Landlords frequently asked questions
If you are someone contemplating letting your property, there are many question that spring to mind. We want to you to have the basic information in a format that is neither complicated nor patronising. We are sure that the answers will give you confidence in us as agents. If you have any further questions or would like us to contact you please use our E-mail facility, telephone or call in to our office. We look forward to hearing from you.
What are the advantages and disadvantages of letting?
These will vary according to the individual’s circumstances – but some points to consider are:
Advantages
- Income towards property costs and mortgage
- Income as investment (rental income & potential capital growth)
- Property kept warm & aired while you are away
- The tenants pay Council tax, gas, electricity and telephone bills whilst property is let
- An empty property can increase insurance costs
- You keep a foothold in the local market
Disadvantages
- Wear & tear
- Small risk of damage
- You will need to redecorate and renew some items between tenancies if you are letting long term
- Possible increase in insurance costs
- You have to think ahead if you wish to move back into the property
Why do I need an agent and why should I use you?
There is nothing to stop you as a Landlord acting without an agent. However, there are many legal requirements that a Landlord has to fulfil. Failure to comply may result in criminal prosecution.
We at Portfolio Properties understand these requirements and we have systems in place to ensure they are complied with and we can tailor our services to suit your needs, should they change our service can change to match. We realise that while it is important to take up references this is not enough on its own, we have the facilities and experience to properly vet potential Tenants by meeting with them, discussing their situation, thoroughly assessing them and taking up references through a professional referencing company. When we have potential tenants for your property we will contact you with full details, allowing you to make the right choice and to minimise any risk.
Our Tenancy Agreements are updated when any changes are made to legislation.
What's involved?
How much rent will I get for my property?
This is not as simple a question as you might think. Factors of supply and demand, amenities, location, accommodation and condition, must be taken into account when considering the rental value of property. We are always happy to visit your property, meet with you and provide a free no commitment market appraisal based on our extensive knowledge of the local market. Bear in mind if the rent you want to achieve is above the market rent for the area it will take much longer to let and you may have to reduce it to achieve a let. We will give you honest and unbiased advice, we want to let your property and we will do our utmost to achieve the highest rental possible in the market place.
How will the rent be paid?
Typically a standing order is set up from the Tenant’s bank account and (unless you choose our Letting Only Service) the rent will be paid in advance into one of our designated bank accounts. Once the monies have ‘cleared’ through the banking system, the rent is paid either by cheque or directly in to the account of your choice. A statement of account is part of our service.
What sort of agreement is used?
Different types of agreement are used depending on the circumstances of the Tenants, the Landlord and indeed the property. In the majority of cases it will be what is called an Assured Shorthold Tenancy. The term will be fixed and will depend upon the length of tenancy that you the landlord and the potential tenants agree upon. Generally the minimum term will be 6 months and the maximum 12 months although these can be extended. We will ensure that the right Tenancy Agreement is used (for the circumstances) and will be happy to explain the different types of agreement to you. Whilst allowing the tenants to have property they regard as a home, our Tenancy Agreements place obligations on them to ensure that you as a Landlord can be confident your property will be returned in good condition (allowing, of course, for fair wear and tear). Once the Tenancy Agreements are drawn up, and any special requirements included, the document will be posted or faxed to you for your signature.
Do you hold the damage deposit?
Yes, we hold the damage deposit in accordance with the Tenancy Deposit Scheme The minimum deposit we require from our Tenants is equivalent to one month’s rent plus £300, whatever service is required. When a landlord or letting agent takes a deposit from a tenant, the deposit must be protected in a government-authorised tenancy deposit scheme. Where we retain the deposit it is held by Portfolio Properties (Oxford) Ltd as stakeholders and is held in our Client Account.
What is an inventory and do I need one?
Inventories and Schedules of Condition must be prepared with close attention to detail and are used as the yardstick by which the state of the property and its contents are judged at the end of the tenancy, before the deposit is returned. Many people think it is not necessary to have an Inventory if the property is unfurnished. However, this is not so as the fabric of the building as well as the fittings, fixtures and any white goods need to be detailed. Also the inventory should reflect in an unbiased way the condition of the property. We also supply a full complement of photographs.
What do I do if the property is damaged?
During the check out of the property (if our Full Management option is chosen), the contents and condition are carefully monitored against the signed Inventory and Schedule of Condition. We will report any damages and recommendations with regard to the amount to be deducted from the Tenants deposit to you after the checkout. If there is any disagreement on the dilapidations to the property on your part we will approach the Ex Tenant for their agreement. When both parties have reached agreement in writing the money will be paid to the relevant parties. On the rare occasion that agreement cannot be reached the matter may be settled by arbitration or via the Tenancy Deposit Scheme.
What happens when my property is empty?
Firstly you must advise your insurance company in accordance with their requirements regarding empty property. Please check your insurance policy for the relevant details. You will also need to keep in mind that when the property is empty responsibility for it and any associated bills are yours, the Landlord, as agents we have no mandate to manage the property when it is empty. We have an Emptycare service, which will usually satisfy insurers, and for an advance fee, we will visit the property weekly, forward your post and check for any obvious problems. EMPTY CARE will give you peace of mind when the property is unoccupied if you do not live locally and cannot visit the property yourself.
How will renting affect me?
What are my outgoings?
These will usually include
- Mortgage
- Insurance – Buildings & Contents (as a minimum) are essential, plus Legal Expenses and Rent Guarantee as desired
- Repairs to the structure of the property, maintenance of services, (water, electricity, gas and sewage) space and water heating and contents – unless damage is caused by the Tenant
- If leasehold – ground rent and services charges
- Managing agents fees
- When the property is empty, utilities and services
Will renting effect my mortgage?
You must obtain written permission from your lender before letting commences – failure to do so may result in a breach of your agreement with them and may invalidate any insurances you have.
Do I need to tell my insurance company?
Most certainly, yes – otherwise you may find your insurance is invalid. Your insurer may wish to increase the premiums or be unable to accommodate your wishes.
What do I do if my property is leasehold?
The managing agents or freeholders must be advised as a change in the type of occupancy may affect the buildings insurance. We will require a copy of the head lease to provide to the Tenant to ensure their compliance.
Who looks after the garden?
The maintenance of the garden is usually the responsibility of the Tenant with the exception of maintaining Trees and shrubs, these need specialist treatment and should not be pruned by the Tenants. Also, should you have a particularly large garden it may be advisable to arrange for a gardener – the cost of which should be incorporated in the rental value. It is advisable to provide materials and tools for maintaining the garden even if the property is unfurnished.
Do I have to provide furniture and furnishings?
Not necessarily, in most cases there is very little difference in rental values between furnished and unfurnished lettings. We will advise you on the amount of furniture you will need to supply, but bear in mind that the property will let faster and for a higher rent if it is well decorated, looks good, is uncluttered and the fixtures and fittings are of high quality.
If you specifically want to let the property as furnished then you must ensure that your furniture complies with the Furniture and Furnishings (Fire Safety) Regulations 1988 (as amended). We will be happy to advise you on this point. If any items do not comply then they must be removed from the premises entirely, (they cannot be stored in the garage). Giving or selling these items to the Tenants is not acceptable.
What is a Landlords Gas Safety Record?
It is a legal requirement under the Gas Safety (Installation and Use) Regulations 1994 (as amended) to have the gas supply and all gas appliances (whether portable or fixed) checked by a Gas Safe registered operative to ensure their safety. This must be done at your expense prior to letting a property for the first time and thereafter on an annual basis. A copy of the inspection record must be given to the tenant within two weeks and a copy must reside with the Agent. We would also recommend that a service contract be taken out on any central heating system. This will ensure that the appliances are kept in prime condition and will extend their useable life. This will reduce overall costs to you.
We can arrange for these checks to be carried out and a Gas Safety Record obtained prior to letting a property. Our Full Management service includes arranging for a record to be obtained each year. In all other circumstance, the responsibility will fall to you.
Failure to have the safety checks carried out and any relevant works done could result in criminal prosecution.
Does the same apply to electricity?
It is now mandatory for all sharers properties to obtain electrical certificates. Any portable appliances must be PAT tested. We are able to arrange this on your behalf.
What is an Energy Performance Certificate?
All properties are required by legislation to have an Energy Performance Certificate prior to tenants occupation. The certificate is valid for 10 years and this can be arranged by Portfolio Properties (Oxford) Ltd. The Energy Performance certificate provides a measure of the property’s energy efficiency and its impact on the environment and provides the tenants with estimated fuel costs. The most efficient homes - which should have the lowest fuel bills - are in band A.
Are smoke alarms required?
Smoke alarms have to be installed in all properties and we would strongly recommend that you install at least one alarm per floor of your property.
What am I responsible for repairing?
As a Landlord you have a legal obligation under the Landlord and Tenant Act 1985 to maintain the structure of the building, the space (central or other heating) and water heating, the sanitation and the supply of services (gas, electricity, water etc). In addition, should an item in the property require replacing or repairing through fair wear and tear then you would be expected within the terms of the Tenancy Agreement to pay for this. It is also advisable to leave some form of alternative heating in the property for emergency situations; one or two small convector heaters are advisable
Tenants
What type of Tenant do you look for?
As we have mentioned before all applicants are professionally vetted to ensure they have the financial ability to meet their rental commitments, providing you with as much information as possible when assessing an applicant’s suitability. But we look further than that, we spend time talking to applicants to ensure that not only are they right for you but your property is the right property for them. If the tenants and property are right then problems are minimised. In some circumstances we will ask the applicant for a UK based guarantor who will be vetted in the same way and will be required to sign an undertaking of responsibility.
Can I decide who moves in?
We never forget whose property it is! When we have found potential Tenants who appear suitable, we will discuss the matter with you and take your instructions. However, whilst we are happy to take your instructions with regard to restrictions on smokers, children, pets or any other specific requirements you have, we will not permit discrimination on grounds of race, colour, creed, etc.
Bear in mind the greater the restrictions; the fewer opportunities to let will occur.
What does the Tenant pay?
In addition to the rent the Tenant is expected to take on the responsibility of the Council tax, water, gas, electricity and telephone charges. If the property is a house in multiple occupation where rooms are let individually or you are a resident Landlord the rules are different, also please note the water may be paid by you where it is included in the service/maintenance charge or due to other exceptional circumstances. As part of our Full Management service, we will arrange for the relevant details to be notified to the utilities and the local Authority (BT will not make any changes on our say so and you must speak to them directly)
What if Tenants do not pay their rent?
Whilst we endeavour to ensure by using a professional referencing agency that Tenants are financially secure, there may be the odd occasion when a Tenant falls into arrears. We monitor our Client Accounting system carefully to check the payment of rents, so that if there is a problem it can be addressed quickly. Often a letter or telephone call will quickly resolve the problem – however, if the rent is persistently late or in severe arrears there is an effective course of redress through the Courts. Please note that should it be necessary to take legal action, the cost of doing so is borne by you the Landlord.
What do I do if Tenants will not leave?
In the rare event of the Tenants refusing to leave at the end of the tenancy then the matter will need to be settled through the Courts. With the introduction of the Accelerated Possession Procedures (APP) for certain circumstances the process need only take a matter of weeks. Please note our supplementary fees and charges apply. (Available in our Landlords packs)
How do I get my property back?
Our Tenancy Agreement will be for a fixed term period; this will normally be 6 or 12 months. Unless you choose our Letting only Service we will contact you approximately two months before the end of the tenancy to take your instructions as to whether you wish to continue with the existing let, remarket the property(if the tenants wish to leave), or regain possession of your property. If you want to end the tenancy, we will serve the Notices or write to the Tenant, depending on the type of Tenancy Agreement, specifying that they leave at the end of the term. At the end of the Tenancy we will check the property against the Inventory and Schedule of Condition and seek your instructions prior to settling the deposit.
Will the Tenants forward my mail?
No, we ask them to contact us if any mail arrives, but we would strongly recommend that you arrange for the Post Office to redirect your mail.
What NOW?
What services do you offer?
We are aware that some people want to leave everything to us, especially if they are overseas or leading busy lives where calls about a leaking tap or blocked drain would be a nuisance. Others, however, want to be actively involved in the business of renting their property. Our range of options include:
- Letting only Service (including, reference checking, drawing up agreements & informing utilities).
- Letting only & Processing Rent (as above plus rent processing)
- Full Management
- Empty care – a specific service for properties which are empty
- Supplementary Services - (See fees and charges available in our Landlords packs)
We will be happy to discuss the various options and costs with you.
Can I get a mortgage to buy a property to let?
There are many High Street building societies and banks who are now willing to provide a mortgage on property to be rented, subject to status and certain requirements. We are happy to discuss potential purchases with client and we are always happy to advise on location and rental income
What do I do now?
If you would like to discuss letting your property or would like a free, no obligation, market appraisal please call us as soon as possible.
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