Property Owner / Landlord's Legal Obligation
Section 11 of the 1985 Landlord and Tenant Act requires the Landlord to keep the property in good order. The main essentials relating to the property are 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 with the following:
The Furniture and Furnishings(Fire Safety) Regulations 1988 (Amended 1989 and 1993) and Gas Safety (Installations and Use) Regulations 1994.
Deposits paid by the Tenants
A deposit is paid by the tenant upon commencement of the tenancy which is then held by the DPS against any damage or cleaning required at the termination of the tenancy.
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 we advise you please consult your solicitor for their advice.
How much Rent should I Charge?
This will depend on your location of your property, size, type and quality of the fixture and furnishings. A rental valuation will be given during the initial visit of your property.
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 of the property during a tenancy, which is unavoidable and must be expected.
The tenant is responsible for routine garden maintenance.
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 etc
Before drawing up an inventor,y 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.
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.
Should you let your property Furnished or Unfurnished?
There is equal demand from the prospective tenants for both types of letting. How you let your property will depend on your circumstances.
Whether you let your property furnished or unfurnished has no bearing whatsoever upon your legal right to obtain possession of your property under the terms of the Tenancy Agreement used in compliance with the Housing Act 1988/1996 (as amended).
If you are a Landlord / Owner and Need Help Letting your Property,
Call Abacus Accommodation Today on 0115 952 8695