Landlords
Welcome to Fair Agent Property Management. We are a professional independent firm, specialising in Property Management and Lettings. We find that there are many questions that landlord's have, so we have put the most frequently asked questions in a Question and Answer format for you to understand. If you require any more information or wish to clarify any points raised then do not hesitate to contact us and discuss this further.
The first step is to decide how much rent you are going to ask for and how long you are going to offer the property for letting. Ensure the property is in a good state of repair and presentable condition. The property will rent much more quickly if our Agents have confidence in accompanying potential tenants to the viewing. Part of our service includes inspection of the property including advice on requirements to make it of rentable standard as well as the Rental Income you should achieve.
The Application Process
All potential tenants must complete a comprehensive Referencing Service Application for Tenancy. There are two types of tenant - Cash Payers and Non-Cash Payers. Cash Payers are usually in full-time employment and are responsible for paying the full rental amount. Non-Cash Payers are normally in receipt of Housing Benefit which is money paid by the state to help with their rent. Housing Benefit Tenants may receive assistance towards all or part of their rent with the money usually paid directly to either the Landlord or Letting Agent. The tenant is responsible for the difference or Shortfall. Non-Cash Payers require a Guarantor who must sign a form agreeing to the pay any sums due as a result of any default on rent payments by the tenant on the property. The Referencing of the Guarantor usually takes 4 – 5 working days. Our staff ensure all applications are completed in full with the Declaration portion signed by the tenant and where applicable, Guarantor. Our office contacts the tenant informing them of the outcome of the Application process – if they have been successful the next step is for them to decide when they want to move in. You should be aware that any furniture and electrical appliances supplied by you should comply with certain statutory requirements.
Tenancy Agreements
The law relating to tenancy agreements recently changed. There is now a law stating what details your tenancy agreement should contain and we have now updated our tenancy agreements to comply. The tenant arranges an appointment to visit our office and sign the Tenancy Agreement. Unless agreed otherwise by the Landlord our tenancies are for a minimum of six months. The Tenancy Agreement is clear about what will happen if the tenant is in breach of their tenancy. It states the amount of bond or deposit payable, and how it will be retained or returned at the end of the tenancy. Tenants pay one months rent + £50 Deposit and four weeks full Advance Rent. We also have an insurance backed scheme whereby the tenant buys an insurance policy that will cover the landlord for any damage caused, contact us for more information.
Repairs
If we are also managing the property on your behalf, the tenant will contact us during office hours with any repair requests. Outside of our normal opening hours we also have an Emergency Repairs Hotline. As a rule our office will contact the Landlord before completing any non-emergency repairs, but we must act immediately on urgent repairs, particularly where the health and safety of the tenants may be at risk and on these occasions we will do so without prior permission from the Landlord. Any maintenance costs will be deducted from the rental income.
General Questions
Is there demand for rented property?
What if my property is leasehold?
If your property is leasehold, you will have a landlord yourself and may require his permission to let your property out. You will have to refer to your lease and obtain all the necessary consents required under your lease before you let your property.
Do I need to inform the mortgage lender before I let the property out?
Yes. You must as prospective landlord, inform your mortgage lender in writing that you wish to let your property out. If you fail to inform them, you may be in breach of your mortgage conditions.
What is the income tax position on rents I receive?
It will depend on whether you are a resident in the U.K. for income tax purposes or a non-resident living abroad. The U.K residents' rents should be included in the normal way on your tax return. We strongly recommend that you discuss your tax position with your own tax adviser. If you are a non-resident living abroad then we are happy to discuss this aspect in further detail in our office. We can provide you with up to date tax documents if needed this also includes tax guidelines.
Can I buy a property to Let as an investment?
Yes. The potential for growth in the capital value of a property plus the benefit of regular income over a period of time makes investing in property an attractive proposition. Please ask the office to advise you on properties, which may be suitable.
Letting
How long does it take to find a tenant?
This will obviously depend on local market conditions, and the condition of the property itself, but in our experience it can vary from as little as a few days to a few weeks.
Is it necessary to advertise my property?
Generally, yes.
How do you go about selecting a prospective tenant?
We will make reasonable enquiries to establish the suitability of a prospective tenant. These enquiries will usually include taking up a selection of references and obtaining a credit check. We will discuss the results directly with you or we may use our own professional judgement on your behalf.
How long does the tenancy have to be?
Assured Shorthold Tenancies have to be a minimum of six months,' Assured Tenancies' can be shorter. However, in our experience it is not worth letting a property for less than six months.
Do you prepare the Tenancy agreement?
Yes. We have our own tenancy agreement.
Who signs the tenancy agreement?
Both the landlord and the Tenant sign the agreement.
Do you take a deposit from the tenant?
Yes. This is usually one months rent plus £50.00. We only return the deposit to the tenant when he has given vacant possession of the property and has left it in a satisfactory condition, allowing for fair wear and tear, and has complied with his responsibilities under the tenancy agreement.
How is the rent paid to me?
We will collect and pay the rent to you at regular intervals either directly to yourself or into your bank or building society account. The rent is usually paid monthly in advance.
What if the tenant does not pay the rent?
We will use our best efforts to ensure that the rent is paid. Careful selection of the tenant means that there is unlikely to be a problem, but if the tenant does not pay their rent and we are providing a management service we will tell you how to apply for a court order for possession, if this is necessary.
Can I take out insurance in case I incur problems with my tenants?
Yes. We can advise you on this and arrange for you to cover loss of rent, dilapidations and legal expenses.
What happens about payment of services?
We will advise you on how to ensure that the tenant takes over responsibility for payment of Council Tax and utilities at the property, e.g. gas, during the tenancy. You will be liable for payment of these accounts whilst the property is not let.
Do you inspect the property?
Where we manage the property we will inspect the property at intervals of 3-4months. If you require us to carry out additional inspections, we will be pleased to carry these out for an extra charge.
Who is liable to carry out most of the repairs?
Generally you will be liable to carry out most of the repairs to the property. Where we manage the property we can arrange repair works for you. If you wish, you can tell us only to use certain people to carry out any necessary works.
What precautions are taken when the property is empty?
Empty properties are always at risk. We will not manage your property, when it is not let, unless we agree this with you. During the winter months, if your property is vacant we can arrange, at your expense, for the property to be drained of all water, or for the heating to be run on a low setting.
What happens about the buildings and contents insurance?
This remains your responsibility. You must tell your insurers in writing that you are letting your property. If required we can offer you alternative estimates for you buildings and contents insurance, please ask our office for details.
Should I have an Inventory of the Contents?
Generally, yes. An Inventory, (or schedule of condition as it is sometimes known) is a carefully prepared document detailing the state of decor and condition of a property, room by room. It is normally prepared after you have vacated your property and before the tenancy agreement is started. In a furnished property the Inventory will usually include an itemised list of contents, detailing and describing their appearance and general condition. We will have the tenant sign the condition report before they sign the lease. At the end of each tenancy the Condition Report can then be checked against the property and its contents.
What furniture etc. do I need to leave in the property?
This depends on you. We can give you guidance on this matter. Unfurnished, Part furnished, Furnished, Fully- Furnished properties to Rent are the most common expressions. They vary from just carpets and light fittings to every last fork and kitchen utensil. We do not generally recommend that you leave anything of a particularly personal nature in the property.
What happens about the garden?
Under the terms of our Tenancy Agreement the tenant is responsible for the maintenance of gardens. You should leave appropriate tools at the property, especially a lawn mower. The tools will be listed in the Inventory. If the tenant fails to maintain the garden to a reasonable standard we can arrange for it to be charged to the tenant.
What happens about any post that comes while I am away?
It is your responsibility to ensure that your post is re-directed by the Post Office.
Are pets allowed?
Generally not. Any requests from tenants must be agreed with you the landlord in writing first.
How can I get my property back?
We usually recommend that you let your property on a fixed term tenancy. Normally you get possession of your property back at the end of the tenancy. If we are providing a Lettings and Management Service we will ensure that the correct notices are served at the right time so you are able to regain possession. On the rare occasion where a tenant does not move out at the end of a tenancy, it may become necessary for you to take court action to recover the property.
What choice of lettings service do you offer?
We can provide:
- Letting Only
- Letting and Full Management
We can explain these services in more detail if you contact us.
Regulations
What are the Health and Safety Regulations?
The Gas Safety (Installations and Use) Regulations 1998
In order to meet the legal requirements an annual Landlord's Gas Safety Check must be carried out by a Corgi registered gas fitter. We will appoint a contractor to carry out this unless you nominate your own.
The Electrical Equipment (Safety) Regulations 1994
All electrical appliances supplied with let accommodation must be safe. We would recommend that all electrical items within the property should be tested by a qualified electrician (NICEIC approved) at least once every five years.
Furniture and Furnishings (Fire Safety) Regulations 1998 (as amended)
If a property is furnished, compliance with the regulations concerning fire retardant materials is paramount. All furniture must have the requisite labelling showing that it complies with the regulations.
The Plugs and Sockets (Safety) Regulations 1994
The Regulations apply to all plugs which are intended for domestic use. Details of this act are available in our Landlord's pack ask for details.
Please take a look at our fees page for pricing. If you have any questions or need any advice please feel free to contact us