POINTS TO NOTE

LIVING OR WORKING ABROAD

If you intend to live or work abroad, ABACUS as your Management Agent must comply with the Income Tax Management Act 1970 Section 78, whereby 25% (or whatever percentage is applicable at the current time) of your rental income must be retained by ourselves and paid over to the Inland Revenue unless otherwise informed by them that you have been accepted as Tax Exempt in the non-resident Landlords scheme. ( please ask for details). There is an administration cost charged for this service per annum.

UK RESIDENT OR SERVING IN THE ARMED SERVICES

Property Owners who let their property and still reside in the U.K. or those serving in the Armed Forces, are also required to pay tax on net income, but they deal personally with the Inland Revenue as we are not required to withhold tax on their behalf. It is advisable to establish with the Inland Revenue what the tax liability will be, before any letting takes place.

DEPOSITS PAID BY THE TENANTS

A deposit is paid by the tenant upon commencement of the tenancy which is held against damage or cleaning required at the termination of the tenancy.

TENANCY AGREEMENTS

There are two main types of Tenancy Agreements: The Assured Tenancy and the Assured Shorthold Tenancy. If you have a mortgage on your property, your Mortgagor will advise on the type of Tenancy Agreement to be used, otherwise consult your solicitor for their advice.

PROPERTY OWNERS LANDLORDS LEGAL OBLIGATIONS

Section 11 of the I 985 Landlord and Tenant Act requires the Landlord to keep in good order the main essentials relating to the property i.e. water supply, drainage, sanitation and heating as well as ensuring the services of gas and electricity are available to the property. All property owners and landlords must also comply to the following: The Furniture and Furnishings (Fire Safety) Regulations 1988 (Amended 1989 and 1993) and Gas Safety (Installation and Use) Regulations 1994

WEAR AND TEAR

Although every care is taken to obtain the right tenant for your property. The owner must accept that there will inevitably be wear and tear on the property during a tenancy, which is unavoidable and must be expected.

GARDEN MAINTENANCE

The tenant is responsible for routine garden maintenance

OBTAINING PERMISSION

If your property is mortgaged through a Building Society or Bank, you need to obtain written permission to let from your lending source. It is very rare that permission is refused, but they will stipulate that you comply with certain conditions, for example length of letting period, type of Tenancy Agreement to be used etcetera.

INVENTORY

Before drawing up an inventory it is advisable to remove any items which are valuable or of sentimental value from the property. ABACUS will advise on the amount of furniture necessary and the type and amount of equipment required for furnished letting. If the property is to be let unfurnished, carpets, curtains and cooker are essential.

SERVICES TO THE PROPERTY

Final readings need to be obtained for Gas, Electricity and Water (wherever a water meter is installed) before you vacate the premises. Remember to have any telphone lines disconnected.

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