GUIDE FOR LANDLORDS Experience a refreshing new style of estate agency
introduction In this guide, you ll find our top 10 tips to getting your property prepared for new tenants to move in. We cover everything from highlighting your responsibilities and receiving & agreeing offers, to the day of the move itself. Need to discuss what s included here further? No problem. Get in touch with our friendly teams in Canary Wharf and Mayfair on 020 7078 0214, 24 hours a day, 7 days a week. Alternatively, email us at info@kh-estates.com and we ll get right back to you. You can also visit our website www.kh-estates.com for more information. 2
contents arranging a valuation and choosing an estate agent 4 knowing your responsibilities 5 the costs 7 property management 7 preparing your property 10 marketing 10 accompanied viewings 12 receiving and agreeing offers 12 deposit & tenancy agreement 15 moving in 15 3
arranging a valuation and choosing an estate agent To get an idea of the rental value for your property, you ll need to arrange a valuation. Your first step will be to choose an estate agent who can deliver a smooth, swift rental without compromising the quality of service. For a tailored experience that ticks all the boxes, it s important to take such propositions into consideration: Knowledge of the local area / property market. Basic or extensive marketing. Sole or accompanied viewings. Customer service. Office opening hours. 4
knowing your responsibilities You must comply with all current legislation if you re a landlord letting property in England and Wales. Non-compliance can lead to financial penalty, and in some cases, imprisonment. Here s some of what to look out for: Gas safety A yearly gas safety check must be carried out on every gas appliance/ flue. To comply with regulations, a gas safety certificate must be organised for the property every 12 months. This will be required before the new tenant moves in. Electrical safety Electrical appliances left in the property must be tested by a qualified engineer. This is in compliance with the Electrical Equipment (Safety) Regulations 1994 legislation. Furniture and furnishings Soft furnishings must also comply with the Furniture and Furnishings Safety Regulations 1988 legislation, and be fire safety compliant. This information can be found on all furniture fire safety labels. EPC (Energy Performance Certificate) Every rented property requires an Energy Performance Certificate (EPC) and should be prepared before marketing the property. This certificate will calculate the energy efficiency of your property, and will be graded by scale, from Grade A (being the most efficient) to Grade G (being the least efficient). The EPC will also advise on the potential efficiency of the property following recommended works. We can take care of this on your behalf. Speak to our team on 020 7078 0214 for more information. 5
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the costs We want to make sure you re fully aware of the costs that could affect you as a landlord. After all, no hidden costs means no nasty surprises. Insurance premiums Buildings & contents insurance for landlords is different to standard home cover. A comprehensive policy will ensure you re protected in the event of damage caused by tenants, or if the property sits unoccupied for long periods of time. Rent guarantee insurance provides protection if a tenant fails to pay the rent, and also provides legal expenses cover if you face tenant eviction. Replacing fixtures and fittings Replacing worn out fixtures and fittings can amount to 10% of the rent each year. Decorating should also be taken into consideration, as it may need to take place every two to three years depending on how many tenants have occupied the property in that period. Maintenance Whether a household item needs a quick repair or replacing completely, you ll need to set aside a percentage of the rent to take care of it. Remember, the older the property, the more likely it is that maintenance will need to be carried out more often. Letting agency fee Letting agency fees vary. Our fees for let only are 12% (incl. VAT), while rent collection is an additional 4,8% (incl. VAT). For fully managed, we charge 7,2%(incl. VAT) on top of the tenant find fee. Landlord property tax You re required by law to pay tax on any profit you make when renting out a property. Tax is payable once deductions for allowable expenses have been made. property management Letting doesn t have to be stressful. Choosing us to manage your property ensures it is being taken care of by experienced professionals, and at the same time, alleviates any worries that come with having to do it yourself. In managing your property, we ll provide you with peace of mind that what s important to you is looked after, from the house itself, to your tenants, and everything in between. Your dedicated property manager will take the time to get to know you and your property, and will oversee the day-to-day running, any emergency repairs, and much more. 7
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preparing your property Otherwise known as staging, making sure your property is well-presented is crucial to securing new tenants. Spare no expense in preparing your property for viewings as it ll only pay for itself in the end. Seal the deal with these tips: Finish any outstanding DIY jobs. Applies to: giving the bathroom a fresh coat of neutral paint, or decluttering smaller rooms so that they appear larger. Taking care of the easily-overlooked will add to the property s rental value. Keep some of the property s personality visible. Although it s important to ensure the space you re offering is a clean canvas, your tenants will want to visualise their life there. A few personal touches will help create a home. Complete repairs. Anything from holes in the walls and faulty doorknobs, to threadbare carpets and cracked or missing tiles. Tenants are usually looking to move in immediately, and making these repairs will speed things up. Invest effort in giving the property a deep clean. Polish any chrome until it sparkles and mop the floor to remove any marks or stains. This will create a lasting impression on potential tenants, and if they ve got viewings lined up, it ll help your property stand out. marketing Marketing your property well is almost as important as preparing it. By choosing us, you ll have full, unlimited access to our superior marketing package that will help secure a tenant in no time. You ll get: Maximum exposure on our fully responsive website. Listing on the industry-leading property portals such as Rightmove, Zoopla, and Prime Location. Full-colour property details. Detailed floorplans. Professional photography. Coverage in local newspapers and our in-house magazine. Advertising on social media. 10
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accompanied viewings We ll be there to accompany every viewing and take the time to learn the property s unique features and characteristics. Tenants are more likely to be open and honest with an agent - and honest feedback from a prospective tenant is essential in ensuring the property is achieving its full potential. If and when we receive any comments, we ll keep you in the loop. receiving and agreeing offers Once you ve chosen us as your acting agent and accepted an offer on your property, we ll then take a holding deposit from the tenant. We ll also carry out a comprehensive reference check for each tenant over the age of 17. Our close relationship with tenant referencing specialists Letsure and HomeLet ensures you have the highest calibre tenants moving into the property. 12
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deposit & tenancy agreement The full deposit and a month s rent in advance must be paid before a tenant moves in. You are required by law to register the deposit in a tenancy deposit protection scheme. As your acting agent, we are able to do this on your behalf. Protecting the deposit is vital. If you don t, the tenant may pursue legal action against you. If the county court rules that the deposit has not been protected, you may be ordered to pay into a TDP scheme bank account within 14 days, or face a fine of up to 3x the deposit amount. moving in To keep things organised, you ll need to prepare an inventory before the tenant moves in. This involves making a list of the property s contents and thoroughly assessing the condition of each item. Make a note of when all electrical and gas appliances/fittings were last inspected and log the presence of all fire safety labels and their location. We work closely with inventory specialists who can do this for you. To take advantage of this service, or to discuss anything else we ve included in this guide, get in touch with our team on 020 7078 0214. 15
Kingsley Hamilton Estates Tel: +44 (0)20 7078 0214 Fax: +44 (0)20 7719 0211 Web: www.kh-estates.com Email: info@kh-estates.com Head office One Canada Square, Canary Wharf, London E14 5AA Tel: +44 (0)20 7078 0214 Mayfair office Berkeley Square House, Berkeley Square, Mayfair, London W1J 6BD Tel: +44 (0)20 7887 6535 This guide is designed for information purposes only. Whilst every effort has been made to provide accurate and up to date information, it is recommended that you consult us before taking action based on the advice we have provided here. 0216KHE09