A helpful guide for landlords. Residential Lettings

Transcription

1 A helpful guide for landlords Residential Lettings

2 As one of the most respected lettings agents in the area, our reputation is built on a professional service for our landlords and tenants. Welcome to Henry Adams Lettings and property management u u The lettings arm of Henry Adams has expanded significantly in recent years and is one of the fastest growing letting companies in the area. u u Whilst growing rapidly, we remain true to our original ethos of excellent personal service, and friendly, honest advice. u u Select from our range of proven property management services that are tailored to suit all needs from individual landlords letting their home for the first time to landlords with large portfolios of properties. u u Take advantage of our dedicated lettings offices covering Surrey, Sussex and Hampshire which are all staffed by teams of experienced property managers. u u Our offices are all linked by a web based computer database, enabling offices to access each other s properties and prospective tenants. u u Our latest software matches applicants with properties as soon as they come onto the market. Your property will quickly reach all potential tenants using the software, alerting them by or text for a speedier let. u u We have far more website exposure than some other local firms. u u Our computerised client account system ensures that our landlords receive their rent as soon as possible with all client money being fully insured. u u Our referencing procedures are vigorous, we are selective about your prospective tenants. u u Our in house property management departments, have numerous links with many corporate clients and relocation companies and as part of our comprehensive service we can also offer buy to let advice for those looking to invest in rental properties. u u We are members of ARLA (the association of residential letting agents), which is the recognised professional self-regulating body for the industry and we have ARLA licensed staff in all of our letting offices. Don t take risks when instructing an agent make sure they are ARLA agents. The company was first formed in 1990 by the late Henry Adams and it has grown rapidly since its inception, offering a wide range of property related services, across a large area. The lettings division has seen rapid growth in its portfolio, and is continuing to expand. With the population becoming ever more transient, many professional people and families see renting as a more flexible and viable option, which does not involve tying up vital capital. Tenants moving from one part of the country to another, due to short term work contracts, will often let their own property whilst renting themselves. The significant changes in legislation over the years have meant that landlords can let their properties in the knowledge that they will be able to obtain possession at the end of the tenancy. With a growing population and with the influx of workers from Europe and all over the world, we envisage the lettings sector continuing to expand significantly. simplydifferent

3 Lettings Service options for landlords There are various options available to landlords as far as the type of service required is concerned. A general summary of each option is detailed below, with each choice tailored to meet the demands of both the experienced landlord, and also those who are new to lettings. Full Management This service is very popular with landlords wanting complete peace of mind, and no contact with the tenant. Having found a suitable tenant, we will: u u Carry out a rigorous referencing process to ensure that the tenant can afford the rent and is credit worthy. u u Check to see that they have a good record with their existing landlord if applicable. u u Carry out a thorough inventory of the property prior to it being let, whether it is furnished or unfurnished. u u Prepare the tenancy agreement and serve the necessary deposit protection paperwork. During the tenancy, we will: u u Receive the monthly rent from the tenants by standing order. u u Undertake regular property visits. u u Carry out check-outs at the end of the tenancy. u u Deal with any day-to-day management issues that arise in connection with the maintenance of the property. u u If required, instruct the relevant trades person to carry out repairs. u u Also serve all the appropriate legal notices on behalf of the landlord. u u Notify all the utility companies of the change of occupant. Rent Administration This choice is popular with landlords who live locally and are happy liaise with the tenants regarding any maintenance issues. We will undertake all the pre-start of tenancy tasks as with the full management, we will also: uu Market the property. u u Carry out the same referencing procedure as with full management. u u Prepare all the paperwork prior to the tenants moving in. u u Prepare the inventory and serve the appropriate legal notices on the tenants, so that possession can be obtained at the end of the tenancy. u u Carry out the check-out after the tenants have vacated, to enable the reconciliation of the deposit. Tenant Introduction This option is usually taken up by the experienced landlord who is familiar with tenancy law and property management. In addition to marketing the property, we would reference the tenants and prepare the tenancy agreement. Thereafter the landlord deals with all maintenance issues and the serving of legal notices. We advise landlords to still have an inventory carried out, which we can organise at a competitive rate on their behalf. We can also protect the tenants deposit in accordance with the necessary legislation. Service levels offered Services Visit your property; initial rental appraisal and full consultation Take photographs, erect To Let Board Provide information on optional Rent Indemnity and Legal Expenses Schemes Extensive advertising and marketing initiatives Accompany all tenants on viewings (unless agreed otherwise) Obtain full references on tenants and any guarantors (if applicable) Prepare the appropriate Tenancy Agreement Compile a detailed inventory and Schedule of Condition Note meter readings; inform utility companies and local authority of change of occupier Receive the first months rent and deposit on your behalf Remit balance of monies to your account via Automated Transfer along with detailed statement Receive monthly rents throughout the tenancy and remit to your account Issue Monthly Statements Hold and protect the deposit on the landlords behalf Proactive, expert approach to rent arrears including the preparation of any legal Notices Carry out regular property visits by appointment Attend to repairs and general maintenance matters Arrange for your bills to be paid from your rent account Where requested, arrange for quotes and estimates for future works Arrange subsequent gas checks and ensure we hold a current Gas Safety Record on file Serve any required Section 21 Notices or Section 13 Notices on a timely basis as instructed Negotiate tenancy extensions and implement rent increases as appropriate Prepare a Supplemental Tenancy Agreement Carry out a thorough Check Out at end of tenancy; note meter readings and ensure all keys are returned Advise utility companies and local authority of change of occupier At the end of the tenancy arrange for any necessary cleaning, repairs or gardening to be attended to Complete a fair and accurate reconciliation of the deposit and return the deposit, or balance directly to the tenants Deal with any tenants queries after they have vacated Provided we have retained funds, pay any interim bills on your behalf If required, prepare the property for re-letting, recommend any necessary works and re-assess the rent. (Re-marketing and rental assessment usually takes place approx. 4/6 weeks prior to tenants vacating) Full Management Rent Administration Tenant Introduction

4 Why choose Henry Adams Lettings to let or manage your property? Our staff The most important asset of any firm is the staff they employ. At Henry Adams, we believe we have the best. From our property management department to the managers and negotiators, all our staff are comprehensively trained. Reputation We pride ourselves on having an excellent reputation within the industry. We are an independent firm, and we strive to offer clients a personal service, rather than treating them as numbers. We like to build long standing relationships with clients, as many landlords see their rented property as a long term investment. Corporate clients and relocation agents Over the years we have built up an extensive list of corporate clients and relocation agent contacts and many of our properties attract interest from clients/ tenants all over the country and internationally. ARLA The Association of Residential Letting Agents is the industry s regulatory body, responsible for overseeing member firms. Henry Adams is a member of ARLA, and as well as their providing useful advice on upcoming legislation affecting the industry, it means that all landlord and tenant funds are held in a fully protected client account. We encourage our staff to attend the ARLA courses, and many of our staff are ARLA qualified. SAFE agents We are members of the SAFE agent scheme meaning landlords and tenants can rest assure that client money is fully insured. The Property Ombudsman We are members of the Property Ombudsman meaning landlords and tenants have a system of redress should it be needed. We pride ourselves on having an excellent reputation within the industry. Many of our clients are from repeat business or recommendations, and we have very good working relationships with other professions in the area, such as firms of solicitors and accountants. Advertising and marketing We advertise in the newspapers local to our offices. We take out prominent multi-page displays, ensuring that our landlords properties are given excellent coverage. Our website is frequently updated, and our IT team make sure that it is both user friendly and also advanced. Our properties appear on the large portals, such as OnTheMarket.com and Rightmove, and in a world which is becoming more and more reliant on the internet, Henry Adams is very well placed to take advantage of this. Please visit our website at henryadams.co.uk and see for yourself. Brochures At Henry Adams Lettings we believe our lettings properties deserve the same treatment as our sales properties. To this end we produce brochures for our let properties which incorporate numerous internal and external photographs and a floor plan where possible. Internet With the vast majority of our enquiries coming through the internet we are constantly investing in this medium, all of our property brochures feature on our listings meaning our landlords properties are presented in the best possible way. As mentioned, we advertise our properties on all the major property websites including OnTheMarket.com, Rightmove and our own website. Online account access All our landlords can log in to a secure system to access accounting and other information. Chase Lane, Haslemere TBC Henry Adams Lettings is pleased to offer a beautifully presented detached house offering spacious accommodation in a sought after location. Accommodation comprises a stunning kitchen-breakfast-family room which leads into a conservatory/orangery area. There is also an drawing room with fireplace, generous dining room and study. To the first floor is a master suite with dressing room and bathroom, two further en-suite bedrooms and three further rooms sharing the use of the family bathroom. To the rear of the property is a lovely garden, mainly laid to lawn and the property also benefits from a double garage and ample off street parking. Chase Lane, Haslemere, GU27 3AG Offices in a great position to give you a professional service Our offices are situated in good locations, easily accessible to the public. As soon as a property is loaded on to the computer, our sophisticated web based system enables us to or text the details out to our database of prospective tenants. Lets are sometimes agreed within hours of a property coming to the market. We accompany all viewings, so we have a good feel for how reliable a tenant is likely to be. * Please ask within for details or visit To arrange a viewing call View details online at henryadams.co.uk Residential / Commercial / Rural /Development / Auctions It doesn t matter whether your property is a one bedroom flat or a large country house we will ensure that it is marketed professionally and efficiently.

5 Legal and moral obligations Landlords have a legal and moral obligation to ensure that the tenants and their visitors have a safe environment in which to live. Safety regulations have been revised over the years, and penalties for noncompliance can be very severe. Some of the most important acts to be aware of are: Things you need to know Furnished or unfurnished? The majority of tenants seeking properties outside London tend to prefer unfurnished properties, although it is advisable that carpets, curtains, light fittings and some larger kitchen appliances are often included. Buildings and contents insurance It is the landlord s responsibility to maintain buildings insurance. We recommend that the tenant takes out specialist contents insurance, which may cover accidental damage to landlord s goods. We also recommend that landlords have contents insurance, even if the property is unfurnished, to cover items such as appliances, carpets, etc, and also protection for public liability. Landlords must notify their insurers of their intention to let the property. Rent guarantee We recommend landlords seek advice on specialist insurances such as rent guarantee. We can put you in touch with specialist brokers. Mortgages We refer clients to independent mortgage brokers, who offer impartial and friendly advice. Please ask for contact details. You must obtain written consent to let from your mortgage provider if you have a mortgage. Taxation The rental income you receive is viewed as unearned income and is subject to UK tax, and should be declared on your self assessment return. Certain items can sometimes be offset against the rental income, so it is important to retain copies of your monthly statements, invoices and receipts. Such items may include mortgage interest, insurance premiums, service charges, ground rents, repairs and necessary maintenance works, legal and accounting fees and letting agency fees. If you are an overseas resident or you are intending on moving abroad, further rules apply and you will need to register with the HMRC and complete the relevant NRL1 form online. All people registered on the deeds of the property being let must submit a separate NRL1 form. We recommend that landlords seek professional advice regarding tax from their accountant/tax consultant. Presentation of your property One of the most important things to remember is that well-presented properties attract good tenants. First impressions can make a huge difference, and we are always ready to advise landlords with some useful tips to ensure that they spend money in the right areas. If you are unsure, just ask for advice. Generally speaking things like redecorating tired rooms, thorough cleaning including professional cleaning of ovens and carpets, sweeping chimneys and tidying any gardens all help in attracting the best quality tenant. At Henry Adams we are able to advise on what is required at what stage and provide contact details for trades and professionals who can oversee any work required to your property in preparing it for Let. Smoke and CO alarms The building regulations of 1991 state that all properties built after June 1992 must be fitted with smoke detectors and alarms, and properties built before this date must have battery operated units on each floor. Carbon monoxide alarms are required to be fitted in any room with a solid fuel appliance or open fire. Tenants deposits Deposits on Assured Shorthold tenancies must be held by a member of one of the government approved schemes, so that in the event of a dispute, the matter can be referred to arbitration. If Henry Adams is protecting your tenants deposit we will ensure that the correct paperwork is also properly served to avoid any potential problems in this regard. Energy performance certificates All properties coming to the market to let, must have an EPC which must be made available to the prospective tenant. An EPC is valid for 10 years. Consents If you have a mortgage or other loan secured on the property, you must obtain written permission from your lender before you enter into a tenancy agreement. If your property is leasehold you should also check with the freeholder to see if you require permission from them to let. The Furniture and Furnishings Fire (Safety) Regulations These Regulations made it an offence for any person letting a residential property to supply furniture and soft furnishings which does not meet the required fire safety standards. Gas safety regulations Landlords must ensure that gas appliances and pipework in a property for letting are maintained in good order and are safe prior to letting and then check annually. To reduce and prevent death or injury due to carbon monoxide poisoning, as well as other potential hazards linked to gas appliances (e.g. explosion), strict regulations were introduced which place clearly defined duties on Landlords and their Agents and also on Contractors. Electrical equipment (safety) regulations These Regulations require Landlords to ensure that all electrical wiring and equipment supplied in a property comply with the Regulations, and must be safe and free of risk of death or injury. Legionnaires Disease Landlords are under a duty to ensure that the risk of exposure to tenants, residents and visitors is properly assessed and controlled.

6 Some interesting facts u u It is essential for lettings agents to be up to date with new legislation which changes regularly. u u As ARLA member agents, we are updated with new laws, and we regularly attend their meetings and conferences to keep abreast of what is happening in the letting industry. u u We are committed to ongoing training for our staff. u u We are proud of our independence, which enables us to offer impartial advice. u u We are happy to advise investor landlords on where to buy, and also what to buy. u u Our thorough third party referencing service minimises the risk of bad tenants. simplydifferent uoutside u London, the vast majority of tenants prefer unfurnished properties. uu uu uu The private rented sector has grown rapidly in recent years and now consists of over 3.8 million households, which equates to about 17% of all households in England. It is estimated that buy-to-let investors hold on to their properties, on average, for sixteen years. A high percentage of our lets originate from website enquiries and through our proactive marketing and social media presence, this is increasing. u u It is now more important than ever to have a professional inventory carried out. u u For a variety of reasons lots of new groups entering the rental market has helped to create a shortage of properties available to let. u u The decline on mortgage availability coupled with high house prices has seen massive demand growth in the rental market.

7 Arrange lettings appraisal meeting with Henry Adams The process Here at Henry Adams Lettings whichever service you choose we aim to guide and advise you every step of the way. We have summarised the key differences between the different levels of services we can offer in the brochure but the process before the tenant moves in is very similar in most cases. 1 8 Decide which service level best suits your requirements Arrange landlord building/contents insurance and rent indemnity insurance 9 Complete and return HMRC, NRL1 forms (if applicable) 2 Property viewings commence Commence marketing/ advertising of the property Tenancy agreements compiled Offers received and let agreed 17 Tenancy agreements approved and signed 11 3 Formally instruct Henry Adams Lettings 6 Organise EPC, gas and electrical checks etc. Tenant referencing commences Professional inventory and schedule of condition compiled 15 Security deposit and initial rent paid by tenant 18 Complete and return all agency paperwork and forms 12 4 Prepare property particulars and take photos 5 Tenant referencing completed satisfactorily 14 Check in time and date arranged with tenant 19 Arrange for any final works/repairs/ cleaning etc to be carried out Check in carried out with tenants and utility meters read Keys handed to tenant 13 We like to build long standing relationships with clients, as many landlords see their rented property as a long term investment Appraisal In most cases the first step is for us to meet with you in person and visit the property you wish to let. This gives us the opportunity to see the property and to provide any advice or recommendations tailored to the specific property. We can also provide advice on anything that we feel will help the property let quicker or attract a higher rent level. Thinking of purchasing an investment property? We will be happy to provide impartial advice on any property you are considering purchasing no matter who the selling agent is. We are keen to be involved from the very beginning so we can make sure you find the perfect investment property for you in the right location for your target market. A number of our clients have found this element of our service extremely valuable as we are often able to foresee potential issues with properties that may alter a landlord s opinion on which property to purchase. Buy to let service Viewings We accompany all viewings (unless we agree otherwise) which gives us an ideal opportunity to meet and interview prospective tenants which forms the first step of our comprehensive tenant selection process. Negotiating Our team of experienced negotiators will communicate directly with tenants and landlords on any relevant issues to ensure the best possible outcome for our landlords. Move in If we are providing you with either our Full Management or Rent Administration service we will arrange for a comprehensive inventory and schedule of condition to be compiled, in addition to meeting with the tenants on the day the tenancy starts to conduct the check in, take the relevant meter readings and hand over keys etc. Our free buy to let advice service will provide new landlords with vital guidance from the very outset, our accounting and finance partners can also assist in understanding the process and Holiday Lets maximising your investment. Letting out your property on a short term basis may also be something you might want to consider, now or in the future. Henry Adams Holiday Letting department can give you clear and expert advice on this, and how you can generate a useful income stream. It can also be a viable option to bridge that awkward gap between selling and buying. To find out more please visit the dedicated website at henryadamsholidaylets.co.uk.

8 Frequently asked questions We are an independent firm, and we strive to offer clients a personal service, rather than treating them as numbers Q: What does the service cost? A: It depends on the level of service you require and how many properties you have multiple landlords receive a discount on our services to reflect the economies of scale. Q: When do I receive the rent? A: We recognise that many landlords have mortgages to pay for their investment properties, so we can transfer the net rental funds to your account as soon as cleared funds are in our bank account (Managed and Rent Administration only). Q: How can I be sure my tenant is suitable? A: It is in our best interests to ensure the tenants have impeccable references, too. All prospective tenants are credit referenced and we also request employment references, and (if applicable) previous landlord references. Q: What can I do if my tenant doesn t pay their rent? A: Our credit control system ensures late payments are flagged straight away with our accounts department and will result in immediate contact with the tenant. Persistent late payers are given verbal and written warnings. Q: Can I increase my tenants rent? A: Not within the initial tenancy period but you can upon renewal and of course we can advise on this. Q: What type of property makes the best buy-to-let investment? A: The simple answer is that it varies from area to area and depends what you are looking for from an investment. We are happy to advise on what could best suit your requirements so please ask us for more details. Q: Who is responsible for maintenance and repairs? A: It is the landlord s responsibility to ensure the building and the main supply systems such as central heating, plumbing, gas and electricity including appliances are fully working. Once the tenancy starts the tenant is responsible for any repairs arising from misuse or abuse within the property. Q: Whose responsibility is it to keep the garden tidy? Q: Why do I need an agent like Henry Adams? A: Many property owners who are new to property investment believe they can handle everything themselves. After all, finding tenants and collecting the rent can t be too difficult, can it? But by the time they have placed an advertisement and interviewed tenants, checked out the Electric and Gas safety Regulations and complied with the legalities of the Tenancy Agreement, not to mention collection from a bad payer, they begin to see the benefit in asking a professional team to look after everything on their behalf. Remember to use an agent who is a member of ARLA. Many agents are not regulated at all the public are often shocked that anyone without any lettings knowledge or client money protection can open up a letting agency. Q: Who pays the household bills? A: Usually the tenant pays for the heating, water, electric and Council Tax costs. Any service charges and insurances would normally be paid by the landlord. Q: Do you hold and protect the deposit under all the service levels? A: Yes we can hold and protect a tenants deposit on all of our services although landlords should confirm what charges apply. Q: Do you liaise between landlord and tenant to reconcile check out reports and deposits at all service levels? A: Our full management and rent administration services include us reconciling the deposit. If you have any other questions please don t hesitate to contact our lettings team. Q: Can I inspect the property at any time? A: The tenancy agreement requires you to give reasonable notice, usually 24 hours notice at least, except in an emergency. Landlords using our Management Service should contact their property manager who will make the necessary arrangements. A: Generally, it is the tenants responsibility to ensure the garden is kept tidy. Q: Do I need an inventory, even if my property is unfurnished? A: It is essential that a detailed up to date inventory is prepared prior to the commencement of any new tenancy. This document is then used to check for any damage when the tenant moves out. Damage to property can be claimed from the tenants deposit but general wear and tear cannot. A minority of end of tenancy disputes go to formal dispute and without an inventory it is very difficult to formulate a case.

9 The London Office Haslemere Horsham Petersfield Midhurst Billingshurst Haywards Heath Storrington Emsworth Chichester East Wittering Middleton-On-Sea Bognor Regis Rose Green Selsey Comprehensive coverage and local market knowledge Our network of offices provides first class service throughout Sussex, Surrey and Hampshire with the London link. simplydifferent