landlords’ guide · 2018. 7. 30. · presentation furnished or unfurnished gardens 3. permissions...

LANDLORDS’ GUIDE

LETTINGS & PROPERTY

MANAGEMENT

Brackley’s leading

Letting Agent

Hartley House, 29 Market Place, Brackley, NN13 7AB

01280 701001 [email protected]

LIST OF CONTENTS

1. Lettings Guide

2. Getting started

Presentation

Furnished or unfurnished

Gardens

3. Permissions

Utilities

Maintenance/Repairs

4. Buy to Let

Finding the right property

5. Service Level Options

Let & Rent Collection

Let only service

6. Marketing

Internet Marketing

7. Table of Services

8. Selecting the right tenant

Reference and Financial Checks

9. Setting up the Tenancy

Tenancy Agreement

Inventory

Wear and Tear

10. Property Maintenance

Accounting

Interim Visits

Extending or Terminating the Tenancy

11. Useful Numbers

12. Safety Regulations

13. Rental Income Taxation

UK Resident Landlords

Non UK Resident Landlords

14. Contact us

Meet the Team

www.macintyers.co.uk

Contents

1

Lettings Guide


Macintyers is a thriving independent

company giving local expertise and

knowledge to the residential lettings

market. The directors bring over fifty

years experience from which our cli-

ents benefit and we are committed to

training our staff to the highest stan-

dards.

Professionalism is demanded by today's landlords

and Macintyers are members of ARLA, the

Association of Residential Letting Agents, a

government recognised professional and regulatory

body solely concerned with residential lettings. ARLA

members are governed by Principles of Professional

Conduct, providing a framework of ethical and

professional standards at a level far higher than the

law demands. Therefore, landlords who use an ARLA

agent can be assured that they are receiving the best

and latest advise on all lettings matters.

Macintyers are also regulated by the Royal Institution

of Chartered Surveyors, a professional body which

places very high demands on the professional

conduct of its members in all areas of its business.

Letting your property will demand careful planning

and as a major investment should only be entrusted

to a professional agent who will look after your

interests and optimise your investment.

As a landlord you will have responsibilities and this

guide is designed to give you help and advice in this

area and explain the services we can offer you.

Whether you are an experienced investor or letting

your home for the first time we are in the best

position to let and manage your property.

Improvements in transport links and changing

lifestyles have made this a very popular area in which

to live, a fact reflected in the increasing number of

tenants seeking good quality accommodation of all

sizes.

We thank you for your enquiry and hope that this

guide will give you an insight into the professional

services offered by Macintyers.

Ben MacIntyre & Roger Tyers

Welcome to our Residential Lettings Guide.

2

Getting Started


GETTING STARTED

The first stage towards letting your property is

to meet with your chosen letting agent at the

property for a ‘Market Appraisal Appointment’.

We provide this service free and with no obliga-

tion.

Presentation

First impressions count! If your property is presented well,

it will not only achieve a higher rent but will also attract

better tenants. It is important to ensure that the property

is cleaned, that redecoration is carried out and carpets

professionally cleaned where necessary, windows cleaned

inside and out and the garden well tended. Macintyers

can advise you on the level and type of furnishings,

fittings, and appliances required and where redecoration

or other improvements are required.

Furnished or Unfurnished?

One of the first decisions to be made is whether to let

your property furnished or unfurnished. From experience

we find most prospective tenants are looking for

unfurnished accommodation so this is how we generally

advise you to let your property.

Unfurnished lettings generally include the following:-

Carpets or laminate flooring

Vinyl or tiled flooring in bathrooms & kitchen

Curtains or blinds

Light fittings

Built in kitchen appliances including a cooker but

not other free standing kitchen appliances. We

advise against leaving washing machines and

tumble driers as they are a liability for the landlord if they

break down and tenants normally have their own.

Smaller wall mounted items such as mirrors in the

bathroom and cloakroom, toilet roll holders and

towel rails. If these are not left, tenants tend to fix

and remove their own leaving unsightly drill holes in

the process. Door stops can also stop damage

behind doors and are strongly recommended.

If you choose to let your property furnished then:

All soft furnishings i.e. beds and upholstered chairs and

sofas must comply with the Furniture and Furnished (Fire)

(Safety) Regulations Act 1988. Any furniture

manufactured before 1988 will generally not comply.

All bed linen, towels and ornaments should ideally be

removed. Only basic kitchen equipment, cutlery and

tableware should be left. We do not recommend leaving

electrical appliances such as televisions or hi-fi equipment

as anything you leave will be your responsibility to repair

or replace if it breaks down.

Gardens

Garden maintenance is normally made the tenants’

responsibility and most tenants although rarely enthusias-

tic gardeners, are happy to maintain a small or medium

sized garden. However, if your property has a large garden

or requires specialist maintenance, we recommend that

you employ a gardener to look after it during the tenancy

with the cost of this being reflected in the rent.


3

Getting started

Permissions

Mortgage lenders—If the property is your usual residence

and the mortgage is not a ‘buy to let’ loan, you must

advise your lender and seek their permission before

making arrangements to let. If you do not do so, they

may be entitled to repossess the property and evict your

tenants. It is rare for lenders to refuse permission, but

you must ask them first.

Superior landlord/leaseholder - If the property is lease-

hold you should seek permission from the free-holders and

notify them of your plans to let .

Insurance - A landlord is responsible for arranging in-

surance on the buildings and any possessions left within

the property or outbuildings. The insurance should also

include personal liability insurance to cover you for exam-

ple, if a flat that you let has a washing machine which

floods and damages the flat downstairs. It is preferable

for this insurance to be a specialist letting policy, as stan-

dard policies may exclude certain situations such as dam-

age by tenants—even where the damage was uninten-

tional.

Utilities

You should notify all utilities and service providers that

you are letting the property and request closure of

accounts. Services should not be disconnected as this can

cause delays and problems when managing the property.

Tenants are usually responsible for Council Tax, Electricity,

Water Rates, Telephone and Gas or Oil Supply and we will

transfer these as part of our full Management services.

Royal Mail

You will also need to make arrangements with the Post Office

to forward your mail (we cannot forward mail without passing

on the Post Offices charges).

Maintenance/Repairs

Landlords should note that it is a legal condition of any tenancy

granted that the landlord should keep in good repair the

structure of the premises inside and out including decoration,

gutters and drains. Also all installations supplying water, gas,

electricity, oil, sanitation, hot water and space heating should

be kept in working order.


4

Buy to Let

Buy to Let

Historically, residential property has proved to be an

excellent investment with values on average doubling

every eight years over the last fifty years.

The abolition of rent controls, the landlord’s right to regain

possession, the availability of tailored ‘buy to let’ mortgages

at competitive rates, increased demand from a more mobile

workforce and changing lifestyles have all contributed to a

significant increase in the residential lettings market.

Property should always be viewed as a medium or long term

investment. There are short term rises and falls in property

values but over the long term, property has always

performed well as an investment. To ensure your property

investment is as good as it can be, it is important to buy the

right kind of property.

Finding the right property

Macintyers are able to provide all the expertise you need to

ensure that you choose the right type of property to suit

your budget and personal circumstances. We will advise you

on location, local demand and rental values to enable you to

achieve the most from your investment, as well as explaining

all the legal, financial and tax issues, wherever possible.

In general terms, the smaller the property, the greater the

rental return on your investment. One or two bedroom

houses and apartments and three bedroom houses are ideal.

Modern property is preferable from a maintenance point of

view but a carefully renovated older property is fine. Good

residential localities attract better tenants and demand is

stronger for town rather that country property. Small studio

apartments and bedsits are not ideal as there tends to be a

higher turnover of tenants and a greater problem finding

reliable, financially stable tenants.


5

Service Levels

Service Level Options

At Macintyers Property Management we offer three levels

of service to accommodate clients’ differing needs. Most

landlords opt for our Full Management Service, although

we also offer a Let and Rent Collection Service, and a Let

Only Service for very experienced landlords.

1 - Full Management Service:

Our full management service ensures that every aspect of

the letting process is dealt with on your behalf and includes

everything specified previously plus:-

We will organise for the transfer of utilities into the tenant’s

name and on a day to day basis we will be the point of

contact for the tenant should problems occur. We will also

effect minor repairs and pay charges relating to the property

provided we are in funds.

We will carry out regular visits to the property, usually every

three to five months, to ensure that proper care is being

exercised and check the condition. We will then report to you

on maintenance required and arrange for this to be

completed unless otherwise instructed.

We will also administer the renewal of the gas and electrical

safety checks where applicable and at the end of the tenancy

check the tenants out and advise on the apportionment of

the security deposit in accordance with the TDRSA.

2 - Let and Rent collection Service:

In addition to the let only service we collect the rent, usually

on a monthly basis, pay this into the landlord’s designated

account and provide a statement of account. If rent is not

paid we will make immediate contact with the tenant and

follow set procedures to collect arrears.

We will serve necessary notices and negotiate a new

agreement where appropriate, reflecting rent increases if

applicable. At the end of the tenancy you will be responsible

for checking the tenant out of the property and we will

disperse the security deposit when the landlord and tenant

have reached agreement on dilapidations or in accordance of

with the terms of the TDRSA.

3 - Let Only Service

We begin with a Comprehensive on-site meeting with you to

discuss your requirements, advise on current demand and

rental levels, advise on your property’s presentation and

relevant safety regulations and decide upon a marketing

Strategy.

Marketing commences with your property being listed and

advertised within our prominent office, on our website and

in the local property press. Details are circulated to corporate

and private tenants, viewings conducted and preparations

for letting the property completed.

Once a prospective tenant has been found and tenancy

terms have been negotiated on your behalf, references are

carried out which include credit checks. If these are

satisfactory then the tenancy agreement and the inventory

are prepared. Only once the tenant has signed up and paid

the first month’s rent and security deposit, usually equal to

one and a half month’s rent (which we hold under the terms

of the TDRSA), can keys be handed over.

At this stage we hand over legal documents to you as the

landlord and the tenancy, rent collection and management

of the property, including compliance with safety regulations

and the checkout become your responsibility.


6

Marketing

Effective Marketing

As soon as Macintyers receive your written instructions

to proceed, our lettings team will commence the process

of finding a suitable tenant and prospective tenants will

be contacted. A description and photograph of the prop-

erty will be distributed to prospective tenants and added

to our property list, our macintyers.co.uk website, and

other websites such as rightmove,co.uk and On the Mar-

ket.com .A selection of properties are displayed in the lo-

cal press every week and in our office windows. Macin-

tyers will continue this active line of promotion until a

suitable tenant has been secured.

Macintyers invest heavily in press and internet advertising

in order to generate constant enquiries from potential

tenants.

Our high profile, strong reputation and innovative

marketing generates considerably more enquiries than

most other local letting agents. All this works towards

getting your property let as quickly as possible.

Internet

The internet has become an essential tool in the marketing

of rental properties. Over 70% of people moving home use

the internet to search for property. Available 24 hours a

day, prospective tenants can view homes that are currently

available from wherever they are in the world. Because

property lists can be updated daily and contact can be

made online, the whole letting process is accelerated.

Our internet advertising generates daily enquiries from

individuals, military personnel, companies and relocation

agents.

All of our rental properties are featured on the following

websites, as well as on our website,

www.macintyers.co.uk:

Macintyers 01280 701001

7

Table of Services

Full Management

14.5% inc. vat

+£300 initial set up fee (inc vat)

Let & Rent

Collection

12% inc vat +£300 initial set up fee (inc vat)

Let Only

100% of the first months rent inc. vat

Initial visit including Legal & safety advice & marketing strategy

Marketing Including web sites, newspapers and mailings

Direct advertising to corporate tenants and relocation agents

Interviewing tenants and matching to your property

Accompanying all viewings of your property

Referencing of tenants including credit search and employer

Covering tenancy with Guarantor if necessary

Preparing tenancy agreement & inventory

Obtaining and holding a substantial deposit subject to TDSRA rules

Receiving rent and paying it to you by electronic transfer First month

only

Chasing tenant for overdue rent and serving the appropriate legal notices

Monthly statements sent by mail or e-mail

Checking the tenant into the property and agreeing the inventory Chargeable

Transfer utility accounts

Regular property visits throughout the tenancy & report to you by mail or

e-mail

Arranging for routine repairs and maintenance to be carried out Chargeable

Arranging access for you or contractors with tenants Chargeable

Managing tenants’ queries and difficulties throughout the tenancy Chargeable

Responding to all mail regarding the property and tenancy Chargeable

Paying bills relating to the property from the rental income Chargeable

Yearly rent appraisals

Serving the appropriate notices for annual rent reviews

Arranging safety checks in line with your statutory obligations Chargeable

Serving the appropriate notices for repossession due to arrears

Serving the appropriate notices for repossession for any other reason Chargeable

Negotiating an agreement for the deposit return with you and your tenant

Preparing the case for TDSRA if a deposit dispute goes to adjudication Chargeable Chargeable

Remarketing the property during the notice period Chargeable Chargeable Chargeable

Returning the tenants deposit as agreed by tenant and yourself

Selecting the right

Tenant

A significant proportion of applicants are

unsuitable as tenants either because of their

financial situation, their age, or their inability

to look after a property carefully. The success

or failure of a letting agent rests on their

ability to make the correct judgement of an

applicant.

There is always an element of risk with letting,

but an experienced agent will know when to

refuse an applicant. The most appropriate

type of tenant will also depend on the type of

property and your own specific circumstances

and requirements. Macintyers will discuss

your particular needs in detail and strive to

find the most suitable tenant.

Different landlords make different stipulations regarding

what they will and will not allow. Typical exclusions

include the following, but remember, the stricter you are,

the more difficult it becomes to find a tenant:-

✔No pets

✔ No smokers

✔No children

Reference and Financial Checks

When a tenant has been found we employ stringent

referencing procedures which gives us an understanding of

their personal and financial circumstances. When it comes

to tenant selection we cannot guarantee to always get it

right, but out of the many lettings with which we deal, we

get very few problem cases.

8

Selection


9

Setting up the Tenancy

Setting up the Tenancy

Tenancy Agreement

Once we are satisfied with the choice of tenant, we will

proceed with preparing the tenancy agreement.

Macintyers use a comprehensive tenancy agreement which

has been carefully designed to protect your rights to

possession, to control the tenant’s activities, ensure that

you have redress if your property is not looked after

carefully and comply with standard building society

requirements. Tenancy agreements are normally for an

initial term of six months and thereafter six/twelve months

with your permission.

The Housing Act 1988 (as amended by the Housing Act

1996) specifies the types of tenancy and whilst there are

several types, it is likely that the tenancy of your property

will be an ‘Assured Shorthold Tenancy’

Inventory

We prepare a schedule of condition/inventory for each

tenancy. At the end of a tenancy the property is inspected

and any damage or deterioration of the condition of the

property is noted. The tenant is responsible for the cost

of rectifying any damage caused by them at the property

and this cost is deducted from the tenant’s deposit.

Wear and Tear

Please bear in mind that people will be living in the

property and reasonable wear and tear must be taken into

account. Depending on the length of time your property is

let, you must be prepared for some redecoration and other

work at the end of the tenancy.


10

Property Maintenance


Property Maintenance

We have staff on hand to deal with any maintenance

issues, oversee any essential repairs and arrange payment

of the contractor. Our prime concern is to ensure that the

property is maintained on your behalf, in the same

condition as that in which it was first let, allowing for fair

wear and tear. When appropriate we will advise you of

any improvements that may be needed in order to attract

quality tenants. Unless you have preferred contractors,

Macintyers will use one of a group of contractors who

have proved their reliability and good workmanship.

Accounting

Macintyers accounts team will ensure that rent is paid on

the due dates and passed on to you as quickly as possible.

They prepare statements of rental income and expenditure

every month to ensure that you have full information for

yourself and for your tax return.

The tenant pays rent into the Macintyers client account

initially and this is then transferred into your account each

month.

Our accounting complies fully with both the RICS and

ARLA bylaws and our bonded client accounts are

independently audited annually.

Interim Property Visits

We carry out routine visits of the property about every

three to five months. We do not carry out a survey of the

property but do check that care is being taken and check

the condition of the property. We then write to you on

maintenance required and arrange for this to be

completed unless otherwise instructed.

Extending or Terminating the Tenancy

Although our tenancy agreements are usually for an initial

term of six months or one year, many tenants extend their

tenancy and in some cases stay for several years. Towards

the end of the term of the tenancy we will contact you and

confirm your instructions and then either serve notice on

the tenant (minimum two months) or negotiate a new

tenancy for a further fixed period. Occasionally no notice is

served and the tenancy becomes “periodic” on a month to

month basis. In this case the landlord can end the tenancy

by giving a minimum of two months’ notice which must

expire on the same day of the month that the tenancy

commenced. The tenant can give one month’s notice.

11

Useful Numbers

Company Registration Number: 04824677

Oven & General cleaning Sparkles—Pete Brookes 07970 097744

Gardening Design Grow—Jane Jarvis 07976 155611

Builders and Repairs Simat—Simon Hemmings 07780 610700

G.S Building Solutions 01280 704566

Andy Price 07979 353465

General Maintenance RSJ—Roy Jenkins 07917 711198

Mobile Caretaking Services 07716 404914

Painting & Decorating Martin Hirons 07814 458506

Nigel Lumsdale 07785 375335

Windows & Doors Brackley Glass 01280 703277

Carpets Home Move Carpets 07831 500221

Electrical M Mumford Electrical 07920523662

Steve Valentine 07917 571197

Plumbing Lovell Plumbing 01295 711333

Champion Gas 07974 088785

Maxheat 07850 867939

Appliance Repairs Chris Brady 07778 330108

Locksmith ALS 01295 568068

Chimney Sweep John Underwood 07973 502269

Tree Services James Handford 07971 569697

Pest Management Pestwatch 07947 029280

Useful Numbers

12

Safety Regulations


Safety & Regulations

The following information is intended only as a guide for

landlords and should in no way constitute a detailed

interpretation of the complete regulations. Whilst the

regulations might appear onerous, they are designed to

ensure the safety of the property and tenants. Landlords

should note that the maximum penalty for non compli-

ance with these regulations is a fine of £5000 or 6 months

imprisonment.

Gas Safety (Installation and Use) Regulations 199 These

cover all gas appliances, flues, meters and associated pipe

work and require landlords to get an inspection carried

out by a Gas Safety Registered Engineer (formerly CORGI

registered) to check any gas installations. Once the engi-

neer is satisfied that the installations are safe, he will sup-

ply a Gas Safety Certificate, a copy of which must be held

by the managing agent and also given to the tenant be-

fore they move in. This certificate must be renewed once a

year. It is worth arranging the inspection before a tenant is

found, to avoid delaying the start of the tenancy. Breach

of this regulation can result in heavy fines or even impris-

onment so tenants are not allowed to occupy a property

without a current certificate.

Landlords are also responsible for ensuring that either the

operating instructions are shown on the appliance or that

an instruction booklet is supplied.

Oil Boilers and Chimneys

We require chimneys to be swept and oil boilers to be ser-

viced annually.

Furniture and Furnishings (Fire) (Safety) Regulations 1988

(Amended 1989 and 1993) This act covers all upholstery

and upholstered furniture supplied by the landlord in a

rented property, including; beds, footstools, pillows,

headboards, mattresses, sofa beds, futons etc. Furniture

manufactured since 1950 cannot be supplied to a tenant

unless it has been professionally re-upholstered with con-

forming materials. Compliant furniture will always carry a

label indicating that it complies.

The Electrical Equipment (Safety) Regulations 1994 As a

landlord you must be able to demonstrate that the fixed

wiring electrical installation and any electrical appliances

are safe. There is also an obligation in accordance of Sec-

tion 11 of the Landlord and Tenants Act 1985 to make the

property safe. Supplying unsafe electrics in a rented prop-

erty that result in injury or death could result in a landlord

being prosecuted. To ensure that the electrical installation

is safe our professional body, The Association of Residen-

tial Letting Agents (ARLA) recommend that before the

property is let, a competent qualified electrician who is a

member of one of the approved professional bodies,

carries out an “electrical installation inspection re-

port“ (EICR.)

Necessary updating highlighted by the “EICR” will need to

be completed by a qualified electrician prior to tenants

moving in and copies of certification provided to our

office.

Periodic inspections of the fixed wiring installation will

need to be repeated every five years. However, you will

generally find that once an installation has been brought

up to standard most will only require more minor

improvements after five years to stay up to standard.

An Energy Performance Certificate will be required before

marketing can commence.

Portable appliances (usually defined as those that are

plugged in) should be tested before each tenancy. Some

landlords choose not to leave any portable appliances in

their let properties, however not having appliances in the

kitchen can make a property less attractive to tenants and

increase void periods. As a landlord you are also responsi-

ble for ensuring that operating instructions are shown on

appliances or that instruction booklets are left at the

property.

Smoke & Carbon Monoxide Detectors

All new homes (built after June 1992) must be fitted with

mains operated smoke detectors. There are no specific

regulations governing older buildings, however,

Macintyers insist that at least one smoke alarm is fitted to

each floor of your property. We also recommend that a

carbon monoxide detector is supplied.

13

Rental Income Taxation


UK Resident

Landlords

If you are a landlord resident in the UK, your net

income from your investment property is subject to

income tax. The level of tax depends on your other

income. If you are

already a higher rate tax payer, tax will be payable at

the higher rate. The normal method of reporting your

taxable income to the Inland Revenue is by a self assess-

ment tax return. We strongly recommend that you

instruct an accountant to advise you on the implications

and allowable expenses before you start letting your

home or buy a property to let.

The following deductions can usually be made from

your rental income to arrive at the net income which

is subject to tax:-

Interest on mortgage (subject to conditions)

Property repairs

Letting and management fees

Building insurance

Ground rent

Service charge

Non UK Resident

landlords

The non-resident landlords (NRL) scheme is for taxing the

rental income of persons whose ‘usual place of abode’ is

outside the UK. If you are treated as a non resident land-

lord you still have to pay UK income tax on rental income

from UK property.

Unless the landlord can provide Macintyers with an

exemption certificate from the Inland Revenue, we are

obligated by law to deduct basic rate tax from rents

received and account to the Inland Revenue on a quarterly

basis. Exemption certificates are required by any person

named on the tenancy agreement who lives overseas.

Landlords are responsible for obtaining their own exemp-

tion certificate and the appropriate forms should be

submitted as early as possible as they take several weeks

to process. The majority of landlords apply for and are

granted an exemption certificate.

Details on taxation are correct at the time of printing.

Further information for non resident landlords and owners

tax advisor exemption application forms are available from

Macintyers or the Inland Revenue at:-

Centre for Non Residents Landlords,

Fitz Roy House,

P O Box 46,

Nottingham.

NG2 1BD

www.gov.uk/government/organisations/hm-revenue-customs

Our reference is NA012206 1502

14

Contact Us


Macintyers Residential

Lettings

Hartley House

29 Market Place

Brackley

NN13 7AB

[email protected]

Tel: 01280 701001

Ben MacIntyre

Director

Roger Tyers

Director

Yvonne Jones

Lettings Manager

Gill Hirons

Lettings Manager

Lyn Norris

Lettings Administrator

Sarah Tallon

Letting Agent

Julie Lovell

Lettings Agent

The Team

landlords’ guide · 2018. 7. 30. · presentation furnished or unfurnished gardens 3. permissions...

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