Landlords

THE TENANCY

This will, in most cases, be an Assured Shorthold Tenancy drawn up under the Housing Act 1988 (as amended 1996). Provided the tenant(s) keep to the terms of the tenancy they will be entitled to remain in the property for at least the initial period, usually six months. After this time you will be asked whether you wish to renew the tenancy, and will be able to do so, either for a further fixed term, or allow the tenancy to continue on a Periodic basis. This means that you may give the tenant(s) two months notice to vacate at any time but they may give you one month’s notice to leave.

If your property is let to a company it will not be regulated under the Housing Act 1988.

The management service includes the preparation of a letting agreement in a standard form and the provision of a copy of this agreement to your lender if required. Unless instructed otherwise, all lettings will be an Assured Shorthold Tenancy. Landlords may instruct their own solicitors to prepare the agreement but will be liable for their costs in addition to those of the Agent.

LANDLORDS’ RESPONSIBILITIES

The Landlord is responsible for ensuring that the building and his contents therein are adequately insured. The insurer must be notified that the property is to be let, prior to the commencement of the Tenancy and some companies may increase their premiums for the additional cover.

Details of specialist Landlord Buildings and Contents cover, including malicious damage by tenants and accidental damage to bathroom fixtures & fittings is enclosed.

The Landlord will continue to be liable to pay ground rent, service charges and mortgage payments relating to the property, together with the hire purchase or similar contractual arrangements relating to goods or services provided there. Any items left at the property which become faulty through general wear and tear will be required to be repaired or replaced at the Landlord’s expense. It is therefore recommended, to prevent additional costs, that as little as possible is left in the property. Unfurnished properties should contain carpets, curtains and at least a cooker in the kitchen. Tenants will also expect plumbing for a washing machine and it is also advisable to leave basic gardening tools.

Please ensure that any items left are in good, clean condition, have been serviced where applicable and have instruction booklets. Carpets and curtains that have been cleaned prior to the commencement of the Tenancy will be cleaned on the Tenant’s departure. This will prevent any dispute with the Tenant regarding their initial condition and any deductions from their deposit.

CONSENT

Before letting your property you should obtain the consent of your mortgage lender and in the case of a flat, the freeholder or management company. A charge is sometimes made for this.

They may require details of the proposed tenancy and ARUNDELL JAMES will be happy to deal with this on your behalf. We will also need confirmation of the above and details relating to any covenants or restrictions affecting the use of the property.

VIEWINGS

Viewings will be arranged with you if you are in residence and will normally be accompanied. Please understand that it is often necessary for tenants to view at weekends or during the early evening.

If the property is empty you will need to provide keys for access. Tenants will never be allowed to view unaccompanied in these circumstances.

REFERENCES

References are vital to assist in determining the suitability of a potential tenant, especially from their existing landlord. Three references will normally be taken for each tenant from a number of sources, including their employer, bank or building society or personal character reference. These may be requested by a credit reference agency that will also carry out a ‘Credit Check’ on the tenant (in place of a financial reference) which will provide details of any bankruptcy or county court judgements.

The experience of the Agent will also play a part in assessing the tenant’s suitability for the property.

In the case of students with only grant income or if there is any doubt about the tenant’s ability to afford the rent a guarantor will be used. For ‘sharers’ references will be taken for each individual tenant.

TENANTS

You will be asked whether you are happy to accept certain types of tenants. These will include: Smokers, sharers, tenants with children or pets and tenants in receipt of housing benefit payments. Please remember that the property is yours and the final choice of tenants will be yours, but bear in mind that the more restrictions you place the longer it may take to find suitable applicants.

Housing Benefit payments can be paid direct to the Agent with the added security that the cheques don’t bounce! However, if the tenant becomes no longer eligible to claim benefit the council will require an undertaking that any overpayment is repaid by the Landlord

INVENTORY

A detailed inventory and schedule of condition will be prepared for the property (including unfurnished premises). This will list all the items in the property, garage, shed and garden, together with a description of the decor and its condition, keys released to the tenant(s) and utility meter readings at the commencement of the tenancy. Items of negligible value ie. open tins of paint, cleaning materials and perishables will not be listed.

Landlords should not leave items of any great value in the property.

A proportion of the cost of preparing the inventory is included in the initial setting up charge. The balance is borne by the tenant.

SAFETY REGULATIONS

The letting of property is now closely regulated with regard to consumer safety and makes particular demands regarding the safety, servicing and inspection of the gas and electrical appliances within the property and with respect to the type of furniture and soft furnishings provided.

The following regulations apply:

Furniture and Furnishings (Fire) (Safety) Regulations 1988
Gas Safety (Installation and Use) Regulations 1994
Electrical Equipment (Safety) Regulations 1994

The landlord must ensure that the property is made available for letting in a safe condition and in accordance with the above regulations. The legislation is often updated. Please ask for current details.

SERVICES AND COUNCIL TAX

Rental figures quoted will be inclusive of all out-goings for which the Landlord is responsible but exclusive of: Gas, Electricity, Water and Sewerage, Telephone Charges, Heating Oil and Council Tax. Meter readings will be taken at each change of occupation and the service companies informed of these and given details of the new tenants. BT however, will not accept instructions from an Agent and you will need to contact them yourselves to discontinue their service by dialling 150. Likewise, the tenant will be required to apply to take over the line. Payment of Council Tax is the responsibility of the tenant. However, where the property is empty, let as holiday accommodation or let as a house in multiple occupation the responsibility for payment reverts to the owner.

DEPOSITS

Prior to the commencement of the tenancy ARUNDELL JAMES will take a deposit from the tenant(s) of one and a half month’s rent. This will be held as a dilapidation deposit to protect the Landlord against loss of rent or damage to the property during the tenancy. This deposit is held under the protection of The Dispute Service in a separate client account ready for refunding (less any deductions) at the end of the tenancy. No interest will be paid on the said deposit or any rents held by the Agent. Any dispute will be referred to The Dispute Service and their decision held final.

TERMINATION

The minimum notice period from the Landlord for assured tenancies is two months and this must be given even in the case of a fixed term contract. It is therefore important that any requirements for possession are provided to the Agent at the earliest opportunity. Notice must be given from a rent due date.

Following the departure of the tenants a final inspection will be carried out in conjunction with the inventory. Testing of the electrical appliances, heating system and plumbing is not feasible during this inspection; the Landlord should appoint a qualified contractor if this is required.

Any deficiencies or dilapidations will be reported to the Landlord together with recommended deductions or replacement values and his instructions requested. The deposit will not be returned to the tenant without permission from the landlord to do so. It will also be necessary for all outstanding utility and council tax bills to be paid by the tenant and these will be deducted from the deposit if confirmation of the above is not provided.

Attached is a guidance list given to all tenants prior to their departure regarding the standard of cleanliness expected at the property when they leave. Please bear in mind that we can only enforce this if the property is handed over to them by the landlord in this condition in the first place. We therefore suggest that, in order to ensure consistent standards, the landlord have the property and the carpets professionally cleaned prior to the initial letting and we can arrange this if required.

LANDLORD INSURANCES

It is normally possible to insure against ‘Loss of Rent’ in the event of non-payment by the tenant and a brochure outlining this product and cover for ‘Legal Expenses’ if it became necessary to evict a tenant is enclosed.

Legal Expenses cover will cover the legal costs of evicting the tenant up to £50,000.

The Rent Guarantee policy, which also includes the Legal Expenses cover, will cover rent arrears for up to six months (excluding the first month) or until vacant possession is obtained (whichever is the sooner). It will also pay 50% of the rental for up to a further three months after possession to enable a new tenant to be found. This can be vital if the property requires redecorating or access for viewings has been difficult.

This cover is provided free of charge for tenants successfully referenced by Homelet and can normally be renewed at the end of the initial tenancy at a cost to the Landlord.

This protection is not compulsory, but as with all insurances, it will provide additional security and peace of mind whilst the property is let and is strongly recommended

If you wish to take advantage of these products it will be necessary to let the Agent know prior to commencement of the tenancy to enable the correct checks to be carried out on the tenants.