Things every landlord should know
Whilst you know might be aware of many of these points,
here is just a reminder of some key facts, based on
the questions we get asked most frequently by landlords.
Mortgage
If your property is mortgaged, you should obtain your
mortgagee's written consent to the letting. They may
require additional clauses in the tenancy agreement.
Leaseholds
If you are a leaseholder, you should check the terms
of your lease, and obtain the necessary written consent
before letting.
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 Landlords Legal Protection,
Rent Guarantee Cover and Landlords Contents and Buildings
Insurance if required.
Bills and regular outgoings
We recommend that you arrange for your or the tenant
to make regular outgoings e.g. service charges, maintenance
contracts etc. to be paid by standing order or direct
debit. Where they are paid annually, you should budgeted
monthly for these costs.
Council tax and utility
accounts
Whilst it is the tenant’s responsibility, you
may need to arrange for the transfer of Council Tax
and utility accounts to the Tenant. If nothing else
it always best to check this has been done, with a
few days of the tenant moving. Otherwise you will
have to prove you were not living there. Meter readings
should be taken, allowing your closing gas and electricity
accounts to be drawn up. Do not forget telephone,
TV and Internet services.
Income tax
When resident in the UK, it is entirely the Landlords
responsibility to inform the Inland Revenue of rental
income received, and to pay any tax due. Where the
Landlord is resident outside the UK during a tenancy,
under rules effective from 6 April 1996, unless an
exemption certificate is held, we as Landlord's Agent
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. Further information may be obtained from
the Inland Revenue.
The inventory
It is most important that an inventory of contents
and schedule of condition be prepared, in order to
avoid misunderstanding or dispute at the end of a
tenancy. Without such safeguards, it will be impossible
for the Landlord to prove any loss, damage, or significant
deterioration of the property or contents. In order
to provide a complete Service, we will, if required,
arrange for a professional to prepare an inventory
and schedule of condition. There are shocking new
figures showing that poor inventories are costing
landlords £12 million a year. The Video Inventory
Agency conducted this research.
Important
Safety Requirements
The following requirements are the responsibility
of the owner (Landlord). Where you have signed our
Full Management Agency Agreement, they are also our
responsibility. Therefore where we are managing we
will need to ensure compliance.
