and council tax.
If the property being let is subject to finance and the terms of this agreement require consent, then you should obtain this consent prior to any tenancy.
Again, if the property is leasehold and requires consent to sub-let then this consent should be obtained prior to any tenancy.
We recommend that you as a landlord set up a mail re-direction agreement with the post office. This will avoid any potential loss of mail.
We should be supplied with the relevant sets of keys depending on the number of tenants moving in. We can have additional keys cut on your behalf with your permission. (Note: Under the Management Service we will require an additional set of keys for our use).
Tenancy Agreements –
We at ea2 only let properties using a standard Assured Shorthold Tenancy agreement as set under the Housing Act 1988, (As Amended 1996).
Inventory –
It is advisable to have an inventory of the furnishings and fittings of the property drawn up prior to any tenancy. This will confirm the furnishings and fittings and the condition prior to a tenant’s occupation. We use a professional inventory company to carry out all inventory reports. The landlord is responsible for the inventory report. The cost of the inventory report for a property up to 3 bedrooms is £150.00 Inc Vat.
Check In / Out –
It is also advisable to carry out a check in when the tenant moves into the property. This will confirm the condition of the property on point of move in and then again, at check out when the tenant moves out. We use a professional inventory company to carry out all Check In / Out reports. The Landlord is responsible for the Check In and the Check Out reports. The cost of a Check In/Out report up to 3 bedrooms is £150.00 Inc Vat each.
Referencing –
It is also advisable to carry references on the tenant/s prior to the commencement of the tenancy. This will provide information as to the affordability of the tenant/s, credit checks, previous landlords reference and employment referencing. Right to Rent checks will also be carried out to ensure the tenant/s are legally able to live in the Uk. We use a professional referencing agency to carry out all referencing which also offers landlords the option to take out rent guarantee insurance. The Landlord is responsible for the referencing. The cost of a reference is £75.00 Inc. Vat per reference.
Finding a Tenant –
We at ea2 will endeavour to find you the landlord a suitable tenant. Once we have agreed a monthly rent with you the landlord and the prospective tenant/s we will request the equivalent of 1 weeks rent as a holding deposit from the prospective tenant/s to secure their interest. Upon receipt of the funds the landlord has 15 days to agree to the tenancy. The 15 day agreement can be extended or shortened only with the tenant’s agreement. If no agreement is made, then the holding deposit will have to be returned to the tenant/s. Once agreement has been made, we will go through a series of formal procedures to verify a prospective tenants suitability including referencing and credit checking and rights to rent. If the tenant fails the right to rent checks, referencing because of false information or chooses not to enter into the tenancy with the 15 day agreement then there may be a case to retain all or part of the holding deposit.
Ultimately the decision to accept a prospective tenant lies with you the landlord and should you wish to meet them prior to them moving in then we will of course arrange this.
Damage Deposit –
We at ea2 request a damage deposit amounting to the equivalent of 5 weeks rent. The damage deposit is lodged with ‘The Deposit Protection Service’ as per the Housing Act 2004. Further information on this can be obtained from www.depositprotection.com. Where the annual rent is equal or above £50,000 per annum then a damage deposit up to the equivalent of 6 weeks can be requested.
Guarantors –
If we at ea2 are concerned with a tenant’s ability to pay the rent, for example should the tenant be a student then with the landlord consent we will request that the tenancy agreement is subject to a guarantor being in place. In this instance we shall carry out the relevant referencing and credit checking on the guarantor. The landlord is responsible for further guarantor referencing checks at £75.00 Inc. Vat per guarantor reference.